Chapter 5 continued
According to expected utility theory all alternatives consist of two components: p and v.
EV = p x v. All alternatives can be ranked in terms from worst to best (in terms of
If you want to segment your market, you need segmentation criteria.
Common (most important word for the definition) why? one basic assumption of
market segmentation: consumer have different tastes. Within a segment, all consu
Questions chapter 3
Slide 9 externally imposed vs. intrinsically motivated any specific difference?
Can you encourage consumer laziness? Is consumer laziness something beneficial in the
sense marketers should be willing to encourage it? (p. 68)
Chapter 5 continued
1. Reference dependence: all outcomes are evaluated with respect to a neutral
reference point. When reference points change, so do preferences.
2. Loss aversion.
3. Diminishing sensitivity.
Slides with three questions (same question, 3
Persuasion = attitude change.
Marketers persuade consumers to buy the product. They try to change their attitudes
towards a product or brand.
When there is no attitude change, the consumer is not persuaded.
Example: apple iPhone 4 now use a gala
> The process of acquiring new information and knowledge about products and services
for application to future behavior.
> Learning Knowledge Memory
> People try to apply the new acquired information to old information and this can be
Motivation and affect are closely related because:
a. They make people act, they influence behavior, drive them to act. E.g. I feel like
eating ice cream can relate to both.
b. When motivations are satisfied, consumers feel positive emotions.
The process of retrieving, selecting and interpreting environmental stimuli with the
It helps us to define the world around us.
It allows us to create meaning from our environment.
It is extremely difficult for people
> Unconscious processing = automatic processing = nonconscious processing.
> The mental processes that occur without awareness or intention, but nevertheless
influence judgments, feelings, goals and behaviors.
> Nisbett and Wilson (1977): exper