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157 Cards in this Set
- Front
- Back
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Information Processing
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Marketing stimulus
Exposure Attention Comprehension Acceptance Retention Memory |
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Exposure
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The process by which we come into physical contact with things through sensory modalities.
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What is exposure also referred to as?
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OTS
"Opportunity to see" an ad |
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What are ways to attain exposure?
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-Media advertising
-Product placement -Point of purchase -Packaging |
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Example of exposure
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BMW had orders for the Z3 up to a year in advance after the car was featured in James Bonds "Goldeneye"
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Fazio, R. H and Roskos
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Stimulated store choice- brands on store shelf.
-The easily seen option is more likely to be chosen. -Not a coincidence that cereal for kids is located in the bottom row.(where kids are level) |
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How do we measure exposure?
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-depends upon how many people within a target segment are exposed and how often they are exposed.
-Exposure- f (reach, frequency) |
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What are the three research tools we use to measure reach and frequency?
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-Simmons Market Research bureau
-Nielsen TV Index -Arbitron for Radio |
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What are the issues with exposure?
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-Cluttered environment
-Selective exposure through zipping and zapping. Zipping- fast-forwarding Zapping- Changing channels or channel surfing. |
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What is Attention?
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-The allocation of processing resources (or processing capacity) to the incoming stimulus.
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What are the two dimensions of attention?
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- Direction- focus of attention
- Intensity- amount of resources (or capacity) focused in a given direction. |
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Miller (1956) study
Attentions limited nature. |
"The Magical number 7" plus or minus 2.
There are limits on our capacity for processing information. -We can only hold a process "7+/-2" units of information at a time. |
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What is the importance of gaining consumers attention?
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- If consumers don't attend to the ad, it can't possibly generate sales.
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Gaining attention may be a formidable task for marketers due to?
What are the factors that contribute to selective attention? |
- high ad clutter
- consumers limited cognitive resources (attention) - The unimportant nature of many products. |
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Attentions selective nature does what for the consumer?
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- Consumers have a processing capacity constraint so we cant attend to all incoming stimuli
-Certain stimuli are selected for attention, some aren't. |
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What is the shadowing experiment and example of?
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-Selective attention
- Participants listen to two messages via headphones simultaneously and repeats one of the messages. |
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What could participants tell about the unattended message?
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- Human speech versus non speech-sounds
- Changes from male to female voice. |
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What couldn't the participants tell about the unattended message?
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- Any content of the message
-What language -Whether language changed. |
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Hemispheric lateralization
Left brain/ right brain |
-Left brain more easily processes numbers, language, analytical information
-Right brain more easily process spatial cues, pictures. |
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What was the Shapiro, Stewart and MacInnis study?
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- Measured the effects of incidental ad exposure on the formation of consideration sets.
Participants were given a task to attend to (read text and click on a :) whenever it appeared.) -Ad was place to left of field view and processed by "Visual right brain" -There was no conscious recognition of the ad but consideration of incidentally perceived product increased in a subsequent choice situation. |
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Weber's law
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-Recognized that perceptions of change depend on both the amount of change and the initial starting point prior to change.
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What does Weber's law express?
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- Expresses the relationship between a change in the intensity of a physical stimulus and a change in the sensation as deltaI/I = K
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What does K =
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K= a constant
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delta I =
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The smallest change in the stimulus that will produce a just noticeable difference (JND)
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I =
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The initial or existing level of the stimulus
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What question can Weber's Law address?
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- "will a change in a marketing stimulus be perceived by the consumer?"
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What does Weber's Law suggest?
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-The amount of change necessary for someone to notice a change (Delta I) depends on the initial starting point (I)
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For price increase
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Price changes should be smaller than Delta I
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For price discounts
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Price changes should be equal to of exceed delta I
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What are the implications for POP
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-There are greater than 30,000 supermarket products
- Consumers spend little time on brand choice - Marketers need to use packaging, POP materials to draw attention to brand. |
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What are stimulus determinants of attention? (7)
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- Size
- Color - Contrast - Isolation - Novelty - "Learned" attention- inducing stimuli - Product endorsers |
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What was the Steadman's Study?
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- Examined impact of sexual images on brand name recall.
60 males were given booklet containing 12 ads. Half ads contained a female model undressing. Aided recall was tested after 24hrs and then after 1 week. |
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Results
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Non sexual
24 hr- 66 % 1 week- 61% Sexual 24hr- 62% 1 week- 49% |
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What are the implications of this study?
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- Marketers need to use stimulus factors that
1. attract attention 2. Don't interfere with processing of the message. |
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Comprehension: what does it involve?
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-How consumers perceive information presented in an ad.
-How consumers interpret the information -The meaning consumers develop for products and brands |
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What issue is the most critical process in consumer behavior?
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- Perception
consumers act based on their perceptions and beliefs - what is perceived may not necessarily be true |
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What is an important comprehension issue for marketers?
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-Whether consumers are interpreting marketing stimuli in the intended manor..
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Coke and pepsi comprehension issue.
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70 % of consumers in a blind taste test confuse Coke and Pepsi
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What 4 things does comprehension involve?
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1. Organization
2. Interpretation and perceptions 3. Categorization 4. Integration into existing knowledge |
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What principals does organization follow?
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Gestalt principles
-figure and ground -closure -grouping |
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What is figure and ground?
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-A process of determining what aspects of stimuli to focus on.
-consumers tend to place "important" stimuli in the foreground and move less important stimuli to the background. |
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what is Closure?
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-Use of partial cues to complete a mental image.
Ex: cube example in notes Ex: Absolute Vodka uses this technique. |
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What is grouping
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Proximity- similar things go together
-Birds of a feather flock together Ex: In notes, organize by columns because they look more like a group. |
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What is key with consumer perception?
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-There must be a reference point
-The human mind detects "how much" only compared to "what" |
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Why is a reference point key in perception?
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-Human mind is not good at understanding absolute levels about things
The idea of a reference point becomes important to understand how stimuli are interpreted and perceived. |
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Hsee, C. K.
Reference points |
- Participants were shown ice- cream and asked how much they would pay
- the cup provides a reference point -The amount was then evaluated relative to the reference point (the cup) |
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What is context sensitivity?
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-Marketers should be as interested in the context( where the marketing stimulus is seen) as they are in the stimulus itself.
Ex: prices are often evaluated in reference to prices of other brands. Ex: Attributes are evaluated in reference to attribute levels across brands. |
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what is am implication for monitoring consideration sets and awareness sets?
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- Evaluation of brand attributes relative to other brands in consideration set
-Inclusion of a specific brand can increase/ decrease favorable evaluations of other brands in CS |
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Ex of salient reference point.
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William- Sonoma offered a bread maker priced at $279. Later a second bread maker, similar to first but larger and priced at $429. Sales for the first model almost doubled.
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How are categories formed?
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- repeated encounters with examples of a certain class of objects.
- Repeated activation of certain features/ attributes - over time, leads to formation of a category |
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Features of categories
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graded structure
robin--> bird Subcategories: colas, diet colas, lime flavored |
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What is prototypicality?
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The prototype is the best example of the category: They do extremely well in the market.
Ex: Kleenex Heinz |
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What is the role of categorization and comprehension?
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-Categorization can influence how a product is viewed, which influences:
Consumer demand for product perceived competition for the product |
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Ex: Del Monte
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People categorized Del Monte prunes as being bad so the product was viewed as unattractive.
Del Monte changed the categorization to "dried plums" so people comprehended the prodcut differently. |
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What does using categorization create?
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-Create meaning for products
-Consumers may be slow to accept many products because their isn't a category established for these products. |
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Ex: PDA
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Customers didn't even know what a PDA was so when Apple came out with the Newton is died and the Palm became a runaway success w/ the hand-held devices.
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What are the two ways to use categorization to create a better (unique) positioning for brands?
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- By encouraging consumers to form "new" categories or sub- categories. marketers can increase the likelihood of their brand being selected.
-Choice for a brand can also be enhanced if consumers place it in a different category of sub-category. |
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Ex: sub category
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-If a category is already owned by a brand, you want to dominate the sub-category.
Ex: "7-up" non-cola category |
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What is another way we can use categorization to enhance consumer evaluations of new products?
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- Brand extensions
New products offered under a brand name -80% of new products are brand extensions. |
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Ex: Sony brand extensions
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Sony wold have favorable associations with making products such as televisions, VCR's and audio products but they wouldn't have success with coming out with perfume because they are know for their electronics.
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What are the benefits with using brand extensions?
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- reduce the cost of educating consumers about the new product
- reduce the cost of creating favorable attitudes for the new product |
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What are the risks with using brand extensions?
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-"brand dilution" and consumer confusion
- "The more products hung on a brand name, the less meaning the brand name has to the average consumer." |
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Consumer expectations can influence comprehension.
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Expectation- a person's prior beliefs about and object.
-Once formed, these expectations can influence a person's interpretation of information presented about the object. -Expectations bias our processing. |
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Bruner and Minturn's Bias Study
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-Subjects were briefly exposed to a "broken B" stimulus and asked to identify it.
-Subjects who had previously viewed 4 different capital letters perceived the stimulus as a "B" - Subjects who previously had viewed 4 pairs of digits perceived the stimulus as "13" |
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Allison and Uhl's study.
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There is a significant difference between blind and labeled test.
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Summary and marketplace implications of comprehension.
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- When product beliefs are positive, marketers must reinforce or maintain these expectations by projecting a consistent image over time
- Breaking negative expectations or product beliefs can be very difficult when these are held deeply by consumers. |
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What is Acceptance?
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-The degree to which the stimulus influences a person's knowledge and/ or attributes.
-Although and ad is attended to, and the ad information is comprehended, persuasion may still not occur, unless there is acceptance of the information presented in the ads. |
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What are cognitive responses?
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- The thoughts that occur while processing a stimulus
-The nature of these thoughts will determine the acceptance of the ad claims. |
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What are the types of cognitive responses?
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- Counter arguments
-Support arguments - Source derogation - Source bolstering |
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use cognitive responses to form an index of acceptance.
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#SA's - #CA's +#SB's - #SD's = acceptance/ persuasion
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Counter arguments
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Thoughts that run counter to or oppose the message claims
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Support arguments
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Thoughts that support or are favorable to the claims
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Source derogation
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Negative thoughts about the source (The spokesperson in the ad)
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Source bolstering
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Positive thoughts about the source
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What is an effective response?
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The feeling s and emotions that occur while processing a stimulus
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What is retention?
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-The transfer of information into long-term memory
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What are the types of memory?
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Short- Term
Long-Term |
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Why does recognizing the distinctions matter?
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-Different aspects of consumer behavior are reliant on different stores- require different marketing solutions
Ex: Paying attention to arguments in an ad relies on STM Ex: Recalling a brand name relies on LTM |
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What is STM?
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-Where we encode or interpret incoming information in light of existing knowledge
-Process of understanding occur in STM -STM is used for information processing (to interpret and ad) |
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What are the characteristics of STM?
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Limited
-only hold a certain number of items in STM 5 +/- 2 Short-lived -Unless it is transfered into LT store by trying to remember the info, it is lost. |
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What is LTM?
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Part of memory where information is stored for later use
-Think of it as the hard drive of your computer- it is where you save information for long term storage and later retrieval |
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What are the current notions of LTM?
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- Memory- a network of associations
- The basic idea is that when we encounter something, we code its features and associate these features together -When we encounter it repeatedly under a variety of conditions, some associations get strengthened |
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Key points
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-Once a concept it activated, activation spreads to other concepts it is connected to
-Eventually, a subset of features will turn on the network - When the concept/ representation "Turns on", we see it in "our minds eye" - we have the subjective experience of recalling from memory |
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Managing learning (transfer to memory)
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- ensuring info is/ is not transfered into memory
EX" Transfer brand name to LT memory for recall at point of purchase Ex: transferring attribute information to LT memory |
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Managing retrieval (recall from memory)
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-Ensuring information is/ is not recalled from memory
Ex: remember brand name at point of purchase Ex: remember superior attributes when looking at competing brands. |
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What is learning?
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-The process of changing or updating knowledge
Consumer behavior is a learned behavior EX; our tastes, beliefs, and preferences are the result of prior learning |
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How do we learn?
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Learning primarily by facilitating transfer from STM to LTM
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What are the two types of learning?
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-Cognitive learning( more complex)
-Behavioral learning (simpler form) |
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Cognitive learning
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-Recycling
-Repetition -Elaboration |
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What is recycling and what are the two main functions?
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-The recycling of information through STM.
-Maintenance of information( keeping it activated) in STM -Transfer of information from STM to LTM |
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What is repetition?
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- Can involve repeating elements within the ad or generating multiple exposure to the same ad
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What does repetition do?
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-Repeated exposure to a stimulus enhances future recall or recognition for that stimulus
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what is Advertising wearout?
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-When there is to much repetition it reduces the advertisements effectiveness.
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How can your reduce ad wearout?
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Repetition with variation of a central theme- Using different ad executions that carry the same basic message.
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Unnava and Burnkrant
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-examined the effect of varied ad executions on memory
Varied executions on aided and unaided ads were a lot higher than if the same executions were used. |
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What is elaboration?
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- The amount of integration between the stimulus and existing knowledge.
-In an advertising context, elaboration would involve integrating new information about a brand with the existing information you already have stored in your memory. |
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Ex of elaboration
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Colgate --> colgate toothpaste --> whitens teeth---> cleans teeth---> colgate toothbrush
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Why does elaboration lead to better learning and memory?
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-Elaboration involves an integration of new information with that already stored in memory
Therefore it encourages multiple representations or paths to that information, enhancing memory. |
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What are the two coding systems in dual coding?
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-Verbal codes
-Imaginal codes (nonverbal or visual codes) |
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What is an implication of dual coding?
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- The information held in both systems should be more accessible than information held in just one
-This is because a verbal or nonverbal retrieval process could be used. |
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Concrete words and dual coding
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-Dual coding suggests thats it is easier to remember concrete words than abstract words
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Concrete words
Abstract words |
Ex: Tree, party
can be expressed visually or verbally Ex: Justice and equality can only be represented verbally |
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What are the two types of behavioral learning?
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-Classical conditioning
-Operant/ instrumental conditioning |
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What is classical conditioning?
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-Learning through association- focus on stimulus- response associations as a means of learning.
Ex: Pavlo's dog |
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Pavlov example
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US- food
CR- Salivation CS bell CR salivation |
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what is Operant/ instrumental conditioning?
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-involves how the consequences of a behavior affect the frequency with which the behavior is performed again.
-The outcome affects the behavior |
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Example of operant conditioning
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Satisfaction/ dissatisfaction will lead or no to purchase/ usage
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Positive reinforcement
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The probability of a behavior being performed is increased by providing a " reward"
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Negative reinforcement
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The probability of a behavior being performed is increased, but this time by removing something negative
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what is Reinforcement?
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-The outcome of a behavior are desirable, increasing the probability of performing the behavior again
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What is punishment?
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The outcome of the behavior is undesirable, decreasing the probability of performing the behavior again.
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What is retrieval?
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-The process of remembering
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What is the Keller Study?
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-Examined the influence of advertising retrieval on the recall of information at the point of purchase.
Subjects had 40 seconds to examine 12 ads with 2 claims. One group was given a cue one wasn't subjects were then asked to recall all the info for 4 out of the 12 ads. the ones who received the cue recalled the ads better and had higher brand evaluations. |
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What is consumer knowledge?
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-Involves the information people have stored in memory concerning the marketplace.
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What does understanding consumer knowledge help marketers do?
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-Understand the product's competitive strength and weaknesses from the consumer's perspective
-Verify whether intended positioning is working -re-position brands to create new or updated brand images -Identify purchase barriers (lack of knowledge and misperceptions) -Identify usage issues |
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Why do we want to change perceptions about well-known brands?
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-Update or improve the brand image
- Create clearer, more unique brand images -Strengthen the brand to enhance its equity/ value and profitability |
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What is usage knowledge?
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- Information in memory regarding how a product is used and what is required to use the product.
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What is the hierarchy of Effects model?
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-Awareness
-Knowledge -Liking -Preference -Intention -Purchase |
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What are semantic differential measures?
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-Image analysis using perceptual maps
-Image analysis using perceptual maps with ideal points. |
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How so me use semantic differential measures?
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-Identify the attributes that consumers use in deciding between brands in a product category.
- asses consumer beliefs for different brands on the attributes just identified. |
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By using perceptual maps, the distance between brands allows us to?
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-Asses competitive advantage
-Identify potential recruits -Identify potential threats |
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What do perceptual maps do?
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-Involves collecting perceptions of brands on various attributes and constructing a perceptual space that underlies those attributes.
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How do we construct perceptual maps?
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-Identify key attributes (focus groups)
-Ensure customers are familiar with product category -have consumers evaluate various brands on each attribute -Compute average ratings of each brand on each attribute and submit the data to a suitable perceptual mapping technique |
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How do we interpret perceptual maps?
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Arrows that go in the same direction are highly positively correlated to each other and negatively correlated to arrows going in opposite directions.
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What is an ideal point?
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- represents a brand that has ideal levels (at least in the customer's mind) of the attributes of interest
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What are the issues with brand Re-positioning?
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-Difficulty in using re-positioning to create sustainable competitive advantages.
-Upscale or downscale moves |
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Product line downward moves
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-Downward stretches present a problem with cannibalization.
-Sales of lower priced, low margin products can take away sales of higher- priced high-margin products. Ex: BMW 3 series |
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Product line upward moves
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-They can also be risky...
-Can a low end co. produce high-end products? Ex: Tylanol extra strength. |
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What is the problem with re-positioning for a competitive advantage?
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In product- markets where many brands are at or near parity, any differentiation on traditional marketing variables can be easily copied or overcome by competition.
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(social influence ch.)
What is reference group influence? |
-Group of people that significantly influences one's behavior.
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What is personal influence?
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-Often exceeds the influence that a company's own promotional efforts might have.
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What are the three types of group influences?
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- reinforcement and punishment
- constrained experiences (experience drives info. processing) -Modeling |
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Example of group influences: Tanya Chartand and John Bargh study
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-The chameleon effect
-Participants worked with another otensible participant who either crossed his or her arms or touched his or her cheek. -Participants unconsciously mimicked behavior. |
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Venkatesan's Study
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Presented business students with 3 suits and asked them to choose the best suit.
Suits were identical but they were told some were better. When there was no social pressure the evaluation of suits didnt exist. When participants chose together there was conformity for suit B |
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Types of personal influence:
Informational Influence |
- People accept opinions of others as a means of gaining information to evaluate products or brands.
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What is the woodside and Davenprot Expertise Study?
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-Tested the effects of expert vs. non-expert salesperson on sales of a tape deck cleaning kit in music store.
-The expert is more persuasive even though the non-expert was given and said the same information. |
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What is the woodside and Davenprot Similarity Study?
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- The salesperson expressed musical tastes similar to or different than the customers before attempting to influence customer to buy a tape- deck cleaning kit.
-Salespeople that exhibited similar references to customers tastes are more persuasive. |
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Word of mouth influences
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- A recent survey involving 60 product categories reveled that referrals from other consumers accounted for three times as many purchases as did advertising.
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WOM influence study
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-Twice as effective as radio advertising
-Four times as effective as personal selling -Seven times as effective as print advertising WOM can be either positive or negatives in its implications for a brand. |
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Expertise study implications
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have ads with expert endorsements
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Similarity study implications
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have ads with customer testimonials
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What is a normative influence?
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-Consumers' choices are often affected by their beliefs about how important other will react to them as a function of product ownership and/or product usage.
-Are we behaving in a way others that are important to us think we should? |
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What are normative influence implications?
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-Our product choices are influenced by what others think
-Our product choices might be influenced by the choices of others. Ex: celeb endorsements |
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How do marketers attempt to use normative social influence to their advantage?
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By showing:
-Unfavorable social consequences that can occur when the product isn't used -Favorable social consequences that can occur when the product is used -integrating the strategies together |
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What is value- Expressive influence?
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-This occurs when individuals want to be identified with a particular reference group without being a member because they:
-May not desire actual group membership -May not possess the ability to gain membership into the reference group |
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Why does the value- Expressive influence occur?
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-Identify with members of the reference group who are admired and respected in society.
-Enhance the image of oneself in the eyes of others |
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What is culture?
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-Culture drives consumer behavior
-Information processing style that is set into the social structure of a group (your are taught and adapt to it) -Individuals born into a culture learn this way of thinking -Reflected in many things: Clothes, language, food, customs, but also thought and decision making. |
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Independent cultures (USA, UK, FRANCE)
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- Focus on salient features of stimuli, on individuating information.
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Interdependent cultures (China, Japan)
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-Focus on relationships between features, rather than features themselves.
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What is the mechanism underlying cultural influences on consumer behavior?
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-Cultural differences attribute to what values we have.
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What are cultural influences on values?
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Values: general beliefs shared by a group. Ex: what is right vs wrong
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What are cultural influences on perceptions/ beliefs?
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- Our culture is the "lens" in which we interpret objects.
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What are consumption norms?
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- Are the shared beliefs regarding rules of behavior. Ex: What behaviors are appropriate or not in a given context.
Ex: wearing ties to work |
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How does culture influence consumer behavior?
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-Through changing values, perceptions, and norms.
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What questions do marketers need to consider when entering a new market?
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- Does culture have any influence on demand for the product service in the new market?
-If so, how does culture influence consumer demand? |
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What is standardization?
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-Standardize the marketing mix across markets to enhance efficiency (reduce costs)
Ex: colgate uses all the same packaging |
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What is adaption?
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-Adapt the marketing mix to specific markets to enhance effectiveness
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