Marketing Management Lecture WEEK 4 FALL 2010 CB PART 2

Marketing Management Lecture WEEK 4 FALL 2010 CB PART 2 -...

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ARJUN CHAKRAVARTI FALL 2010 Consumer Behavior Part II Knowledge Representation, Categorization And Brand Management
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Category Structure: Super and Subordinate Basic Superordinate Subordinate Subordinate Coke Pepsi DP 7-up Cola Non-flavors Beverages Juices Alcoholic Soda Lemon/limes Flavors Sprite M Dew Fanta Seltzer Data collected by Pepsi Co. Method. Pepsi extracted this structure by first identifying category levels. Participants were then asked to rate
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Powerful apriori Categorizations Condition 3: Blind taste test Result: People slightly prefer Balsamic Condition 4: Told Balsamic after rating Result: “oh, I must like balsamic beer” Lee, Frederick, and Ariely 2006.
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Powerful apriori Categorizations Several reasons why this might occur: (1) People don’t really sample the balsamic (Swallow fast, etc.) (2) People look for reasons to confirm their apriori beliefs. (3) When they find information that’s counter, they can update, but not without some post-hoc justification. Lee, Frederick, and Ariely 2006.
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Important Takeaway Story: Categories help consumers “make sense” of the world. In science, we like to “disconfirm” hypotheses. It’s behaviorally adaptive for the mind to work in the opposite way and seek confirmatory information to that keep our category structures in tact. It’s extremely hard to change categorical structures. (Some ad campaigns can take 20 years to do it) Kahneman and Tversky (1974)
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CATEGORIZATION (Branding Contexts)
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Basic Properties of Categorization A key component of Learning and Memory Rosch (1974), Barsalou (1985) We need to categorize because of quantity of info in environment How do we categorize? By similarity 3 Types Basic Superordinate Subordinate
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Categorization A key component of Learning and Memory. Happens from birth and evolves over the lifecycle. Rosch (1974), Barsalou (1985) Creates a points of reference for large quantities of info in environment Categorization process: similarity judgment or consistency with a causal rule/explanation DRIVERS OF STRUCTURE Age effects Personal relevance New information Expertise CATEGORY LEVELS Basic / Focal Level Superordinate Subordinate
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Category Structure: Super and Subordinate Basic Superordinate Subordinate Subordinate Coke Pepsi DP 7-up Cola Non-flavors Beverages Juices Alcoholic Soda Lemon/limes Flavors Sprite M Dew Fanta Seltzer Data collected by Pepsi Co. Method. Pepsi extracted this structure by first identifying category levels. Participants were then asked to rate
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Graded Structure of Categories Data collected by Pepsi Co. Category: “COLA” COKE PEPSI Dr. Pepper RC What is the basis for this categorization? Taste? Frequency of consumption?
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Marketing Management Lecture WEEK 4 FALL 2010 CB PART 2 -...

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