Mark Weekly notes
Mark Weekly notes MARK 220-01
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This 13 page Class Notes was uploaded by Asli Acar on Sunday February 14, 2016. The Class Notes belongs to MARK 220-01 at Georgetown University taught by Simon Blanchard in Spring 2016. Since its upload, it has received 15 views. For similar materials see PRINCIPLES OF MARKETING in Marketing at Georgetown University.
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Date Created: 02/14/16
03/02/16 Marketers behaving badly • Sometimes marketers take advantage of ambiguity and consumers’ lack of sophistication Misleading Consumers Intentionally FTC always seeking to prosecute those who intentionally mislead! Demonstrations e.g., Campbell’s soup – meat and potatoes above the broth because marbles were in the bottom of the bowl – now more tightly regulated. • In 1959, Palmolive made a commercial for their Rapid Shave shaving cream showing that it was so moisturizing it made sandpaper soft enough to shave—turns out it was just sand on top of Plexiglas FTC always seeking to prosecute those who intentionally mislead! Pragmatic Inferences – literally true, but figuratively false “Brand X pills may relieve pain” – “may” interpreted as “usually” – see this with weight loss programs You have to substantiate the things that you write on the products Comparison Omission – leave off comparison point “Brand X gasoline gives you greater gas mileage” Affirmation of the Consequent “Women who look younger use Oil of Olay” – flip it to “Women who use Oil of Olay look younger” – builds on people’s lack of understanding of conditional probabilities. Piecemeal Data – juxtaposition of imperatives “Brand X has more headroom than a Mercedes, more leg room than a Cadillac, and more trunk space than a BMW” Properties of Long and Short Term Memory Capacity Duration Information Coding Loss Short term 7 + 2 18 seconds Rehearsal Acoustic memory failure (sound related) Long term Unlimited Permanent Retrieval failure Semantic memory (meaning related) • Interpretation happens in shortterm memory. • We pull and add things to longterm memory, as needed. Associative Networks Information is stored in memory in an organized network structure. Network is comprised of nodes and links. Nodes = concepts/words Links = associations between related concepts Repetition strengthens the link more likely to prime related concepts/provides a context. Lack of use/strength of association diminishes...becomes less accessible in memory. Associations exercises ... Definitions Learning: A process that produces a relatively enduring change in behavior or knowledge as a result of an individual’s experience. • Happens over time. • Should influence behavior for a while. • Can occur as a result of one’s own experiences or someone else’s. Analytical reasoning and analogies (interpretation) Operant Conditioning Serial (operant) conditioning “Brute force” learning Analytical reasoning: engaging in creative thinking to restructure and recombine existing information to form new associations and concepts. Operant conditioning: Basic learning process that involves changing the probability that a response will be repeated by manipulating the consequences of that response. Reinforcing stimulus Aversive stimulus Positive reinforcement Positive punishment (Give Stimulus presented (Give something good something bad Target (+ve) Target behavior ↑ ) behavior ↓ ) Stimulus Negative punishment (Take Negative reinforcement removed ( away something good (Take away something bad Target behavior ↓) Target behavior ↑) ve) Serial Conditioning Shaping: Selectively reinforcing successively closer approximations of a goal behavior until the goal behavior is displayed. Shaping involves using operant conditioning over time to change the frequency of a series of target behaviors, culminating in a final goal behavior. 1. Launch Coupon on shelf. Big discount. 2. Postlaunch Moderate discount on bottle itself. 3. No discount at all. Learning without conditioning or reasoning Chunking – 1800safeauto; Grouping items to be processed as a unit Rehearsal – engaging jingles and slogans (McDonald’s) Repeating it over and over Elaboration – Locker combination Add additional meaning... use novel or unexpected stimuli Evaluation of Alternatives Attitudes Belief: • A descriptive thought that a person holds about something. Attitude: • A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea. i.e. evaluation of a belief 08/02/16 Balance Theory • With an imbalance, a person can: • Change the opinion of the object • Change the opinion of the other person • Decide the other person is mistaken • Avoid the other person and object Affective Attitudes • How marketers can change the affective component: • Using classical conditioning: pairing an stimulus that the audience likes with the brand name • Using emotions: creating arousal (positive or negative) (humor, celebrities, emotional appeals, fear, guilt, etc) • Mere exposure: repeated exposure increases familiarity and liking • Classical conditioning: pairing a positive stimulus with the product or brand The Buyer Process 1Need Recognition Occurs whenever a consumer recognizes a difference between the current state and the ideal or desired state. Once we activate a need, a state of tension exists that drives the consumer to some goal that will reduce this tension and eliminate the need. Motivation is an internal state that drives us to satisfy needs. Need rec Motivation Generate Motivation • We juggle many needs that can’t be all satisfied at once, so we prioritize. • Marketers should activate need recognition. How? • Advertise benefits—make it desirable, push for a new ideal state • Generate concern about existing state Only unmet needs are motivating. Information Search Once a need is activated, consumers search for information on how to satisfy it. Consumers conduct an internal search for information by retrieving relevant knowledge stored in memory Consumers also employ external search for information by relying on outside sources: Personal sources Commercial sources Public sources Experiential sources Evaluation of Alternatives Consumers: Identify consideration set (taken seriously): Narrow list and compare pros and cons Marketers: Educate consumers about which product attributes should be considered When brand is not part of the consideration set: Product improvement + advertising Induce trial Striking package designs and display Coupons, rebates Product Choice Rational choice suggests that we should evaluate all the information about all the alternatives, weigh it all, and then make the optimal choice. In reality, people often make choices based on heuristics—i.e., rules of thumb. Examples? Price = quality Brand name Country of origin Post purchase Evaluation How good a choice was it? Customer satisfaction: does the performance meet expectations? Exceed them? Fall short? Post purchase evaluation ultimately affects future purchase decisions—not only for this particular consumer, but also for others due to wordof mouth Two “nonrational” processes often influence post purchase evaluations Adjustment (i.e., “hedonic treadmill”) Lottery winners Amputees Cognitive Dissonance “After the sale discomfort” PostPurchase Dissonance will begin once a consumer begins to "notice" any disadvantages of their purchase, and begin to hear "good" things about the other products they did not buy. Post Purchase Opportunities for Marketers Reinforce wisdom of consumers’ choice through: Personalized contacts after sale Advertising Use recovery strategies: GE spends $10 million/year on its 800 number Answer Center (3 million calls/year). According to them, the payback is “multiple times” that. Burger King: 4,000 calls a day on its 24hour hot line 65% are complaints; 95% resolved in one call • BK calls back 25% within a month to check on satisfaction Thought Experience • “I want you to walk over to the mailroom to grab a book I left there.” • “I want you to walk over to the mailroom to grab a book I left there because I need it.” • “I want you to walk over to the mailroom to grab a book I left there because I need it for class.” • What would influence your willingness to comply in each case? Size of request Person requesting liking, similarity, authority figure Sense of obligation/reciprocity Mindlessness: Cutting Line 93% Automaticity: The “Because” Heuristic If you provide reasons for a request, people are more likely to comply. When the request is small, the mere presence of “because” is enough to gain compliance—even when the reason following “because” isn’t very compelling. When the request is large, the reason following “because” must be considered legitimate to produce compliance; people are more mindful and less “automatic” when costs are high. Commitment and Consistency Once we make a choice or take a stand, we experience pressure—both internally and externally—to behave consistently with that commitment. We respond in ways that justify our earlier decision. In the context of influence, once people agree to one request, they are more likely to agree to subsequent requests as well. • Why? • Shows consistency between attitudes and behavior • Less effortful than reprocessing all of the information that went into The initial decision making process (i.e., it’s a heuristic) • Footinthedoor: Make a small initial request, followed by a larger request later. Compliance with small initial requests makes people feel like they are good, nice, helpful people. To preserve this positive image and appear consistent, people will continue to comply with larger requests. Examples? • Signing petitions • What about job/internship hunting? Public commitments are very effective at instilling commitment. • Smoking cessation programs encourage the smoker to “tell everyone who matters to you that you are going to quit smoking” • Websites like Stickk • Lowball: get an initial commitment from an individual and then change the “deal” • People will stick with the new deal out of commitment to the old • Too much effort to think through the entire new deal • Some industries are notorious for this • Car dealerships • Airlines used to be worse SelfDefense Against These Techniques Listen to your gut when it tells you are being taken for a ride. • Ask yourself, “Knowing what I know now, would I still make the same choice?” • Tends to be effortful, but good for the big decisions (e.g., relationships, big purchases, etc.). • Tell the individual that you know exactly what they are trying to do and that it won’t work. Reciprocate • When someone does us a favor, we feel obligated to return the favor—i.e., to reciprocate Reciprocity: Techniques DoorintheFace: make a large, unreasonable request followed by a smaller, reasonable request. • More than just a contrast effect • Smaller request has to seem reasonable • Both requests must be made by the same individual • Don’t delay! Impact goes down if there’s a delay between the first and second requests. “That’s not all!” Sweeten the deal by adding bonuses. • People feel obligated to be reasonable and comply when offered a “good deal” • Leads to more sales Any potential concerns with this technique? Survey Compliance Examples • Physicians are extremely busy, and their time is very valuable • When promised $20 after returning a survey, 66% complied • When a $20 check was included upfront in the first mailing, 78% complied—an 18% increase in response rate! • Of those who did not comply, the majority did not cash the check (95% of responders cashed the check vs. 26% of nonresponders) While visiting a vintage furniture store, you find a coffee table that is appealing to you. It’s $80, but you think that the salesperson may be willing to negotiate. Present the offer: After deliberating for a while, the (seller) agrees to sell you the coffee table for $64, saying that it is her absolute lowest price. Make a favor request: However, she mentions that at this price, she would hope there would be something in it for her. Specifically, she says that after purchasing the coffee table and completing your purchase it would be nice if you would consider posting a positive review. Scarcity: When something becomes less accessible, the freedom to have it may be lost. According to psychological reactance theory, people respond to the loss of freedom by wanting to have it more. Availability may also serve as a heuristic for inferring an object’s quality or value—i.e., the more valuable something is, the more difficult it usually is to obtain As such, you may want to induce perceptions of scarcity Examples? Social Proof “Social Proof”—the perceived validity or correctness of an idea increases as the number of people supporting the idea increases • “Salting” the tip jar • “Operators are standing by. Please call now,” became, “If operators are busy, please call back later.” Halo of Attractiveness • Attractive people fare better in the judicial system Negligence victims are awarded almost twice as much in damages when they are more attractive than the defendant Attractive defendants are twice as likely to avoid jail time If convicted, attractive people receive lighter sentences Prisoners who had plastic surgery to correct facial deformities had lower rates of recidivism • Attractive people make good salespeople! Authority People are much more likely to comply when the requester has credentials or other “symbols” of expertise and authority This is often a useful heuristic for deciding how to achieve positive outcomes (e.g., for medical advice, listen to doctors, not Jenny McCarthy) But deference to authority can also have a very, very dark side, as shown in Milgram’s famous experiment
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