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125 Cards in this Set
- Front
- Back
Consumer behavior: what is it?
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Reflects the totality of consumers’ decisions with respect to the acquisition consumption and disposition of goods services time and ideas. The study of human responses to products and services and the marketing of those products and services.
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Behavioral sciences versus physical sciences – why research is important
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Behavioral is dynamic physical is static More uncertainty in behavioral makes research critical
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Intuition versus research
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We tend to base decisions on intuition but a healthy balance of both is important
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Confirmation bias
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The tendency to interpret new evidence as confirmation of one’s existing beliefs or theories
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Examples of products that have flopped or products that are addressing new needs
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Flopped: New Coke. New Needs: Activia gluten free Beef Patties
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99 Lives:
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Too fast a pace. Too little time causes social schizophrenia and forces us to assume multiple roles. Eg: Executive MBA’s Soup-on-the-Go
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Anchoring:
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Reaching back to our spiritual roots; Taking what was secure from the past in order to be ready for the future
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Atmosfear:
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Polluted air and water stir up consumer uncertainty; Focus on clean environment clean energy energy saving products
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Being Alive:
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Awareness that good health extends longevity and leads to a new way of life
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Yoga
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diet Coke
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Cashing Out:
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Working men and women questioning personal/career satisfaction and goals; Opting for a simpler lifestyle
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Clanning:
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Belonging to a group that represents common feelings/causes/ideals; Memberships in various groups
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Cocooning:
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Need to protect oneself from the harsh unpredictable realities of the outside world; DVD’s home theaters
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Downaging:
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Nostalgia for carefree childhood
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Egonomics:
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Consumers crave recognition of individuality
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Eveolution:
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More females in the business world and women make up 80% of purchase decisions; Model of winning customers shift towards relationship
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Fantasy Adventures:
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Crave the road not taken; Xbox games Fear Factor
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Future Tense:
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Consumers anxiety-ridden by simultaneous social economic political and ethical chaos find themselves beyond their ability to cope today or imagine tomorrow
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Icon Toppling:
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Don’t want to engage with big companies; Renewed focus on buying local and buying from someone you can see
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Pleasure Revenge:
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Consumers are having a secret bacchanal; They’re mad and want to cut loose again (indulgences like fast food donuts)
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Save Our Society:
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The country rediscovers a social conscience of ethics passion and compassion
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Small Indulgences:
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Little treats to satisfy: little chocolate bars day spa
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Vigilante Consumer:
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Internet is radically changed the flow of information so consumers know when things have gone awry
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Guilt-Free Status:
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Consumers increasingly aware of how overindulgence has damaged the planet and society. Never ending guilt spiral.
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Crowd-Shaped:
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People pooling their data more than ever- this is changing consumer
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Made Greener By/For China:
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China becoming the epicenter for innovation for green products
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Mychiatry:
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Real-time health checks (mental and physical)
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No Data:
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Delivering brilliant service without excessive data collection will earn consumer trust
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Internet of Caring Things:
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Connected objects will center around people
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Global Brain:
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Consumers more global and more local in focus
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Integration examples of several trends
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McDonalds & Coca-Cola BFF Timeout App that rewards people for not using their phones
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Integration examples of several trends
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Customers can open a video chat with an Esurance appraiser and have the damage assessed via their cellphone camera in real-time
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Hotel Banks Antwerp
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Guests have access to an in-room clothing “mini-bar”
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Asiri Group of Hospitals
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Developed soap infused bus tickets to help prevent spread of germs
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Smile Suggest
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Browser extension uses your facial reaction to bookmark smile-inducing webpages
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Paribus
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Post-purchase price guarantee app
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Transavia
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This budget airline turns chip and candy packages into airline tickers
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Christian Louboutin
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Luxury shoemaker extends its nude collection to suit more skintones
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Observations
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cannot detect motivations; only responses.
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Focus Groups:
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Effectiveness of moderator; expensive; representative sample
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Interviews:
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Social desirability bias
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Projective Techniques:
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Metaphors; storytelling
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Diaries and Panels:
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Retrospective; Nielsen Ratings
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Surveys:
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Question wording; order effects
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Experiments:
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Most controlled; Establish direction of causality
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What surveys do
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Tell you what responses are correlated but not necessarily causal
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What experiments do
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Designed to control and rule out alternative explanations
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Correlation:
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What Surveys can tell you; Does not tell you which one comes first
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Causation:
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What Experiments can tell you; Cause and effect
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Taste test experiment – video and in class – issues in design
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People thought that the vodka that tasted better was the more expensive brand
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Independent variables
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Personal and Situation Variables
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Person Variables:
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Internal to the individual - interests; values; beliefs; may be unobservable
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Situation Variables:
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Product; Place; Price; Promotion; Positioning
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Dependent variable
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The behavior or consumer response you want to measure (change in feelings; sales); Trick for the marketer is to find groups of consumers who respond similarly to changes in the independent variable become target market
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Ways to Reduce Uncertainty
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Use multiple measures/ triangulate; Use statistical procedures and analyses; Randomly assign individuals to conditions in experiments; Understand random variability - noise
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Why understanding the tools of the scientific method are important
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It will give you a starting point when you are attempting to rule out alternative explanations; It will make you better consumers of marketing research results in your career
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Selective Exposure
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Have to pick a medium to send your messages channels to sell your product through; The process by which the consumer comes in physical contact with the stimulus
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Selective Attention
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Have to do something to get your message noticed; The process by which an individual allocates part of his or her mental activity to a stimulus
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Selective Perception
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Have to make sure they understand the message; The process by which we select-organize and interpret stimuli into a meaningful and coherent “picture” of the world
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Selective Retention
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Have to make sure the message makes it all the way to memory so the consumer can use that information when they need to retrieve it in making purchase decisions
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Intentional Avoidance
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Junk Mail;Fast forwarding through commercials; Blocking senders
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Intentional Exposure
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How can marketers ensure target marker is exposed to marketing messages?; Select media that attract target market consumers; Need to think beyond traditional places where consumers are used to seeing advertising
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Consumer Exposure Control
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Consumers select what media they consume/what stores they go to
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Marketer Control
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Marketers control when/where consumers encounter their brand
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Flush Factor
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When consumers go to the bathroom during commercials instead of watching them
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Mere exposure effect
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The more we are exposed to a stimulus the more familiar it becomes the more we will like it even if we aren’t paying attention
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From exposure to attention
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Exposure to attention to interpretation
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From perception to retention |
Marketers need to build strong associations and knowledgestructures in consumers’ memory so that the brand is activated when a relatedconcept is activated (SCHEMAS) Our interpretation from these perception processesis what is retained and goes into memory (long term). Once the information isin long term memory its hard to refute |
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Characteristics of attention:
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Selective; Can be Divided; Limited
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Cocktail party effect
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Being able to focus one’s auditory attention on a particular stimulus while filtering out a range of other stimuli
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Voluntary Attention
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Personal relevance leads to attention; If you want consumers to voluntarily attend to your message it must contain information that is important and relevant to them
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Involuntary Attention
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Occurs when a consumer is exposed to something surprising; Marketers activate the orientation reflex by creating stimuli that stand out from the surrounding context
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Breaking through the clutter
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Cockroach on TV screen; Good thing/bad thing
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Inattentional blindness
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An event in which an individual fails to recognize an unexpected stimulus that is in plain sight
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Change blindness
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Occurs when a change in a visual stimulus is introduced and the observer fails to notice it
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Sensory limits: breaking through
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Our attention is drawn to stimuli through our senses. What gets noticed and attended to is dependent on whether the stimulus breaks our “sensory limits”; As the sensory input decreases our ability to detect changes in input or intensity increases
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Absolute threshold
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The minimum amount of stimulation required for a person to detect a stimulus. It is the difference between something being perceived versus nothing being perceived at all
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Differential threshold/Just Noticeable Difference
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The smallest difference/change in a specified amount of sensory input that is detectable
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Weber’s Law and examples (weight pricing)
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The stronger the initial stimulus the greater the intensity needed for the second stimulus to be perceived as different; Adding 1 lb to 100 lb vs 15 lb; Markdowns must be at least 20% before consumers recognize them
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Applications of JND in marketing
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Sometimes we want consumers to notice differences other times we do not want them to notice changes; If you do not want consumers to notice a change fall below JND threshold: Downsizing/Pricing increase/Change in personality symbol
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Subliminal
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Below the sensory threshold we cannot articulate what we’ve seen because we are not consciously aware that we have seen it; Iron Chef – McDonalds logo hidden
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Supraliminal
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Not paying attention… Conscious that something is changing but can’t put your finger on how or what; Gilbey’s Gin ad – Sex on bottle
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Arousal and attention intensity
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Marketers want to increase overall sensory arousal so consumers pay more attention; Have to be careful not to raise it to the point at which consumers can no longer process the message (i.e. avoid sensory overload)
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What enhances our attention and examples
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Personally relevant; Pleasant; Surprising; Concreteness; Proximity; Prominence Effect
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Attention – what marketers have to decide
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Sight; Sound; Smell; Touch; Taste/mouth feel
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Limits of attention (list exercise in class)
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In general we can only pay attention to 7 +/- 2 pieces of information and have it get all the way into memory
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Examples of selective perception
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Placebos
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Common perceptual biases and examples
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Figure and Ground; Proximity; Similarity; Closure; Continuation; Good Figure; Grouping: common fate
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Irrelevant Cues
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Physical Appearance; Source Credibility; Repetition....... When perception is difficult consumers tend to rely on irrelevant information
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Irrelevant Cues: Physical Appearance
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People make certain attributions about the qualities that are associated with the product/person based on appearance alone
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Irrelevant Cues: Source Credibility
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Respected sources carry additional weight even if this isn’t in their area of expertise
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Irrelevant Cues: Repetition
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As repetition increases more likely to believe what isn’t true
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Schemas/Scripts
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Pull up information from memory and use it to interpret new circumstances
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Halo Effect
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A generalized impression is extended to the interpretation of non-relevant stimuli
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Limited Hypothesis Testing
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We don’t think about all of the possibilities
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Short Term Memory |
Capacity:7 +/- 2 seconds Duration:18 seconds InformationLoss: Rehearsal failure Coding:Acoustic (sound related) |
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Pragmatic Inferences
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Literally true but figuratively false
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Affirmation of the Consequent
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If I am in Calgary then I am in Alberta if I am in Alberta than I am in Calgary
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Piecemeal Data
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Juxtaposition of imperatives; Fragmentation of relevant data
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Comparison Omission
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Leave off comparison point
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Feature identification; prototypicality
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Not only does out mind play tricks of perception on us but we tend to group things into categories based on common features because that is the way the world is usually organized
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Categorization and prototypicality
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When we don’t know exactly how to interpret a new concept we look for common features that will help us identify the concept; Expectations of features and context can play a role in how prototypical a given concept is
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Taxonomic category structure
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Superordinate Level – Beverages---->Basic Level – Teas Coffees Juices---->Subordinate Level – Diet Non-Diet; Herbal Non-Herbal ----> Category Members/Exemplars/Prototypes -LiptonCoke ----> Features/Associations – a b c
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Perception – challenges for marketers
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Consumers have different experiences and expectations that influence the perception; different frames of reference (peanut butter vs. Nutella)
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First-Hand Experience
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Can be controlled by the marketer; Product trials sampling demonstrations; Expensive time consuming but more lasting effects on attitudes
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Second-Hand Experience
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Can’t be controlled but can be very powerful if managed – “buzz marketing”; Word-of-mouth social media; Almost impossible to control
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Expectations/prior knowledge (example taste test)
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Perception is constructive; people construct interpretations on the fly
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Perceptions are constructed as needed and are based upon two major factors:
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The “actual” stimulus or event; Prior knowledge/expectations: What we expect to see to a large extent is determined by what we expect to see which is determined by our prior expectations. Consumers only perceive differences in stimuli that exceed the JND threshold
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Long Term Memory
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Capacity: Unlimited; Duration: Permanent; Information Loss: Retrieval failure; Coding: Semantic (meaning related)
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Memory performance – probability of recall
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Probability of recall goes up with number of trials but organized lists are always recalled more easily
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Associative networks
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Information is stored in memory in an organized network structure. Comprised of nodes and links; Repetition strengthens the link – more likely to prime related concepts/provides a context; Lack of use/strength of association diminishes… becomes less accessible in memory; Role of “priming”; Always recall the first and last positions within lists: primacy and recency effects
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Nodes:
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Concepts/words
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Links:
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Associations between linked concepts
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Brand exercise
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Listing features of diamonds then immediately asked about vegetable many respond carrot i.e. carat
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Methods to study memory
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Recognition; Aided/Cued RecallFree Recall;
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Association principle: assimilation and contrast effects
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Ambiguous targets = many possible meanings which is how you could get consumers to think about “unrelated concepts” together; Provide a reference point that anchors the judgement and link it with the target
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Assimilation
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Shift toward the reference point
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Contrast Effects
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Shift away from the reference point
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Enhancing memory
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Chunking; Rehearsal; Recirculation; Elaboration; Encoding specificity
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Encoding-specificity principle
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Scuba divers more likely to recall in water what they learned in water
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Implicit memory
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If we divide someone’s attention when they are learning interferes with the encoding process
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Source Amnesia
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Memory loss that makes it impossible to recall the origin of the memory of a given event. It occurs when you forget where you learned something but your non-conscious recognizes that you were exposed
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Dealing with negative publicity
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How can we use what we know about priming and the associative network to make recommendations about how to deal with negative publicity?
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Challenges with negative publicity
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If you are dealing with a rumor is it better to… Ignore the rumor? Try to refute? Do something else?
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Summary about memory and impact on marketing
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Our LT memory system is comprised of concepts organized in an associative structure. When we are forced to interpret information (part of perception) we tend to rely on our memories and past knowledge structures (categories) to help us with that interpretive process..............The context and the information that primes related thoughts will have direct implications for the conclusions we draw from that perception process...........If a marketer can use what he/she knows about the consumers’ associative networks and how memory works it may be possible to influence the conclusions drawn by the consumers
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