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260 Cards in this Set

  • Front
  • Back
Two broad domains of prior knowledge
1. Knowledge Content
2. Knowledge structure
Prior knowledge used for two types of understanding:
1. Categorization
2. Comprehension
Knowledge content
the information consumers have already learned about brands, companies, product categories, stores, ads, people, how to shop, how to use products, and so on; marketers try to develop, add to, or change consumers' knowledge content and try to link their brands to knowledge consumers already have
Knowledge structure
how consumers organize knowledge; store similar things in the same category
Categorization
process of labeling or identifying an object that we perceive in our external environment based on the object's similarity to what we already know
Comprehension
process of using prior knowledge to understand more about what has been categorized
Schema
set of associations linked to a concept
Different ways associations in schemas can be described:
1. Types of associations
2. Favorability
3. Uniqueness - the extent to which they are also related to other concepts
4. Salience - how easily they come to mind
5. Abstractness
Brand image
a subset of associations that reflect what something stands for and how favorably it is viewed; only the associations that are most salient and unique
Brand personality
the way that the consumer would describe the brand if it were a person
Brand equity
value of the brand to the company; increased what brands have strong and desirable images
Three ways to create brand schemas, images, and personalities:
1. Brand extension - when a firm used the brand name of a product with a well-developed image on a product of a different category
2. Licensing - when a firm sells the rights to the brand name to another company that will use the name on its product (e.g. Jeep brand to be used on strollers, luggage, etc.)
3. Brand alliance - when two companies' brand names appear together on a single product
Consequences of brand extensions, license agreements, and alliances
1. Consumers develop an image for the new brand by transferring to it their associations and favorable feelings from the original brand's schema
2. Promoting a brand extension's attributes can focus consumers' attention on the attributes, not the brand, and make the extension seem less attractive
3. Brand extensions make make the brand schema less coherent and may dilute the brand's image
4. Consumer's associations with a brand extension make influence consumers' perceptions of the existing brand
4. Creating associations helps to position the offering so that consumers understand what it is and what it is competing against
Fit between brand extension and parent brand or family based on:
Similar attributes or benefits, usage goals, or targets
Three ways to develop or elaborate on schemas, images, and personalities:
1. Use multiple brand extensions
2. Link the product to sponsorship of an appropriate sporting event
3. Highlight additional features and benefits
When to change schemas, images, and personalities
When a brand or product image becomes tale, outdated, or linked to negative associations
Script
a special type of schema that represents our knowledge of a sequence of actions involved in performing an activity; helps you complete tasks quickly and easily
Taxonomic division
objects can be organized in ordered, hierarchically structured categories, with similar objects in the same category (e.g. diet soft drinks: diet coke and diet pepsi); things within the same taxonomic category share similar features, and the features they share are different from the features of objects in other categories
Graded structure (of taxonomic categories)
the fact that category members vary in how well they are perceived to represented a category (e.g. Coke represents "soft drink" category better than Sierra Mist)
Category prototype (of a taxonomic category)
the category member perceived to be the best example of the category; shares the most associations with other members of its own category and shares the fewest with members from different categories; encountered the most by consumers or this member is the first/"pioneer" brand of the category because it sets the standard
Marketing implications of prototypes in taxonomic categories
Prototypes are the main point of comparison used by consumers to categorize a new brand. Two methods:
1. Positioning a brand as similar to the category prototype - goal is to appeal to a broad segment of customers
2. Positioning away from the prototype - to differentiate the brand; works when the brand differs from others, when the point of difference offers a credible reason for buying, when appealing to customers with specific needs (rather than a broad segment)
Correlated associations (of taxonomic categories)
Consumers assume that associations/attributes linked to category members are correlated, even though the correlations may not be true about a specific brand (e.g. big car wastes gas); affects consumers' inferences about a new brand and the kind of communications marketers need to make to overcome potentially false inferences
the hierarchical structure of taxonomic categories:
1. superordinate level - the broadest level of categorization - objects share few associations but also have many different ones
2. Basic level - finer discriminations among these objects
3. Subordinate level - the finest level of differentiation - category members have more associations in common with each other than they do with members of the basic category
Marketing implications of understanding the hierarchical structure of taxonomic categories
1. Establishing a competitive position - gain a broad view of competitors by understanding consumers' superordinate-category structure (e.g. pizza and popcorn are competitors in the "convenient, movie snack, cheap" superordinate category)
2. Designing retail stores and sites - organizing/placing items that are consistent with the consumers' knowledge helps consumers find products efficiently (e.g. dairy section [superordinate], then milk, yogurt, cheese shelves [basic], then low-fat, nonfat, whole [subordinate]
Goal-derived categories
contains things that consumers view as similar because they serve the same goal, even though they belong to different taxonomic categories (e.g. "things that make air travel more pleasant", "things to through a party", "food to eat on a diet");
- flexible: same object can be part of a goal-derived category and part of a taxonomic category
- graded structure
- prototypes of goal-derived categories: dependent on frequency of encounters with product/brand
Construal level theory
theory that we think about a product or an action in terms of high-level, abstract construals or low-level, concrete construals:
1. High-level, abstract construals - fit into a superordinate goal-derived category (e.g. study to "further my education); don't tend to think about context; when making a decision for the future
2. Low-level, concrete construals - fit into a more subordinate goal-derived category (e.g. study to "get an A"); tend to think about context; when making a decision about right now
Two factors affecting consumers' knowledge structure and content:
1. Culture in which the consumer lives
2. Consumer's level of expertise
Ways in which culture of a consumer affects their knowledge:
1. Different associations linked to a concept
2. Different category members (e.g. "things to have for breakfast" different in US and Japan)
3. Different category prototypes - requires companies to position brands different in different culture
4. Different correlated associations
5. Different goal-derived categories
Ways in which expertise of a consumer affects their knowledge:
1. Experts' overall category structures are more developed than the category structures of non-experts
2. Have more categories and more associations
3. Understand whether associations within a category are correlated
4. Less motivated to learn about new products
5. More subordinate-level categories and can make finer distinctions
6. When exposed to a marketing message, form expectations against which they evaluate their actual experiences with and are more likely to perceive a wider discrepancy between the experience and their message-generated expectations
Categorization
when consumers use their prior knowledge to label, identify, and classify something new; affects how favorably we evaluate an offering what we compare it with, the expectations we have for it, whether we will choose it, and how satisfied we may be with it
Marketing implications of categorization
1. Inferences - if we see a product as a member of a category, we may infer that the product has features or attributes typical of that category
2. Elaboration - we tend to be more motivated to think about or process information that we have trouble categorizing
3. Evaluation - once we categorize something as a member of a category, we may simply retrieve our evaluation of the category and use it to assess the object
4. Consideration and choice - Whether and how we label an offering affects whether we will consider buying it
5. Satisfaction - if we put an offering into a category, we expect the offering to be as good as most other offerings in that category
Comprehension
the process of extracting higher-order meaning from an entity/object/offering (rather than categorization that is the process of identifying the entity)
Two aspects of comprehension
1. Objective comprehension - whether the meaning that consumers take from a message is consistent with what the message actually stated
2. Subjective comprehension - the different or additional meaning consumers attach to the message, whether or not these meanings were intended
Objective comprehension
an accurate understanding of the message a sender intended to communicate; many people miscomprehend messages due to the way the information is presented or differences between the sender's and the receiver's prior knowledge
Subjective comprehension
what we understand whether or not it is accurate; marketing mix elements such as price and advertising can play a powerful role in influencing what we think a message is saying (e.g. gum with more sparkles is perceived as more powerful even though it doesn't say so/it isn't true)
Miscomprehension
when consumers inaccurately received the meaning contained in a marketing message
Perceptual fluency
ease in perceiving and processing information
Ways to improve objective comprehension
1. Keep the message simple
2. Repeat the message
3. Present information in different forms (e.g. both visually and verbally)
4. Increase perceptual fluency
Marketing mix elements that can work with consumers' prior knowledge to affect the correct or incorrect inferences they make about an offering:
1. Brand names and symbols
2. Product features and packaging
3. Price
4. Retail atmospherics and display
5. Advertising and selling
6. Pictures
7. Language
The ways language can lead to inferences
1. Juxtaposed imperatives
2. Implied superiority
3. Incomplete comparisons - providing a comparison but leave the object or basis of comparison either incomplete or ambiguous
4. Multiple comparisons - making comparisons with multiple brands
Attitude
an overall evaluation that expresses how much we like or dislike an object, issue, person, or action; reflect our evaluation of something based on the set of associations linked to it
3 reasons why attitudes are important
1. guide our thoughts - cognitive function
2. influence our feelings - affective function
3. affect our behavior - connative function
The 6 characteristics of attitudes
1. Favorability - how much we like or dislike an attitude object
2. Accessibility - how easily and readily an attitude can be retrieved from memory
3. Confidence - how strongly we hold our attitudes
4. Persistence - how long our attitudes endure for
5. Resistance - how difficult is for out attitudes to change
6. Ambivalence - how easily someone else's opinion can influence our attitudes
Peripheral-route processing
MAO is low; attitude formation and change that involved limited effort (or low elaboration) on the part of the consumers
Central-route processing
MAO is high; the process of attitude formation and change when thinking about a message requires some effort; consumers form strong, accessible, confidently-held, persistent and resistant attitudes
When consumers are likely taking part in central-route processing, marketers can influence attitudes in 2 ways:
1. cognitively - influencing the thoughts or beliefs consumers have about an offering
2. affectively - influencing the emotional experiences consumers associate with the offering
The five cognitive models (of how thoughts are related to attitudes when consumers devotee a lot of effort to processing information and making decisions):
1. Direct or imagined experience
2. Reasoning by analogy or category
3. Values-driven attitudes
4. Social identity-based attitude generation
5. Analytical processes of attitude construction
Direct or imagined experience
Elaborating on actual experience with a product or service (or even imagining what that experience could be like) can help consumers form positive or negative attitudes
Reasoning by analogy or category
we form attitudes by considering how similar a product is to other products or to a particular product category
Values-driven attitudes
attitudes are generated or shaped based on individual values e.g. environmental protection
Social identity-based attitude generation
the way that consumers view their own social identities can play a role in forming their attitudes toward products or brands; tend to form positive attitudes toward brands that enable you to express this social identity
Cognitive response model of attitude formation
more analytical process of attitude formation in which, after being exposed to marketing stimuli or other information, consumers form attitudes based on cognitive responses (thoughts a person has when he or she is exposed to a communication, which may take the form of recognitions, evaluations, associations, images, or ideas)
According to the cognitive response model of attitude formation, consumers exert enough effort in responding to a message to generate the following:
1. Counterarguments (CAs)
2. Support arguments (SAs)
3. Source derogations (SDs)
Belief discrepancy
Consumers tend to generate more counterarguments and fewer support arguments when the message content differs from what they already believe; consumers want to maintain their existing belief structures and do so by arguing against the message
Disrupt-then-reframe technique
disrupting consumers' cognitive processing of the communication in an odd but subtle way clears the way for more effective persuasion when the message is reframed in a more pleasant manner
Expectancy-value models
analytical processes that explain how consumers form and change attitudes based on:
1. the beliefs or knowledge they have about an object or action
2. their evaluation of these particular beliefs
Theory of reasoned action (TORA) [expectancy-value model]
expanded picture of how, when, and why attitudes predict consumer behavior:
Behavior (B) is a fxn of Behavioral Intention (BI), which is a fxn of
1.) attitude toward the act (Aact), which is determined by
1a.) beliefs about the consequences of engaging in the behavior
1b.) evaluation of these consequences
2.) the subjective norms (SN), which is determined by
2a.) normative beliefs, what the consumer thinks someone else wants him or her to do
2b.) motivation to comply with normative beliefs
Theory of planned behavior
Extension of TORA; takes into account consumers perceived behavioral control to predict behaviors over which consumers have incomplete control
Marketing implications of TORA: Marketers can change attitudes, intentions, and hopefully behavior through these strategies:
1. Change beliefs: Either strengthen the beliefs that the offering has positive consequences or lessen the belief that it has negative consequences
2. Change evaluations of consequences
3. Add a new belief: that would make he consumer attitude more positive
4. Encourage attitude formation based on imagined experience: through vivid language, detailed pictures, or instructions
5. Target normative beliefs: making it known that everyone else is doing it
Both cognitive and affective foundations of attitudes are influenced by:
1. Source factors
2. Message factors
Two factors about a message source that enhance the credibility of a message (to generate more SAs, and fewer CAs and SDs)
1. Source credibility: Consumers tend to evaluate product information more thoughtfully when source credibility is low; credible sources are trustworthy, expert, and/or have high-status e.g. CEO
2. Company reputation: when marketing communications do not feature an actual person, consumers judge credibility by the reputation of the company delivering the message
Three factors about a message that enhance the credibility of a message (to generate more SAs, and fewer CAs and SDs)
1. Argument quality
2. One-versus Two-sided messages
3. Comparative messages
strong arguments (in a mktg message that makes it credible)
present the best features or central merits of an offering in a convincing manner
One-sided message vs two-sided message
One-sided message: presents only positive information

Two-sided message: contains both positive and negative information, can make a message more credible; effective when (1) consumers are initially opposed to the offering or (2) they will be exposed to strong countermessages from competitors
Comparative messages
show how much better the offering is than a competitor's;
1. Indirect comparative message: offering is compared with those of unnamed competitors, improves perceptions relative to other moderate-share brands (but not to the market leader)
2. Direct comparative advertising: explicitly name and attack a (set of) competitor(s), usually when the offering has a feature that is purportedly better than that of a competitor's
Direct comparative advertising
- when the offering has a feature that is purportedly better than that of a competitor's
- effective in generating attention and brand awareness and in positively increasing message processing, attitudes, intentions, and behavior
- low credibility
- effective for new brands or low-market-share brands
Affective involvement
When affective involvement with an object/decision is high, consumers can experience fairly strong emotional reactions to or engagement with a stimulus
Engagement
the extent to which consumers are emotionally connected to a product or ad; high level of engagement means strong feelings can influence attitudes
regulatory fit
an emotional route to persuasion; consumer's attitude toward a product depends on the fit between the consumer's goal and the strategies available to achieve that goal
Affective responses
the generation of images or feelings to a message; when consumers are emotionally involved in a message, they tend to process it on a general level rather than analytically; generally more influential than cognitive responses in shaping consumers' attitudes
Emotional appeals
influence consumers' attitudes by using appeals that elicit emotions such as love, desire, joy, hope, excitement, daring, fear, anger, shame, rejection, disgust:
- present situations that express positive emotions with the hope that consumers will experience these emotions
- may limit the amt of product-related information consumers can process
- more effective when the emotional arousal relates to product consumption or usage
- more effective when product has been on market for some time
Match-up hypothesis
the source should match the offering e.g. in the case of an attractive model in an luxury automobile ad, or an expert like Shaun White for snowboarding clothing; if it doesn't match could just distract the consumer
Fear appeals
elicit fear or anxiety by stressing the negative consequences of either engaging or not engaging in a particular behavior; effective when:
- suggests an immediate action will reduce the consumer's fear
- level of fear is moderate
- source is credible
- lower level of involvement
Terror management theory (TMT)
theory that we develop a worldview of values and beliefs to cope with the terror of knowing that we will die someday, despite our innate impulse toward self-preservation; may use this to counter fear appeals
Three major factors that lead to a positive attitude toward an ad (Aad) in the context of high-effort processing
1. Utilitarian (functional) Dimension: More informative ads tend to be better liked and lead to a positive influence on brand attitudes
2. Hedonic dimension: consumers can like an ad if it creates positive feelings or emotions, which can transfer to the brand
3. Consumers can like an ad because it is interesting, arouses curiosity and attracts attention
Additional factors that affect the attitude-behavior relationship (TORA model is incomplete in saying how intention translates into actual behavior)
1. Level of involvement/elaboration: cognitive and affective involvement is high, consumers elaborate
2. Knowledge and experience: when consumer is knowledgeable about or experienced with the object of the attitude, attitude tied more strongly with behavior
3. Analysis of reasons: asking consumers to analyze their reasons for brand preference increases the link between attitude and behavior
4. Accessibility of attitudes: when attitudes are accessible/"top-of-mind", they are more tied with behavior
5. Attitude confidence: more confident, attitude more likely predicts behavior
6. Specificity of attitudes: when we are specific about the behavior that attitudes are trying to predict
7. Attitude-behavior relationship over time: when consumers are exposed to an advertising message more frequently and are reminded of their attitudes, their attitudes become more confident, making it more likely to predict behavior
8. Emotional attachment: the more emotionally attached consumers are to a brand, the more likely they are to purchase it repeatedly over time
9. Situational factors: intervening situational factors can prevent a behavior from being performed, weakening the attitude-behavior relationship
10. Normative factors: affect the strength of the attitude-behavior relationship
11. Personality variables: certain personality types are more likely to exhibit stronger attitude-behavior relationships than others, whether they are low self-monitors (consistent attitude-behavior relationships) or high self-monitors (guided by the views and behaviors of others)
low-effort situation
when consumers are either unwilling or unable to exert a lot of effort or devote many emotional resources to processing the central idea behind a marketing communication
Peripheral route to persuasion
when consumers' attitudes are based not on a detailed consideration of the message or their ability to relate to the brand empathetically but on other easily processed aspects of the message, such as the source or visuals (peripheral cues)
Two unconscious influences on attitudes in low-effort attitude formation and change
1. Thin-slice judgments
2. Body feedback
Thin-slice judgments
assessments consumers make after brief observations despite receiving minimal information input, not doing so at a conscious level; may affect consumer's decision to buy/satisfaction with the sale
Body feedback
a person's physical reactions, body movements, can influence attitudes and behavior in some circumstances (i.e. if you're nodding while reading something, you're more likely to evaluate something positively)
Consumer behavior
The totality of consumer's decision with respect to the acquisition, consumption, and disposition of goods, services, time and ideas by decision-making units over time
Change in marketing
1. Seller's Market: product-focused, R&D, marketing
2. Buyer's Market: customer-focused, consumer has power, competitors
3. Connected community: focus deeper on customer experiential value
4. Economic uncertainty: people don't trust each other (Madoff), focus on genuine customer value
Seller's market
- Product-focused
- Profit
- Build volume to create economies of scale
- Revenues increase and production costs decrease
- Gain market share
- Sell to whoever will buy
Buyer's market
- Customer-focused
- Not aiming to market share or volume, targeting specific customers, not all
- Key is differentiation
- Customer share > market share
- Premium price
- loyal customers
- cross-selling increases revenues
ZMET
Zaltman Metaphor Elicitation Technique - research process dedicated to understanding people at deep, emotionally rich levels; below the easily observable service level
Basic Premises of ZMET
1. Most communication is non-verbal; and nonverbal cues tend to be believed over verbal ones
2. Thoughts occur as images
3. Metaphors as essential units of thought
4. Sensory images as metaphors
5. Mental models as representations of stories - people talk in stories; what they're feeling can be understood through the stories they tell
6. Deep structures of thought can be accessed (hidden thoughts)
7. The comingling of reason and emotion
The 3 Layers of Metaphor
1. Surface (spoken) metaphors
2. Metaphor theme
3. Deep metaphors (is unconscious)
Surface metaphors
metaphors used in everyday language, tip of the iceberg
Metaphor theme
metaphors that reside below the surface, but are not completely buried in the unconscious
Deep metaphors
Metaphors that reside in the unconscious; relatively few, powerful in our unconscious minds, universal
7 Basic deep metaphors identified by ZMET techniques
1. Balance
2. Transformation
3. Journey
4. Container
5. Connection
6. Resource
7. Control
Balance deep metaphor
- equilibrium, people want to be in balance (socially, emotionally, etc)
- Products will try to show you that it helps you achieve balance
Transformation deep metaphor
new + improved, butterflies often used metaphorically
e.g children's hospital, Pantene commercial
Journey deep metaphor
e.g. Financial services - "a life journey to retirement";
Jewelry to be passed on to the next generation (a reason to charge a premium price)
Container deep metaphor
Protect us, keep things in and out, body and mind are containers, sometimes good, sometimes bad
e.g. coke bottle exploding with excitement
Connection deep metaphor
connecting with others
e.g. Budweiser- own this metaphor; wassup commercials
Resource deep metaphor
Need it to survive, family, friends, money, something will take care of you
Control deep metaphor
basic need, people always want to feel in control
3 factors for causation:
1. Correlation
2. Temporal antecedence
3. No third factor driving both
Spurious correlation
correlation w/o causation
"strategic" metaphor (or set of metaphors)
captures the core (deep) meaning of the marketing strategy.

If appropriate can:
1. Direct consumers' understanding
2. do so without the consumers' mind being aware of the influence
Causal research
Very specific hypotheses about causality. Requirements to establish causality:
1. cause has to precede the effect
2. control/manipulate the cause (independent variable) and hold "everything else" constant
3. Random assignment -- makes experimental groups statistically equivalent
"strategic" metaphor (or set of metaphors)
captures the core (deep) meaning of the marketing strategy.

If appropriate can:
1. Direct consumers' understanding
2. do so without the consumers' mind being aware of the influence
The Psychological Core (within the overall framework of consumer behavior)
1. Motivation, Ability, and Opportunity
2. Exposure, Attention, and Perception
3. Knowing and Understanding
4. Attitude Formation and Change
5. Memory and Retrieval
Consumer behavior framework
(2) The psychological core, influenced by the (1) consumers' culture. Psychological core leads to a (3) Process of Making Decisions and finally (4) Consumer Behavior outcomes
Causal research
Very specific hypotheses about causality. Requirements to establish causality:
1. cause has to precede the effect
2. control/manipulate the cause (independent variable) and hold "everything else" constant
3. Random assignment -- makes experimental groups statistically equivalent
System I
Automatic processes
The Psychological Core (within the overall framework of consumer behavior)
1. Motivation, Ability, and Opportunity
2. Exposure, Attention, and Perception
3. Knowing and Understanding
4. Attitude Formation and Change
5. Memory and Retrieval
Consumer behavior framework
(2) The psychological core, influenced by the (1) consumers' culture. Psychological core leads to a (3) Process of Making Decisions and finally (4) Consumer Behavior outcomes
System I
Automatic processes
System II
Controlled processes, require more cognitive resources
Factors that affect motivation
- Type of need: what gap between actual and desired state generates the arousal
- Personal relevance or involvement
- Characteristics of goal state: Automatic vs conscious, conflicting goals, self-control vs desire
- Ability
- Opportunity
- Consumers cannot always identify their goals
Maslow's hierarchy of needs (utilitarian, hedonic, social)
1. Self-actualization
2. Esteem
3. Social
4. Safety
5. Physiological
4 basic needs
1. Belonging
2. Control
3. Esteem
4. Meaningfulness/Fear of death
Automatic activation of goals
Alternative model of goal pursuit; instead of the idea that ppl choose their goals and subsequent goal-driven behavior, people may change their behavior because of automatically-activated goals (e.g. acting differently to impress someone)
3 types of Conflicting goals (they influence motivation)
1. Approach-approach: 2 goals that are both positive, must pick one to pursue
2. Avoidance-Avoidance: 2 negative things, must choose 1
3. Approach-Avoidance (= self-control): one good choice, one bad choice, the 2 choices appeal to two different goals
Self-control vs desire
self-control vs impulsivity; effective self-control is like a muscle
Ways to increase processing OPPORTUNITY (maO)?
- Time
- Availability
- Repetition
- Distraction
Ways to enhance processing ABILITY (mAo)?
- Knowledge
- Experience
- Education
- Resources
Laddering
tool developed for measuring the relationships among features, benefits, and need; results in a hierarchical value map that shows how attributes of a product map up to terminal values (i.e. the need for self-esteem);

physical attributes --> consequences of these attributes --> the value-driven effect these attributes have on the consumer

e.g. hair spray - pump dispenser (concrete attribute) - light mist (abstract attribute) - hair not tacky (functional consequence) - feel more attractive (psycho-social consequence) - impress others (instrumental value) - self-esteem (terminal value)
Motivation
an inner state of arousal that provides energy needed to achieve a goal
Motivated reasoning
when consumers process information in a way that allows them to reach the conclusion that they want to reach; process information in a biased way
2 effects of motivation
1. high-effort behavior
2. high-effort information processing and decision making
Felt involvement
self-reported arousal or interest in an offering, activity or decision
Different types of felt involvement
1. Enduring involvement
2. Situational (temporary) involvement
3. Cognitive involvement
4. Affective involvement
Enduring involvement
long-term interest in an offering, activity, or decision

e.g. car enthusiast
Situational (temporary) involvement
temporary interest in an offering, activity, or decision, often caused by situational

e.g. buying a car
cognitive involvement
interest in thinking about and learning information pertinent to an offering
Affective involvement
interest in expending emotional energy and evoking deep feelings about an offering
Response involvement
when consumers are involved in certain decisions or behaviors (e.g. when choosing different brands)
Personal relevance
something that has a direct bearing on the self and has potentially significant consequences or implications on our lives; affected by how relevant something is to ones:
1. self-concepts
2. values
3. needs
4. goals
Social needs
externally directed or related to other individuals
Antisocial needs
needs for space and psychological distance from other people
Nonsocial needs
needs for which achievement is not based on other people (e.g. sleep, novelty, control, uniqueness)
Functional needs (social or nonsocial)
needs that motivate the search for offerings that solve consumption-related problems
Symbolic needs
needs that relate to how we perceive ourselves, how we are perceived by others, how we relate to others, and the esteem in which we are held by others (e.g. achievement, independence, self-control, uniqueness, status)
Hedonic needs
needs that relate to sensory pleasure (e.g. sensory stimulation, cognitive stimulation, novelty [nonsocial, hedonic needs]; needs for reinforcement, sex, play [social hedonic needs])
Concrete goals
specific to a given behavior or action and determined by situation at hand (e.g. be timely, go to bed early)
Abstract goals
over a long period of time; (e.g. being a good student, looking beautiful)
Promotion-focused goal
consumers motivated to act in ways to achieve positive outcomes
Prevention-focused goal
consumers motivated to act in ways to achieve positive outcomes
Appraisal theory
theory of emotion that proposes that emotions are based on an individual's assessment of a situation or an outcome and its relevance to his or her goals
e.g. we feel positive emotions when an outcome is consistent with our goals
Marketing implications of the factors that affect motivation:
1. segment consumers based on needs and goals
2. create new needs and goals
3. develop need- and goal- satisfying offerings
4. manage conflicting needs or goals
5. appeal to multiple goals and needs
6. Enhance communication effectiveness
7. appeal to goals
8. manage consumers' emotions
Perceived risk
the extent to which the consumer is uncertain about the consequences of an action e.g. buying, using, disposing of an offering;
if perceived risk is high, consumers will likely be more involved
Types of perceived risk
1. performance risk
2. financial risk
3. physical (or safety) risk
4. Social risk
5. psychological risk
6. time risk
Ability
the extent to which consumers have the resources needed to make an outcome happen
Exposure
the process by which the consumer comes into physical contact with a stimulus
Marketing stimuli
messages and information about products or brands and other offerings communicated by either the marketer (via ads, salespeople, brand symbols, packages, signs, prices, and so on) or by nommarketing sources (e.g. media, word of mouth)
Factors that influence exposure
1. position of an ad within a medium
2. product distribution
3. shelf placement
Selective exposure
consumers can actively seek certain stimuli and avoid others (e.g. zipping and zapping)

zipping - recording TV shows and fast-fowarding through commercials when watching shows later

zapping - consumers avoid ads by switching to other channels during commercial breaks
Attention
reflect how much mental activity they devote to a stimulus
Characteristics of attention
1. Selective - we decide what we want to focus on at any time
2. Divisible - we can parcel our attentional resources and allocate to some tasks and some to another
3. Limited - though attention is divisible, can only attend to a limited number of things at one time
4. Two types of attention: voluntary (controlled) and involuntary (automatic)
Preattentive processing
when we process information from our peripheral vision even if we are not aware that we are doing so
Hemispheric lateralization
Right side of the brain is better for processing music, pictures, spatial information. Left side of brain better for processing numbers, forming sentences, words. Stimuli placed to left of visual field processed by right hemisphere and vice versa.
4 characteristics that make stimuli easy to process:
1. Prominence: stand out relative to environment because of intensity
2. Concreteness: the extent to which we can imagine stimulus
3. Contrasting
4. Amount of competing information is small
habituation
when stimulus becomes familiar, it can lose its attention-getting ability, you become so accustomed to it that you no longer pay attention to it --> marketers sohuld alter stimulus every so often
Behavior is a function of:
PERSON and SITUATION
Perception
the process of developing an interpretation of a stimulus, or in other words, deciding what a stimulus means; most crucial process in consumer behavior because:
1. what customers perceive is what affects their actions
2. what is perceived is not necessarily what is "true"
Perception is constructive
people construct interpretations on the fly;
Affected by:
- people and their situations
- what you're exposed to and pay attention to
- how you interpret it
- prior expectations (cognitive)
- what we know (perceptual interpretation)
- motivational desires (e.g. food tastes better when you're hungry)
Lanham Trademark Act of 1946
Violation of trade dress - a product may not copmete by presenting itself substantially simliar to that of a competitor when it is confusing to the public
Congruent vs incongruent smells
If a smell is congruent with what you're purchasing, makes you more inclined to purchase it. If smell is incongruent with what you're purchasing, it's mildly stressful
Butterfly curve (adaptation)
at the adaptation level, consumer preference for stimulus declines because the person has become habituated to the stimulus; preference for a stimulus is greatest at points just higher or lower than the adaptation level
Just noticeable difference (JND) threshold = Differential threshold
the minimum amount of difference in the intensity of a stimulus that can be detected 50% of the time
Weber's Law
as the intensity of the stimulus increases, the ability of a person to detect a difference between the two levels of stimulus decreases; the absolute amount of a difference is not significant, but the percentage the difference is of the original is important; the price differential that is needed for the consumer to pay attention is about 20%

K = [delta]I/I
Absolute threshold
the lowest level at which a stimulus can be detected 50% of the time; minimum amt of stimulus that can be detected; below absolute threshold you don't detect it
Two types of attention:
1. Voluntary - you actively pay attention to something; tricky to marketers because it tends to be very biased
2. Involuntary - i.e. loud noise
Methods of grabbing attention
1. contrast (of size, color, position)
2. Distinctiveness or novelty
3. Easy to process
4. make it relevant
5. puzzles, games
6. need for closure: tendency to organize stimuli into a meaningful form (Zeigarnik effect - waiters and orders and closing a check)
Perceptual fluency
stimuli are easier to process (more fluent) if they have been processed before; greater ease of processing leads to greater liking
Priming
perception is often automatic and involuntary and triggers action tendencies without conscious and intentional control; gets you to pay attention to something without you being aware of it; non-conscious primes:
- subliminal: prime not accessible to person's awareness)
- supraliminal: person is aware of the prime but not of the potential influence
Subliminal perception
below absolute threshold; no evidence of significant meaningful effects
People's interpretation of a stimulus is affected by:

[perception is constructed]
- actual stimulus or event
- hard-wired aspect of our brain
- goals
- needs
- individual differences
- prior knowledge
- expectations
Perceptual set
priming, experiences, and assumptions, framing influence perception
Sonic identity
using sounds such as music or a particular voice to support a brand's image
sonic symoblism
consumers infer product attributes and form evaluations using information gleaned from hearing a brand's sounds, syllables, or words
Absolute threshold
minimum level of stimulus intensity needed for a stimulus to be perceived; the amt of intensity for a person to detect a difference between something and nothing
Differential threshold = just noticeable difference threshold (JND)
the intensity difference needed between two stimuli before people can perceive that the stimuli are different, while absolute threshold deals with whether or not a stimulus can be perceived
Weber's law
states that the stronger the initial stimulus the greater the additional intensity needed for the second stimulus to be perceived as different;

K = [delta]s/S
K: constant of proportionality
[delta]s: smallest change in a stimulus capable of being detected
S: initial stimulus value
Four basic principles related to perceptual organization:
1. Figure and ground: people interpret incoming stimuli in constrast to the background
2. Closure: individuals have a need to organize perceptions so that they form a meaningful wohle
3. Grouping: we often group stimuli to form a unified picture or impression, making it easier to process them
4. bias for the whole: people perceive more value in the whole of something than in two or more parts that are equivalent to the whole
sensory memory
information that comes in through senses; info stored in its sensory form; short-lived, if not processed, we lose it;
echoic memory - memory through hearing
iconic memory - memory through seeing
Short-term (working) memory
currently activated portion of memory; limited capacity; can only hold things in short-term or working memory for a short time; where we hold things we want to 'keep in mind'
3 reasons why it's important for marketers to understand memory:
1. Perceptions: you perceive things through a lens of what you already know AKA your memory
2. Memory affects decision-making
3. Effectiveness of marketing actions: memory is a good metric for measuring marketing effectiveness
Sleeper effect
don't remember the source of what you remember; over time this memory changes if you're not reminded of what you remembered
Long-term memory
Very large storage capacity, seemingly infinite; permanent memories
Three stages of memory:
1. Sensory memory
2. Working memory
3. Long-term Memory
Why do we forget?
- Encoding failure
- Retrieval failure
- Decay of links
- Interference
Working memory
component of long term memory; used to be known as short-term memory; relates active information with information from long-term memory; the activated part of long-term memory
3 ways that long-term memory is organized
1. Episodic
2. Semantic
3. Procedural
Episodic LT memory
memories of specifics in one's life and is what most people think of as memory; tends to be emotional; remember as a fxn of your life experiences

--> emotional, autobiograpical marketing
Semantic LT memory
cognitively-based; our general knowledge of the world and all of the facts we know
Semantic Memory: associative network model
Semantic memory depends on the associations that link concepts in memory; a node in memory and its associated links = the semantic/associative network; some links are strong, others are weak; consumer information can be stored in memory nodes of semantic network; brand associations
Procedural LT memory
the skills that humans possess (e.g. typing, shoelaces, riding a bike, swimming)
Recall
with no cues at all, come up with answer; high 'top-of-mind' awareness; reconstruct memory with no cues
Cued recall
Reconstruct memory with cues
Recognition
Identify stimulus we have seen before; can't recall, but recognize

Important when consumers hasn't decided what to purchase yet @ point-of-purchase, recognition could be enough
Tactics that make things easier to remember:
- Categorization: giving things context
- Chunking
- Rehearsal
- Recirculation
- Elaboration
Serial position effect
people remember things as a function of its place in a sequence; remembering information at the beginning and end of a list is easier than the stuff in the middle

primary - at the beginning
recency - at the end

If you're going to do something right after seeing a sequence - primacy drives the effect

If asked a week later - recency drives the effect

--> marketers shouldn't make the last thing remembered to be negative
Ways that marketers can enhance retrieval
1. Favorability: pleasant things are more easily recalled
2. Salience: more salient things get more attention, and therefore are more likely to be remembered
3. Prototypicality: prototypes tend to be remembered first
4. Congruence: a lot of congruent cues that reinforce the message are more likely to be remembered
5. Interruption: anything that is interrupted before it's finished gets attention, and makes the interruption more memorable
6. Redundancies: anything that requires more rehearsal and elaboration makes people remember better
7. Deeper processing
Theories of forgetting
1. Decay theory
2. Motivated forgetting
3. Encoding failure
4. Retrieval failure
5. Interference
Decay theory of forgetting
memory trace fades with time
Motivated forgetting theory
involves the loss of painful memories
Encoding failure theory of forgetting
may contribute to information never being encoded from ST memory to LT memory and thus forgotten
Retrieval failure theory of forgetting
the information is still within LT memory, but cannot be recalled because the retrieval cue is absent
Interference theory of forgetting
1. Retroactive: new learning interferes with old knowledge
2. Proactive: what you already know interferes with your new knowledge
Categorization
the file cabinets of LT memory; items are categorized based on perceived similarity and association along the lines of:
1. features possessed
2. benefits delivered
3. situational appropriateness
Importance of schemas
peoples' understanding and remembrance of events is shaped by their expectations or prior knowledge, and that these expectations are represented mentally in some sort of schematic fashion
Category-based schemas
we expect members of a particular category to be similar; violating expectations promotes elaboration or it can lead people to ignore info
Goal-driven categorization
categories formed based on goals;
e.g. foods to eat on a diet, things to do on a friday night
Different types of brand extensions
1. same product in a different form
2. products that contain distinctive taste, ingredients, or components
3. companion products
4. products relevant to customer franchise (i.e. Visa Traveler's Checks)
5. Products that capitalize expertise
6. Products that reflect distinctive benefit
7. Products that capitalize on distinctive image or prestige
attitudes
mental positions representing learned pre-dispositions to respond to objects or classes of objects in a consistently favorable or unfavorable way; a lasting, general evaluation of people (including oneself), objects, advertisements, or issues
Reasons for having attitudes
1. Utilitarian function: they direct you towards pleasure and away from pain
2. Self-expression: they allow you to express yourself or how you'd like to be
3. Knowledge function: they allow you to organize the world, create structure, and consistency
Implicit vs explicit attitudes
Implicit - exist outside of consciousness, more spontaneous and difficult to control, may be unwilling or unable to reveal these attitudes

explicit - reflect conscious beliefs, values and desired responses
Implicit association
unconscious, automatic, a mental response that is so well-learned as to operate without awareness or without intention, or without control
the IAT Effect/Lipitor Preference
ease of giving the same response to exemplars of two concepts measures the association between the two concepts

e.g. identifying "good" and "old" took more time to respond to than "good" and "young" --> "good" and "young" are more associated with each other
Explicit attitude measurement
Components:
Beliefs - how product delivers on benefits
Weights - value of those benefits

Attitude = (Belief1*Weight1) + (Belief2*Weight2) + ...
Marketing implications of explicit attitude measurement results:
- Change the attribute that people think is most important, or make them think positively about the attribute that is measured as more important
- Make them think that one attribute is more important that has a higher rating of quality
- Add a new attribute
- Influence perceptions of references groups' rxn to behavior, to make social groups change their logic will have a domino effect on individuals
- Influence perceptions of consequences of behavior (e.g. tie mouthwash to the liklihood of getting a good job)
Volitional control vs perceived behavioral control
Volitional: the degree to which a behavior can be performed at will

Perceived behavioral control: a person's belief about how easy it would be to perform the behavior
Theory of planned behavior
adding to TORA not only what other people think (subjective norms), but also the degree to which you will translate behavioral intentions into actual behavior = self-efficacy
Ways to change attitudes through learning:
1. Information (as in school)
2. Mere exposure/mere measurement
3. Classical conditioning
4. Operant conditioning
5. Cognitive dissonance theory
6. Self-perception theory
Mere measurement
merely asking the consumer about something influences their attitudes; asking is somewhat like priming; our cognitive defenses are normally down when we respond to what appears to be an innocuous question
Learning
a relatively permanent change in an organism's behavior due to experience
Classical conditioning (Ivan Pavlov)
Unconditioned stimulus (i.e dog food) --> unconditioned response (salivating)
Conditioned stimulus - does not automatically elicit an involuntary response by itself (bell)

By repeatedly pairing the conditioned stimulus with the unconditioned stimulus, the involuntary unconditioned stimulus was created. Eventually, just the conditioned stimulus was enough to elicit the unconditioned response, now known as the conditioned response.
Operant/instrumental conditioning
view behavior as a fxn of previous actions and of the reinforcements or punishments obtained from these actions

stimulus --> response --> + or - reinforcer --> change in response tendency (+/-)

e.g. perfume --> wear --> criticism for it --> reduce tendency to wear
Three consistency theories
1. Heider's balance theory
2. Cognitive dissonance
3. Self-perception theory
Heider's balance theory
people will modify some beliefs to make them balanced or congruent with the rest of his or her beliefs
Cognitive dissonance theory
people will change attitudes to resolve dissonance
Self-perception theory
people observe their behavior and infer the corresponding attitude from the behavior
Two routes to persuasion
1. Systematic (central) processing
2. Superficial (peripheral) processing
Peripheral cues
1. Classical conditioning
2. Reciprocity
3. Consistency
4. Social proof
5. Liking
6. Authority
7. Scarcity
8. Heuristic processing
Heuristic processing:
1. Attractiveness heuristic
2. Familiarity heuristic
3. expertise heuristic - listening to what they said just bc they're an expert
4. Message length heuristic
5. Feelings as cues to attitudes towards a product/brand
4.
Four stages systematic (central) processing
1. Attention to message
2. Comprehension of message
3. Elaboration & Reaction
4. Acceptation/Rejection of message
Simple inferences
inferences made based on simple associations
e.g. champagne must be elegant because it's pictured in a wedding; inferred beliefs may come from consumers' superficial analysis of the product's brand name, country of origin, price, or color
Heuristics
simple rules of thumb that are easy to evoke and require little thought
Frequency heuristic
consumers form a belief based on the number of supporting arguments
Truth effect
consumers are likely to have stronger beliefs about a product when they hear the same message repeatedly
In designing communications that overcome the hurdles of the outside influences of consumers' beliefs, marketers must consider 3 major characteristics of a communication:
1. the source
2. the message
3. the context in which the message is delivered
Self-referencing
relating the message to their own experience or self-image
incidental learning
effortless learning which results in increased recall due to constant repetition
Mere exposure effect
tend to prefer familiar objects to unfamiliar ones; peripheral cue
Peripheral cues for low-effort affective (emotional) processing
1. mere exposure effect
2. classical conditioning
3. attitude toward the ad
4. consumer mood `
Three major categories of affective responses:
1. SEVA (Surgency, Elation, Vigor, and Activation) - put consumer in upbeat or happy mood
2. Deactivation feelings - soothing, relaxing, quiet, pleasant responses
3. Social affection - warmth, tenderness and caring
4 key implications ST memory can have for marketers
1. Imagery processing can affect product liking and choice
2. Imagery can stimulate memories of past experiences
3. Imagery can affect how much information we can process
4. Imagery may affect how satisfied we are with a product or consumption experience
2 factors about the semantic network that affect what we remember:
1. Trace strength: strength of links and associations; the stronger the link that connects information to the category, the more accessible the information is and the easier it is to retrieve from memory; recirculation
2. Spreading of activation: if a link is strong, the activation of one association leads to another and another; explains why we sometimes have seemingly random thoughts as the activation spreads from one semantic network to another
Primed concept
a concept that has been activated but not enough to make it retrievable from memory
Two types of retrieval
1. Explicit memory: Recall vs recognition
2. Implicit memory: remember things without conscious awareness
Dual coding
remembering things using imagery; provides extra associative links in memory, thereby enhancing the likelihood that the item will be retrieved
4 major types of information that is recalled from internal search
1. brands
2. attributes
3. evaluations
4. experiences
Factors that will increase the possibility of consumers recalling a particular brand during internal search:
1. Prototypicality
2. Brand familiarity
3. Goals and usage situations - if they relate to a consumers' goal-driven categories
4. Brand preference
5. Retrieval cues - if a brand is associated with a retrieval cue, more likely to be included in consideration set
Factors that influence the recall of attributes during internal information search:
1. Accessibility or availability
2. Diagnosticity
3. Salience
4. Must have attribute determinance - the information is both salient and diagnostic
5. Vividness - concrete words, pictures, instructions
6. Goals
Diagnostic information
helps us distinguish objects from one another; information that varies across all product (i.e. price...but not diagnostic if all prices are the same); negative information tends to be more diagnostic than positive/neutral information because the former is more distinctive
Online processing
happens when evaluations are more likely to be recalled by consumers who are actively evaluating the brand when they are exposed to relevant information

e.g. if you're ready to buy a new comp and see an ad for a particular brand, you will likely recall whether or not you liked it
Three processing biases that affect our internal search
1. Confirmation bias - tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them
2. Inhibition - all variables that influence the recall of certain attributes (accessibility, vividness, salience) can actually lead to the inhibition of recall for other diagnostic attributes
3. Mood - consumers engaged in internal search are more likely to recall information, feelings, and experiences that match their mood
External information search
search of outside sources;
1. Prepurchase search: occurs in response to the activation of problem recognition
2. Ongoing search: occurs on a regular and continual basis, even when problem recognition has not been activated
5 key aspects of the external search process
1. source of information
2. the extent of external search
3. the content of the external search
4. search typologies
5. the process or order of the search
5 major categories of external sources for external search process:
1. retailer search
2. Media search
3. interpersonal search (advice from friends, neighbors, family)
4. independent search (independent sources of info - books, non-brand-sponsored sites)
5. experiential search (product samples, trials)
6 factors that increase motivation for external search
1. Involvement and perceived risk
2. Perceived costs and benefits
3. Consideration set - if consideration set contains number of attractive alternatives, will want to do external search to select the best
4. Relative brand uncertainty - uncertain about what brand is best, more research
5. Attitudes toward search
6. Discrepancy of information - if bit of knowledge doesn't fit into a category, will spend time to solve the incongruity
3 variables that affect the extent of external search (ability)
1. Consumer knowledge
2. Cognitive abilities
3. Demographic factors
4 factors that affect the opportunity for external search:
1. amt of info available
2. information format
3. time availiability
4. number of items being chosen
Types of information acquired in external search:
1. Brand name
2. Price
3. Other attributes - dependent on which are most salient and diagnostic, most goal-related
Two major types of external search processes:
1. Searching by brand
2. Searching by attribute