Consumer Behavior

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Memory interference

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is the difficulty in retrieving a specific piece of information because other related information in
memory gets in the way. A common form of interference in marketing is due to competitive advertising. Competitive
advertising makes it harder for consumers to recall any given advertisement and its contents. A number of strategies
exist for reducing memory interference:

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Avoid Competing Advertising

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avoid having your ad appear in the same set of ads (i.e., same pod in a TV format) as
your competitors. Some companies actually pay a premium to ensure this exclusivity. Another strategy is called recency
planning, which involves trying to plan advertising exposures so that they occur as close in time to a consumer purchase
occasion as possible

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Strengthen Initial Learning

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stronger learning is less subject to memory interference. Memory interference is less
pronounced in high-involvement contexts and for highly familiar brands. Strategies that encourage dual coding can
strengthen initial learning.

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Reduce Similarity to Competing Ads

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-similarity can be in terms of ad claims, emotional valence, and ad execution
elements. Just as unique ads can break through advertising clutter to garner greater attention, unique ads are also more
resistant to competitive memory interference.

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Provide External Retrieval Cues

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retrieval cues provide an external pathway to information that is stored in memory,
and brands are so important because they can serve as a retrieval cue. Additionally, marketers can use point-ofpurchase displays or package cues that link directly back to the advertisements for that brand.

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Strength of learning is enhanced by six factors:

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: importance, message involvement, mood, reinforcement, repetition, and
dual coding. Students can discuss any three:

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Message Importance-

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refers to the value that consumers place on the information to be learned. Importance might be driven by
inherent interest in the product or brand, or it might be driven by the need to make a decision in the near future.
Importance is positively related to strength of learning, largely due to the greater elaborative activities involved in fully
processing and categorizing the material

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Message Involvement

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processing can be increased by causing the person to become involved with the message itself.
Deepened involvement with the messages increases the extent of processing of the message and memory of the
associated features or theme. Ways to increase message involvement include adding scents to ads, using suspense, and
increasing the personal relevance of the message to the consumer.

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Mood

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a positive mood during the presentation of information enhances learning because it appears to enhance the
information's relational elaboration, producing a more complete and stronger set of linkages among a variety of other
brands and concepts, which in turn enhances retrieval.

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Reinforcement-

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anything that increases the likelihood that a given response will be repeated in the future is considered
reinforcement. Reinforcement has a significant impact on the speed at which learning occurs and the duration of its
effect.

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Repetition

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enhances learning and memory by increasing the accessibility of information in memory or by
strengthening the associative linkages between concepts. Basically, the more times people are exposed to information
or engage in a behavior, the more likely they are to learn and remember it.

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Dual Coding-

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consumers can store (code) information in different ways. Storing the same information in different ways
(dual coding) results in more internal pathways (associative links) for retrieving information. This, in turn, can increase
learning and memory.

Front 13

Describe regulatory focus theory.

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Regulatory focus theory suggests that consumers will react differently depending on which broad set of motives
(promotion-focus or prevention-focus) is most salient. The following briefly characterizes the differences:

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Promotion-focused motives

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which revolve around a desire for growth and development and are related to
consumers’ hopes and aspirations. When promotion-focused motives are more salient, consumers seek to gain positive
outcomes, think in more abstract terms, make decisions based more on affect and emotion, and prefer speed versus
accuracy in their decision making.

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Prevention-focused motives—

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which revolve around a desire for safety and security and are related to consumers’
sense of duties and obligations. When prevention-focused motives are more salient, consumers seek to avoid negative
outcomes, think in more concrete terms, make decisions based more on factual substantive information, and prefer
accuracy over speed in their decision making.

Front 16

List Maslow's hierarchy of needs, in order from lowest to highest, and the four premises on which the hierarchy is
based.

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Maslow's hierarchy of needs from lowest to highest are: physiological, safety, belongingness, esteem, and selfactualization. This hierarchy is based on four premises:
a. All humans acquire a similar set of motives through genetic endowment and social interaction.
b. Some motives are more basic or critical than others.
c. The more basic motives must be satisfied to a minimum level before other motives are activated.
d. As the basic motives become satisfied, more advanced motives come into play.

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Brand personality is a set of human characteristics that become associated with a brand. What are the basic dimensions
of brand personality and their facets?

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The basic dimensions of brand personality and their facets are:
a. Sincerity--down-to-earth, honest, wholesome, cheerful
b. Excitement--daring, spirited, imaginative, up-to-date
c. Competence--reliable, intelligent, successful
d. Sophistication--upper class, charming
e. Ruggedness--outdoorsy, tough

Front 18

A local Kia automobile dealership owner conducted some informal market research and found that many consumers
had negative attitudes toward this brand. Explain what can be done to change the cognitive component of consumers'
attitudes.

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Four basic marketing strategies are used for altering the cognitive structure of a consumer's attitude:
a. Change Beliefs--involves shifting beliefs about the performance of the brand on one or more attributes. Attempts to
change beliefs generally involve providing facts or statements about performance.
b. Shift Importance--most consumers consider some product attributes to be more important than others. Marketers
often try to convince consumers that those attributes on which their brands are relatively strong are the most
important.
c. Add Beliefs--add new beliefs to the consumer's belief structure.
d. Change Ideal--change perceptions of the ideal brand or situation.

Front 19

Companies spend millions of dollars each year for celebrities to appear in their marketing communications. Explain why
this might be a good investment. That is, discuss the reasons why celebrity endorsers are effective.

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Attention--celebrities may attract attention to the advertisement. Consumers tend to be curious about celebrities and
are drawn to ads in which they appear.
Attitude toward the ad--A celebrity's likeability and popularity often translate into higher Aad which can enhance brand
attitudes.
Trustworthiness--despite being paid for their endorsements, celebrities often develop strong and credible public
personas that consumers trust, and trust translates into purchases.
Expertise--some celebrities are also experts, particularly in music and sports.
Aspirational aspects--consumers may identify with or desire to emulate the celebrity, and as a consequence, they may
imitate the behavior and style of a celebrity through purchases of similar brands and styles.
Meaning transfer--consumers may associate known characteristics of the celebrity with attributes of the product that
coincide with their own needs or desires.

Front 20

. Name and describe the three defense mechanisms loyal consumers use to avoid changing their attitudes.
Three defense mechanisms loyal consumers use to avoid brand attacks:

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a. Discrediting--loyal consumers' first strategy is to discredit negative information through counter arguments, whereby
the consumers look for weaknesses in competitor attacks.
b. Discounting--when discrediting does not work, loyal consumers will often resort to discounting, whereby the
consumers protect their brand by decreasing the importance they put on the attribute in question.
c. Containment--if a brand attack cannot be discredited, loyal consumers also engage in containment, whereby
consumers "seal off" the negative information as a way to quarantine it and avoid having it spill over and spoil their
existing positive attitude.

Front 21

Describe the nature of situational influence on consumer behavior, and briefly discuss the four broad categories or
types of situations

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Situational influence is all those factors particular to a time and place that do not follow from a knowledge of the stable
attributes of the consumer and the stimulus that have an effect on current behavior. Thus, with one exception, the
situation stands apart from the consumer and the stimulus. The exception is in the case of temporary characteristics of
the consumer or stimulus that are specific to the situation and sometimes even caused by it (e.g., a bad mood caused by
the surrounding media context). Consumer behavior occurs within four broad categories or types of situations:
a. Communications Situation--the situation in which consumers receive information.
b. Purchase Situation--the situation in which a purchase is made.
c. Usage Situation--the situation for which a product is or may become appropriate.
d. Disposition Situation--the situation in which consumers dispose of products or product packages after or before
product use.

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You are tasked with the responsibility of developing a situation-based marketing strategy. Explain how you would go
about doing that.

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a. Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various
usage situations that influence the consumption of the product.
b. Survey a larger sample of consumers to better understand and quantify how the product is used and the benefits
sought in the usage situation by the market segment.
c. Construct a person-situation segmentation matrix. The rows are the major usage situations and the columns are
groups of users with unique needs or desires. Each cell contains the key benefits sought.
d. Evaluate each cell in terms of potential (sales volume, price level, cost to serve, competitor strength, and so forth).
e. Develop and implement a marketing strategy for those cells that offer sufficient profit potential given your
capabilities.

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Perceptual Process

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consumer's awareness and interpretation of reality,
The process by which incoming stimuli activate our sensory receptors

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Exposure

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Process of bringing some stimuli within proximity of consumer so that the consumer can sense it with one of the five human senses

Front 25

Zapping

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consumers switch channels when a commercial appears

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Zipping

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pre-recording shows and fast forwarding the advertisements

Front 27

Subliminal Stimuli

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A message presented so fast, softly or masked by other messages that one is not aware of seeing or hearing

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Clutter

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Advertising or marketing marketplace that is overcrowded with products leading to huge competition for customers

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Interpretation

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Different interpretations of same event/stimulus:
determined by 3 characteristics.. Individual, situational, stimulus.

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Behavioral Learning Theories (BLT)

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assume that learning occurs as the result of responses to external or stimuli

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Classical Conditioning

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A stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on it own.
(Dog and Bell with food)

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Advertising wear-out

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The point reached when an advertising campaign loses it's effectiveness due to repeated overplay of ads.

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Instrumental Conditioning

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Individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes.

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Stimulus Generalization

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Herbal companies sold products in cylinder shaped plastic containers like soup

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Schematic Memory

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Long term vs. Short terms

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Six Hedonic Shopping Motives

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Adventure Shopping (fun and adventure)
Social Shopping (enjoyment that comes from socializing while shopping)
Gratification Shopping (shopping to reduce stress)
Idea Shopping (to keep us with trends and fashion)
Role Shopping (the enjoyment that consumers feel from shopping for others)
Value Shopping (shopping for deals)

Front 37

Consumer ethnocentrism

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Consumers think that buying from their country is better than buying from another country

Front 38

Five-Factor Model of Personality

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Extroversion, Instability, Agreeableness, Openness to Experience, Conscientiousness

Front 39

Brand Personality

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A set of human characteristics that become associated with a brand

Front 40

Use of Emotion in Advertising

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emotional content in ads can enhance attention, attraction, and interpretation. Emotional messages may be processed more throughly

Front 41

Source Credibility

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composed of 2 basic dimensions: trustworthiness and expertise... Celebrity endorsement

Front 42

Positive vs. Negative Farming

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attribute farming (80% fat free(positive)) 20% fat (neg)
Goal farming (benefits) (risks)