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Chapter 2

MKT 3411 Chapter 2: Chapter 2 Textbook Notes (Andrew Kuo 2017)

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MKT 3411

MKT 3411 Chapter 2 Textbook Notes Chapter 2 Textbook Notes: Perception • Objective 1 o Perception is a three stage process that translates raw stimuli into meaning • Sensory Systems o We live in a world of overflowing sensations ▪ Each of us copes with the bombardment of sensations as we pay attention to some stimuli and tune out others • The messages we do choose to pay attention to often wind up affecting us differently from what the sponsors intended; we each put our personal “spin” on things as we assign meanings consistent with our own unique experiences, biases, and desires o Sensation refers to the immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers, skin) to basic stimuli such as light, color, sound, odor and texture o Perception is the process by which people select, organize, and interpret these sensations ▪ The study of perception then focuses on what we add to these raw sensations in order to give them meaning o Like computers, we undergo stages of information processing in which we input and store stimuli ▪ Unlike computers, though, we do not passively process whatever information happens to be present ▪ In the first place, we notice only a very small number of the stimuli in our environment, simply because there are so many different ones out there vying four our attention ▪ Of those we do notice, we attend to an even smaller number- and we might not process the stimuli that do enter consciousness objectively ▪ Each individual interprets the meaning of a stimulus in a manner consistent with his or her own unique biases, needs, and experiences o Three stages of exposure, attention, and interpretation make up the process of perception ▪ Sensory Stimuli • Sights, Sounds, Smells, Taste, Textures ▪ Sensory Receptors • Eyes, Ears, Nose, Mouth, Skin ▪ ExposureAttentionInterpretation o Our brains receive external stimuli, or sensory inputs, on a number of channels ▪ The inputs our five senses detect are the raw data that begin the perceptual process ▪ Sensory data emanating from the external environment (e.g., hearing a tune on the radio) can generate internal sensory experiences; a song might trigger a young man’s memory of his first dance and bring to mind the smell of his date’s perfume or the feel of her hair on his cheek o Marketers messages are more effective when they speak to us via multiple sensory channels ▪ For example, in a recent study, participants who read ad copy for potato chips would taste better than did those who just read copy that focused on taste alone o The unique sensory quality of a product helps it to stand out from the competition, especially if the brand creates a unique association with the sensation ▪ The Owens Corning Fiberglass Corp was the first company to trademark a color when it used bright pink for its insulation material; it adopted the Pink Panther as its spokesperson character ▪ Harley Davidson actually tried to trademark the distinctive sound a “hog” makes when it revs up ▪ These responses are an important part of hedonic consumption: multisensory, fantasy, and emotional aspects of consumers’ interactions with products • Objective 2 o The design of a product is now a key driver of its success or failure • Hedonic Consumption and the Design Economy o In recent years, the sensory experiences we receive from products and services play an even bigger role when we choose among competing options ▪ As manufacturing costs go down and the amount of “stuff” that people accumulate goes up, consumers increasingly want to buy things that will provide hedonic value in addition to simply doing what they’re designed to do • “Quality is yesterday’s news. Today we focus on the emotional impact of the product.”- Dilbert ▪ The new focus on emotional experience is consistent with psychological research finding that people prefer additional experiences to additional possessions as their incomes rise • In this environment, form is function o Procter & Gamble hit it big when Target contracted to sell Method products in its stores ▪ There’s a method to Target’s madness. Design is no longer the province of upper crust sophisticates who never got close enough to a cleaning product to be revolted by it o Recent evidence suggests that our brains are wired to appreciate good design: Respondents who were hooked up to a brain apparatus called an fMRI (functional magnetic resonance imaging) scanner showed faster reaction times when they saw aesthetically pleasing packages even compared to well-known brands like Coca Cola ▪ Mass-market consumers thirst for great design, and they reward those companies that give it to them with their enthusiastic patronage and loyalty • Design is substance. • Form is function. • Objective 3 o Products and commercial messages often appeal to our senses, but because of the profusion of these messages most of them won’t influence us • Sensory Marketing o The new era of sensory marketing, where companies pay extra attention to the impact of sensations on our product experiences ▪ They recognize that our senses help us decide which products appeal to us- and which ones stand out from a host of similar offerings in the marketplace • Smart marketers use our sensory systems to create a competitive advantage o Sensory marketing emphasizes the link between our senses and product experience • CB As I See It o Sensory Marketing, is “marketing that engages the consumers’ senses and affects their behavior.” ▪ The sensory characteristics of products such as the touch, smell, taste, sound, and look of products have a large impact on consumer behavior ▪ These sensory inputs affect how we feel, how we think, how we remember, what we like, and even how we choose and use products • Specifically, by emphasizing the sensory characteristics of products and services, or even creating new sensations entirely, we can greatly enhance consumers’ attitudes, perceptions, and satisfaction o “5” gum named after all five senses. Magnum 5 Senses Ice Cream. Denny’s breakfast (“taste it with all 5 senses”). Axe Dark Temptation deodorant spray (“become as irresistible as chocolate”) ▪ With this increasing attention to sensory marketing, products and businesses need to act quickly to establish a sensory signature • Managers need to ask themselves, “Is there something about my brand that leaves a sensory impression in people’s mind?” ▪ Sensory signatures are just one aspect of sensory marketing • Vision o Sleek styling and simple, compact features telegraph an aura of modernity, sophistication, and just plain “cool” ▪ Marketers rely heavily on visual elements in advertising, store design, and packaging. • They communicate meaning on the visual channel through a product’s color, size, and styling o Colors may even influence our emotions more directly ▪ Evidence suggests that some colors (particularly red) create feelings of arousal and stimulate appetite, and others (such as blue) create more relaxing feelings ▪ In Western culture, the color black is often associated with sophistication while white connotes innocence • Some reactions to color come from learned associations o In Western countries, black is the color of mourning, whereas in some Eastern countries, notably Japan, white plays this role ▪ In addition, we associate the color black with power ▪ Teams wearing black are more aggressive o Other reactions are a result of biological and cultural differences ▪ Women are drawn toward brighter tones and they are more sensitive to subtle shadings and patterns • Some scientists attribute this to biology; females see color better than males do, and men are 16 times more likely to be color blind o Age also influences our responsiveness to color ▪ As we get older, our eyes mature and our vision takes on a yellow cast. Colors look duller to older people, so they prefer white and other bright tones • This helps explain why mature consumers are much more likely to choose a white car; Lexus, which sells heavily in this market, makes 60 percent of its vehicles in white o Trend toward brighter colors also reflects multicultural makeup of U.S. ▪ Hispanics tend to prefer brighter colors as a reflection of the intense lighting conditions in Latin America; strong colors keep their character in strong sunlight o We know now that perceptions of a color depend on both its physical wavelength and how the mind responds to that stimulus ▪ Yellow is in the middle of the wavelengths the human eye can detect, so it is the brightest and attracts attention • Yellow Pages o However, our culture and even our language affect the colors we see ▪ Navajo has two words for black o Because colors elicit such strong emotional reactions, obviously the choice of a color palette is a key issue in package design ▪ Today color choices are a serious business. These decisions help to “color” our expectations of what’s inside the package o Some color combinations come to be so strongly associated with a corporation that they become known as the company’s trade dress, and the company may even be granted exclusive use of these colors ▪ Eastman Kodak had trade dress of yellow, black and red ▪ As a rule, however, judges grant trade dress protection only when consumers might be confused about what they buy because of similar coloration of a competitor’s packages o Of course, fashion trends strongly influence our color preferences ▪ Reason why there are “hot” colors some seasons ▪ These styles do not happen by accident; a handful of firms produce color forecasts that manufacturers and retailers buy so they can be sure they stock up on the next hot hue • Dollars and Scents o Odors stir emotions or create a calming feeling ▪ They invoke memories or relieve stress • One study showed that consumers who viewed ads of flowers or chocolate and who also were exposed to flowery or chocolaty odors spent more time processing the product information and were more likely to try different alternatives within each product category ▪ Another study reported that subjects showed higher recall of a test brand’s attributes if it was embedded with a scent- and this effect persisted as long as two weeks after the experiments o Some of our responses to scents result from early associations that call up good or bad feelings, and that explains why businesses explore connections among smell, memory, and mood ▪ Folgers commercial- smell of coffee summons childhood memories ▪ Starbucks requires its baristas to grind a batch of coffee beans each time they brew a new pot instead of just once a morning • The idea is to reclaim lost customers by intensifying the smell of the beans when they enter the store o We process fragrance cues in the limbic system, the most primitive part of the brain and the place where we experience immediate emotions ▪ Women are most attracted to the odor of men who are genetically similar to themselves, though not too similar • The researchers claimed the findings were evidence that we are “wired” to select compatible mates, but not those so similar as to cause inbreeding problems o Ad companies spend about $80 million per year on scent marketing ▪ This form of sensory marketing takes interesting turns as manufacturers find new ways to put scents into products • Sound o Coca cola chose an obscure Somalia musician for $300 million global advertising campaign ▪ “Coke has used a technique we call audio watermarking. This is a popular and well-known trick that has been around for centuries and used by composers and producers to weave a sound/motif into a piece of music. Watermarking acts like an “earworm,” which gets inside our brains and becomes so compulsive that we go around humming it as we walk down the street and not understanding why.” o Some marketers who come up with brand names pay attention to sound symbolism, the process by which the way a word sounds influences our assumptions about what it describes and attributes such as size ▪ For example, consumers are more likely to recognize brand names that begin with a hard consonant like K (Kellogg’s) or P (Pepsi). o We also tend to associate certain vowel and consonant sound (or phonemes) with perceptions of large and small size ▪ Mental rehearsal of prices containing numbers with small phonemes results in over estimation of price discounts, whereas mental rehearsal of prices containing numbers with large phonemes results in underestimation • Touch o Follow Apple’s lead, and encourage customers to handle your products in the store! ▪ In recent study, researchers found that participants who simply touched an item (inexpensive coffee mug) for 30 seconds or less created a greater level of attachment to the product; this connection in turn boosted what they were willing to pay for it o Sensations that reach the skin, whether from a luxurious massage or the bite of a winter wind, stimulate or relax us ▪ Touch can influence sales interactions • Wait staff at diners who touched customers gave bigger tips o Even type of flooring in a store can influence how shoppers evaluate merchandise: ▪ Soft carpeting creates a relaxed mood, whereas hard tile flooring causes fatigue that may result in harsher opinions o Some anthropologist view touch like a primal language, one we learn well before writing and speech. ▪ Haptic (touch) senses appear to moderate the relationship between product experience and judgment confidence ▪ This confirms the commonsense notion that we’re more sure about what we perceive when we can touch it (a major problem for those who sell products online) • Individuals who score high on a “Need for Touch” (NFT) scale are especially influenced by haptic dimension o “When walking through stores, I can’t help touching all kinds of products” o Touching products can be fun o I fell more comfortable purchasing a product after physically examining it o The Japanese take this idea a step farther with their practice of Kinsei engineering, a philosophy that translates customers’ feelings into design elements ▪ Mazda Miata made stick shift exactly 9.5 centimeters long to convey the optimal feeling of sportiness and control ▪ Chrysler 300C is designed to make you feel taller • In auto industry speak, the car has a higher H-point, which refers to the location of the seated driver’s hip ▪ Ford has “Command Seating” to reinforce feeling of power it wants drivers to feel as they look down on smaller cars o We have a tendency to want to touch objects ▪ The proliferation of touchscreens on computers, ATM machines, digital cameras, GPS devices, and e-readers is an outgrowth of a philosophy of computer design known as natural user interface. • This approach incorporates habitual human movements that we don’t have to learn • Taste o Our taste receptors obviously contribute to our experience of many products. ▪ So-called “flavor houses” develop new concoctions to please the changing palates of consumers o Cultural factors also determine the tastes we find desirable. A food item’s image and the values we attach to it (such as how vegans regard beef menu items, which is not kindly) influence how we experience the actual taste ▪ Consumers’ greater appreciation for ethnic dishes contributes to increased desires for spicy foods, so the quest for the ultimate pepper sauce continues • Exposure o Exposure occurs when a stimulus comes within the range of someone’s sensory receptors ▪ Consumers concentrate on some stimuli, are unaware of others, and even go out of their way to ignore some messages ▪ We notice stimuli that come within range for even a very short time- if we so choose • Objective 4 o The concept of a sensory threshold is important for marketing communication • Sensory Thresholds o There are some stimuli that people simply can’t perceive ▪ Dog whistle responds to sound you cannot hear o Psychophysics is the science that focuses on how the physical environment is integrated into our personal, subjective world • The Absolute Threshold o When we define the lowest intensity of a stimulus our brains can register on a sensory channel, we speak of its threshold o The absolute threshold refers to the minimum amount of stipulation a person can detect on a given sensory channel ▪ Sound a dog whistle emits is at too high a frequency for human ears to pick up, so this stimulus is beyond our auditory absolute threshold o Absolute threshold is an important consideration when we design marketing stimuli ▪ Small billboard text is out of visual absolute threshold • The Differential Threshold o The differential threshold refers to the ability of a sensory system to detect changes in or differences between two stimuli ▪ The minimum difference we can detect between two stimuli is the j.n.d. (just noticeable difference) o A consumer’s ability to detect a difference between two stimuli is relative ▪ It is the relative difference between the decibel level of the conversation and its surroundings, rather than the absolute loudness of the conversation itself, that determines whether the stimulus will register o In 19 century, psychophysicist named Ernst Weber found that the amount of change required for the perceiver to notice a change systematically relates to the intensity of the original stimulus. ▪ The stronger the initial stimulus, the greater the change must be for us to notice it. This relationship is known as Weber’s Law • Weber’s Law, ironically, is a challenge to green marketers who try to reduce the sizes of packages when they produce concentrated (and more earth-friendly) versions of their products • CB As I See It o Surveys consistently show that consumers consider price the most important factor when they buy, but marketers too often view price merely as an economic variable- that is, the amount of money the consumer must sacrifice to obtain the product ▪ Years of recent research, however, show us that consumers regard price as more than simply the cost of a product o To truly understand price, we need to think of it as an information stimulus like color, aroma, and other more traditional stimulus we interpret ▪ How consumers respond to and use price in their perceptual processes has been the focus of recent research ▪ This research considers price as an information cue that is perceived and interpreted (attaching meaning to it). We call this area of research behavioral pricing o One stream of behavioral pricing research looks at price as an information cue we use to judge a product ▪ “You get what you pay for” o When consumers don’t have other information on which they can rely, they often use price as an indicator of quality ▪ In this sense, price is an important information source consumers use to help them decide among product options o A common strategy sellers use in providing contextual information for consumers is to present a reference price along with the selling price ▪ This refers to a price against which buyers compare the actual selling price ▪ Marketers usually present it in price advertisements, on price tickets, or on stock displays ▪ When an item goes on sale and the old price and the new price are available to ascertain the savings, this price information is informative and helps the consumer • A reference price communicates the value of the deal to the buyer ▪ Using higher reference prices, sellers can get consumers to increased their perceptions of the value of the deal, when in fact the deal is not better • When this happens, consumers are more likely to purchase that item and less likely to shop around ▪ Important public policy implications (i.e., government rules and regulations) arise from research on reference pricing • Augmented Reality o Augmented reality (AR) refers to media that combine a physical layer with a digital layer to create a combined experience ▪ 3D movie or yellow line in an NFL game ▪ News apps like Google Goggles impose a layer of words and pictures on whatever you see in your phone’s viewer • Web-Based AR o Fashionista dressing room app Tobi lets you “virtually” try on clothing items using your webcam and a marker on a printed piece of paper • Kiosk-Based AR o Similar to web-based AR, but with more powerful applications that use 3D or facial tracking o LEGO kiosk • Mobile AR o These applications use the viewfinder on a mobile phone to access enhanced digital information o eBay’s Fashion app, “See It On” allows the user to virtually try on sunglasses in real time • Objective 5 o Subliminal advertising is a con
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