Sinem's Notes-Session 20

Sinem's Notes-Session 20 - 3 /28/2011 Attribution Theory...

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Unformatted text preview: 3 /28/2011 Attribution Theory • A theory of how individuals find explanations for events , or causes of effects or behavior 1. Stability: Is the cause of the event temporary or permanent? 2. Focus: Is the problem consumer- or marketer- related? 3. Controllability: Is the event under the consumer's control? Or is it under marketer's control? Attribution Theory • Explanations of causes of (unfavorable) outcomes affect satisfaction/dissatisfaction. • People tend to make internal attributions (i.e., to themselves) for success but external attributions (e.g., to the firm) for failure. • Dissatisfaction with firm increases when consumers attribute product failure to factors under the firm's control. 1 ID M I C H I GAN '. ~' , M KT 3 13 C ONSUMER B EHAVIOR Prof. Carolyn Yoon Session 20 March 28, 2011 Winter 2011 © Copyright 2011 by Carotyn Yoon. All rights reserved T oday • Social Influence T oday • Cultural Influence N ext Monday, April 4: • "A Case for Brand Loyalty" 2 1 Flows of Influence in the Social Environment ( C Ulture) V ~~ Fam iIy ) (;;::..--Me-d-ia----­ consumers Sources of Influence • General influence sources • Marketer vs. non-marketer dominated • Delivered personally or via mass media • Differ in reach, capacity for two-way communication, and credibility • Special influence sources ~ • Opinion leaders e~ · O pro.. • Market mavens A('oII.L>-I L)Jlntc<.Jr c.fclJ-+O( 01UCXj(j2..~ a • Groups as influence sources 2 S ources of Influence M a r k et ing So u rce 1 M aH M e d io Deli ve r ed No n ma r keting S ou rc,: Adverti~l ~ Sate, f;.romotiom C~ lNuesJ rfNi t)v"5 /b"-'s} Pr09l't1 l'n COI)lent E-xterr"- ,lUIlQor-16O'T u ln h ' . - - ~ ol S'Yl!lt1k ""«i .2 ' ltrtvnl (ommunitffH, 4 SoI.."..",I. Pe.r .so n ally 'c S C..J) ~rol h (:roc ~/t~ rc Jnc$ Ch lbr/ e:rg.:l ra: r.c:fi9'n! 3 I ..9 I Nfr~J_$ Publ,ci'r Se~ce , 0> '2 - E mod Qno ~ , .-eb~; r e( Di r&dmoi! c..1 1p10e00 Delrve red (Exhibit 15.2) f (m;ir,. h /of1< L, esento.ll·~ N "~ C uttom er ser,oo; ce c~ ~ .­ ~orl. P-fS : Spec, d E 1 .. g , ". . , !4 L1r~ O pimon . e{...'· 3: ;, ,!. . ., <;:a ~ I :C~q~"~rll\ii.Kh;, _ Qo $ ~ mbt ~ 'c , ..9 ~#~V) ~0ef ..\.-v.) -'" a> :i' teod ...1' ~ • Question : How would you characterize social influence exerted by Social Media? 5 Reference Group • One or more people that someone uses as a basis for comparison or point of reference in forming affective and cognitive responses and performing behaviors. • Types of reference groups L \ \ ' 100 c ub) ~d.~\D() ./2:-- ~ • ~ • embership, Aspirational, Dissociative How can we describe reference groups? • • • • • • Degree of contact: Primary versus secondary Formality Homophily Density Degree of identification Tie-strength 6 3 - - - - - -- - What Influences Adoption and Resistance? (from Diffusion of Innovations) • Social relevance • Observability • Social value • Legitimacy and adaptability • Characteristics of the social system • Modernity • Homophily • Physical distance • Opinion leadership 7 Influence • Normative Influence • Brand choice congruence and conformity • Compliance versus reactance • What makes normative influence strong or weak? • Product characteristics • Consumer characteristics • Group characteristics • Coercive power • Informational Influence 8 4 Reference Group Influence on Products and Brands uxury N'ecessity Co r Product: Brand: ~ h,o(\ Product: Brand: ~ Private Product: Brand: Product: Brand: Social Influence Principles • Social validation principle • Perceived validity of an idea increases as the number of people supporting the idea increases, • Scarcity principle • Fashion • Authority principle ~'/ r-'-lrJi) A 'dI{)E- d ) • Milgram's experimen tS( 1963): Slight shock, strong shock, intense shock, danger: severe shock, and maximum (450 volts) 10 5 Social Influence Principles Liking principle • Consumers prefer to say yes to someone they know and like. • Consistency principle • People like consistency • First make a small request and then follow up with a larger request (foot- in t he-door technique) • Be a safe driver! -DRIVE CAREFULLY • T to get an initial commitm nt from customers and _ II _ ue.lt th n change the deal (Iow-b II t echnique) . L7 5 y b.Yt1Me Q SITU»-. ~~ ""in"'- 0.. \o.rqC2r ~ . Social Influence Principles • Reciprocity Principle y • When someone does you a favor, you feel obliged ---P" ~ to return the favor (the reciprocity principle). .rDrflPC • Free gifts or samples ~ • A large request followed by a small request (door-in-the-face technique) • That's-not-all-technique (a deal that is changed into a better deal) . • Multiple-deescalating-requests technique • Make extremely small requests (even-a penny technique) f r­ r./ 9--j lot#!. /! -/IJfi on II iF; 10 ':'~d?f 12 6 Word-at-Mouth • Word-of-mouth can influence not only outrageous or edgy products but "regular products" as well. • Word-of-mouth can be created by a carefully managed marketing program. • Counter culture has a greater ability to start word-of-mouth. • Copycat companies can gain substantial profits if they know when to jump in. • When used either too early or too much , media and advertising can undermine word­ of-mouth. To Generate Word-at-Mouth ... • Seed the vanguard (e.g., A&F recruits college students from popular fraternities) • Ration supply (e.g., scarcity) • Exploit icons to beget buzz (e.g., celebrity endorsement) • Tap the power of lists (e.g., MBA rankings) • Nurture the grass roots (e.g., focus on early­ adopters who try to convert other people) • Create buzz • Buzz experts • Bzzagent.com 7 H vJ ~ ) f+ c!J. What is Buzz Marketing? -#10.: u(,roJ-­ • "the exponential expansion of word-of­ mouth" communication. Buzz is the result of specific marketing activities that creates conversation, excitement, and anticipation around a brand, service or prod uct." C ;o/lSUtYllf ~1Ua::fi2-c ;()ar~- I'P." J j /l1J'ter! rok- Source: Hawkins, Mothersbaugh & Best (2009) 15 Buzz, Viral, or "Word-of-Mouse" • What determines whether marketing-related information gets pq. ssed along via Social Mediq ?_ ' 0 . - ) -J-.-O( e..- fV"0.0 r aJL- \ (\ u 0 10 ~ - re.AJ1--V () a :L ~ '1rrterac..-f!(Jl2- - u .../t''efc2 C n{\ pa,-t-k : J p~ - Pfo6uc1 ~i- < ~ So oJ- \ ) \ 12--I CD~ PD ~+ CfU Q-f(IO+\O~ ~ -(,+ rs ;J.arnO ~ Lo-~ G~ S ...;,sp(\ ~(~}e.16 8 ...
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This note was uploaded on 02/09/2012 for the course MKT 303 taught by Professor Rajeevbatra during the Fall '11 term at University of Michigan.

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