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Perception
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
CONSUMER BEHAVIOR, 12e
Michael R. Solomon
Learning Objectives
The design of a product today is a key driver of its success or
failure.
Products and commercial messages often appeal to our senses,
but we won’t be influenced by most of them.
Perception is a three-stage process that translates raw stimuli
into meaning.
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Learning Objectives (Cont.)
Subliminal advertising is a controversial—but largely
ineffective—way to talk to consumers.
We interpret the stimuli to which we do pay attention according
to learned patterns and expectations.
The field of semiotics helps us to understand how marketers use
symbols to create meaning.
Learning Objective 1
The design of a product is now a key driver of its success or
failure.
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Hedonic consumption
Sensation and Perception
Sensation refers to the immediate response of our sensory
receptors (eyes, ears, nose, mouth, fingers, skin) to basic
stimuli such as light, color, sound, odor, and texture.
Perception is the process by which people select, organize, and
interpret these sensations. The study of perception, then,
focuses on what we add to these raw sensations in order to give
them meaning.
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Prentice Hall
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Sensory Systems
Vision
Scent
Sound
Touch
Taste
Sensory Marketing
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Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Companies think carefully about the impact of sensations on our
product experiences.
Vision
5-
Copyright © 2015 Pearson Education, Inc. publishing as
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Trade dress
Color forecasts
Marketers communicate meaning on a visual channel using a
product’s color, size, and styling.
Gender, age, culture
Colors
Culture and colors
Marketing and colors
5-
Copyright © 2015 Pearson Education, Inc. publishing as
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Vision
Table 3.1 Marketing Applications of
ColorsColorAssociationsMarketing
ApplicationsYellowOptimistic and youthful Used to grab
window shoppers’ attention Red Energy Often seen in clearance
sales Blue Trust and securityBanksGreen Wealth Used to create
relaxation in stores Orange Aggressive Call to action: subscribe,
buy or sell Black Powerful and sleek Luxury products
PurpleSoothingBeauty or anti-aging products
Source: Adapted from Leo Widrich, “Why Is Facebook Blue?
The Science Behind Colors in Marketing,” Fast Company (May
6, 2013), fastcompany.com accessed February 23, 2015.
Scent
Like color, odor can also stir emotions and memory.
Scent Marketing is a form of sensory marketing that we may see
in lingerie, detergents, and more.
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
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Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Learning Objective 2
Products and commercial messages often appeal to our senses,
but because of the profusion of these messages, most won’t
influence us.
Key Concepts in Use of Sound
Audio watermarking
Sound symbolism
Hard consonant like a K (Kellogg’s) or P (Pepsi)
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Key Concepts in the Use of Touch
Touch matters.
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Prentice Hall
Taste
Flavor houses
Electronic tongue
Cultural factors and taste
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Learning Objective 3
Perception is a three-stage process that translates raw stimuli
into meaning.
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Sensation and Perception
Perception is the process by which sensations are selected,
organized, and interpreted.
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Figure 5.1 Perceptual Process
We receive external
stimuli through
our five senses
Stage 1: Key Concepts in Exposure
Sensory threshold
Psychophysics
Absolute threshold
Differential threshold
JND (Just noticeable difference)
5-
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The Pepsi Logo Evolves
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Learning Objective
Subliminal advertising is a controversial but largely ineffective
way to talk to consumers
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Subliminal advertising
Subliminal perception refers to a stimulus below the level of the
consumer’s awareness.
Some research by clinical psychologists suggests that
subliminal messages can influence people under very specific
conditions, though it is doubtful that these techniques would be
of much use in most marketing contexts.
5-
Copyright © 2015 Pearson Education, Inc. publishing as
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Subliminal Techniques
Embeds: figures that are inserted into magazine advertising by
using high-speed photography or airbrushing.
Subliminal auditory perception: sounds, music, or voice text
inserted into advertising.
Attention
Attention is the extent to which processing activity is devoted
to a particular stimulus
Consumers experience sensory overload
Marketers need to break through the clutter
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
MultiTasking
Multitaskers have more trouble focusing, and they experience
more stress
More efficient
Technology is rewiring our brains
5-
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Golden Triangle
5-
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Prentice Hall
How Do Marketers Get Attention?
Personal Selection
Experience
Perceptual filters
Perceptual vigilance
Perceptual defense
Adaptation
Stimulus Selection
Contrast
Size
Color
Position
Novelty
5-
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Prentice Hall
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Factors Leading to Adaptation
Intensity
Duration
Discrimination
Exposure
Relevance
Adaptation is the degree to which consumers continue to notice
a stimulus over time
Learning Objective 6
We interpret the stimuli to which we do pay attention according
to learned patterns and expectations.
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Interpretation
Interpretation refers to the meaning we assign to sensory
stimuli, which is based on a schema
Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't
mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt
tihng is taht the frist and lsat ltteer be at the rghit pclae. Tihs is
bcuseae the huamn mnid deos not raed ervey lteter by istlef, but
the wrod as a wlohe.
Perceptual Organization
Learning Objective 6
The field of semiotics helps us to understand how marketers use
symbols to create meaning
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
To help them understand how consumers interpret the meanings
of symbols, some marketers turn to semiotics. Semiotics is the
study of correspondence between signs and symbols and their
roles in how we assign meanings. This figure illustrates the
meaning of the three semiotic parts of a marketing message: 1)
the object, 2) the sign, and 3) the interpretant. For Marlboro
cigarettes, the cigarettes are the product. The symbol is the
cowboy which can be interpreted to mean rugged American.
What is the relationship between signs and marketing
communications? Why do certain symbols and icons work more
effectively in reaching consumers than others?
Semiotics: The study of signs and symbols as elements of
communicative behavior. This also includes the analysis of the
systems of communication, as language, gestures, or clothing.
Hyperreality
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Augmented Reality
Refers to media that superimpose one or more digital layers of
data, images, or video over a physical object.
5-
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Prentice Hall
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Copyright © 2015 Pearson Education, Inc. publishing as
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Examples of Brand PositioningLifestyleGrey Poupon is “high
class”Price leadershipSouthwest Airlines is “no
frills”AttributesBounty is “quicker picker upper”Product
classMazda Miata is sporty
convertibleCompetitorsNorthwestern Insurance is the quiet
companyOccasionsUse Wrigley’s gum when you can’t
smokeUsersLevi’s Dockers targeted to young menQualityAt
Ford, “Quality is Job 1”
5-
Copyright © 2015 Pearson Education, Inc. publishing as
Prentice Hall
Chapter Summary
The design of a product affects our perception of it.
Products and messages may appeal to our senses.
Perception is a three-stage process that translates raw stimuli
into meaning.
Subliminal advertising is controversial.
We interpret stimuli using learned patterns.
Marketers use symbols to create meaning.
We’ve covered several key concepts in this chapter including
perception, our perception is affected by our senses, subliminal
advertising, and the factors which affect how we process
symbols.
Consumer Behavior: Buying, Having, and Being
Twelfth Edition
Chapter 1
Buying, Having, and Being: An Introduction to Consumer
Behavior
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
If this PowerPoint presentation contains mathematical
equations, you may need to check that your computer has the
following installed:
1) MathType Plugin
2) Math Player (free versions available)
3) NVDA Reader (free versions available)
This chapter defines the scope of international business and
introduces us to some of its most important topics.
Learning Objectives (1 of 2)
1.1 Consumer behavior is a process.
1.2 Marketers have to understand the wants and needs of
different consumer segments.
1.3 Our choices as consumers relate in powerful ways to the rest
of our lives.
1.4 Our motivations to consume are complex and varied.
1.5 Technology and culture create a new “always on” consumer.
1.6 Many different types of specialists study consumer
behavior.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Learning Objective 1.1
Consumer behavior is a process.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
In the early stages of development, researchers referred to the
field as buyer behavior. Marketers now recognize that consumer
behavior is an ongoing process, not merely what happens at one
point in the transaction cycle. We call the transaction of value
between two or more an exchange. It’s an integral part of
marketing but consumer behavior recognizes that the entire
consumption process is relevant for marketers. Figure 1.1
illustrates these issues.
Consumer behavior is the study of the processes involved when
individuals or groups select, purchase, use, or dispose of
products, services, ideas, or experiences to satisfy needs and
desires. A consumer may purchase, use, and dispose of a
product, but different people may perform these functions. In
addition, we can think of consumers as role players who need
different products to help them play their various parts.
What Is Consumer Behavior?
The study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
1-
Figure 1.1
Stages in the Consumption Process
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Rights Reserved.
1-
Learning Objective 1.2
Marketers have to understand the wants and needs of different
consumer segments.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Markets & STP
Definitions
Market – people with means, authority, and desire to satisfy
their needs and wants (MAD people)
Market segment – smaller markets with similarities on some
dimension(s)
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Rights Reserved.
Market Opportunity Analysis
Identify segmentation bases (S)
Determine market segments (S)
Determine needs/wants of market segments (S/T)
Develop measures of segment attractiveness (T)
Select target segments (T)
Develop product position for each target (P)
Develop marketing mix for each target (P)
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Rights Reserved.
Market Opportunity Analysis
Market Segmentation
Definition
Process of identifying smaller markets that exist within a larger
market
Why segment?
Ease to identify and satisfy needs and wants for segments (than
all customers)
More efficient to “reach” a narrow segment than all consumers
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
1-
Segmenting Consumers: Demographics
Demographics:
Age
Gender
Family structure
Social class/income
Race/ethnicity
Geography
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Market Opportunity Analysis
What is the segmentation criteria here?
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Rights Reserved.
Psychographic segmentation – targeting those who are “active”
Market Opportunity Analysis
Targeting
Definition – directing marketing efforts to meeting the needs of
one or more market segments (i.e., target markets)
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Rights Reserved.
Market Opportunity Analysis
Market coverage options
Undifferentiated marketing – treat all segments the same
Differentiated marketing – different mixes offered to different
segments
Market concentration – focus on one segment
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Pre exercise for next session
Using VALS provides marketers with:
A fresh perspective by effectively "putting them inside the
head" of their customers
Rich, customized, consumer profiles or personas
Distinctive communication styles of their best targets.
http://strategicbusinessinsights.com/vals/presurvey.shtml
1-
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Good marketing is inspired by good insights. Good insights
about customers come from more than just product or service
category or brand behavior—and from more than just
demographics.
Big Data
1-
The collection and analysis of extremely large datasets is called
Big Data.
Database Marketing
Relationship Marketing
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Rights Reserved.
Learning Objective 1.3
Our choices as consumers relate in powerful ways to the rest of
our lives.
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Rights Reserved.
Marketing influences popular culture and popular culture
influences marketing.
1-
Popular Culture
Music
Movies
Sports
Books
Celebrities
Entertainment
Marketers influence preferences for movie and music heroes,
fashions, food, and decorating choices.
Popular culture—the music, movies, sports, books, celebrities,
and other forms of entertainment that the mass market produces
and consumes—is both a product of and an inspiration for
marketers.
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Rights Reserved.
Consumer-Brand Relationships
Self-concept attachment
Nostalgic attachment
Interdependence
Love
1-
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Rights Reserved.
We find that consumers may develop relationships with brands
over time. The slide lists some of the types of relationships we
may see between consumers and their brands.
Self-concept attachment means that the product helps to
establish the user’s identity. This was one of our early points in
this chapter.
Nostalgic attachment means the product serves as a link to the
consumer’s past.
Interdependence means that the product is a part of the user’s
daily routine.
Love means that the product elicits emotional bonds of warmth,
passion, or other strong emotion.
1-
Learning Objective 1.4
Our motivations to consume are complex and varied.
Many products help to define our identities. Are you what you
drive?
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Rights Reserved.
People often buy products not for what they do but for what
they mean. Products play an extended role in our lives.
Motivation refers to the processes that lead people to behave as
they do. It occurs when a need is aroused that the consumer
wishes to satisfy.
This fascination with a creepy little candy chick illustrates one
of the fundamental premises of the modern field of consumer
behavior: People often buy products not for what they do but for
what they mean. This principle does not imply that a product’s
basic function is unimportant, but rather that the roles products
play in our lives extend well beyond the tasks they perform.
Peeps are marshmallow candies, sold in the United States and
Canada, that are shaped into chicks, bunnies, and other animals.
There are also different shapes used for various holidays. They
have no nutritional value.
Motivation and Goals
1-
Copyright © 2013 Pearson Education, Inc. publishing as
Prentice Hall
Motivation refers to the processes that lead people to behave as
they do. It occurs when a need is aroused that the consumer
wishes to satisfy.
Needs:
utilitarian (i.e., a desire to achieve some functional or practical
benefit)
hedonic (i.e., an experiential need, involving emotional
responses or fantasies).
Goal The desired end state is the consumer’s . Marketers try to
create products and services to provide the desired benefits and
help the consumer to reduce this tension.
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Rights Reserved.
Learning Objective 1.5
Technology and culture create a new “always on” consumer.
1-
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Social Media facts
It took radio 38 years to reach 50 million listeners. TV took 13
years to reach 50 million users. The Internet took 4 years to
reach 50 million people. In less than 9 months, Facebook added
100 million users.
About 70 percent of Facebook users are outside the United
States.
Social networks have overtaken porn as the number-one online
activity.
One out of eight couples that married last year met on a social
media site.
80 percent of companies use LinkedIn as their primary
recruiting tool.
25 percent of search results for the world’s top 10 brands are to
user-generated content.
People share more than 1.5 billion pieces of content on
Facebook—every day.
80 percent of Twitter usage is from mobile devices, and 17
percent of users have tweeted while on the toilet.
1-
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Chapter Summary
Consumer behavior is a process.
Marketers have to understand the wants and needs of different
consumer segments.
Our choices as consumers relate in powerful ways to the rest of
our lives.
Our motivations to consume are complex and varied.
Technology and culture create a new “always on” consumer.
Many different types of specialists study consumer behavior.
There are differing perspectives regarding how and what we
should understand about consumer behavior.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.
Copyright
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
Rights Reserved.

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3Perception5-Copyright © 2015 Pearson Education, Inc. .docx

  • 1. 3 Perception 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall CONSUMER BEHAVIOR, 12e Michael R. Solomon Learning Objectives The design of a product today is a key driver of its success or failure. Products and commercial messages often appeal to our senses, but we won’t be influenced by most of them.
  • 2. Perception is a three-stage process that translates raw stimuli into meaning. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Learning Objectives (Cont.) Subliminal advertising is a controversial—but largely ineffective—way to talk to consumers. We interpret the stimuli to which we do pay attention according to learned patterns and expectations. The field of semiotics helps us to understand how marketers use symbols to create meaning.
  • 3. Learning Objective 1 The design of a product is now a key driver of its success or failure. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Hedonic consumption Sensation and Perception Sensation refers to the immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers, skin) to basic stimuli such as light, color, sound, odor, and texture. Perception is the process by which people select, organize, and interpret these sensations. The study of perception, then, focuses on what we add to these raw sensations in order to give
  • 4. them meaning. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Sensory Systems Vision Scent Sound Touch Taste
  • 5. Sensory Marketing 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Companies think carefully about the impact of sensations on our product experiences. Vision 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Trade dress
  • 6. Color forecasts Marketers communicate meaning on a visual channel using a product’s color, size, and styling. Gender, age, culture Colors Culture and colors Marketing and colors 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
  • 7. Vision Table 3.1 Marketing Applications of ColorsColorAssociationsMarketing ApplicationsYellowOptimistic and youthful Used to grab window shoppers’ attention Red Energy Often seen in clearance sales Blue Trust and securityBanksGreen Wealth Used to create relaxation in stores Orange Aggressive Call to action: subscribe, buy or sell Black Powerful and sleek Luxury products PurpleSoothingBeauty or anti-aging products Source: Adapted from Leo Widrich, “Why Is Facebook Blue? The Science Behind Colors in Marketing,” Fast Company (May 6, 2013), fastcompany.com accessed February 23, 2015. Scent Like color, odor can also stir emotions and memory. Scent Marketing is a form of sensory marketing that we may see in lingerie, detergents, and more. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
  • 8. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Learning Objective 2 Products and commercial messages often appeal to our senses, but because of the profusion of these messages, most won’t influence us. Key Concepts in Use of Sound Audio watermarking Sound symbolism Hard consonant like a K (Kellogg’s) or P (Pepsi)
  • 9. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Key Concepts in the Use of Touch Touch matters. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
  • 10. Taste Flavor houses Electronic tongue Cultural factors and taste 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Learning Objective 3 Perception is a three-stage process that translates raw stimuli into meaning. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
  • 11. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Sensation and Perception Perception is the process by which sensations are selected, organized, and interpreted. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Figure 5.1 Perceptual Process We receive external
  • 12. stimuli through our five senses Stage 1: Key Concepts in Exposure Sensory threshold Psychophysics Absolute threshold Differential threshold JND (Just noticeable difference) 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall The Pepsi Logo Evolves
  • 13. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Learning Objective Subliminal advertising is a controversial but largely ineffective way to talk to consumers 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
  • 14. Subliminal advertising Subliminal perception refers to a stimulus below the level of the consumer’s awareness. Some research by clinical psychologists suggests that subliminal messages can influence people under very specific conditions, though it is doubtful that these techniques would be of much use in most marketing contexts. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Subliminal Techniques Embeds: figures that are inserted into magazine advertising by using high-speed photography or airbrushing. Subliminal auditory perception: sounds, music, or voice text inserted into advertising.
  • 15. Attention Attention is the extent to which processing activity is devoted to a particular stimulus Consumers experience sensory overload Marketers need to break through the clutter 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall MultiTasking
  • 16. Multitaskers have more trouble focusing, and they experience more stress More efficient Technology is rewiring our brains 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Golden Triangle 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
  • 17. How Do Marketers Get Attention? Personal Selection Experience Perceptual filters Perceptual vigilance Perceptual defense Adaptation Stimulus Selection Contrast Size Color Position Novelty 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 5- Copyright © 2015 Pearson Education, Inc. publishing as
  • 18. Prentice Hall Factors Leading to Adaptation Intensity Duration Discrimination Exposure Relevance Adaptation is the degree to which consumers continue to notice a stimulus over time Learning Objective 6 We interpret the stimuli to which we do pay attention according to learned patterns and expectations. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall
  • 19. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Interpretation Interpretation refers to the meaning we assign to sensory stimuli, which is based on a schema Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the rghit pclae. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Perceptual Organization
  • 20. Learning Objective 6 The field of semiotics helps us to understand how marketers use symbols to create meaning 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall To help them understand how consumers interpret the meanings of symbols, some marketers turn to semiotics. Semiotics is the study of correspondence between signs and symbols and their roles in how we assign meanings. This figure illustrates the meaning of the three semiotic parts of a marketing message: 1) the object, 2) the sign, and 3) the interpretant. For Marlboro
  • 21. cigarettes, the cigarettes are the product. The symbol is the cowboy which can be interpreted to mean rugged American. What is the relationship between signs and marketing communications? Why do certain symbols and icons work more effectively in reaching consumers than others? Semiotics: The study of signs and symbols as elements of communicative behavior. This also includes the analysis of the systems of communication, as language, gestures, or clothing. Hyperreality 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Augmented Reality Refers to media that superimpose one or more digital layers of data, images, or video over a physical object. 5-
  • 22. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Examples of Brand PositioningLifestyleGrey Poupon is “high class”Price leadershipSouthwest Airlines is “no frills”AttributesBounty is “quicker picker upper”Product classMazda Miata is sporty convertibleCompetitorsNorthwestern Insurance is the quiet companyOccasionsUse Wrigley’s gum when you can’t smokeUsersLevi’s Dockers targeted to young menQualityAt Ford, “Quality is Job 1”
  • 23. 5- Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Chapter Summary The design of a product affects our perception of it. Products and messages may appeal to our senses. Perception is a three-stage process that translates raw stimuli into meaning. Subliminal advertising is controversial. We interpret stimuli using learned patterns. Marketers use symbols to create meaning. We’ve covered several key concepts in this chapter including perception, our perception is affected by our senses, subliminal advertising, and the factors which affect how we process symbols. Consumer Behavior: Buying, Having, and Being Twelfth Edition Chapter 1 Buying, Having, and Being: An Introduction to Consumer
  • 24. Behavior Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. If this PowerPoint presentation contains mathematical equations, you may need to check that your computer has the following installed: 1) MathType Plugin 2) Math Player (free versions available) 3) NVDA Reader (free versions available) This chapter defines the scope of international business and introduces us to some of its most important topics. Learning Objectives (1 of 2) 1.1 Consumer behavior is a process. 1.2 Marketers have to understand the wants and needs of different consumer segments. 1.3 Our choices as consumers relate in powerful ways to the rest of our lives. 1.4 Our motivations to consume are complex and varied. 1.5 Technology and culture create a new “always on” consumer. 1.6 Many different types of specialists study consumer behavior. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
  • 25. Learning Objective 1.1 Consumer behavior is a process. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. In the early stages of development, researchers referred to the field as buyer behavior. Marketers now recognize that consumer behavior is an ongoing process, not merely what happens at one point in the transaction cycle. We call the transaction of value between two or more an exchange. It’s an integral part of marketing but consumer behavior recognizes that the entire consumption process is relevant for marketers. Figure 1.1 illustrates these issues. Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. A consumer may purchase, use, and dispose of a product, but different people may perform these functions. In addition, we can think of consumers as role players who need different products to help them play their various parts. What Is Consumer Behavior? The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
  • 26. 1- Figure 1.1 Stages in the Consumption Process Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. 1- Learning Objective 1.2 Marketers have to understand the wants and needs of different consumer segments. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Markets & STP Definitions Market – people with means, authority, and desire to satisfy their needs and wants (MAD people) Market segment – smaller markets with similarities on some dimension(s) Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
  • 27. Market Opportunity Analysis Identify segmentation bases (S) Determine market segments (S) Determine needs/wants of market segments (S/T) Develop measures of segment attractiveness (T) Select target segments (T) Develop product position for each target (P) Develop marketing mix for each target (P) Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Market Opportunity Analysis Market Segmentation Definition Process of identifying smaller markets that exist within a larger market Why segment? Ease to identify and satisfy needs and wants for segments (than all customers) More efficient to “reach” a narrow segment than all consumers Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. 1- Segmenting Consumers: Demographics Demographics: Age Gender Family structure Social class/income Race/ethnicity Geography
  • 28. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Market Opportunity Analysis What is the segmentation criteria here? Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Psychographic segmentation – targeting those who are “active” Market Opportunity Analysis Targeting Definition – directing marketing efforts to meeting the needs of one or more market segments (i.e., target markets) Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Market Opportunity Analysis Market coverage options Undifferentiated marketing – treat all segments the same Differentiated marketing – different mixes offered to different segments Market concentration – focus on one segment Copyright © 2017, 2015, 2013 Pearson Education, Inc. All
  • 29. Rights Reserved. Pre exercise for next session Using VALS provides marketers with: A fresh perspective by effectively "putting them inside the head" of their customers Rich, customized, consumer profiles or personas Distinctive communication styles of their best targets. http://strategicbusinessinsights.com/vals/presurvey.shtml 1- Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Good marketing is inspired by good insights. Good insights about customers come from more than just product or service category or brand behavior—and from more than just demographics. Big Data 1- The collection and analysis of extremely large datasets is called Big Data. Database Marketing Relationship Marketing Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
  • 30. Learning Objective 1.3 Our choices as consumers relate in powerful ways to the rest of our lives. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Marketing influences popular culture and popular culture influences marketing. 1- Popular Culture Music Movies Sports Books Celebrities Entertainment Marketers influence preferences for movie and music heroes, fashions, food, and decorating choices. Popular culture—the music, movies, sports, books, celebrities, and other forms of entertainment that the mass market produces and consumes—is both a product of and an inspiration for marketers. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Consumer-Brand Relationships
  • 31. Self-concept attachment Nostalgic attachment Interdependence Love 1- Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. We find that consumers may develop relationships with brands over time. The slide lists some of the types of relationships we may see between consumers and their brands. Self-concept attachment means that the product helps to establish the user’s identity. This was one of our early points in this chapter. Nostalgic attachment means the product serves as a link to the consumer’s past. Interdependence means that the product is a part of the user’s daily routine. Love means that the product elicits emotional bonds of warmth, passion, or other strong emotion. 1- Learning Objective 1.4 Our motivations to consume are complex and varied. Many products help to define our identities. Are you what you drive?
  • 32. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. People often buy products not for what they do but for what they mean. Products play an extended role in our lives. Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. This fascination with a creepy little candy chick illustrates one of the fundamental premises of the modern field of consumer behavior: People often buy products not for what they do but for what they mean. This principle does not imply that a product’s basic function is unimportant, but rather that the roles products play in our lives extend well beyond the tasks they perform. Peeps are marshmallow candies, sold in the United States and Canada, that are shaped into chicks, bunnies, and other animals. There are also different shapes used for various holidays. They have no nutritional value. Motivation and Goals 1- Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy. Needs: utilitarian (i.e., a desire to achieve some functional or practical benefit) hedonic (i.e., an experiential need, involving emotional responses or fantasies).
  • 33. Goal The desired end state is the consumer’s . Marketers try to create products and services to provide the desired benefits and help the consumer to reduce this tension. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Learning Objective 1.5 Technology and culture create a new “always on” consumer. 1- Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Social Media facts It took radio 38 years to reach 50 million listeners. TV took 13 years to reach 50 million users. The Internet took 4 years to reach 50 million people. In less than 9 months, Facebook added 100 million users. About 70 percent of Facebook users are outside the United States. Social networks have overtaken porn as the number-one online activity. One out of eight couples that married last year met on a social media site. 80 percent of companies use LinkedIn as their primary recruiting tool.
  • 34. 25 percent of search results for the world’s top 10 brands are to user-generated content. People share more than 1.5 billion pieces of content on Facebook—every day. 80 percent of Twitter usage is from mobile devices, and 17 percent of users have tweeted while on the toilet. 1- Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Chapter Summary Consumer behavior is a process. Marketers have to understand the wants and needs of different consumer segments. Our choices as consumers relate in powerful ways to the rest of our lives. Our motivations to consume are complex and varied. Technology and culture create a new “always on” consumer. Many different types of specialists study consumer behavior. There are differing perspectives regarding how and what we should understand about consumer behavior. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Copyright
  • 35. Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.