CB Exam Notes PDF

(1) consumer behavior - concept, approaches, and characteristics consumer behavior concept and characteristics CB concept: ​ the complex process of making the decision ​ all the activities that individuals or groups develop when they sele...

(1) consumer behavior - concept, approaches, and characteristics consumer behavior concept and characteristics CB concept: ​ the complex process of making the decision ​ all the activities that individuals or groups develop when they select, purchase, use, and dispose of products/services/ideas/experiences to satisfy needs and/or desires CB characteristics: ​ consists of several activities: ​ complex, multidimensional ​ differs depending on the time → the decision-making process is situational ​ it’s a motivated behavior ​ affects the whole psychological system of an individual (cognitive, affective, behavioral) ​ involves different roles: ○​ initiator of the purchase (e.g. a friend suggests that we need vacations as we look tired, which can be a trigger) ○​ informer (e.g. either the friend or us or a website that tells us the info about the trip (price, destination)) ○​ influencer (e.g. 'let’s go somewhere else', 'no you shouldn’t go', a political barrier) ○​ decider ○​ buyer (e.g. 'i’m booking the trip') ○​ payer (e.g. 'but paying with my parent’s card') ○​ user (e.g. sb else goes on the trip bc i got sick) ​ varies depending on the type of product and its life cycle:  ○​ tangibility (tangible, intangible) ○​ duration (durable, non-durable) ○​ type of purchase (convenience, shopping, specialty, unsought) analyzing a consumer within the marketing discipline marketing orientations/concepts in the company: ​ production, product, selling, societal marketing ​ marketing concept: ○​ research on CB ○​ analysis of the factors affecting buyers ○​ market segmentation ○​ product positioning ○​ offers, prices, distribution channels, advertising ○​ what are the customer’s motivations and intentions? marketing versions: ​ 1.0 → production (important for the product to exist) ​ 2.0 → product (availability, design) ​ 3.0 → customers (market research, importance of target market) ​ 4.0 → digital ​ 5.0 → advanced technologies (especially AI) ​ 6.0 → metamarketing (nowadays) why does the consumer need to be studied? ​ the essence of the marketing concept and marketing management strategic marketing: ​ analysis of the needs of the consumer base → information → development of the profitable product → production phase ​ aimed at specific buyers who differentiate themselves from the competition operational marketing: ​ marketing mix strategies ​ 4P (product, price, promotion, placement) ○​ offer strategies (product, price) ○​ strategies to market (placement, promotion)  ​ aiming at the selected markets in the short and medium-term consumer and marketing strategy: ​ market segmentation ○​ market is made up of groups of customers with similar needs or sought benefits ○​ what do the customers want? ​ their choices rely on the benefits or services expected from the product (not the product itself) ​ each product is a set of attributes/characteristics ​ different products can meet the same need ​ the same product can meet different needs ​ marketing mix: ○​ market research to design the product and price strategies, distribution channel (place strategy), and communication (promotion strategy) approaches when analyzing the consumer behavior ​ interdisciplinary research issue ​ economic approach → utility maximization, budget constraint, demand, buying power ​ psychological approach → need’s satisfaction, motivation, attitude and beliefs, decision-making, emotions ​ sociological approach → cultural norms, class and status, social influence  (2) consumer decision process stages in consumer decision-making problem recognition ​ customer decisions are choices they make in the marketplace as buyers, payers, and users ○​ what, when, from whom, and whether to purchase + how to pay for it types of consumer decisions: ​ simple decisions when the product is: low-cost, frequently purchased, familiar (brand), when we have little time to decide → no research needed, no emotions attached (low involvement), routine response ​ elaborate decisions when the product is: expensive, infrequently purchased, unfamiliar, when we have time to decide → research, high involvement, extensive thought process problem recognition: ​ customer problem - any state of deprivation, discomfort, or wanting (psychological, physical) felt by a person ​ problem recognition - customer’s realization that they need to buy sth to get back to the state of comfort ○​ internal stimulus - consumer realizes the problem themselves (e.g. ‘i have to cut my hair’) ○​ external stimulus - sb else makes us realize the problem (e.g. ‘you should cut your hair’) ​ e.g. car runs out of gas: actual state → bad state ​ e.g. wanting to buy a new phone: actual state → ideal state information search ​ seeking the best option  ​ information search - the process of surveying the environment for appropriate data to make a reasonable decision types of information search: ​ internal vs external search: ○​ internal → own knowledge ○​ external → asking a friend, internet ​ prepurchase vs ongoing search: ○​ prepurchase → high involvement in the purchase, goes on until we find the product that we want to buy ○​ ongoing → high involvement in the product, doesn’t end with the purchase ​ deliberate vs accidental search: ○​ deliberate → purposeful search ○​ accidental → didn’t mean to do it, but found out anyway determinants of the amount of search: ​ familiarity and expertise: ○​ newbies vs experts → those in the middle search the most, experts don't need the research and newbies don’t know where to start  ​ time pressure: ○​ the more time we have to learn about the purchase → the more research we do ○​ cybermediaries → comparison of the products ​ e.g. Trivago (we don’t have to go one by one, we have all the info at once → timesaving solution) ○​ intelligent agents → search history and alternatives, ads of the products you’ve been searching for ​ involvement: ○​ the more involvement, demand, and importance of the purchase → the more search evaluation of the alternatives ​ it’s unlikely there’s one product that satisfies us so we have to choose one which alternative do we consider? ​ awareness set → i’m aware of the brand, but don’t recall it for some reason ​ evoked set → set of brands i can easily recall ​ consideration set → brands we decide on taking into consideration while making the purchase decision awareness evaluation process: (ensuring the brand is in the evoked set) ​ top of the mind → when asked about a given product category, the consumer says the brand name without hesitation ​ recall → consumer needs a bit more time or a leading question to remember the brand name (spontaneous - remember) ​ recognition → ‘which of the brands do you recognize?’ (suggested) which source of information do we use? alternative evaluation: (in the consideration set) e.g. attributes from the most to least important, brand scores from low to high (1-5) non-compensatory: ​ lexicographic - hierarchy, the most important attribute and the highest score  ○​ Adidas scores the lowest in the most important criteria (design) → it’s out of consideration ○​ then in the second most important criteria, Nike scores better than Puma → we should probably buy Nike shoes ○​ draw: we look for further criteria until we select just one ​ elimination by aspects - hierarchy, the most important attribute, and the highest score taking into consideration if the cutoffs are met ○​ imposed cutoffs (e.g. ‘i won’t accept anything that scores less than 5 in design, 4 in quality, etc.’) → Adidas dropped, then Puma, and finally Nike wins ○​ draw: reconsider the brands or cutoffs (lower/heighten the guidelines) ​ conjunctive - no hierarchy of the attributes, but whether or not all of the cutoffs are met ○​ most demanding consumer ○​ no brand: reconsider brands or cutoffs ○​ draw: add another attribute compensatory: ​ simple additive - no hierarchy of the attributes, but select the brand that has the best outcome (meets the most cutoffs) ○​ count the cutoffs the brand meets and the ones it doesn’t and choose the best one ○​ draw: reconsider the cutoffs or brands ​ weighted additive - hierarchy, we multiply 2x2 and sum up all of the multiplied scores of one brand, and then choose which one scores the highest ○​ the most important factor = the highest weight ​ (e.g. 1st most important = 5, 2nd = 4, 5th = 1) ○​ multiplying 2x2 → e.g. Adidas scored 4 in 1st attribute → 4x5=20 ○​ draw: reassess the scores (too harsh, too soft) or add another attribute purchasing process - (not) buying decision determinants of the deviation from the choice: ​ situational effects on CB at the time of purchase: ○​ physical surroundings (e.g. smell, atmosphere) ○​ social surroundings (e.g. friend already has a dress so we don’t want it anymore) ○​ time experience (e.g. queue in the store) ○​ emotional state (e.g. not as excited as we used to be) ​ the shopping experience: ○​ store image, atmosphere, salesperson perception  post-purchase experience (outcomes) ​ decision confirmation: ○​ cognitive dissonance - a post-purchase doubt about the wisdom of the buyer’s choice ​ consumption and experience evaluation: (satisfaction/dissatisfaction) ​ future response - exit, voice, loyalty ​ disposal: ○​ recycle, giveaway, sell, reuse for another purpose (3) social groups and family concept, typology, and characteristics of a social group group: ​ a collection of people in which the members: ○​ define themselves as the group ○​ share certain norms, beliefs, and values that direct the activities ○​ develop some kind of coordinated behavior ○​ are conscious of being a group ○​ interact with and influence each other ○​ knows the boundaries group typology - level of belonging: ​ normative influence → we take the group’s beliefs as a reference (we belong to the group) ​ comparative influence → we compare the group’s behavior to our own (we don’t need to belong to that group)  ​ primary → family, friends, depends on the closeness of the relationship (e.g. neighbors) ​ secondary → classmates ​ formal → coworkers, classmates ​ informal → family, friends ​ aspirational → high level of attraction, you want to become a member of a group (e.g. course you couldn’t enroll to) ​ dissociative → low level of attraction, the group you don’t want to become a member of (e.g. AA, disabled people) functions of the group: ​ integration, normativity, socialization, source of role models ​ construct of identities ○​ social identity - set of behavioral/personal characteristics by which an individual is recognizable as a member of a group (sociological perspective) ○​ self-concept - an individual’s perception of ‘self’ (psychological perspective) ​ actual (real state) ​ ideal (how i’d like to perceive myself) ​ social (how others perceive me) ​ ideal-social (how i’d like others to perceive me) the importance of the reference group ​ reference group - a real or imagined group that has a major impact on how a person thinks, what they want to achieve, or how they act  ​ any external influence that provides social cues types of influences: ​ informational: ○​ person seeks information about various brands from a group of professionals or trusted experts ○​ e.g. seeking help (and information) from real estate agents ​ utilitarian: ○​ person's choice to purchase a specific brand is affected by what their family, friends, or coworkers prefer ​ value-expressive: ○​ person believes that the purchase or using a certain brand will enhance the image others have of them ○​ e.g. we buy sth bc we want to be perceived in a certain way why are reference groups so persuasive? ​ social power - the capacity to alter the actions of others ○​ referent power - influence through admiration or identification ○​ information power - influence through access to valuable information ​ e.g. if i come to the lecture, i know more than people who didn’t come ○​ legitimate power - influence through authority or recognized rights ​ e.g. instructions from the police, firemen ○​ expert power - influence through specialized knowledge or expertise ​ every expert power is information power (but not the other way around) ​ e.g. electronic store worker convinces you to buy one thing instead of the other bc he’s an expert ○​ reward power - influence through the ability to provide rewards ​ e.g. if you come to the lecture, you’d get 2 extra points on the exam ○​ coercive power - influence through the ability to impose penalties or consequences ​ e.g. intimidating peer pressure types of reference groups: ​ brand communities vs consumer tribes: ○​ brand community - a group of consumers who connect over their shared interest in a particular brand  ○​ consumer tribe - a group of people who bond over a common lifestyle and feel a sense of belonging because they are passionate about the same activity or product (e.g. vintage cars, shopping for plants) ​ membership vs aspirational reference groups: ○​ membership - people who the consumer knows (ads: ordinary people - testimonials) ○​ aspirational reference groups - people who the consumer doesn’t know but admire (ads: celebrities as spokespeople) ​ positive vs negative reference groups: (impact on our buying decisions) ○​ avoidance groups - people who want to stay away from others, they tend to avoid buying anything that would link them to those groups ○​ anti-brand communities - groups of people who come together because of a celebrity, store, or brand they dislike ​ reference groups for consumers that enjoy participation: ○​ deindividuation - lost sense of identity within a group – we do what others do ○​ social loafing - groups are less effective than if each person just did their part individually (less effort put into group achievement of the goal) ○​ risky shift - groups are more open to taking risks compared to when individuals make decisions on their own conformity: ​ change in beliefs or actions as a reaction to real or imagined group pressure ​ justification for the influence of the group other aspects of the groups ​ marketeers are no longer the only source of information and they have to deal with powerful consumers (online reviews, influences, WOM, etc.) ​ not all influencers have knowledge or are experts, they just pay what the company is paying them to say opinion leaders: ​ certain people are especially likely to influence others’ product choices, attitudes, and behaviors ​ characteristics of an opinion leader: ○​ experts with knowledge ○​ legitimate power ○​ socially active ○​ similar to the consumer word-of-mouth (WOM) communication:  ​ things other consumers tell us about products (good and bad) often are more influential than the advertising ​ characteristics of WOM: ○​ more reliable form of marketing ○​ social pressure to conform ○​ influences ⅔ of all sales ○​ powerful when we’re unfamiliar with the product category ○​ negative WOM is powerful communities and social networks: ​ SM is changing the way companies and consumers interact ​ online community- a virtual space where people connect, build relationships, and find a sense of meaning, belonging, and identity ​ characteristics of online communities: ○​ conversation, participation ○​ collective interest ○​ behavioral standards ○​ democracy, crowd power family - buying habits and decisions importance of family: ​ many products are consumed by the family ​ its members influence each other in the purchase and consumption decisions (and such aspects are learned within the family) ​ sometimes consumer priorities do not depend on individual decisions but the family ones family life cycle: ​ factors determining how couples spend factors: children, if both of them work → family needs and expenditures  ​ extended family - 3 generations living together ​ nuclear family - mother + father + children ​ household - any occupied housing unit, regardless of the relationship ​ family size → depends on educational level, availability of birth control, and religion ​ family composition: ○​ sandwich generation - adults in their 40s-60s caring for both aging parents and their children ○​ boomerang kids - young adults returning to live with parents due to financial or personal challenges ○​ nonhuman family members - pets treated as family family decision-making: ​ consensual vs accommodative purchase decisions → conflicts ​ autonomic vs syncretic decision (one family member vs both partners) children as decision-makers: ​ consumer socialization - the process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace ​ importance of children in the family: ○​ primary market → kids spend their own money ○​ influence market → parents buy what their kids tell them to buy (parental yielding) ○​ future market → kids grow up and purchase items (4) social strata concept and characteristics of social strata ​ social stratification - the process of power, authority, and prestige distribution among the members of society ​ social strata include social class social strata - social class: ​ status - the position an individual holds within the society, and how it is perceived by the other members of society ​ social class determines spending habits characteristics of social strata: ​ dynamic and open systems ​ social mobility: ○​ horizontal → e.g. change of work within the same class ○​ vertical (upward or downward) → one person doesn't have to stay in the same social class forever  ​ homogeneous behaviors ​ there is an awareness of the group ​ hierarchical positions ​ antagonistic relationships between members of different social classes what determines the social status of an individual? ​ income → purchasing power, lifestyle ○​ not always high income = high class ​ heritage → lifestyle ​ occupation → social prestige (a way to assess the ‘value’ of an individual) ​ training → social ascent measuring methods reputational: ​ the individual is asked to indicate the social strata they think their acquaintances belong to subjective: ​ the individual has to self-position themselves in a social class objective: ​ individuals are classified according to certain variables ​ simple indexes (single-item) ○​ one variable → e.g. income, salary, occupation, profession, education, possessions ○​ ESeC - the European Socioeconomic Classification ​ composite indexes (multi-item) ○​ multiple variables ○​ Hollingshead Index of Social Position (ISP) → occupation, education  ○​ Warner Index of Status Characteristics (ISC) → occupation, income source, type of housing, dwelling area the influence of social class on consumer behavior aspects of CB influenced by social strata: ​ qualitative and quantitative dimensions of consumption ​ frequency and place of purchase ​ sources of information ​ price sensitivity ​ motives and needs ​ personality and attitudes  (5) the environment of the demand, culture, and subculture the influence of the environment on consumer behavior ​ consumer lives with/in an environment ​ demographics and economics have their greatest impact on the macro level of the groups of consumers ​ crucial to the definition of target, segmentation of markets, and analysis of demand ​ impact sequence: environment → CB → definition of marketing strategy economical environment: ​ disposable income, total personal income, consumption and savings ​ private consumption expenditure (e.g. food, clothing, housing, leisure) demographic environment: ​ population, age groups ​ changes in population ​ educational increments ​ structural changes in the family culture - concept, dimensions, characteristics culture: ​ collection of knowledge, experience, beliefs, values, attitudes, meanings, roles, relations, concepts of the universe, and material possessions acquired by a group of people in the course of generations ​ collective programming of the mind that distinguishes the members of one group or category of people from another ​ cultural productions → values, norms, customs, language, behaviors, myths, rituals, trends characteristics of culture: ​ global and social (shared and learned) phenomenon ​ adaptive process (evolving) ​ generates satisfaction dimensions of national culture - Hofestede’s cultural framework: ​ power distance - the extent to which ordinary members of a society accept that power is distributed unequally ​ individualism vs collectivism - people looking after themselves and their immediate family only vs. people belonging to in-groups that look after them in exchange for loyalty ​ masculinity vs femininity - a society where the roles of each gender and values are different (motivation towards achievement and success)  ​ uncertainty avoidance - the extent to which members of a culture feel threatened by uncertainty and ambiguity and, accordingly, try to avoid these situations ​ long vs short-term orientation - the extent to which a society considers time and the importance of the past, present, and the future ​ indulgence vs restraint - the extent to which people try to control their desires and impulses, based on the way they were raised high vs low context cultures - Hall’s cultural framework: ​ high-context cultures: ○​ assign meaning to many of the stimuli surrounding an explicit message ○​ verbal messages have little meaning without the surrounding context ○​ e.g. Latin American, African, Arab, Chinese, Japanese, French, Italian, Spanish, Slavic ​ low-context cultures: ○​ exclude the context stimuli and focus more intensely on the objective (word, sentence, physical gesture) ○​ the message itself means everything ○​ e.g. Australian, Dutch, English, German, Finnish, North American subculture and microculture subculture: ​ a group whose members share beliefs and common experiences that set them apart from other members of a culture ​ depends on: age, race, ethnicity, religion, place of residence age - generational cohorts: ​ similar behaviors between parents and children: BB - Y, X - Z microculture: ​ specialized subgroups within an organization, marked with their languages, ethos, and rule expectations ​ depends on: the smallest units of the organization  ​ short-lived, voluntarily chosen ​ a person can belong to several different microcultures (6) personality and lifestyles concepts and theories of personality ​ impact on the consumer: socioeconomic, geographic, demographic, and cultural variables ​ psychographics - the study of consumer lifestyles, interests, values, attitudes, and personality traits to understand behavior beyond demographics ​ (helps in the process of segmentation, targeting, identifying the opportunities, positioning, and communication) personality: ​ psychological characteristics unique to a human being that influence how the individual responds to its environment ​ represents a stable pattern in the way of thinking, feeling, and acting psychoanalytic theory: ​ conflict between the desire for pleasure and the need to function responsibly ​ ID - instinctual desires; unconscious, impulsive, childlike (pleasure-driven) ​ superego - the opposite of ID, moral conscience ​ ego - balance between ID and reality; rational self trait theory: ​ identifiable characteristics that define a person and distinguish that person from others ​ e.g. extroversion, innovativeness, materialism, self-consciousness ​ personality traits - 16 personality factors questionnaire: lifestyle: ​ system of rules of behavior developed by individuals to meet their goals in life  ​ pattern of consumption that reflects a person’s choices of how to spend her time and money how to analyze the lifestyle of a consumer? ​ approach focused on values → VALS analysis: ○​ need-driven → limited resources, driven by need, not resources ​ survivor → extreme poverty, lack of education, elderly people, restricted opportunities for moving upward ​ sustainer → struggling to make ends meet, many work in black market ○​ outer-directed → response to signals coming from others ​ belonger → conservative, conventional, emotional, conforming, middle-class ​ emulator → ambitious, upwardly mobile, status-conscious, competitive; strive to reach the top of the system, wanting to imitate the lifestyle of the achiever ​ achiever → leaders in the business, professions, and government; capable, independent efficient, hard-working, success-oriented, materialistic, comfort-loving ○​ inner-directed → inner values ​ i-am-me → young, individualistic, narcissistic, dramatic, impulsive ​ experiential → hands-on experience, active participation, attracted to exotic and strange, creative people ​ societally conscious → sense of societal responsibility, activism, passionate, conscious about the world, attracted to simple living and nature ○​ combined outer-inner → best of both worlds ​ integrated lifestyle → fully mature in a psychological sense, self-expressive, self-assured, self-actualizing, self-expressive ​ approach focused on activities, interests, and opinions - AIO questionnaire:  (7) motivation and perception motivation - the need-motive-want process ​ motivation - a process that encourages a person to behave in a certain way, arises when the consumer has a need that they want to satisfy ○​ utilitarian needs → basic needs (bottom pyramid line) → stronger than hedonic ○​ hedonic needs → fun satisfaction ​ need (goal) → motive (drive) → want (desire) → behavior → satisfaction types of motivational conflicts: ​ approach-approach conflict: ○​ a person chooses between two desirable alternatives ○​ solution: both benefits, discount ○​ e.g. you’re thirsty → choice between Pepsi and Coke → company puts both products on sale ​ approach-avoidance conflict: ○​ a person desires a goal but wishes to avoid it at the same time ○​ solution: overcoming the guilt - ‘you deserve it’ ○​ e.g. sb wants to buy a fur coat → ethical issues, they want it and don’t want it at the same time → company helps overcome the guilt ​ avoidance-avoidance conflict: ○​ a person faces a choice with two undesirable alternatives ○​ solution: stressing the unexpected benefits of choosing one option  ○​ e.g. computer breaks down → gotta buy new or repair it → it costs a lot, so both options suck → company stresses the benefits ‘if you buy a new one, you have 1 year of Netflix free’ main mechanisms of defense: ​ forget → e.g. going on a trip, but it’s too expensive ​ attribute to others → e.g. wanting a certain dress, but maybe a friend who’s shopping with me wants it more ​ rationalization → e.g. maybe it’s not a good fit for me focus group - qualitative research: ​ a group of respondents are asked about their motives, perceptions, opinions, beliefs, and attitudes towards something consumption motives: (Ernest Dichter) ​ importance of symbolism of the products to explain the consumption motives ​ power masculinity → car, airplanes, everything electrical, heavy shoes, toy guns ​ security → ice cream (stereotypical comfort food), childhood memories, security cameras ​ eroticism → gloves, sweets ​ moral purity → white products - even bread, sugar, flowers + cleaning products ​ social acceptance → coffee, beauty products ​ individuality → perfume ​ status → carpets, scotch → traditionally, cars, watches ​ feminity → dolls, cookies, silk ​ rewards → chocolate, cigarettes ​ mastery over environment → kitchen appliances, airplanes, boats ​ desalination → home decorations (makes you feel connected) ​ magic mystery → soup (healing power), paint (change the mood of the room) theories of motivation behaviorist → ‘black box’: ​ input (environment) → black box → output (behaviour) drive reduction → primary and secondary drives: ​ primary: thirst, hunger ​ secondary: learned by conditioning, e.g. money expectancy → values: ​ what happens in the minds of individuals ​ the selection of a behavior is determined by a desired ability of the outcome of the behavior (what we expect) values: ​ a belief that some condition is preferable to its opposite ​ consumers are motivated by the purchase of products and services that fit their values Maslow’s hierarchy of needs → different needs with different importance ○​ companies have to identify the level at which their clients are ○​ problems/limitations: ​ the order of the needs is fixed ​ the hierarchy depends on the type of culture ​ a product can meet different needs  level of consumer involvement ​ purchase decisions → buying the same product but in a different context ○​ e.g. buying a wedding gift for a best friend vs for a work acquaintance ​ advertisement - message response involvement → refers to a person’s interest in different marketing communications ​ inertia → low involvement ​ passion → high involvement ​ stable perseverance → equally involved, opposite of situational ​ situational perseverance → e.g. the closer the exam, the higher the involvement the role of psychographics in consumer behavior and marketing marketing applications - self-concept: ​ novel stimuli - unusual cinematography, sudden silences, unexpected movements ​ prominent stimuli – loud music, fast action ​ celebrity endorsers and testimonials (regular people who had experience with the product) the perceptual process ​ a 3-degree process that translates raw stimuli into the meaning ​ characteristics: individual and subjective act, selection, organization, dependent on internal (personality, motivation, experience, learning) and external (culture, environment, marketing stimuli) factors  ​ sensory stimuli → sensory receptors → exposure → attention → interpretation (perceptual process) exposure: ​ when a stimulus comes within the range of someone’s sensory receptors ​ we don’t perceive all of the stimuli ​ absolute threshold - a minimum amount of stimulation a person can detect on a given sensory channel ​ differential threshold - the ability of a sensory system to detect changes in or differences between two or more stimuli ​ subliminal perception - stimuli below the level of consumer’s awareness → they are too weak or too brief to be consciously seen or heard (might be perceived by one or more receptor cells) attention: ​ extent to which processing activity is devoted to a particular stimulus ​ it’s selective ​ personal selection factors - voluntary attention: ○​ perceptual vigilance → measurements that fit our needs (e.g. diet, attention for low-fat products) ○​ perceptual defense → avoiding stimuli that we don’t want to see (e.g. anti-smoker signs) ○​ perceptual adaptation → so used to one stimuli that we don’t even notice it after a certain time ​ stimulus selection factors - involuntary factors: ○​ size, color, position, novelty, movement, humor, silence interpretation: ​ meanings we assign to sensory stimuli ​ mental schema → stimuli organization - Gestalt principles: ○​ figure-ground - differentiating a main object (figure) from its background ○​ proximity - grouping elements that are close to each other ○​ closure - filling in gaps to perceive a complete, whole object  (8) learning and memory concept of learning ​ learning - a relatively permanent change in behavior caused by experience ​ an ongoing process ​ intentional or not (incidental learning → e.g. we go out and learn new words from colleagues) behavioral theories of learning ​ focus on stimulus-response connections → e.g. black-box classical conditioning: ​ stimulus that gets a response is paired with another stimulus that doesn’t cause a reaction by itself ​ components of conditioning: unconditioned stimulus (natural trigger), conditioned stimulus (no effect on its own), conditioned response ​ e.g. Pavlov’s dog experiment → unconditioned (food), conditioned (bell), response (saliva) ​ e.g. CocaCola’s ad → conditioned stimulus - Coke, response - being thirsty ​ conditioning effects: ○​ repetition → extinction: ​ conditioned and unconditioned stimuli need to be paired repeatedly ​ 3 times rule → 1st time we see the ad is for awareness, 2nd time is to provide information, 3rd time is for stressing the benefits (more than 3 times is too tiring) ○​ stimulus generalization → halo effect: ​ e.g. not only bell ring, but phone ring as well ​ halo effect - outcome in one area is affected bc of the actions in another area (e.g. favorable opinion bc of the experience with other products) ○​ stimulus discrimination: ​ ability to distinguish between similar stimuli and respond differently to them instrumental conditioning: ​ an individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes ​ positive and negative reinforcement → increased behavior ○​ e.g. teacher rewards a student for completing homework on time ○​ e.g. driver fastens their seatbelt to stop the annoying beeping sound in the car (more likely to buckle up in the future) ​ punishment → decreased behavior cognitive theories of learning ​ focus on consumers as problem-solvers and stressing the importance of internal mental processes observational learning: ​ learning about products by observing others’ behavior ​ e.g. dance classes cognitive learning: ​ learning comes from memory and the organization of information ​ e.g. problem-solving, learning for the exam (revising, analyzing the notes) ​ people process some information in an automatic, passive way  memory - process and systems ​ memory - the process of acquiring information and storing it over time so it will be available when we need it ​ memories are stored based on associative networks three memory systems: how are memories retrieved when we decide what to buy? ​ retrieval - a process whereby we recover information from long-term memory ​ products help us to retrieve memories from our past ​ marketers may resurrect popular characters to evoke fond memories of the past (nostalgia, retro brand) what makes us forget? ​ time (decay) ​ interference: ○​ proactive - prior learning can interfere with new learning ○​ retroactive - newly acquired information causes us to have trouble remembering old information problems with memory - response biases: ​ memory lapses ○​ omitting ○​ averaging (tendency to generalize) ○​ telescoping:  ​ backward telescoping - thinking of recent events as happening longer ago than they did ​ forward telescoping - remembering older events as happening more recently than they did ​ the illusion of truth effect (remembering sth false as true) (9) attitudes and persuasion attitudes - concept and characteristics ​ lasting, general evaluation of people, objects, advertisements, or issues ​ characteristics of the attitudes: ○​ of a certain direction and intensity ○​ learned and developed through time ​ attitude object - anything (person, product, idea) toward which someone can form an attitude nature and formation of attitudes components of an attitude: hierarchy of effects: how are attitudes formed? ​ classical and instrumental conditioning ​ complex cognitive process ​ theory of cognitive dissonance: ○​ when we are confronted with inconsistencies among attitudes or behaviors, we will take some action to resolve this dissonance ○​ changing the attitude/behavior to restore the consistency ○​ principle of cognitive consistency → individuals strive for harmony between their beliefs, attitudes, and behaviors; inconsistencies → changing attitudes or behavior ​ self-perception theory: ○​ we maintain consistency by thinking that we should have a positive feeling about something if we have bought or used it ○​ we observe our behavior to determine our attitudes ○​ e.g. i maintain a positive attitude towards a subject in uni → i’m always in class? ok i think i like the course ​ social judgment theory: (self-persuasion theory) ○​ we assimilate new information about attitude objects in light of what we already know or feel ○​ acceptance zone → acceptable attitude ○​ rejection zone → unacceptable attitude ○​ non-commitment zone → attitudes neither acceptable nor rejectable ​ balance theory: ○​ how we perceive relations among different attitude objects and how we alter our attitudes so that these remain consistent ○​ a balance between triads: ​ person + their perceptions ​ person + attitude object ​ some other person/object measuring attitudes ​ attitude models identify specific components and combine them to predict a consumer’s overall attitude toward a product or brand Fishbein attitude model: ​ multi-attribute model ​ salient beliefs (important beliefs about the evaluated object) ​ object-attribute linkages (probability that the object has an important attribute) ​ evaluation (of each of the important attributes) ​ marketing applications of the multi-attribute model: ○​ capitalize on relative advantage (importance of the attribute) ○​ strengthen perceived linkages (little-known facts) ○​ add a new attribute (distinguish yourself from competitors) ○​ influence competitor’s ratings (comparative advertising strategy) persuasion and attitude change ​ active attempt to change the attitude ​ basic psychological principles that influence people to change their minds: ○​ authority → easily persuaded by sb with authority ○​ scarcity → items are more desirable by consumers when they’re limited (e.g. special limited offers, one-time possibility) ○​ reciprocity → we’re more likely to give sth if we first receive sth  ○​ consistency → we’re more likely to do sth if we showed a specific attitude beforehand ○​ liking → we tend to agree with those who we like ○​ consensus → we consider what others do before we decide what we’re supposed to do (e.g. we donate money if we see others do it) considerations for marketers: ​ the source → credibility, competence, sincerity ​ the message → pictures vs words (visual vs verbal communication), message frequency, type of message (emotional vs rational, humorous, fear, and sex appeals)  (10) organizational buyer behavior organizational buying vs consumer buying: ​ more people involved (buying in volume vs individuals, families) ​ precise specifications (e.g. tech or quality standards) ​ impulse buying is rare (structured, planned) ​ decisions are often risky (impact on business operations) ​ money volume is substantial (large budget and transactions) ​ emphasis on selling (B2B) organizational buyer decision process: