Consumer Behavior PDF

01 intro to consumer behavior evolution of marketing. production era. new goods and limited factory output created market scarcity businesses relied on a "build it, and they will come" mentality marketing had a minimal ro...

01 intro to consumer behavior evolution of marketing. production era. new goods and limited factory output created market scarcity businesses relied on a "build it, and they will come" mentality marketing had a minimal role as businesses did not need to adapt to consumer needs main focus of production-era advertisements was on product features, efficiency, and availability sales era. many economies (particularly in the United States and Europe), experienced rapid growth ○ manufacturing industries expanded consumer demand was high as people sought to buy goods that had been scarce during the war was still very product focused, but started to shift toward the consumer  marketing era. technological advancements and globalized manufacturing → increase in global production capacity and overproduction mature consumer markets, shifting consumer preferences and economic fluctuations → less demand modern advertising centers on the consumer, focusing on their needs, desires, problems ○ brands use data and research to create campaigns that solve issues, and align with consumer values overall… marketing shifted from just selling products to understanding consumer needs studying behavior became essential insights into consumer attitudes and decisions helped shape product design, advertising, sales strats 01.1 what is consumer behavior? definitions and model. so.. what is consumer behavior?  WHAT? is a process when consumers select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy their needs and desires. WHY? economic model of human decision making considers humans as rational agents, but people are often not “rational” decision makers ○ limited cognitive capacities: heuristics, rules of thumb ○ emotions & feelings ○ social influences making correct predictions on how consumers respond to marketing actions can generate profit ○ marketers need to know how consumers make decisions more importantly… to enhance consumer well-being, contribute to the better society. ○ informed choices, better product design, improving ethical practices, reducing stress, etc.  rational or irrational? rational or irrational? 1. make choices based on a rational consumer has well-defined preferences and chooses preference goods or services based on what gives them the greatest utility a rational consumer in economic models: violation example: impulse purchase 2. maximizes utility consumers allocate their income in a way that maximizes their total utility, given the prices of goods and their budget constraints a rational consumer in economic models: violation example: buying brand over price 3. acts with full the rational consumer is assumed to have complete knowledge information of the prices of goods and services and their own preferences a rational consumer in economic models: violation example: even if information is available, it can be overwhelming to process all of it effectively. for example, a consumer might have access to countless reviews and data points but struggle to synthesize them into a clear decision. 4. consistent their decisions are consistent– meaning, if they prefer A over decision-making B, and B over C, they will prefer A over C (transitivity) a rational consumer in economic models:  violation example: needs vs wants do marketers create artificial needs? let’s see. need: a basic biological motive want: one way that we learn to satisfy needs essential for survival non-essential universal subjective basic requirements for physical and influenced by external factors mental health competitive frame of reference. the market or category in which you choose to position your brand within which your product competes having a frame of reference helps in identifying competitors based on the needs that the category addresses 01.2 emerging social trends. Just-in-time (JIT) people like making decisions based on real-time information without much planning consumers increasingly prefer to get products, services, or information exactly when they need them, rather than in advance examples: zipcar Quality of life in search of “enoughness” consumers are increasingly adopting simpler lifestyles marked by fewer material possessions and an increasing concern about the quality of life examples: slow food Sharing people like sharing and get benefits from it examples: uber airbnb Dialog and dialogue → due to the increase of e-commerce and online communities, it is easier for customers to communicate with each other, cooperate, Co-creation and share information examples: flying tiger website (showing IG posts of their products by consumers) co- creation → the joint creation of value by the company and the customer; allowing the customer to co-construct the service experience to suit their context examples: lego ideas Transparent there is more information about consumers available to product managers now than ever before consumers people use search engines to fid solutions to their problems  ○ people with problems might be willing to pay money to solve them examples: loreal : through socmed and listening to communities, they learned that: ○ the process is very difficult ○ people were missing the right tool ○ a friend to help is useful ○ no single method predominates so, they developed their own ombre kit 02 perception terminologies. ★ hebb’s rule ○ suggests that "cells that fire together, wire together," meaning that when two neurons repeatedly activate simultaneously, their connection strengthens ○ At first, when you try to play a chord, your fingers don’t really know where to go. You have to think hard about each finger position, and it feels awkward and slow. But every time you practice, your brain strengthens the connection between the neurons responsible for each of those specific finger movements. With repetition, those neurons start to "fire together" reliably. Over time, Hebb’s Rule kicks in: these neurons become better "wired" together because they're constantly firing together. As a result, playing chords gets smoother and automatic, and your fingers can move to the right position without much conscious thought. It’s why, after lots of practice, you don’t have to think about where to put your fingers anymore; your brain has reinforced that pathway so much that it’s become second nature. ★ perception ○ by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world  external stimuli, or sensory inputs, can be received on a number of different channels inputs picked up by our five senses are the raw data that begin the perceptual process hierarchy of senses. VAT STreet vision (the most objective) ○ the most dominant and important audition touch smell taste (the least objective) ★ sensation ○ the immediate and direct response of the sensory organs to stimuli a stimulus is any unit of input to any of the senses marketing stimuli: various elements in the environment that are designed and controlled by marketers to influence consumers’ perceptions, attitudes, behaviors toward a product, brand, or service should have important sensory qualities we rely on colors, odors, sounds, tastes, and even the “feel” of products when forming evaluations of them ○ e.g. product features, price, advertising, place * not all sensations successfully make their way through the perceptual process; many stimuli compete for our attention, majority are not noticed ★ absolute threshold ○ the lowest level at which an individual can experience a sensation ★ differential threshold (just noticeable difference - JND) ○ minimal difference that can be detected between two similar stimuli between sizes of packages, weights, design, prices, etc. ○ the JND between two stimuli is relative to the intensity of the first stimulus ○ stronger initial stimuli (e.g. size, weight, price, design) require greater changes for the second stimulus to be perceived as different * Weber’s Law provides the formula or principle explaining how the JND works in relation to the strength of the original stimulus marketing applications of the JND marketers need to determine the relevant JND for their products ○ so that negative charges are not readily apparent to the public ○ so that product improvements are very apparent to consumers → downsizing/ shrinkflation → use of signage to make the improvement very salient ★ sensory marketing ○ marketing that engages the consumers’ senses and affects their perception, judgment and behavior why should we care? generates more persuasive messages allows products to be more appealing is an opportunity of charging more the target compared to other products in the same category ★ sensory marketing ○ vision → visual elements in advertising, store design, packaging; colors are rich in symbolic value and cultural meanings – can be critical keys to sales ○ smell → odors can stir the emotions or have a calming effect; can invoke memories or relieve stress ○ sound → can affect people’s feelings and behaviors ○ touch → tactile cues can have symbolic meaning ○ taste → can contribute to our experiences of many products delving more into sensory branding… vision  ○ color and design warm colors attract people to a store cool colors encourage more contemplation and higher sales smell ○ odors can stir the emotions or have a calming effect, they can invoke memories or relieve stress ○ smell is unique among the senses because it has a direct pathway to the limbic system, involved in emotion and memory → this direct connection means that smells can bypass the rational part of the brain (thereby evoking strong emotional responses and memories) certain scents can trigger vivid memories and emotions, often linked to past experiences ○ used as a potent branding tool sound ○ can affect people’s feelings and behavior slow music → people take their time; spend more money fast music → people move quickly without affecting sales classical → buy more expensive products taste ○ is dependent on other senses “every single taste is a combination of all our five senses” touch ○ texture and quality perception touch allows individuals to assess the quality and texture of objects plays a critical role in decision making ○ confidence in choices physically interacting with a product provides a sense of certainty ★ congruence in sensory experiences ○ alignment and harmony between different sensory inputs ○ when the senses work together seamlessly, it enhances overall perception, creates a coherent experience, reinforces emotional responses ★ interactions of the senses ○ congruence in sensory experiences refers to the alignment and harmony between different sensory inputs when the senses work together seamlessly, it enhances overall perception, creates a coherent experience, and reinforces emotional responses ★ exposure is not enough !!! ○ banner blindness the phenomenon where website visitors consciously or unconsciously ignore banner ads or any content that resembles advertisements  web users tend to ignore everything that looks like an ad! since users have constructed web related schema for different tasks on the web, when searching for specific information on a website, they focus only on the parts of the page where they would focus on where relevant information could be (e.g. texts/ hyperlinks) large colorful or animated banners and other graphics are ignored in this case ★ exposure vs attention ○ exposure: possibility of noticing the information ○ attention: the information has been recorded in some way (has been noticed) ★ attention ○ is the extent to which processing activity is devoted to a particular stimulus ○ perceptual selection: people attend to only a small portion of the stimuli to which they are exposed how they work together mechanically ○ perceptual selection (filter) → determines which stimuli are “allowed” to be processed by filtering out irrelevant or less important input; sets stage for more refined focus ○ attention (focused lens) → zooms in on the filtered stimuli, giving detailed and concentrated processing to what has been selected; ensures that the machine focuses its energy on the most critical or relevant stimuli for a specific purpose in this analogy, the filter (perceptual selection) and focused lens (attention), work together to manage and optimize the machine’s capacity to handle incoming information efficiently ★ factors influencing attention ○ stimulus nature → physical attributes like color, size, or uniqueness can grab attention ○ expectations → familiarity with the brand or product ○ motives → needs/ wants drive selective attention ★ techniques for capturing attention ○ saliency map → highlights prominent, attention-grabbing features (e.g. bright colors or unique packaging) ○ systematic search → using methods like strategic product placement and eye-tracking to optimize consumer focus organizing and interpreting sensory information principles of perception in branding  ○ similarity and grouping: brands use consistent logos, colors, or designs across products to form a unified brand identity, enhancing memory and recognition ○ figure-ground principle: consumers naturally focus on one part of a stimulus (the figure) while the rest fades into the background (the ground– so gestalt!) ○ closure principle: the brain complete incomplete visuals, making ads more engaging and memorable perceptual maps ○ visual tools that position products, brands, or services in consumers’ minds, illustrating relative attributes (e.g., luxury vs affordability) ○ they help brands understand market positions and consumer preferences 03 the self. terminologies. ★ self concept ○ is the basis for self-understanding ○ forms an answer to the question, “Who am I?” ○ collection of beliefs → a person holds about his/ her attributes and how he/she evaluates these qualities ★ multiple selves ○ we all have multiple role identities that shift depending on the context and situation ○ center roles (like spouse, parents, professional) are often more consistent, while situational roles (like dancer or coach) can dominate in specific environments ★ rudimentary self-concept ✨ ○ Basic Awareness: The foundational recognition of oneself as a unique being, distinct from others—it's like your first "Hello, it's me!" moment. ○ Not Just Humans: Seen in some primates (great apes, dolphins, elephants, orcas), certain birds (like magpies), and even ants, indicating a broader capacity for self-awareness in the animal kingdom. ○ The Mirror Test: A classic method (also known as the "rouge test") used to assess 🪞🐒 self-concept, where an individual recognizes a mark on their reflection—often a sign of self-awareness emerging around age 2. ★ examples ○ academic self-concept “I’m a quick learner and enjoy solving complex problems, but I tend to procrastinate when it comes to writing essays.” ○ physical self-concept “I see myself as physically fit and athletic, though I wish I were a bit taller.” ○ moral/ethic self-concept “I believe in honesty and fairness, but I sometimes feel guilty about small ethical compromises at work.” self-concept has the following components: CONTENT specific attributes, qualities, and characteristics that individuals associate with themselves (e.g., facial attractiveness, mental properties, “I am friendly”. VALENCE emotional value or positive/negative feelings associated with various self-concept components (e.g., outgoing vs. shy) INTENSITY the strength or stability (over time) of the self-concept components. It reflects how deeply a person identifies with certain traits or roles. ACCURACY the degree to which an individual's self-concept aligns with reality, including how accurately they perceive their abilities, traits, and behaviors (Correspondence of one’s self-assessment to reality) These components work together to form a cohesive self-concept ○ e.g. someone may identify as "a hardworking student" (content) with a positive view of this trait (valence), strongly believe in its significance to their identity (intensity), and have a realistic assessment of their academic abilities (accuracy) ○ together, they influence how the individual interacts with the world and sets goals for personal development self-concept (as a formal psychological construct) is new. ★ started in Medieval times from Renaissance humanism ○ Ancient & Medieval: Identity tied to God and society; you were a role player in a grand narrative. ○ Renaissance: Emergence of humanism; individuality and personal potential took center stage. 🌟 ○ Self-Discovery: Focus shifted to exploring personal identity and achievements—your story matters! ★ Carl Jung (1875- 1961) ○ The Self: Defined as the totality of conscious and unconscious mind, highlighting the complexity of identity. 🎨 ○ Individuation: A lifelong journey of integrating various aspects of the self to achieve wholeness—think of it as crafting your unique masterpiece! 🧠✨ ○ Unconscious Archetypes: Explored how deep, symbolic layers influence personal identity, paving the way for understanding the rich tapestry of the human psyche. ★ Abraham Maslow (1908- 1970) ○ Pioneer of Self-Actualization: One of the first to dive into self-actualization as a key element of personal growth—think of it as unlocking your inner superhero! 🦸‍♂️ ○ Hierarchy of Needs: Placed self-actualization at the pinnacle, showing that reaching your full potential is the ultimate goal of personal development. ○ Linking Self and Motivation: Highlighted how self-concept drives motivation and fulfillment, making it essential for well-being and a meaningful life. 🌟  self-concept development. infancy distinguishes self from the environment, forming rudimentary self-awareness ages 2-3 recognizes gender and age; associates with family (e.g., “I am a girl”) ages 3-4 focuses on skills and talents in self-concept (e.g., "I can roar really loud! I'm the best lion!") ages 5-6 social comparison begins, evaluating self against peers (e.g., "Mia can swing higher than me!") private self-concept emerges: ability to keep secrets and lie teen years perspective-taking and objective self-awareness develop, leading to social identity formation btw, the self is totally socially constructed. Consumers use self-altering products to express individualism by: – Creating new self – Maintaining the existing self – Extending the self – Conforming Consumption is a base for judgments about a person’s social identity.  independent vs interdependent view of the self. self-view independent view interdependent view definition Defining oneself based on internal Defining oneself through relationships with being the star of your own show! 🌟 thoughts, feelings, and actions—like 🎭 others—you're part of a big ensemble cast! cultural context Common in many Western cultures Found in many Asian and other (think: the USA and Western Europe) non-Western cultures (think: Japan, China, and more) identity focus Celebrates individuality and Emphasizes connection and harmony with uniqueness—be the one and only you! 🤝 others—teamwork makes the dream work! behaviour Actions are driven by personal Actions often reflect the thoughts and influence choices and desires—your happiness is your own! matter!🌍 feelings of others—community vibes marketing insight Brands can appeal to personal goals Brands can emphasize community, and independence—go for it, you deserve it! 🛍️ relationships, and belonging—together we thrive! important of understanding these differing self-views: Cultural Insight: Recognizing the differences in self-views helps marketers connect more deeply with their audiences. Tailored Messaging: By aligning campaigns with the audience’s self-concept, brands can craft messages that truly resonate. Impactful Strategies: Effective positioning boosts consumer engagement, making marketing efforts more meaningful and memorable. Building Loyalty: When campaigns reflect individual or community values, they foster brand loyalty and a stronger connection with consumers. 🌟 more self concepts. Self-Congruence Theory Core Idea: Consumers tend to prefer and choose products that resonate with their self-concept—how they perceive themselves or aspire to be. more likely they are to select it.🪞 Perceived Similarity Rule: The closer a product aligns with a consumer’s self-image, the Self-image congruence models: suggest that products will be chosen when their attributes match some aspect of the self Symbolic Interactionism Beyond Functionality: Products and brands carry deeper symbolic meanings that reflect: ○ Personal Values: What matters to the individual. ○ Social Status: How they wish to be perceived in society. ○ Group Affiliations: Connections to social groups and communities.  🤔 Influence of Others: Individuals often make purchasing decisions based on anticipated perceptions from others—“What will they think of my choice?” Extended Self (we are what we own) Beyond the Body: The self is not just about the physical body; it includes various valued objects and affiliations. Key Elements: ○ Valued Objects: Cars, homes, and personal belongings that contribute to identity. ○ Attachments: Emotional connections to sports teams, national monuments, and more that help define who we are. Levels of the Extended Self 1. Individual Level: ○ Personal possessions that shape self-identity (e.g., clothing, gadgets, cars).🚗👗 ○ A fashion enthusiast proudly curates a collection of limited-edition sneakers. When they wear a pair from their collection, it not only reflects their personal style but 👟 also conveys their status as a knowledgeable sneakerhead within their social circles. This connection enhances their self-image and serves as a conversation starter. ○ The consumer's home and its furnishings, reflecting familial identity and heritage. 🏡 2. Family Level: ○ A family invests in a cozy, well-decorated home filled with memorabilia from family vacations and significant life events. The living room, adorned with personalized art and comfortable seating, becomes a gathering place where they create lasting 🏡✨ memories, reinforcing their family bond and shared identity as a close-knit unit. 3. Community Level: identity. 🌆 ○ The neighborhood or town that contributes to a sense of belonging and local ○ A family invests in a cozy, well-decorated home filled with memorabilia from family vacations and significant life events. The living room, adorned with personalized art and comfortable seating, becomes a gathering place where they create lasting 🏡✨ memories, reinforcing their family bond and shared identity as a close-knit unit. 4. Group Level: shared values and beliefs. 🤝 ○ Affiliations with social, religious, or interest groups that enhance the self through ○ A college student involved in a cultural club wears a traditional outfit during events to honor their heritage. These garments not only signify their connection to their 🌍 cultural roots but also help them bond with fellow members, reinforcing their identity within the group and promoting cultural awareness among peers. Symbolic Self-Completion Theory Core Idea: The theory posits that individuals seek to fill perceived gaps in their self-concept by acquiring symbols associated with their desired identity, especially when they feel incomplete in a particular role. Key Aspects 1. Identity Gaps:  ○ Individuals may feel they haven't fully established themselves in a specific role or identity (e.g., professional, parent, athlete) and seek symbols that represent those roles. 2. Use of Symbols: ○ These symbols can include material goods (like clothing or accessories), behaviors (such as adopting new habits), or titles and credentials that signify membership or success in a given identity. Consumption Example Executive Example: A newly promoted executive may feel a lack of confidence in their new role. To bridge this identity gap, they purchase expensive suits, high-end watches, or luxury cars. These items not only symbolize their newfound status and authority but also help 💼⌚️🚗 communicate their identity to themselves and others, reinforcing their sense of self as a successful leader. three parts of self-concept (Carl Roger’s Theory) Self-esteem Self-esteem refers to the positivity of a person’s self-concept. Self-esteem is often related to acceptance by others. Low self-esteem → do not think they will perform well and will try to avoid embarrassment or failure, or rejection. High self-esteem → expect to be successful, will take more risks, and are more willing to be the center of attention. self-esteem in marketing: Consumers’ self-concepts are reflections of their attitudes towards themselves. Whether these attitudes are positive or negative, they will help guide many purchase decisions Products can be used to bolster self-esteem or to ‘reward’ the self. Usual appeals: ○ Acceptance & Belonging → consumers buy products to feel accepted and like they fit with a particular group ○ Approval & Recognition → products can be used to seek validation and approval from others ○ Embarrassment & Rejection → fear of rejection or embarrassment may drive purchases that help avoid negative judgments ○ Respect & Status → consumers buy products that reflect and boost their social status and personal achievements Ideal Self Actual Self: ○ Represents a realistic assessment of one's qualities, strengths, and weaknesses. It’s an honest reflection of who we are at present. Ideal Self: ○ Encompasses the person we aspire to be, shaped by personal goals, cultural heroes, and aspirational  figures often depicted in advertising. This self is influenced by societal ideals and dreams. 🌟 Impression Management Core Idea: ○ Many consumers actively engage in impression management, striving to shape how others perceive them. Strategies: ○ Individuals select clothing, accessories, and behaviors that project a favorable image, aiming to highlight desirable traits and downplay less favorable ones. This can include everything from fashion choices to social media posts, all designed to present oneself in the best possible light.🕶️✨ Social Comparison Exposure to ads triggers the process of social comparison. Social comparison is a basic human tendency to benchmark. Supplying idealized images of happy, attractive people who just happen to use certain products → social comparison → demand for those products to emulate the idealized image Focusing on the self amount of time people spend thinking about themselves has increased in recent years different self-images all the mentioned self-images deal with the actual image of an individual and the ideal/ expected image of that same person many consumers will purchase products to meet the gap between their actual and ideal selves Actual Self-Image how consumers see themselves Ideal Self- Image how consumers would like to see themselves Social Self-Image how consumers feel others see them  Ideal Social Self-Image how consumers would like others to see them Expected Self-Image how consumers expect to see themselves in the future Out-to-Self traits an individual believes are in her duty to possess 04.1 motivations and emotions. types of needs motivation process (goals, needs, wants) unfulfilled needs wants and desires → tension → drive → behavior → goal or need fulfillment → tension reduction HUMAN NEEDS: THE BASICS Biogenic Needs: ○ The essentials for survival—food, water, air, and shelter. ○ These are the basic “fuel” that keep our bodies running. Psychogenic Needs: ○ The “learned” needs that come from growing up in a culture. ○ Examples: seeking status, power, or connection with others. ○ Different cultures, different priorities—what’s important in one society might be totally different in another. MOTIVATION: WHAT DRIVES US? Utilitarian Needs: ○ Focused on practical, useful, and tangible benefits. ○ Example: Buying a car based on miles per gallon, a cheeseburger for its nutritional value, or choosing jeans for their durability. ○ It’s all about functionality and logic here. Hedonic Needs: ○ All about pleasure, excitement, and experience—fueled by our emotions! ○ Example: A product that makes us feel excited, boosts self-confidence, or lets us indulge in a little fantasy. ○ Think: escaping the ordinary or adding a spark to life motivation: a psychological force  HOW MOTIVATION WORKS Motivation = Tension: ○ When we have an unfulfilled need, it creates a state of tension. ○ Example: Hunger makes us highly motivated to find food! Consumers Aim to Reduce Tension: ○ We want to satisfy our needs to get rid of that tension. ○ Some needs create more motivation than others: High Motivation: If you’re starving, you’ll drop everything to find food! Lower Motivation: If you need new pants, it’s less urgent—you might take your time. ○ Motivation is described in terms of strength and direction. strength: how strongly an individual is driven to pursue a goal or fulfill a need direction: refers to the specific goals or outcomes that motivation is aimed at most goals can be reached by a number of routes ROLE OF MARKETERS: FUELING MOTIVATION Marketers help increase motivation or make you see why you need their product. ○ Example: You need pants, but Diesel Jeans could make you feel stylish, comfortable, and confident—creating that extra push to buy. Firms need to convince customers that their alternative provides the best route to achieve their goals AFTER THE GOAL IS MET Once the need is satisfied (you’ve eaten or bought those jeans), the tension drops and motivation fades... until the next need arises THE ROLE OF EMOTIONS IN MOTIVATION 1. Emotions Signal Unmet Needs ○ Example: John feels dissatisfied with his appearance and experiences low self-esteem due to his weight. ○ Trigger: Negative emotions highlight unmet needs, prompting action (e.g., joining a gym). 2. Emotions Provide the Energy to Act ○ Example: John feels determined and hopeful about getting fit, which motivates him to sign up for a gym and start exercising. ○ Impact: The excitement of envisioning a healthier self drives his commitment, even when faced with challenges.  3. Emotions Work as Feedback for Progress ○ Example: As John sees progress (like fitting into old jeans), positive emotions reinforce his motivation. Conversely, setbacks (e.g., no weight loss) can lead to frustration, signaling the need for adjustment. ○ Feedback Loop: Positive emotions encourage persistence, while negative emotions prompt reflection and change. Understanding Emotions, Feelings, and Moods 1. Emotions ○ Definition: Intense, short-lived mental states triggered by specific events. ○ Characteristics: Include physiological responses (e.g., increased heart rate), behavioral expressions (e.g., smiles), and cognitive appraisals (evaluations of situations). ○ Examples: Anger, fear, happiness. 2. Feelings ○ Definition: Subjective experiences of emotions; personal interpretations of emotional states. ○ Characteristics: Less intense than emotions and more cognitive, representing individual awareness. ○ Examples: Feeling frustrated (from anger), feeling content (from happiness). 3. Moods ○ Definition: Prolonged, generalized emotional states without a clear cause. ○ Characteristics: Last longer (hours or days), are less intense, and can influence responses to future events. ○ Examples: good mood, bad mood, neutral mood. model of motivation process The Motivation Process: How It Works Drive Toward Behavior: ○ Motivation pushes us toward actions that will fulfill a need. ○ The end goal? Satisfying that need and reducing the tension. Influence of Past Experiences: ○ Previous learning plays a big role in shaping future choices.  ○ We often rely on past experiences to decide how to act when the need arises again. What is Motivation? Motivation = What Drives Behavior: ○ It’s the internal process that explains why we behave the way we do. When Does Motivation Kick In?: ○ It starts when a need is triggered—something you want or lack. ○ Once a need is activated, it creates tension. ○ This tension pushes you to act, to eliminate or reduce that need. the dynamics of motivation The Dynamics of Motivation Needs Are Never Fully Satisfied: ○ Many needs reappear even after being fulfilled. ○ Example: Hunger—you eat, but eventually, you’ll be hungry again! New Needs Emerge as Old Ones Are Met: ○ When we reach one goal, new needs and goals take its place. ○ Example: Someone who buys a house might next focus on decorating or upgrading it. Motivation is Dynamic: ○ Our motivations evolve with life experiences and circumstances: Age, career changes, relationships (marriage/divorce), wealth, illness, education—all influence what drives us. The Constant Cycle of Human Needs Needs are Endless: ○ We always have needs—once one is met, another appears, or an old need resurfaces. Hierarchy of Needs: ○ We tend to focus on lower-level needs first (food, safety) and move up as those are satisfied (status, self-actualization). Goal-Based Needs: ○ Our needs often align with the goals we set. ○ Example: If someone aims to enter politics, they may feel the need for a law degree. ○ If plans change (e.g., not getting into law school), their needs shift—perhaps toward work experience or finding a job. Relevance to Marketing Understanding Evolving Needs: ○ Consumers' needs change over time. Marketers can tailor products and messaging to align with these shifts. Targeting Life Stages: ○ Motivation varies with life experiences (age, career). Marketers can create targeted campaigns for different demographics.  Anticipating Future Needs: ○ Successful brands predict what consumers will want next, offering complementary products or services. Influencing Behavior: ○ By understanding motivations (status, convenience), marketers can drive purchase decisions more effectively. Adapting to Goals: ○ As consumer goals evolve, marketers can adjust their offerings to match new aspirations. Understanding Substitute Goals Unmet Needs: ○ Needs are often not fully satisfied, leading to tension. Substitute Goals: ○ When a consumer can’t attain a specific goal (due to factors like money, ability, or accessibility), they often turn to a substitute goal to relieve that tension. ○ Example: If a desired cable service isn’t available, a consumer might opt for a satellite provider instead. Replacement Over Time: ○ The substitute goal can become preferred over time, possibly replacing the original goal entirely. Evolving Needs: ○ New needs emerge as old ones are satisfied, and achieving goals often leads to the pursuit of higher goals. valence of goals Positively Valued Goals: Definition: Goals that consumers view favorably and strive to achieve. Motivation: Consumers are motivated to approach these goals. Behavior: They actively seek out products and services that will help them attain these goals. Example: A consumer might pursue a fitness goal and seek out healthy foods or gym memberships. Avoiding Negative Goals: Definition: Goals aimed at preventing undesirable outcomes. Motivation: Consumers are motivated to avoid negative experiences or results. Behavior: They structure their purchases or consumption activities to prevent negative consequences. Example: A consumer might buy insurance to avoid financial loss or select a healthier diet to avoid health issues. 04.2 theories. 1. regulatory focus theory. (Higgins et al.) Regulatory Focus Theory posits that individuals approach their goals through two distinct motivational systems: promotion focus and prevention focus. Promotion Focus Motivation: Driven by the desire to achieve positive outcomes and aspirations. Key Elements: ○ Achieving Benefits: Motivated by potential gains and rewards. ○ Accomplishments: Desire for success and personal advancement. ○ Ideals and Desires: Actions guided by personal aspirations and what one wants to achieve. ○ Luxury Attributes: Attracted to products that reflect desires, such as luxury brands that symbolize success and status. Prevention Focus Motivation: Concentrated on avoiding negative outcomes and fulfilling obligations. Key Elements: ○ Avoiding Losses: Focused on preventing mistakes and risks. ○ Obligations: Driven by responsibilities and external expectations ("oughts"). ○ Oughts and Needs: Centered on necessities and responsibilities rather than personal desires. ○ Pragmatic Security: Preference for reliable options that ensure safety and reduce uncertainty. 2. human motivation theory/ consumer needs theory (McClelland) McClelland's Theory identifies three primary human needs that drive behavior, especially in work and achievement contexts: 1. Achievement Description: Individuals who value personal accomplishment and strive for success. Consumer Behavior: ○ Prefer products that signify success and prestige. ○ Examples: Luxury brands, high-end technology products. 2. Affiliation Description: Individuals who desire social interaction and want to connect with others. Consumer Behavior: ○ Favor products that enhance group experiences. ○ Examples: Alcoholic beverages, sports bar settings. 3. Power Description: Individuals who seek to control their environment and influence others. Consumer Behavior: ○ Prefer products that allow them to assert mastery over their surroundings. ○ Examples: Muscle cars, powerful audio systems. 3. theory of cognitive dissonance. Cognitive dissonance is a distressing mental state that arises from inconsistencies between a person’s beliefs, attitudes, or behaviors. Developed by Leon Festinger in 1957, it explains how individuals strive to resolve these inconsistencies. How People Respond to Dissonance  1. Change Their Behavior ○ Description: Individuals may change their behavior to align with their beliefs or attitudes. ○ Example: A person who values health but smokes might quit smoking to reduce dissonance. ○ Marketing Example: A consumer feeling guilty about frequent fast food purchases may start opting for healthier food choices. 2. Justify Their Behavior by Changing the Conflicting Cognition ○ Description: Individuals may alter their beliefs to make their behavior seem acceptable. ○ Example: A smoker might think, “The health risks of smoking are exaggerated.” ○ Marketing Example: A consumer buying luxury items may rationalize their spending by saying, “Quality products are worth the investment.” 3. Justify Their Behavior by Adding New Cognitions ○ Description: Individuals add new, supportive beliefs to justify their behavior without changing it. ○ Example: A smoker might say, “Smoking helps me manage stress, which is also harmful to my health.” ○ Marketing Example: Someone buying a luxury car might justify it by stating, “This car is safer for my family” or “It enhances my professional image.” motivational conflicts. Types of Motivational Conflicts 1. Approach-Approach Conflict ○ Description: Occurs when a person must choose between two desirable alternatives. ○ Example: Choosing between two favorite car brands, both of which have appealing features. ○ Implication: This type of conflict can lead to positive feelings, as both options are attractive. 2. Approach-Avoidance Conflict ○ Description: Involves a product or service that has both positive and negative aspects. ○ Example: Desiring a dessert that is delicious but may lead to weight gain. ○ Implication: This conflict can create feelings of tension as individuals weigh the benefits against the potential drawbacks. 3. Avoidance-Avoidance Conflict ○ Description: A choice between two undesirable alternatives. ○ Example: Deciding whether to spend more on repairing an older car or investing in a newer, more expensive vehicle. ○ Implication: This conflict often leads to frustration and dissatisfaction, as both options are seen as negative. 04.3 emotions. 1. cognitive component (appraisal) description: involves mental processes used to interpret and evaluate events. example: viewing a situation as dangerous triggers fear; viewing it as positive sparks joy. role: determines which emotion we feel based on how we assess the situation. 2. physiological component (bodily response) description: emotions cause automatic physical changes in the body, managed by the autonomic nervous system. example: anxiety might cause a racing heart and sweaty palms. role: prepares the body to respond, such as activating the fight-or-flight response when afraid. 3. behavioral component (expressive behavior) description: refers to how emotions are expressed through facial expressions, gestures, and actions. example: smiling when happy or frowning when sad. role: signals emotional states to others and influences their reactions. basic emotions:  dimensional model of emotions russel’s circumplex model in dimensional models of emotion, emotions are understood and categorized along two primary dimensions: valence and arousal. 1. valence definition: refers to whether the emotion is positive or negative. positive valence: emotions like joy, excitement, or love. negative valence: emotions like sadness, anger, or fear. role: determines the pleasantness or unpleasantness of an emotion. 2. arousal definition: refers to the energy or intensity of the emotion. high arousal: emotions like anger, anxiety, or excitement. low arousal: emotions like calmness, contentment, or boredom. role: indicates how activated or relaxed the emotional state is. how it works: instead of focusing on specific emotion categories (like anger or happiness), dimensional models map emotions based on where they fall on these two scales: high arousal + positive valence = excitement high arousal + negative valence = anger low arousal + positive valence = contentment low arousal + negative valence = sadness this approach is widely used to measure emotional states and understand how emotions vary in terms of their intensity and pleasantness.  emotional influences emotions and their influence on decision making ○ source of emotion matters integral emotions incidental emotions task-related emotions 1. integral emotions definition: these emotions are directly related to the decision or product itself. they arise from past experiences, memories, or associations with the item being evaluated. role in decision making: people use the "how-do-i-feel-about-it?" heuristic to guide their choices based on these emotions. if a product or service evokes positive emotions, it is more likely to be chosen. example: choosing a restaurant that makes you feel joyful due to a previous positive dining experience. marketing applications: 1. creating positive associations: brands aim to build positive integral emotions through quality messaging, positive experiences, and consistent customer service. 2. emotional advertising: ads that evoke emotions, like happiness or nostalgia, can create stronger connections to the brand. 3. boosting purchase intent: highlighting emotional benefits in campaigns, such as relaxation or joy, can enhance consumers' desire to purchase. 2. incidental emotions definition: these emotions are unrelated to the decision but are present at the time of decision-making. despite being normatively irrelevant, they still influence judgments and choices. role in decision making: incidental emotions, like being in a happy mood, can spill over into the decision-making process, influencing preferences even if the emotions have nothing to do with the decision. example: feeling joyful for unrelated reasons and choosing a more festive restaurant for dinner. marketing applications: 1. leverage positive states: marketers can time campaigns during periods of heightened happiness (holidays, celebrations) to boost sales. 2. contextual triggers: creating environments (e.g., festive ads, joyful music) that evoke positive incidental emotions can enhance product appeal. 3. mitigate negative emotions: brands can position themselves as solutions during negative emotional states, offering comfort or stress relief (e.g., wellness products during stressful times). 3. task-related emotions definition: these emotions are related to the decision-making process itself, rather than the decision or product. they reflect how people feel about performing a task or engaging with an activity. role in decision making: task-related emotions influence the ease or difficulty of the decision-making process. if a task is enjoyable, consumers are more likely to engage with it; if it’s frustrating, they may avoid it. example: feeling joyful about the process of choosing a restaurant. marketing applications: 1. simplifying complex tasks: brands can reduce frustration by offering user-friendly experiences (e.g., canva’s easy design tools). 2. personalization: customizing the user experience, like spotify’s personalized playlists, enhances positive emotions tied to the task.  3. improving visual appeal: attractive designs, like etsy’s product photography, can make tasks like shopping more enjoyable. type of mood: anxious or sad? anxiety makes people go for certainty (preference for lower payoffs with higher probability) sadness makes people go for rewards (preference for higher payoffs with lower probability) systems of thinking ★ system 1: implicit thinking ★ system 2: explicit thinking perception and intuition reasoning system 1 processes information quickly, system 2 relies on deliberate thought relying on intuition and perception to and logical reasoning. make snap judgments without conscious it is engaged when consumers analyze thought. and evaluate a product, such as by in marketing, it’s engaged when comparing reviews, prices, or product consumers make quick decisions based features. on surface-level attributes like brand this system is slower and cognitively recognition or packaging. this system is demanding. instinctive and emotionally driven. ○ example: a consumer spends ○ example: grabbing a familiar hours researching laptops snack at the store without before deciding which one considering other options. offers the best value. automatic controlled & effortful system 1 operates unconsciously, system 2 requires effort and involves handling decisions without deliberate a step-by-step evaluation of the effort. available options. familiarity with a brand or product it’s typically activated in high-stakes triggers automatic responses. decisions, such as making a major ○ example: choosing a product financial investment. based on a habit formed ○ example: spending weeks through repetitive exposure to evaluating mortgage options a brand’s logo or color before buying a home. scheme. associative rule-governed system 1 links related ideas and system 2 thinking follows logical rules experiences, so positive emotional and is methodical, applying criteria associations with a brand drive quick such as price, quality, or functionality to decisions. compare options. ○ example: a consumer ○ example: a consumer uses a immediately chooses a certain checklist of features to soda because it reminds them compare different of a happy childhood memory. smartphones. fast slow the hallmark of system 1 is its speed, unlike system 1, system 2 operates at a especially when consumers make slower pace, allowing for careful, split-second decisions. rational decisions. the emotional appeal of it’s most effective for long-term advertisements or packaging can purchases and complex decisions. engage this system, leading to ○ example: taking time to decide impulsive purchases. between multiple investment ○ example: seeing an attractive, options for retirement planning. brightly colored ad for a new gadget and purchasing it on a whim. ★ discrete emotions and system 1 anger: anger leads to quick, negative reactions, such as boycotting a product or writing a negative review after a frustrating experience. fear: fear motivates people to seek safety or avoid risks, making fear-based marketing effective for products like insurance or health services. ○ example: ads that highlight dangers like car accidents to sell safety features in vehicles. joy: positive emotions like joy trigger immediate positive reactions, prompting consumers to make purchases that maintain or enhance their happiness. ○ example: a consumer buys ice cream after watching a joyful, fun commercial. other emotions: emotions like disgust quickly deter people from a product, while surprise grabs attention, making the ad memorable. ★ anticipated emotions and system 2 regret: consumers engage system 2 to avoid future regret. they carefully evaluate all their options, anticipating that they might regret their choice if it turns out to be poor. ○ example: comparing multiple reviews and return policies before buying an expensive camera to avoid regretting the purchase later. disappointment: disappointment is another key emotion that drives system 2 thinking, as consumers want to avoid being let down by their purchase. ○ example: thoroughly researching a product’s performance to ensure it meets expectations, thereby avoiding future disappointment. more on feelings! ★ when do we use feelings in decisions? 1. when we need a shortcut (heuristic) → feelings simplify judgment when we don’t want to overthink. 2. when speed is needed → under time pressure, feelings help us make fast decisions. 3. when feelings are useful → feelings are helpful when they match the decision context. 4. when it’s relevant to the goal → feelings matter when they align with what we’re trying to achieve. 5. when we can trust them → feelings work well for personal decisions, but can be less reliable when deciding for others.  ★ fear appeals: definition: highlight negative consequences to prompt behavior or attitude changes. context: commonly used in social marketing. effectiveness: best when threats are moderate and solutions are provided. ○ avoid using fear appeals if fear levels are too low or too high. examples of fears: 1. fear of loss: concerns loss of life, youth, health, love, social status, or approval. 2. fear of failure: linked to fear of criticism, rejection, and embarrassment. ★ humorous appeals: positive effects: ○ attracts attention: who can resist a good laugh? ○ good mood booster: laughter is the best medicine! ○ shuts down counter-arguments: hard to argue when you're chuckling. ○ better attitude towards the ad: people love what makes them smile. ○ increased message acceptance: if it’s funny, they’re more likely to buy in! motives arousal of motives physiological arousal: ○ e.g., feeling hungry triggers action. emotional arousal: ○ e.g., frustration can drive decisions. cognitive arousal: ○ e.g., reading an ad sparks new thoughts. environmental arousal: ○ e.g., sudden weather changes influence mood. biological vs learned needs consumers have various needs; only some are prioritized at a time. motives arise from: ○ biological factors: drive theory focuses on unpleasant states (like hunger). ○ learned factors: expectancy theory emphasizes positive outcomes as motivators. motivation & emotions: motivation is primarily influenced by raw emotions (affect). basic drive: heighten positive emotions and reduce negative feelings. emotional reactions shape future engagement: they can reinforce or deter activities. social media connection: social media reflects and influences moods. users express their emotions and reactions to products. marketers can use this data to understand consumer feelings about their offerings. sentiment analysis: technique that analyzes social media language about products/companies. helps marketers gauge consumer sentiment and adapt strategies. 05 learning and memory. terminologies learning ○ a relatively permanent change in behavior caused by experience vicarious learning (observational learning) ○ learning that occurs by watching others’ behavior and the consequences they face e..g: seeing someone’s satisfaction with a brand on social media might influence you to buy the same product ways of learning simple association between a stimulus and a response ○ e.g. logo recognition (“Toms shoes” and “social responsibility”) complex cognitive activity ○ e.g. a woman shopping for a new kind of perfume may remember the reactions her friend received on wearing that brand for several months, and she may base her purchase behavior on these reactions behavioral learning theories behavioral learning theories: two major approaches classical conditioning: Ivan Pavlov ○ involves associating a neutral stimulus with an involuntary response (e.g. emotional response to advertising) instrumental or operant conditioning: B.F. Skinner ○ involves learning through the consequences of voluntary behavior (e.g. choosing a brand to gain rewards) classical conditioning in marketing branding CS (conditioned stimulus) should be paired with a strong US (unconditioned stimulus) ○ emotional responses and positive feelings (UR) associated with the US should spill over to the brand ○ after repetition, brand should elicit the same emotional responses and positive feelings (CR) important is finding a strong US to which a product can be paired ○ e.g. endorsed celebrities/ influencers, beautiful scenery, etc. conditions for classical conditioning 1. forward conditioning: ○ CS (fizzyfresh) is presented before US (fun beach day) for better effectiveness. 2. logical relationship: ○ stronger pairing if CS and US relate logically (e.g., a drink for a beach day). 3. novelty of CS: ○ a new and exciting CS (fizzyfresh) captures attention and creates stronger associations. 4. salience of US: ○ us should be memorable and emotionally significant (e.g., a fun summer festival). 5. repetition: ○ more pairings of cs and us strengthen the association over time. 6. contiguity: ○ consistent pairing of the product with the US is essential for reinforcing connections. extinction no pairing: if the US occurs without the CS (e.g., beach days without fizzyfresh), the emotional connection weakens over time. example: ○ Lacoste’s brand evolution in the 1980s exclusive symbol: Lacoste crocodile logo represented casual elegance and high status market expansion: logo began appearing on baby clothes and other everyday items loss of cachet: overexposure led to a decline in exclusivity and perceived luxury emergence of competitors: brands like Ralph Lauren with the Polo Player logo gained popularity as consumers sought alternatives with a more exclusive image repetition too much repetition → advertising wear-out (people will get burnt out of seeing it repeated so many times) optimal amount of exposures to a marketing communication → 3 ○ 1st: creates brand awareness ○ 2nd: demonstrates relevance to consumer ○ 3rd: reminds the product’s benefits negative tedium factor in conditioning ○ refers to the diminishing effectiveness of a stimulus due to boredom, repetitiveness, or overexposure. ○ when a conditioned stimulus (cs) is presented too frequently, it can lead to habituation → a process where the subject's response to the cs weakens over time due to excessive familiarity. ○ overexposure can reduce the impact of conditioning, making the stimulus less effective in eliciting a response. avoiding wearout ad variation: regularly refresh ad content by changing visuals, messaging, or formats (videos, images, animations). rotating creative: use multiple versions of the same ad concept to showcase different product aspects, preventing overexposure. frequency capping: limit individual exposure to the same ad to reduce oversaturation and wear-out. storytelling and episodic ads: break ads into interconnected stories released over time to keep the audience engaged. engaging formats: utilize interactive or personalized ads for a memorable experience that feels less repetitive. wearout vs saturation wearout → fatigue with a particular ad saturation → hitting the ceiling of how much an audience can be reached effectively stimulus generalization tendency of a stimulus similar to a CS to evoke similar, conditioned responses  ○ e.g. Pavlov’s dogs aso started to salivate on the sound of key jangling (sound similar to the ringing of a bell) instrumental conditioning in marketing people are driven to heighten emotion or mood, and to reduce negative feelings emotional reactions in turn influence the likelihood that we will engage in an activity next time – they positively or negatively reinforce us instrumental (operant) conditioning occurs as the person learns to perform behaviors that produce positive outcomes and avoid those that result in negative outcomes ○ reinforcement = increase the behavior positive reinforcement example: reward/ loyalty programs negative reinforcement example: free shipping and free returns ○ punishment = decrease the behavior cognitive learning theory occurs as a result of mental processes ○ e.g. observational learning takes place when a consumer performing a behavior as a result of seeing someone else performing it and being rewarded for it this perspective views people as problem solvers who actively use information from the world around them to master their environment observational learning model applications of cognitive learning principles consumers learn vicariously by seeing others receive reinforcement for their behaviors marketers can reinforce or punish consumers indirectly by showing that happens to desirable models who do or do not use their products by educating, engaging, and reinforcing positive messages, marketers help consumers acquire knowledge, solve problems, and develop loyalty to their products memory refers to the storage of learned information the way information is encoded when it is perceived determines how it will be stored in memory the memory systems known as sensory memory, short-term memory, and long-term memory each play a role in retaining and processing information from the outside world sensory memory the brief storage of sensory information (sights, sounds, smells, etc.) that lasts only a few seconds helps the brain process and filter information from the environment before it moves to short-term memory storing of information in memory information is not stored in isolation, it is incorporated into knowledge structures, where it is associated with other related data the location of product information in associated network and the level of abstraction at which it is coded help determine when and how this information will be activated at a later time some factors that influence the likelihood of retrieval include the level of familiarity with an item, its salience in memory and whether the information was presented in pictorial or written form 06 attitude formation & change do we change? puberty and adolescence traumatic brain injuries  ○ social neuroscience psychological traumas and psychotherapy learning attitudes a lasting, general evaluation of people (including oneself), objects, advertisements, or issues a predisposition to evaluate an object or product positively or negatively katz’s attitude functions according to psychologist Daniel Katz, attitudes are developed and maintained because they help individuals achieve their goals or fulfill personal needs utilitarian function: ○ purpose: attitudes help individuals gain rewards or avoid punishments by guiding behavior toward beneficial outcomes ○ example: a consumer may have a positive attitude toward a product because it helps them save time or money; for instance, someone may prefer fast food because it’s convenient and affordable, fulfilling their practical needs ○ marketing application: advertisers often emphasize how products meet practical needs, offering rewards like discounts, convenience, or effectiveness to appeal to this function value-expressive function: ○ purpose: attitudes help individuals express their core values, beliefs, or identity ○ example: a consumer might have a positive attitude toward environmentally friendly brands because these align with their personal values regarding sustainability and environmental protection ○ marketing application: brands that focus on social causes, ethical practices, or lifestyle alignment (e.g., eco-friendly, socially responsible products) target the value-expressive function by appealing to consumers’ sense of self and beliefs knowledge function: ○ purpose: attitudes provide order, structure, and stability in understanding the world, helping people make sense of complex information or new situations ○ example: a person might hold a favorable attitude toward a familiar brand because it helps them simplify their decision-making process when shopping, reducing uncertainty or confusion ○ marketing application: brands can highlight product reliability, consistent quality, or factual information to appeal to the knowledge function, helping consumers feel more informed and confident in their choices ego-defensive function: ○ purpose: attitudes serve to protect an individual’s self-esteem or defend against internal insecurities or external threats ○ example: a person might develop a negative attitude toward luxury brands if they feel unable to afford them, as a way to defend against feelings of inadequacy  ○ marketing application: marketers can appeal to the ego-defensive function by promoting products that boost self-confidence, such as beauty products or insurance services that protect against financial uncertainty three ways to influence attitudes: 1. attitude-based (direct influence) – classical conditioning: involves forming attitudes by associating a brand, product, or object with positive or negative stimuli neutral stimulus (e.g., product or brand) is paired with a positive/negative stimulus (e.g., music, image, celebrity) over time, the neutral stimulus elicits the same emotional response as the paired stimulus example: ads with upbeat music or popular celebrities can create a favorable attitude toward the product 2. belief-based – persuasion: focuses on changing or shaping beliefs about a product or behavior to influence attitudes uses logic, reasoning, or emotions to change consumers' beliefs about product benefits, risks, or social implications example: informative ads or testimonials persuade consumers that a product is superior or more sustainable, fostering a positive attitude 3. evaluation-based – information or priming: influences attitudes by shaping how consumers evaluate information, often through providing relevant information or priming. priming subtly influences attitudes by exposing consumers to stimuli that affect evaluations, often without their awareness. example: product comparison charts provide objective information; priming with luxury or happiness-related stimuli leads to favorable product evaluations. key differences between beliefs and evaluations: beliefs: cognitive constructs, focused on specific facts, opinions, or knowledge about a product (e.g., features, benefits) evaluations: affective and interpretive, focused on how consumers feel or judge the product based on beliefs or external stimuli ○ priming or specific information can shift evaluations even if beliefs stay the same create positive associations with the brand: associate your brand with positive stimuli (e.g., pleasant images, music, or endorsements) to evoke positive emotions change the beliefs about attributes of the brand: persuade consumers to view your brand’s attributes as superior or more desirable through logical reasoning or emotional appeal compare your brand with other brands and show superiority: highlight how your brand outperforms competitors by showcasing better quality, features, or value change the importance of a specific attribute: shift focus to an attribute your brand excels in, making it more important in the consumer’s decision-making process add a new and important attribute: introduce a new feature or benefit that distinguishes your brand and meets consumer needs the elaboration likelihood model (ELM) developed in the 1980s, is one of the most widely used models in psychology, marketing, and communication, especially for studying persuasion and attitude change. it explains how individuals process persuasive messages and suggests that people follow two main routes to persuasion: ○ central route: involves careful, thoughtful consideration of the content of a message; this occurs when individuals are motivated and able to think critically about the arguments presented. persuasion via this route tends to lead to more enduring attitude changes. ○ peripheral route: involves less cognitive effort, relying on external cues or superficial elements of the message (e.g., attractiveness of the speaker, emotional appeal); attitude changes through this route tend to be temporary and more easily swayed by future information. the model highlights how both message quality and external factors influence attitudes, depending on the individual's level of involvement and motivation the elaboration likelihood model (elm) explains how people are persuaded and change their attitudes. it suggests two main ways we process information: 1. central route: we think carefully about the message, focusing on details and arguments. if it's convincing, it leads to lasting attitude change ○ for example: we might buy a product after seeing strong evidence of its benefits 2. peripheral route: we don't think deeply, relying on cues like a celebrity endorsement or catchy slogan this leads to temporary changes ○ for example: we might try a product just because we like the spokesperson the route we take depends on how motivated and able we are to process the message three ways to influence attitudes  belief- based attitude change ○ argument: explicit reason-why direct comparative advertising indirect comparative advertising ○ cues/ heuristics: implicit reason-why product: price product design country-of-origin source: attractiveness expertise status number of sources message: # of arguments repetition ○ evaluation-based attitude change information more info on how important a product/ attribute is the ABC model of attitudes affect: the way a consumer feels about an object behavior: involves the person’s intentions to do something with regard to an object cognition: the beliefs a consumer has about an object hierarchy of effects a fixed sequence of steps that occur en route to an attitude while the ABC model focuses on the components of attitudes, the hierarchy of effects provides different sequences for how those components come together to drive consumer action; the hierarchy depends on: ○ the level of involvement ○ the product ○ the consumer’s decision-making process theory of reasoned action (TRA) intentions vs behavior: attitude toward buying and social norms influence actions subjective norm: influence from others and motivation to comply theory of planned behavior: extends TRA by adding perceived behavioral control (ease or difficulty of behavior) attitude assessment techniques self-reports: surveys, semantic differential scales behavioral observations: analyzing actions to infer attitudes implicit measures: tools like focus groups or implicit associations to uncover subconscious attitudes 07 decision making types of decision making 1. routine decisions definition: simple, everyday choices made with little thought; think of it as your “autopilot” for decisions example: choosing the same shampoo each time because it’s always worked for you marketing tip: companies need to disrupt these habits to get people to switch brands (like offering a new scent or packaging) 2. limited problem solving definition: quick decisions but with slightly more thought, often using mental shortcuts. example: deciding between two mascaras at the store based on the “best-selling” label on one marketing tip: brands use recognizable features, like “bestseller” tags or influencer endorsements, to catch attention fast 3. extended problem solving definition: important, high-stakes decisions where we actively research and compare example: researching laptops by reading reviews, checking prices, and comparing brands marketing tip: companies need to provide detailed info (like features, specs) to help consumers make a confident choice stages in consumer decision-making 1. problem recognition need recognition: when you need to replace something that broke ○ e.g. realizing your phone screen is shattered, so it’s time for anew phone opportunity recognition: when you’re tempted by something new ○ e.g. seeing an ad for the latest iPhone even though your current one works fine 2. information search prepurchase search: researching just for a specific need ○ e.g. searching for “best Bluetooth speakers” because you want to buy one ongoing search: browsing for fun or to stay updated ○ e.g. regularly checking sneaker drops even if you’re not buying 3. evaluating alternatives criteria: functional (like battery life) and experiential (like brand prestige) ○ e.g. comparing laptops on price, battery life, and design heuristics (mental shortcuts): quick decisions based on “rules of thumb” ○ e.g. “more expensive means better quality” – you might assume a $200 perfume is better than a 20$ one; “popular brands are reliable” – choosing an Apple product because it’s well-known context effects on choices 1. substitution effect adding a similar product decreases demand for others in the same category example: when there are three similar phone models, the newest one may attract more attention, making others seem less appealing 2. attraction effect a “decoy” product highlights the superior qualities of a preferred option example: if a coffee shop offers three sizes, the “medium” option may seem like the best deal next to a small and large size  3. compromise effect people choose the middle option to avoid extremes example: given a $10 lipstick, a $20 lipstick, and a $30 lipstick, many may go for the $20 one as a “safe” middle choice 4. range effect introducing an option that stretches the attribute range makes other options seem closer to each other example: a laptop with 8GB RAM seems average when displayed beside options with 4GB and 16GB decision rules (how we decide) 1. compensatory decision rules consumers weight the pros and cons, with one strong feature compensating for a weaker one example: a phone with an amazing camera but short battery life may still win if the camera quality matters most to you 2. noncompensatory decision rules products must meet strict cut-offs on all attributes; a weakness in one area can be a deal-breaker types: ○ lexicographic rule: choose based on the most important feature example: if “battery life” is your priority, pick the phone with the longest battery life ○ elimination-by-aspects rule: set a cut-off for each feature and eliminate any product that doesn’t meet it example: if you want a laptop under $1000 with 8GB RAM, you’ll eliminate options that don’t meet these criteria ○ conjunctive rule: pick the first product that meets all minimum requirements example: buying the first pair of shoes that fit both your budget and comfort standards real-world applications in marketing 1. breaking habits in routine decisions: brands need to shake up routine habits, like launching limited-edition versions or showing customers why their product is better example: starbucks introducing seasonal flavors like “pumpkin spice” to break coffee-buying routines 2. simplifying limited problem solving: brands often use colors, catchy logos, and familiar faces to cut through decision fatigue example: fast-food restaurants make menu items easy to recognize with icons or famous endorsements 3. educating for extended problem solving: companies help by offering reviews, comparison tools, and in-depth videos example: apple showcasing product demos for each new feature to convince tech-savvy customers 08 social influence 1. social influence in marketing. ★ definition ○ social influence involves the ways people’s thoughts, behaviors, and feelings are affected by others ★ example ○ Think of how viral TikTok trends influence people to buy products. For instance, when a TikTok influencer posts about a skincare product, fans often follow suit, influenced by the person’s recommendation. (like Van Stapele !!!!!!) 2. drivers of social influence ★ informational social influence ○ people follow others when they think others have more knowledge about the correct behavior in a specific situation ○ example: If you’re at a new restaurant and unsure what to order, you might look at the reviews on social media or see what’s popular on TikTok. The opinions of others help guide your decision because you assume they know what’s good. ★ normative social influence ○ this is when people conform to fit in or be accepted by a group, even if they might not completely agree ○ humans are social species → we conform because we are afraid to look stupid, want to be accepted by others, and don’t want to deal with consequences ○ example: Think about the pressure to dress or act a certain way in school to “fit in” with a popular group. Even if you don’t love the style, you might follow it just to be accepted. 3. outcomes of social influence. ★ public compliance ○ you go along with others publicly but may not actually agree internally \ ○ example: You join in laughing at a meme everyone finds funny even if you don’t get it, just to fit in. ★ private acceptance ○ you genuinely adopt the group’s beliefs or actions ○ example: If everyone around you starts following a plant-based diet, and you learn more about it, you might genuinely adopt this lifestyle overtime. 4. theory of mind. ★ definition ○ the ability to interpret others’ thoughts and feelings, which is crucial for social interactions ★ example ○ Imagine your friend is upset after seeing something on Instagram. Even if they don’t say much, you can sense their mood based on their expression and body language. This ability to “read” someone’s feelings is Theory of Mind in action. 5. types of social groups. ★ primary groups: close connections like family/ close friends ★ secondary groups: larger, less personal groups like social clubs or brand communities (e.g., fandoms for a music artist) ★ reference groups ○ aspirational: groups you admire and want to be like (e.g. a group of influencers you follow) ○ associative: groups you currently belong to (e.g., your friend circle) ○ dissociative: groups you avoid or don’t want to be associated with (e.g., avoiding “cringe” content) 6. conformity: when and why? ★ definition ○ conformity is changing one’s behavior to align with the group ★ example ○ When a popular trend starts on social media, like a dance challenge, people conform by participating, either because they enjoy it or don’t want to feel left out. 7. social norms. ★ descriptive norms ○ behaviors that most people in a group engage in ○ example: posting daily updates on social media because you see everyone else doing it ★ injunctive norms ○ behaviors that people believe they should do, even if not everyone does theme ○ example: Environmental campaigns that encourage reusing items. Even if not everyone follows, there’s a sense that they “should”. 8. informational social influence backfire ★ when it goes wrong ○ sometimes, following others without checking facts can lead to errors or panic ○ example: Misinformation on social media, like believing a health trend without evidence (e.g., detox drinks for weight loss), can lead people to follow dangerous or unhealthy advice ★ mass psychogenic illness  ○ a phenomenon where a group experiences similar physical symptoms without a clear physical cause, often due to collective stress or anxiety ○ example: stories of students feeling faint after hearing rumors of something “in the air”, even if there’s no actual threat. 9. obedience to authority (milgram’s experiment). ★ description ○ people tend to follow authority figures’ instructions, even if they disagree ★ example ○ In a workplace, employees might follow instructions they don’t agree with because it comes from a manager, trusting their authority 10. asch’s line judgment studies ★ definition ○ demonstrated how people conform even they know a group’s choice is wrong ★ example ○ If you’re in a group project and everyone agrees on an idea you think is flawed, you might go along with it to avoid conflict, even though you know it’s not the best choice. 09 social influence 1. perceptual categorization ★ definition ○ attending to context and the relation between the object and the context 2. culture a universal phenomenon; a way of life, shared beliefs, values, practices – present i