TEST TWO Review
Consumer Behavior - Internal Factors
Physical Data/Stimuli: ads, packaging, youtube videos, price tags, display, news story
● Stumptown Coffee switched packaging to be more colorful, more reflective of who they are, cans of Stumptown coffee
● La Colombe Coffee served in a old fashioned soda bottle, narrower taller cans now, ny vs philly coffee shops-- toher physical stimuli within same brand structure-- philly= more rustic, modern, warehouse esque We also discuss several other topics like How do viral rna binding proteins regulate function in rna replication?
Sensation: taste, smell, hear, touch
● Bleecker Street Pizza- smell the pizza, smells great, sense signage, hear people inside, hear people talk about how good the pizza is
Organization: identify, classify, categorize; match stimuli you sense with similar object categories in memory
● Garrett's popcorn “chicago mix” vs G.H. Cretors “chicago mix,” new chocolate strawberry popcorn flavor
● Portillos-- brain categorizes the hotdog, cheese, fries, italian beef ● Stick shift vs brake light images-- difficult to distinguish what car, jeep commercial-- car is a jeep, “Jeep Jurassic”
Interpretation: attach meaning, value; good/bad, better/worse, different/same ● Jeep sport vs sahara vs rubicon We also discuss several other topics like What is the preliminary hearing?
○ sahara = more intuned with refined, luxurious brand
○ rubicon= it will go anywhere, heavy duty, rugged, off roading
● Beatles vs The Who vs Rolling Stones
● Post WW2 “famous kiss,” Kay Jewelers every KISS begins with Kay, unHATE kiss campaign
● Steak ‘n Shake double cheeseburger with french fries vs Culver’s vs Five Guys vs Freddy’s (insane growth) vs McDonald’s Big Mac Trio
Factors affecting Perceptual Process: Stimulus, Context, Customer
Stimulus: nature of info you get from the environment
● Image of three guys receiving awards-- award for Redfrog event production co, camplike office, coordinate events
○ Firefly music festival, warrior dash
● Image of guy with an eye patch-- famous glass blower, artist
Context: setting in which information received
● Katz’s Deli, Pastrami sandwich on rye, hussle bussle
experience (NY) VS Mile End Deli pastrami sandwich-- different look, completely different brand experience based on the setting of given information VS Harry & Ida’s dill cucumber pastrami Don't forget about the age old question of When was the johnnie walker black label 'jane walker edition' debuts?
● Pearl Oyster Bar-- famous for their lobster rolls,
busy/active/boisterous at the BAR VS sit down TABLE
experience VS pearl oyster bar in NOLA, one in grand central station-- all 3 places have oysters, based on context the
experience is different
● New Apple location downtown-- big open glass aesthetic, different experience than best buy where you can buy the same thing, Apple in San Francisco goes outside
Customer: “baggage” affects what we see, how we see, and what we expect to see
● Newcastle-- british beer brand-- made a “new independence day july 3rd” how would the world be if britain won the war, “if we won” campaign
Biases in Perceptual Process: We also discuss several other topics like What is the purpose of the james bay project?
➔ Exposure: i.e. Chicago Tribune
➔ Attention: You choose to attend to some stimuli and not others
➔ Comprehension: interpret info your own way based on background and FOE
➢ How you understand it varies
➢ Demo vs Rep perceive the world differently
➢ Carlsberg beer campaign-- biker men in a movie theatre
➔ Retention: do you understand it, do you retain it
Learning –classical, instrumental/operant, social cognition, modeling
Cognitive: reasoning, abstract thinking, decision making, problem solving; watch, read, or experience stimuli
Classical conditioning: “association: between stimuli results in learned response If you want to learn more check out What are the internal factors affecting consumer behaviour?
➢ Clydesdales-- Budweiser
➢ Gecko-- Geico
Instrumental (operant) conditioning: respond/behave in certain ways because of consequences
➢ Tesla-- ordered, long wait, not immediately satisfied
➢ BMW-- reward of getting a car NOW, bashing TESLA for long wait, “the car you have been waiting for without the wait”
➢ Cheerios-- good for cholesterol
➢ Rushing-- what am i supposed to be learning, how to behave ➢ *look for cues* to peers, classes, other students
➢ Mike Small-- UIUC golf coach; coaches- go to for advice etc ➢ Teachers-- listen more intently for advice, “teachers being real” Clearasil campaign
Simplification: simplify consumer decisions past experience helps routine
➢ Persil- pro clean detergent, routine-- use the same one ➢ Zorba’s- groovy tuesdays If you want to learn more check out What did elizabeth loftus discover?
➢ Cellphones-- “with one push of a button” “rule yourself”
Complication: new decisions
Boredom: need a little variety every now and then
➢ Italy, giolitti- new flavors, try bc you’re there,want a new experience
➢ Change hairstyles-- everyday, events (halloween, wedding,etc) ➢ Campbells, different soups
Maturation: people get older, change, evolve as consumers ➢ sources- life status, rising expectations, self concept
Life status: change happens
● Location, family, resources, career
● Location- moving to UIUC, black burger king burgers, beer at McDonalds
● Family- getting married, having kids, soccer team mom to include hall mates etc
● Resources- buy a house
● Career- engineering-- need protective gear, not thinking about that right now; lawyers-- suits, briefcase NOT hello kitty
Rising expectations: might choose ramen instant noodles OR pf changs OR Nobu
Forced Irrelevance: option no longer available
● Legends was a bar called deluxe
● Forced to find new stores, nail salon, salon because we moved here, not in our hometown
Maslow & Motives
Physiological: food, water, sleep, sex
Sleep- West Elm catalogs, ads-- get a good night's sleep Food- Brita-- drink clean water, healthy; snickers-- you are not yourself when you are hungry; McDonalds-- revamped their burgers, upscale cafes & exclusive menu options
Safety: physical safety, security, stability, familiar surroundings Physical safety: smoke alarms, carbon monoxide detectors, alarm systems, Allstate Mayhem campaign, State Farm
scooby doo commercial “like a good neighbor, state farm is there”
Belonging: love, friendship, affiliation, group acceptance Group acceptance: state farm you dropped us-- you don’t belong with us anymore because you dropped us
Esteem: status, self-respect, prestige, image
Status: mercedes car ad-- the car will make him famous, high status
Self Actualization: desire for self-fulfillment, want to be all you can be
● Adventures, climb mt everest, go on a safari, cruises, Japanese tea ceremony, read books
McGuire - Needs/ Motives
Consistency: want things to be consistent
● Don’t want to go to the Ritz & see bed bugs because you expect more
● Motel 6-- don’t expect the same experience as the Ritz
Cognitive Dissonance: worry about purchases
● Buying a minivan (lots of DB) vs motorcycle (no CD)
Categorize: categorize/organize info and experiences in meaningful and manageable ways
● Surfboard-- surfer, waves,
Attribute Causation: need to determine who or what causes things to happen to us
● Lucky, religion, 3 faiths in mythology
Advice: guidance or recommendations
● From salesman different from friends
Cues: need for observable cues or symbols enabling us to infer what we feel and know
● Business career fair-- watched how convos behaved, how people acted
● NASCAR event-- look how people behave, what they wear, where crowds go
Independence: do your own thing, be your own person ● Grow a beard, be a hipster
● Express our own identity
Novelty: variety seeking behavior
● Can be as simple
● Scotty's burger house-- Peanut butter burger
● River rapids
● Go to a beach
Consumer Behavior - External Factors
Reference Groups-- Membership
● Get ashes in church-- member of catholic church
● Illini football ticket holder
● Member of music at illinois
● Aspire to get a certain internship
Positive vs. Negative
Positive- belong to orange krush, bears fandom
Negative- academic probation, packers, cleveland browns
Formal vs. Informal
Formal- habitat for humanity, AARP, Shriners, Illinois State Bar Association
Informal- Illinois bar & grill
Virtual: facebook, snapchat, twitter, instagram, pinterest
Social Group Power:
Legitimate: group or individual has legitimate “rights” to influence people
➢ Ronald McDonald House
➢ Make A Wish foundation-- batkid
Reward: perception you will be rewarded by group or individual ➢ Want approval from others
Coercive: influence behavior with fear or taking away rewards ➢ Anti meth project “not even once”
➢ Truth campaign, activism marketing projects, Walgreens- not happy or healthy ditch the tobacco
Expert: accept influence of people recognized for their expertise ➢ Medical expert i.e. one will generally listen to a doctor ➢ Rick Bayless-- famous chicago chef
➢ Driving experts-- Conan teaching girl how to drive
Referent: people identify with groups, role models or heroes ➢ Baseball players i.e. Kris Bryant, Anthony Rizzo
➢ Joe Madden riding around in Binny’s
Basic Consumer Decision-Making Process
Out of Stock:
● going to interview, business fair & out of mints ● Out of espresso royale coffee
● Out of golf balls-- need to replenish stock
● Out of toilet paper
● Grey hair-- dye hair, seek out hair dye
● Yellow/bad teeth-- whitening toothpaste
● Dry hands-- O’Keeffe’s working hands hand cream
New Needs /Wants:
● Broken dishwasher-- initiate search for a new one ● Attend u of i-- need to get orange and blue apparel ● Sorority apparel
Memory- past searches, personal experiences
● Phone, laptop, car
● “Mr. Memory” Alfred Hitchcock, The 39 Steps
Interpersonal- family, coworkers, friends as information sources
Independent- consumer groups, government agencies ● FDA- make recommendations, advice
● Consumer reports
Marketing- salespeople, advertising, promotion
● GEICO “it’s what you do” if you’re a golf commentator, you whisper; if you want to save 15% or more, you switch to GEICO
● IUCN Save Our Species Lacoste limited edition polos
Experiential- inspection or product trial
● The Filling Station Chelsea Market in NY, can taste every single balsamic, salt, etc
● Sam’s Club/ Costco samples
● Binny’s Wine expo, world of whiskies
Internal- evaluate alternatives internally
➢ Awareness set: brands a person is aware of
○ Dunkin donuts
○ NOT aware of Dominique Ansel Bakery
○ Tim Hortons
➢ Evoked set: brands which come to mind in CDM
○ Donuts in Illinois--Krispy Kreme
○ Donuts in Champaign-- Pandamonium
○ Donuts in Danville-- Royal Donut
➢ Consideration set: brands acceptable for further
○ Randy’s Donuts in LA
○ The Church Key- brown butter brioche, Bob’s
➢ Inert set: person is indifferent about these brands
○ Aware of Entenmann’s donuts, not a consideration
➢ Inept set: unacceptable
○ DK’s ube “sweet potato based” donut
External- do stuff to find information
➢ 19 donuts everyone must try in LA
Product positioning: place brand occupies in consumer mind relative to competitor brands
● Union on the quad, go here must like something-- good academics, a lot of RSOs
Repositioning: changing place brand occupies in consumers mind relative to competitive offerings
● Rethink “import” Chrysler
● Nation divided or is it? Cadillac Dare Greatly Campaign
Outlet Selection: make decisions where to shop
➔ Meijer physical conditions= lighting, layout, aesthetic,
music different from Marianos-- samples-- cheese, wine
VS whole foods-- all different shopping experiences
➔ Staff: career objectives, training, personal situation,
◆ Affect mood, effort, commitment, knowledge, skill
◆ Best Buy-- happy guy clapping vs guy who looks
annoyed/bored to be there
◆ Jimmy Johns-- trained to be “freaky fast”
◆ Ace a test-- good mood VS fail a test-- bad mood
➔ Consumer: Affect enjoyment, time in store, items examined, purchases, satisfaction
◆ Lifestyle: athletic and exercise oriented
● Runners, weight training, yoga, fencing
◆ Shopping Orientation
● Rodeo drive
● Williams Sonoma
Post Purchase Experience:
Consumer Satisfaction- overall attitude associated with brand after acquire and use
Satisfaction or dissatisfaction- difference between what experienced and what expected
Heuristics: “rules of thumb” people use to make decisions ● Buying shampoo, get the same one/type/brand-- not going to look at every single one & every single ingredient
● Buying a drink-- water-- decide what type/brand
● Buying vegetables-- choosing canned vs fresh
○ Different criteria for when at home vs dorm
● Age-- Clint Eastwood purchasing habits change with age ● Family size-- big vs small, married vs single
● Income-- salary
● Occupation & education-- university vs trade school
● Nationality-- British vs Japanese vs American--> how does that affect how people market to you?
Key to IMC strategy :
Consumer behavior- The activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants.
Organizational buyers- People who purchase products and services for use in business and government.
Consumer Decision Process:
Consumer decision process- The series of steps a consumer goes through in deciding to make a purchase.
Personal process- The three internal, human operations—perception, learning, and motivation—that govern the way consumers discern raw data (stimuli) and translate them into feelings, thoughts, beliefs, and actions.
Interpersonal influences- Social influences on the consumer
decision-making process, including family, society, and cultural environment.
Nonpersonal influences- Factors influencing the consumer
decision-making process that are often out of the consumer’s control, such as time, place, and environment.
Evaluation of alternatives- Choosing among brands, sizes, styles, and colors.
Postpurchase evaluation- Determining whether a purchase has been a satisfactory or unsatisfactory one.
Consumer perception process:, psychological screens, cognition, learning and persuasion sections – all bold terms
Perception- Our personalized way of sensing and comprehending stimuli. Stimulus- Physical data that can be received through the senses. Physiological screens: The perceptual screens that use the five senses—sight, hearing, touch, taste, and smell—to detect incoming data and measure the dimension and intensity of the physical stimulus.
Cognition: The mental processes involved in perception, thinking, recognition, memory, and decision making.
Psychological screens- The perceptual screens consumers use to evaluate, filter, and personalize information according to subjective standards, primarily emotions and personality.
Learning: A relatively permanent change in thought processes or behavior that occurs as a result of reinforced experience.
Mental files- Stored memories in the consumer’s mind.
Theories of learning:
Classical conditioning- occurs when consumers associate stimuli or behaviors with things they desire
Operant conditioning- involves an organism receiving reinforcement for a behavior
Social cognitive theory- suggests that consumers pay attention to the rewards and costs experienced by others in response to the things they do
A theory of persuasion, The Elaboration Likelihood Model: A theory of persuasion. Psychologists Petty, Cacioppo, and Schumann theorize that the route of persuasion depends on the consumer’s
level of involvement with the product and the message. When consumers have high involvement with the product or the message, they will attend to product-related information, such as product attributes and benefits or demonstrations, at deeper, more elaborate levels. This can lead to product beliefs, positive brand attitudes, and purchase intention. On the other hand, people who have low involvement with the product or the message have little or no reason to pay attention to it or to comprehend the central message of the ad. As a result, direct persuasion is also low, and consumers form few if any brand beliefs, attitudes, or purchase intentions. However, these consumers might attend to some peripheral aspects of the ad or commercial—say, the pictures in the ad or the actors in a commercial—for their entertainment value. And whatever they feel or think about these peripheral, nonproduct aspects might integrate into a positive attitude toward the ad.
Central route- One of two ways researchers Petty, Cacioppo, and Schumann theorize that marketers can persuade consumers. When consumers have a high level of involvement with the product or the message, they are motivated to pay attention to the central,
product-related information in an ad, such as product attributes and
benefits, or demonstrations of positive functional or psychological consequences
Peripheral route- One of two ways researchers Petty, Cacioppo, and Schumann theorize that marketers can persuade consumers. People who have low involvement with the product or message have little or no reason to pay attention to it or to comprehend the central message of the ad. However, these consumers might attend to some
peripheral aspects of an ad or commercial for their entertainment value. Whatever they feel or think about these peripheral,
nonproduct aspects might integrate into a positive attitude toward the ad. At some later date, these ad-related meanings could be activated to form some brand attitude or purchase intention. Typical
of advertising for many everyday low-involvement purchases such as many consumer packaged goods: soap, cereal, toothpaste, and
Attitude: An evaluative response—positive or negative—regarding some idea or object.
Brand interest: An individual’s openness or curiosity about a brand. Habit: An acquired or developed behavior pattern that has become nearly or completely involuntary.
Brand Loyalty: The consumer’s conscious or unconscious
decision—expressed through intention or behavior—to repurchase a brand continually. This occurs because the consumer perceives that the brand has the right product features, image, quality, or relationship at the right price.
Consumer Motivation Process:
Motivation- The underlying drives that stem from the conscious or unconscious needs of the consumer and contribute to the individual consumer’s purchasing actions.
Needs- The basic, often instinctive, human forces that motivate us to do something.
Wants- Desires learned during a person’s lifetime.
Hierarchy of needs- Maslow’s theory that the lower biological or survival needs are dominant in human behavior and must be
satisfied before higher, socially acquired needs become meaningful.
Negatively originated motives: Consumer purchase and usage based on problem removal or problem avoidance. To relieve such feelings, consumers actively seek a new or replacement product.
Informational motives- The negatively originated motives, such as problem removal or problem avoidance, that are the most common energizers of consumer behavior.
Positively originated motives: Consumer’s motivation to purchase and use a product based on a positive bonus that the product promises, such as sensory gratification, intellectual stimulation, or social approval.
Transformational motives- Positively originated motives that promise to “transform” the consumer through sensory gratification, intellectual stimulation, and social approval. Also called reward motives.
Interpersonal influences: Social influences on the consumer decision-making process, including family, society, and cultural environment.
Social classes- Traditional divisions in societies by sociologists—upper, upper-middle, lower-middle, and so on—who believed that people in the same social class tended toward similar attitudes, status symbols, and spending patterns.
Reference groups- People we try to emulate or whose approval concerns us.
Opinion leader- Someone whose beliefs or attitudes are respected by people who share an interest in some specific activity.
Culture- A homogeneous group’s whole set of beliefs, attitudes, and ways of doing things, typically handed down from generation to generation.
Subculture- A segment within a culture that shares a set of meanings, values, or activities that differ in certain respects from those of the overall culture.
Non personal influences: Factors influencing the consumer decision-making process that are often out of the consumer’s control, such as time, place, and environment.
Time- timing is everything
● Don’t need snow tires or rock salt in the summer
● Flat tire on the highway-- tire campaigns become timely
Place- distribution strategy, convenience of location
Environments- Surroundings that can affect the purchase decision.
Evoked set- The particular group of alternative goods or services a consumer considers when making a buying decision.
Evaluative criteria- The standards a consumer uses for judging the features and benefits of alternative products.
Cognitive Dissonance- The theory that people try to justify their behavior by reducing the degree to which their impressions or beliefs are inconsistent with reality.
Market segmentation: Strategy of identifying groups of people or organizations with certain shared needs and characteristics within the broad markets for consumer or business products and aggregating these groups into larger market segments according to their mutual interest in the product’s utility.
I.e. “loyalty status” is a “behavioristic” segment category
Behavioristic segmentation: Method of determining market segments by grouping consumers based on their purchase behavior.
➢ Old spice= mature brand-- absurd, clever, witty advertising= rebrand
Purchase occasion: A method of segmenting markets on the basis of consumers buy and use a good or service.
➢ Frequency of need (regular or occasional)
➢ Fad (candy, computer games)
➢ Seasons (water skis, raincoats)
Benefit segmentation: Method of segmenting consumers based on the benefits being sought.
➢ Crest-- benefits of whiter teeth
Geographic segmentation: A method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.
➢ Sunbelt states buy more sunscreen
➢ Canadians buy more equipment for snow and ice
Demographic segmentation: Based on a population’s statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors.
Geodemographic segmentation: Combining demographics with geographic segmentation to select target markets in advertising.
Psychographics: The grouping of consumers into market segments on the basis of psychological makeup—values, attitudes, personality, and lifestyle.
Product Life Cycle: Progressive stages in the life of a product—including introduction, growth, maturity, and decline—that affect the way a product is marketed and advertised.
Introductory phase- The initial phase of the product life cycle (also called the when a new product is introduced, costs are highest, and profits are lowest.
Growth stage- The period in a product life cycle that is marked by market expansion as more and more customers make their first purchases while others are already making their second and third purchases.
Maturity stage- That point in the product life cycle when the market has become saturated with products, the number of new customers has dwindled, and competition is most intense.
Decline stage- The stage in the product life cycle when sales begin to decline due to obsolescence, new technology, or changing consumer tastes.
Brand- That combination of name, words, symbols, or design that identifies the product and its source and distinguishes it from competing products—the fundamental differentiating device for all products.
Individual brand- Assigning a unique name to each product a
➔ Unilever markets its toothpaste under Aim, Pepsodent, Close-Up
Family brand- The marketing of various products under the same umbrella name.
➔ Heinz promotes its ketchup as well as relishes
National brand- Product brands that are marketed in several regions of the country.
Private labels- Personalized brands applied by distributors or dealers to products supplied by manufacturers. Private brands are typically sold at lower prices in large retail chain stores.
➔ Kenmore, Craftsman, Kroger, Cragmont, Party Pride
Licensed brands- Brand names that other companies can buy the right to use.
➔ Sunkist vitamins, Coca-Cola clothing, Porsche sunglasses
Marketing Research: The systematic gathering, recording, and analysis of information to help managers make marketing decisions.
IMC Research: Used to help define the product concept or to assist in the selection of target markets, advertising messages, or media vehicles. IMC Strategy Research: Used to help define the product concept or to assist in the selection of target markets, advertising messages, or media vehicles. Media Research: The systematic gathering and analysis of information on the reach and effectiveness of media vehicles.