Session # 2 Chapter 3.ppt
- 1. Information . . . . . .is the content of what is exchanged with the outer world as we adjust to it and make our adjustment felt upon it. . . . allows us to adapt to and even influence the world around us.
- 2. Information Processing Concepts to learn: Information processing model Absolute threshold Adaptation Attention Stage Involvement JND/ Weber’s law Subliminal Perception Comprehension stage
- 3. Information Processing . . . . . . is the process through which consumers are exposed to information, attend to it, comprehend it, place it in memory, and retrieve it for later use.
- 4. Three Important Factors Influence Information Processing: Perception Involvement Memory
- 5. Information input Exposure Attention Comprehension Involvement Memory Consumer Information Processing Model
- 6. Perception . . . . . . is the process through which individuals are exposed to information, attend to the information, and comprehend the information.
- 7. Three Stages of Perception Exposure stage - consumers receive information through their senses. Attention stage - consumers allocate processing capacity to a stimulus. Comprehension stage - consumers organize and interpret the information to obtain meaning from it.
- 8. Consumer Involvement . . . . . . is the perceived personal importance and/or interest attached to the acquisition, consumption, and disposition of a good, service, or idea. – As involvement increases, the consumer has greater motivation to comprehend and elaborate on information.
- 9. Several factors influence the level of the consumer’s involvement: Type of product being considered; Characteristics of the communication received by the consumer; Characteristics of the situation within which the consumers is operating; Personality of the consumer.
- 11. Involvement Has Multiple Dimensions: Hedonic importance Self-expressive importance Practical relevance Purchase risk
- 12. Factors That Increase Involvement Self expressive Importance: Products that help people express their self concept Hedonic importance: Products that are pleasurable, interesting, fun, fascinating, and exciting Practical relevance: essential or beneficial Purchase risk
- 13. Two Main Types of Consumer Involvement Situational - Occurs over a short time period and is associated with a specific situation, such as a need to replace a product that has broken. Enduring - Occurs when consumers show a consistent high-level of interest in a product and frequently spend time thinking about the product.
- 14. As Involvement Levels Increase: – Consumers tend to process more in-depth information – General increase in arousal levels – Consumers are likely to give more diligent consideration to information relevant to the particular decision – More likely to be an extended decision- making process
- 15. Bottom Line on Involvement You must know the level of involvement of your customers. Measure the level of enduring involvement. May identify multiple consumer segments. High involvement versus low involvement segments. Will target with different promotions. High involvement segments may be early adopters.
- 16. Sensation Refers to the immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers) to such basic stimuli as light, color, sound, odors, and textures.
- 17. External stimuli, or sensory inputs, can be received on a number of channels (eg.see a billboard, hear a jingle, taste a drink , smell a perfume, feel the warmth of cashmere sweater) 1). The inputs picked up by our five senses constitute the raw data that begin the perceptual process. 2). External stimuli can trigger memories from the past. The resulting responses are an important part of hedonic consumption (the multisensory, fantasy, and emotional aspects of consumers’ interactions with products). – lipton bringing back old jingle
- 18. The unique sensory quality of a product can play an important role in helping it to stand out from the competition, especially if the brand creates a unique association with the sensation Meanings are communicated on the visual channel through a product’s size, styling, brightness, distinctiveness vis a vis competitors Have symbolic and cultural meaning, and more powerful meanings make color a central aspect to marketing strategies. Color is a key issue in package design. Saturated colors such as green, yellow, cyan, and orange are considered the best hues to capture attention. Decisions on color help to “color” our expectations of what’s inside the package. Vision
- 19. Some color combinations come to be so strongly associated with a corporation that they become known as the company’s trade dress, and the company may even be granted exclusive use of these colors. a). Usually, trade dress protection is granted only when consumers might be confused about what they are buying because of similar coloration of a competitor’s packages.
- 20. This VW Ad Pokes Fun at the Practice of Color Trend Forecasting
- 21. Color impact Lower-income consumers prefer simple colors (grass green, blue sky); Higher-income people like complex colors (gray-green with a hint of blue); Wealthiest 3 percent like forest green and burgundy. A recent color preference survey of 5000 adults found red, blue, and black to be the favorite colors for clothing. Beige was favored for big-ticket home products such as carpets and upholstered furniture. Older people are more likely to prefer beiges and browns, while younger respondents prefer black The color red is arousing, but this quality may be only in the eye of the beholder.
- 22. Sound Many aspects of sound affect people’s feelings and behaviors. Jingles maintain brand awareness, background music creates desired moods. The Muzak Corporation estimates that 80 million people hear their “background” music everyday. Functional music-for relaxing or stimulating. Research has shown that workers tend to slow down during midmorning and midafternoon. Muzak uses upbeat tempo music during these times to stimulate activity. This is called “stimulus progression.” ( shopping-slow beat, fast food-fast beat)
- 23. Touch Though much research needs to be done in this area, moods are stimulated or relaxed on the basis of sensations of the skin. Touch has been shown to be a factor in sales interactions: 1). People associate the textures of fabrics and other surfaces with product qualities (e.g., smooth, rough, silky, et cetera). 2). Men often prefer roughness, whereas females prefer smoothness and softness.
- 24. This Caress Ad Uses Tactile Stimulation as a Selling Point
- 25. Taste Our taste receptors contribute to our experience of many products and people form strong preferences for certain flavors. 1). Specialized companies (called “flavor houses”) try to develop new concoctions to please the ever changing and demanding palates of consumers. 2). New fads with respect to taste include products that taste “hotter”( spicy, or stronger mint) and those that avoid harmful additives.( natural, organic)
- 26. This Ad Uses Taste to Motivate People to Buy Their Product
- 27. FYI "Plain" vanilla has become a flavorful marketing concept. Vanilla flavored or scented products, from perfumes and colognes to cake frosting, coffees, and ice cream, are currently big sellers for the flavor industry. Coty Inc. introduced Vanilla Fields cologne spray in 1994, and reported $25 million in retail sales over a four-month period. One industry executive explains that the flavor's popularity is because vanilla "evokes memories of home and hearth, warmth and cuddling."
- 28. It’s the degree to which people notice a stimulus that is within range of their sensory receptors An initial stage of perception Consumers concentrate on some stimuli, are aware of others, and even go out of their way to ignore some messages. Exposure
- 29. Zapping, or channel surfing, with the television remote control is a problem for advertisers. Industrial: blocked by secretary, messages not returned, etc.
- 30. Methods to reduce problems of audience erosion Format Change place less important material in the interior of program Spread Commercials Place more ads on cable channels Strategic Timings Place important material early in commercials. Try to obtain first position in series of commercials Budget more for print and other media Persuade networks to show fewer ads
- 31. Sensory Thresholds The science that focuses on how the physical environment is integrated into our personal, subjective world is known as psychophysics. When we define the lowest intensity of a stimulus that can be registered on a sensory channel, we speak of a threshold for that receptor. The absolute threshold refers to the minimum amount of stimulation that can be detected on a sensory channel. Absolute threshold is an important consideration in designing marketing stimuli- ex. a billboard with an entertaining copy but tiny font- highway.
- 32. Absolute Threshold The lowest level at which a stimulus can be detected 50percent of the time As the intensity of stimulus increases, the likelihood that it will be sensed also increases
- 34. Subliminal Perception . . . A. Refers to presenting a stimulus below the level of conscious awareness in an attempt to influence behavior and feelings. B. Does it work? parallel systems, so may impact broad emotions.
- 35. Theories to explain subliminal perception 1. Incremental effects theory Over many presentations of a stimulus, a stimulus representation is gradually built into consumer into consumer nervous system. At some point this representation reaches behavioral threshold level and causes changes in the person’s action 2. Psychodynamic theory of arousal: Assumes that unconscious wishes to engage in some behavior and can be activated by unconsciously presented stimuli
- 36. Is Subliminal Persuasion Effective? Extensive research has shown no evidence that subliminal advertising can cause behavior changes Some evidence that subliminal stimuli may influence affective reactions
- 38. The pools of condensation spell out the word sex. The letters SeX are, admittedly, upside down.
- 39. The Just Noticeable Difference Threshold (JND) . . . A. . . . is the minimal amount of difference in intensity of a stimulus that can be detected 50% of the time. B. Examples: changing size of package, changing taste, changing the quality of sound, or touch, or smell of product.
- 40. Weber’s Law A theory concerning the perceived differentiation between similar stimuli of varying intensities (i.e., the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different).
- 41. Weber’s Law and the JND Weber's Law states that as the intensity of the stimulus increases, the ability to detect a difference between the two levels of the stimulus decreases. JND--Just Noticeable Difference – JND = Intensity X Constant (.20 rule of thumb) – How much to lower price of $20,000 car? Is pricing JND? No!! Is “just meaningful difference.”
- 42. Marketing Applications of the JND Need to determine the relevant j.n.d. for their products – so that negative changes are not readily discernible to the public – so that product improvements are very apparent to consumers
- 43. Marketing examples of the JND Pricing: When raising price, move less than JND When lowering the price for sale, move more than JND Sales Promotion: Make coupons larger than JND Product: Make decreases in size of packaging less than JND when the word new is used make sure the product change is greater than JND Packaging To update package styling and logo keep within JND To change Image, make styling changes greater than JND
- 44. Betty Crocker Changes Fall Below the J.N.D.
- 45. Gradual Changes in Brand Name Fall Below the J.N.D.
- 46. Consumer Adaptation . . . . . . is the amount or level of the stimulus to which the consumer has become accustomed. – A reference point to which changes in the level of the stimulus are compared.
- 47. The Butterfly Curve . . . . . . is the idea that something slightly different may be perceived more positively. AL Liking Stimulus intensity High Low
- 48. Marketing Application of Butterfly Curve Marketing application i. Why fashion trends change so often ii. Why radical fashions are adapted slowly iii. Spontaneous brand switching iv. Periodical change in corporate logos and other corporate symbols to give a fresh look
- 49. The Attention Stage Before consumers can comprehend and remember information, they must first attend to it. – Attention involves the allocation of cognitive capacity to an object or task so that information is consciously processed. – The more demanding the task, the greater amount of attention will be focused on it.
- 50. Types of Attention Pre-attention is an unconscious process in which consumers automatically scan the features of the environment. Attention can be voluntary or involuntary. – Selective attention is voluntarily selectively focusing on relevant information. – Orientation reflex is the involuntary reflex of when something surprising or novel is presented one turns toward and allocates attention to it.
- 51. Capturing Customers’ Attention Goal is to activate the orientation reflex by creating stimuli that surprise, threaten, annoy,or violate the expectation of consumers.
- 53. Grabbing Consumer Attention Connect with consumer needs Reminding them of their needs before showing them how the product can satisfy needs Snicker’s TV advertisement: Starts with the question, “ Hungry”. Viewers are then instructed to grab snickers as they see a human hand voraciously devour the product Look ! It moves Colors are nice Make it more intense( Loud sounds, bright colors) Make it Bigger Distinctiveness Contrast with other elements in the perceptual field in which the object appears( Using different colors and shapes in packaging
- 54. Grabbing Consumer Attention Location! Location! Location: Products located at the end of the aisle or on shelves at eye level stand better chance of getting attention An ad’s location in the magazine influences attention Greater attention is given to the ad in the front part than in the back part of magazine, on right hand pages than on left hand page, and on the inside front, inside back, and outside back covers For smaller ad, upper left hand corner of the page gets the maximum attention whereas lower right hand corner is least likely to get attention The surprise factor The Human Attraction ( Showing attractive endorsers)
- 55. Grabbing Consumer Attention The entertainment factor “Learned” Attention inducing stimuli Some stimuli attract our attention because we have been taught or conditioned to react to them Ringing phone or doorbell Certain words or phrases are associated with things we desire, Examples, word “ free” words that show saving money, “ Clearance Sale”, “Special offer” or “50% Off” Look for less cluttered Environment
- 57. The Comprehension Stage . . . . . . is the process in which individuals organize and interpret information Perceptual organization is the way people perceive the shapes, forms, figures, and lines in their visual world. Interpretation process is how people draw upon their experience, memory, and expectations to attach meaning to a stimulus.
- 58. Perceptual Organization Gestalt psychologists attempted to identify the rules that govern how people take disjointed stimuli and make sense out of them. The anal retentive artist--Esher.
- 59. Stimulus Organization One factor that determines how a stimulus will be interpreted is its assumed relationship with other events, sensations, or images. 1). Our brains tend to relate incoming sensations to others already in memory based on some fundamental organizational principles. a). These principles are based on gestalt psychology (meaning is derived from totality of a set of stimuli). In German, gestalt means whole, pattern, or configuration. b). Sometimes the “whole is greater than the sum of its parts.”
- 60. Principles include: a). The closure principle--people tend to perceive an incomplete picture as complete. We fill in the blanks. b). The principle of similarity-- consumers tend to group objects that share similar physical characteristics. c). The figure-ground principle--states that one part of a stimulus will dominate (the figure) while other parts recede into the backdrop (the ground).
- 61. figure/ground •we need to separate a dominant shape (a 'figure' with a definite contour) •Is the figure a white vase on a black background or silhouetted profiles on a white background? •we tend to favour one interpretation over the other (though altering the amount of black or white which is visible can create a bias towards one or the other) • When we have identified a figure, the contours seem to belong to it, and it appears to be in front of the ground.
- 62. Billboard for Wrangler Jeans Makes Creative use of the Figure-Ground Principle
- 63. proximity What you are likely to notice fairly quickly is that this is not just a square pattern of dots but rather is a series of columns of dots . The principle of proximity is that features which are close together are associated. Here we are likely to group the dots together in rows.
- 64. We are more likely to associate the lines which are close together than those which are further apart. In this example we tend to see three pairs of lines which are fairly close together (and a lonely line on the far right) rather than three pairs of lines which are further apart (and a lone line on the far left).
- 65. similarity Here the little circles and squares are evenly spaced both horizontally and vertically so proximity does not come into play. However, we do tend to see alternating columns of circles and squares. This is because of the principle of similarity - features which look similar are associated. Without the two different recurrent features we would see either rows or columns or both...
- 66. continuity This principle is that contours based on smooth continuity are preferred to abrupt changes of direction. Here, for instance, we are more likely to identify lines a-b and c-d crossing than to identify a-d and c-b or a-c and d-b as lines.
- 67. closure Interpretations which produce 'closed' rather than 'open' figures are favoured. Here we tend to see three broken rectangles (and a lonely shape on the far left) rather than three 'girder' profiles (and a lonely shape on the right). In this case the principle of closure cuts across the principle of proximity, since if we remove the bracket shapes, we return to an image used earlier to illustrate proximity...
- 68. This Ad Demonstrates the Use of Closure: People Have to Mentally Fill in the Gaps in the Sentence
- 69. Interpretation . . . . . .is trying to gain an understanding of something garnering our attention
- 70. Interpretation Arrives at a understanding of what stimulus is. Retrieve from long term memory information pertinent to the stimulus, as well as expectancies regarding what the stimulus “ should be like Personal inclination and biases also influence consumer interpretation of the stimulus Role of Expectation Expectations are person’ prior beliefs about what should happen in a given situation ( vanilla pudding dark brown color was perceived to be most tasting chocolate pudding)
- 71. Conceptual Relationship of Price Effect Objective Price Perception of price Perceived Quality Perceived Sacrifice Perceived value Willingness to Buy + _ + _ + _
- 72. Brand Name Perception of Brand + Store Name Perception of Store + Objective Price Perception of Price + Perceived Quality + Perceived Value + _ Willingness to Boy Perceived Sacrifice _ _ Expanded Conceptualization to Include Brand and Store Name
- 73. Price Quality Relationship High price indicate high quality under following circumstances: 1. The consumer has some confidence that in this situation price predicts quality 2. There are real or perceived quality variations among the brands 3. Actual quality is difficult to judge by objective means 4. Larger differences in price have greater impact on perceived quality than do smaller differences 5. Consumer use price as indicator of quality more frequently for familiar brands than for unfamiliar brands
- 74. Semiotics-the symbols around us The field of study that examines the correspondence between signs and symbols and their role in the assignment of meaning. Every marketing message has 3 basic components: 1. Object- is the product that is the focus of the message ( marlboro cigarettes) 2. Sign-is the sensory imagery that that represents the intended meaning of the object( marlboro cowboy) 3. Interpretant-the meaning derived ( rugged, individualistic, American)
- 75. Marlboro cigarettes Cowboy Rugged American Sign ( image) Intrepretant (meaning) Object ( product)
- 76. Levi’s: American Products Like Levi’s Jeans are in Demand Around the World
- 77. Semiotics: Key Concepts Signs: words, gestures, pictures, and other symbols that convey meaning. Use semiosis analysis to identify meanings transmitted. Focus groups provide methodology. Cross-cultural: do back translations.
- 78. Perceptions and Marketing Strategy Brand name and logo development Create names that convey appropriate meaning for products Compaq, com means computer and communication, paq mean compact. Unique spelling attract attention and gives scientific impressions In general, concrete terms with relevant, established visual images are easy to recognize and recall
- 79. Perceptions and Marketing Strategy Retailers use exposure very affectively i. Frequent sought out items separated ii. High margin items are often placed in high traffic areas to capitalize on increased exposure iii. Shelf position and amount of shelf space influence which items and brands are allocated attention iv. Point of purchase displays to attract attention to sale and high-margin items v. Store are designed with highly visible shelves and overhead signs to make locating items as easy as possible
- 80. Perceptions and Marketing Strategy c. Media strategy: the fact that exposure process is selective rather than random is the underlying basis for effective media-strategy i. Determine which media the consumer in target are most frequently exposed to and then place the ad in that media ii. For high involvement product, consumer would look for more information, print media best selected iii. Low involvement products, TV advertisement may be most suited d. Advertisement Design: for low involvement products i. Utilize stimulus characteristics, full page, bright colors, animated cartoons etc. ii. Tie the message to a topic the target market is interested in. celebrities, humor, sex etc.