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Chapter 1 Objectives: Consumer Behavior

• Consumer behavior: ongoing process, extending beyond a purchase.
• Consumption includes how sense is made of the world, identity is chosen, and purchases are made.
• People purchase products for their meaning, not just function.
• Identity: multilayered, including personal and social selves.
• Brands help consumers identify companies, products, and values.

Objective 1-2

• Social media has revolutionized word of mouth, creating horizontal communication.
• Consumers have in-group bias, preferring culturally related brands.
• Consumers also seek cultural distinctiveness through brands.
• Transmedia: shift from traditional to integrated media.
• Traditional media platforms have extended to digital media, gaming, and the metaverse.
• Transmedia storytelling: stories told across multiple platforms.

Objective 1-3: Consumption

• Overconsumption leads to waste and environmental issues.
• Circular economies and responsible business practices address these challenges.
• Interdisciplinary foundations of consumer behavior: psychology, sociology, anthropology, and economics.
• User-generated content (UGC) is also relevant.

Table 1.1: Interdisciplinary Research Issues in Consumer Behavior

• Cognitive psychology studies how consumers process brands in the metaverse.
• Clinical psychology explores metaverse experiences' impact on mental health.
• Behavioral economics studies spending habits and incentives in virtual worlds.
• Social psychology studies how brand recommendations are actioned in virtual worlds.
• Sociology studies avatar brand communities in the metaverse.
• Semiotics & Literary Criticism analyzes how metaverse shapes brand meanings.
• Computer Science studies user interface with computer and metaverse
• Anthropology looks at how culture and rituals are maintained in the metaverse

Chapter 3 Objective 3-1: Perception Process

• Perception involves exposure, attention, and interpretation.
• Marketers aim to optimize these stages.
• Exposure: use product placement and targeted ads.
• Attention: Attract and maintain focus with engaging visuals.
• Interpretation: Tailor messaging to cultural and individual expectations.
• Weber's Law: the stronger the initial stimulus, the greater a change to notice it.
• Adaption happens when a stimulus becomes too familiar.
• Relational processing: Stimuli are processed in relation to other events, sensations, and memories.
• Interpretational bias: understanding meaning from a whole image instead of the individual parts
• Similarity principle: group objects that appear similar

Objective 3-2: Sensory Marketing

• Appeals to all five senses to enhance product appeal.
• Examples: Bright colors, signature scents, and sonic branding.

Objective 3-3: Semiotics and Branding

• The use of symbols and cultural codes to build brand identity.
• For example, Nike's swoosh symbolizes athleticism and empowerment.

Objective 3-4: Influence of Cultural and Psychological Factors

• Perceptual Filters: Individual biases shape stimuli interpretation.
• Subliminal Perception: little evidence supports its marketing effectiveness.

Chapter 4 Objectives

• The chapter covers how conditioning results in learning.
• It reviews how products are learned about and consumption practices by observing others.
• It describes how brains process and store information about brands in memory.
• It explains how brand knowledge is organized in memory.

4-1 Conditioning Results in Learning

• Recognizing brand names without using a product is called incidental learning.
• Learning Theories are based on stimulus-response reactions
• Cognitive learning focuses on obervation, problem solving and thinking
• Classical Conditioning: Associating a product with positive emotion
• Family branding, product line extensions makes use of Stimulus Generalization

Conditioning results in Learning

• Many products capitalize on the company name through family branding.
• Marketers add related products into an established brand through line extension.
• Companies can rent well-known names, hoping that associations they hold will transfer.
• Look-Alike packaging creates associations with brands.
• Stimulus Discrimination helps to differentiate between similar stimulus.
• Extinction makes conditioned responses face without reinforcement
• Stimulus-response associations are key, like pairing Coca-Cola adds with happiness
• Stimulus Generalization helps for product lines and family branding
• Operant Conditioning results in Instrumental reinforcement
• Behavior is thus influenced by rewards leading to desirable behaviours

Additional Key points

• Key challenges include the attention overload due to excessive stimuli
• Familiarity can lead to reduced engagement and attention

Cognitive Learning

• Contrasted againt behavioral learning which are not discussed here approaches a set of mental processes
• Focus on observational learning where consumers imitate others

Types of Cognitive Learning

• Focus on remembering with information during the encoding stage
• This is added into the storage stage
• And recalled at the retrieval stage

Memory Systems

• Various levels of memory retention
• Sensory memory, short-term memory, and long-term memory
• Long-term memory stores repetition of data

Saliance of a brand

• Relates to its prominence and activation level in memory
• The Restorff Effect is an example of this

Marketing Applications

• Leveraging memories to enhance brand recall
• Brands occupy a position in consumers minds
• Recall asks consumers to independently think or recognition asks them to recognize brands

Chapter 6

• Aims to explain the functions and components of attitudes
• Aims to describe how we form attitudes
• Aims to understand persuasion in changing attitudes via marketing
• Aims to craft persuasive communication strategies

6.1 Functions and components of attitudes

• Attitudes are lasting and can be applied to people, objects, ads etc
• Functional theories by Daniel Katz describes various functions
• Utilitarian function can relate to awards or punishment
• Value-expressive function can relate to self reflection
• Ego-defensive function can be used for protection against threats
• Knowledge function is the provision of structure and meaning

Marketing Implications

• Utilitarian, highlight benefit
• Ego Defensive, use fear and reassurance
• Value expressive, associate products with identities or values
• Knowledge helps to simplify things Fast and slow thinking relate to cognitive vs affective Two types of dual process thinking Automatic and intuitive (fast) as well as Deliberative and analytical (slow)

Cognitive Focus

• Based on beliefs, and multi-attribute attitude models
• Product characteristics such as reputation are included
• Importance based on product weightage

Affective Focus

• Relates to how moods and emotions shape attitudes

How we Form Attitudes

• Dependent on levels of commitment that vary in attachment
• Dependent on the consistency principle where we need to strive for harmony
• Cognitive dissonace to prevent mismatch

How do Marketers Change Attitudes

• Divided by high vs low involvment products
• High involvment relates to percieved risk and central route to persuasion in slow thinking
• Low involvment products relate to low risk and peripheral route to persuasion

Routes to Persuasion

Central: Careful arguments Quality key

Peripheral Route

• Presentation key
• Relies on emotion and subtle details

Persuasive communication strategies

• Based on The Source and on Persuasion
• Credibility relies on expertise, objectivity and trustworthiness
• Attractiveness is related to its value that is attributed

The Message

• The message is the central tenet of persuasion
• Appeals are either Rational or Emotional
• Rationale focuses on logic
• Emotion evokes feelings

The Medium

• Relies on many types of modern strategies to prevent ad fatigue
• Advertainment integrates content
• Ads blend with the platforms data

The goals for Chapter 7

The learning objectives are:

• What are the ways to make decision
• The type of decision being made
• Ways of engaging in fast thinking
• Context effects

7.1 What are two primary ways in which consumer can make decisions

The three types of decision making are

• Cognitive: use of rational thinking
• Habitual: unconscious automation
• Affective: being instantaneous

The steps in rational decision (slow)

Are:

1. Searching for information for moderate knowledge
2. Evaluation of alternatives in an evoked set
3. There are evaluative critera with determnant attributes"

Compensation is the core principle

1. Decision rules

• Compensatory Rules: shortcommings compensated can be made by strength
• Weighted additive rule: attributes are weighted or evaluated"

Rules in short decisions "

• Non-Compensary Rules: is a product fails just one thing its rejected
• Lexicographic rule: the best is chosen Elimination: The products with specific features is chosen

7.3 Ways in which we are enganged in Fast Decision Making

1. Habitual decision making

• the decisions with little effort are due to ineria

We Make Mistakes Due to Bounded Rationality

Settling for an option is just used due to time

7.4 Context effect

1. Framing and how info is presented has effect on decisions
2. Prospect Theory with gain vs losses
3. Sunk cost fallacy the resistance of wasting paid cost in situations

Prime time

• Priming is the silent influence that goes on when we are uanware if a change is made

Priming cont

Examples such as:

1. Fast music in restaurant
2. Soft music deliberate
3. There is soft and loud

Nudging

• Nudging is made to steer behaviour, and influence others

What are the differences between the steps

1.Nuding will alter environmen, while primming influences through ques

Chapter 8

1. Influence on the shopping experience
2. What is the reliance on shopping increasing?
3. How sharing has impacted the consumer?
4. How climate changed has changed
5. Adaptive patterns"

###8.1 What affects the shop

We need to consider two points

1. Utilitarian shopping:specific purpose to tasks
2. Hedonic: shopping for fun Then the motives Graitifaction, adventures etc"

###Contd Space designed to evoke feelings

Shopping And Digital Assests

• Shopping online has digital platforms that helps with shopping
• Virtual stores
• Payment
• Product reccomendations

Digital assists

Dependent on tools like review and apps

8.3 Sharing economy

• Shifting acess
• Cost saving

We are encouraged to adopt practices for lower impact"

• We are rehtinking disposible