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Management and Organizational Studies 1021A/B Study Guide - Psychographic, Middle Age, Viral Marketing

Management and Organizational Studies
Course Code
MOS 1021A/B
Meaghan Ross

of 6
Consumer Behaviour II
Psychological Influences
Psychology helps marketers understand why and how consumers behave as they do
Motivation – the energizing force that stimulates behaviour to satisfy a need
Marketers look at what people need, and how they can encourage people to need their
Arousing needs because needs are the focus of the marketing concept
One must satisfy a
lower need before
moving up in Maslow’s
Hierarchy of needs
Physiological needs – basic to survival, must be satisfied first and can only move up once
i.e. BK and Gatorade advertising products as vital to food and drink
Safety Needs – self-preservation and physical well-being
smoke detectors, alarms enhance personal safety
Social Needs – concerned with love and friendship, belonging, affiliation, association – advertises matching people with similar interests – belong together
Esteem Needs – need for achievement, status, prestige, self-respect
Esteem needs come before social in some cultures
i.e. Mercedes – associated with class/status
Self-Actualization Needs – sense of personal fulfillment
Marketers – what can you do to make people aware? Trip around the world = cultural
learning experience
Problems with Maslow’s Hierarchy – there is no way to measure where you are on the hierarchy
and it is not clear when one’s needs are met (how can a marketer know that someone’s safety
needs are met)… as well as cultural differences (Asians care about esteem needs more than
Personality – a person’s character traits that influence behavioural responses (assertiveness,
extraversion, compliance, dominance, aggression, etc.)
i.e. more compliant people prefer name brands, aggressive people use razors over
electric shave
Ideal Self-Concept – how people would want to recognize themselves
Actual Self-Concept – how people actually see themselves
i.e. self-grooming – target ones ideal self-concept
Perception – the process by which an individual selects, organizes, and interprets information to
create a meaningful picture of the world
How you interpret the information of sensation
People may perceive a larger difference between coke and pepsi than they can sense
Sensation – the immediate response of the sensory receptors in our eyes, ears, nose, mouth,
and skin to basic stimuli (colour, light, sound, etc.)
People have difficulty sensing (taste) the actual difference between coke and pepsi blind
Coke vs Pepsi – similar chemical composition, and blind taste test showed people don’t have
capable sensory ability to discriminate, but most have a preference of one over the other,
people have predetermined decision on one product before tasting it
Selective Perception – filter information so only some is understood, remembered or available
(I.e. Post purchase – reading only positive reviews of product
Selective Exposure – Pay attention to messages consistent with your attitudes/beliefs and
ignore inconsistent messages
i.e. smokers using it and ignoring ads portraying health risk
Selective Comprehension – interpret information so it is consistent with your beliefs/attitudes
i.e. SnowPup – interpreted as “puppy” – small snowblower, changed name to
snowmaster and sales increased
Selective Retention – remember only some information seen, read, or heard after exposure to it
i.e. Smoking ad – kids asking for a light, adults who are smoking preach the dangers
Perceived Risk – anxiety felt when a consumer cannot anticipate possible negative outcomes of
a purchase
can be risk of price or safety, marketers use techniques to reduce
oseal of approval – i.e. Chevy IIHS Safety pick ratings
oEndorsements – Crosby endorsing Reebok
oFree Trials – perfume samples so people know what they are buying
oPerception – glasses site that lets you virtually try them on so you can see it
oWarranties – money back guarantee, BMW 2 year labour warranty
Learning – behaviours that result from repeated experience or reasoning
Consumers learn which sources to use for information, which evaluative criteria to use,
how to make purchasing decisions
Behavioural learning – process of developing automatic responses to a type of situation built up
through repeated exposure to it
Drive: need which pushes us to action (I’m hungry)
Cue: stimulus/symbol that one perceive (saw little Caesars $6 pizza ad…)
Response: reaction to need/drive, action take to satisfy drive (purchase it)
Reinforcement: Reward (eat it)
oIf it is not a positive experience, negative reinforcement has occurred
Stimulus generalization occurs when a response to one cue is generalized to another
cue (seeing similar products/packaging)
oConsumers familiar with one product will transfer feelings over to similar from
same brand (i.e. Tylenol – Tylenol cold)
Stimulus Discrimination – one’s ability to perceive differences among similar products,
extent to which people can distinguish brands
oLuxury vehicles – set themselves apart
Cognitive Learning – making connections between two or more ideas or observing the
outcomes of others behaviours and adjusting your own
Observing ones behaviours, learning and making connections (SLAPCHOP)