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You are expected to comment on this discussion topic based on your learnings from textbook, PowerPoint slides, and other resources such as articles from google scholar or library. Your comment have to be minimum 150 words. You also must make a comment on at least one other students' to get the full points for this discussion. Your comment on the other student's post should be constructive and critical and more than just agreeing with them.  Be sure to include strengths as well as recommendations for improvement.

 

The due date for this discussion activity is November 18th.

 

Discussion topic:

 

First, identify a firm that would like consumers to believe something different from what most consumers currently think. Think about different attitude change strategies discussed in the book (e.g., adding beliefs, changing affect, two-sided appeals), then discuss strategies that could be used in an advertising or promotional campaign to bring about this change.

 

You should consider cost effectiveness and feasibility in your evaluation. For example, it is very difficult to change currently held beliefs. Therefore, if you suggest trying to do this, you must specify how and how realistic you expect this effort to be. Note that if you suggest heavy repetition of an advertising campaign, the firm or organization in question should have the resources to be able to afford this.

write a comment on it for 150 words: 

Advertisement is one of the vital elements in the marketing department of any business. It refers to a public announcement which aims at promoting goods or services offered by a particular enterprise. Advertisement affects the decision making of a customer who may include changing the beliefs currently held by the consumers about a specific good or service. Several strategies are used to change consumer behavior and switch to certain products or services. One such approach is changing effect through classical conditioning.

Classical conditioning is learning through stimulus associations and involves pairing a product with a stimulus that is liked by consumers. This method makes consumers establish a relationship between two stimuli. Classical conditioning will ensure that the customers develop a positive attitude towards the products of the company. This positively affects the demand of the product hence increasing the sales in a business enterprise. The strategy emphasizes behavioral learning from the surrounding environment.

Consumer Behavior: Buying, Having, and Being

Twelfth Edition

Chapter 9

Decision Making

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.

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Learning Objectives (1 of 3)

9.1 The three categories of consumer decision-making are cognitive, habitual, and affective.

9.2 A cognitive purchase decision is the outcome of a series of stages that results in the selection of one product over competing options.

9.3 The way information about a product choice is framed can prime a decision even when the consumer is unaware of this influence.

9.4 We often fall back on well-learned “rules-of-thumb” to make decisions.

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Learning Objectives (2 of 3)

9.5 Marketers often need to understand consumers’ behavior rather than a consumer’s behavior.

9.6 The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use.

9.7 Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

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Learning Objective 1

The three categories of consumer decision-making are cognitive, habitual, and affective.

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Consumer #1:

I want the one I read about in the latest issue of Car and Driver magazine: It has a six-cylinder turbo engine, a double-clutch transmission, a 90 strokebore, and 10:1 compression ratio.

Consumer #2:

I want a red one

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Figure 2.1 Three Types of Decision-Making

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Learning Objective 2

A cognitive purchase decision is the outcome of a series of stages that results in the selection of one product over competing options.

Cognitive misers

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Figure 2.5 Stages in Consumer Decision Making

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Stage 1: Problem Recognition

Occurs when consumer sees difference between current state and ideal state

Need recognition: actual state declines

Opportunity recognition: ideal state moves upward

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Figure 2.6 Problem Recognition

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Stage 2: Information Search

The process by which we survey the environment for appropriate data to make a reasonable decision

Prepurchase or ongoing search

Internal or external search

Online search and cybermediaries

Who searches more?

Age, education, gender

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Who searches more?

Newbies or product experts?

Selective search

Nonfunctional attributes

Top-down vs bottom-up

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Figure 2.7 Amount of Information Search and Product Knowledge

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Alternatives

Evoked Set

Consideration Set

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Product Choice

Step 4: Product choice

Feature creep

Step 5: Postpurchase evaluation

Neuromarketing

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Product Choice

Feature creep

 Philips Electronics

Half of the products returned

Buyers spent only 20 mins to figure out how products work

Why? Consumers assume more features the better

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NeuroMarketing

Is There a Buy Button Inside the Brain: Patrick Renvoise at TEDxBend

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Online Decision Making

Cybermediary

Intelligent agents

Search engines

Search engine optimization

Long tail

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Strategic Implementation of Product Categories

Position a product

Identify competitors

Create an exemplar product

Locate products in a store

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Figure 9.5 Levels of Categorization

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Table 2.2 Hypothetical Alternatives for a TV Set

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Determinant attributes 

Evaluative criteria

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Learning Objective 4

We often rely upon “rules-of-thumb” or cues in the environment to make future decisions.

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Habitual decision making describes the choices we make with little or no conscious effort.

Choices on the basis of routine and cues in the environment!

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Priming and Nudging

Power of the unconscious to influence our daily decisions.

Subtle changes in a consumer’s environment can change behavior; some refer to such a change as a nudge

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Creativity

Nonconformity

innovation

Tradition

Intelligence

responsibility

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Behavioral Economics

Cognitive biases often prevent people from making rational decisions, despite their best efforts.

The word “Free”

Pricing

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15 cents

1 cent

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Dan Ariely

– Behavioral economist Dan Ariely

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Decision-Making Biases and Shortcuts

Maximizing solution vs satisficing solution

Bounded rationality

Behavioral economics, Daniel Kahneman

Framing

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Biases in Decision-Making Process

Mental accounting: framing a problem in terms of gains/losses influences our decisions

Sunk-cost fallacy: We are reluctant to waste something we have paid for

Loss aversion: We emphasize losses more than gains

Prospect theory: risk differs when we face gains versus losses

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Heuristics

Covariation

Country of Origin

Familiar Brand Names

Higher Prices

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Learning Objective 4

We make some decisions on the basis of an emotional reaction rather than as the outcome of a rational thought process.

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Emotions

Sadness more analytical

Happiness more social

Sadness risk aversion

Anger risk seeking

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Heart and Mind in conflict

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Learning Objective 9.5

Marketers often need to understand consumers’ behavior rather than a consumer’s behavior.

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Roles In Collective Decision Making

Initiator

Gatekeeper

Influencer

Buyer

User

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Learning Objective 9.6

The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use.

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Organizational Decision Making

Organizational buyers: purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale.

Business-to-business (B2B) marketers: specialize in meeting needs of organizations such as corporations, government agencies, hospitals, and retailers.

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Compared to Consumer Decision Making, Organizational Decision Making…

Involves many people

Requires precise, technical specifications

Is based on past experience and careful weighing of alternatives

May require risky decisions

Involves substantial dollar volume

Places more emphasis on personal selling

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What Influences Organizational Buyers?

The buyclass theory of purchasing divides organizational buying decisions into 3 types:

Level of information required

Seriousness of decision

Familiarity with purchase

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Buying Decisions

Buyclass theory: organizational buying decisions divided into three types, ranging from most to least complex.

Table 9.3 Types of Organizational Buying Decisions

Buying Situation Extent of Effort Risk Buyer’s Involvement
Straight rebuy Habitual decision-making Low Automatic reorder
Modified rebuy Limited problem solving Low to moderate One or a few
New task Extensive problem solving High Many

Source: Adapted from Patrick J. Robinson, Charles W. Faris, and Yoram Wind, Industrial Buying and Creative Marketing (Boston: Allyn & Bacon, 1967).

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Learning Objective 9.7

Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

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Household Decisions

Consensual Purchase Decisions

Accommodative Purchase Decisions

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Resolving Decision Conflicts in Families

Interpersonal need

Product involvement and utility

Responsibility

Power

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Who Makes Key Decisions in the Family?

Autonomic decision: one family member chooses a product

Syncretic decision: involve both partners

Used for cars, vacations, homes, appliances, furniture, home electronics, interior design, phone service

As education increases, so does syncretic decision making

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,

4 Learning and Memory

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CONSUMER BEHAVIOR, 12e Michael R. Solomon

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Chapter 6 focuses on the way we mentally store information we perceive and how it adds to our existing knowledge about the world during the learning process.

Learning Objectives (1 of 2)

4.1 It is important to understand how consumers learn about products and services.

4.2 Conditioning results in learning.

4.3 Learned associations with brands generalize to other products.

4.4 There is a difference between classical and instrumental conditioning, and both processes help consumers learn about products.

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Learning Objectives (2 of 2)

4.5 We learn about products by observing others’ behavior.

4.6 Our brains process information about brands to retain them in memory.

4.7 The other products we associate with an individual product influence how we will remember it.

4.8 Products help us to retrieve memories from our past.

4.9 Marketer measure our memories about products and ads.

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Learning Objective 1

It is important to understand how consumers learn about products and services

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Theories of Learning

Learning is a relatively permanent change in behavior caused by experience. 

Behavioral learning theories focus on stimulus-response connections

Cognitive learning theories focus on consumers as problem solvers who learn when they observe relationships

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Learning Objective 2

Conditioning results in learning.

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Types of Behavioral Learning Theories

Classical conditioning: a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own.

Instrumental conditioning (also, operant conditioning): the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes.

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Classical Conditioning

Components of Conditioning

Unconditioned stimulus

Conditioned stimulus

Conditioned response

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Classical Conditioning

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What are UCS and CS here?

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Dinner aromas

6 o’clock news

Salivation

6 o’clock news

Salivation

After repeated pairings:

Marketing Applications of Classical Conditioning Principles

The association between the Marlboro man and the cigarette

Children’s appetite and McDonald’s logo

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Learning Objective 3

Learned associations with brands generalize to other products. We can utilize these associations in marketing applications through

Repetition

Conditioned product associations

Stimulus generalizations

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Learning Objective 4

There is a difference between classical and instrumental conditioning and both processes help consumers to learn about products.

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Instrumental conditioning

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Positive reinforcement

Negative reinforcement

Punishment

Positive behavior positive outcome

Negative behavior removal of positive outcome

Negative behavior Negative outcome

Extinction

Positive behavior Removal of positive outcome

How Does Instrumental Conditioning Occur?

Positive reinforcement

Negative reinforcement

Punishment

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Drug Free America

BBT

Family guy

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Figure 6.1 Types of Reinforcement

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Reinforcement Schedules

Continuous: get discount every time

Intermittent: get discount only sometimes

Fixed interval (sales at the end of month)

Variable interval (surprise sales each month)

$2 Tuesdays

Reinforcement Schedules

Fixed ratio (each 6th ice-cream is free)

Variable ratio (slot machines, scratch and win lottery)

Marketing Applications of Instrumental Conditioning Principles

Frequency marketing: a marketing technique that reinforces regular purchasers by giving them prizes with values that increase along with the amount purchased

After purchase “Thank you” letters

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Cognitive Learning Theory

Internal learning processes

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Learning Objective 5

We learn about products by observing others’ behavior. Observational learning

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Observational Learning

Social default and modeling

The consumer’s attention must be directed to the appropriate model.

The consumer must remember what the model says or does.

The consumer must convert this information into actions.

The consumer must be motivated to perform these actions.

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Consumer Socialization

Marketers don’t necessarily have to directly reward or punish consumers when they make a purchase.

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Consumer socialization is the process “by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace.”

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Figure 6.3 Five Stages of Consumer Development

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TV and kids

Ban on fast-food ads cut the national obesity by %18

Kids who watched fast-food ads ate %84 to %134 more calories

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Learning Objective 6

Our brains process information about brands to retain them in memory.

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Memory Systems

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Memory Systems

Sensory memory

Short-term memory

Long-term memory

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Sensory memory

Stores the information from senses

Very temporary

Lasts couple of seconds

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Short-term memory

Limited period of time, and it has limited capacity.

Working memory; it holds the information we are currently processing

Store as combination of small pieces into larger ( A chunk)

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Long term memory

Long period of time

Move from short-term memory into long-term memory.

Relating it to other information already in memory.

Catchy slogans or jingles that consumers repeat on their own.

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LTM test

Do you remember the address of the last place you lived?

What was the name of your third grade teacher?

What did you have for dinner on January 14th 2016?

 What did you have for dinner on February 14th 2016?

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Learning Objective 7

The other products we associate with an individual product influence how we will remember it.

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The “Spreading Activation” Model of Memory

Network related to a concept = knowledge structure

Individual bits of information (concepts, feelings, events) stored in nodes

Connectors are called associative links (vary in strength)

When a concept is activated the resulting energy spreads through associative links to related concepts (nodes) further away from the original concept

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Spreading Activation

Brand-specific (“it’s macho”)

Ad-specific (a macho-looking guy uses the product)

Brand identification (e.g., “Axe”)

Product category (a bottle of Axe sits in a guy’s medicine cabinet)

Evaluative reactions (“that looks cool”)

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Levels of knowledge

Schema: A schema is a cognitive framework we develop through experience. An organized set of beliefs and feelings associated with a particular concept

Script: a sequence of events an individual expects to occur.

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More Complex Memory Structures: Product Category Schemas

Fast Food:

More Complex Memory Structures: Brand Schemas

Brand Schemas

More Complex Memory Structures: Self Schemas

More Complex Memory Structures: Scripts

Restaurant Scripts:

Make reservation

Get Seated

Order Drinks

Look at Menus

Order

Light Conversation

Eat

Order Dessert

Pay bill

Tip

Leave

What Makes Us Forget?

Decay

Interference

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Co