Midterm 1

Question 1

Lewin’s interactionist model

Answer 1

Behavior= f(person x situation)

Person= individual characteristics
Situation=environment

Used in an input-output model of decision making

Question 2

Consumer decision journey

Answer 2

Initial consideration set-> active evaluation (information gathering, shopping)-> moment of purchase-> post purchase experience (ongoing exposure)->trigger causes loyalty loop back to moment of purchase

Question 3

Quantitative research (2 types)

Answer 3

Secondary data: uses already available info to infer consumer preferences

Primary data: use of survey, observation or experiments to directly measure consumer preferences

-sales data from past purchases, time of purchase, location of purchase

Problem: inferring causation (need correlation, temporal antecedence and no third factor)

Question 4

Qualitative research

Answer 4

Interviews, focus groups, ethnography and projective techniques

I.e. ZMET

Question 5

ZMET

Answer 5

A research tool that elicits the key associations(metaphors) that capture the core meaning of the brand

Steps

1. Give me respondents several days to gather 12 pictures they associate with brand
2. Guided interview
3. create Association map

Question 6

3 layers of a metaphor

Answer 6

1. Surface metaphors: everyday language (I.e. I am drowning in debt or bank froze his assets)
2. Metaphor themes: below the surface (I.e. money is liquid)

Deep metaphors: relatively few and universal (I.e. money is a resource)

Question 7

Controlled vs automatic processing

Answer 7

• automatic( less resources) controlled (more resources)

- processes can move from controlled to automatic with practice (We are cognitive misers)

Question 8

Motivation (MOA)

Answer 8

Motivation: inner state of arousal that impels one to action

triggered by something that is

1. personally relevant
2. Costly/risky
3. Consistent with one’s goals, values, and needs

Question 9

Ability (MOA)

Answer 9

Possession of the skills or means to make an outcome happen

Influenced by

1. Knowledge and expertise
2. Financial resources
3. Social network

Question 10

Opportunity (MOA)

Answer 10

Set of circumstances that makes it possible for an outcome to happen

Influenced by

1. Time
2. Availability
3. Repetition
4. Pack of distraction

Question 11

Needs

Answer 11

Discrepancy between actual state and ideal state

I.e. maslows hierachy of needss

Question 12

4 basic needs

Answer 12

1. Control; the ability to influence in one’s environment (I.e. illusion of control)
2. Esteem: sense of self worth or personal value (attributional bias)
3. Belonging: people have an inherent need for acceptance and connection to other ppl (in group vs out group bias)
4. Meaningfulness: having a sense of purpose (rooted in desire to avoid mortality salience/ terror management theory)

Question 13

New coke conclusions

Answer 13

• Consumer owns the brand

- brand meanings are a portfolio (some for long haul, some for specific times)

Question 14

How we process information

Answer 14

Stimulus input-> exposure-> attention-> perception-> comprehension

Question 15

Exposure

Answer 15

The process by which consumers come in contact with a stimulus

-without it there is no opportunity to process

Question 16

Attention (and properties)

Answer 16

The act of devoting cognitive resources to a stimulus

-most ads try to catch attention by “cutting through the clutter”

Properties

1. Limited amount of attention
2. Selective (cognitive misers)
3. Can be divided

Question 17

What motivates consumers to pay attention?

Answer 17

1. Personal relevance
2. Perceived risk/cost
3. Consistent with personal values, needs and goals
4. Pleasant stimuli (music, attractive person, humor)
5. Surprising stimuli (novel and unexpected)
6. Stimuli that is Easy to process

Question 18

Perception (and principles)

Answer 18

The process of determining the properties of a stimulus using at least one of the 5 senses (is context dependent)

Principles

1. Law of closure: tendency to perceive forms and figures in their complete appearance despite the absence of one or more of their parts (organize stimulus into a meaningful form)
2. Perceptual set: the tendency to perceive certain parts of a stimulus but not others (I.e. Santa Clause study) ( the particular parts we perceive are determined by our expectations and feelings)
3. Figure/ground relationship: tendency to separate a whole figure from the background to understand what’s being seen

Question 19

Subliminal influence

Answer 19

Subliminal exposure: exposed to a stimulus that is below threshold for conscious perception

Subliminal perception: something is perceived on an unconscious level

Subliminal influence: it impacts behavior/choice

I.e. mere exposure effect; previous exposure to neutral stimuli leads to more liking

Has potential to influence ppl but has limits

Question 20

Sensory memory

Answer 20

Where we store raw input from all 5 senses

-auditory inputs tend to be stored longer than visual inputs ( visual stimuli can be rescanned, auditory stimuli disappears more quickly)

Question 21

Short term memory

Answer 21

Temporary storage of info for short term retrieval or discard

• need repetition to keep in STM longer or get into LTM
• where first of 2 stages of encoding occurs
• can hold 7 plus/minus 2 objects

Question 22

Encoding

Answer 22

conversion of perceived stimuli into a construct that can be stored in STM( stage 1) or LTM (stage 2)

-is sometimes automatic and sometimes controlled

Question 23

Types of stage 1 encoding

Answer 23

1. Discursive processing: process inputs as words (can lead to overload of words)
2. Imagery processing: process inputs as images (can lead to elaboration of an image: finding meaning in an image)

Both occur when processing sensory memory into STM

Question 24

Long term memory

Answer 24

Permanent storehouse for information
- structures in a semantic/associative network (spreading activation)

2 types

1. Episodic: knowledge about ourselves and our personal past experiences (tend to be sensory abstractions)
2. Semantic: general knowledge about an entity, detached from specific personal experiences

Question 25

Stage 2 encoding (STM to LTM)

Answer 25

1. Recirculating: repeated exposure 2. Rehearsal: actively reviewing and repeating information 3. Elaboration: consciously integrating info with existing knowledge

Question 26

How brands use stage 2 encoding

Answer 26

align brand with positive concepts and comparative advertising - diversify the contexts that trigger recall of the brand (recirculation), include catchy content ( rehearsal), include unexpected content (elaboration) Use of colors shapes and smells

Question 27

Retrieval errors (why memories are recalled inaccurately)

Answer 27

1. Reconstruction in retrieval: we deconstruct info from STM to LTM then reconstruct from LTM back to STM and this reconstruction can lead to distortion of info 2. How info is encoded into the LTM: leveling and sharpening of stimuli when going from STM to LTM - leveling: leaving smaller details out - sharpening: retaining the more “cognitively arousing” details - reconstruction of info into LTM leads to this 3. Flashbulb memories: memories from traumatic events are stored more vividly (we tend to feel confident about these memories but they are misleading 4. Misinformation effect: recall of event becomes less accurate because of post event information (I.e. eyewitness testimony) - when post event info is encoded it can cause ppl to remember the wrong stimulus 5. Sleeper effect: episodic memory is worse than semantic memory thus what you heard (semantic) is separated from where you heard it (episodic) - info gets more persuasive over time

Question 28

Schemas

Answer 28

A set of associations linked to a given concept Types 1. Category based: set of associations for groups of products, brands, people, etc - violating expectations can promote elaboration or lead people to ignore the stimulus 2. Target based schema: schema for a particular product or individual 3. Brand image schema: associations capturing what a brand stands for 4. Script schema: knowledge of the sequence of actions involved in performing an activity

Question 29

Category based expectancies

Answer 29

We expect members of particular groups to be similar Types 1. Exemplars: actual members of a category (pulled from LTM) - attributes of new stimulus are compared to those of multiple known exemplars in a category - I.e. comparing traits of new animal to one’s you’ve seen before 2. Prototype: an abstract average of the members of a given category - represents the most typical member of a category - attributes of new stimulus is compared to those of a single prototype - I.e. comparing a new cat to an average cat (more conducive to quick judgements but less flexible/adaptive)

Question 30

Schema expectations (matching and violating)

Answer 30

We often want products to fit category based schemas (I.e. prefer prototype) But sometimes we want to violate expectations (moderate incongruence)

Question 31

Marketing implications for schemas

Answer 31

1.Consumers make inferences about a product/brand based on how it’s categorized (I.e. Mercedes benz=luxury car thus people infer prices, features, etc) 2. Leveraging category based schemas (I.e. organic cigarettes) - through extensions

Question 32

Licensing extension (with pros and cons)

Answer 32

Licensing: license out use of brand name to other companies -pros: tap into existing production and marketing systems of other companies and get revenue from products under your license Con: weakens licensing control over product (thus less control over brand schemas

Question 33

Co branding (brand alliance) extensions (with pros and cons)

Answer 33

Companies sell hybrid product (one time relationship) Pros: mutually broaden reach of both companies and useful when brand doesn’t have much credibility in certain product categories Cons: may fail if products are too different/ target different markets -potential negative carryover across cobrands (less licensing control)

Question 34

Line extension

Answer 34

Introduce new items within the same category in order to 1. increase number of users 2. Increase degree of usage

Question 35

Brand extensions

Answer 35

Introduce new items within a new category -increases number of uses Risks: - confuse customers - cannibalize core brand sales - hurt brand image of unsuccessful - trigger prisoners dilemma escalation of extensions where no one wins - brands that are seen prototypical if a product category are difficult to extend (I.e. gerber food for the elderly)

Question 36

Keys to a successful extension

Answer 36

- Needs to fit brand concept and resources - needs to have a sustainable advantage on competition - needs to be relevant to consumer needs

Question 37

Overcoming extension challenges

Answer 37

1. When a brand is tightly associated with a certain degree of strength (try super branding/ line extension) 2. When you want to differentiate a new brand but keep strong association with parent (try sub branding... I.e. armani’s sub brands) 3. When you want to clearly differentiate a new brand but keep a soft link to establish familiarity and legitimacy (try endorsement: master brands identity serves as a quality stamp)

Question 38

Attitude

Answer 38

General evaluation that expresses how much we like or dislike something Vary in favorability, accessibility (how easily it can be retrieved from memory), strength, persistence -can be conscious or unconscious

Question 39

How attitudes are formed

Answer 39

1. Mere exposure 2. Inherent preferences (evolution) 3. Direct experience: learning - observational learning - operant (instrumental) conditioning (I.e. skillful complements and promotions) Goal: repeated rewards help develop positive attitudes toward brand 4. Classical conditioning(UCS: song, UCR: happiness CS: product CR: happiness

Question 40

Functions of attitudes

Answer 40

1. Adaptive/adjustive: allow us to socially adjust or gain social approval 2. Self expressive: express who we are as a person 3. Ego defensive: protect our self esteem/ distorting perceptions of the world I.e. people who believe in a just world blame victims I.e. obese consumers discount knowledge of McDonald’s 4. Knowledge function: make the world more understandable and ascribe causes to events - stereotype: mental structures that lead to predictions about people’s characteristics (Allow is to make quick judgements but are often inaccurate)

Question 41

Marketing implications for functions of attitudes

Answer 41

Consumer attitudes serve different functions and knowing them is critical for positioning and advertising one’s brand

Question 42

Implicit vs explicit attitudes

Answer 42

Explicit: reflect conscious beliefs Implicit: mental response that is so well learned that it operates without awareness - measured through IAT, text analysis and facial emotion detection

Question 43

Burberry case takeaways

Answer 43

Before bravo - Burberry lacked 1. variation in designs 2. Consistency (licensing issues) After bravo - targeted man/woman seeking accessible luxury with classic style - cross generational demographic - customers who want accessibly prices products - aspirational customers How? - control over 1. Product line 2. Licensing 3. Company owned retail stores 4. Distributors 5. Price and advertising - implemented line extension (risk control mechanism) 1. Prorsum 2. London (accessible luxury) 3. brit (mass market luxury)