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171 Cards in this Set
- Front
- Back
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Describes an intrinsic need or desire of the consumers, to which the brand alludes with its solution offer
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consumer insight
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the consumer activities assocaited with the purhcase, use, and disposal of goods and services, including the consumer's emotional, mental, and behavioral responses that precede, determine, and follow these acts
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Consumer behavior
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Consumer Activities
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-Purchase
-Use/Consume -Dispose |
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Consumer Responses
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-Affect
-Cognition -Behavior |
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Affect
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Emotional responses
-Mood -Emotion -Feelings |
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Behavioral
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Overt decisions and actions
-Inquiring -Trying -Buying -Recommending |
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Cognitive
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Mental responses
-Beliefs: non-evaluative -Attitudes: evaluative -Intentions |
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Why study consumer behavior
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-Improve business performance
-Influence public policy -educate and help consumers make better decisions |
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Combination of what to get consumer behavior field of study
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-Psychology
-Sociology -Economics -Economic anthropology -Medicine -History |
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Consumer welface
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help people to buy stuff
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Marketing concept
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ask consumers 'what they want'
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Motivation research (1950s)
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By Ernst, mainly sexual
-women liked soup because they associated it with brease milk-nutritious and warm |
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Behavioral Science Approach (1960s)
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-Positivism/social science
-Most popular appraoch -heavy reliance on quantitaive methods -view consumers are largely rational |
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Interpretivism
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-post modernism
-assumes consumers are irrational, and to not assume that every consumer is the same -heavy reliance on qualitative methods |
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systematic process of planning, and then collecting, analyzing and interpreting data and info relevant to marketing
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marketing research
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product fail because companies fail to do research and just follow their own intuition
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intuition trap
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research that is done in a specific context to solve a specific business problem
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applied research
-cannot apply this research to other situations |
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relationships between variables in order to uncover theory and apply across contexts
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basic research
-apply this research across situations |
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Exploratory research examples (qualitative)
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-Focus groups
-Depth interviews -Projective techniques (interpretism) -observation -Ethnography: move into situation |
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Descriptive research (quantitative)
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-Panels
-Cross-sectional surveys -Has to do with statistics (mean,correlations) |
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Correlation
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-Two variables have to be related
-does the correlation make sense |
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Loosery correlation
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correlation that poeple falsely believes exists
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Spurious correlation
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do not have a correlation because of a confoucning third variable
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Predictor type: measured vs. Manipulated (quality of data)
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Measured: summarize existing condition (dependent variable)
Manipulated: random selection and assignment (independent variable) |
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cross sectional measurements
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snapshot in time
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longitudinal measurements
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multiple measures overtime
-better data, but costly to use |
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research process is an active, project-based appraoch. There are also ongoing, system-based approaches in the marketing reserach
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Systems approach
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Secondary data
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Collecting existing information
internal: own company records External: acadmic journals |
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Primary data: what do we collect?
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-demographics
-psychological and lifestyle characteristics -awareness/knowledge -beliefs and attitudes -motivation -intention -behavior |
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Primary collection methods
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-observation
-direct questioning -experimentation -projective techniques |
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Things to avoid while doing research
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-ambiguous questions
-biased, leading questions -double barrel questions (2 in 1) -Social desirability bias (sensitive questions) -Non-exhaustive: leave out a choice -Non-mutually exclusive: choice categories overlap -Questions out of order or influence by order -the "visual" look of messiness, typos |
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Closed ended types of questions
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-Check or fill in the blank
-Likert Scale -Semantic differential |
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Likert scale
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uses full, descriptive sentences and asks for gernal negative-to-postiive attitude scale
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Semantic differential:
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uses descriptive objects to anchor attitude scale
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Projective techniques
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many types aimed at getting subconscious attitudes or attitudes the subject may not want to openly discuss
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What could go wrong in marketing research?
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-Error: errors in sampling or measures
-Non-response bias: there is some systematic reason/difference between those who chose to answer our questions and those who refused -Refusals: don't know;don't understand;none of your business -False answers: either on purpose or trying to "help" the study by conforming the hypothesis. |
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Ethical issues
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-Selling the guise of research
-promises of anonymity or privacy -invasions of privacy -statistical "honesty" |
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Market segmentation process
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-Match strengths with opportunities
-Segment Market -Determine target(s) -Differentiate via positioning -Design the marketing mix |
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Two underlying assumptions of segmentation
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-consumer preferences vary
-when you tailor a product/service to a segment's specific needs, the segment will be more willing to pay a price that offsets the costs associated with catering to the special needs of the segment |
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dividing the mass market into subsets of consumers who share common needs, characteristics, or behaviors, and targeting one or more of those segments with a distinct marketing mix. Avoids parts of the market it cannot satisfy.
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Market segmentation
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a segment toward which marketing effort is directed
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The target market
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Benefits of segmentation for the company
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-Efficient use of resources
-avoid direct competition -consumer: special needs are met and get better products and more education/info about the products -society: increased standard of living-better products and better info |
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process of communicating with our target market through the use of marketing mix variables to differentiate our product from others
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positioning
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STIC model (positioning process)
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-Similarity
-Targetedness -Internalization -Cultural affiliation |
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Similarity:
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we identify with people who look and seem similar to us. we like when we feel a sense of similarity with the brand spokesperson
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Targetedness
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we feel appreciated and courted: we like it when we feel like a brand is tailored to our needs and the company works hard to get our sale
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Internalization
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the process communicates values and allows us to internalize shared values
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cultural affiliation
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the process communicates cultural experience that can inform indiivudal attitudes and preferences.
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Targeting cues of the STIC process
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-Exclusive: targets in-group, excludes out-group
-Inclusive: targets in-group, does not exclude out-group -Mainstream: tries to target inclusively most of society |
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Biggest to smallest segmentation/targeting strategies
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-Undifferentiated (mass) marketing
-Differentiated (segmented) marketing -Concentrated (niche) marketing -Micromarketing (local or individual) |
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focus is on common needs of consumers. Geared to largest number of buyers. Uses mass advertising and distribution
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Undifferentiated marketing
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firm targets several market segments and designs separate offers for each
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Differentiated marketing
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focus on acquiring a large share of one/few smaller niche segments: few competitors usually
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Concentrated marketing
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tailoring products and marketing programs to suit the tastets of specific indiviudals and locations
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Micromarketing
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These strategies are influenced by
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-market size and growth potential
-the competition -customer preference heterogeneity -Sales-cost trade off -potential for cannibalization -majority fallacy |
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Customer prefernce heterogeneity
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tastes and prefernces differ among people, as prefernce heterogeneity increases, the case for segmentation increases in strength
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Sales-cost trade-off
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as market segmentation increases, sales increase because a firm's offerings algn more closely to consumers' preferences, but this means costs also increase because a multi-product strategy costs more to implement than a one-product strategy
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Cannibalization
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products offered by a company are so similar that they compete among themselves
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Majority fallacy:
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going after a big segment because companies assume it will be most profitable, but the problem is competitors are greatest in this largest segment. Smaller, or niche, segments can actually be more profitable when there is less competition
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Common bases of market segmentation
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-Demographic
-Geographic -Psychographic -Behavioral Bases |
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Psychographic includes consumer's...
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-activities
-interestes -opinions -beliefs -attitudes -personality -motivation |
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Psychographic VALS
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Developed in 1970s, in 1989 it expanded to include motivaiton/resources.
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Behavioral bases
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-Product attributes or benefits sought (price)
-Usage occasion -Product usage |
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name, term, symbol, design, or some combination, intended to identify and differentiate
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Brand
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the place the brand occupies in the consumers' minds, realitve to the competitive, often called "share of mind"
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brand position
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Rise and trout:
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position of a product is the place the product occupies in the customer's minds. positioning is not somethind a marketer does to a product, it's in the mind of the consumer. all marketers can do is communicate the marketing mix and hope that the consumer accurately positions the product in his/her own mind in line with the intentions of the marketer
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Strategies for brand positioning: law of leadership
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better to be first to market than to be better
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Strategies for brand positioning: law of category
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if you can't be 1st in a known cateogy create a new cateogry to be first in
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Strategies for brand positioning: law of perception
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marketing is a battle of perception not product
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Strategies for brand positioning: law of mind
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it is better to be first in the mind of the consumer than it is to be first to the market
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Strategies for brand positioning: law of focus:
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trying to own the word in the mind of the consumer
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Strategies for brand positioning: law of exlusivity:
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two brands in the same cateogry can't own the same wordf
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Strategies for brand positioning: law of duality
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most markets/brands become a 2-horse race
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Positioning a leader/pioneer brand
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-Standard of comparison
-We invented the product -"we're number 1" |
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Positioning an alternative brand
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-Look for a gap and fill it
-Do the opposite -Turn disadvanatges in advantages |
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Strategies for brand positioning part 2:
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-Core benefits
-usage situation -usage type Price Brand personality |
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Core benefits
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reslies on a single attribute or benefit that differntiates the brand from competitor's offerings
ex: bounty (absorbent) vs. Brawny (strong) |
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Usage situation examples
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-Gatorade (sport)
-Orange juice (breakfast) |
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Usage type examples
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-Secret (F)
-Guard (M) |
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Price-quality heuristic:
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assumption that there is a strong relationship between price and quality leaders consumers to infer that high price signals high quality
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changing how consumers perceive a brand, either our own brand or a competitor's
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Repositioning
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where you are positioned in the mind of the consumer compared to the competition, helps show where there are gap in the market
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perceptual map
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based on brands as belief systems. brands serve as a symbolic extension of self. believing becomes belonging to a like-mind community surrounding the brand
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primal branding
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Primal branding
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-Creation story
-Creed (core principles) -Rituals(things that you do when using the brand) -Icons -Sacred Words(words created for believers) -Pagans(to have believers, have to have non-believers) -Leaders(innovator who created the world to their own point of view) |
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How you select, experience, and interpret sensations. How we take in the world
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perception
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assumption that we all perceive the same way
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phenomenal absolutism
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Perceptual process
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-pre-attentive processing
-sensory exposure: stimuli -attention -comprehension |
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act of focusing on one or more stimuli while potentially ignoring other stimuli
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attention
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choosing what to pay attention to and what to ignore
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selective attention
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Selective attention: allocation of effort influence by physical issues
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-Sensory Thresholds
-Short-term memory limits -Physical arrouasl |
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Types of sensory thresholds
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-Absolute threshold
-Differential threshold -Adapation |
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Where is that range that you can perceive. the bare minimum stimuli needed to actually perceive it.
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Absolute threshold
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JND: just noticable difference. Incremental amount in stimuli needed in order for you to notice a change
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Differential threshold
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Weber's law
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once we know what the JND is, it is a constant, we always know that percentage
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process of becoming desensitized to sensual stimuli. Over time if a stimulus doesn't chjange, we adapt, or orient to it and notice it less
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Adapation
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working/processing/intentional memory. when you are actively considering something
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Short-term memory limits: only can actively process 5-9 things at once
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Selective attention test
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-Seeing the Gorilla (simons)
-The door study as well (replace person) (simons) |
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Change blindness
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miss large changes in the visual world. Some people notice the changes, others don't
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Allocation of effort of selective attention can be voluntary
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-Easier to pay attention when we have previous knowledge/expertise or we are motivated or desire
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Allocaiotn of effort of selective attention can be involuntary
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-Salience
-Vivideness |
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Salience
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Must pay attention to it-context dependent, depnds on situation. Very noticable
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Types of saliences
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-Intensity
-complexity -Novelty -Closure -Figure and ground -Grouping |
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Vividenss:
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context independent-person driven. Pay attention to stimuli because it is important to you.
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Types of vividness
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-Emotional interest of info
-Concrete: how real it it? -Sensory, spatial, and temporal proximity |
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Perception and miscomprehension
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-Repetitoin influences comprehension and belief
-Distraction influences comprehension and belief -Pragmatic influences influence comprehension and belief |
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Repetition of a claim increases the judged validity of the claim. More i tell you something, more you believe it
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Truth effect (repetition)
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Repeated exposure can increase liking
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Mere Exposure effect
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Pragmatic influences: May
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"Brand X MAY relieve pain"-consumers assume it's true
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Pragmatic influences: Comparison omission
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"Brand X gives you greater mileage" -Than what?
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Pragmatic influences: juxtaposition
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"Be popular! Brush with Ultra Bite" -if you brush with ultra-brite you will be popular
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Pragmatic influences: incomplete information
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"50 doctors recommend Caltrate"- 50 out of how many doctors
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Pragmatic influences: Piecemeal information
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"More head room than Mercedes, more leg room than Cadillac"-assume better across all dimensions
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Pragmatic influences: Negative questions
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"Don't you want your child not to fail?"- double negatives
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the stimuli should fall below the absolute threshold. Shouldn't be able to detect it. Had to embed because people's absolute threshold are different
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embedded subliminal
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above absolute threshold, clearly there, but we don't pay attention to them.
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Sybmolic subliminal
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How did subliminal advertising start
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In 1950s the Vickory embedded frames in the movie Picnic that would increase "eat popcorn and drink pop" stimuli. Compared to the control group, the experiemtnal group ate more popcorn and drank more pop at movie theaters. Eventually came forward and said he lied about his results.
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Wilson-Brian Keys view of subliminal advertising
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In 1970 he claimed marketers commonly use sexual images and symbol to increase arousal in the consumer, in order to pay more attention to the ad
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1979 advemt of subliminal tapes
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listen to it when you sleep, embedded in messages to 'lose weight', etc.
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1985 judist/priest case
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2 fans of a band committed suicide and parents sued producers for putting subliminal messages in the band's album.
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Incidental learning
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learning by accident, just pick it up
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Rote learning
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Rehearsed, practiced, repeated learning
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Vicarious learning
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learning through actions/observations of others
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Problem-solving learning
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have to have experience: how to drive/bike
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Classical conditioning
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pavlov's dog
-Dog food> unconditioned stimulus -Salivation> unconditoned response -Bell> conditioned stimuls) -Paired conditioned stimulus with unconditioned stimulus and eventually... -Bell would cause dog to salivate and this salivation is conditioned response |
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Backward conditioning
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unconditioned stimulus appears first, then conditioned stimuls (brand is last)
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Forward conditioning
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show conditioned stimulus first and follow it with unconditioned stimulus
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Delayed conditioning
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US and Cs at the same time
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Operant conditioning
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marketers often shape behavior through rewards
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Types of operant conditioning
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-Positive reinforcement: presences of a positive stimulus: coupons, prizes
-Negative reinforcement: absence of a negative stimulus: free shippin, reduce paperwork for rebates/warranties |
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Miller's rule
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very tough for us to think about more than 9 items at a time
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Encoding failure happens in..
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short term memory: fail to move info from short term to long term
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Retrieval failure happens in
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long term memory: info hasn't gone away, but lost 'key to filing cabinet"
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Comes with context and past experiences
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episodic memory
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do not know how we learned them, just know them
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abstract memory
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being consciously aware of using memory and prior experiences and knowledge
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explicit memory (taking a test)
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Use of knowledge, experience, and memory without being consciously away
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implicit memory (walking, tynig shoes)
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memories that we can construct based on our own experiences, and based on other experiences
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Vicarious memory
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collaborative remembering. Rely on someone else to store your memory. Been around someone a lot
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Transactional memory
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all pieces of knowledge are interconnected
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associative networks
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primacy effect (memory aids)
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info processed first tends to be remembered
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recency effect (memory aids)
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info processed last tends to be remembered
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Chunking (memory aids)
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group info in logical way
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adding contextual visuals increases memory. long term memory is context dependent, especially when the contextual cues are avialble at encoding and retrieval
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encoding specificty principal
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Seven sins of memory
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-Transience
-Absent-mindedness -Blocking -Misattribution -Suggestibiliity -Bias -Persistence |
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forgetting over time. if you don't use it you lose it
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transience
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forgetting as a result of shallow or superficial processing of info during encoding or retrieval
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absent-mindedness
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memories that we can construct based on our own experiences, and based on other experiences
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Vicarious memory
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collaborative remembering. Rely on someone else to store your memory. Been around someone a lot
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Transactional memory
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all pieces of knowledge are interconnected
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associative networks
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primacy effect (memory aids)
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info processed first tends to be remembered
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recency effect (memory aids)
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info processed last tends to be remembered
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Chunking (memory aids)
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group info in logical way
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adding contextual visuals increases memory. long term memory is context dependent, especially when the contextual cues are avialble at encoding and retrieval
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encoding specificty principal
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Seven sins of memory
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-Transience
-Absent-mindedness -Blocking -Misattribution -Suggestibiliity -Bias -Persistence |
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forgetting over time. if you don't use it you lose it
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transience
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forgetting as a result of shallow or superficial processing of info during encoding or retrieval
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absent-mindedness
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the information one is trying ot retrieve is temporaily inaccessible. the info one is trying to retrieve is tored in memory, but the search for it is not always sucessful
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blocking
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misattribution
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-source confusion: misremember where they read a fact
-feelings of familiarity: confuse it with a wide variety of possible judgments -false memories: remember events that never happened |
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misleading questions and suggestions can lead to memory distortion
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suggestibility
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previously viewed advertising can influence what is learned from current product experiences
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bias
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sometimes people can't forge tthings they want to forget
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persistence
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judgment is skewed because of dissimilar extreme reference points
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contrast effect
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judgment is skwed toward similarity because of perceived similar characteristics
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assimilation
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shifting judgement reference point by how the characteristics are presented
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Framing effect
-when info is framed in terms of gains, people wan to avoid risk -when info is framed in terms of lsoses, people are risk-seeking |
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the mental processes tha toccur without awarness of intention, but influence judgments, feelings, goals, and behaviors
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automatic information processing
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implicit memory
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using memory unsconsioucly
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the adaptive unconsciou
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mental processes become automatic through practic eand eventually subject to unconsciou control
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brief observations of another person's behaviors that provide surpisingly accurate information about the person's personality, feelings,and goals
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Thin slice theory
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Thin slices are more accurate when..
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-observations are brief
-focuses on nonverbal information -consumers have lots of practice |
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Implicit attitudes
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hold attitudes that your conscious does not
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The implicit association test
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consumers don't always speak their minds
-consumers don't always know thie rown minds -IAT is a method that demonstrates the conscious and unconscious divergence -explicity hold attitudes that conflict with implicit attitudes |
