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8
Memory CHAPTER and Retrieval
CHAPTER OUTLINE
I. What Is Memory? A. Knowledge, Attitudes, and Memory 1. Memory and retrieval are affected by attention, categorization, and comprehension, and by attitude formation processes. B. Memory, Retrieval, and Decision Making 1. Memory and retrieval are important because information stored about an offering may be retrieved later and used to influence action toward it and the decisions made. 2. The information consumers receive about an offering is often acquired at a different time from when it is needed to make purchase, usage, or disposition decisions. What Are the Types of Memory? A. Sensory Memory 1. Echoic and Iconic Memory a) Echoic memories refer to things we hear. b) Iconic memories refer to things we see. 2. Characteristics of Sensory Memory a) Stored in actual sensory form b) Short-lived c) If information is not analyzed, it is lost from the sensory register. d) If it is relevant, we will be motivated to process it, and it will move to the next level of memory called short-term memory. B. Short-Term Memory 1. Characteristics of Short-Term Memory a) Limited--only a certain number of things can be stored in short-term memory b) Information stored in short-term memory is short-lived unless transferred to long-term memory. C. Long-Term Memory 1. Autobiographical Memory a) Represents knowledge we have about ourselves and our past b) Reflects things that have happened to us as well as emotions and sensations c) Tends to be primarily sensory d) In a consumer context, autobiographical memories can relate to acquisition, consumption, and disposition. 2. Semantic Memory a) Knowledge about the world that is detached from specific episodes C. Marketing Implications 1. Each consumer has a large storehouse of consumer-related experiences whose affective associations can affect how products and services are evaluated.
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Eliciting autobiographical memories can play a role in advertising effectiveness by promoting empathy and identification. 3. Consumers value some products because the products promote autobiographical memories by stimulating feelings of nostalgia. 4. Advertising can cause consumers to reinterpret their autobiographical memories. III. How Memory Is Enhanced A. Chunking 1. A chunk is a group of items that can be processed as a unit. 2. Because we can only process three to four chunks at any time, marketers can increase the likelihood that individuals will be able to hold information in STM and then transfer it to LTM if we provide larger bits of information that chunk smaller bits together. a) For example, telephone numbers that are words (1-800-CAL-HOME) may be easier to remember. B. Rehearsal 1. Means we actively and consciously interact with the material we are trying to remember. 2. Likely to occur only for stimuli for which processing is high. 3. When motivation is low, marketers may use tactics that enhance motivation and perpetuate rehearsal. 4. When product price was rehearsed physically by writing it down, consumers had lower repurchase intentions for that product. C. Recirculation 1. A process of remembering information via simple repetition without active rehearsal. 2. Explains why repetition of marketing communications can affect memory, particularly in low-involvement situations. 3. May explain why communications that repeat the brand name frequently, either within an ad or across communications, tend to produce better brand name recall D. Elaboration 1. A means of transferring information to LTM through processing at deeper levels. 2. More enduring memory is established when we think about information and consciously relate it to existing information and past experiences. 3. Elaboration may explain why children and the elderly tend to remember less from marketing communications than do other age groups. E. Marketing Implications 1. Marketers use chunking through the use of acronyms and telephone numbers that are made up of words. 2. When marketers use jingles that are engaging, they often perpetuate rehearsal. 3. Marketers use recirculation when they create different ads that repeat the same basic marketing message. IV. What Is Retrieval? A. Organization of Long-Term Memory 1. Researchers have attempted to represent the organization of long-term memory, or prior knowledge, as a series of semantic (or associative) networks. B. The Semantic Network 1. Trace strength is the extent to which an association (or link) is strongly or weakly connected to a concept in memory. a) The stronger the link that connects information to the product, the more accessible the information is. 2. Spreading of activation
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a) The degree to which other semantic networks can be cued. Retrieval Failures 1. Decay a) Trace strength fades over time. b) Often memory links decay because they are not used. 2. Interference a) Occurs when many competitors advertise similar messages. b) Occurs when one has already stored information about a product or service and new information is difficult to store because of the information already in memory. 3. Primacy and Recency Effects a) Primacy effects refer to the fact that we more easily remember things we encounter first in a sequence. b) Recency effects refer to the fact that things we encounter last in a sequence are more easily remembered. D. Retrieval Errors 1. Things people remember are not always accurate or complete. 2. Memory may be selective, meaning we only retrieve some of it. 3. Memory may be distorted. V. What Are the Types of Retrieval? A. Explicit Memory 1. Memory for some prior episode achieved by active attempts to remember it 2. Recognition a) Occurs when we can simply identify a stimulus we have seen before (1). Brand recognition (2). Ad recognition 3. Recall a) Involves a more extensive activation of the links in memory b) Free recall exists when we can retrieve something from memory without any help. c) Cued recall requires cues to recall. B. Implicit Memory 1. Sometimes we can exhibit memory for things without any conscious attempt at remembering them. C. Marketing Implications 1. The objective of marketing communications is to increase retrieval of a brand name, product attribute, or brand benefit. 2. The value of recognition or recall depends, in part, on how consumers typically buy the product. 3. Implicit memory is an important factor in marketing because consumers can have some memory of information even if they cannot recall it. 4. Important for marketers to develop appropriate measures of recognition, recall, and implicit memory to pretest advertisements. 5. Not all consumers can remember things equally well. a) Elderly consumers' memory is helped by imagery. VI. How Retrieval Is Enhanced A. Characteristics of the Stimulus 1. Salience a) Something that stands out from the larger context in which it is placed b) Salient things tend to attract attention and draw attention from things that are not salient, and induce greater elaboration. C.
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Prototypicality a) Brands that are either prototypical or pioneer brands in a product category tend to be the most accessible. b) These brands have closer associative links to many other concepts in memory and are more likely to be recalled and evaluated when making a decision. 3. Redundant Cues a) Memory is enhanced when the information to be learned has components that seem to go together naturally. 4. The Medium in Which the Stimulus Is Processed a) Advertisers try to determine which medium will most effectively enhance consumer memory. What the Stimulus Is Linked To 1. Retrieval Cues a) A stimulus that facilitates the activation of memory b) Can be generated internally or externally c) The brand name is an important retrieval cue. d) Brand names can also cue affective associations that have been linked to the brand. e) Packages, category names, and logos can also act as retrieval cues. 2. Marketing Implications a) Retrieval cues that are triggered when a consumer is shopping activate advertising-related links in memory. How a Stimulus Is Processed in Short-Term Memory 1. Stimuli processed as images are thought to be more accessible because they involve dual coding. a) They are represented both as pictures and as words in memory. 2. Dual coding provides extra associative links in memory, enhancing the likelihood of retrieving an item from memory. Consumer Characteristics Affecting Retrieval 1. Mood a) Being in a positive mood can enhance the recall of stimuli in general. b) We are more likely to process information that is consistent with our mood. c) We process information in more detail when mood is intense rather than weak.
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Expertise a) Experts have more complex categorical structures in memory with a greater number of higher- and lower-level categories and more detail within each category than novices do. b) Experts' associative networks are more interconnected than the networks of novices. c) Complex linkages and the spreading of activation concept may explain why experts can recall more brands, brand attributes, and benefits than novices can.
CHAPTER 14
Social Class and Household Influences
CHAPTER OUTLINE
VII. Social Class A. Social Class Hierarchy 1. Most societies have a social class hierarchy giving higher status to some classes of people than to others. 2. These groups of individuals share similar values and behavior patterns. 3. Social classes are not formal groups with strong identity but loose collections of individuals with similar life experiences. 4. Social class is not inherently negative, social class distinctions can help individuals determine what their role in society is or what they would like to be (aspirations) 5. All levels of social class hierarchy make important contributions to society. B. Types of Social Class Systems 1. Most have three major classes: High, middle and low a) The United States distinguishes between about six or seven levels. b) The largest concentration of people is in the middle classes. c) Thailand has five social classes. 2. Size and composition of classes depend on the relative prosperity of a particular country. 3. The overprivileged are those who have income levels 20 to 30 percent over the median class and are able to purchase items beyond the basic necessities. 4. Class average families are those who have an income level average to their class. 5. The underprivileged have incomes below the median. C. How Social Class Is Determined 1. Income versus Social Class a) Income does not necessarily determine social class. (1). Income levels often overlap classes. (2). Higher income does not automatically confer higher social status. b) Income can be a better predictor of consumer behavior than social class. Both factors are important in explaining behavior in different situations. Social class tends to be a better predictor of consumption when it reflects lifestyles and values and does not involve high monetary expenditures such as cloths or furniture. 2. Occupation and Education a) The greatest determinant of class standing is occupation. b) Education, skill or training is critical because it often determines the type of occupation. c) Educational attainment is considered the most reliable determinate of consumer's income potential and spending patterns. 3. Other Indicators of Social Class a) Area of residence b) Possessions
c) d) e) f)
Family background Social interactions Inherited status (derived from parents at birth) Earned status (acquired from personal achievements)
VIII. How Does Social Class Affect Consumption? A. Conspicuous Consumption 1. The acquisition and visible display of luxury goods and services to demonstrate one's ability to afford them 2. Occurs with different items across all social classes B. Status Symbols and Judging Others 1. Status symbols indicate their owners' place in the social hierarchy. 2. Parody display--occurs when status symbols move in a reverse way 3. Fraudulent symbols--occurs when status symbols become widely possessed and lose their status connotations C. Compensatory Consumption 1. An attempt to offset deficiencies or a lack of esteem by devoting attention to consumption 2. Conspicuous waste-consumers purchasing items that they do not use. D. The Meaning of Money 1. Goes beyond the utilitarian level and comes to symbolize security, power, love, and freedom. 2. Money as Both Good and Evil a) Money can lead to a higher quality of life and the ability to help others, or to harmful practices and negative emotions. b) Communist countries have viewed money as evil. c) Consumers in countries that have abandoned Communism have a difficult time understanding the concept of consuming.
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Money and Happiness a) The endless pursuit of money does not always result in fulfilled dreams. b) After some people acquire tremendous wealth, money can become meaningless and no longer highly desired. c) Money cannot buy love, health, true friendship, and children, among other things.
IIX. How the Household Influences Consumer Behavior A. Types of Households 1. Familyusually defined as a group of individuals living together who are related by marriage, blood, or adoption. 2. Nuclear familyconsists of a father, mother, and children. 3. Extended familyconsists of the nuclear family plus relatives such as grandparents, aunts, uncles and cousins. 4. Household is a broader term that includes a single person living alone or a group of individuals who live together in a common dwelling, regardless of whether they are related. a) Cohabiting couples--an unmarried male and female living together. b) Gay couples c) Roommate 5. Traditional stereotypes of families where the husband is the primary wage earner, the wife is a non-wage earner and there are two children under the ages of 18 are only about 6% on the decrease. Factors influencing the decrease in traditional families are; later marriages, cohabitation, divorce, dual careers, boomerang children, longer life, and lower birth rate and increase nontraditional families. Single households headed by women are on the increase three times faster than the number of two-parent households. B. Households and Family Life Cycle 1. Bachelor stage (young and single) through marriage and having children to being older couple without children. Factors such as death and divorce can alter household structure. 2. Marketers must consider the variation of needs over the family life cycle and the effect on consumer behavior within households. Generally, spending increases as households when they marry and decrease when they become older single households. 3. What they purchase also changes- new parents spend more money on health care, clothing and furnishing, housing and food and less on alcohol, transportation and education. 4. As families grow, they spend more on housing, furnishings, childcare, and related household services. 5. Young empty nesters spend more on vehicles and clothing. 6. Older single householders and couples spend more on home-based products, health care, and travel. 7. Family in the midst of a life cycle change are more likely to switch brand preferences and be more receptive to marketing efforts. 8. Same-sex couples (gays and lesbians) represent 1123 million consumers are relatively affluent and highly educated. 9. Never-married single mothers represent 4 million consumers between 15 and 44 years old. Teenagers are the largest proportion in the lower income levels.
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Changing Trends in Household Structure 1. Delayed Marriagein many western societies increasing number of people are choosing to delay or never get married. The median age of a man to marry in the U.S. is 27 years old. The median age of a woman to marry in the U.S. is 25. 27 percent of mostly women consist of one person living alone. WhyCarrier priority, more acceptable in society to cohabitate, people with college debt want to reduce debt before they marry. a) Marketing implicationsunique consumption patterns of single households b) Single men spend more on alcohol, new cars, clothes, and education than married men. They are more likely than married men to give gifts of jewelry, watches and clothes. c) Single women spend more on new cars, shoes, entertainment, candy, and housing (to live in a safe area). They are more likely than married women to give gifts of housewares and small appliances. d) Singles in general have more discretionary income and therefore can spend more than couples of the same social class and economic level. e) By delaying marriage, couples typically are in better financial position and can pay for more for a home and furnishings, baby clothes and housekeeping services. Parents over 35 spend more money on housing, home maintenance, furnishings, child care, transportation and food. Couples that delay marriage, usually delay children, which have led to an increase in the use of fertility drugs and the incidences of twins and triplets. 2. Cohabitation a) 5 million opposite-sex U.S. Households more than half have never been married. b) 38% are aged 2534 years old and 20% are 3544 years old. c) The highest percentage of unmarried couples living together is in Sweden. d) Compared to married couples cohabitating individuals tend to be selforiented. e) Many view positions as individual possessions vs. shared. f) Many unmarried partners share expenses, both are likely to work and have higher discretionary income than married couples at similar age (with a nonworking spouse). g) They consume more entertainment, transportation, and vacations vs. married couples. 3. Dual-Career Families a) Those that women are concerned about career advancement and personal fulfillment. More likely has more progressive and contemporary outlook and behavior. b) Those that women work outside the home for financial necessity and considers her employment "just a job". More likely has traditional outlook and behavior. c) Dual-career families spend more money than other families on childcare, eating out, and services in general. d) Since wife is bringing in more financial resources, she is having more influence over family decisions for expensive or important purchases such as vacations, cars and housing. e) Increased burden of having both career and family, leading to role overload and less time for cooking, housekeeping, shopping, and other activities.
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Spend more money on time saving devices such as microwavable means, prepared foods, housekeeping, childcare, fast food and food delivery services. Less shopping time are more likely to be brand loyal, buy impulsively and buy from catalogs or online. g) More husbands are taking on household responsibilities, including shopping, cooking, and for a small growing percentage staying home to care for children. As a result, ads are geared toward men. In Asia such ads are geared toward men are viewed as negative from both men and women since, sex roles are considered more traditional even though more men are handling more housework. Divorce a) Four out of 10 U.S. marriages are likely to end in divorce. Trend has leveled of but the impact for consumer behavior including separation need to be considered. b) Consumers dispose of old possessions, forming a new household and creating new patterns of consumption. c) Can lead to changes in lifestyle and acquiring goods and services forming a new identity and reliving stress during this transition. d) Recently divorced consumers might buy a new house, car, furniture or clothing, get a new hairstyle, or go to singles clubs to assume new image or feel better. e) If divorced and have custody of children may be less economically stable than married counterparts. May be in need of services such as daycare and convenience products such as prepared food etc. f) If divorced with little or no responsibility of children may then to be older and have characteristics more of singles but with generally more income for housing, cars etc than younger single. g) Divorced individuals with children tend to remarry with greater frequency creating stepfamilies. 1/3 of U.S. families of this type. They tend to be younger than intact families with lower income and education and due to stress, conflicting emotions of remarried divorce. h) Consumption patterns of divorce parents tend to have children who travel between families requiring duplicate supplies of clothes, toothbrushes and toys. Smaller Familiesin many countries average household is getting smaller. a) Boomer and Xer couples are having fewer children because of dual careers, financial burdens and concern for overpopulation-some couples believe having more than two children is social irresponsible. b) Average household in the U.S. is 3.14 people. c) More discretionary income to spend on recreational items, vacations, education, toys, and entertainment. d) Can spend more money per child. This is seen in Japan as well were families are spending more money on education, activities and clothing. e) Childless married couples are one of the fastest grouping types of households. Which have more discretionary income than other households do. f) Compared to couples with children, childless couples spend more on food, restaurant meals, entertainment, liquor, clothing and pets. Marketing Implications a) Marketers are recognizing the importance of nontraditional families and developing offerings that cater to their unique needs.
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Products and services that offer convenience can be marketed to dualcareer and divorced households. c) Increase targeting men because of their increased responsibility of household tasks. d) Because dual-career families wives have more influence over the financial spending of higher priced items, ads are focusing on both men and women. e) Nontraditional families are being targeted for items such as Hallmark greeting cards that deal with stepfamily and cohabitation relationships. f) Single men and women are being targeted. In Germany Wal-mart has had great success with singles shopping nights. Where single items are put on display. Wal-Mart reports that sales are up 25% on single nights. Roles that Household Members Play Household decision roles--how household members influence decision processes A. Types of roles 1. Gatekeeper--collects and controls information important to the decision 2. Influencer--tries to express opinion and influence the decision 3. Decider--person or persons who actually determine which product or service will be chosen 4. Buyer--member who physically acquires the product or service 5. User--members who consume the product The Roles of Spouses 1. Influence depends on culture, the product or service, and the couple's relationship. 2. Types of decisions a) Husband-dominant is made by primarily the male head-of-household b) Wife-dominant is made primarily of female head-of-household c) Autonomicprimarily by either husband or wife but not by both d) Syncraticmade jointly by husband and wife. 3. U.S., France and Netherlands decision making is exhibited at a higher level with joint decision-making. 4. Venezuela and Gabon tend to be more toward autonomous decisions. 5. Bargainingwhich involves a fair exchange. 6. Concessionin which spouse gives in on some points to get what he or she wants. 7. Compromisesmaking equitable decisions as a result of negotiations. The Roles of Children 1. Influence depends on the type of product, characteristics of the parents, age of the child, and stage of the decision process. 2. Working and single parents are more likely to let children influence their decisions because of time pressures. 3. The older the child, the more influence he or she will exert. 4. Type of household will determine the nature of children's influence. a) Authoritarian households stress obedience. b) Neglectful households exert little control. c) Democratic households encourage self-expression. d) Permissive households remove constraints. Marketing Implications 1. Marketers need to recognize that household decision roles exist and may be performed by different household members. 2. Marketers can direct their messages toward the entire family.
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More research is needed on how households consume products and services.
CHAPTER 16
Social Influences on Consumer Behavior
CHAPTER OUTLINE
XI. General Sources of Influence A. Marketer-Dominated Versus Non-Marketer-Dominated Influence 1. Marketer-Dominated Sources Delivered via Mass Media a) Include advertising, sales promotions, publicity, and special events 2. Marketer-Dominated Sources Delivered Personally a) Include salespeople, service representatives, and customer service agents 3. Non-Marketer-Dominated Sources Delivered via Mass Media a) News about new products, movie and restaurant reviews, product contaminations, accidents involving products, and incidences of product abuse or misuse 4. Non-Marketer-Dominated Sources Delivered Personally a) Word-of-mouth communications from friends, family, neighbors, casual acquaintances, and even strangers B. How Do These General Sources Differ? 1. Reach a) Number of consumers reached 2. Capacity for Two-Way Communication a) Personally, delivered sources of influence provide a two-way flow of information are and more vivid and thus persuasive. 3. Credibility a) Information delivered through marketer-dominated sources tends to be perceived as less credible, more biased, and manipulative. b) Non-marketer-dominated sources appear more credible because they are not perceived as having a vested interest in our decisions to acquire, use, or dispose of an offering. 4. Marketing Implications a) To the extent possible, it is helpful to have non-marketer-dominated sources promote the marketer's offering in order to enhance credibility. b) Marketing efforts may be more effective when personal information sources are used to enhance two-way communication. c) A mix of complementary sources of influence can enhance impact. C. Opinion Leaders 1. What Are the Characteristics of Opinion Leaders? a) Tend to learn a lot about products b) Heavy users of media like newspapers, TV, radio, and magazines c) Tend to buy new product variants when they are first introduced to the marketplace d) Found to be self-confident, gregarious, and willing to share productrelevant information. 2. Why Do People Become Opinion Leaders? a) Because they have an intrinsic interest in and enjoyment of products
b) May share information because it puts them in a position of power c) May believe their actions will help people 3. Why Do Opinion Leaders Have Influence? a) Generally have no vested interest in whether consumers actually heed their opinions, therefore opinions regarded as unbiased and credible b) Regarded as having knowledge relevant to consumers' acquisition, usage, and disposition options D. Market Mavens 1. Individuals who have information about many products, places to shop, and other facets of the marketplace, and initiate discussions with consumers and respond to requests from consumers for market information 2. Tend to have general information about the marketplace, to be aware of new products early on, and to be heavy users of a wide range of media. E. Marketing Implications 1. Because of the impact opinion leaders have, one marketing implication is to target them directly. 2. Opinion leaders may be used in marketing communications. 3. Marketers can target consumers and ask them to refer to a knowledgeable opinion leader. XII. Reference Groups as Sources of Influence A. Types of Reference Groups? 1. Aspirational reference groups a) Groups that we admire and wish to be like but are not currently a member of 2. Associative reference groups a) Groups we do belong to 3. Dissociative reference groups a) Groups whose attitudes, values, and behaviors we disapprove of and that we do not wish to emulate 4. Marketing Implications a) If marketers know their target consumers' aspirational reference groups, they can associate their product with that group and/or use spokespeople who represent it. b) Marketers need to accurately represent associative reference groups in their ads by reflecting the clothing, hairstyles, accessories, and general demeanor of the groups. c) Marketers can create a brand community which is a social group sharing a specialized interest in the product. d) Dissociative reference groups should be avoided in marketing communications.
XIII. Normative Influence A. How Normative Influence Can Affect Consumer Behavior 1. Brand-Choice Congruence and Conformity a) Brand-choice congruence is the likelihood that consumers will buy what others in their group buy. b) Conformity is the tendency for an individual to behave as the group behaves. 2. Compliance Versus Reactance a) Compliance involves doing what someone asks us to do. b) Reactance is doing the opposite of what the individual or group wants us to do. c) The boomerang effect occurs when we believe our freedom is being threatened. B. Factors Affecting Normative Influence Strength 1. Product Characteristics a) A reference group affects whether we buy a product and what brand we buy. b) Reference groups have little influence on whether we buy necessity items, but may have an effect on whether we buy a luxury item. c) Products consumed in public give others the opportunity to observe what brand we have purchased. d) Normative influence is affected by the significance of the product to the group. 2. Consumer Characteristics a) Some consumers have personalities that make them more susceptible to the influence of others. b) Attention to social comparison information is related to normative influence. c) Tie-strength affects the degree of normative influence. d) Normative influence is also affected by a consumer's identification with a group. 3. Group Characteristics a) Coercive power is the degree to which a group has the capacity to deliver rewards and sanctions. b) Group cohesiveness and similarity also affect the degree of normative influence by allowing for communication and interaction on a regular basis. c) Normative influence tends to be greater when groups are large and when group members are experts. C. Marketing Implications 1. It may be possible to create normative influence by using advertising to demonstrate rewards or sanctions that can follow from product use or nonuse. 2. Marketing organizations may create groups whose norms guide consumers' behaviors. 3. Marketers may attempt to create conformity pressures. 4. Marketers use compliance techniques. a) The foot-in-the-door technique suggests that compliance is enhanced by getting an individual to agree first to a small favor, then a larger one, then an even larger one.
With the door-in-the-face technique, the consumer is first asked to comply with a very large and possible outrageous request, followed by a smaller and more reasonable request. c) With the even-a-penny-will-help technique, individuals are asked to provide a very small favor; because the people would look foolish denying the request, they usually comply and give an amount appropriate for the situation. 5. Asking consumers to predict their behavior increases the likelihood that they will actually behave in the stated manner. 6. Marketers need to make sure consumers believe they have freedom of choice. XIV. Informational Influence A. How Informational Influence Can Affect Consumer Behavior 1. Can affect how much time and effort consumers devote to information search and decision-making 2. It is important for marketers to increase the likelihood that consumers engage in information search, especially if the product is new and superior. B. Factors Affecting Informational Influence Strength 1. Product Characteristics a) Consumers tend to be susceptible to informational influence when the product is complex. b) Informational influence is likely to be high when product purchase and/or usage are perceived to be risky. c) Informational influence is also likely to be high when brands on the market are very different from one another. 2. Consumer and Influencer Characteristics a) Informational influence is greater when the source communicating the information is regarded as an expert. b) Personality traits, such as consumers' susceptibility to reference-group influence and attention to social comparison information, influence the extent to which consumers look to others for cues on product characteristics. c) Informational influence is also affected by tie-strength and culture. 3. Group Characteristics a) Group cohesiveness affects informational influence, with cohesive groups having greater opportunity and motivation to share information. C. Marketing Implications 1. Since source expertise and credibility affect informational influence, marketers can use sources regarded as experts and/or those regarded as credible for a given product category. 2. Informational influence may be enhanced if marketers can create a context for informational influence to occur. 3. Marketing efforts may be most successful when both normative and informational influences are used.
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CHAPTER 18
Symbolic Consumer Behavior
CHAPTER OUTLINE
XV. Sources and Functions of Symbolic Meaning A. Meaning Derived from Culture 1. Cultural categories are natural groupings or categories of objects that reflect culture. a) Time (work time, leisure time) b) Space (home, office, safe/unsafe places) c) Occasions (festive versus somber) d) Gender, age, social class, ethnicity 2. Cultural principles are ideas or values that specify how aspects of culture are organized and/or how they should be perceived or evaluated. B. Meaning Derived from the Consumer 1. Consumers can develop their own individual meanings associated with products. 2. Consumption symbols can be used a) To say something about the consumer as a member of a group b) To say something about the consumer as a unique individual C. The Emblematic Function 1. Geographic Emblems a) Products can symbolize geographic identification. (1). Preppie clothing style symbolizes identification with New England. 2. Ethnic Emblems a) Products and consumption activities can symbolize identification with a given culture or subculture. (1). Clothing and food are used to express ethnic identity. b) Consumers sometimes use ethnic emblems of other cultures to differentiate themselves. 3. Social Class Emblems a) Products we consume reflect our social class. b) Social classes use different symbols in consumption rituals. 4. Gender Emblems a) Products seem to be characterized as having membership in the male or female gender category. (1). Stems from culturally devised notions of fatness and thinness 5. Reference Group Emblems a) Products such as school uniforms can serve as emblems of membership in a reference group. b) Rituals such as debutante balls are sometimes indicators and affirmations of group membership. 6. Marketing Implications a) Marketers play three roles in establishing the emblematic function of products. (1). Symbol Development
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Identifies cultural principles associated with a cultural category and imbues the product with attributes deemed to represent those characteristics (2). Symbol Communication (a) Advertising can imbue a product with meaning through the selection of setting, time of day, types of people in the ad, and how the product is presented. (3). Symbol Reinforcement (a) Other marketing mix elements are designed to reinforce the symbolic image. (4). Symbol Removal (a) Some marketers help consumers erase symbols associated with groups with whom they no longer identify. The Role Acquisition Function 1. Role Acquisition Phases a) We fill many roles in our lives, and these roles are constantly changing. b) Moving from one role to another involves three phases. (1). Separation from the old role (a) Often involves disposing of products associated with the role we are leaving (2). Transition from one role to another (a) Marked by experimentation with new identities (3). Incorporation (a) Taking on the new role and the identity associated with it 2. Use of Symbols and Rituals in Role Transitions a) We feel uncomfortable with a new status because we have not had experience in the role and have little knowledge about how to fulfill it. b) A common reaction is to buy and use many products stereotypically associated with that new role. c) Feedback from others, called reflexive evaluation, tells us whether we are fulfilling the role correctly. 3. Marital Transitions a) When a couple weds, they have to decide which possessions they wish to dispose of and which to move to the new household. b) They begin to acquire new products that are considered culturally appropriate for the role and help them create a mutual history. c) A similar process occurs in the transition from married to single status. 4. Cultural Transitions a) Consumers engage in role changes when they move to a new culture. b) Usually involves abandonment of old traditions and adoption of new ones. 5. Social Status Transitions a) Consumers who newly come into money, the nouveau riche, will ostentatiously spend to demonstrate and validate their new role. 6. Marketing Implications a) Consumers' role transitions have many important implications for marketers. (1). Consumers in transition are an important target market. b) Those leaving a role may wish to dispose of products, which can develop inventory for marketers of secondhand products. c) When consumers are anticipating role transitions, marketers can promote their product as instrumental in incorporating a new role.
(a)
By stressing the importance of product constellation, marketers can persuade consumers in the process of role acquisition to purchase a bundle of goods. e) Marketers can develop services that manage rituals surrounding role transitions. E. The Connectedness Function 1. The use of products and consumption activities that express our membership in a group and serve as symbols of our personal connections to significant people, events, or experiences in life F. The Expressiveness Function 1. The use of products as symbols to express something about our uniqueness-- how we stand out from others 2. Marketing Implications a) Marketers can invoke nostalgia by connecting their product with people, places, or events. b) Marketers can convince consumers their product will help make them stand out as unique. G. Multiple Functions 1. A given product can satisfy several symbolic functions at one time. H. Symbols and Self-Concept 1. When combined, the symbolic functions of products and consumption rituals help to define and maintain our self-concept. 2. Social identity theory proposes that we evaluate brands in terms of their consistency with our individual identities. 3. Actual identity schemas are the separate, multiple identities that reflect our selfconcept. 4. Ideal identity schema is the set of ideas about how the identity we seek would be indicated in its ideal form. 5. Possessions help shape our identity. 6. Marketing Implications a) Marketers play a key role in producing and maintaining an individual's self-concept. b) Marketers should understand how their products fit with the various identities of their target consumers. c) Marketers need to be concerned about whether products are consistent with all aspects of multiple self-concepts. d) Advertising should appeal to the appropriate gender and cultural identity concept. XVI. Special Possessions A. Types of Special Possessions 1. Pets a) Special treatment of pets is culturally specific. 2. Memory-Laden Objects a) Some products acquire special meaning because they evoke memories or emotions of special people, places, or experiences. 3. Achievement Symbols a) Consumers often regard possessions that symbolize achievement as special. 4. Collections a) Collectors often view their collections as extensions of themselves. B. The Characteristics That Describe Special Possessions 1. They will not be sold at market value.
d)
2. Often purchased with little regard for their price 3. Often nonsubstitutable 4. Often not discarded, even after they lose their functional value 5. May not be used for their original functional purpose 6. Can provide powerful emotions 7. Often personified 8. Often personified or treated as though they were our partner C. Why Some Products Are Special 1. Symbolic Value a) Fulfill the emblematic, role adoption, connectedness, and expressiveness functions 2. Mood-Altering Properties a) Can evoke feelings of pride, joy, and comfort 3. Instrumental Importance a) Extremely useful D. Consumer Characteristics Affect What Is Special 1. Social Class a) People in different social classes value possessions differently. 2. Gender a) Men tend to regard symbols of identity as special, especially products that symbolize activity and physical achievement. b) Women tend to regard as special symbols of identity, as well as products that symbolize their attachment to other people. 3. Age a) What is regarded as special changes as people age. E. Rituals Used with Special Possessions 1. Possession rituals enable consumers to claim personal possession of new goods. 2. Grooming rituals used to bring out the best in special products. 3. Divestment rituals are designed to wipe away all traces of our personal meaning in a product. F. Disposing of Special Possessions 1. People dispose of these possessions to mark rites of passage and progression. 2. Often given to close friends and family in the hope that the meaning of the possession is transferred to recipient III. The Transfer of Symbolic Meaning Through Gift Giving A. The Timing of Gifts 1. Culturally determined and timed (e.g., holidays like Valentine's Day) 2. Religious occasions 3. Culturally prescribed with timing specific to the individual (e.g., birthday, weddings) 4. Ad hoc a) As part of a reconciliation attempt b) To form an alliance B. Three Stages of Gift Giving 1. The Gestation Stage a) Motives for and Emotion Surrounding Giving (1). Obligatory--giving because donors feel the situation or relationship demands it (2). Relationship mending--giving to reduce guilt or alleviate hard feelings (3). Antagonistic--giving to "bother" the recipient
C.
The Nature and Meaning of the Gift (1). Nature of gift signals feelings toward recipient (2). Token gifts (a) Not appropriate for clearly demarcated gift-giving occasion (b) May seem highly significant when no gift is expected (3). Gift may symbolize the meaning we wish to transfer to the donor. c) The Value of the Gift (1). Decisions about the value of the gift are culturally determined. d) The Amount of Time Spent Searching (1). Symbolizes the nature and intensity of the relationship the donor has with the recipient. 2. The Presentation Stage a) Rituals or ceremonial aspects, such as gift wrapping b) Timing and surprise element of the gift c) Attention devoted to gift-giving process or recipient d) Reaction donor hopes to elicit from recipient 3. The Reformulation Stage a) Donor and recipient reevaluate their relationship based on the gift-giving process. b) An appropriate gift may strengthen relationship bonding. c) This stage has implications for whether the recipient will reciprocate on the next gift-giving occasion. Marketing Implications 1. Marketers can promote their products and services as gifts. 2. Frivolous products with a higher price and larger donation are preferred in the gift giving process. 3. Technology has created major changes in the gift-giving process. 4. Marketers have become more sensitive to ethnic and religious diversity in the U.S. 5. Alternatives to traditional gifts are increasing.
b)
CHAPTER 20
The Dark Side of Consumer Behavior and Marketing
CHAPTER OUTLINE
XVII. Deviant Consumer Behavior A. Compulsive Buying 1. Inside the Compulsive Buying Experience a) Strong emotional component b) Compulsive buyers feel anxious when not buying. c) Emotional arousal from store's atmosphere d) Emotional high followed by remorse, guilt, shame, and depression e) Think their spending habits would horrify others 2. What Causes Compulsive Buying? a) Low self-esteem b) Fantasy orientation c) Alienation d) Family history 3. Consequences of Compulsive Buying a) Can be financially, emotionally, and interpersonally devastating b) Spending habits of compulsive consumers can hurt children, spouses, and friends. 4. Marketing Implications a) Marketing practices such as attractive displays can foster compulsive buying. b) Marketers can take actions to identify and help compulsive buyers. B. Consumer Theft 1. Prevalence of Consumer Theft a) Retail losses of $30 billion b) Theft is increasing and becoming more sophisticated. 2. Factors Affecting Consumer Theft a) Temptation to Steal (1). Arises when consumers want products they cannot acquire through legitimate forms of acquisition (2). May be too embarrassed to buy through conventional channels (3). Represents a contraband item (4). Thrill-seeking tendency b) Rationalizations for Stealing (1). Feel the environment has encouraged it (2). Social influences encourage theft. (3). More likely to rationalize theft if store has negative public image (4). Consumers whose moral development is weak may not see the act of stealing as wrong. 3. Marketing Implications
C.
D.
E.
Theft has resulted in increased usage of theft-reducing devices. Because retailers have to find a way to pay for lost merchandise and pay for the cost of high-priced security systems, theft increases the price of products. c) Security systems may interfere with retailers' ability to serve customers. Black Markets 1. What Is Traded on Black Markets? a) Legal items in short supply b) Brands c) Illegal items 2. What Affects Black Markets? a) Can fulfill very basic human needs b) Can fulfill experiential needs c) Can fulfill symbolic needs Addictive and Compulsive Consumption 1. Addiction a) Addicted consumers feel a great attachment to and dependence on a product or activity and believe they must use it simply to function. 2. Compulsive Consumption a) An irresistible urge to perform an irrational consumption act b) Six to nine million compulsive gamblers (1). Represent every ethnic and socioeconomic group in society 3. Causes of Addictive and Compulsive Consumption a) Inherited tendencies b) Family-related factors 4. Marketing Implications a) Marketing activities encourage addictive and compulsive behaviors. (1). Industry and marketing practices perpetuate behaviors like compulsive gambling. b) Some marketing activities are aimed at reducing addictive and compulsive consumption. Underage Drinking and Smoking 1. Prevalence of Underage Drinking and Smoking a) Although it is illegal, use is widespread. 2. Consequences of Underage Drinking and Smoking a) Overuse of alcohol has been involved in 70 percent of campus violence. b) Regarded as the number one discipline, emotional, and physical problem on college campuses c) Alcohol is involved in almost half of teenage highway fatalities and youth suicides. d) Health consequences of cigarette smoking include lung cancer and heart disease. e) Tobacco use makes young people more vulnerable to problems of addictive consumption. 3. Marketing Implications a) Distribution systems make it easy for underage consumers to buy these products. (Availability) b) Advertising for these products heightens young consumers' interest in them. (Exposure) c) There is concern that cigarette and alcohol manufacturers are targeting youth by using images they find relevant.
a) b)
Mainstream advertisers may send inappropriate messages about cigarette and alcohol even if they do not sell these products. e) Packaging should more effectively spell out the risks of products. (Warning labels) XVIII. Negative Effects of Marketing A. Does Advertising Affect Self-Image? 1. Idealized Body Images a) Advertisements exemplify traits the many women will never have. b) Focus on thinness is relatively recent and a Western value. c) Social comparison theory proposes that individuals have a drive to compare themselves with other people. 2. Materialism a) Advertising has been criticized for perpetuating materialistic values and making consumers less satisfied with their own lives. B. Does Advertising Misrepresent Segments of Consumers? 1. Ignoring Key Segments a) Women underrepresented b) African Americans and other minorities underrepresented 2. Misrepresenting Key Segments a) Women represented in gender-stereotyped ways b) Asian consumers stereotyped regarding work ethic c) Mature consumers portrayed as weak and unproductive 3. Marketing Implications a) Alienating consumers by either excluding them or failing to represent them accurately can negatively affect consumers' images of and attitudes toward brands and companies and ultimately affect the bottom line. b) Many advertisers have made efforts to represent key segments in their advertising. c) Advertisers are also representing groups in more positive and less stereotypical ways. d) Companies are tailoring communications to key targets with the help of specialty advertising agencies. C. Do Marketing Practices Invade Consumers' Privacy? 1. Sources of Marketing Information a) Scanner data at supermarket b) Place of residence c) Marketing research d) Public domain in the form of zip codes and census data 2. Consumers' Responses a) Consumers feel marketers are getting too much information about them. b) Consumers do not trust marketers' use of personal information. c) Consumers and marketers disagree over who should control information about consumers. 3. Marketing Implications a) A small number of unscrupulous marketers use marketing techniques to defraud consumers. b) Marketers believe the biggest reason for privacy concerns is that consumers do not understand how the information marketers collect is used and might benefit consumers. c) Trends are placing greater power in the hands of consumers. D. How Can Consumers Resist Marketing Practices?
d)
1.
2.
3.
Individual Resistance Efforts a) Demonstrate dissatisfaction by failing to patronize the offending marketers in the future, complaining to the offending marketer, and/or spreading negative word of mouth Advocacy Groups a) Inform the public about marketing practices regarding as socially inappropriate Boycotts a) Organized activities in which consumers avoid purchasing products or services from a company whose policies or practices are seen as unfair or unjust
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - ACCT - 2292
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Troy - FIN - 3331
Chapter 1 An Overview of Financial Management Learning ObjectivesAfter reading this chapter, students should be able to: Identify the three main forms of business organization and describe the advantages and disadvantages of each one. Identify t
Troy - FIN - 3331
Chapter 2 Time Value of Money Learning ObjectivesAfter reading this chapter, students should be able to: Convert time value of money (TVM) problems from words to time lines. Explain the relationship between compounding and discounting, between f
Troy - FIN - 3331
Chapter 3 Financial Statements, Cash Flow, and Taxes Learning ObjectivesAfter reading this chapter, students should be able to: Briefly explain the history of accounting and financial statements, and how financial statements are used. List the t
Troy - FIN - 3331
Chapter 4 Analysis of Financial Statements Learning ObjectivesAfter reading this chapter, students should be able to: Explain why ratio analysis is usually the first step in the analysis of a company's financial statements. List the five groups
Troy - FIN - 3331
Chapter 5 Financial Markets and Institutions Learning ObjectivesAfter reading this chapter, students should be able to: Describe three ways in which the transfer of capital takes place. List some of the many different types of financial markets,
Troy - FIN - 3331
Chapter 6 Interest Rates Learning ObjectivesAfter reading this chapter, students should be able to: Explain how capital is allocated in a supply/demand framework, and list the fundamental factors that affect the cost of money. Write out two equa
Troy - FIN - 3331
Chapter 7 Bonds and Their Valuation Learning ObjectivesAfter reading this chapter, students should be able to: List the four main classifications of bonds and differentiate among them. Identify the key characteristics common to all bonds. Calcul
Troy - FIN - 3331
Chapter 8 Risk and Rates of Return Learning ObjectivesAfter reading this chapter, students should be able to: Define risk and calculate the expected rate of return, standard deviation, and coefficient of variation for a probability distribution.
Troy - FIN - 3331
Chapter 9 Stocks and Their Valuation Learning ObjectivesAfter reading this chapter, students should be able to: Identify some of the more important rights that come with stock ownership and define the following terms: proxy, proxy fight, takeove
Troy - FIN - 3331
Chapter 10 The Cost of Capital Learning ObjectivesAfter reading this chapter, students should be able to: Explain what is meant by a firm's weighted average cost of capital. Define and calculate the component costs of debt and preferred stock. Ex
Troy - MKT - 3361
CHAPTERPRICING PRODUCTS AND SERVICESCopyright 2007 by The McGrawHill Companies, Inc. All Rights Reserved.Slide 12-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. 1. Identify the elements that make up a price. Describe how to establish
Troy - MKT - 3361
CHAPTERINTEGRATED MARKETING COMMUNICATIONS (IMC) AND DIRECT MARKETINGCopyright 2007 by The McGrawHill Companies, Inc. All Rights Reserved. Slide 15-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. 1. 1. 1. 1. 1. Discuss integrated marketi
Troy - MKT - 3361
CHAPTERCreating Customer Relationships and Value through MARKETINGCopyright 2007 by The McGrawHill Companies, Inc. All Rights Reserved. Slide 1-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 1. 1. 1. 1. 1. Define marketing and identify the
Troy - MKT - 3361
CHAPTERDEVELOPING SUCCESSFUL MARKETING AND CORPORATE STRATEGIESCopyright 2007 by The McGrawHill Companies, Inc. All rights reserved.Slide 2-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. 1. 1. Describe the three organizational levels
Troy - MKT - 3361
CHAPTERSCANNING THE MARKETING ENVIRONMENTCopyright 2007 by The McGrawHill Companies, Inc. All rights reserved.Slide 3-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. Explain how environmental scanning provides information about social
Troy - MKT - 3361
CHAPTERCONSUMER BEHAVIORCopyright 2007 by The McGrawHill Companies, Inc. All Rights Reserved.Slide 5-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. 1. Describe the stages in the consumer decision process. Distinguish among three vari
Troy - MKT - 3361
CHAPTERMARKETING RESEARCH: FROM INFORMATION TO ACTIONCopyright 2007 by The McGrawHill Companies, Inc. All Rights Reserved.Slide 8-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. 1. 1. Identify the reason for doing marketing research.
Troy - MKT - 3361
CHAPTERIDENTIFYING MARKET SEGMENTS AND TARGETSCopyright 2007 by The McGrawHill Companies, Inc. All Rights Reserved.Slide 9-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. 1. 1. 1. 1. Explain what market segmentation is and when to use
Troy - MKT - 3361
CHAPTERDEVELOPING NEW PRODUCTS AND SERVICESCopyright 2007 by The McGrawHill Companies, Inc. All Rights Reserved.Slide 10-1AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:1. 1. 1. Recognize the various terms that pertain to products and se