Chapters 4-9

Question 1

Schema

Answer 1

the set of associations linked to a concept in memory

Spreading of activation: the process by which retrieving a concept or association spreads to the retrieval of related concepts or associations
Priming: the increased sensitivity to certain concepts and associations due to prior experience based on implicit memory
Occurs when a concept is activated by a stimulus and this activation influences consumer’s associations, positively or negatively, outside of conscious awareness.
Associations in schemas vary in terms of how abstract or concrete they are

Question 2

Schema and its three dimensions

Answer 2

Favorability: associations can vary in favorability
Focusing on a brand’s history can sometimes lead to favorable brand evaluations
Such a strategy can sometimes backfire because consumers infer that the brand is less authentic

Uniqueness: associations vary in their uniqueness: the extent to which they are also related to other concepts

Salience: associations vary in their salience, or how easily they come to mind
Less salient associations may be remembered only in certain contexts

Associations in schemas vary on three dimensions that are crucial to building strong brands and fostering consumers’ involvement in and their attitudes toward the brand

Question 3

Prior knowledge and brand management

creating brand images and personalities

Answer 3

A schema or brand image helps consumers understand what a new offering is, what it can do for them, and how it differs from competing offerings
Schemas and images help consumers understand the types of products offered
Maintain though consistent advertising and offering multiple brand extensions, link product to an appropriate sponsorship, highlight additional features and benefits

Question 4

Prior knowledge and brand management

creating brand extensions

Answer 4

Brand extension: using the brand name of a product with a well-developed image on a product in a different category
* Transfer of associations takes place from the original brand schema to the new branded product
* Transfer of meaning from the new branded product to the original brand schema can take place

Question 5

Prior knowledge and brand management

engaging in co-branding

Answer 5

Effective when core associations with each brand are favorable when combined into a co-branded product

Question 6

Prior knowledge and brand management

Changing brand images

Answer 6

Add new and positive associations if brand or product image becomes stale, outdated, or linked to negative associations

Question 7

Prior knowledge and brand management

protecting brand images

Answer 7

Consumers’ prior expectations play a critical role during a crisis

Question 8

Taxonomic categories

Answer 8

how consumers classify a group of objects in memory in an orderly, often hierarchical way, based on their similarity to one another

Question 9

taxonomic categories can also be hierarchically organized

Answer 9

• Superordinate: broadest level, where objects share a few associations but also have many different ones (Drinks)
• Basic: finer discriminations between objects occurs (type: tea, coffe, soda, ect)
• Subordinate: finest level of differentiation (herbal, non herbal tea)

Question 10

Prototype

Answer 10

the best example of a cognitive (mental) category

Question 11

Prototypicality

Answer 11

the extent to which an object is representative of its category

Question 12

Prior knowlage

Goal-derived category

Answer 12

Things viewed as belonging in the same category because they serve the same goals
* Positioning an offering as relevant to a goal can be an important marketing objective.
* Goal-derived category structures are employed by retail stores.

The flexibility of a consumers’ associative networks and categorizations depends, in part, on consumers’ goals and the time to implement these goals.

Question 13

Retrieval

Answer 13

the process of remembering or accessing information stored in long-term memory

Question 14

several key characteristics of the stimulus affect retrieval

Answer 14

• Salience: salient objects tend to attract and induce greater elaboration, thereby creating stronger memories
• Prototypicality: we are better able to recognize and recall prototypical or pioneer brands because these have been frequently rehearsed and recirculated and are linked to many concepts in memory, and pioneers were the first to occupy the links
• Redundant cues: marketers can enhance consumer’s memory for brands by advertising two complementary products and explaining why they go together
• The medium in which the stimulus is processed: researchers are exploring whether certain media are more effective than others at enhancing consumer memory

Question 15

consumer’s mood and expertise can also affect retrieval

Answer 15

• Being in a positive mood can enhance our recall of stimuli
• We are more likely to recall information that is consistent with out moods
• Expert consumers can recall more brands, brand attributes, and benefits than novices can
• Consumers appear to access information about brands they encounter more quickly when they are young compared to when they are older

Question 16

what contributes to Retrieval failures

Answer 16

• Decay: the weakening of memory strength over time
• Interference: when the strength of a memory deteriorates overtime because of competing memories
• Primacy and recency effects: the tendency to show greater memory for information that comes first or last in a sequence

memory is also not always accurate or complete and may be selective or subject to confusion and distortion

Question 17

Attitudes

Answer 17

A relatively global and enduring evaluation of an object, issue, person, or action
* Overall evaluation that expresses how much we like or dislike something

Question 18

3 components of attitudes

Answer 18

• Cognitive function: how attitudes influence our thoughts
• Affective function: Katz’s notion that our feelings influence our attitudes
• Conative function: how attitudes influence our behavior

Question 19

Attitudes can be described in terms of five main characteristics

Answer 19

• Favorability: the degree to which we like or dislike something
• Attitude accessibility: how easily an attitude can be remembered
• Attitude confidence: how strongly we hold an attitude
• Attitidue persistence: how long our attitude lasts
• Attitude resistance: how difficult it is to change an attitude

Question 20

Central-route processing

Answer 20

the attitude formation and change process when effort is high

Question 21

Peripheral-route processing:

Answer 21

the attitude formation and change process when effort is low

Question 22

Attitudes based on low effort

low effort situation

Answer 22

when consumers are either unwilling or unable to exert a lot of effort or devote emotional resources to processing the central idea behind a marketing communication
* Consumers are unlikely to think about what the product means to them, feel strong emotions toward the brand, or generate arguments against or in support of the brand message
* Consumers are passive recipients of the message and usually do not form strong beliefs or accessible persistent, resistant, or confident attitudes

Question 23

Attitudes based on low effort

Peripheral route to persuasion

Answer 23

:aspects other than key message arguments that are used to influence attitudes
* Based not on a detailed consideration of the message or their ability to relate to the brand empathtivcally but on other easily processed aspects of the message
* * Peripheral cues: easily processed aspects of a message, such as music, an attractive source, picture, or humor→ attitudes over time
* Marketers can try to design their ads to enhance the likelihood that consumers’ thoughts (the cognitive base), feelings (the affective base), or both will be favorable.

Question 24

Cognitive bases of attitudes when consumer effort is low

Answer 24

-Consumers may acquire simple beliefs by forming simple inferences based on simple associations (peripheral cues)
-Consumers can form simple beliefs based of attributions or explanations for an endorsement
-Consumers can also for heuristics: simple rules of thumb that are used to make judgement

• “If it is a well-known brand, it must be good” to infer that brands with more frequent ads are also higher in quality
• Frequency heuristic: belief based simply on the number of supporting arguments or amount of repetition
• Truth effect: when consumers believe a statement simply because it has been repeated a number of times

Question 25

# Attitudes based on low effort Mere exposure effect

Answer 25

when familiarity leads to a consumer's liking an object ## Footnote Wearout: becoming bored with a stimulus

Question 26

# Attitudes based on low effort Classical conditioning

Answer 26

producing a response to a stimulus by repeatedly pairing it with another stimulus that automatically produces this response

Question 27

# Attitudes based on low effort Evaluative conditioning

Answer 27

a special case of classical conditioning, producing an affective response by repeatedly pairing a neutral conditioned stimulus with an emotionally charged unconditioned stimulus Here, the goal is not to encourage a physiological behavior(salivating, as in Pavlov’s classical conditioning) but to encourage a psychological one (positive feeling toward or preference for the CS).

Question 28

Problem recognition

Answer 28

the perceived difference between an actual and an ideal state * Motivates the consumers action * Occurs if consumers become aware of a discrepancy between the actual stat and the ideal state * Relates to consumption and disposition as well as to acquisition * Actual state: current state; the way things actually are * Ideal state: the way we want things to be

Question 29

Where do we get our notion of the ideal state?

Answer 29

* Simple expectations, usually based on past experiences * Future goals or aspirations * Cultural influences and reference groups * Major changes in personal circumstances

Question 30

What influences our perception of the actual state?

Answer 30

* Physical factors (such as a product malfunction) * Needs (hunger, thirst) * Creative mindset * external stimuli

Question 31

non-marketing factors affecting problem recognition

Answer 31

Emotions Financial status Reference groups Household characteristics Individual development Motivation Situation Ect

Question 32

Discovering consumer problems

Answer 32

* **Activity and product analysis**: activity analysis focuses on a particular activity (e.g, preparing dinner). Survey or focus groups attempt to determine what problems consumers encounter during the performance of the activity. Product analysis examines the purchase or use of a product/brand (e.g., problems with using a mountain bike) * **Problem analysis**: starts with a problem and asks respondents to indicate which activities, products, or brands are associated with (or could eliminate those problems. —-- packages are hard to open * **Emotion Research**: Concerns with emotions in problem recognition and resolution. E.g., emotions consumers have with product failures (e.g., anger) and how they cope with it (e.g., confornt). * **Human Factors Research**: determines human capabilites in areas such as vision, strength, response time, flexibility, fatigue, and effects of these capabilities of lighting, temperature, and sound. E.g., observations of use of lawn movers

Question 33

Universal, retrieval’ and ‘evoked’ (or consideration) sets

Answer 33

-Universal set: all possible choices in a product category -Retrieval set l: brands that you remember -Consideration (or evoked set): the subset of top of mind brands evaluated when making a choice, brands that you consider * Consideration sets vary in terms of their size, stability, variety, and preference dispersion

Question 34

Consumers can often recall some details when they engage in internal search, and the recalled attribute information can strongly influence their brand choices influenced by the following variable factors

Answer 34

-Accessibility or availability -Diagnosisticy (Diagnostic information: theat which helps us discriminate among objects) -Salience (Salient attribute: attribute that is “top of mind” or more important) -Attribute determinance: attributes that is both salient and diagnostic -Vividness -Goals

Question 35

Eight factors increase our motivation to conduct an external search.

Answer 35

Involvement and perceived risk Perceived costs and benefits Consideration set Relative brand uncertainty Type of product Attitudes toward search Discrepancy of information Presence of others

Question 36

External Search: Factors Affecting Information Processing

Answer 36

External search is also strongly influenced by the consumer’s ability to process information, influenced by four variables. ○ Consumer knowledge ■ Subjective knowledge—The consumer’s perception about what they know relative to what others know. ■ Objective knowledge—The actual information stored in memory that can be measured with a formal knowledge test. ○ Cognitive abilities ○ Consumer affect ○ Demographics ● Consumers who have the motivation and ability to search for information must still have the opportunity to process that information before an extensive search can take place. ● Situational factors that might affect the search process include the following: ○ The amount of information ○ The information format ○ The time available ○ The number of items being chosen

Question 37

# Judgment and decision-making based on high effort Estimation of likelihood

Answer 37

judging how likey it is that something will occur * An estimate of the likelihood that a product will break down, others will like it, or that it will satisfy our needs * Assessment of the likelihood that an ad is truthful

Question 38

# Judgment and decision-making based on high effort Judgment of goodness/badness

Answer 38

evaluating the desirability of something * Not only affected by the attributes of a product but also affected by how we feel * Anchoring and adjustment process: Starting with an initial evaluation and adjusting it with additional information * Imagery: multi-sensory mental representation (image) of a stimulus or an event

Question 39

# Judgment and decision-making based on high effort Mental accounting

Answer 39

Categorizing spending and saving decisions into “accounts” mentally designated for specific consumption transactions goals, or situations

Question 40

# Judgment and decision-making based on high effort Emotional accounting

Answer 40

the intensity of positive or negative feelings associated with each mental “account” for saving or spending

Question 41

# Judgment and decision-making based on high effort Consumers’ determination of which criteria are relevant to a decision and how important each criterion is to their decision are influenced by three factors

Answer 41

**Goals**: -Affect the criteria that will drive a consumer’s choice **Time** -Low-level construals: specific, concrete elements impacing immediate decisions. -Hedonic aspects: for decision outcomes realized far in the future **Framing** -Decision framing: the initial reference point or anchor in the decision process -Priming certain attributes can significantly alter consumer’s judgments -Product desire can be impacted by unexpected positive or negative framing

Question 42

# Judgment and decision-making based on high effort Thought-based decision models

Answer 42

* **Cognitive decision-making model**: the process by which consumers combine items of information about attributes to reach a decision * **Affective decision-making model**: the process by which consumers base their decisions on feelings and emotions * **Compensatory model**: a mental cost-benefit analysis in which negative features can be compensated for by positive ones * **Noncompensatory model**: a simple decision model in which negative information leads to rejection of the option ## Footnote Cutoff level: for each attribute, the point at which a brand is rejected with a non-compensatory model

Question 43

# decision-making based on high effort: What affects high effort decision Characteristics associated with consumers can affect the decisions they make

Answer 43

-Expertise -Mood -Time pressure -Extreameness aversion: options that are extreme on some attributes are less attractive than those with a moderate level of those attributes * Compromise effect: when a brand gains share because it is an intermediate rather than extreme option * Attitude balancing: picking a brand because it scores equally well on certain attributes rather than faring unequally on these attributes -Metacognitve experiences: how the information is processed beyond the content of the decision

Question 44

# decision-making based on high effort: What affects high effort decision decision characteristics can affect consumer choices

Answer 44

Information availability * Providing relevant information is important. * Too much information can lead to information overload. * Numerical attribute information is more quickly compared than verbal information Information format * The organization of information can affect which decision-making strategy consumers use. * The use of a narrative format for presenting information about brands can impact consumers’ choices Trivial attributes

Question 45

# decision-making based on high effort: What affects high effort decision Consumers’ decisions can be affected by the presence of other people, or even a relationship with someone else.

Answer 45

-Many decisions are made in a group context, by balancing two sets of goals. * Goals that are attained by the individual’s action alone (individual–alone) * Goals that are achieved depending on the actions of both the individual and the group (individual–group) -Because consumers may have to choose a different alternative to achieve each set of goals, they cannot always achieve both sets of goals simultaneously in group settings. -consumers face three types of individual-group goals * Selfppresentaion * Minimizing regret * Information gathering

Question 46

# Judgment and Decision-making Based on low effort representativeness heuristic

Answer 46

making a judgment by simply comparing a stimulus with the category prototype or exemplar * Suggests that companies positon offerings close to a prototype that has positive associations in consumers minds * When the shortcut leads to a judgment that is negatively bias, marketers must take steps to overcome it

Question 47

# Judgment and Decision-making Based on low effort Availability heuristic

Answer 47

basing judgments on events that are easier to recall ## Footnote Law of small numbers: the expectation that information obtained from a small number of people represents the larger population

Question 48

# Low-effort thought-based decision-making Performance related tactics

Answer 48

Tactics based on benefits, features, or evaluations of the brand * The primary marketing strategy objective should be to increase the likelihood of satisfaction through offering quality. * Marketers should select product features or benefits that are important to consumers, help to differentiate the brand from competitors, and convince consumers that they will be satisfied if they buy the product. * Sales promotion strategies such as free samples, price deals, or coupons only work if product performance satisfies and reinforces the consumer.

Question 49

# Low-effort thought-based decision-making Habit

Answer 49

A learned behavior that involves regular performance of the same act repeatedly * Behaviors are often performed unconsciously and may be difficult to discontinue * Getting consumers to acquire or use an offering repeatedly is important * Marketers do not want repeat-purchase consumers to break their buying behaviors

Question 50

# Low-effort thought-based decision-making Brand loyalty

Answer 50

buying the same brand repeatedly because of a strong preference for it * Multibrand loyalty: Buying two or more brands repeatedly because of a strong preference for them * Identify brand-loyal consumers by focusing on consumer purchase patterns. * Develop loyalty through nonprice promotions or through less drastic price promotions.

Question 51

# Low-effort thought-based decision-making Price-related tactics

Answer 51

Simplifying decision heuristics that are based on price * Used when consumers perceive few differences among brands and when they have low involvement with the brands in the consideration set * Consumers consider how much they must pay in relation to the price of other relevant brands or to the price they previously paid for that product. * Zone of acceptance: The acceptable range of prices for any purchase decision * Consumer perceptions play an important role in the use of price-related tactics. * Deal-prone consumer: A consumer who is more likely to be influenced by price * Marketers can use a variety of pricing techniques, including coupons, price-offs, rebates, and two-for-ones, as long as the savings are at or above the just noticeable difference and within the zone of acceptance.

Question 52

# Low-effort thought-based decision-making Normative choice tactics

Answer 52

low-elaboration decision-making that is based on others’ opinions * can result from * * Direct influence, in which others try to manipulate us * * Vicarious observation, in which we observe others to guide our behavior * * Indirect influence: in which we are concerned about the opinions of others * Particularly common among inexperienced consumers who have little knowledge * Online communication can increase its importance * Marketers can emphasize these motivations in advertising and can attempt to stimulate word-of-moth communication

Question 53

Conjunctive model

Answer 53

A noncompensatory model that sets minimum cutoffs to reject “bad” options Selection goes to option(s) with attributes that meet the acceptable cutoff point. (cant have anything lower than cuttoff)

Question 54

Compensatory model

Answer 54

a mental cost-benefit analysis in which negative features can be compensated for by positive ones Selection goes to the option with the greatest (sum of eval x importance)

Question 55

Disjunctive model

Answer 55

A noncompensatory model that sets acceptable cutoffs to find the options that are “good" may only consider some (not all) attributes selection goes to the option(s) with attributes that meet the acceptable cut off point

Question 56

Attribute processing

Answer 56

comparing brands, one attribute at a time * Preferred by consumers, but available information dose not alwat facilitate this method

Question 57

Lexicographic model

Answer 57

a noncompensatory model that compares brands by attributes, one at a time in order of importance Selection goes to the option that preforms the best on the most important attribute if their is a tie for most important, move on to second most important and so on

Question 58

Elimination-by-aspects model

Answer 58

similar to the lexicographic model but adds the notion of acceptable cutoffs