Marketing Psych Midterms PDF

PSY 45 - MARKETING PSYCHOLOGY MIDTERMS INTRODUCTION TO MARKETING SELF-ACTUALIZATION PSYCHOLOGY is achieved once you've hit your full MARKETING PSYCHOLOGY: incorporating a range potential. of psychologic...

PSY 45 - MARKETING PSYCHOLOGY MIDTERMS INTRODUCTION TO MARKETING SELF-ACTUALIZATION PSYCHOLOGY is achieved once you've hit your full MARKETING PSYCHOLOGY: incorporating a range potential. of psychological principles into one's content, the highest layer where one's aim is to marketing, and sales strategy. (Canva, 2022) find his/her passion and purpose in life, finding meaning, or leaving a legacy. One key part of being a great marketer is an according to Maslow, he believes that a understanding of how (and why) people think person must master the previous needs and act the way they do. before achieving the final step. UNDERSTANDING BASIC HUMAN NEEDS KEY PRINCIPLES OF HUMAN BEHAVIOR ABRAHAM MASLOW: introduced the world to his A big part of every marketer's job is "Theory of Human Motivation" in 1943. understanding how and why our prospects in modern-day era, Maslow's theory became behave the way they do. known as "Maslow's Hierarchy of Needs". We'll dive into some theories that can be applied to marketing to help you reach your target buyers more effectively. PRIMING Technique in which you're exposed to PHYSIOLOGICAL NEEDS one stimulus, and it affects how you respond to another stimulus. the most basic human needs required to In marketing, you could help people actually survive. remember key information about your This layer encompasses our need for brand -- and maybe influence their food, water, sleep, oxygen, buying behavior. temperature, and reproduction. In a study by Naomi Mandel and Eric J. Johnson, researchers manipulated the SAFETY NEEDS background design of a website to see if it would affect consumers' product involve feeling both physically safe choices. (health) and also financially secure - Participants were asked to choose (well-off) – essentially whatever it takes between two products in one to live comfortably. category (like a Toyota vs. Lexus). Examples include being healthy, having According to Psychology Today, "they a securely locked home in a safe found that visitors who had been primed neighborhood, obtaining job security on money (the website's background was with insurance and a savings plan, and green with pennies on it) looked at price feeling free from stress and violence. information longer than those who had BELONGING (AND LOVE) been primed on safety." "Similarly, consumers who had been most humans value other human primed on comfort looked at comfort interaction including family, friendship, information longer than those primed on and intimacy. money." we want to feel that we are loved and that RECIPROCITY we belong to a group (e.g. school, work, sports teams, etc). Introduced in Dr. Robert Cialdini's, ESTEEM "Influence: The Psychology of Persuasion". the next step where one's goal is to feel A principle which states that if someone respected and valued within the does something for you, you'll community. naturally want to do something for we all wish to achieve so that we can feel them. important and adequate. Example: Greenwich's "Dippers" examples include: job promotions, The UK Behavioural Insights Team found raises, and recognition for great work. that 11% of people were willing to donate an amount worth one day's salary when they were given a small gift of candy while PSY 45 - MARKETING PSYCHOLOGY MIDTERMS being asked for a donation, compared to personalized email to people who haven't 5% that were just asked for a donation. registered yet to remind them that there In marketing, provide your audience a are only X number of tickets left since so free "gift" first, before asking something many people have registered. from them in return. (e.g. Handwritten ANCHORING notes, branded sweatshirt, exclusive ebook. free desktop background). People base decisions on the first piece of Not only will people be more willing to information they receive. follow through with your request, but This marketing principle is best used by you'll be portraying your marketers who are running low on company/business in a positive light, sales. establishing brand loyalty, and building You'll want to clearly state the initial a community of brand evangelists. price of the product (this is "setting" the PEER COMPARISON AND SOCIAL PROOF anchor, and then display the sale price right next to it. Peer comparison is connected to the theory of social proof – people will adopt THE BAADER-MEINHOF PHENOMENON the beliefs/actions of a group of people AKA "frequency illusion". they like or trust. The theory of social proof is also known It starts happening after you encounter as the "me too" effect. something for the first time, and then you One easy way to make the most of social start noticing it cropping up in everyday proof is your blog. Use social sharing and life. follow buttons that display the number of Example: Suddenly you see ads for the followers your accounts have or the product every time you watch TV. When number of shares a piece of content has. you go to the grocery store, you spot the If those numbers are front and center product on an aisle. Also, all your friends and you already have a few people have all the products. sharing your post, people who stumble on your post later will be much more According to PS Mag, this phenomenon is caused likely to share. by two processes: DECOY EFFECT 1. Selective Attention: kicks in when you're struck by a new word, thing, or idea; You'll often see this effect in pricing then, you unconsciously keep an eye out models -- one price point is included to for it. As a result, you find it surprisingly entice you to choose the most expensive often. option. 2. Confirmation Bias: reassures you that If you're looking to increase conversions each sighting is further proof of your on a landing page with two options, you impression that the thing has gained might want to add a third. It could help overnight omnipresence. increase the conversion rate of the option you'd really like people to take. LOSS AVERSION Situation #1: You are looking to buy a premium subscription with Netflix. A marketing principle which states that Among the app's three package deal once someone has something, they really options, which would you like to don't like to lose it. purchase? "People don't like to lose what they've already gained." SCARCITY Loss aversion could be a significant factor in marketing freemium products This marketing principle goes back to the and adoption. simple formula of supply and demand: For example, you could ungate a feature The rarer the opportunity, content, or for the free version of your product for a product is, the more valuable it is. Using certain amount of time. After that time scarcity as your marketing principle period is up. that feature could be requires extra caution. removed unless you upgrade to become a This marketing principle is especially paying customer. powerful in event marketing. Example: if you're looking to increase ticket sales, it might be worth sending a PSY 45 - MARKETING PSYCHOLOGY MIDTERMS FOOT-IN-THE-DOOR TECHNIQUE One way to do it is by grouping similar topics together-- either under numbered A bond forms between the requester and bullet points or with different header the requestee during the small request, sizes which makes them more likely to comply to a bigger request. VERBATIM EFFECT You're more likely to get a big "yes" from someone if you get a small "yes" from A cognitive bias that causes people to them first. remember the gist of the information, In their famous 1966 experiment, which is its general meaning, better than Freedman and Fraser sent someone they remember the exact form. around to ask people to place a small Example: Headlines card in a window of their home supporting safe driving. Two weeks later, THE NATURE AND ROLE OF AFFECT IN the same people were asked by a different CONSUMER BEHAVIOR person to put a large sign in their front ON AFFECT: FEELINGS, EMOTIONS AND yard advocating safe driving. MOODS The result: 76% of people who agreed to AFFECT the first request now complied with the more intrusive request. an internal feeling state. genuine subjective feelings and moods ENVIRONMENT EFFECT (Russell and Carroll, 1999). ex. 'I'm feeling sad' instead of 'The People's decisions are influenced by crusades were a sad chapter in human subconscious environmental cues. At history.' most consumer research on times, these cues are strong enough to affect deals with moods. influence the decisions we make by recalling past memories, attitudes, and MOODS predispositions to a certain topic. Meredith and Wheeler (2008) found that thought of as low intensity and diffuse different polling environments impacted affective states. how people voted. An individual experiences the good or For example: 56% of voters voted for a bad without necessarily knowing quite pro-school budget increase when voting why. in a school, compared to 53% of voters mood states also track our bodily energy who voted in a location that wasn't a levels, our daily circadian rhythm, and school. our general wellness or illness. This helps Additionally, the temperature of your us make more conscious decisions. physical environment actually makes a EMOTIONS big difference. The theory called the TEMPERATURE PREMIUM EFFECT is that are much more differentiated and physical warmth elicits positive emotions provide more attitude and behavior- (or "emotional warmth"). specific information. EXPECTED VS. SURPRISE REWARDS specific emotions can produce mood-like effects (e.g. being angry can affect a To use this in marketing, try providing pattern of behavior). your customers with surprise coupons or deals, rather than a promotion that exists EXPERIMENTAL MANIPULATION OF weekly and at the same time each week. AFFECTIVE STATES Rewards may seem like a great idea, but There is no single best option among all sometimes they can backfire. potential techniques. Different techniques raise different CLUSTERING issues in terms of potential confounds, control for intensity levels, Involves grouping and clustering the data reliability, demand characteristics, and within marketing into distinct clusters of motivational requirements. categories. (ex. receiving an unexpected gift - a When you're creating marketing content, common manipulation of positive mood) keep clustering in mind. How can you CONTENT-RELATED CONFOUNDS: deisgn and lay out your content to increase memory retention? manipulations that involve exposure to a PSY 45 - MARKETING PSYCHOLOGY MIDTERMS common affect-inducing stimulus across and long-term memory for this participants. experience. PERSONAL EXPERIENCE METHOD: Emotional intensity is no guarantee of requires relatively high participant memory accuracy, however. motivation; otherwise, the manipulation tends to be weakened. THE STRUCTURE AND ASSESSMENT OF AFFECT PHYSIOLOGICAL AND COGNITIVE Researchers with primary interest in ANTECEDENTS OF EMOTIONS affective aspects of stimuli (ex. JAMES-LANGE THEORY advertisements and how people describe their affective responses to them) have held that emotional stimuli elicited bodily been less interested in the underlying responses, that is, peripheral activity (e.g. dimensionality of affect. They rely on heart rate, blood pressure). specially constructed inventories of mood these bodily responses were translated and emotional terms. fairly directly into conscious differences RICHINS (1997) in emotional experience (e.g. fear versus anger). conducted an extremely comprehensive SCHACHTER AND SINGER analysis of the emotion measures used in consumer research. showed that peripheral arousal (via She identified a list of 175 emotion terms injections of either epinephrine or a that had been used in consumer placebo). only differentiated an emotional research. response from merely cognitive She supplemented this list by prompting responses. open-ended self reports of positive and while research supports the role of negative feelings. arousal in the experience of relatively Affect Taxonomies in Consumer intense emotions, cognitive processes Research play a major role and have been shown to Underlying dimensions: The bipolarity of alter the experience. affect More basic research on the structure of THREE-PHASE DYNAMIC MODEL affect attempts to identify relationships among two primary components of affect: activation of a mental concept (e.g identification PLEASANTNESS and of a flashing red light) produces a largely AROUSAL/ACTIVATION. unconscious and very rapid, sensory-level affective response. UNDERLYING DIMENSIONS: THE BIPOLARITY 1. PHASE ONE EMOTIONAL RESPONSES: OF AFFECT interrupt other cognitive processes, RUSSELL AND BARRETT (1999): orient attention, and bring resources to bear on instigating stimulus. indicate that affective structure actually 2. PHASE TWO EMOTIONAL RESPONSES: the falls somewhere between a classic simple cognitive system attaches somewhat structure in which the variables cluster greater meaning to the stimulus by in dense groups around labeled axes and automatically extracting easily processes a true circumplex stimulus information and associating it with experienced pleasantness/unpleasantness and arousal. 3. PHASE THREE EMOTIONAL RESPONSE: affective experience results from collaboration, taking into account context and previous experience. THE PANAS SCALES: COMBINING VALENCE AND ACTIVATION MEMORY FOR AFFECTIVE EXPERIENCES Consumer researchers rely heavily on the positive and negative affect scales of the PANAS. There is considerable evidence that the arousal intensity of an affective experience increases people's immediate PSY 45 - MARKETING PSYCHOLOGY MIDTERMS While this instrument has been useful in many transfer" in consumer research and studies, there are two significant issues that marketing. consumer researchers should consider. "HOW-DO-I-FEEL-ABOUT-IT?" HEURISTIC a) The two scales do not cover the full range of positive and negative affect. a process in which to evaluate a target, b) Inartful choice of labels. people may consciously inspect their feelings to see "how they feel" about it? some research indicates that the heuristic is also used antipactorily in consumer decision making. PROPERTIES OF EVALUATIONS AND DECISIONS BASED ON INTEGRAL AFFECT It is widely accepted that, in general, MIXED EMOTIONS judgments and decisions based on WILLIAMS AND AAKER (2002): integral feelings are reached more rapidly than are comparable judgments employed either happy, sad, or mixed and decisions based on descriptive emotional appeals by combining the inputs. same picture with different It is also widely accepted that judgments characterizations. and decisions based on integral affect Authors demonstrated that mixed generally require less processing feelings are more likely when individuals resources. are able to place themselves within a Evaluations and decisions based on protective (detachment) frame: "An ideal integral affect also tend to be myopic. attachment frame gives people the ability A lesser-known property of evaluations to increase psychological distance from based on integral affect is that they can the main actors of the movie, while still exhibit relatively high consensus. absorbing the impact of the scenes". Evaluations and decisions based on integral affect additionally tend to be THE ROLE OF AFFECT IN CONSUMER sensitive to the presence or absence of JUDGMENT AND DECISON MAKING affect-producing stimuli but relatively It is useful to distinguish three types of affect in insensitive to further variations in consumer judgment and decision making. magnitude of these stimuli. Similarly, evaluations and decisions 1. INTEGRAL AFFECT: refers to affective based on integral affect are relatively responses that are genuinely insensitive to probabilities, except for the experienced and directly linked to the presence or absence of uncertainty. object of judgment or decision. Finally, evaluations and decisions based 2. INCIDENTAL AFFECT: refers to affective on integral affect tend to have a high experiences whose source is clearly degree of internal coherence. unconnected to the object to be evaluated. 3. TASK-RELATED AFFECT: lies somewhere between integral and incidental DETERMINANTS OF RELIANCE ON INTEGRAL affect. It refers to affective responses AFFECT that are elicited by the task or process of Consumers tend to rely on affect more when they: making judgments and decisions. a) their motivation to process information is UNDERLYING PROCESSES low, EVALUATIVE CONDITIONING b) they are distracted, cognitively constrained, or under time pressure, the transfer of evaluative meaning across c) other bases of evaluation are ambiguous, stimuli that are presented or, simultaneously. d) they lack expertise in the target domain. a close proximity between a target and an integral feeling experience may result in Certain high-involvement decisions (ex. who to the evaluative meaning of the feelings marry or which house to buy) often seem based being carried over to the target -- a on affect. mechanism sometimes called "affect PSY 45 - MARKETING PSYCHOLOGY MIDTERMS Affective responses to the target are perceived to magazine) generally has a congruent be more relevant under the following conditions: influence on consumers' evaluations of the ad but less influence on their a) when the consumer has experiential evaluations of the advertised brand. motives, Gift wrapping can also enhance the b) when the judgment or decision is recipient's evaluation of the gift by inherently affective, elevating the recipient's mood. c) when the consumer makes the decision Even the mere action of browsing a series for himself/herself as opposed to of attractive options may elevate a someone else, consumer's mood and result in d) when the consumer is promotion-focused assimilative effects on subsequent as opposed to prevention-focused evaluations. e) when the consumer generally trusts his "AFFECT-AS-INFORMATION" or her feelings. HYPOTHESIS: affect is often seen as EMERGING RESEARCH ON ANTICIPATORY having information value. AND ANTICIPATED INTEGRAL AFFECT REPRESENTATIVENESS PRINCIPLE: people ANTICIPATORY FEELINGS: actual feeling were made aware of the actual source of their affective state. experiences that arise during the decision process in the course of MODERATORS OF CONGRUENCY EFFECTS evaluating a target object. OF INCIDENTAL AFFECTIVE STATES - Although they may be subtle, anticipatory feelings are genuine RELEVANCE PRINCIPLE: even when people assume with distinct emotional quality. that their feelings are representative, they do not - An important type of anticipatory seem to use them unless they perceive their feeling is the fear response. feelings to be a relevant basis for a specific ANTICIPATED/EXPECTED AFFECT: judgment or decision. predictions about potential affective BEYOND SIMPLE VALENCE CONGRUENCY consequences of the decision. PREDICTED UTILITY: type of affect where Sometimes, incidental mood states interact with the target object to produce people are posited to make choices based evaluations that are configural on the predicted hedonic (judgment-specific) rather than strictly consequences of the various options. mood-congruent. These predictions appear to be strong determinants of risky choice in gambling COGNITIVE-COMPLEXITY HYPOTHESIS: tasks. under high arousal, people's LEVENTHAL (1970): argued that threat- representations of target objects become simpler. related cues instigated both a problem- solving process ("danger control") and a EFFECTS OF INCIDENTAL AFFECT ON process that focused on threat JUDGMENT AND DECISION PROCESSES avoidance ("fear control"). Incidental affective states can also influence the "RISK-AT-FEELINGS" HYPOTHESIS: process through which these judgments and subjective estimates of risks are largely decisions are made. The nature of these based on anticipatory feelings elicited influences seem to depend on: by the threat. a) take longer to verify logical inferences, CONGRUENCY EFFECTS OF MOOD AND b) scan alternatives in a more haphazard OTHER FORMS OF INCIDENTAL EFFECT fashion and select options without Objects are typically evaluated more considering every alternative, favorably when the evaluator is in a good c) commit more errors in analogical mood than when the evaluator is in a bad problems, mood. d) process persuasion arguments less AXELROD (1963): observed that, after thoroughly. viewing a depressing television documentary, consumers evaluated a Compared to individuals in a neutral mood, variety of products more negatively than individuals in a good mood have been found to: they did before they saw the a) categorize objects more broadly, documentary. b) generate more creative answers in Incidental affect elicited by the media response-generation tasks, context of an ad (TV program or PSY 45 - MARKETING PSYCHOLOGY MIDTERMS c) perform better in problem-solving tasks The interaction between motivation and that require ingenuity, affect is bidirectional: d) solve a multi-attribute decision problem 1. affective states activate goals, more efficiently and 2. goal pursuit (achievement, Positive mood individuals are more likely to blockage, progress rate, etc.) commit the "fundamental attribution error". triggers specific affective reactions. ADAVAL (2003): his studies show that, under positive mood, brand names (and their STRENGTH OF THE SIGNAL, APPROACH, associated knowledge structures) have greater AND AVOIDANCE influence on product evaluations than under negative mood. POSITIVITY OFFSET: when affective signal is at zero (in terms of motivational input), Sad moods signal to the individual that the there is a weakly positive tendency situation is problematic and requires a more approach (in terms of motivational vigilant form of processing. Good moods, on the output). other hand, signal that the situation is benign While goal achievement and harm and allows a more nonchalant form of processing. avoidance are particularly responsive to affective signals, hedonism (the emphasis "MOOD AS INPUT" HYPOTHESIS: when the on feeling good) can be a default goal. instruction was to keep working until the task was no longer enjoyed, a negative mood was AFFECT REGULATION IN JUDGMENT AND construed as dissatisfaction with one's effort, DECISION MAKING producing an early stop. NEGATIVE AFFECT AND AFFECT REGULATION Positive mood, meanwhile, was construed as the People experiencing negative affect are task being not fun, producing perseverance. more willing to make behavioral choices that will lead to more positive feelings. EFFECTS OF MOOD STATES ON RISK- Thus, they will engage in a wide variety of TAKING behaviors in an attempt to change the Positive moods promote risk-taking when the current feelings. stakes and chances of loss are low but risk- avoidance when the stakes and chances of loss POSITIVE AFFECT AND AFFECT REGULATION are high. People experiencing positive affect can, TASK-RELATED AFFECT IN JUDGMENT AND under certain circumstances, be less DECISION MAKING willing to take risks, to help others, or seel variety. TASK-RELATED AFFECT: the process of Mood-threatening stimuli may also be making judgments or decisions may itself persuasive when the message attempts to induce feelings and emotions. convince people of the risks associated When trade-offs are emotional, with a particular activity. consumers tend to place greater weight on the relative quality of options. "VALUE-FROM-FIT" HYPOTHESIS: a fit between the manner in which a decision is made and the current orientation of the decision maker can produce pleasant task-related feelings of "being right", which can then be (mis)attributed to a chosen object, enhancing its perceived value. AFFECT AND MOTIVATION Motivation and emotion share the same Latin root, movere, which means "to move". Affective states are said to stimulate action tendencies, action readiness, and goal shifts.