Applied Psychology Quiz #2

Three basic types of needs discussed in class and give an example of each

1. learned need: every person or household should have one

   1. learning to read or ride a bike

2. symbolic need: what the product symbolizes

   1. desire to wear a certain brand of clothing to feel “cool”

3. perceived or created need: ideals, images, emotions

   1. desire to buy a new phone even if your current one still functions well

Understand how Maslow’s Need Hierarchy is used by advertisers

It emphasizes how a product meets more than one need and creates a need and then suggest their product will fulfill it

• basic need —> psychological need —> self-fulfillment need

Understand what is meant by brand loyalty and how changing the features of a product may disrupt this process. How is the story of “New Coke” related to the idea of brand loyalty?

The impact of changes in trademarks, logos, and packaging and changing a feature may disrupt brand loyalty. With “New Coke”, Coca-Cola drastically changed their formula, causing a strong backlash from consumers who felt deeply connected to the original taste and brand’s heritage, demonstrating that brand loyalty often goes beyond just the product taste and includes emotional attachments to a product’s identity and history.

What are some of the research findings related to the effects of music, smells, and co-consumers on purchasing behavior?

• music: slow music increases 38% of supermarket sales

• smells: scented stores thought to have better quality products (congruence between product/scent)

• co-consumers: crowding tends to intensify whatever consumption experience one is having already, heightened levels of arousal

What is credit card debt among college students related to and not related to?

• related to: time orientation - less likely to think about future, the more quickly you can pay off debt

• not related to: impulse buying or financial recklessness, general self-destructiveness, habitual feelings that one cannot control one’s life

What is meant by time poverty? Polychronic activity? How have products evolved to deal with these issues?

• time poverty: a feeling of having less time available than is required to meet the demands of everyday living

  • drive-through, dishwasher

• polychronic activity: being able to do more than one activity at a time

  • smartphones, air-pods

• Advertisers and business owners have been thinking of products that will help alleviate time pressure and makes you able to multi-task

What general emotional states are elicited by different colors?

• red: increased heart rate and appetite, evokes strong emotions

• orange: playfulness and enthusiasm, signifies aggression

• yellow: increases cheerfulness and warmth, optimistic, uplifting and illuminating

• green: alleviates depression, fertility, used to relax in stores

• blue: calming, tranquility, security

• purple: wealth and luxury, beauty and anti-aging

• pink: love, kindness and femininity, used mostly in logos that target women and children

Point of purchase perceptions

How a consumer perceives a product or brand at the moment they are ready to buy it in a store

What role do images, logos, and slogans play in consumer behavior?

• advertisers sell relationships and ideals, they create association between products and positive feelings and needs

• advertisers market products to potential buyers by building brand loyalty

• sell ideas, images, and other stereotypes

  • associations with the product

  • gender stereotypes

AI, Psychology, and Neuro-marketing

• application of neuroscience in marketing

• OCEAN

  • openness, conscientiousness, extraversion, agreeableness, neuroticism

What is conspicuous consumption? How is terror management theory used to explain conspicuous consumption?

• conspicuous consumption: the purchase and prominent display luxury goods to provide evidence of a consumer’s ability to afford them

• terror management theory: may be used to explain it by suggesting humans cope with anxiety of their own mortality by adhering to cultural worldviews and maintaining a positive self-esteem.

How are store locations and loyalty to store format related to purchasing behavior?

• location of the store: the farther a store is the less likely to shop there

• loyalty to store format: keep customers from switching between stores

  • especially for those who spend more money and those who shop infrequently

Why did Grant DePorter pay over $113,000 for a baseball?

He wanted to break the Cub’s curse, and this connects to consumer behavior because it shows how the money didn’t matter to him because he had a purpose for him and the ball