Chapter 5

Question 1

What is Value?

Answer 1

• Is it always the cheapest option?
  VALUE = PRICE + QUALITY
• Consumers are looking for different combinations of price and quality - depending on the specific purchase and their specific needs

Question 2

Buyer Decision Process:

Answer 2

1. Problem Recognition
2. Information Search
3. Alternative Evaluations
4. Purchase Decision
5. Post Purchase Behavior

Question 3

Black Box Theory:

Answer 3

A stimulus (advertising) interacts with many factors before generating a response (a purchase).
If a marketer understands the factors -better able to understand what kind of communications will be effective.

Situational, psychological and personality influences on this theory

Question 4

Dealing with selection Perception = Difficult for marketers to inform and influence
4 Stages:

Answer 4

1. Selective Exposure
2. Selective attention
3. Selective Comprehension
4. Selective Retention
   Markers also deal with perceived risk

Question 5

Marketing Tactics:

Answer 5

Seals of Approval, Endorsements, warranties and guarantees, usage instructions

Question 6

Types of Learning:

Answer 6

Behavioural learning:

• Developing an automatic response due to repeated exposure
• Drive, cue, response, reinforcement
• Radio dayparts can be very expensive (vs ROS) because it is a “cue” during key meal movements

Cognitive Learning:

• No direct experience - but reasoning and observation gets you to a conclusion
• Fact-based, functional advertising that shows product in use and the happy result

Brand Loyalty because of learning?
- Consumers build a habit or purchase (Brand Loyalty) once they have found a brand which solves their needs… this is an easier path with reduced risk

Question 7

Values

Answer 7

• A person’s principles or standards of behaviour; one’s judgment of what is important in life

Question 8

Beliefs

Answer 8

• A subjective perception of a brand or product based on personal experience

Question 9

Attitudes

Answer 9

• Attitudes are hard to change
• Attitudes are someone’s feelings towards an idea or object
• Advertisers typically showcase the attitudes of their target market in communications = drives product acceptance

Question 10

VALS Framework

Answer 10

Tool that segments the US English speaking population +18 into 8 consumer groups:

1. Innovators
2. Thinkers
3. Believers
4. Achievers
5. Strivers
6. Experiencers
7. Makers
8. Survivors

Question 11

PRIZM5 Framework:

Answer 11

• 68 micro segments of the Canadian population
• Environics, StatsCan, Vividata - key research contributors
• Each segment representing 0.5% - 3% of the market

Question 12

Socio-Cultural Influences:

Answer 12

Personal influences

Word of Mouth: Buzz marketing and viral marketing

Reference Groups

Family

Social Class: Groups sharing similar values and behavior

Culture