Human Resource final

Chapter 8:
The source: origination of the communication

• Like sources to be attractive and credible 

• Need to like the spokesperson

• Need to feel the spokesperson is authentic

• Ex. the rock for workout equipment

Source attractiveness: perceived social value of source
– Physical appearance
– Personality
– Social status
– Similarity

Source Credibility
• Source’s perceived expertise, objectivity, or trustworthiness
• Consumers’ beliefs that communicator is competent and provides competitor information
• Credible source is persuasive when consumer has no formed opinion about product
• Endorsement contract = large profits
• Native advertising

Building Credibility
• Credibility can be enhanced if the source’s qualifications are perceived as relevant to the product being endorsed.
• A consumer’s beliefs about a product’s attributes can be weakened if the source is perceived to be the victim of bias in presenting information.

Types of appeal:

• Sex (mainly look at sex appeal over product message)

• Humour (some cultures or people don’t have the same humour or again forget the message)

• Fear (can only work depending on the message) 

Rational appeal: surrounded around thinking and cognition ex. Lysol 99.9%

Emotional appeal: to strike emotion within the consumer ex. Unicef

Visual appeal: you can process an image faster than text

Chapter 9:

Perceived risk
• Belief that product has negative consequences
– Expensive, complex, hard-to-understand products
– Product choice is visible to others (risk of embarrassment for wrong choice)
• Risks can be objective (physical danger) and subjective (social embarrassment)

The 5 Types of Perceived risk:

• Psychological (is the product and myself aligned)

• Monetary (possibility of losing money on the stuff you buy)

• Social (worried about what people will think)

• Physical (if the product or service could kill/hurt you)

• Functional (if the product doesn’t work as advertised)

Internal versus External Search
• Internal search
– Scanning memory to assemble product alternative information
• External search
– Obtaining information from ads, retailers, catalogs, friends, family, people-watching, Consumer Reports, etc.

Exemplar products
– Brands strongly associated with a category “call the shots” by defining evaluative criteria
– But “moderately unusual” products stimulate more information processing and positive evaluations

Chapter 10:

Market Maven: Actively involved in transmitting marketplace information of all types

Surrogate consumers: Hired to provide input into purchase decisions

Conformity: refers to a change in beliefs or actions as a reaction to real or imagined group pressure

• Reactance: is the negative emotional state when someone is threatened with a loss of freedom

Word-of-Mouth Communication
WOM:
Product information transmitted by individuals to individuals
– Thought to be more reliable than traditional advertising
– Social pressure to conform
– Influences two-thirds of all sales
– We rely upon WOM in later stages of product adoption

- buzz(good)
- Powerful when we are unaware of product category
- Yelp reviews

Chapter 11:

Queuing theory: mathematical study of waiting lines

• Waiting for product = good quality

• Too much waiting = negative feelings

• Marketers use “tricks” to minimize psychological waiting time

Showrooming: is increasingly popular – consumers visit a store to see a product firsthand then purchase online

The Evolution of Product Ownership: Sharing economy or Collaborative consumption

• The movement away from the purchase and ownership of tangible goods toward other models that allow for temporary ownership

• Provides the benefits of the product when needed, but to not have to worry about:

  • Initial capital cost

  • Maintaining and storing the product

  • Disposal issues
    

Chapter 12:

The family life cycle (FLC) concept combines trends in income and family composition with changes in demands placed on income

• As we age, our preferences/needs for products and activities tend to change

Achieved Status: Earned through hard work

Ascribed Status: Born with a silver spoon

How Do We Measure Social Class?
• It is difficult to measure social class complexities
• Index of Status Characteristics and the Index of Social Position developed by August Hollingshead
• Blishen – Socioeconomic index for Occupations in Canada may be used when occupation is the most appropriate variable to use to collect information on socioeconomic status

Problems with measuring social class:

• It is tough to measure social class

• Increasing anonymity in our society

  • The reputational method is virtually impossible to implement today (can use demographic data and subjective impressions)

• Status crystallization

  • Impact of inconsistency on self and social behaviour

Norms: Rules dictating what is right or wrong

Enacted norms: Explicitly decided on (e.g., green light equals “go”)

Crescive norms: 

• Customs: Norms handed down from the past that control basic behaviour

• More: Custom with a strong moral overtone

• Conventions: Norms regarding the conduct of everyday life

  • All three crescive norms combine to define a culturally appropriate behaviour

Social norms: indicate expected behaviours in a situation by a group or individual

Descriptive norms(descriptive norm): norms that convey what others are doing

Injunctive norms(morally right): norms that convey what others think you should do

Cultural Formula
Certain roles and props often occur consistently
• Mass culture churns out products for a mass market
– Aiming to please average taste of undifferentiated audience
– Certain roles/props often occur consistently
 e.g., romance and detective novels
• Recycling of images
– Creative subsystem members reach back through time for inspiration (“remix” the past) “Spiderman”

Creolization: In business terms, creolization refers to the process by which distinct cultural elements combine to create new hybrid forms. This often occurs in consumer behaviour when brands adapt their products and marketing strategies to resonate with local cultures while maintaining connections to their original brand identity. It underscores the importance of cultural sensitivity in marketing and product development, as businesses navigate diverse global markets.