Consumer Insights Midterm 1

The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, and experiences to fulfill needs and desires

Consumer Behavior

What do individuals select, purchase, use, or dispose in consumer behavior?

Products, services, ideas, experiences

What does consumer behavior fulfill?

Needs and desires

What actions do individuals partake in with consumer behavior?

Select, purchase, use, or dispose

Why learn about consumer behavior?

Makes for good business

What are the three parts of market segmentation?

Demographics, Psychographics, Behaviors

Age, Gender, Family Structure, Education, Social Class, & Income, Race & Ethnicity

Demographics

Lifestyle, AIOS (Activities, Interests, Opinions)

Psychographics

Database Marketing & Relationship Marketing (rewards)

Segmenting by Behaviors

What makes up the 80 of 80/20 rule

Sales, traffic, leads

What makes up the 20 of the 80/20 rule

Efforts, customers, products

Stages of Consumption Process

Prepurchase, Purchase, Postpurchase

Perception Model

Exposure, Attention, Interpretation

Suggests that the stronger the initial stimulus the greater change required

Weber’s Law

People value something they already own more than something that they do not yet own.

Endowment Effect

The strategic use of a fragrance diffused at consumer’s touchpoints

Smell

A form of sensory marketing that we may see in food, detergents, and more

Scent (Olfactory) Marketing

75% of emotions are based on…

smell

83% of advertisements appeal to…

the visual scene

Examples of Scent Marketing

Bath and Body Works, Disney, candles

Every store smells the same no matter where you are

Billboard Scenting

The process by which the word sounds influences our assumptions about what it describes and attributes

Sound symbolism

Examples of Sound symbolism

Ritz, Rocky Road, Lululemon, Volvo

What is a key feature of sound marketing?

Repetition

More stimulation

High tempo

More relaxing

Low tempo

Less sensitive to high frequency as we age

Age Differences

Tone or pitch of sound

Frequency

Nationwide, State Farm, Goldfish, Kars 4 Kids, Netflix, Apple Macbook

Examples of Sound Marketing

Casual, unintentional, effortless

Incidental Learning

Disregard what’s going on in our minds

Behavioral Learning

Tendency of a stimulus similar to a conditioned stimulus (CS) to evoke similar, conditioned responses

Stimulus Generalization

Example of Stimulus Generalization

Bells or keys

Leveraging stimulus generalization (“me too!”) - look like name brands

Halo Effect

Lending an established brand name to a new venture, refers to one brand allowing another brand to use its name, logo, character, or mascot in exchange for negotiated fee

Brand licensing

Example of brand licensing

University of Kansas

Look alike branding, deliberately hiding a product’s true origin (hiding the stimulus)

Masked branding

What do you think of these products?

Product line/category extension

Example of product line/category extension

Toms

Types of Stimulus Generalization

Family branding, product line/category extension, brand licensing, masked branding

Perform behaviors that produce positive outcomes and avoid negative outcomes, behavior is shaped by rewards

Instrumental conditioning

We learn to ____ behaviors that lead to positive outcome, and learn to _____ behaviors that lead to negative outcome

perform, avoid

Types of Instrumental Learning

Positive Reinforcement, Negative Reinforcement, Punishment, Reinforcement

To add, present, provide 

Positive Reinforcement

Strengthen a behavior that avoids or removes a negative outcome, to remove and take away

Negative Reinforcement

Behavior decreases in the future

Punishment

Behavior increases in the future

Reinforcement

Show ads one at a time and ask if they have seen them before…

Recognition

Ask consumers to independently think about what they’ve seen without being prompted

Free recall

Art of conveying information through a structured sequence of events: conflict, characters, resolution, connect with audience emotionally and intellectually

Narrative Storytelling

Example of Narrative Storytelling

State Farm ad

Moving information from short-term memory to long-term memory

Elaborative Rehearsal

Strategy of associating a target stimulus with other information at the time of encoding, creating meaningful associations

Elaborative Rehearsal

Stands out, captures people attention, transfer information to long-term memory

Von Restorff Effect

Types of Memory

Sensory, short term, long term, measurement

Capacity for us to story ______ information is really high

Sensory

Chunking, combine information in groups/units

Short term memory

Attitudes, motivations, perceptions, personality, lifestyle, decision process

Cognitive Learning Theory

What is the internal learning process?

Cognitive Learning Theory

1. Processing and storing information

First Step of Observational Learning Process

2. Learn about products by observing others’ behavior

Second Step of Observational Learning Process

Attention, Retention, Production Processes, Motivation

Observational Learning

New reward is on your card! A free cup of soup every day in September.

Frequency Marketing

Pavlov

Classical Conditioning

Skinner

Instrumental Conditioning

When a stimulus initially elicits a response, it’s paired with another stimulus that usually doesn’t elicit a response on its own

Classical Conditioning

Classical Conditioning

Unconditioned stimulus, unconditioned response

1. condition behavior using consequences

Instrumental Conditioning

Change in behavior that caused by experience

Learning

Types of Learning

Simple and complex

Steps of Learning

Learned Connections, Memories of brands and products, Brand Loyalty

Discounts at grade level, increasing product price without consumers noticing do it at smaller scale

Examples of Weber’s Law

Multisensory, fantasy, & emotional aspects of consumer interactions with products

Hedonic consumption

Hedonic consumption is ________ over functional

Symbolic

Emotional sensory

Hedonic needs

Rational and practical

Utilitarian Needs

People buy products not only for what they can do, but also for what they mean. 

Symbolic over functional

Who are internal influences?

Consumers as individuals

Perception (sensory marketing), Memories, Motivations and Affect, Personality & Lifestyles & Values

Internal influences

Decision making process, Heuristics, Attitude and persuasion

Consumers as decision makers

Social Groups, Group influence, Opinion leadership and power

Consumers within social and cultural settings

Who identifies a need or desire, makes a purchase, uses & disposes of the product

Consumer

What do we consume?

Ideas, products, experiences

Examples of ideas and products

keto foods, kombucha

Examples of experiences

rock climbing

How does a consumer decide that he/she needs a product? What are the best sources of information to learn more about alternative choices?

Consumer Prepurchase

How are consumer attitudes toward products formed and/or changed? What cues do consumers use to infer which products are superior to others?

Marketer Prepurchase

Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer?

Consumer Purchase

How do situational factors, such as time pressure or store displays, affect the consumer’s purchase decision?

Marketer Purchase

Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this act?

Postpurchase Consumer

What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and influence their purchase decisions?

Postpurchase Marketer

Who makes up the target market?

Heavy users

Marketers influence preferences for movie and music heroes, fashions, food, and decorating choices

Popular Culture

Types of Consumer-Brand Relationships

Self-concept attachment, nostalgic attachment, interdependence, love

Sight

Eyes

Smell

Nose

Sound

Ears

Taste

Mouth

Textures

Skin

Steps of Sensory Marketing

Exposure, Attention, Interpretation