TEST TWO Review

Sensation means what?

Lecture Review

Consumer Behavior - Internal Factors 

Perception 

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

What is boredom?

● 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

What is esteem?

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

➢ reward/punishment

➢ 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”

Modeling:

➢ 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

Prestige: ​Gucci

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 

Aspirational:

● 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

Dissatisfaction:

● 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

Information sources: 

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

Information Search​:

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

situations

○ Donuts in Illinois--Krispy Kreme

○ Donuts in Champaign-- Pandamonium

○ Donuts in Danville-- Royal Donut

➢ Consideration set:​ brands acceptable for further

consideration

○ Randy’s Donuts in LA

○ The Church Key- brown butter brioche, Bob’s

donuts

➢ Inert set:​ person is indifferent about these brands

○ Aware of Entenmann’s donuts, not a consideration

set

➢ Inept set:​ unacceptable

○ DK’s ube “sweet potato based” donut

External- ​do stuff to find information

➢ 19 donuts everyone must try in LA

Alternative Evaluation: 

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

Physical conditions

➔ Meijer physical conditions= lighting, layout, aesthetic,

music different from Marianos-- samples-- cheese, wine

VS whole foods-- all different shopping experiences

Social Conditions:

➔ Staff:​ career objectives, training, personal situation,

social class

◆ 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

● Harrods

● Macys

● 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

Segmentation 

Demographics​-

● Age-- Clint Eastwood purchasing habits change with age ● Family size-- big vs small, married vs single

● Income-- salary

● Occupation & education-- university vs trade school

● Religion

● Ethnicity

● Nationality-- British vs Japanese vs American--> how does that affect how people market to you?

Psychographics 

Geographic 

Geodemographic 

Behavioristic 

Textbook Review

Chapter 5

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

chewing gum.

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.

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.

Chapter 6

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.

Product Branding:

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

manufacturer produces.

➔ 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

Chapter 7

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.