MOS 3321 Midterm Exam Notes (Chapters 1 - 8)

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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B

Chapter 1: An Introduction to Consumer Behavior September-18-13 9:37 AM CONSUMPTION COMMUNITIES:Where members share views and product recommendations What is Consumer Behavior? CONSUMER BEHAVIOR:The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires Consumer Behavior is a Process - An ongoing process EXCHANGE: In which two or more organizations or people give and receive something of value - Emphasizes the entire consumption process, which includes the issues that influence the consumer before, during, and after apurchase Consumers' Impact on Marketing Strategy - Understanding consumer behavior - satisfy consumers' needs - Consumer response is the ultimate test of whether a marketing strategy will succeed Segmenting Consumers MARKETINGSEGMENTATION: Identifies groups of consumers who are similar to one another in one or more ways and then devises marketing strategies that appeal to one or more groups DEMOGRAPHICS:Statistics that measure observable aspects of a population PSYCHOGRAPHICS: Differences in consumers' personalities, attitudes, values, and lifestyles Age - Share a set of values and common cultural experiences that they carry throughout life Gender - Differentiating by gender starts at a very early age Family Structure and Life Stage - Family structure and marital status has a big effect on a consumer's spending priorities Social Class and Income - Which groups have the greatest buying power and market potential Ethnicity - Labelling of some products Geography - Climate changes drastically from region to region Relationship Marketing: Building Bonds with Consumers RELATIONSHIP MARKETING:Involves making an effort to interact with consumers on a regular basis giving them reasons to maintain a bond with the company over time Marketing and Culture POPULAR CULTURE: Consisting of the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market,is both a product of and an inspiration for marketers CONSUMER-GENERATEDCONTENT: In which consumers themselves voice here opinions about products, brands, and companies The Meaning of Consumption - Fundamental premises: people often buy products not for what they do but for what they mean The Global Consumer - Global consumer culture, in which people around the world are united by their common devotion to brand-name consumer goods, movie stars, and celebrities U-COMMERCE:The use of ubiquitous networks that enable real-time connections in business and consumption behavior RFID TAG: Containing a computer chip and a tiny antenna that lets the chip communicate with a network - Rise of global marketing which increases the pressure to understand how consumers in other countries are the same as or different from the customers in the host country Virtual Consumption - Breaking down many of the barriers caused by time and location B2C COMMERCE: Businesses selling to consumers C2C COMMERCE: Virtual consumption has greatly facilitated consumer-to-consumer activity DIGITAL NATIVE: Originated to describe students that have grown up "wired" in a highly networked, always-on world where digital technology has always existed HORIZONTAL REVOLUTION: Characterized in part by the prevalence of social media- information flows across people SOCIAL MEDIA: The online means of communication, conveyance, collaboration, and cultivation among interconnected and independent networksof people, communities, and organizations enhanced by technological capabilities and mobility SYNCHRONOUS INTERACTIONS: Interactions that occur in real time ASYNCHRONOUS INTERACTIONS: Interactions that don't require all participants to respond immediately CULTURE OF PARTICIPATION: A belief in democracy; the ability to freely interact, allows users to share content, and the power to build on the contentof others from one's own unique point of view Marketing Ethics and Public Policy Business Ethics BUSINESSETHICS: Rules of conduct that guide actions in the marketplace- the standards against which most people in a marketplace judge what is right, wrong, good, or bad Prescribing Ethical Standards of Conduct - Ethical behavior is a good business in the long run, since consumer trust and satisfaction translates into years of loyalty Do Marketers Create Artificial Needs? - Need is a basic biological motive, while awant represents one way society has taught us to satisfy that need Exam Notes - Midterm Page 1 - Need is a basic biological motive, while awant represents one way society has taught us to satisfy that need - A basic objective of advertising is to create awareness that these needs exist, rather than to create the needs Are Advertising and Marketing Necessary? - Products are designed to meet existing needs, and advertising merely helps to communicate the products' availability - Consumers are willing to pay for advertising because the information it provides reduces search time Welcome to Consumer Space - People still "need" companies - but in new ways and on their own terms Public Policy and Consumerism - The main thrust of regulation is to protect the consumer from unfair business practices and to protect the broad interests ofsociety Consumer Activism and Its Impact on Marketing Adbusters is a not-for-profit organization that advocates for "the new social activist movement of the information age"- discourage rampant commercialism - CULTURE JAMMING: Aims to disrupt efforts by the corporate world to dominate our cultural landscape CORPORATE SOCIAL RESPONSIBILITY(CSR): When firms voluntarily choose to protect or enhance their positive social and environmental impacts CORPORATE GIVING:Marketers who donate their own money to good causes CAUSE-RELATEDMARKETING:Marketers promise donations to charity as purchase incentives GREEN MARKETING:Approach in which they offer products in ways that are less harmful to the environment SOCIAL MARKETING:Using marketing techniques to encourage positive behaviors TRANSFORMATIVECONSUMER RESEARCH (TCR): Consumer researchers who study and rectify that they see as pressing social problems in the marketplace- it promotes research projects that include the goal of helping people or bringing about social change The Dark Side of Consumer Behavior - Exposure to unattainable media ideals of beauty and success can create dissatisfaction with the self Addictive Consumption CONSUMER ADDICTION: A physiological or psychological dependency on products or services Compulsive Consumption COMPULSIVECONSUMPTION: Refers to repetitive shopping, often excessive, done as an antidote to tension, anxiety, depression, or boredom - Enduring behavior that centres on the process of buying - Negative or destructive consumer behavior can be characterized by the following three common elements: 1) The behavior is not engaged in by choice 2) The gratification derived from the behavior is short-lived 3) The person experiences strong feelings of regret or guilt afterwards Illegal Activities Consumer Theft SHRINKAGE: The industry term for inventory and cash losses from shoplifting and employee theft- the cost is passed on to consumers in the form of higher prices - About three-quarters of those caught are middle- or high-income people who shoplift for the thrill of it or as a substitute for affection Anticonsumption ANTICONSUMPTION: Involves rebelling against the idea of consumption itself How Do We Find Out About Consumers? The Role of Consumer Research PRIMARYRESEARCH: Data is collected by the researcher specifically for the research question at hand SECONDARY RESEARCH: When the marketer finds the information needed by going to a pre-existing source of information collected for another purpose Primary Research Survey Research SURVEY: A method of data collection in which the respondents self-report answers to a set of questions posed by the researcher - Allows researchers to collect data from a lot of people within a relatively short period of time, but may not allow consumersto provide as rich and detailed responses as other research methods Focus Groups FOCUS GROUPS: Involve small group sessions with approximately six to twelve consumer participants, a moderator leads a group discussion involving a product, concept, or marketing message (often used when a new idea of product is being tested) - Social influence can play a role, dampening the expression of consumers' true individual attitudes Interviews INTERVIEWS: One-on-one interaction with an interviewer and respondent - Research process can take much longer Observational Research OBSERVATIONAL RESEARCH: Consumer behaviors are directly observed - Consumers may not always express the truth ETHNOGRAPHIC RESEARCH: A specific type of observation where researchers observe and record how consumers behave in real-world contexts Qualitative Research STORYTELLING: Consumers are asked to tell researchers about their experience with the product ROLE-PLAYING: Consumers are asked to put themselves in a particular role and act out how they would respond to a particular marketing stimulus - Consumers can be asked to provide photos or picture in ways that represent their consumption experiences or to keep adiary PROJECTIVE TECHNIQUES: Involve the presentation of an ambiguous, unstructured object, activity, or person that a respondent is asked to interpretor explain (choose words or sentence completion) Experimental Research EXPERIMENTS:Used when the researcher wants to make cause-and-effect claims RANDOM ASSIGNMENT: The researcher puts participants into groups or experimental conditions- each person has an equal chance of ending up in any of the experimental conditions - The researcher then holds everything constant across the different experimental conditions- the only difference is the key manipulation of the causal factor the researcher wants to examine Exam Notes - Midterm Page 2 the researcher wants to examine INDEPENDENT VARIABLE: The variable the researcher manipulates DEPENDENT VARIABLE: The variable the researcher measures Exam Notes - Midterm Page 3 Chapter 2: Perception October-16-13 11:46 AM SENSATION: The immediate response of our sensory reception to such basic stimuli PERCEPTION: The process by which these sensations are selected, organized, and interpreted Sensory Systems - The meaning of the stimulus is interpreted by the individual, who is influenced by his or her unique biases, needs, and experiences An Overview of the Perceptual Process - Three stages - exposure, attention, and interpretation - make up the process of perception Sensory Marketing: Harnessing Perception for a Competitive Advantage SENSORY MARKETING: Companies pay extra attention to the impact of sensation on our product experiences Sight How Perception Can Be "Colored" - Colors influence our emotions directly (blue is the consumers' favorite color) - Rich in symbolic value and cultural meanings - Perceptions of a color depend on both its physical wavelength and how the mind responds to that stimulus TRADE DRESS: When a color combination comes to be associated so strongly with a particular corporation - Trade-dress protection is granted only when consumers might be confused about what they are buying because of similar coloration of a competitor's packages How Your Eyes Make You Eat More - When pouring or eating foods from larger boxes, the size of the box implicitly suggests that it's appropriate or "acceptable"to eat more - When it comes to how much we eat and drink, our eyes often have more to say than our stomachs Smell - Odours can stir emotions and evoke memories - Process fragrance cues in the limbic system, the most primitive part of the brain and the place where we experience immediate emotions - The sense of smell can also lead to different behavioral reactions to stimuli Hearing - Many aspects of sound may affect people's feelings and behaviors Touch - Tactile stimulation is an important sensory channel - Haptic (touch) senses appear to moderate the relationship between product experience and judgement confidence, confirming thecommon-sense notion that we're more sure about what we perceive when we can touch it KANSEI ENGINEERING: A Japanese philosophy that translates customers' feelings into design elements Taste - Specialized companies called "flavor houses" keep busy trying to develop new tastes to please the changing palates of consumers - Other work finds that advertisements that refer to more than one of the senses lead to the more positive taste perceptions Exposure EXPOSURE: The process by which the consumer comes into contact with the stimulus and has the potential to notice it Sensory Thresholds PSYCHOPHYSICS: The science that focuses on how the physical environment is integrated into our personal, subjective world The Absolute Threshold ABSOLUTE THRESHOLD: The minimum amount of stimulation that can be detected on a sensory channel The Differential Threshold DIFFERENTIAL THRESHOLD: Refers to the ability of a sensory system to detect changes in a stimulus or differences between two stimuli JUST NOTICEABLE DIFFERENCE (JND): The minimum change in a stimulus that can be detected WEBER'S LAW: The stronger the initial stimulus, the greater the change must be for it to be noticed where - The main point of Weber's law is that it is the ratios that are important in describing the least perceptible differences insensory discrimination - Manufacturers and brand managers determine the relevant just noticeable different for two reasons; (1) so that reductions arenot readily discernible to the Exam Notes - Midterm Page 4 - Manufacturers and brand managers determine the relevant just noticeable different for two reasons; (1) so that reductions arenot readily discernible to the public, and (2) so that product improvements are perceived by the public Subliminal Perception SUBLIMINAL PERCEPTION: The perception of stimuli below the level of consumer consciousness - If you can see it or here it, it is not subliminal EMBEDS: Tiny figures that are inserted into magazine advertising by using high-speed photography or airbrushing Attention ATTENTION: The extent to which the brain's processing activity is devoted to a particular stimulus - Sensory overload; they are exposed to far more information than they are able or willing to process PERCEPTUAL SELECTIVITY: People attend to only a small portion of the stimuli to which they are exposed Personal Selection Factors - Perceptual filters based on consumers' past experiences influences what they decide to process - Perceptual vigilance is a factor in selective exposure where consumers are aware of stimuli that relate to their current needs - Perceptual defence is where people see what they want to see, and don’t see what they don't want to see ADAPTATION: The degree to which consumers continue to notice a stimulus over time - consumers no longer pay attention to it because it becomes so familiar - Several factors can lead to adaptation: ▪ Intensity: Consumers become habituated to less-intense stimuli ▪ Duration: Stimuli that require relatively lengthy exposure to be processed tend to be habituated to ▪ Discrimination: Simple stimuli tend to be habituated to because they do not require attention to detail ▪ Exposure: People tend to habituate to frequently encountered stimuli ▪ Relevance: People tend to habituate to stimuli that are irrelevant or unimportant Stimulus Selection Factors CONTRAST: Stimuli that differ from others around them - This can be created in several ways: ▪ Size ▪ Color ▪ Position ▪ Novelty: Communications that use novel stimuli or appear in unexpected places Interpretation INTERPRETATION: The meanings that people assign to sensory stimuli SCHEMA: A set of beliefs, to which the stimulus is assigned Stimulus Organization - People do not perceive a single stimulus in isolation; they tend to view it in terms of relationships with other events, sensations, or images - Our brains tend to relate incoming sensations to others already in memory on the basis of some fundamental organization principles GESTALT PSYCHOLOGY: A school of thought maintaining that people derive meaning from the totality of a set of stimuli rather than from any individual stimulus - Several principles relating to the way stimuli are organized: PRINCIPLE OF CLOSURE: Consumers tend to perceive an incomplete picture as complete PRINCIPLE OF SIMILARITY: Consumers tend to group together objects that share similar physical characteristics; group like items into sets to form anintegrated whole FIGURE-GROUND PRINCIPLE: Part of the stimulus will dominate (the figure) while other parts recede into the background The Eye of the Beholder: Interpretation Biases - Determine the meaning based on our past experiences, expectations, and needs Perceptual Positioning - A product stimulus is often interpreted in light of what we already know about a product category and the characteristics ofexisting brands - Our evaluation of a product is typically the result of what it means rather than what it does- this meaning constitutes the product'smarket position POSITIONING STRATEGY: The way the marketer wants the brand to be viewed in the eyes of the consumer, and is a fundamental part of a company's marketing efforts as it uses elements of the marketing mix (product design, price, distribution, and marketing communications) to influence the consumer's interpretation of the brand's meaning - One issue for marketers is how to reposition their brand REPOSITION: The way that updates the brand's image for an evolving market Positioning Dimensions - Many dimensions can be used to establish a brand's position in the marketplace: ▪ Price leadership ▪ Attributes ▪ Product class ▪ Occasions ▪ Users ▪ Design Exam Notes - Midterm Page 5 Chapter 3: Learning and Memory October-17-13 6:56 PM LEARNING: A relatively permanent change in behavior that is caused by experience - We can learn vicariously by observing events that affect others - Casual, unintentional acquisition of knowledge is known as incidental learning Behavioral Learning Theories BEHAVIORAL LEARNING THEORIES: Assume that learning takes place as a result of responses to external events - Two major approaches to behavioral learning: classical conditioning and instrumental conditioning Classical Conditioning CLASSICAL CONDITIONING: Occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time this second stimulus causes a similar response because it is associated with the first stimulus (Ivan Pavlov) UNCONDITIONED STIMULUS (UCS): The stimulus naturally capable of causing the response CONDITIONED STIMULUS (CS): The stimulus that did not initially cause the response but learned through association CONDITIONED RESPONSE (CR): The response caused by the conditioned stimulus Associative Learning - Classical conditioning is a form associative learning ASSOCIATIVE LEARNING: Consumers learn association between stimuli Repetition - Repeated exposures increase the strength of stimulus-response associations and prevent decay of these associations in memory - The most effective repetition strategy seems to be a combination of spaced exposures that alternate in terms of media that are more and less involving EXTINCTION: When the effects of prior conditioning are reduced and finally disappear Stimulus Generalization STIMULUS GENERALIZATION: The tendency of stimuli similar to a CS to evoke similar conditioned responses - The "piggybacking" strategy where consumers believe that products with similar packages are also similar in quality and performance Stimulus Discrimination STIMULUS DISCRIMINATION: Occurs when a stimulus similar to a CS is not followed by a UCS - Reactions are weakened and will soon disappear - Learning process involves learning to respond to some stimuli but not to other similar stimuli MASKED BRANDING: Deliberately hides a product's true origin Marketing Applications of Conditioning - Behavioral learning principles - Crucial to many marketing strategies that rely on the creation and perpetuation of positive brand equity BRAND EQUITY: When a brand has a strong positive associations in a consumer's memory and commands a lot of loyalty as a result Repetition - The first exposure creates awareness of the product, the second exposure demonstrates its relevance to the consumer, and the third exposure serves as a reminder of the product's benefits ADVERTISING WEAROUT: Consumers become so used to hearing or seeing a marketing stimulus that they no longer pay attention to it - This can be alleviated by varying the way in which the basic message is presented Conditioning Product Associations - Advertisements often pair a product with a positive stimulus to create a desirable association - The unconditioned stimulus should be presented prior to the conditioned stimulus - The technique of backward conditioning is generally not effective Applications of Stimulus Generalization - The process of stimulus generalization attempts to capitalize on consumers' positive associations with an existing brand or company name - Strategies based on stimulus generalization: ▪ Family branding, in which a variety of products capitalize on the reputation of a company name ▪ Product-line extensions, in which related products are added to an established brand ▪ Licensing, in which well-known names are "rented" by others ▪ Look-alike packaging, in which distinctive packaging designs create strong associations with a particular brand. This link is often exploited by makers of generic or private-label brands that wish to communicate a quality of image by putting their products in similar packages - "Consumer confusion" is how likely it is that one company's logo, product design, or package is similar enough to another that the typical shopper would mistake one for the other Instrumental Conditioning INSTRUMENTAL CONDITIONING (operant conditioning): Occurs as the individual learns to perform behaviors that produce positive outcomes and to avoid behaviors that yield negative outcomes (B. F. Skinner) - The desired behavior may be learned over a period of time, as intermediate actions are rewarded in a process called shaping SHAPING: Occurs when consumers are rewarded for successive steps taken towards the desired response - Instrumental learning occurs in one of three ways 1) POSITIVE REINFORCEMENT: In the form of a reward, the response is strengthened and appropriate behavior is learned 2) NEGATIVE REINFORCEMENT: Appropriate behavior is learned by removing something negative in a way that increases a desired response 3) PUNISHMENT: Used to decrease an undesired behavior by having it followed by an unpleasant event Four Types of Learning Schedules - An important factor in operant conditioning is the set of rules by which appropriate reinforcements are given for a behavior- reinforcement schedule - Two general ways in which consumers are reinforced for desired behaviors include: ratio schedules and interval schedules ▪ Ratio schedules reinforce the learner based on the number of responses that have been completed ▪ Interval schedules reinforce the learner after a certain amount of time passes since the appropriate response - Several schedules are possible: 1) Fixed-ratio reinforcement: Reinforcement occurs only after a fixed number of responses 2) Variable-ratio reinforcement: The behavior of a person is reinforced after a certain number of responses, but he or she does not know how many responses are required - tend to respond at very high and steady rates, and this behavior is very difficult to extinguish Exam Notes - Midterm Page 6 are required - tend to respond at very high and steady rates, and this behavior is very difficult to extinguish 3) Fixed-interval reinforcement: After a specified time period has passed, the first response that is made brings the reward - people tend to respond slowly right after being reinforced, but their responses speed up as the time for the next reinforcement looms 4) Variable-interval reinforcement: The time that must pass before reinforcement is delivered varies around some average - responses must be performed at a consistent rate Applications of Instrumental Conditioning Principles Reinforcement of Consumption - Marketers use many ways to reinforce the behavior of consumers Frequency Marketing FREQUENCY MARKETING: Reinforces the behavior of regular purchasers by giving them prizes with values that increase along with the amount purchased Cognitive Learning Theory COGNITIVE LEARNING THEORY: Stresses the importance of internal mental processes - this perspective views people as problem solvers who actively use information from the world around them to master their environment Is Learning Conscious or Not? - A lot of controversy - Our reactions are activated by a trigger feature - some stimulus that cues us toward a particular pattern Observational Learning OBSERVATIONAL LEARNING: Occurs when people watch the actions of others and note the reinforcements they receive for their behaviors; learning occurs as a result of vicarious rather than direct experience - Cognitive learning theories - Process of imitating the behavior of others is called modelling - For observational learning in the form of modelling to occur, four conditions must be met: Applications of Cognitive Learning Principles - People do not have to be reinforced directly for their actions, marketers do not necessarily have to reward or punish them for purchase behaviors, instead, they can show what happens to models - The degree to which a model will be emulated depends on his or her social attractiveness The Role of Memory in Learning MEMORY: Involves a process of acquiring information and storing it over time so that it will be available when needed The Memory Process - During the consumer decision-making process, this internal memory is combined with external memory (marketing stimuli) - Post-experience advertising can make a remembered product experience more favorable than it actually was Encoding of Information for Later Retrieval - The way information is encoded helps to determine how it will be represented in memory - Encoding involves linking new information to existing knowledge in order to make the new information more meaningful Types of Meaning - A consumer may process a stimulus simply in terms of its sensory meaning, such as its color or shape - Semantic meaning refers to symbolic associations Personal Relevance - Episodic memories are memories for events that are personally relevant - Memories that are quite vivid and unique, and are sometimes called flashbulb memories - One method of conveying product information is through a narrative or a story Memory Systems - According to the information-processing perspective, there are three distinct memory systems: sensory memory, short-term memory (STM), and long-term memory (LTM) Relationships among Memory Systems Exam Notes - Midterm Page 7 Relationships among Memory Systems - Short-term memory can be regarded as working memory CHUNKING: The process where information is stored by combining small pieces into larger ones Storing Information in Memory - Interdependence of the systems ACTIVATION MODELS OF MEMORY: Depending on the nature of the processing task, different levels of processing occur that activate some aspects of memory rather than others - The more effort it takes to process information, the more likely it is that information will be placed in long-term memory Associative Network Models - Associative network models propose that an incoming piece of information is stored in an associative network containing many bits of related information organized according to some set of relationships KNOWLEDGE STRUCTURES: Storage units that can be thought of as complex spider webs filled with pieces of data - Information is placed into nodes, which are connected by associative links within these structures - Hierarchical processing model, a message is processed in a bottom-up fashion; processing begins at a very basic level and is subject to increasingly complex processing operations EVOKED SET: A group of relevant brands that a prospective consumer is favorably familiar with when they are thinking about making a purchase Spreading Activation - As one node is activated, other nodes associated with it also begin to be triggered SPREADING ACTIVATION: Process that allows consumers to shift back and forth between levels of meaning - The way a piece of information is stored in memory depends on the type of meaning assigned to it - Information can be stored in several ways: 1) Brand-specific: in terms of claims made for the brand 2) Ad-specific: in terms of the medium or content on the ad itself 3) Brand identification: in terms of the brand name 4) Product category: in terms of how the product works, where it should be used, or experiences with the product 5) Evaluative reactions: in terms of whether "that looks fun" Levels of Knowledge - Knowledge is coded at different levels of abstraction and complexity - Meaning concepts are individual nodes - these may be combined into a larger unit, called a proposition - A proposition links two nodes together to form a more complex meaning - Propositions are, in turn, integrated to produce a complex unit known as a schema SCHEMA: A cognitive framework that is developed through experience - One type of schema that is relevant to consumer behavior is a script SCRIPT: A sequence of procedures that is expected by an individual Analogical Learning - One way consumers can learn about new products and features is through analogical learning ANALOGICAL LEARNING: Highlighting similarities between the new product and an existing product BASE: The existing product and the original source of knowledge TARGET: The new product and what the existing knowledge will be transferred to - Analogical learning can take one of two forms 1) ATTRIBUTES: Identifiable features or properties of the product 2) RELATIONS: How the product relates to a desired outcome Retrieving Information for Purchase Decisions - Retrieval is the process of accessing information from long-term memory Factors Influencing Retrieval - Physiological - Situational - Information about a pioneering brand is more easily retrieved - Viewing environment of a marketing message Familiarity and Recall - Prior familiarity with an item enhances its recall - Some evidence indicated that extreme familiarity can result in inferior learning and recall Salience and Recall SALIENCE: A brand's prominence or level of activation in memory - Stimuli that stand out in contrast to their environment are more likely to command attention, which in turn increases the likelihood that they will be recalled VON RESTORFF EFFECT: Where almost any technique that increases the novelty of a stimulus also improves recall - Mystery ads, in which the brand it not identified until the end of the ad - We recall mixed emotions (those with positive and negative components) differently than unipolar emotions UNIPOLAR EMOTIONS: Emotions that are either wholly positive or wholly negative - Unipolar emotions become even more polarized over time, so that we recall good things as even better than they were and bad things as even worse Pictorial Versus Verbal Cues - Information presented in picture form is more likely to be recognized later Factors Influencing Forgetting - In a process of decay, the structural changes in the brain produced by learning simply go away INTERFERENCE: As additional information is learned, it displaces earlier information - Stimulus-response associations will be forgotten if consumers subsequently learn new responses to the same or similar stimuli in a process known as retroactive interference - Prior learning can interfere with new learning , a process called proactive interference Exam Notes - Midterm Page 8 - Prior learning can interfere with new learning , a process called proactive interference - Recall may also be inhibited if the brand name comprises frequently used words Products as Memory Markers - Valued possessions can evoke thoughts about people and prior events - Autobiographical memories - ads that succeed in getting us to think about our own past also appear to get us to like these ads more The Marketing Power of Nostalgia NOSTALGIA: A bittersweet emotion, in which the past is viewed with both sadness and longing - Spontaneous recovery - this re-established connection may explain consumers' powerful nostalgic reactions RETRO BRAND: An updated version of a brand from a prior historical period Memory and Aesthetic Preferences - Nostalgia index indicates that people's tastes in such products as movies and clothing are influenced by what was popular during certain critical periods of their youth Measuring Memory for Marketing Stimuli Recognition Versus Recall - Two basic measures of impact are recognition and recall - Recognition scores are almost always better than recall scored, because recognition is a simpler process and more retrieval cues are available to the consumer - more reliable and do not decay over time - Recall tends to be more important in situations in which consumers do not have product data at their disposal, and so they must rely on memory to generate this information - Recognition is more likely to be an important factor in a store where consumers are confronted with thousands of product options and information Problems with Memory Measures Response Biases RESPONSE BIASES: Results are not necessarily caused by what is being measured, but rather to something else about the instrument or the respondent Memory Lapses - People are also prone to unintentionally forgetting information - omitting (the leaving out of facts), averaging (the tendency to "normalize" things and not report extreme cases), and telescoping (the inaccurate recall of time) Memory for Facts Versus Feelings - Measures do not adequately tap the impact of "feeling" ads, where the objective is to arouse strong emotions - It is not clear that recall translates into preference Exam Notes - Midterm Page 9 Chapter 4: Motivation and Affect October-17-13 10:08 PM The Motivation Process MOTIVATION: The processes that cause people to behave as they do - This need may be utilitarian (a desire to achieve some functional or practical benefit), or it may be hedonic (an experientia l need involving emotional responses or fantasies) GOAL: The desired end state for the consumer DRIVE: The degree of arousal causing the consumer to feel urgency to reduce tension Motivational Strength - Two basic theoretical categories that account for motivational strength are: drive theories and expectancy theories Drive Theory - Drive theory focuses on biological needs that produce unpleasant states of arousal HOMEOSTASIS: Goal-oriented behavior that attempts to reduce or eliminate this unpleasant state and return to a balanced one - Those behaviors that are successful in reducing the drive by eliminating the underlying need are strengthened and tend to be repeated - Drive Theory runs into difficulties when it tries to explain some facets of human behavior that run counter to its prediction s; people often do things that increase a drive state rather than decrease it Expectancy Theory EXPECTANCY THEORY: Suggests that behavior is largely pulled by expectations of achieving desirable outcomes (positive incentives) rather than pushed from within Motivational Direction - The objective of marketers is to convince consumers that the alternative they offer provides the best chance to attain the go al Needs Versus Wants - Individual's unique history and learning experiences and his or her cultural environment WANT: The particular form of consumption used to satisfy a need Types of Needs - People are born with a need for certain elements necessary to maintain life, such as food, water, air, and shelter, called biogenic needs - Psychogenic needs are acquired in the process of becoming a member of a culture Motivational Conflicts - A goal has valence, which means that it can be positive or negative - A positively valued goal is one toward which consumers direct their behavior; they are motivated to approach the goal and will seek out - Sometimes consumers are motivated to avoid a negative outcome - Three general types of conflict can occur; approach-approach, approach-avoidance, and avoidance-avoidance Approach-Approach Conflict THEORY OF COGNITIVE DISSONANCE: Based on the premise that people have a need for consistency in their lives and that a state of tension is created when beliefs or behaviors conflict with one another - Resolved through a process of cognitive dissonance reduction in which people are motivated to reduce this inconsistency (or d issonance) and thus eliminate unpleasant tension Approach-Avoidance Conflict - Many of the products and services we desire have negative consequences attached to them as well as positive consequences - we desire a goal but wish to avoid it at the same time Avoidance-Avoidance Conflict - Face a choice between two undesirable alternatives Classifying Consumer Needs - Psychologists have tried to define a universal inventory of needs that could be traced systematically to explain virtually al l behavior - Thematic Apperception Test (TAT); write answers to four directing questions Specific Needs and Buying Behavior - Other motivationalapproaches have focused on specific needs and their ramifications for behavior - Need for achievement strongly values personal accomplishment - Important needs that are relevant to consumer behavior ▪ Need for affiliation ▪ Need for power ▪ Need for uniqueness Maslow's Hierarchy of Needs - Psychologist Abraham Maslow - Formulated a hierarchy of biogenic and psychogenic needs in which levels of motives are specified - A certain level must be attained before the next, higher one is activated Levels of Needs in the Maslow Hierarchy Exam Notes - Midterm Page 10 - Most people spend most of their lives trying to fill their ego needs and never move on to the fifth level of self -actualization - The theory says, in effect, that satisfaction does not motivate behavior; dissatisfaction does - It is important to note that lower needs are never totally satisfied but are ongoing - Particular to Westernculture Motivation and Goal Fulfillment - More likely to achieve such goals when they set goals that are SMART (Specific, Measurable, Attainable, Realistic, and Time -bound) - Consumers who subjectively feel like they are closer to attaining a goal such as weight loss are ironically then more likely to change course and pursue an alternative goal such as enjoyment Consumer Involvement INVOLVEMENT: A person's perceived relevance of the object based on their inherent needs, values, and interests - Involvement can be viewed as the motivation to process information Levels of Involvement: From Inertia to Passion - It can range from simple processing, in which only the basic features of a message are considered, all the way to elaboration, in which the incoming information is linked to pre-existing knowledge systems - Consumption at the low end of involvement is characterized by inertia INERTIA: Decisions are made out of habit because the consumer lacks the motivation to consider alternatives - At the high end of involvement we can expect to find the type of passionate intensity reserved for people and objects that ca rry great meaning to the individual FLOW STATE: When consumers are truly involved with a product - Flow is an optimal experience characterized by the following ▪ A sense of playfulness ▪ A feeling of being in control ▪ Concentration and highly focused attention ▪ Mental enjoyment of the activity for its own sake ▪ A distorted sense of time ▪ A match between the challenge at hand and one's skills - There may be a type of involvement The Many Faces of Involvement - Three broad types of involvement - that relate to the product, to the message, and to the situation Product Involvement - Consumer's level of interest in a particular product MASS CUSTOMIZATION: The customization and personalization of products and services for individual customers at a mass production price Message-Response Involvement - Television is considered a low-involvement medium - Print media demand high involvement INTERACTIVE MOBILE MARKETING: In which consumers participate in real-time promotional campaigns via their cell phones Purchase Situation Involvement - Refers to differences that may occur when buying the same object for all different contexts Segmenting By Involvement Levels - A measurement approach that allows consumer researchers to capture the diversity of the involvement construct, and it also al lows for involvement to be used as a basis for market segmentation Strategies to Increase Involvement - The marketer can enhance the consumer's motivation to process relevant information fairly easily by using one or more of the following techniques: ▪ Appeal to the consumers' hedonic needs ▪ Use novel stimuli ▪ Use prominent stimuli ▪ Include celebrity endorsers ▪ Build a bond with consumers - Consumer-generated content - this practice creates a high degree of message-response involvement (also called advertising involvement) Affect Types of Affective Responses Exam Notes - Midterm Page 11 Types of Affective Responses AFFECT: The experience of emotionally-laden states, which can range from evaluations, to moods, to full-blown emotions EVALUATIONS: Involve valenced (i.e., positive or negative) reactions to events and objects, that are not accompanied by high levels of arousal MOODS: Involve temporary positive or negative affective states accompanied by moderate levels of arousal EMOTIONS: In contrast to moods, emotions tend to be more intense and are often related to a specific triggering event NEGATIVE STATE RELIEF: Helping others as a means of resolving one's own negative moods MOOD CONGRUENCY: The notion that our judgements are often consistent with our existing mood states - Moods are most likely to be influential when they are considered relevant to the particular purchase decision How Social Media Taps Into Our Emotions SENTIMENT ANALYSIS (opinion mining): Process that scours the social media universe to collect and analyze the words people use when they describe a specific product or company - When people feel a particular way, they are likely to choose certain words that tend to relate to the emotion WORD-PHRASE DICTIONARY: A collection of words gathered by the researcher used to code the data Discrete Emotions - Examination of specific emotional reactions during consumption episodes can provide additional insight Happiness HAPPINESS: A mental state of well-being characterized by positive emotions - How we spend our money can influence happiness Envy ENVY: A negative emotion associated with the desire to reduce the gap between oneself and someone who is superior on some dimension - Two distinct types can emerge: ▪ Benign envy occurs when the individual believes that the superior other deserves his or her status ▪ Malicious envy occurs when the consumer believes that the superior other does not deserve his of her status Guilt GUILT: An individual's unpleasant emotional state associated with possible objections to his or her actions, inaction, circumstances, or intentions - Subtler forms of guilt induction were more effective then explicit guilt appeals Embarrassment EMBARRASSMENT: A social emotion driven by a concern for what others are thinking about us Exam Notes - Midterm Page 12 Chapter 5: The Self October-17-13 11:43 PM Does the Self Exist? - The emphasis on the unique nature of the self is much greater in Western societies Self-Concept SELF-CONCEPT: The beliefs a person holds about his or her own attributes and how he or she evaluated these qualities - Stereotype threat refers to the anxiety the consumers feel when they fear they might act in a way that confirms the group stereotype Self-Esteem - Self-esteem refers to the positivity of your attitude toward yourself - Exposure to ads can trigger a process of social comparison, wherein the person tries to evaluate his or her self by comparing it with other people's selves and those of media images Real and Ideal Selves IDEAL SELF: A person's conception of how they would like to be ACTUAL SELF: Our more realistic appraisal of the qualities we do and don't have IMPRESSION MANAGEMENT: Where we work hard to "manage" what others think of us Multiple Selves - We have as many selves as we have different social roles - The self might be thought of as having different components or role identities, with only some of these being active at any given time Virtual Identity VIRTUAL IDENTITIES: Fictional depictions come to life as real-time, interactive virtual worlds function in cyberspace COMPUTER-MEDIATED ENVIRONMENTS (CMEs): Sites where people assume visual identities, or avatars AVATARS: Identities that range from realistic versions of themselves to tricked-out versions with exaggerated physical characteristics Symbolic Interactionism SYMBOLIC INT
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