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assignment1/Assignment 1 feedback notes.pdf Feedback from previous BSNS 103 assignments John Williams Notes from 2014 Many assignments suffered from one or more of three major flaws: 1. The Critical Reflection part was not critical. What many students wrote could be summed up as "I consume X because I like it", or "it makes me feel good" or "it satisfies a need", without examining why it makes them feel good, or why they have that need, and then critically examining those reasons (or considering short vs. long term effects). Very few discussed the impact of their own consumption on other people. 2. The research part did not show data that extended or complemented the figures or tables shown in lectures. Many students quoted figures in-text of snapshots in time, e.g. "in 2012 x % of y were z", rather than examining a trend, difference or relationship by showing a table or graph. Very few critically examined their sources. 3. Most worryingly, very few students incorporated theoretical material from the course. Those that did almost exclusively used Maslow and nothing else. This was particularly disappointing. Many students listed the ways in which their consumption makes them happy or well. This is entirely beside the point. Of course some of the things we consume and some of the ways in which we consume make us happy and/or well. But why do they make us happy or well? More importantly, what things do we consume make us unhappy or unwell? And if we know that, why do we still do consume them? As some students stated, we wouldn't consume things that didn't make us happy and/or well, would we? But plainly, some of us do, and some people claim that all of us do, at least some of the time. Almost no-one critically examined whether their superficial motivations and satisfactions were contributing to real, long-term well-being. Fewer than 10% of the class were willing to even consider the notion that they might be behaving "irrationally", at least some of the time, and even fewer explicitly examined the role of marketing and the media in that irrationality. Those that did usually discussed it in general terms (almost always quoting or paraphrasing Schor) rather than as it happened in their own life. It seems that most people did not really understand the theme of BSNS 103: • Some, or even most, of our seemingly rational consumption behaviour is actually a result of factors of which we are only dimly aware, if at all. Furthermore, things that give us a little bit of happiness when we do them may turn out to be not in our long-term best interests (consumption myopia). • Business people know this, and take advantage of our ignorance or unwillingness to face unpleasant or challenging truths. Only a very few students explicitly acknowledged and discussed this in any but the most general and superficial way. Those that did got the A grades, because they understood wha ...

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assignment1/Assignment 1 feedback notes.pdf Feedback from previous BSNS 103 assignments John Williams Notes from 2014 Many assignments suffered from one or more of three major flaws: 1. The Critical Reflection part was not critical. What many students wrote could be summed up as "I consume X because I like it", or "it makes me feel good" or "it satisfies a need", without examining why it makes them feel good, or why they have that need, and then critically examining those reasons (or considering short vs. long term effects). Very few discussed the impact of their own consumption on other people. 2. The research part did not show data that extended or complemented the figures or tables shown in lectures. Many students quoted figures in-text of snapshots in time, e.g. "in 2012 x % of y were z", rather than examining a trend, difference or relationship by showing a table or graph. Very few critically examined their sources. 3. Most worryingly, very few students incorporated theoretical material from the course. Those that did almost exclusively used Maslow and nothing
else. This was particularly disappointing. Many students listed the ways in which their consumption makes them happy or well. This is entirely beside the point. Of course some of the things we consume and some of the ways in which we consume make us happy and/or well. But why do they make us happy or well? More importantly, what things do we consume make us unhappy or unwell? And if we know that, why do we still do consume them? As some students stated, we wouldn't consume things that didn't make us happy and/or well, would we? But plainly, some of us do, and some people claim that all of us do, at least some of the time. Almost no-one critically examined whether their superficial motivations and satisfactions were contributing to real, long-term well-being. Fewer than 10% of the class were willing to even consider the notion that they might be behaving "irrationally", at least some of the time, and even fewer explicitly examined the role of marketing and the media in that irrationality. Those that did usually discussed it in general terms (almost always quoting or paraphrasing Schor) rather than as it happened in their own life. It seems that most people did not really understand the theme of BSNS 103: • Some, or even most, of our seemingly rational consumption behaviour is actually a result of factors of which we are only dimly aware, if at all. Furthermore, things that give us a little
bit of happiness when we do them may turn out to be not in our long-term best interests (consumption myopia). • Business people know this, and take advantage of our ignorance or unwillingness to face unpleasant or challenging truths. Only a very few students explicitly acknowledged and discussed this in any but the most general and superficial way. Those that did got the A grades, because they understood what was being said in lectures. No-one mentioned slave-labour like conditions in Asia used to supply Western consumption, in other words, how does our wonderful consumption lifestyle cause drastically reduced well-being for other people? (Or does it? Does it provide jobs and income, and well-being, that they would not have access to if it were not for globalisation?) Notes from 2013 Many students wrote about one or two aspects of their consumption, rather than all of it. Heaps wrote about Apple products, and many acknowledged they buy these products not because of their functional attributes, but by their ability to associate the user with an in-group. When discussing whether trends and relationships outlined in the lecture were true in NZ or today, almost all students only mentioned a couple of figures in-text, rather than showing a table or graph.
A few people critically evaluated their sources, but only a handful went beyond “It's Government data / published in a reputable journal and therefore is trustworthy”. Only one person really looked closely at how some particular data were gathered and what they really represented. Many people used a lot of space simply repeating the assertions that have been made in lectures and associated readings, then saying whether they agreed with them or not. Very few people thought more than superficially about how their consumption affects those around them, and no-one realised that their own consumption makes them a “Jones” that others want to keep up with. In other words, self-indulgent, hedonistic consumption, and consumption aimed at group membership was only discussed in terms of the writer's well-being, and not the effect that it has on the well-being of others. Most disappointingly, however, is the fact that no-one, not one person, truly critically reflected on their own consumption. No-one truly and deeply questioned their own assumptions, and took steps to investigate whether they were justified. This is very disappointing. Other points • The assignment is about well-being, not happiness. Happiness is part of well-being, but is not the whole story
• A point in time conveys no information about a trend • You say that consuming X gives you benefit Y. But others achieve benefit Y by consuming something other than X. So why and how do you get Y by consuming X? • How does your consumption contribute to social pressures, as opposed to you feeling pressure from others? • Of course some consumption increases well-being; and of course money buys happiness sometimes. But is more always better? And are these relationships always true? • Income and money is a means to an end (actually, multiple ends) and it is the ends that bring us happiness and well-being. But can those ends be met in other ways? Notes from 2014Notes from 2013Other points assignment1/Assignment 1 tips.pdf BSNS 103 Assignment One: Essay Tips John Williams If you read the essay instructions and marking sheet, hopefully you should realise that the essence of this assignment is critical thinking, which was covered in the first lecture. To re-cap and summarise, critical thinking means: • Identifying assumptions
• Sorting out which assumptions are critical, and which are not (or more vs. less critical) • Figuring out how one could test whether those assumptions are true (and then doing so, if possible). Perhaps you will reach the conclusion that some assumptions can never be tested, i.e. we will always have to assume they are true. But then, does that mean that your conclusions are therefore also unverifiable? Does your “reasoned argument” revolve around one or more key premises that can never be proved to be true? • Apply this way of thinking to not only what other people say, but also what you say Both parts of the assignment (self-reflection and research) should be written in this mode, i.e. analysis, not just statements with no justification. Equally importantly, when you're writing your essay, bear in mind why we are asking you to do this task. Every university assignment essentially tests or develops two things: 1. That you've learned something from sitting in lectures, reading the assigned material and independent study 2. That you can communicate your knowledge, analysis and opinions in a formal academic manner So, get the mechanics of writing correct, i.e. spelling, punctuation, grammar and formatting
(including citation and referencing), and also show that you've learned something by using concepts that have been covered in course (for example Maslow's theory of motivation, TPB, ELM, identity theory, socio-cultural theory, emotion & unconscious) The most common failings of past essays fall into two categories: 1. The student has not understood what is required 2. The student has not thought deeply about the topic To reiterate what I've been saying in lectures, BSNS 103 is different to many other courses. We are not looking for “regurgitation”; rather we are looking for analysis and independent thought that looks beyond the superficial. So, don't write an essay that essentially says, for example, “Shopping makes me happy” or “I chose an iPhone because its cool and all my friends have one”. These are starting points for analysis, not explanations. Why does shopping make you happy? And, do you do everything that your friends do? Do you buy all the same products? If so, why? If not, what's special about this one product or brand? And why is it special? And does it contribute to your well-being? If so, how? It should be clear that the majority of the essay should be your self-reflection. The research part is relatively easy, but you still need to apply critical thinking. For each piece of evidence you find, evaluate how trustworthy it is. See, for example, http://oil.otago.ac.nz/oil/module7.html.
Most importantly, if any of what I've said or written is unclear, please just ask for clarification. You won't be bothering me: I love answering questions and helping people, plus, I get paid for it! http://oil.otago.ac.nz/oil/module7.html assignment1/Assignment One Grading Sheet.pdf BSNS 103 Marketing and Consumption Assignment One Grading Sheet This assignment is designed to assess your understanding of the material covered in the relevant lectures and assigned reading, and your research and critical thinking abilities. You were asked to consider the assertions made and evidence given in the lectures and reading on consumption, happiness and well-being, and then to do two things: (1) Reflect on whether these assertions hold true in your own life, and the lives of people you know well (2) Find and critically evaluate evidence relating to whether the trends and effects discussed in the lecture: (i) are true in New Zealand (or your home country, if you have not spent enough time in New Zealand to be able to answer this question) (ii) are true in the USA and/or UK today (as most of the data on
trends in the lectures only went up to around 2000) There were many trends and relationships discussed in the lecture and assigned reading. We do not expect that you cover all of them. Choose and discuss one or two relationships or effects that interest you most, and one or two trends that interest you most. Concepts Poorly done or not done at all OK Done well Done really well The relationship between consumption and well-being in your own life, and the lives of others you know well Whether the relationships and trends discussed in the lecture are still true today OR Whether the relationships and trends discussed in the lecture were true in your home country Selection and discussion of sources shows critical thinking Self-reflection shows critical thinking Both parts employ relevant concepts relating to society, culture and social psychology as discussed in John’s lectures and assigned readings
If you want feedback attach this sheet to the hard copy of your assignment as the final page. If you just want your grade, you don’t need to attach this sheet. Grades will be posted on Blackboard. BSNS 103 Marketing and ConsumptionAssignment One Grading Sheet assignment1/Course Outline.pdf COURSE OUTLINE Summer School, 2015
Contents Paper Description and Aims ............................................................................................... ............... 4 Learning Outcomes ............................................................................................... ........................... 4 Teaching Staff ............................................................................................... ................................... 4 ............................................................................................... ........................................................... 4 Course Delivery ............................................................................................... .................................. 5 Expectations and Workload ............................................................................................... ............... 6 Blackboard ............................................................................................... ..................................... 6 Student Webmail ............................................................................................... ............................ 7 Assessment ............................................................................................... ......................................... 7
Quality Assurance ............................................................................................... .......................... 9 Learning Outcomes................................................................................ ....................................... 9 Grading System ............................................................................................... ............................. 9 Dishonest Practice and Plagiarism ............................................................................................... 10 Course Calendar ............................................................................................... ................................ 10 Student Learning Support and Information .....................................................................................19 Student Charter ............................................................................................... ............................19 Guidelines for Learning at Otago ............................................................................................... ..19 Student Learning Centre ............................................................................................... ...............19 Library Support
............................................................................................... .............................19 Māori Student Support ............................................................................................... ................. 21 Pacific Islands’ Student Academic Advisor ................................................................................... 21 Disability Information and Support .............................................................................................. 21 Student Feedback ............................................................................................... ............................. 21 Class Representatives ............................................................................................... .................. 22 Concerns about the Course ............................................................................................... .......... 22 Disclaimer ............................................................................................... ........................................ 22 Policy on Student Internal Assessment ............................................................................................ 23 Policy for Special Consideration in Final Exams ............................................................................... 25
Page 3 Paper Description and Aims The paper looks at the role of consumers and consumption in the creation of value and the ways in which the resulting relationships affect the nature and the conduct of business. It identifies key elements of the marketing mix, especially products, promotion and price and considers them in relation to the psychological, social and cultural elements of consumer behaviour. Summer School 0.15EFTS 18points Restriction: MART102 Learning Outcomes Upon successful completion of this paper, you should be able to culture’ comes into existence and how both firms and consumers co-create this culture
concepts and processes that relate to needs and consumption behaviour roles of identity and social environment in consumption decisions and processes and not-for-profit exchange processes by using brands, products and service creation, promotion and pricing Teaching Staff Lecturer Name: Dr John Williams (lectures 1-11 and 23) Office: CO 6.32 Email: [email protected] Web: http://www.business.otago.ac.nz/marketing/staff/williamsj.asp Office Hours: Wednesdays 3:00-4:50pm Lecturer Name: Dr Leah Watkins (lectures 12-23) Office: CO 6.40 Email: [email protected] Web: http://www.business.otago.ac.nz/marketing/staff/watkinsl.asp Office Hours: Wednesdays 10:00 – 12:00pm
http://www.business.otago.ac.nz/marketing/staff/williamsj.asp http://www.business.otago.ac.nz/marketing/staff/watkinsl.asp Page 4 Course Delivery Lecture Day/Time: Tuesdays 12:00 – 13:50 and Wednesdays 13:00 – 14:50 Room: CO 203 Tutorials: There will be no formal tutorials but consultation hours will be provided throughout the course on Wednesdays as specified above. Every week students must attend two 110 minute lectures per week. There are no tutorials. Course Calendar The course calendar (in this outline) details scheduling information. Note that this calendar may change as the course proceeds. Any changes will be announced at lectures and be detailed on Blackboard. Students are expected to prepare for and attend all classes to gain full benefit from the course
These activities should be prepared for by reviewing information detailed on Blackboard and completing any assigned readings. Students unable to attend a lecture are expected to catch up on missed material. Unless stated otherwise, all aspects of the course are examinable. Expectations and Workload You are expected to do work outside the scheduled contact hours including reading, assignment preparation and group work (where appropriate). The University guidelines suggest students can expect to spend about two hours working per week, per three points, for a single semester paper. As BSNS 103 is an 18 point paper and this is Summer School, you should expect to spend up to 24 hours per week on this course. This includes lectures, course work and preparation. You should take personal responsibility to ensure you complete all necessary preparation and the required assignments. This includes making a commitment to, and being an active group member. In return you can expect staff involved in this paper to provide a supportive learning environment, appropriate resources, useful (and timely) feedback, and to be responsive to any questions. Course Learning Resources Text Book Information
Primary textbook Solomon, Michael R. (2013) Consumer Behavior; Buying, Having, and Being, (10th Global Edition), Pearson. Blackboard Blackboard https://blackboard.otago.ac.nz/ provides you with access to course materials, class notices, and resources. Blackboard is used to email the whole class so it is important that you check your student email and Blackboard regularly. https://blackboard.otago.ac.nz/ Page 5 Student Webmail IMPORTANT - DO THIS NOW: Forward your University email address to an email address that you use regularly as follows: 1 Log into your StudentMail account using your student username and password 2 Click Cog button (top right corner) > Options 3 Under Account, select the Forward your email shortcut under the Short Cuts menu on the
right side of the screen. 4 At the bottom of the screen, type in the email address you want your email to be forwarded to. You can also choose to have a copy of these emails kept on your StudentMail account, so please check the box if you would like this. 5 Click the Start forwarding link at the bottom of the page. Assessment All material presented is examinable (except where stated otherwise) by assignments and the final examination. All important assessment information such as due dates and times, content, guidelines and so on will be discussed at lectures and, where appropriate, detailed on Blackboard. Students are responsible for ensuring that they are aware of this information, keeping track of their own progress, and catching up on any missed classes. Assessment Due date % of final grade Assignment One: Critical Reflection (Individual) Friday 30 th
January 5:00pm. Hard copy posted in 100 level Marketing box, Level 3 Commerce Building AND Electronic copy posted to Blackboard. 25% Assignment Two: Deconstruction Presentation (Pairs) Week beginning 9 th Feb (room and times to be advised) 15% Final Exam Room and time to be advised 60% Total 100% TERMS REQUIREMENT To be eligible to sit the final exam, students must complete both assignments and achieve an overall mark of at least 50% for internal assessment.
http://www.otago.ac.nz/studentmail Page 6 Assessment Format -You are required to complete all pieces of internal assessment. No. Assessment % Due Date 1 Research and critical reflection on consumption and wellbeing This assignment is comprised of your reflection on your own consumption and the role it plays in your own wellbeing and the wellbeing of people you know; and also your research into whether the international trends discussed in lectures are similar to or different from what is happening in New Zealand. For the research part of the assignment you will need to find at least two published sources that provide evidence regarding the question, and to critically evaluate each source and then come to a conclusion. The assignment will be between 1,000 and 1,300 words in length and written in Times New Roman 12 point font, 1.5 line-spacing with margins of 2.5cm on all sides. Failure to
adhere to these instructions will result in a loss of marks. Further guidance on this assignment will be given in lectures. It is not expected that this will be written in a formal essay style, but what is expected is that it will be clear, coherent and easy to read! Conventions related to grammar and spelling will be observed and marks will be deducted from assignments that fail to meet these minimum standards. 25 Deadline: 5PM, Friday 30 th January. Hard copy to be posted in 100 level Marketing box, Level 3 Commerce Building AND electronic copy posted to Blackboard. Your assignment is not submitted until it has been uploaded to Blackboard (as well as put into the mailbox) 2 Deconstruction presentation In pairs, you will choose two advertisements for competing
products and present a deconstruction of them, which explains key message, execution, positioning and communication strategies. The presentation will take place in tutorials and will last eight minutes. You must give a one page summary for each advertisement to the marker. The summary should include; where the advertisement is from, the readership, and key features of the advertisement’s meaning. Marks will be awarded according to clarity, coherence and appropriateness of explanation. The advertisements must be from a print magazine that is no older than six months (you must provide the magazine in your presentation) and the products should be targeted at segments that you do not now, or in the next 10 years belong to. No Powerpoint presentations. 15 Week beginning 10 February. Rooms and times to be advised. 4 Final examination 60 Essay style, date & location to be advised. Page 7 Assignment Submission Procedure Please note that the Critical Reflection is to be handed in both
as a hard paper copy and as an electronic document. The latter is to enable ease of collation and to allow the application of digital scanning software to prevent plagiarism. Results will be posted on Blackboard. Late submission of either will be dealt with according to the policy outlined at the end of the course outline – the assignment will not be considered submitted until both versions are received. Teaching staff do not have the technical expertise to deal with problems submitting assignments to Blackboard, so (a) do not leave this until the last minute; and (b) if you have any trouble, contact the ITS helpdesk immediately. Late Assignments Assignments received after the deadline and within 24 hours after the deadline will have 25% deducted from the available grade for the piece of assessment (i.e. 78% becomes 53%). Assignments received 24 hours and later than the deadline will not be marked. Referencing Style and Style Guide For this paper the referencing style is APA. Style guides are also available on the University Library website: http://www.library.otago.ac.nz/research/citation.html Quality Assurance At the Otago Business School we monitor the quality of student learning and your learning experience. Your assessed work may be used for assurance of learning processes, such as evaluating the level of achievement of learning outcomes, with the aim of improving the quality of
our programmes. All material used for quality assurance purposes will be treated as confidential and the outcome will not affect your grades. Learning Outcomes Learning Outcome Critica l R e fle ctio n P re se n ta tio n E x a
m culture’ comes into existence and how both firms and consumers co- create this culture, concepts and processes that relate to needs, decision and consumption behaviour, ibe and give examples of the roles of identity and social environment in consumption decisions and processes and not-for-profit exchange processes by using brands, products and service creation, promotion and pricing. Total 25% 15% 60%
Page 8 Grading System The grading scheme used at Otago is: A+ 90-100 C+ 60-64 A 85-89 C 55-59 A- 80-84 C- 50-54 B+ 75-79 D 40-49 B 70-74 E <40 B- 65-69 Dishonest Practice and Plagiarism Students should ensure that all submitted work is their own. Plagiarism is a form of dishonest practice (cheating). It is defined as copying or paraphrasing another’s work and presenting it as one’s own. Any student found responsible for dishonest practice in any piece of work submitted for assessment shall be subject to the University’s dishonest practice regulations, which may result in serious penalties, including forfeiture of marks for the piece of work submitted, a zero grade for the paper, or in extreme cases, exclusion from the University. The University of Otago reserves the
right to use plagiarism detection tools. Students are advised to inform themselves about University policies concerning dishonest practice and take up opportunities to improve their academic and information literacy. If necessary, seek advice from academic staff, or the Student Learning Centre. The guideline for students is available at this link: http://www.otago.ac.nz/study/plagiarism/ The Library resource on ethical use of information is available via this link: http://oil.otago.ac.nz/oil/module8.html Page 9 Course Schedule The substantive content of the course is delivered through the lecture programme. Details of, and support for, assignments will be provided in lectures and in consultation hours on Wednesdays.
Week no. Date Lec. no. Topic/Modules Readings Assessment and other info 1 6 th Jan 1 Introduction To BSNS 103 Consumption & Happiness Material on Blackboard (Schor & Ch. 12 of John’s unfinished CB book)
2 Consumption & Wellbeing -control 7 th Jan 3 Consumer Behaviour pp. 232–260 pp. 94–101 4 Information Search pp. 40–63 pp. 65–92 2
13 th Jan 5 Beliefs, Attitudes & Values pp. 195–226 pp. 110–124 6 Identity -concept pp. 128–151 pp. 159–171 pp. 104–110 14 th
Jan 7 Society, Culture & Lifestyle pp. 388–417 pp. 171–186 8 Choice ituational factors pp. 264–276 3 20 th Jan 9 Value & Pricing
-creation of value pp. 278–279 10 Consumer Satisfaction Dissatisfaction Complaint behaviour pp.276–277 & 279 21 st Jan 11 Emotion and the Unconscious decision-making decision-making
Blackboard (Ch. 9 of John’s book) and pp. 161 & 236 Page 10 4 27 th Jan 12 Communication Assignment 1: Research and critical reflection,
due on Friday before 5PM. 13 Integrated Marketing Communication 28 th Jan 14 Brand Relationships 15 Communication Trends and Co- Creation 5 3
rd Feb 16 Consumption and Marketing Management 17 Consumer and Market Research 4 th Feb 18 Culture, Consumption and Marketing
Consumer Culture 6 10 th Feb 19 Consumer Counter Culture Deconstruction Presentations . Rooms and times to be advised. 20 No Logo 11 th
Feb 21 Course Review Underpinning Philosophy Page 11 Student Learning Support and Information Student Charter http://www.otago.ac.nz/about/otago005275.html Guidelines for Learning at Otago http://hedc.otago.ac.nz/hedc/wp- content/uploads/2012/12/Guidelines-for-Learning.pdf http://hedc.otago.ac.nz/hedc/learning/
Student Learning Centre The Student Learning Centre, which is part of the Higher Education Development Centre, provides learning support, free of charge, to ALL enrolled students. Their services include: their learning strategies and their generic skills; -line study skills advice; -led peer support programme for students of all ages and backgrounds. - English speaking background The Centre also provides two very helpful study guides, “Guidelines for Writing and Editing” and “Writing University Assignments” and these are available on the SLC website. http://hedc.otago.ac.nz/hedc/learning/ Library Support The University Library provides online resources for students. These include subject guides, and other research resources, and citation styles. Check it out at:
http://www.otago.ac.nz/library/for/undergraduates/index.html The Library website http://www.library.otago.ac.nz/index.php provides online access to resources and services, including group room bookings, library hours and locations, past exam papers, subjects guides and more. From your mobile: http://m.otago.ac.nz/library/ http://www.otago.ac.nz/about/otago005275.html http://hedc.otago.ac.nz/hedc/wp- content/uploads/2012/12/Guidelines-for-Learning.pdf http://hedc.otago.ac.nz/hedc/learning/ http://hedc.otago.ac.nz/hedc/sld/Workshops.html http://hedc.otago.ac.nz/hedc/sld/Student-Leadership- Programme.html http://hedc.otago.ac.nz/hedc/sld/Student-Leadership- Programme/Peer-Support-Information.html http://hedc.otago.ac.nz/hedc/learning/ http://www.otago.ac.nz/library/for/undergraduates/index.html http://www.library.otago.ac.nz/index.php http://m.otago.ac.nz/library/ Page 12 Māori Student Support Tënā koutou katoa, Ko Corey Bragg töku ingoa Ko Ngāi Tahu, Kāti Mamoe, Waitaha me Ngāti Kahungunu öku
iwi Kia ora, my name is Corey Bragg and I am the Māori student support person in the Business School. My role is to help link Māori students with the various support networks throughout the university and the community. Kaua e whakamā, don't be shy - come in for a chat. Mauri ora mai. Tel 479 5342 Email [email protected] Room CO 3.21 Pacific Islands’ Student Academic Advisor Warm Pacific Greetings Talofa lava, my name is Esmay Eteuati and my role is to liaise with Academic Departments and Student Services relating to Pacific students’ and their course of study. I support both staff and students in the Business School and have a network of Pacific contacts in other Divisions around the University. Tel +64 3 479 4756 Email: [email protected] Marketing Department support person for Maori/Pacific Island students is Mathew Parackal. Contact Mathew at the following: Tel 479 7696 Email: [email protected] Disability Information and Support Students are encouraged to seek support if they are having difficulty with their studies due to disability, temporary or permanent impairment, injury or chronic illness. It is important to seek help early, through one of the contacts below: Mathew Parackal Email: [email protected] Phone 479 7696
Student Feedback We encourage your feedback. This can be in the form of contacting staff, participating in course evaluation surveys and communicating with class representatives. Continual improvements will be made to this course based in part on student feedback. Recent changes to this course as a result of constructive feedback include (insert summary of improvements) Class Representatives The class (or student) representative system is an avenue for encouraging communication and consultation between staff and students. It provides you with a vehicle for communicating your views on the teaching and delivery of the paper and provides staff with an opportunity to communicate information and gain constructive feedback from students. It contributes to the development of a sense of community within a department and it adds a further dimension to the range of support services offered to students.
mailto:[email protected] mailto:[email protected] mailto:[email protected] mailto:[email protected] Page 13 Volunteers for the role of class representatives will be called early in the semester. The OUSA invites all class representatives to a training session, conducted by OUSA, about what it means to be a class representative and some of the possible procedures for dealing with issues that arise. They also provide information on the services that OUSA offers and the role OUSA can play in solving problems that may occur. The OUSA provides support to class representatives during the semester. Departmental staff will also meet with class representatives during the semester to discuss general issues or matters they wish to have considered. Your class representative’s name and contact details will be posted on Blackboard early in the
semester. Concerns about the Course We hope you will feel comfortable coming to talk to us if you have a concern about the course. The Course Co-ordinator will be happy to discuss any concerns you may have. Alternatively, you can report your concerns to the Class Representative who will follow up with departmental staff. If, after making approaches via these channels, you do not feel that your concerns have been addressed, there are University channels that may aid resolution. For further advice or more information on these, contact the departmental administrator or head of department. Disclaimer While every effort is made to ensure that the information contained in this document is accurate, it is subject to change. Changes will be notified in class and via Blackboard. Students are encouraged to check Blackboard regularly. It is the student’s responsibility to be informed.
Page 14 DEPARTMENT OF MARKETING Policy on Student Internal Assessment The purpose of this document is to have a consistent policy throughout the department as well as to develop students’ time management
skills. It reflects usual practices in the business world in which neither success (here: grades) nor deadlines are negotiable. 1 Dissemination of Grades – Regarding internal assessment, class averages and distribution will be displayed graphically by letter grade for each piece of the assessment. The letter grade only will be returned to the student on their work. At the end of the semester, all internal assessment will be displayed by Student ID with the letter grades for each assignment. All students are requested to check these when posted on the web-based Blackboard – any discrepancies should be reported to the course coordinator as soon as possible. 2 Late Assignments – Assignments received after the deadline and within 24 hours after the deadline will have 25% deducted from the available grade for the piece of assessment (ie. a 78% becomes a 53%). Assignments received 24 hours and later than the deadline will not be marked and there will be no grade given. 3 Extensions – Extensions will be granted only in exceptional circumstances (eg. illness with supporting medical documentary evidence stating nature and length of impairment, family emergency, provincial or national representative activities) by the appropriate paper administrator. If the assignment or internal assessment tests count
significantly towards the final result then a formal medical certificate is required. As a guideline, an internal assessment component which counts for 20% of the final result wo uld be considered significant. 4 Tutors and lecturers are not authorised to give extensions. Only the paper administrator should be approached (consult the course outline for the person(s) responsible). Computer problems do not constitute an exceptional circumstance unless it is an officially notified failure of university equipment. 5 Plagiarism – Plagiarism is the dishonest use of someone else’s words, facts or ideas, without proper acknowledgement. Most students will include other people’s ideas and information in their work and assignments - such material may be either quoted or digested and used by students. In either case, acknowledgement is essential. Note that the University of Otago Calendar under Student Conduct Rules Part 1 Section 1 (e) states that no student shall “engage in any dishonest practice as described in regulation 5(b) of the Examinations and Assessment Regulations in connection with an examination or other method of academic work which counts towards the attainment of a pass in any subject.” 6 Problems with group work – Where group work is set and a group is experiencing difficulties, the students should approach
their tutor to try to resolve these differences. The tutor will counsel the group, or individuals from the group, on the pr ocedures open to them to resolve group problems (the problem should be raised prior to the work being completed or handed in). The procedure to be followed is: i) students should try to resolve the problems within the group without outside assistance. ii) students should meet with their tutor to endeavor to resolve outstanding issues. iii) the tutor will arrange for students to meet with the paper administrator who will endeavor to resolve the situation. This procedure MUST be completed to step iii) before the assignment is submitted for grading. Where there are still unresolved difficulties, step iv) will be implemented. iv) students will complete a ‘Peer Assessment’ form available from the appropriate paper administrator (which must be submitted to the tutor or paper administrator before any grades are released). Paper administrators reserve the right to require all students to complete peer assessment forms at any time during and/or af ter submission of an assessed group project. Should there be differences in the peer assessment forms, the student(s) will be required to either submit in writing to, or meet with a group comprised of their paper administrator and lecturer(s) and others (as deeme d
appropriate) to provide an explanation for the discrepancy. A differential allocation of grade may result from this process. Page 15 DEPARTMENT OF MARKETING Policy for Special Consideration in Final Exams *** All applications for special consideration must be dealt with through the examinations office not the department **** The Special Consideration provisions apply only to final examinations and only where it is clearly documented that a candidat e has been prevented from taking an examination through illness or other exceptional circumstances beyond his or her control; or has been seriously impaired by illness or other exceptional circumstances beyond his or her control at the time of, or in the 14 day period imme diately prior to the examination itself. Where students have been affected by
illness or other exceptional circumstances during the teaching period, they are expected to have informed Heads of Departments directly at the time (not individual lecturers or tutors). Process You need to obtain an application form from the University Information Centre or Student Health. You can also download the Application for Special Consideration in Final Examinations form Application for Special Consideration in Final Examinations form If your condition persists and you find that you are still seriously impaired for a later examination, do not submit a second application form, but contact the Examinations Office for advice (+64 3 479 8237). No special arrangements can be made for candidates who fail to attend examinations at the correct time. Deadline: Five calendar days from the date of the last examination for which you are making an application for Special Consideration. Please Note: Applications cannot be accepted without supporting documentation such as a medical certificate. For further information please see: Health Declaration for Special Consideration Application Absences
1 A student may be offered an aegrotat pass providing: a their grade for internal assessment is C+ or better and b the internal grade they have achieved has contained a significant element of individual work as opposed to group assignments (25% of the total grade for the paper). 2 All other cases will be offered a special examination. 3 In some cases that qualify for an aegrotat, it may be relevant to offer the student the choice of an aegrotat or a special examination. For example aegrotats at any stage of the course can have a detrimental effect on a student’s ability to qualify for scholarships. 4 Special examinations for Semester One 2014 will be held on (date to be arranged), in the week prior to Semester Two commencement. Special examinations for Semester Two 2014 will be held on (date to be arranged), two weeks after cessation of official examination period. Impaired Performance 1 If the student has no internal assessment there will be no
adjustment to the exam mark and only an optional special will be offered. 2 If the student has internal assessment the examination mark may be adjusted by taking account of the discrepancy between the examination and internal marks, with particular attention to individual work for the student in comparison to that for the wh ole class. 3 In all other circumstances the student will be offered the choice of accepting this mark or sitting a special examination. 4 Once a student accepts to take a special examination the original examination mark is nullified and the result of the special examination replaces the original mark, even if it is lower. Any absence or impairment for the special examination must be covered using the same regulations as apply for normal university examinations. http://www.otago.ac.nz/services/uic.html http://www.otago.ac.nz/studenthealth http://www.otago.ac.nz/prodcons/groups/public/documents/webc ontent/otago001756.pdf http://www.otago.ac.nz/study/exams/Special%20Consideration% 20Health%20Declaration.pdf assignment1/lecture notes/0106consumption-and-happiness-
notes(2).pdf BSNS 103: Marketing and Consumption Consumption and Happiness John Williams [email protected] January 6, 2014 1 Agenda • Introduction to the course • Concepts of well-being – subjective well-being – objective well-being • Influences on subjective well-being • Short film: excerpt from The Overspent American • Competitive consumption • The “new consumerism” 2 BSNS 103: Structure • 2 × 2-hour lectures per week: Tuesdays at noon; Wednesdays at 13:00 – with a 10 min break after ≈ 50 minutes • No tutorials, instead we have consultation hours: mine are Wednesdays 15:00–16:50 • Two assignments: one individual (25%), one group (15%)
• Exam 60%, must get at least 50% on internal assessment to sit exam First assignment due 30 Jan: research and critical reflection on consumption and well-being (see course outline) 3 BSNS 103: Ethos Overall, the emphasis of this course is on: • Consumer behaviour theory • The social and cultural implications of consumption • The roles of consumer culture and popular culture in contemporary life • The relationship between consumer behaviour and marketing action In a critical and ethical framework 1 mailto:[email protected] 4 Critical thinking “Critical thinking” does not mean “criticising” in the sense of finding fault. Rather, it means: • Identifying the assumptions that underly a statement (or set of statements) • Evaluating whether each of them:
– Are likely to be true – Can even be assessed (if so, how?) – Are critical to the statement(s) • Given the above, assessing the credibility of the statement(s) • Applying the same rigorous analysis to your own thinking and statements! 5 Happiness and well-being • Many happy people are not “well”, and vice versa • Most scholars argue that happiness should be measured something like: – “All things considered, how happy are you with your life?” • Well-being consists of happiness plus more “objective” measures,e.g. health, education, recreational opportunities, . . . – In other words, considering physical, mental and social health See, for example, the UK government’s attempt to quantify the well-being of their nation. 6 Attributes of happiness • Some people seem to be happy no matter what happens to them, and vice versa • We seem to have a “normal” level of happiness that we return to after short-term fluc- tuations (hysteresis) – Evidence that lottery winners are happier in the short term,
then return to nor- mal (Brickman, Coates, & Janoff-Bulman, 1978) – Same for severe accident victims, even paraplegics (Bulman & Wortman, 1977) 7 Money doesn’t buy happiness (?) • “We were poor, but we were happy” — Money doesn’t buy happiness (?) • Money doesn’t buy happiness? Tell that to someone living on a benefit! • But there are plenty of rich people who are unhappy • Empirical evidence seems clear: at the low end, more money certainly does make people happier; but above a certain level it has no effect 2 http://www.ons.gov.uk/ons/guide-method/user-guidance/well- being/index.html 8 Income and happiness • Evidence from many sources that more income increases happiness up to a point, then it has no (or minimal) effect – Responses from the same person over time – Comparing different people in the same country – Within country over time – Comparing different countries at the same time
• Most people in developed countries say they are reasonably happy and/or satisfied with their live 9 Evidence from the USA 3,000 5,000 7,000 9,000 11,000 13,000 15,000 1930 1940 1950 1960 1970 1980 1990 1991 100 0 20 40 60 80 Year
P e r- p e rs o n a ft e r- ta x i n c o m e i n 1 9 9
0 d o ll a rs P e rc e n ta g e d e s c ri b in g t h e m
s e lv e s a s v e ry h a p p y Personal income Percent very happy Image by MIT OpenCourseWare. Source: Myers and Diener (1995) 10 Influences If money doesn’t buy happiness, what does? Kawachi and Kennedy (2002, p. 30–31) sum- marize some of the main findings of this stream of research:
• Age, sex and ethnicity seem to have little to do with happiness • Having a supportive network of close relationships seems to be very important • Having satisfying work and leisure is also highly related to happiness • The influence of income and wealth is mixed 3 11 Status • Status is the hierarchical position of a person or group in society, and includes both prestige and power • Even in “classless” societies (like NZ), some individuals and groups are clearly of higher or lower status • In the absence of knowledge, we infer the status of individuals from: – Material social markers (clothing, grooming, possessions, . . . ) – Social behaviours (manners, tone of voice, accent, education, polysyllabism, . . . ) Causes and consequences of status: “Different societies have awarded status to different groups: hunters, fighters,
ancient families, priests, knights, fecund women. Increasingly, since 1776, status in the West . . . has been awarded in relation to financial achievement.” “The consequences of status are pleasant. They include resources, freedom, space, comfort, time and, as importantly perhaps, a sense of being cared for and thought valuable—conveyed by invitations, flattery, laughter (even when the joke lacks bite), deference and attention.” — Alain de Botton (2004, p. 3), Status Anxiety 12 Leisure We could now reproduce our 1948 standard of living [. . . ] of marketed goods and services in less than half the time it took in 1948. We actually could have chosen the four-hour day. Or a working year of six months. Or imagine this: every worker in the United States could now be taking every other year off from work, with pay — Juliet Schor (1991, p. 2) 13 Marriage Being married is one of the major sources of happiness, and yet. . . Year Married Divorced Single Widowed 1950 67 2 23 8
1960 68 2 22 8 1970 65 3 24 8 1980 63 6 24 7 1990 61 8 24 7 2000 59 9 26 6 Marriage and divorce statistics for the USA, 1950–2000 14 Causes and costs of divorce • Financial problems are a leading cause of divorce • Divorced people are, on average, worse off than married people, financially and physi- cally (shorter life expectancy) • Children of divorced couples are also worse off than children of married couples (Offer, 2006, Chap. 14). 4 http://en.wikipedia.org/wiki/Social_status 15 Mental disorders • In the USA, people born after 1955 are ten times more likely to suffer from depression as those born before 1915. • The rate of youth suicide has increased 300% since the 1960s. • Both mental disorder in general, and suicide in particular, are correlated with both the level and rate of increase of income per capita, both
– across countries – within countries, over time (Offer, 2006, p. 347–350). 16 Film The Overspent American, by Juliet Schor. • This film discusses the influence of consumption on well- being in the USA. • It is available on DVD from the university library (O92818) • Core concepts: 1. The New Consumerism 2. The Aspirational Gap 17 The “new consumerism” • A few decades ago “keeping up with the Joneses” meant keeping up with your neigh- bours, i.e. others in your community • Then: – Women entered the workforce in much greater numbers post- WWII – Television became a fixture in almost every home • So, “the Joneses” were now Oprah Winfrey, Donald Trump, the Kardashians, . . . • If happiness is the difference between what we have and what we want, we suddenly
became more unhappy 18 What is the “good life”? Item 1975 1991 % change What makes a good life? Vacation home 19 35 +84 Swimming pool 14 19 +36 Job that pays more 45 60 +33 Interesting job 38 38 0 Happy marriage 84 77 -8 What is a necessity? Second television 3 10 +233 Home air conditioning 26 51 +96 Source: Schor (1998) 5 http://otago.lconz.ac.nz/vwebv/search?searchArg=O92818&sear chCode=CALL%2B&searchType=1 19 The aspirational gap • The “Aspirational Gap” is the difference between what we want and what we can afford – We can either be unhappy/dissatisfied now and wait until we can afford it – Or we can get it now by taking on debt • If we take on debt, we have to work more to pay it off • This accelerates the work-and-spend cycle, and generates
short-term rewards at the cost of long-term debt and associated stress 20 Positional consumption A sample of people were asked which of the following two worlds they would live in: A Your income is $50,000 and most other people earn $25,000 B Your income is $100,000 and most other people earn $250,000 You can assume that the purchasing power in each scenario is the same. • Which would you prefer? 21 Summary • Money doesn’t buy happiness, except in rare cases • But poverty can (almost) guarantee misery • Poverty is relative • Affluence can contribute to unhappiness through broad social trends, as well as directly through lack of self-control 22 Key concepts • Happiness and well-being, and what influences them • Competitive/positional consumption • The new consumerism • The aspirational gap
23 Activities 1. Consider your consumption over the last week. How has it contributed to your overall happiness? 2. What does “happiness” mean to you? What things make you happy? Which of these things can be bought? 3. Can you find statistics on income, wealth, happiness, marital status and mental illness in New Zealand covering the same or similar time periods as discussed in this lecture? If so, do they show the same trends? 4. Have a look at The World Database of Happiness for some ideas about happiness, and a summary (and details) of empirical evidence regarding correlates of happiness 6 http://worlddatabaseofhappiness.eur.nl/ 24 Example exam questions 1. “Money does not buy happiness.” Discuss. 2. What is, according to Juliet Schor, the “New Consumerism”? Discuss both what it is and how it came to be. What is the relationship between the aspirational gap and new consumerism?
3. It is usually assumed that more income and/or wealth makes people more happy. Dis- cuss some ways in which this might not be the case. References Brickman, P., Coates, D., & Janoff-Bulman, R. (1978). Lottery winners and accident victims: is happiness relative? Journal of Personality and Social Psychology, 36, 917–927. Bulman, R. J. & Wortman, C. B. (1977). Attributes of blame and ‘coping’ in the ‘real world’: severe accident victims react to their lot. Journal of Personality and Social Psychology, 35, 351–363. de Botton, A. (2004). Status anxiety. London: Penguin Books. Kawachi, I. & Kennedy, B. P. (2002). The health of nations: why inequality is harmful to your health. New York: The New Press. Myers, D. G. & Diener, E. (1995). Who is happy? Psychological Science, 6(1), 10–19. Offer, A. (2006). The challenge of affluence: self-control and well-being in the United States and Britain since 1950. Oxford: Oxford University Press. Schor, J. B. (1991). The overworked American: the unexpected decline of leisure. New York: Basic Books. Schor, J. B. (1998). The overspent American: upscaling, downshifting and the new consumer. New York: Basic Books.
7 AgendaBSNS 103: StructureBSNS 103: EthosCritical thinkingHappiness and well-beingAttributes of happinessMoney doesn't buy happiness (?)Income and happinessEvidence from the USAInfluencesStatusLeisureMarriageCauses and costs of divorceMental disordersFilmThe ``new consumerism''What is the ``good life''?The aspirational gapPositional consumptionSummaryKey conceptsActivitiesExample exam questions assignment1/lecture notes/0106consumption-and-wellbeing- notes(2).pdf BSNS 103: Marketing and Consumption Consumption and Well-being John Williams [email protected] January 6, 2014 1 Agenda 1. Increase in objective well-being since WWII 2. Consumption choices 3. The challenge of affluence 4. Distribution of material well-being 5. The costs of inequality 2 More goodies • The rise in material standard of living since (at least) WWII
• TV, colour TV, flatscreen TV, HDTV, plasma TV, LCD TV, 3D TV, Ultra-HD, . . . • Computers, the Internet, mobile phones, smart phones, GPS, . . . • Cars: more powerful, comfortable, safe, fuel-efficient, . . . • Cheaper consumer goods due to “globalisation” 3 Health We’ve been getting healthier and living longer 1 mailto:[email protected] 4 Work • Change in hours and types of work • Post WWII, major gains in productivity were made • Some people predicted that we would be working 4-day weeks • Others claimed that the major problem of society would no longer be producing enough; but rather how to spend our leisure time! • It hasn’t quite worked out that way . . . 5 Affluence and self-control • Economic historian Avner Offer, in his book The Challenge of Affluence, writes that: Affluence leads to impatience, and impatience undermines well-
being. — Avner Offer (2006, p. 1) • Long-term well-being requires balancing satisfying desires now, and providing for the satisfaction of desires in the future also • The increased pace of innovation under affluence erodes our ability to commit to other people, and our future well-being 6 Women and children last • Because we want more, we are more self-focused and less willing to compromise or sacrifice for others • Marriages are less likely and shorter due to stress of working and raising a family (and lower comittment) • Families are having fewer children (economic tradeoff), only children and children of divorced parents worse off • Women still bear the majority of the burden of home-making and child-rearing, even when they have high-status jobs 7 Obesity It’s an epidemic. Why, I wonder? . . . 2
8 Food waste • And yet about 50% of the world’s food production is wasted • About 30% of food production is rejected by supermarkets • In “developed” countries, about 30–50% of food purchased by consumers is wasted • While in less developed countries, millions go hungry Source: Institute of Mechanical Engineers (http://www.imeche.org/...) 9 Consumption choices At the broadest level, we can spend our incomes in four ways 1. Private consumption 2. Public consumption (i.e. taxes give governments money to provide public goods) 3. Savings 4. Leisure (i.e. we “buy” leisure by giving up income) In many developed economies, private consumption is “crowding out” all three other types of spending 10 Private vs. public consumption • As the aspirational gap widens, and the cycle of work-and- spend intensifies, many peo- ple are less willing to pay tax • Spending on public goods (schools, hospitals, libraries, public
transport, cycle lanes, . . . ) is falling in many countries • “Urban decay” a major problem in some cities, especially in the USA 11 Savings Country 1970s 1980s 1990–1992 Japan 25.6 20.9 23.0 Germany 15.1 11.6 12.4 France 17.1 9.0 8.7 Italy 16.4 11.2 7.6 USA 9.1 5.2 2.5 Net savings as a percentage of national income Kawachi and Kennedy (2002, p. 81) cite further evidence that by 1998 the personal savings rate in the US was 0.5%, and in July 2000 hit a post-WWII low of −0.2%. 12 Leisure • Longer work hours mean less leisure time • More stressful life means we are able to enjoy our leisure time less • Leisure has also become more expensive, as we choose more expensive leisure activities and holidays • Many professionals expected to be contactable during “holidays”, and/or feel discon- nection anxiety
3 http://www.imeche.org/knowledge/themes/environment/global- food?WT.mc_id=HP_130007 13 Society and community • General dissolution in “community” and “society” (according to some critics) • People staying in jobs and houses for a far shorter time than previously • Less of a sense of commitment to communities, falling rates of volunteer work and charitable donations 14 Trust in institutions Institution 1966 1973 1986 The military 61 40 36 Higher education 61 44 34 Medicine 73 57 33 Supreme court 50 33 32 TV news 41 27 Religion 41 36 22 Congress 42 21 Local government 28 21 The press 29 30 19 White House 18 19 State government 24 19 Federal government 41 19 18 Major companies 55 29 16 Law firms 24 14
Trade unions 22 20 11 15 Mental health • General mental health problems • Rise in mental illness, especially depression – Each generation born since WWII has experienced higher rates of depression – Those after born WWII are ten times more likely to experience depression than those born before (Cross-National Collaborative Group, 1992) • Rate of youth suicide increased 300% since the 1960s, and highly correlated with both level and rate of increase of personal income (Offer, 2006, p. 350) 16 Are we gonna take it? The incomes of the top 1% are growing very rapidly, and even growing during the GFC while the rest of us are suffering . . . 4 17 Income and wealth inequality The upper 1 percent of Americans are now taking in nearly a quarter of the nations income every year. In terms of wealth rather than income, the top 1
percent control 40 percent. Their lot in life has improved considerably. Twenty- five years ago, the corresponding figures were 12 percent and 33 percent. . . . While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous—12 percent in the last quarter-century alone. All the growth in recent decades—and more—has gone to those at the top. — Joseph Stiglitz (2011) 18 Top 1% incomes in the USA and NZ 1920 1940 1960 1980 2000 8 1 0 1 2 1 4 1 6 1
8 2 0 Year % 1920 1940 1960 1980 2000 6 8 1 0 1 2 1 4 Year % Share of income earned by the top 1% in the USA (top) and NZ (bottom) 19 Even the rich pay • The USA is one of the most unequal societies in the world • It also has some of the worst health outcomes of the “rich” countries
• Even amongst the highly educated and wealthy people Source: Woolf and Aron (2013), see a short summary here • Inequality drives crime, which the wealthy also suffer from, directly and indirectly 20 Schor’s analysis Schor (1998): The “new consumerism” due to, driven by women entering the workforce, less social contact and more TV • Stretching reference groups • Private spending crowding out public spending (lower willingness to pay tax) • indicators of real social well-being began to diverge from GDP in the mid 1970s (Schor, 2000, p. 451) 5 http://finance.yahoo.com/news/u-lags-peers-life-expectancy- 021000978.html 21 Consumption myopia Back to decision-making: • In general, we are very bad at trading off short-term gain for long-term pain (e.g. smok- ing, eating, . . . ) • That is why affluence is bad for well-being: we are like kids in a candy store
• Studies show that young children who can delay gratification are more successful in later life 22 The elephant in the room The costs of affluence are not simply a matter of individual well-being: – Climate change – Peak oil – Peak water – etc. Two major problems: 1. Resource depletion 2. Waste disposal Issues of sustainable civilisation, not “merely” individual well- being or social justice 23 Role of marketing – Philosophy of business: growth vs. enough (maximization vs. optimization) – Triple bottom line: * from Profit alone * to Profit, People, Planet – You are our hope for the future: when you are a marketer, how will you act? – What will you say to academics who tell you the goal of
business is maximising shareholder wealth; or “the business of business is business”? 24 Role of consumers What is the role of consumers? – If businesses won’t act ethically, what can consumers do? – If consumers won’t act ethically, what can governments do? – Will a government that forces ethical consumption get (re) elected? As consumers, no-one is coming to save us. It’s up to us to save ourselves – Reduce, re-use, recycle. Reduce is best. – Don’t think of it as self-denial, think of it as liberation 6 25 Summary – We’re better off in some ways, worse of in other ways – Affluence is not all bad, but can have some negative outcomes on well-being, mainly due to lack of self-control and myopia – “New consumerism” is the cycle of work-and-spend; the aspirational gap and in- creased debt/decreased savings – Inequality hurts the poor most, but even the rich pay the costs
of inequality 26 Key concepts – Happiness and well-being – Affluence and impatience – Income and wealth inequality – Costs of affluence to individuals, society and humankind as a whole 27 Activities – Almost all of the evidence for the propositions in this lecture was from the USA and UK. Can you find any evidence that the same thing is happening in New Zealand? – Identify the areas in your life where you wish you had more self-control – For each of those areas, what contributes to your lack of self- control, and what can you do about it? – Read the interview with Avner Offer (Offer, 2007) and decide whether you agree with his ideas 28 Example exam questions – What, according to Avner Offer, is “the challenge of affluence”? Do you agree or disagree with his assertion and reasoning? Why or why not? – What are the costs of inequality? Discuss the costs to those at
both the bottom and the top of the income and wealth continuum. – Does recognition of the down-sides of affluence, and a drive to reduce consump- tion, threaten our national well-being? Why or why not? 7 http://www.jstor.org/stable/40722436 References Cross-National Collaborative Group. (1992). The changing rate of major depression: cross-national comparisons. Journal of the American Medical Association, 268, 3098–3105. Kawachi, I. & Kennedy, B. P. (2002). The health of nations: why inequality is harmful to your health. New York: The New Press. Offer, A. (2006). The challenge of affluence: self-control and well-being in the United States and Britain since 1950. Oxford: Oxford University Press. Offer, A. (2007). The challenge of affluence. Challenge, 50(2), 6–19. Retrieved January 1, 2015, from http://www.jstor.org/stable/40722436 Schor, J. B. (1998). The overspent American: upscaling, downshifting and the new con- sumer. New York: Basic Books.
Schor, J. B. (2000). Towards a new politics of consumption. In J. B. Schor & D. B. Holt (Eds.), The consumer society reader (Chap. 26, pp. 446–462). New York: The New Press. Stiglitz, J. E. (2011, May). Of the 1%, by the 1%, for the 1%. Vanity Fair. Retrieved January 18, 2013, from http://www.vanityfair.com/society/features/2011/05/top- one-percent-201105 Woolf, S. H. & Aron, L. (Eds.). (2013). U.S. health in international perspective: shorter lives, poorer health. Washington, DC: The National Academies Press. Retrieved from http://www.nap.edu/openbook.php?record id=13497 8 http://www.jstor.org/stable/40722436 http://www.vanityfair.com/society/features/2011/05/top-one- percent-201105 http://www.vanityfair.com/society/features/2011/05/top-one- percent-201105 http://www.nap.edu/openbook.php?record_id=13497AgendaMor e goodiesHealthWorkAffluence and self-controlWomen and children lastObesityFood wasteConsumption choicesPrivate vs. public consumptionSavingsLeisureSociety and communityTrust in institutionsMental healthAre we gonna take it?Income and wealth inequalityTop 1% incomes in the USA and NZEven the rich paySchor's analysisConsumption myopiaThe elephant in the roomRole of marketingRole of consumersSummaryKey conceptsActivitiesExample exam questions assignment1/lecture notes/0107decision-making-notes(2).pdf
BSNS 103: Marketing and Consumption Decision making John Williams [email protected] January 7, 2014 1 Agenda 1. What is Marketing? 2. What is Consumer Behaviour? 3. Who are consumers, and what is consumption? 4. How do we choose what to consume? (Decision-Making) 5. Why do we consume? (Motivation) 2 Marketing Marketing is not selling! Nor is it advertising. • “Marketing”, in academia, means (roughly) “all the activities that go into figuring out what consumers want and giving it to them”, – usually at a profit – always in a competitive environment Includes business strategy, market research, product design, pricing, advertising, branding, logistics (storage and delivery), sales, after-sales service, . . . • Four Ps: Product, Price, Promotion, Place
3 Academia vs. the real world • In colloquial discourse “marketing” is often newspeak for “selling” – or advertising, or advertising + selling • Many (unenlightened) business people see Marketing as a “business function”, like HR or ICT • In academia, Marketing is a business philosophy (the “Marketing orientation”) that claims the One True Way to business success is to start with customer desires – Preceded by “Production orientation” and “Selling orientation” 1 mailto:[email protected] 4 Consumer behaviour • Consumer Behaviour is the study of why and how we make choices about the products we consume – Why: so business people can provide products that better meet the needs of con- sumers (and in a better way: better pricing, promotion and distribution) – Also to influence choice of product category and brand
• Multidisciplinary: including economics, psychology, sociology, anthropology, neuro- science, . . . 5 History of study • “Consumer Behaviour” was, for a long time, applied social psychology in the context of business, especially attitudes and attitude change – In the 1980s the influence of sociology and anthropology manifested in the mar- keting journals – In this millennium cognitive science is gaining popularity • Social psychology seems to be still the dominant (but not exclusive) paradigm 6 Who are consumers? • We all are, of course! – How strange that some authors refer to consumers as “they”, rather than “we”! • But it’s not all we are: just one role among many: student, friend, flatmate, child, sibling, . . . • But a role that everyone plays, if “consumption” is not equated with “buying” 7 What is consumption? • Not the same as “buying” – To “consume” means “to use up”, but we don’t always do that
– Probably “use” or “experience” would be better words than “consume” • The textbook lists some categories of things that are consumed (pp. 31–32): – Physical products – Services – Ideas – Experiences 2 http://en.wikipedia.org/wiki/Consumer_behaviour http://en.wikipedia.org/wiki/Economics http://en.wikipedia.org/wiki/Psychology http://en.wikipedia.org/wiki/Sociology http://en.wikipedia.org/wiki/Anthropology http://en.wikipedia.org/wiki/Neuroscience http://en.wikipedia.org/wiki/Neuroscience 8 What are products? Product: “. . . anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need. It includes physical objects, services, persons, places, organizations and ideas.” — Michael Saren (2004, p. 95) • Note: products are not just physical objects but goods and services
• Note: consumption is not the same as buying • When we buy something, there’s normally more to it than the ‘core’ product – Upgrades, e.g. more RAM or storage in a computer – Add-ons, e.g. screen protector for a cell-phone – Guarantee – After-sales service, help-lines, etc. – Manual, instructions • The ancillary aspects may or may not be consumed, e.g. warranty claim 9 Buying vs. consuming “In the factory we make cosmetics; in the stores we sell hope.” — Charles Revson, CEO of Revlon • What is bought vs. what is consumed, e.g. breakfast at a nice café • Question: what are you consuming when you get a coffee from Starbucks? 10 Means and ends “No-one wants a 14 -inch drill; they want a 1 4 -inch hole!” — Peter Drucker, Management guru. • Some things are “obviously” a need or a want (e.g. food vs. a PS4); but often the distinction is not clear (e.g. a phone)
• In general, not useful to distinguish between wants and needs (for consumer behaviourists) 11 Identity, society & culture • We buy and consume products to maintain not only our physical selves; but also our social selves (how we stand in relation to others) • Fashion is self-expression, but so too is buying Organic Fair- Trade green tea, or Tiger tea. • We’ll be looking at these issues in greater depth later in the course 12 Decision-making What is the process we go through when we make consumption decisions? • Rational? • Emotional? • Impulsive? • Compulsive? 3 13 Influences on consumption • Characteristics of individual: physical and mental
• Influence of others: family, friends, acquaintances, “community”, “culture”, “society” • Actions of other parties in exchange relationships and transactions – Manufacturer / Service Provider / Brand Owner – Marketing intermediaries Environmental - Economic - Technological - Political - Household type - Reference group - Roles and status Psychological Buyer decision process Source: Kotler, Brown, Burton, Deans & Armstrong (2010: 205) - Product category selection - Brand selection - Reseller selection - Purchase and repurchase timing - Purchase quantity - Marketing objectives - Marketing strategy - Marketing mix
- Age and life-cycle stage - Occupation - Economic situation - Motivation - Perception - Learning (memory) - Beliefs & Attitudes - Personality and Self-Concept Cultural Societal Buyer Response Marketing Consumer Lifestyle Personal - Culture - Subculture - Social class 14 From needs to consumption Use, Disposal Need recognition Information Search
Option Evaluation Choice Behaviour 4 15 A more detailed view Persuasion Evaluate Alternatives Usage & Disposal Recognise Need Get Information Pick Best Alternative Implement Decision Motivation Perception, Memory Society, Culture Attitudes,
Identity Situational Factors Satisfaction, Loyalty Value 16 Needs (or motivations) Most famous theory of motivation: Maslow’s hierarchy of needs Physiological Safety Belongingness & Love Esteem Self- actualisation Fulfillment: creativity, motherhood, athleticism, ... From self and others: strength, independence, freedom, status, fame, ... Friends, partner, children, family, social groups, ... Food, water, warmth, sleep, sex, ... Freedom from fear, need for order, ...
17 Maslow’s Hierarchy Basic premises: • Once a “lower-order” need has been satisfied, the next higher need becomes a motivator • In developed economies, the top three classes of needs are most active • Most motivation is unconscious Common misunderstanding: • Lower-order needs must be satisfied in order for higher-order needs to become active • He never wrote this, and actually stated the opposite! 5 http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs 18 Fundamental Drives • Consider humans as organisms: – Seek pleasure and avoid pain – Seek reward with minimum effort – Repeat behaviours that fulfill these drives (i.e. learn) – . . . • What proportion of our daily choices could be “explained” by these basic observations? – Need / desire recognition – Choice behaviour (act or not; what to choose)
19 Explanations? Exchange Actor Product Category (Sociology / Economics) Human (Anthropology / Psychology) Animal / Mammal (Zoology) Organism (Biology) EA Brand (Marketing) 20 Rewards • A “reward” is a physiological response to stimulus (including own behaviour) that in- creases probability of behaviour – “Natural” or “Primary” rewards include those necessary for survival of the indi- vidual and the species * Mnemonic: the Four Fs: feeding, fleeing, fighting and (ahem) mating – “Secondary” rewards are valued for their ability to gain
primary rewards, e.g. money, beauty, . . . • Again, what proportion of CB could be explained by this view? 21 The Subconscious Some claims that have been made in the CB (and other) literature: • Most of our motivations are subconscious • Many of our decision processes are subconscious • Many of our consumption decisions are more emotional than “rational” • Some decisions are conscious and “rational”, but probably not as many as we would think 6 22 Reason and Emotion • What proportions of our CB choices are determined, or at least influenced, by emotion? • Claim: so-called “rational” thinking or behaviour cannot occur without emotional input – All our rationality rests on unjustified or unjustifiable assumptions of what is good — result of emotional evaluation
• We’ll get into this in a later lecture 23 Some ethical considerations . . . Some big questions around marketing and consumption: • Does “normal” (i.e. non-compulsive) consumption harm our well-being? • How much or our consumption choices are due to conscious exercise of “free will” vs. “manipulation”? – Or other things, e.g. unconscious processes, habits, . . . If the answers to the above are “yes, at least sometimes”, and “quite a bit”, then: Is marketing evil? • I have opinions on these questions, but your opinion is what I want to hear! 24 Summary • Consumer behaviour is the study of consumers and consumption, but not only behaviour (confusing, eh?) • Can be for the purposes of helping marketers and other business people • Can be also a legitimate field of study for its own sake, like philosophy, classics or fine arts • Most, but certainly not all, of our motives and decision processes are emotional and/or
unconscious 25 Key concepts 1. Consumption and consumer 2. Product 3. Consumer decision process 4. Maslow’s hierarchy of needs 5. Fundamental drives 7 26 Activities 1. Recall the last five food or drink purchases you made. To what degree were they in- fluenced by habit, a heuristic, or a conscious choice where you evaluated two or more alternatives? 2. Recall your most recent purchase today • Was your choice based on brand? • What drove (a) the need to consume; and (b) the item purchased? (Organism, Animal, Human, Exchange Agent, Brand Chooser?) 3. Recall your most recent purchase over $500 • Answer same questions as above
27 Possible explanations • What roles do these motivations play? 1. Survival of the organism 2. Survival of the species (reproduction, sexuality) 3. Minimising pain and maximising pleasure 4. Social display 5. Ethical imperatives • Did marketing actions address these motivations? If so, how? – If not, what did they address? 28 Example exam questions 1. Explain the major elements of Maslow’s Hierarchy of Needs and discuss its how it could be used when designing an advertising campaign for a food product. 2. What are the four “primary” drives, and how to they differ from secondary needs? Do you think that these four primary needs are really fundamental to all or most consumer behaviour? Why or why not? References Saren, M. (2004). Marketing graffiti: the view from the street. Amsterdam: Elsevier. 8
AgendaMarketingAcademia vs. the real worldConsumer behaviourHistory of studyWho are consumers?What is consumption?What are products?Buying vs. consumingMeans and endsIdentity, society & cultureDecision-makingInfluences on consumptionFrom needs to consumptionA more detailed viewNeeds (or motivations)Maslow's HierarchyFundamental DrivesExplanations?RewardsThe SubconsciousReason and EmotionSome ethical considerations …SummaryKey conceptsActivitiesPossible explanationsExample exam questions assignment1/lecture notes/0107perception-and-memory- notes(2).pdf BSNS 103: Marketing and Consumption Perception and Memory John Williams [email protected] January 8, 2014 1 Agenda 1. Perception and attention 2. Memory 2 Topic Map Persuasion Evaluate Alternatives Usage & Disposal Recognise Need
Get Information Pick Best Alternative Implement Decision Motivation Perception, Memory Society, Culture Attitudes, Identity Situational Factors Satisfaction, Loyalty Value 3 Memory Here’s some statements about human memory. Which do you believe to be true? 1. Human memory works like a video camera, accurately recording the events we see and hear so that we can review and inspect them later 2. Once you have experienced an event and formed a memory of it, that memory does not
change 3. People generally notice when something unexpected enters their field of view, even when they’re paying attention to something else 4. The testimony of one confident eyewitness should be enough evidence to convict a defendant of a crime 1 mailto:[email protected] 4 Perception Physical stimulation of the five senses, interpreted by the brain 1. Sight: we rely on it for the vast majority of our information about our surroundings 2. Hearing: music is especially useful to marketers 3. Smell: can be incredibly evocative (the area of the brain that processes smell is right next to hippocampus, which is involved in memory) 4. Taste: can invoke intense pleasure (but is largely smell!) 5. Touch: can increase involvement (“Try it on!”) 5 Perception and awareness Sensation Perception
Attention Interpretation Stimulus Awareness Memory Selective Attention (e.g. Visual Clutter) Conscious/Subconscious Interesting/Useful? ? Thresholds of Sensation 6 Thresholds of sensation • Absolute thresholds, e.g. sound: 20 µ Pa; vision: 9 photons (!) • Differential thresholds, e.g. Just Noticeable Difference (JND): the minimum difference between two stimuli (e.g. two sounds) that a person can detect • Weber’s Law: d p = k dSS , where d p is the change in perception, dS the change in stim- ulus, S is the value of the initial stimulus, and k is a constant that is determined experi- mentally – i.e. Perceptual contrast: perception is relative to context
(“initial stimulus”) of sensation 7 Attention • Strictly speaking, we perceive much more than we are aware of • We filter out irrelevant, uninteresting or inconsistent sensations • We give our attention to only a small fraction of our sensations: selective attention • Example: count the number of passes in a basketball game 2 http://en.wikipedia.org/wiki/Weber-Fechner_law http://www.youtube.com/watch?v=vJG698U2Mvo&list=UUoUA -CpKaFCCV2Uz__qNJZw&index=9&feature=plcp 8 Interpretation There is no such thing as an uninterpreted sensation • We can’t help but try to “make sense” of our sense impressions (that’s what our brains are for!) • Many examples of people: – Missing things that should be noticed (selective attention) – Seeing things that aren’t there • Eyewitness testimony is always suspect
9 Interpretation: colour 10 Interpretation: length 3 11 Interpretation: movement 12 Interpretation influences • Some optical illusions are due to the physiology of our sense organs and brains, and are common to all people • Some are due to learned assumptions about the way the world works and hence differ between people – Two different people can look at the same thing and “see” different things – Example: Spinning Dancer • Some “illusions” are due to what we attend to 13 Closure We “fill in the gaps” to see what isn’t there (Closure) 4 http://en.wikipedia.org/wiki/The_Spinning_Dancer http://en.wikipedia.org/wiki/Principles_of_grouping#Closure 14 Figure-Ground (Attention)
By focusing on different parts of the scene, we “see” a different scene. 15 Interpretation influences • Physical, inherent characteristics of our sense organs and brains • Learned factors (products of experience) – Past personal experience – Influence of others: society & culture • Example: if I see a person from a distance with an androgynous body shape, but with long hair, I’ll probably “see” a woman 16 Sense-making • Our brains are essentially pattern-recognising machines: we try to fit new sensations into existing categories • This process is facilitated by recognising cues: defining (or indicative) attributes of categories • We use schemata (beliefs we have about things) and scripts (beliefs about the se- quences of actions) • We often use closure: see some cues and assume the rest are present (i.e. filling in the gaps: “seeing” things that aren’t there) 5
http://en.wikipedia.org/wiki/Schema_(psychology) http://en.wikipedia.org/wiki/Behavioral_script http://en.wikipedia.org/wiki/Principles_of_grouping#Closure 17 Awareness • To be “aware” of something means to be conscious of it, i.e. to be able to think about it, and to talk about it • We can perceive things of which we are not aware • Can be assessed by the effects of exposure to stimuli on our behaviour • A big topic (unconscious or subconscious cognition); we’ll explore it in detail in a later lecture 18 Subliminal perception • Scare in the 1950s (Vance Packard, The Hidden Persuaders) where it was claimed that showing ice-cream ads in a movie for one or two frames caused an increase in ice-cream sales (p. 41–42) • James Vicary reported experiments carried out in 1957 where “subliminal cuts”, i.e. sequences of frames (ads for popcorn: “Hungry? Eat Popcorn” & Coke” “Drink Coke”) lasting less than 0.003sec, were inserted into movies and resulted in significant sales increases for both Coke (18%) and popcorn (58%)
• Much experimentation has shown little, if any, real effect • Widely believed that Vicary’s experiments were either poorly done, or never carried out at all • However, our subconscious plays much more of a role in our behaviours than has pre- viously been thought 19 Summary of perception • Perception = Sensation + Attention + Interpretation • For perception to occur, the stimulus must be: – Above the relevant sensory threshold (absolute or differential) – Pass the selective attention barrier • We’ve seen some examples of physical influences on interpretation • Psychological and social factors also influence interpretation 20 Memory • Recall your answers to the questions at the start of the lecture, and see what the true answers are in what follows • Huge advances in the study of memory have been made in the last decade or so, due mainly to brain-imaging technology, mainly fMRI (functional Magnetic Resonance Imaging) 21 Different memory stores
• Short vs. long-term memory – Short-term memory usually believed to be able to hold 7±2 items of informa- tion (Miller, 1956) – Short-term memory can store information for a few seconds (up to about 30) • For marketing actions to have impact, must transfer to long- term memory—information overload hinders this process 6 http://en.wikipedia.org/wiki/James_Vicary http://en.wikipedia.org/wiki/Fmri http://en.wikipedia.org/wiki/The_Magical_Number_Seven,_Plus _or_Minus_Two http://en.wikipedia.org/wiki/Information_overload http://en.wikipedia.org/wiki/Information_overload 22 Long-term memory Two types of long-term memory: 1. Declarative: memories that can be consciously recalled and talked about, AKA explicit memory 2. Non-declarative, AKA Procedural memory, e.g. muscle memory Two types of declarative memory 1. Episodic: memories of events
2. Semantic: memories about the meaning of things, concepts etc. 23 Experimental evidence • Have you seen the movie Memento? Based on a real person: “Patient H.M.” (Henry Molaison) • Provided evidence that short and long-term memory are physically distinct systems in our brains, not just convenient theory • Was perfectly normal, except he couldn’t form new memories 24 Strategies for remembering • Rehearsing: repeating a stimulus, e.g. saying someone’s name when you’re introduced to them • Chunking: grouping items together (so that many items become one), e.g. instead of remembering that someone’s number is 0,2,7,x,x,x,x,x,x,x, it’s – {027}, {x,x,x},{x,x,x,x}, or – {Telecom}, {x,x,x},{x,x,x,x} • Mnemonic: e.g. Richard Of York Gave Battle In Vain • Biggest factor affecting long-term recall: testing soon after learning (more than once); see MemoryLab for more research 25 Influences on remembering
• Associative learning: can the new knowledge be linked to existing knowledge? How densely? • Consistency: Does it conflict with existing knowledge (cognitive dissonance)? • Competing demands on short-term memory or cognitive processes (distractions) – Promotional clutter: studies indicate that people (in the USA, mainly) are exposed to about 4,000–6,000 promotional messages per day 26 Example: Context shift Walking through doorways causes forgetting: People were asked to walk from table to table and pick up objects. They were later probed about what they remembered. There were two groups: in one the tables were all in the same room. In the other, they were spread across two rooms. People who had to walk from one room to another remembered less about what they had experienced. 7 http://en.wikipedia.org/wiki/Declarative_memory http://en.wikipedia.org/wiki/Procedural_memory http://en.wikipedia.org/wiki/Episodic_memory http://en.wikipedia.org/wiki/Semantic_memory http://en.wikipedia.org/wiki/Memento_(film)
http://en.wikipedia.org/wiki/HM_(patient) http://www.nytimes.com/2008/12/05/us/05hm.html?_r=1&page wanted=all http://www.nytimes.com/2008/12/05/us/05hm.html?_r=1&page wanted=all http://en.wikipedia.org/wiki/Mnemonic www.memorylab.org http://www.tandfonline.com/doi/full/10.1080/17470218.2011.57 1267 27 Long-term memory • Long-term memory encodes information semantically, i.e. symbolically, and most defi- nitely not as a 1:1 record of our sense impressions • We don’t recall our memories as a whole, rather we re- construct them from a limited set of features – Different types of memories are stored in different places in the brain (smells, sights, sounds, thoughts etc. are stored in different areas) and “stitched back” to- gether when recalled 28 Reconstructing memories People watched a video of a traffic accident. Different groups were asked different questions: • “How fast were the cars going when they hit each other?” • “How fast were the cars going when the smashed into each other?”
Those who heard “smashed” gave higher estimates of speed • Weeks later, they were asked whether there was broken glass at the scene. Those who heard “smashed” were more likely to say there was (there wasn’t). Source: Loftus and Palmer, 1974 29 Some consequences for marketing • Persuasive messages must break through several barriers to reach our consciousness and be remembered • Perception is relative to the initial stimulus: messages must be stronger (louder, brighter) than the context and competition (leads to promotional “arms race”) • The probability that something will be remembered is affected by many factors, each of which must be considered when designing promotional strategies and tactics 30 Summary • We are not aware of all we perceive • Memory is not like a video recorder (but we do have memories of which we are un- aware) • Basic limit to cognitive processing: the magical number 7±2 • Strategies for learning (chunking etc.)
• Memories can be influenced by the words used to evoke them; we can “remember” things that never happened 31 Key Concepts • Perceptual contrast • Selective attention • Perceptual illusions • Subliminal perception • Short-term and long-term memory • Influences on remembering 8 http://en.wikipedia.org/wiki/Reconstruction_of_automobile_dest ruction 32 Memory Beliefs Strongly Mostly Mostly Strongly Don’t Statement Agree Agree Disagree Disagree Know The testimony of one confident eye- witness should be enough evidence to convict a defendant of a crime 11 26 35 25 3 Human memory works like a video
camera, accurately recording the events we see and hear so that we can review and inspect them later 24 39 23 11 2 Once you have experienced an event and formed a memory of it, that mem- ory does not change 17 31 35 14 4 People generally notice when some- thing unexpected enters their field of view, even when they’re paying atten- tion to something else 27 50 18 2 2 All these statements are false, but a significant proportion of people believe them to be true (Si- mons & Chabris, 2011) 33 Activities 1. Reflect on how you learn new things Repetition? (Rote- learning) Association? Chunk- ing? Mnemonics? Mind-mapping? 2. Count how many promotional messages you encounter in one day. Think carefully about what a “promotional message” is. Hint: not just exhortations to buy. Includes anything designed to influence (a) attitude; and (b) recall. 34 Example Exam Questions
1. Explain the stages in the process from stimulus to retention in long-term memory, and the barriers along the way. Give examples. Examples given in the lectures, textbook or Wikipedia will not be marked. 2. Explain the how marketers can use what is known about how memory works to increase the probability that someone will recall their brand name when they are thinking of purchasing something in the relevant product category. 35 Next Time Topics • Beliefs, Attitudes and Values • Identity Preparation • Read the specified pages of the textbook (see course outline) • Read Possessions and the Extended Self, available on Blackboard (in the readings folder) 9 http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjour nal.pone.0022757 http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjour nal.pone.0022757 References
Loftus, E. F. & Palmer, J. C. (1974, October). Reconstruction of automobile destruction: an example of the interaction between language and memory. Journal of Verbal Learning and Verbal Behavior, 13(5), 585–589. doi:10.1016/S0022- 5371(74)80011-3 Miller, G. A. (1956). The magical number seven, plus or minus two: some limits on our capacity for processing information. Psychological Review, 63(2), 81–97. doi:10.1037/ h0043158 Simons, D. J. & Chabris, C. F. (2011, August 3). What people believe about how memory works: a representative survey of the U.S. population. PLoS ONE, 6(8), e22757. doi:10. 1371/journal.pone.0022757 10 AgendaTopic MapMemoryPerceptionPerception and awarenessThresholds of sensationAttentionInterpretationInterpretation: colourInterpretation: lengthInterpretation: movementInterpretation influencesClosureFigure-Ground (Attention)Interpretation influencesSense- makingAwarenessSubliminal perceptionSummary of perceptionMemoryDifferent memory storesLong-term memoryExperimental evidenceStrategies for rememberingInfluences on rememberingExample: Context shiftLong-term memoryReconstructing memoriesSome consequences for marketingSummaryKey ConceptsMemory BeliefsActivitiesExample Exam QuestionsNext Time assignment1/lecture notes/0113beliefs-attitudes-and-values-
notes(4).pdf BSNS 103: Marketing and Consumption Attitudes and Values John Williams [email protected] January 13, 2015 1 Agenda 1. Definitions • Beliefs • Opinions • Attitudes • Values 2. The influence of attitudes and values on behaviour 3. Questions about the assignment? (during the break) 2 Topic map Persuasion Evaluate Alternatives Usage & Disposal Recognise Need Get Information Pick Best Alternative
Implement Decision Motivation Perception, Memory Society, Culture Attitudes, Identity Situational Factors Satisfaction, Loyalty Value 3 Beliefs and opinions • A belief is a thought that we hold to be objectively true, i.e. we think that its truth does not depend on our belief – Example: Earth orbits the sun, not vice versa. – Closely connected with knowledge: justifiable true belief • An opinion is a thought that can’t be said to be true or false: you can only agree or disagree – Example: Pink Floyd was the greatest band of the twentieth century
1 mailto:[email protected] 4 Attitude • Exact definition of attitude is difficult: most widely accepted is a learned pre-disposition to respond to some attitude object – The object need not be physical, or “real”, e.g. Unicorns • One model widely used in CB is that attitudes have three components: 1. Cognitive (thinking) 2. Affective (feeling) 3. Conative (behaving) 5 The Tripartite model Stimuli A t t i t u d e
Affect Cognition Behaviour Sympathetic nervous system responses, verbal statement of affect Perceptual responses, verbal statements of belief Overt actions, Verbal statements concerning behaviour 6 The need for consistency • We seem to have an innate need to keep our thoughts (cognition), feelings (affect) and actions (behaviour) in some kind of harmony • There are many instances where we don’t do what we say (think), but in general we seem to be consistent • Early theory: Heider’s Balance Theory (Heider, 1946, 1958) 2 http://en.wikipedia.org/wiki/Fritz_Heider http://en.wikipedia.org/wiki/Balance_theory
7 Balance theory P o x + + + Peter likes Olivia Peter likes Brand X Olivia likes Brand X P o x - - + Peter dislikes Olivia Peter dislikes Brand X Olivia likes Brand X P o x - + - Peter dislikes Olivia Peter likes Brand X
Olivia dislikes Brand X P o x + - - Peter likes Olivia Peter dislikes Brand X Olivia dislikes Brand X P o x + - + Peter likes Olivia Peter dislikes Brand X Olivia likes Brand X P o x + + - Peter likes Olivia
Peter likes Brand X Olivia dislikes Brand X P o x - + + Peter dislikes Olivia Peter likes Brand X Olivia likes Brand X P o x - - - Peter dislikes Olivia Peter dislikes Brand X Olivia dislikes Brand X Balanced Triads Unbalanced Triads 8 Cognitive dissonance • The term Cognitive Dissonance was coined by Leon Festinger (1957); it refers to the phenomenon where we believe two (or more) contradictory things to be true.
• Arose from his study of a Doomsday cult: examined what happened to the beliefs of cult members when the prophecy failed. • In marketing it usually refers to post-purchase regret, i.e. where the actual experience of consuming the product is less satisfying than it was anticipated to be 9 Evaluating evidence • What do we do when confronted with evidence that conflicts with our beliefs and at- titudes? When this happens, dissonance is present and are motivated to reduce this discomfort. • We tend to give more weight to evidence that conforms to our existing beliefs and attitudes, and discount evidence that conflicts • Some research suggests that offering arguments is counter- productive: it only reinforces existing attitudes (Nyhan & Reifler, 2010) 10 Rationalisation • However some evidence is overwhelming (lack of Armageddon on the specified date) • We can rationalise quite dramatically. – Example: we want something, find we can’t have it, then decide we didn’t want it after all.
• Rationalisation also allows us to justify our actions, i.e. give reasons for behaviours, even though they may not be the real reasons – Example: men were shown photos of women and asked to pick the most attractive. Later they were asked to explain why they found the photos attractive. But the photos were switched and many did not notice. Some said “I prefer blondes” even though they had picked a brunette (Johansson, Hall, Sikström, & Olsson, 2005). 3 http://en.wikipedia.org/wiki/Cognitive_dissonance http://en.wikipedia.org/wiki/Leon_Festinger http://en.wikipedia.org/wiki/When_Prophecy_Fails http://en.wikipedia.org/wiki/Rationalization_(making_excuses) 11 Expectancy-value models The Expectancy-Value Theory was created by Martin Fishbein in the 1970s. A ∝ n ∑ i=1 biei • bi is the strength of belief that the object possesses attribute i • ei is the evaluation of attribute i, i.e. a favourable or
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assignment1Assignment 1 feedback notes.pdfFeedback from p.docx

  • 1. assignment1/Assignment 1 feedback notes.pdf Feedback from previous BSNS 103 assignments John Williams Notes from 2014 Many assignments suffered from one or more of three major flaws: 1. The Critical Reflection part was not critical. What many students wrote could be summed up as "I consume X because I like it", or "it makes me feel good" or "it satisfies a need", without examining why it makes them feel good, or why they have that need, and then critically examining those reasons (or considering short vs. long term effects). Very few discussed the impact of their own consumption on other people. 2. The research part did not show data that extended or complemented the figures or tables shown in lectures. Many students quoted figures in-text of snapshots in time, e.g. "in 2012 x % of y were z", rather than examining a trend, difference or relationship by showing a table or graph. Very few critically examined their sources. 3. Most worryingly, very few students incorporated theoretical material from the course. Those that did almost exclusively used Maslow and nothing
  • 2. else. This was particularly disappointing. Many students listed the ways in which their consumption makes them happy or well. This is entirely beside the point. Of course some of the things we consume and some of the ways in which we consume make us happy and/or well. But why do they make us happy or well? More importantly, what things do we consume make us unhappy or unwell? And if we know that, why do we still do consume them? As some students stated, we wouldn't consume things that didn't make us happy and/or well, would we? But plainly, some of us do, and some people claim that all of us do, at least some of the time. Almost no-one critically examined whether their superficial motivations and satisfactions were contributing to real, long-term well-being. Fewer than 10% of the class were willing to even consider the notion that they might be behaving "irrationally", at least some of the time, and even fewer explicitly examined the role of marketing and the media in that irrationality. Those that did usually discussed it in general terms (almost always quoting or paraphrasing Schor) rather than as it happened in their own life. It seems that most people did not really understand the theme of BSNS 103: • Some, or even most, of our seemingly rational consumption behaviour is actually a result of factors of which we are only dimly aware, if at all. Furthermore, things that give us a little
  • 3. bit of happiness when we do them may turn out to be not in our long-term best interests (consumption myopia). • Business people know this, and take advantage of our ignorance or unwillingness to face unpleasant or challenging truths. Only a very few students explicitly acknowledged and discussed this in any but the most general and superficial way. Those that did got the A grades, because they understood what was being said in lectures. No-one mentioned slave-labour like conditions in Asia used to supply Western consumption, in other words, how does our wonderful consumption lifestyle cause drastically reduced well-being for other people? (Or does it? Does it provide jobs and income, and well-being, that they would not have access to if it were not for globalisation?) Notes from 2013 Many students wrote about one or two aspects of their consumption, rather than all of it. Heaps wrote about Apple products, and many acknowledged they buy these products not because of their functional attributes, but by their ability to associate the user with an in-group. When discussing whether trends and relationships outlined in the lecture were true in NZ or today, almost all students only mentioned a couple of figures in-text, rather than showing a table or graph.
  • 4. A few people critically evaluated their sources, but only a handful went beyond “It's Government data / published in a reputable journal and therefore is trustworthy”. Only one person really looked closely at how some particular data were gathered and what they really represented. Many people used a lot of space simply repeating the assertions that have been made in lectures and associated readings, then saying whether they agreed with them or not. Very few people thought more than superficially about how their consumption affects those around them, and no-one realised that their own consumption makes them a “Jones” that others want to keep up with. In other words, self-indulgent, hedonistic consumption, and consumption aimed at group membership was only discussed in terms of the writer's well-being, and not the effect that it has on the well-being of others. Most disappointingly, however, is the fact that no-one, not one person, truly critically reflected on their own consumption. No-one truly and deeply questioned their own assumptions, and took steps to investigate whether they were justified. This is very disappointing. Other points • The assignment is about well-being, not happiness. Happiness is part of well-being, but is not the whole story
  • 5. • A point in time conveys no information about a trend • You say that consuming X gives you benefit Y. But others achieve benefit Y by consuming something other than X. So why and how do you get Y by consuming X? • How does your consumption contribute to social pressures, as opposed to you feeling pressure from others? • Of course some consumption increases well-being; and of course money buys happiness sometimes. But is more always better? And are these relationships always true? • Income and money is a means to an end (actually, multiple ends) and it is the ends that bring us happiness and well-being. But can those ends be met in other ways? Notes from 2014Notes from 2013Other points assignment1/Assignment 1 tips.pdf BSNS 103 Assignment One: Essay Tips John Williams If you read the essay instructions and marking sheet, hopefully you should realise that the essence of this assignment is critical thinking, which was covered in the first lecture. To re-cap and summarise, critical thinking means: • Identifying assumptions
  • 6. • Sorting out which assumptions are critical, and which are not (or more vs. less critical) • Figuring out how one could test whether those assumptions are true (and then doing so, if possible). Perhaps you will reach the conclusion that some assumptions can never be tested, i.e. we will always have to assume they are true. But then, does that mean that your conclusions are therefore also unverifiable? Does your “reasoned argument” revolve around one or more key premises that can never be proved to be true? • Apply this way of thinking to not only what other people say, but also what you say Both parts of the assignment (self-reflection and research) should be written in this mode, i.e. analysis, not just statements with no justification. Equally importantly, when you're writing your essay, bear in mind why we are asking you to do this task. Every university assignment essentially tests or develops two things: 1. That you've learned something from sitting in lectures, reading the assigned material and independent study 2. That you can communicate your knowledge, analysis and opinions in a formal academic manner So, get the mechanics of writing correct, i.e. spelling, punctuation, grammar and formatting
  • 7. (including citation and referencing), and also show that you've learned something by using concepts that have been covered in course (for example Maslow's theory of motivation, TPB, ELM, identity theory, socio-cultural theory, emotion & unconscious) The most common failings of past essays fall into two categories: 1. The student has not understood what is required 2. The student has not thought deeply about the topic To reiterate what I've been saying in lectures, BSNS 103 is different to many other courses. We are not looking for “regurgitation”; rather we are looking for analysis and independent thought that looks beyond the superficial. So, don't write an essay that essentially says, for example, “Shopping makes me happy” or “I chose an iPhone because its cool and all my friends have one”. These are starting points for analysis, not explanations. Why does shopping make you happy? And, do you do everything that your friends do? Do you buy all the same products? If so, why? If not, what's special about this one product or brand? And why is it special? And does it contribute to your well-being? If so, how? It should be clear that the majority of the essay should be your self-reflection. The research part is relatively easy, but you still need to apply critical thinking. For each piece of evidence you find, evaluate how trustworthy it is. See, for example, http://oil.otago.ac.nz/oil/module7.html.
  • 8. Most importantly, if any of what I've said or written is unclear, please just ask for clarification. You won't be bothering me: I love answering questions and helping people, plus, I get paid for it! http://oil.otago.ac.nz/oil/module7.html assignment1/Assignment One Grading Sheet.pdf BSNS 103 Marketing and Consumption Assignment One Grading Sheet This assignment is designed to assess your understanding of the material covered in the relevant lectures and assigned reading, and your research and critical thinking abilities. You were asked to consider the assertions made and evidence given in the lectures and reading on consumption, happiness and well-being, and then to do two things: (1) Reflect on whether these assertions hold true in your own life, and the lives of people you know well (2) Find and critically evaluate evidence relating to whether the trends and effects discussed in the lecture: (i) are true in New Zealand (or your home country, if you have not spent enough time in New Zealand to be able to answer this question) (ii) are true in the USA and/or UK today (as most of the data on
  • 9. trends in the lectures only went up to around 2000) There were many trends and relationships discussed in the lecture and assigned reading. We do not expect that you cover all of them. Choose and discuss one or two relationships or effects that interest you most, and one or two trends that interest you most. Concepts Poorly done or not done at all OK Done well Done really well The relationship between consumption and well-being in your own life, and the lives of others you know well Whether the relationships and trends discussed in the lecture are still true today OR Whether the relationships and trends discussed in the lecture were true in your home country Selection and discussion of sources shows critical thinking Self-reflection shows critical thinking Both parts employ relevant concepts relating to society, culture and social psychology as discussed in John’s lectures and assigned readings
  • 10. If you want feedback attach this sheet to the hard copy of your assignment as the final page. If you just want your grade, you don’t need to attach this sheet. Grades will be posted on Blackboard. BSNS 103 Marketing and ConsumptionAssignment One Grading Sheet assignment1/Course Outline.pdf COURSE OUTLINE Summer School, 2015
  • 11. Contents Paper Description and Aims ............................................................................................... ............... 4 Learning Outcomes ............................................................................................... ........................... 4 Teaching Staff ............................................................................................... ................................... 4 ............................................................................................... ........................................................... 4 Course Delivery ............................................................................................... .................................. 5 Expectations and Workload ............................................................................................... ............... 6 Blackboard ............................................................................................... ..................................... 6 Student Webmail ............................................................................................... ............................ 7 Assessment ............................................................................................... ......................................... 7
  • 12. Quality Assurance ............................................................................................... .......................... 9 Learning Outcomes................................................................................ ....................................... 9 Grading System ............................................................................................... ............................. 9 Dishonest Practice and Plagiarism ............................................................................................... 10 Course Calendar ............................................................................................... ................................ 10 Student Learning Support and Information .....................................................................................19 Student Charter ............................................................................................... ............................19 Guidelines for Learning at Otago ............................................................................................... ..19 Student Learning Centre ............................................................................................... ...............19 Library Support
  • 13. ............................................................................................... .............................19 Māori Student Support ............................................................................................... ................. 21 Pacific Islands’ Student Academic Advisor ................................................................................... 21 Disability Information and Support .............................................................................................. 21 Student Feedback ............................................................................................... ............................. 21 Class Representatives ............................................................................................... .................. 22 Concerns about the Course ............................................................................................... .......... 22 Disclaimer ............................................................................................... ........................................ 22 Policy on Student Internal Assessment ............................................................................................ 23 Policy for Special Consideration in Final Exams ............................................................................... 25
  • 14. Page 3 Paper Description and Aims The paper looks at the role of consumers and consumption in the creation of value and the ways in which the resulting relationships affect the nature and the conduct of business. It identifies key elements of the marketing mix, especially products, promotion and price and considers them in relation to the psychological, social and cultural elements of consumer behaviour. Summer School 0.15EFTS 18points Restriction: MART102 Learning Outcomes Upon successful completion of this paper, you should be able to culture’ comes into existence and how both firms and consumers co-create this culture
  • 15. concepts and processes that relate to needs and consumption behaviour roles of identity and social environment in consumption decisions and processes and not-for-profit exchange processes by using brands, products and service creation, promotion and pricing Teaching Staff Lecturer Name: Dr John Williams (lectures 1-11 and 23) Office: CO 6.32 Email: [email protected] Web: http://www.business.otago.ac.nz/marketing/staff/williamsj.asp Office Hours: Wednesdays 3:00-4:50pm Lecturer Name: Dr Leah Watkins (lectures 12-23) Office: CO 6.40 Email: [email protected] Web: http://www.business.otago.ac.nz/marketing/staff/watkinsl.asp Office Hours: Wednesdays 10:00 – 12:00pm
  • 16. http://www.business.otago.ac.nz/marketing/staff/williamsj.asp http://www.business.otago.ac.nz/marketing/staff/watkinsl.asp Page 4 Course Delivery Lecture Day/Time: Tuesdays 12:00 – 13:50 and Wednesdays 13:00 – 14:50 Room: CO 203 Tutorials: There will be no formal tutorials but consultation hours will be provided throughout the course on Wednesdays as specified above. Every week students must attend two 110 minute lectures per week. There are no tutorials. Course Calendar The course calendar (in this outline) details scheduling information. Note that this calendar may change as the course proceeds. Any changes will be announced at lectures and be detailed on Blackboard. Students are expected to prepare for and attend all classes to gain full benefit from the course
  • 17. These activities should be prepared for by reviewing information detailed on Blackboard and completing any assigned readings. Students unable to attend a lecture are expected to catch up on missed material. Unless stated otherwise, all aspects of the course are examinable. Expectations and Workload You are expected to do work outside the scheduled contact hours including reading, assignment preparation and group work (where appropriate). The University guidelines suggest students can expect to spend about two hours working per week, per three points, for a single semester paper. As BSNS 103 is an 18 point paper and this is Summer School, you should expect to spend up to 24 hours per week on this course. This includes lectures, course work and preparation. You should take personal responsibility to ensure you complete all necessary preparation and the required assignments. This includes making a commitment to, and being an active group member. In return you can expect staff involved in this paper to provide a supportive learning environment, appropriate resources, useful (and timely) feedback, and to be responsive to any questions. Course Learning Resources Text Book Information
  • 18. Primary textbook Solomon, Michael R. (2013) Consumer Behavior; Buying, Having, and Being, (10th Global Edition), Pearson. Blackboard Blackboard https://blackboard.otago.ac.nz/ provides you with access to course materials, class notices, and resources. Blackboard is used to email the whole class so it is important that you check your student email and Blackboard regularly. https://blackboard.otago.ac.nz/ Page 5 Student Webmail IMPORTANT - DO THIS NOW: Forward your University email address to an email address that you use regularly as follows: 1 Log into your StudentMail account using your student username and password 2 Click Cog button (top right corner) > Options 3 Under Account, select the Forward your email shortcut under the Short Cuts menu on the
  • 19. right side of the screen. 4 At the bottom of the screen, type in the email address you want your email to be forwarded to. You can also choose to have a copy of these emails kept on your StudentMail account, so please check the box if you would like this. 5 Click the Start forwarding link at the bottom of the page. Assessment All material presented is examinable (except where stated otherwise) by assignments and the final examination. All important assessment information such as due dates and times, content, guidelines and so on will be discussed at lectures and, where appropriate, detailed on Blackboard. Students are responsible for ensuring that they are aware of this information, keeping track of their own progress, and catching up on any missed classes. Assessment Due date % of final grade Assignment One: Critical Reflection (Individual) Friday 30 th
  • 20. January 5:00pm. Hard copy posted in 100 level Marketing box, Level 3 Commerce Building AND Electronic copy posted to Blackboard. 25% Assignment Two: Deconstruction Presentation (Pairs) Week beginning 9 th Feb (room and times to be advised) 15% Final Exam Room and time to be advised 60% Total 100% TERMS REQUIREMENT To be eligible to sit the final exam, students must complete both assignments and achieve an overall mark of at least 50% for internal assessment.
  • 21. http://www.otago.ac.nz/studentmail Page 6 Assessment Format -You are required to complete all pieces of internal assessment. No. Assessment % Due Date 1 Research and critical reflection on consumption and wellbeing This assignment is comprised of your reflection on your own consumption and the role it plays in your own wellbeing and the wellbeing of people you know; and also your research into whether the international trends discussed in lectures are similar to or different from what is happening in New Zealand. For the research part of the assignment you will need to find at least two published sources that provide evidence regarding the question, and to critically evaluate each source and then come to a conclusion. The assignment will be between 1,000 and 1,300 words in length and written in Times New Roman 12 point font, 1.5 line-spacing with margins of 2.5cm on all sides. Failure to
  • 22. adhere to these instructions will result in a loss of marks. Further guidance on this assignment will be given in lectures. It is not expected that this will be written in a formal essay style, but what is expected is that it will be clear, coherent and easy to read! Conventions related to grammar and spelling will be observed and marks will be deducted from assignments that fail to meet these minimum standards. 25 Deadline: 5PM, Friday 30 th January. Hard copy to be posted in 100 level Marketing box, Level 3 Commerce Building AND electronic copy posted to Blackboard. Your assignment is not submitted until it has been uploaded to Blackboard (as well as put into the mailbox) 2 Deconstruction presentation In pairs, you will choose two advertisements for competing
  • 23. products and present a deconstruction of them, which explains key message, execution, positioning and communication strategies. The presentation will take place in tutorials and will last eight minutes. You must give a one page summary for each advertisement to the marker. The summary should include; where the advertisement is from, the readership, and key features of the advertisement’s meaning. Marks will be awarded according to clarity, coherence and appropriateness of explanation. The advertisements must be from a print magazine that is no older than six months (you must provide the magazine in your presentation) and the products should be targeted at segments that you do not now, or in the next 10 years belong to. No Powerpoint presentations. 15 Week beginning 10 February. Rooms and times to be advised. 4 Final examination 60 Essay style, date & location to be advised. Page 7 Assignment Submission Procedure Please note that the Critical Reflection is to be handed in both
  • 24. as a hard paper copy and as an electronic document. The latter is to enable ease of collation and to allow the application of digital scanning software to prevent plagiarism. Results will be posted on Blackboard. Late submission of either will be dealt with according to the policy outlined at the end of the course outline – the assignment will not be considered submitted until both versions are received. Teaching staff do not have the technical expertise to deal with problems submitting assignments to Blackboard, so (a) do not leave this until the last minute; and (b) if you have any trouble, contact the ITS helpdesk immediately. Late Assignments Assignments received after the deadline and within 24 hours after the deadline will have 25% deducted from the available grade for the piece of assessment (i.e. 78% becomes 53%). Assignments received 24 hours and later than the deadline will not be marked. Referencing Style and Style Guide For this paper the referencing style is APA. Style guides are also available on the University Library website: http://www.library.otago.ac.nz/research/citation.html Quality Assurance At the Otago Business School we monitor the quality of student learning and your learning experience. Your assessed work may be used for assurance of learning processes, such as evaluating the level of achievement of learning outcomes, with the aim of improving the quality of
  • 25. our programmes. All material used for quality assurance purposes will be treated as confidential and the outcome will not affect your grades. Learning Outcomes Learning Outcome Critica l R e fle ctio n P re se n ta tio n E x a
  • 26. m culture’ comes into existence and how both firms and consumers co- create this culture, concepts and processes that relate to needs, decision and consumption behaviour, ibe and give examples of the roles of identity and social environment in consumption decisions and processes and not-for-profit exchange processes by using brands, products and service creation, promotion and pricing. Total 25% 15% 60%
  • 27. Page 8 Grading System The grading scheme used at Otago is: A+ 90-100 C+ 60-64 A 85-89 C 55-59 A- 80-84 C- 50-54 B+ 75-79 D 40-49 B 70-74 E <40 B- 65-69 Dishonest Practice and Plagiarism Students should ensure that all submitted work is their own. Plagiarism is a form of dishonest practice (cheating). It is defined as copying or paraphrasing another’s work and presenting it as one’s own. Any student found responsible for dishonest practice in any piece of work submitted for assessment shall be subject to the University’s dishonest practice regulations, which may result in serious penalties, including forfeiture of marks for the piece of work submitted, a zero grade for the paper, or in extreme cases, exclusion from the University. The University of Otago reserves the
  • 28. right to use plagiarism detection tools. Students are advised to inform themselves about University policies concerning dishonest practice and take up opportunities to improve their academic and information literacy. If necessary, seek advice from academic staff, or the Student Learning Centre. The guideline for students is available at this link: http://www.otago.ac.nz/study/plagiarism/ The Library resource on ethical use of information is available via this link: http://oil.otago.ac.nz/oil/module8.html Page 9 Course Schedule The substantive content of the course is delivered through the lecture programme. Details of, and support for, assignments will be provided in lectures and in consultation hours on Wednesdays.
  • 29. Week no. Date Lec. no. Topic/Modules Readings Assessment and other info 1 6 th Jan 1 Introduction To BSNS 103 Consumption & Happiness Material on Blackboard (Schor & Ch. 12 of John’s unfinished CB book)
  • 30. 2 Consumption & Wellbeing -control 7 th Jan 3 Consumer Behaviour pp. 232–260 pp. 94–101 4 Information Search pp. 40–63 pp. 65–92 2
  • 31. 13 th Jan 5 Beliefs, Attitudes & Values pp. 195–226 pp. 110–124 6 Identity -concept pp. 128–151 pp. 159–171 pp. 104–110 14 th
  • 32. Jan 7 Society, Culture & Lifestyle pp. 388–417 pp. 171–186 8 Choice ituational factors pp. 264–276 3 20 th Jan 9 Value & Pricing
  • 33. -creation of value pp. 278–279 10 Consumer Satisfaction Dissatisfaction Complaint behaviour pp.276–277 & 279 21 st Jan 11 Emotion and the Unconscious decision-making decision-making
  • 34. Blackboard (Ch. 9 of John’s book) and pp. 161 & 236 Page 10 4 27 th Jan 12 Communication Assignment 1: Research and critical reflection,
  • 35. due on Friday before 5PM. 13 Integrated Marketing Communication 28 th Jan 14 Brand Relationships 15 Communication Trends and Co- Creation 5 3
  • 36. rd Feb 16 Consumption and Marketing Management 17 Consumer and Market Research 4 th Feb 18 Culture, Consumption and Marketing
  • 37. Consumer Culture 6 10 th Feb 19 Consumer Counter Culture Deconstruction Presentations . Rooms and times to be advised. 20 No Logo 11 th
  • 38. Feb 21 Course Review Underpinning Philosophy Page 11 Student Learning Support and Information Student Charter http://www.otago.ac.nz/about/otago005275.html Guidelines for Learning at Otago http://hedc.otago.ac.nz/hedc/wp- content/uploads/2012/12/Guidelines-for-Learning.pdf http://hedc.otago.ac.nz/hedc/learning/
  • 39. Student Learning Centre The Student Learning Centre, which is part of the Higher Education Development Centre, provides learning support, free of charge, to ALL enrolled students. Their services include: their learning strategies and their generic skills; -line study skills advice; -led peer support programme for students of all ages and backgrounds. - English speaking background The Centre also provides two very helpful study guides, “Guidelines for Writing and Editing” and “Writing University Assignments” and these are available on the SLC website. http://hedc.otago.ac.nz/hedc/learning/ Library Support The University Library provides online resources for students. These include subject guides, and other research resources, and citation styles. Check it out at:
  • 40. http://www.otago.ac.nz/library/for/undergraduates/index.html The Library website http://www.library.otago.ac.nz/index.php provides online access to resources and services, including group room bookings, library hours and locations, past exam papers, subjects guides and more. From your mobile: http://m.otago.ac.nz/library/ http://www.otago.ac.nz/about/otago005275.html http://hedc.otago.ac.nz/hedc/wp- content/uploads/2012/12/Guidelines-for-Learning.pdf http://hedc.otago.ac.nz/hedc/learning/ http://hedc.otago.ac.nz/hedc/sld/Workshops.html http://hedc.otago.ac.nz/hedc/sld/Student-Leadership- Programme.html http://hedc.otago.ac.nz/hedc/sld/Student-Leadership- Programme/Peer-Support-Information.html http://hedc.otago.ac.nz/hedc/learning/ http://www.otago.ac.nz/library/for/undergraduates/index.html http://www.library.otago.ac.nz/index.php http://m.otago.ac.nz/library/ Page 12 Māori Student Support Tënā koutou katoa, Ko Corey Bragg töku ingoa Ko Ngāi Tahu, Kāti Mamoe, Waitaha me Ngāti Kahungunu öku
  • 41. iwi Kia ora, my name is Corey Bragg and I am the Māori student support person in the Business School. My role is to help link Māori students with the various support networks throughout the university and the community. Kaua e whakamā, don't be shy - come in for a chat. Mauri ora mai. Tel 479 5342 Email [email protected] Room CO 3.21 Pacific Islands’ Student Academic Advisor Warm Pacific Greetings Talofa lava, my name is Esmay Eteuati and my role is to liaise with Academic Departments and Student Services relating to Pacific students’ and their course of study. I support both staff and students in the Business School and have a network of Pacific contacts in other Divisions around the University. Tel +64 3 479 4756 Email: [email protected] Marketing Department support person for Maori/Pacific Island students is Mathew Parackal. Contact Mathew at the following: Tel 479 7696 Email: [email protected] Disability Information and Support Students are encouraged to seek support if they are having difficulty with their studies due to disability, temporary or permanent impairment, injury or chronic illness. It is important to seek help early, through one of the contacts below: Mathew Parackal Email: [email protected] Phone 479 7696
  • 42. Student Feedback We encourage your feedback. This can be in the form of contacting staff, participating in course evaluation surveys and communicating with class representatives. Continual improvements will be made to this course based in part on student feedback. Recent changes to this course as a result of constructive feedback include (insert summary of improvements) Class Representatives The class (or student) representative system is an avenue for encouraging communication and consultation between staff and students. It provides you with a vehicle for communicating your views on the teaching and delivery of the paper and provides staff with an opportunity to communicate information and gain constructive feedback from students. It contributes to the development of a sense of community within a department and it adds a further dimension to the range of support services offered to students.
  • 43. mailto:[email protected] mailto:[email protected] mailto:[email protected] mailto:[email protected] Page 13 Volunteers for the role of class representatives will be called early in the semester. The OUSA invites all class representatives to a training session, conducted by OUSA, about what it means to be a class representative and some of the possible procedures for dealing with issues that arise. They also provide information on the services that OUSA offers and the role OUSA can play in solving problems that may occur. The OUSA provides support to class representatives during the semester. Departmental staff will also meet with class representatives during the semester to discuss general issues or matters they wish to have considered. Your class representative’s name and contact details will be posted on Blackboard early in the
  • 44. semester. Concerns about the Course We hope you will feel comfortable coming to talk to us if you have a concern about the course. The Course Co-ordinator will be happy to discuss any concerns you may have. Alternatively, you can report your concerns to the Class Representative who will follow up with departmental staff. If, after making approaches via these channels, you do not feel that your concerns have been addressed, there are University channels that may aid resolution. For further advice or more information on these, contact the departmental administrator or head of department. Disclaimer While every effort is made to ensure that the information contained in this document is accurate, it is subject to change. Changes will be notified in class and via Blackboard. Students are encouraged to check Blackboard regularly. It is the student’s responsibility to be informed.
  • 45. Page 14 DEPARTMENT OF MARKETING Policy on Student Internal Assessment The purpose of this document is to have a consistent policy throughout the department as well as to develop students’ time management
  • 46. skills. It reflects usual practices in the business world in which neither success (here: grades) nor deadlines are negotiable. 1 Dissemination of Grades – Regarding internal assessment, class averages and distribution will be displayed graphically by letter grade for each piece of the assessment. The letter grade only will be returned to the student on their work. At the end of the semester, all internal assessment will be displayed by Student ID with the letter grades for each assignment. All students are requested to check these when posted on the web-based Blackboard – any discrepancies should be reported to the course coordinator as soon as possible. 2 Late Assignments – Assignments received after the deadline and within 24 hours after the deadline will have 25% deducted from the available grade for the piece of assessment (ie. a 78% becomes a 53%). Assignments received 24 hours and later than the deadline will not be marked and there will be no grade given. 3 Extensions – Extensions will be granted only in exceptional circumstances (eg. illness with supporting medical documentary evidence stating nature and length of impairment, family emergency, provincial or national representative activities) by the appropriate paper administrator. If the assignment or internal assessment tests count
  • 47. significantly towards the final result then a formal medical certificate is required. As a guideline, an internal assessment component which counts for 20% of the final result wo uld be considered significant. 4 Tutors and lecturers are not authorised to give extensions. Only the paper administrator should be approached (consult the course outline for the person(s) responsible). Computer problems do not constitute an exceptional circumstance unless it is an officially notified failure of university equipment. 5 Plagiarism – Plagiarism is the dishonest use of someone else’s words, facts or ideas, without proper acknowledgement. Most students will include other people’s ideas and information in their work and assignments - such material may be either quoted or digested and used by students. In either case, acknowledgement is essential. Note that the University of Otago Calendar under Student Conduct Rules Part 1 Section 1 (e) states that no student shall “engage in any dishonest practice as described in regulation 5(b) of the Examinations and Assessment Regulations in connection with an examination or other method of academic work which counts towards the attainment of a pass in any subject.” 6 Problems with group work – Where group work is set and a group is experiencing difficulties, the students should approach
  • 48. their tutor to try to resolve these differences. The tutor will counsel the group, or individuals from the group, on the pr ocedures open to them to resolve group problems (the problem should be raised prior to the work being completed or handed in). The procedure to be followed is: i) students should try to resolve the problems within the group without outside assistance. ii) students should meet with their tutor to endeavor to resolve outstanding issues. iii) the tutor will arrange for students to meet with the paper administrator who will endeavor to resolve the situation. This procedure MUST be completed to step iii) before the assignment is submitted for grading. Where there are still unresolved difficulties, step iv) will be implemented. iv) students will complete a ‘Peer Assessment’ form available from the appropriate paper administrator (which must be submitted to the tutor or paper administrator before any grades are released). Paper administrators reserve the right to require all students to complete peer assessment forms at any time during and/or af ter submission of an assessed group project. Should there be differences in the peer assessment forms, the student(s) will be required to either submit in writing to, or meet with a group comprised of their paper administrator and lecturer(s) and others (as deeme d
  • 49. appropriate) to provide an explanation for the discrepancy. A differential allocation of grade may result from this process. Page 15 DEPARTMENT OF MARKETING Policy for Special Consideration in Final Exams *** All applications for special consideration must be dealt with through the examinations office not the department **** The Special Consideration provisions apply only to final examinations and only where it is clearly documented that a candidat e has been prevented from taking an examination through illness or other exceptional circumstances beyond his or her control; or has been seriously impaired by illness or other exceptional circumstances beyond his or her control at the time of, or in the 14 day period imme diately prior to the examination itself. Where students have been affected by
  • 50. illness or other exceptional circumstances during the teaching period, they are expected to have informed Heads of Departments directly at the time (not individual lecturers or tutors). Process You need to obtain an application form from the University Information Centre or Student Health. You can also download the Application for Special Consideration in Final Examinations form Application for Special Consideration in Final Examinations form If your condition persists and you find that you are still seriously impaired for a later examination, do not submit a second application form, but contact the Examinations Office for advice (+64 3 479 8237). No special arrangements can be made for candidates who fail to attend examinations at the correct time. Deadline: Five calendar days from the date of the last examination for which you are making an application for Special Consideration. Please Note: Applications cannot be accepted without supporting documentation such as a medical certificate. For further information please see: Health Declaration for Special Consideration Application Absences
  • 51. 1 A student may be offered an aegrotat pass providing: a their grade for internal assessment is C+ or better and b the internal grade they have achieved has contained a significant element of individual work as opposed to group assignments (25% of the total grade for the paper). 2 All other cases will be offered a special examination. 3 In some cases that qualify for an aegrotat, it may be relevant to offer the student the choice of an aegrotat or a special examination. For example aegrotats at any stage of the course can have a detrimental effect on a student’s ability to qualify for scholarships. 4 Special examinations for Semester One 2014 will be held on (date to be arranged), in the week prior to Semester Two commencement. Special examinations for Semester Two 2014 will be held on (date to be arranged), two weeks after cessation of official examination period. Impaired Performance 1 If the student has no internal assessment there will be no
  • 52. adjustment to the exam mark and only an optional special will be offered. 2 If the student has internal assessment the examination mark may be adjusted by taking account of the discrepancy between the examination and internal marks, with particular attention to individual work for the student in comparison to that for the wh ole class. 3 In all other circumstances the student will be offered the choice of accepting this mark or sitting a special examination. 4 Once a student accepts to take a special examination the original examination mark is nullified and the result of the special examination replaces the original mark, even if it is lower. Any absence or impairment for the special examination must be covered using the same regulations as apply for normal university examinations. http://www.otago.ac.nz/services/uic.html http://www.otago.ac.nz/studenthealth http://www.otago.ac.nz/prodcons/groups/public/documents/webc ontent/otago001756.pdf http://www.otago.ac.nz/study/exams/Special%20Consideration% 20Health%20Declaration.pdf assignment1/lecture notes/0106consumption-and-happiness-
  • 53. notes(2).pdf BSNS 103: Marketing and Consumption Consumption and Happiness John Williams [email protected] January 6, 2014 1 Agenda • Introduction to the course • Concepts of well-being – subjective well-being – objective well-being • Influences on subjective well-being • Short film: excerpt from The Overspent American • Competitive consumption • The “new consumerism” 2 BSNS 103: Structure • 2 × 2-hour lectures per week: Tuesdays at noon; Wednesdays at 13:00 – with a 10 min break after ≈ 50 minutes • No tutorials, instead we have consultation hours: mine are Wednesdays 15:00–16:50 • Two assignments: one individual (25%), one group (15%)
  • 54. • Exam 60%, must get at least 50% on internal assessment to sit exam First assignment due 30 Jan: research and critical reflection on consumption and well-being (see course outline) 3 BSNS 103: Ethos Overall, the emphasis of this course is on: • Consumer behaviour theory • The social and cultural implications of consumption • The roles of consumer culture and popular culture in contemporary life • The relationship between consumer behaviour and marketing action In a critical and ethical framework 1 mailto:[email protected] 4 Critical thinking “Critical thinking” does not mean “criticising” in the sense of finding fault. Rather, it means: • Identifying the assumptions that underly a statement (or set of statements) • Evaluating whether each of them:
  • 55. – Are likely to be true – Can even be assessed (if so, how?) – Are critical to the statement(s) • Given the above, assessing the credibility of the statement(s) • Applying the same rigorous analysis to your own thinking and statements! 5 Happiness and well-being • Many happy people are not “well”, and vice versa • Most scholars argue that happiness should be measured something like: – “All things considered, how happy are you with your life?” • Well-being consists of happiness plus more “objective” measures,e.g. health, education, recreational opportunities, . . . – In other words, considering physical, mental and social health See, for example, the UK government’s attempt to quantify the well-being of their nation. 6 Attributes of happiness • Some people seem to be happy no matter what happens to them, and vice versa • We seem to have a “normal” level of happiness that we return to after short-term fluc- tuations (hysteresis) – Evidence that lottery winners are happier in the short term,
  • 56. then return to nor- mal (Brickman, Coates, & Janoff-Bulman, 1978) – Same for severe accident victims, even paraplegics (Bulman & Wortman, 1977) 7 Money doesn’t buy happiness (?) • “We were poor, but we were happy” — Money doesn’t buy happiness (?) • Money doesn’t buy happiness? Tell that to someone living on a benefit! • But there are plenty of rich people who are unhappy • Empirical evidence seems clear: at the low end, more money certainly does make people happier; but above a certain level it has no effect 2 http://www.ons.gov.uk/ons/guide-method/user-guidance/well- being/index.html 8 Income and happiness • Evidence from many sources that more income increases happiness up to a point, then it has no (or minimal) effect – Responses from the same person over time – Comparing different people in the same country – Within country over time – Comparing different countries at the same time
  • 57. • Most people in developed countries say they are reasonably happy and/or satisfied with their live 9 Evidence from the USA 3,000 5,000 7,000 9,000 11,000 13,000 15,000 1930 1940 1950 1960 1970 1980 1990 1991 100 0 20 40 60 80 Year
  • 60. s e lv e s a s v e ry h a p p y Personal income Percent very happy Image by MIT OpenCourseWare. Source: Myers and Diener (1995) 10 Influences If money doesn’t buy happiness, what does? Kawachi and Kennedy (2002, p. 30–31) sum- marize some of the main findings of this stream of research:
  • 61. • Age, sex and ethnicity seem to have little to do with happiness • Having a supportive network of close relationships seems to be very important • Having satisfying work and leisure is also highly related to happiness • The influence of income and wealth is mixed 3 11 Status • Status is the hierarchical position of a person or group in society, and includes both prestige and power • Even in “classless” societies (like NZ), some individuals and groups are clearly of higher or lower status • In the absence of knowledge, we infer the status of individuals from: – Material social markers (clothing, grooming, possessions, . . . ) – Social behaviours (manners, tone of voice, accent, education, polysyllabism, . . . ) Causes and consequences of status: “Different societies have awarded status to different groups: hunters, fighters,
  • 62. ancient families, priests, knights, fecund women. Increasingly, since 1776, status in the West . . . has been awarded in relation to financial achievement.” “The consequences of status are pleasant. They include resources, freedom, space, comfort, time and, as importantly perhaps, a sense of being cared for and thought valuable—conveyed by invitations, flattery, laughter (even when the joke lacks bite), deference and attention.” — Alain de Botton (2004, p. 3), Status Anxiety 12 Leisure We could now reproduce our 1948 standard of living [. . . ] of marketed goods and services in less than half the time it took in 1948. We actually could have chosen the four-hour day. Or a working year of six months. Or imagine this: every worker in the United States could now be taking every other year off from work, with pay — Juliet Schor (1991, p. 2) 13 Marriage Being married is one of the major sources of happiness, and yet. . . Year Married Divorced Single Widowed 1950 67 2 23 8
  • 63. 1960 68 2 22 8 1970 65 3 24 8 1980 63 6 24 7 1990 61 8 24 7 2000 59 9 26 6 Marriage and divorce statistics for the USA, 1950–2000 14 Causes and costs of divorce • Financial problems are a leading cause of divorce • Divorced people are, on average, worse off than married people, financially and physi- cally (shorter life expectancy) • Children of divorced couples are also worse off than children of married couples (Offer, 2006, Chap. 14). 4 http://en.wikipedia.org/wiki/Social_status 15 Mental disorders • In the USA, people born after 1955 are ten times more likely to suffer from depression as those born before 1915. • The rate of youth suicide has increased 300% since the 1960s. • Both mental disorder in general, and suicide in particular, are correlated with both the level and rate of increase of income per capita, both
  • 64. – across countries – within countries, over time (Offer, 2006, p. 347–350). 16 Film The Overspent American, by Juliet Schor. • This film discusses the influence of consumption on well- being in the USA. • It is available on DVD from the university library (O92818) • Core concepts: 1. The New Consumerism 2. The Aspirational Gap 17 The “new consumerism” • A few decades ago “keeping up with the Joneses” meant keeping up with your neigh- bours, i.e. others in your community • Then: – Women entered the workforce in much greater numbers post- WWII – Television became a fixture in almost every home • So, “the Joneses” were now Oprah Winfrey, Donald Trump, the Kardashians, . . . • If happiness is the difference between what we have and what we want, we suddenly
  • 65. became more unhappy 18 What is the “good life”? Item 1975 1991 % change What makes a good life? Vacation home 19 35 +84 Swimming pool 14 19 +36 Job that pays more 45 60 +33 Interesting job 38 38 0 Happy marriage 84 77 -8 What is a necessity? Second television 3 10 +233 Home air conditioning 26 51 +96 Source: Schor (1998) 5 http://otago.lconz.ac.nz/vwebv/search?searchArg=O92818&sear chCode=CALL%2B&searchType=1 19 The aspirational gap • The “Aspirational Gap” is the difference between what we want and what we can afford – We can either be unhappy/dissatisfied now and wait until we can afford it – Or we can get it now by taking on debt • If we take on debt, we have to work more to pay it off • This accelerates the work-and-spend cycle, and generates
  • 66. short-term rewards at the cost of long-term debt and associated stress 20 Positional consumption A sample of people were asked which of the following two worlds they would live in: A Your income is $50,000 and most other people earn $25,000 B Your income is $100,000 and most other people earn $250,000 You can assume that the purchasing power in each scenario is the same. • Which would you prefer? 21 Summary • Money doesn’t buy happiness, except in rare cases • But poverty can (almost) guarantee misery • Poverty is relative • Affluence can contribute to unhappiness through broad social trends, as well as directly through lack of self-control 22 Key concepts • Happiness and well-being, and what influences them • Competitive/positional consumption • The new consumerism • The aspirational gap
  • 67. 23 Activities 1. Consider your consumption over the last week. How has it contributed to your overall happiness? 2. What does “happiness” mean to you? What things make you happy? Which of these things can be bought? 3. Can you find statistics on income, wealth, happiness, marital status and mental illness in New Zealand covering the same or similar time periods as discussed in this lecture? If so, do they show the same trends? 4. Have a look at The World Database of Happiness for some ideas about happiness, and a summary (and details) of empirical evidence regarding correlates of happiness 6 http://worlddatabaseofhappiness.eur.nl/ 24 Example exam questions 1. “Money does not buy happiness.” Discuss. 2. What is, according to Juliet Schor, the “New Consumerism”? Discuss both what it is and how it came to be. What is the relationship between the aspirational gap and new consumerism?
  • 68. 3. It is usually assumed that more income and/or wealth makes people more happy. Dis- cuss some ways in which this might not be the case. References Brickman, P., Coates, D., & Janoff-Bulman, R. (1978). Lottery winners and accident victims: is happiness relative? Journal of Personality and Social Psychology, 36, 917–927. Bulman, R. J. & Wortman, C. B. (1977). Attributes of blame and ‘coping’ in the ‘real world’: severe accident victims react to their lot. Journal of Personality and Social Psychology, 35, 351–363. de Botton, A. (2004). Status anxiety. London: Penguin Books. Kawachi, I. & Kennedy, B. P. (2002). The health of nations: why inequality is harmful to your health. New York: The New Press. Myers, D. G. & Diener, E. (1995). Who is happy? Psychological Science, 6(1), 10–19. Offer, A. (2006). The challenge of affluence: self-control and well-being in the United States and Britain since 1950. Oxford: Oxford University Press. Schor, J. B. (1991). The overworked American: the unexpected decline of leisure. New York: Basic Books. Schor, J. B. (1998). The overspent American: upscaling, downshifting and the new consumer. New York: Basic Books.
  • 69. 7 AgendaBSNS 103: StructureBSNS 103: EthosCritical thinkingHappiness and well-beingAttributes of happinessMoney doesn't buy happiness (?)Income and happinessEvidence from the USAInfluencesStatusLeisureMarriageCauses and costs of divorceMental disordersFilmThe ``new consumerism''What is the ``good life''?The aspirational gapPositional consumptionSummaryKey conceptsActivitiesExample exam questions assignment1/lecture notes/0106consumption-and-wellbeing- notes(2).pdf BSNS 103: Marketing and Consumption Consumption and Well-being John Williams [email protected] January 6, 2014 1 Agenda 1. Increase in objective well-being since WWII 2. Consumption choices 3. The challenge of affluence 4. Distribution of material well-being 5. The costs of inequality 2 More goodies • The rise in material standard of living since (at least) WWII
  • 70. • TV, colour TV, flatscreen TV, HDTV, plasma TV, LCD TV, 3D TV, Ultra-HD, . . . • Computers, the Internet, mobile phones, smart phones, GPS, . . . • Cars: more powerful, comfortable, safe, fuel-efficient, . . . • Cheaper consumer goods due to “globalisation” 3 Health We’ve been getting healthier and living longer 1 mailto:[email protected] 4 Work • Change in hours and types of work • Post WWII, major gains in productivity were made • Some people predicted that we would be working 4-day weeks • Others claimed that the major problem of society would no longer be producing enough; but rather how to spend our leisure time! • It hasn’t quite worked out that way . . . 5 Affluence and self-control • Economic historian Avner Offer, in his book The Challenge of Affluence, writes that: Affluence leads to impatience, and impatience undermines well-
  • 71. being. — Avner Offer (2006, p. 1) • Long-term well-being requires balancing satisfying desires now, and providing for the satisfaction of desires in the future also • The increased pace of innovation under affluence erodes our ability to commit to other people, and our future well-being 6 Women and children last • Because we want more, we are more self-focused and less willing to compromise or sacrifice for others • Marriages are less likely and shorter due to stress of working and raising a family (and lower comittment) • Families are having fewer children (economic tradeoff), only children and children of divorced parents worse off • Women still bear the majority of the burden of home-making and child-rearing, even when they have high-status jobs 7 Obesity It’s an epidemic. Why, I wonder? . . . 2
  • 72. 8 Food waste • And yet about 50% of the world’s food production is wasted • About 30% of food production is rejected by supermarkets • In “developed” countries, about 30–50% of food purchased by consumers is wasted • While in less developed countries, millions go hungry Source: Institute of Mechanical Engineers (http://www.imeche.org/...) 9 Consumption choices At the broadest level, we can spend our incomes in four ways 1. Private consumption 2. Public consumption (i.e. taxes give governments money to provide public goods) 3. Savings 4. Leisure (i.e. we “buy” leisure by giving up income) In many developed economies, private consumption is “crowding out” all three other types of spending 10 Private vs. public consumption • As the aspirational gap widens, and the cycle of work-and- spend intensifies, many peo- ple are less willing to pay tax • Spending on public goods (schools, hospitals, libraries, public
  • 73. transport, cycle lanes, . . . ) is falling in many countries • “Urban decay” a major problem in some cities, especially in the USA 11 Savings Country 1970s 1980s 1990–1992 Japan 25.6 20.9 23.0 Germany 15.1 11.6 12.4 France 17.1 9.0 8.7 Italy 16.4 11.2 7.6 USA 9.1 5.2 2.5 Net savings as a percentage of national income Kawachi and Kennedy (2002, p. 81) cite further evidence that by 1998 the personal savings rate in the US was 0.5%, and in July 2000 hit a post-WWII low of −0.2%. 12 Leisure • Longer work hours mean less leisure time • More stressful life means we are able to enjoy our leisure time less • Leisure has also become more expensive, as we choose more expensive leisure activities and holidays • Many professionals expected to be contactable during “holidays”, and/or feel discon- nection anxiety
  • 74. 3 http://www.imeche.org/knowledge/themes/environment/global- food?WT.mc_id=HP_130007 13 Society and community • General dissolution in “community” and “society” (according to some critics) • People staying in jobs and houses for a far shorter time than previously • Less of a sense of commitment to communities, falling rates of volunteer work and charitable donations 14 Trust in institutions Institution 1966 1973 1986 The military 61 40 36 Higher education 61 44 34 Medicine 73 57 33 Supreme court 50 33 32 TV news 41 27 Religion 41 36 22 Congress 42 21 Local government 28 21 The press 29 30 19 White House 18 19 State government 24 19 Federal government 41 19 18 Major companies 55 29 16 Law firms 24 14
  • 75. Trade unions 22 20 11 15 Mental health • General mental health problems • Rise in mental illness, especially depression – Each generation born since WWII has experienced higher rates of depression – Those after born WWII are ten times more likely to experience depression than those born before (Cross-National Collaborative Group, 1992) • Rate of youth suicide increased 300% since the 1960s, and highly correlated with both level and rate of increase of personal income (Offer, 2006, p. 350) 16 Are we gonna take it? The incomes of the top 1% are growing very rapidly, and even growing during the GFC while the rest of us are suffering . . . 4 17 Income and wealth inequality The upper 1 percent of Americans are now taking in nearly a quarter of the nations income every year. In terms of wealth rather than income, the top 1
  • 76. percent control 40 percent. Their lot in life has improved considerably. Twenty- five years ago, the corresponding figures were 12 percent and 33 percent. . . . While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous—12 percent in the last quarter-century alone. All the growth in recent decades—and more—has gone to those at the top. — Joseph Stiglitz (2011) 18 Top 1% incomes in the USA and NZ 1920 1940 1960 1980 2000 8 1 0 1 2 1 4 1 6 1
  • 77. 8 2 0 Year % 1920 1940 1960 1980 2000 6 8 1 0 1 2 1 4 Year % Share of income earned by the top 1% in the USA (top) and NZ (bottom) 19 Even the rich pay • The USA is one of the most unequal societies in the world • It also has some of the worst health outcomes of the “rich” countries
  • 78. • Even amongst the highly educated and wealthy people Source: Woolf and Aron (2013), see a short summary here • Inequality drives crime, which the wealthy also suffer from, directly and indirectly 20 Schor’s analysis Schor (1998): The “new consumerism” due to, driven by women entering the workforce, less social contact and more TV • Stretching reference groups • Private spending crowding out public spending (lower willingness to pay tax) • indicators of real social well-being began to diverge from GDP in the mid 1970s (Schor, 2000, p. 451) 5 http://finance.yahoo.com/news/u-lags-peers-life-expectancy- 021000978.html 21 Consumption myopia Back to decision-making: • In general, we are very bad at trading off short-term gain for long-term pain (e.g. smok- ing, eating, . . . ) • That is why affluence is bad for well-being: we are like kids in a candy store
  • 79. • Studies show that young children who can delay gratification are more successful in later life 22 The elephant in the room The costs of affluence are not simply a matter of individual well-being: – Climate change – Peak oil – Peak water – etc. Two major problems: 1. Resource depletion 2. Waste disposal Issues of sustainable civilisation, not “merely” individual well- being or social justice 23 Role of marketing – Philosophy of business: growth vs. enough (maximization vs. optimization) – Triple bottom line: * from Profit alone * to Profit, People, Planet – You are our hope for the future: when you are a marketer, how will you act? – What will you say to academics who tell you the goal of
  • 80. business is maximising shareholder wealth; or “the business of business is business”? 24 Role of consumers What is the role of consumers? – If businesses won’t act ethically, what can consumers do? – If consumers won’t act ethically, what can governments do? – Will a government that forces ethical consumption get (re) elected? As consumers, no-one is coming to save us. It’s up to us to save ourselves – Reduce, re-use, recycle. Reduce is best. – Don’t think of it as self-denial, think of it as liberation 6 25 Summary – We’re better off in some ways, worse of in other ways – Affluence is not all bad, but can have some negative outcomes on well-being, mainly due to lack of self-control and myopia – “New consumerism” is the cycle of work-and-spend; the aspirational gap and in- creased debt/decreased savings – Inequality hurts the poor most, but even the rich pay the costs
  • 81. of inequality 26 Key concepts – Happiness and well-being – Affluence and impatience – Income and wealth inequality – Costs of affluence to individuals, society and humankind as a whole 27 Activities – Almost all of the evidence for the propositions in this lecture was from the USA and UK. Can you find any evidence that the same thing is happening in New Zealand? – Identify the areas in your life where you wish you had more self-control – For each of those areas, what contributes to your lack of self- control, and what can you do about it? – Read the interview with Avner Offer (Offer, 2007) and decide whether you agree with his ideas 28 Example exam questions – What, according to Avner Offer, is “the challenge of affluence”? Do you agree or disagree with his assertion and reasoning? Why or why not? – What are the costs of inequality? Discuss the costs to those at
  • 82. both the bottom and the top of the income and wealth continuum. – Does recognition of the down-sides of affluence, and a drive to reduce consump- tion, threaten our national well-being? Why or why not? 7 http://www.jstor.org/stable/40722436 References Cross-National Collaborative Group. (1992). The changing rate of major depression: cross-national comparisons. Journal of the American Medical Association, 268, 3098–3105. Kawachi, I. & Kennedy, B. P. (2002). The health of nations: why inequality is harmful to your health. New York: The New Press. Offer, A. (2006). The challenge of affluence: self-control and well-being in the United States and Britain since 1950. Oxford: Oxford University Press. Offer, A. (2007). The challenge of affluence. Challenge, 50(2), 6–19. Retrieved January 1, 2015, from http://www.jstor.org/stable/40722436 Schor, J. B. (1998). The overspent American: upscaling, downshifting and the new con- sumer. New York: Basic Books.
  • 83. Schor, J. B. (2000). Towards a new politics of consumption. In J. B. Schor & D. B. Holt (Eds.), The consumer society reader (Chap. 26, pp. 446–462). New York: The New Press. Stiglitz, J. E. (2011, May). Of the 1%, by the 1%, for the 1%. Vanity Fair. Retrieved January 18, 2013, from http://www.vanityfair.com/society/features/2011/05/top- one-percent-201105 Woolf, S. H. & Aron, L. (Eds.). (2013). U.S. health in international perspective: shorter lives, poorer health. Washington, DC: The National Academies Press. Retrieved from http://www.nap.edu/openbook.php?record id=13497 8 http://www.jstor.org/stable/40722436 http://www.vanityfair.com/society/features/2011/05/top-one- percent-201105 http://www.vanityfair.com/society/features/2011/05/top-one- percent-201105 http://www.nap.edu/openbook.php?record_id=13497AgendaMor e goodiesHealthWorkAffluence and self-controlWomen and children lastObesityFood wasteConsumption choicesPrivate vs. public consumptionSavingsLeisureSociety and communityTrust in institutionsMental healthAre we gonna take it?Income and wealth inequalityTop 1% incomes in the USA and NZEven the rich paySchor's analysisConsumption myopiaThe elephant in the roomRole of marketingRole of consumersSummaryKey conceptsActivitiesExample exam questions assignment1/lecture notes/0107decision-making-notes(2).pdf
  • 84. BSNS 103: Marketing and Consumption Decision making John Williams [email protected] January 7, 2014 1 Agenda 1. What is Marketing? 2. What is Consumer Behaviour? 3. Who are consumers, and what is consumption? 4. How do we choose what to consume? (Decision-Making) 5. Why do we consume? (Motivation) 2 Marketing Marketing is not selling! Nor is it advertising. • “Marketing”, in academia, means (roughly) “all the activities that go into figuring out what consumers want and giving it to them”, – usually at a profit – always in a competitive environment Includes business strategy, market research, product design, pricing, advertising, branding, logistics (storage and delivery), sales, after-sales service, . . . • Four Ps: Product, Price, Promotion, Place
  • 85. 3 Academia vs. the real world • In colloquial discourse “marketing” is often newspeak for “selling” – or advertising, or advertising + selling • Many (unenlightened) business people see Marketing as a “business function”, like HR or ICT • In academia, Marketing is a business philosophy (the “Marketing orientation”) that claims the One True Way to business success is to start with customer desires – Preceded by “Production orientation” and “Selling orientation” 1 mailto:[email protected] 4 Consumer behaviour • Consumer Behaviour is the study of why and how we make choices about the products we consume – Why: so business people can provide products that better meet the needs of con- sumers (and in a better way: better pricing, promotion and distribution) – Also to influence choice of product category and brand
  • 86. • Multidisciplinary: including economics, psychology, sociology, anthropology, neuro- science, . . . 5 History of study • “Consumer Behaviour” was, for a long time, applied social psychology in the context of business, especially attitudes and attitude change – In the 1980s the influence of sociology and anthropology manifested in the mar- keting journals – In this millennium cognitive science is gaining popularity • Social psychology seems to be still the dominant (but not exclusive) paradigm 6 Who are consumers? • We all are, of course! – How strange that some authors refer to consumers as “they”, rather than “we”! • But it’s not all we are: just one role among many: student, friend, flatmate, child, sibling, . . . • But a role that everyone plays, if “consumption” is not equated with “buying” 7 What is consumption? • Not the same as “buying” – To “consume” means “to use up”, but we don’t always do that
  • 87. – Probably “use” or “experience” would be better words than “consume” • The textbook lists some categories of things that are consumed (pp. 31–32): – Physical products – Services – Ideas – Experiences 2 http://en.wikipedia.org/wiki/Consumer_behaviour http://en.wikipedia.org/wiki/Economics http://en.wikipedia.org/wiki/Psychology http://en.wikipedia.org/wiki/Sociology http://en.wikipedia.org/wiki/Anthropology http://en.wikipedia.org/wiki/Neuroscience http://en.wikipedia.org/wiki/Neuroscience 8 What are products? Product: “. . . anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need. It includes physical objects, services, persons, places, organizations and ideas.” — Michael Saren (2004, p. 95) • Note: products are not just physical objects but goods and services
  • 88. • Note: consumption is not the same as buying • When we buy something, there’s normally more to it than the ‘core’ product – Upgrades, e.g. more RAM or storage in a computer – Add-ons, e.g. screen protector for a cell-phone – Guarantee – After-sales service, help-lines, etc. – Manual, instructions • The ancillary aspects may or may not be consumed, e.g. warranty claim 9 Buying vs. consuming “In the factory we make cosmetics; in the stores we sell hope.” — Charles Revson, CEO of Revlon • What is bought vs. what is consumed, e.g. breakfast at a nice café • Question: what are you consuming when you get a coffee from Starbucks? 10 Means and ends “No-one wants a 14 -inch drill; they want a 1 4 -inch hole!” — Peter Drucker, Management guru. • Some things are “obviously” a need or a want (e.g. food vs. a PS4); but often the distinction is not clear (e.g. a phone)
  • 89. • In general, not useful to distinguish between wants and needs (for consumer behaviourists) 11 Identity, society & culture • We buy and consume products to maintain not only our physical selves; but also our social selves (how we stand in relation to others) • Fashion is self-expression, but so too is buying Organic Fair- Trade green tea, or Tiger tea. • We’ll be looking at these issues in greater depth later in the course 12 Decision-making What is the process we go through when we make consumption decisions? • Rational? • Emotional? • Impulsive? • Compulsive? 3 13 Influences on consumption • Characteristics of individual: physical and mental
  • 90. • Influence of others: family, friends, acquaintances, “community”, “culture”, “society” • Actions of other parties in exchange relationships and transactions – Manufacturer / Service Provider / Brand Owner – Marketing intermediaries Environmental - Economic - Technological - Political - Household type - Reference group - Roles and status Psychological Buyer decision process Source: Kotler, Brown, Burton, Deans & Armstrong (2010: 205) - Product category selection - Brand selection - Reseller selection - Purchase and repurchase timing - Purchase quantity - Marketing objectives - Marketing strategy - Marketing mix
  • 91. - Age and life-cycle stage - Occupation - Economic situation - Motivation - Perception - Learning (memory) - Beliefs & Attitudes - Personality and Self-Concept Cultural Societal Buyer Response Marketing Consumer Lifestyle Personal - Culture - Subculture - Social class 14 From needs to consumption Use, Disposal Need recognition Information Search
  • 92. Option Evaluation Choice Behaviour 4 15 A more detailed view Persuasion Evaluate Alternatives Usage & Disposal Recognise Need Get Information Pick Best Alternative Implement Decision Motivation Perception, Memory Society, Culture Attitudes,
  • 93. Identity Situational Factors Satisfaction, Loyalty Value 16 Needs (or motivations) Most famous theory of motivation: Maslow’s hierarchy of needs Physiological Safety Belongingness & Love Esteem Self- actualisation Fulfillment: creativity, motherhood, athleticism, ... From self and others: strength, independence, freedom, status, fame, ... Friends, partner, children, family, social groups, ... Food, water, warmth, sleep, sex, ... Freedom from fear, need for order, ...
  • 94. 17 Maslow’s Hierarchy Basic premises: • Once a “lower-order” need has been satisfied, the next higher need becomes a motivator • In developed economies, the top three classes of needs are most active • Most motivation is unconscious Common misunderstanding: • Lower-order needs must be satisfied in order for higher-order needs to become active • He never wrote this, and actually stated the opposite! 5 http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs 18 Fundamental Drives • Consider humans as organisms: – Seek pleasure and avoid pain – Seek reward with minimum effort – Repeat behaviours that fulfill these drives (i.e. learn) – . . . • What proportion of our daily choices could be “explained” by these basic observations? – Need / desire recognition – Choice behaviour (act or not; what to choose)
  • 95. 19 Explanations? Exchange Actor Product Category (Sociology / Economics) Human (Anthropology / Psychology) Animal / Mammal (Zoology) Organism (Biology) EA Brand (Marketing) 20 Rewards • A “reward” is a physiological response to stimulus (including own behaviour) that in- creases probability of behaviour – “Natural” or “Primary” rewards include those necessary for survival of the indi- vidual and the species * Mnemonic: the Four Fs: feeding, fleeing, fighting and (ahem) mating – “Secondary” rewards are valued for their ability to gain
  • 96. primary rewards, e.g. money, beauty, . . . • Again, what proportion of CB could be explained by this view? 21 The Subconscious Some claims that have been made in the CB (and other) literature: • Most of our motivations are subconscious • Many of our decision processes are subconscious • Many of our consumption decisions are more emotional than “rational” • Some decisions are conscious and “rational”, but probably not as many as we would think 6 22 Reason and Emotion • What proportions of our CB choices are determined, or at least influenced, by emotion? • Claim: so-called “rational” thinking or behaviour cannot occur without emotional input – All our rationality rests on unjustified or unjustifiable assumptions of what is good — result of emotional evaluation
  • 97. • We’ll get into this in a later lecture 23 Some ethical considerations . . . Some big questions around marketing and consumption: • Does “normal” (i.e. non-compulsive) consumption harm our well-being? • How much or our consumption choices are due to conscious exercise of “free will” vs. “manipulation”? – Or other things, e.g. unconscious processes, habits, . . . If the answers to the above are “yes, at least sometimes”, and “quite a bit”, then: Is marketing evil? • I have opinions on these questions, but your opinion is what I want to hear! 24 Summary • Consumer behaviour is the study of consumers and consumption, but not only behaviour (confusing, eh?) • Can be for the purposes of helping marketers and other business people • Can be also a legitimate field of study for its own sake, like philosophy, classics or fine arts • Most, but certainly not all, of our motives and decision processes are emotional and/or
  • 98. unconscious 25 Key concepts 1. Consumption and consumer 2. Product 3. Consumer decision process 4. Maslow’s hierarchy of needs 5. Fundamental drives 7 26 Activities 1. Recall the last five food or drink purchases you made. To what degree were they in- fluenced by habit, a heuristic, or a conscious choice where you evaluated two or more alternatives? 2. Recall your most recent purchase today • Was your choice based on brand? • What drove (a) the need to consume; and (b) the item purchased? (Organism, Animal, Human, Exchange Agent, Brand Chooser?) 3. Recall your most recent purchase over $500 • Answer same questions as above
  • 99. 27 Possible explanations • What roles do these motivations play? 1. Survival of the organism 2. Survival of the species (reproduction, sexuality) 3. Minimising pain and maximising pleasure 4. Social display 5. Ethical imperatives • Did marketing actions address these motivations? If so, how? – If not, what did they address? 28 Example exam questions 1. Explain the major elements of Maslow’s Hierarchy of Needs and discuss its how it could be used when designing an advertising campaign for a food product. 2. What are the four “primary” drives, and how to they differ from secondary needs? Do you think that these four primary needs are really fundamental to all or most consumer behaviour? Why or why not? References Saren, M. (2004). Marketing graffiti: the view from the street. Amsterdam: Elsevier. 8
  • 100. AgendaMarketingAcademia vs. the real worldConsumer behaviourHistory of studyWho are consumers?What is consumption?What are products?Buying vs. consumingMeans and endsIdentity, society & cultureDecision-makingInfluences on consumptionFrom needs to consumptionA more detailed viewNeeds (or motivations)Maslow's HierarchyFundamental DrivesExplanations?RewardsThe SubconsciousReason and EmotionSome ethical considerations …SummaryKey conceptsActivitiesPossible explanationsExample exam questions assignment1/lecture notes/0107perception-and-memory- notes(2).pdf BSNS 103: Marketing and Consumption Perception and Memory John Williams [email protected] January 8, 2014 1 Agenda 1. Perception and attention 2. Memory 2 Topic Map Persuasion Evaluate Alternatives Usage & Disposal Recognise Need
  • 101. Get Information Pick Best Alternative Implement Decision Motivation Perception, Memory Society, Culture Attitudes, Identity Situational Factors Satisfaction, Loyalty Value 3 Memory Here’s some statements about human memory. Which do you believe to be true? 1. Human memory works like a video camera, accurately recording the events we see and hear so that we can review and inspect them later 2. Once you have experienced an event and formed a memory of it, that memory does not
  • 102. change 3. People generally notice when something unexpected enters their field of view, even when they’re paying attention to something else 4. The testimony of one confident eyewitness should be enough evidence to convict a defendant of a crime 1 mailto:[email protected] 4 Perception Physical stimulation of the five senses, interpreted by the brain 1. Sight: we rely on it for the vast majority of our information about our surroundings 2. Hearing: music is especially useful to marketers 3. Smell: can be incredibly evocative (the area of the brain that processes smell is right next to hippocampus, which is involved in memory) 4. Taste: can invoke intense pleasure (but is largely smell!) 5. Touch: can increase involvement (“Try it on!”) 5 Perception and awareness Sensation Perception
  • 103. Attention Interpretation Stimulus Awareness Memory Selective Attention (e.g. Visual Clutter) Conscious/Subconscious Interesting/Useful? ? Thresholds of Sensation 6 Thresholds of sensation • Absolute thresholds, e.g. sound: 20 µ Pa; vision: 9 photons (!) • Differential thresholds, e.g. Just Noticeable Difference (JND): the minimum difference between two stimuli (e.g. two sounds) that a person can detect • Weber’s Law: d p = k dSS , where d p is the change in perception, dS the change in stim- ulus, S is the value of the initial stimulus, and k is a constant that is determined experi- mentally – i.e. Perceptual contrast: perception is relative to context
  • 104. (“initial stimulus”) of sensation 7 Attention • Strictly speaking, we perceive much more than we are aware of • We filter out irrelevant, uninteresting or inconsistent sensations • We give our attention to only a small fraction of our sensations: selective attention • Example: count the number of passes in a basketball game 2 http://en.wikipedia.org/wiki/Weber-Fechner_law http://www.youtube.com/watch?v=vJG698U2Mvo&list=UUoUA -CpKaFCCV2Uz__qNJZw&index=9&feature=plcp 8 Interpretation There is no such thing as an uninterpreted sensation • We can’t help but try to “make sense” of our sense impressions (that’s what our brains are for!) • Many examples of people: – Missing things that should be noticed (selective attention) – Seeing things that aren’t there • Eyewitness testimony is always suspect
  • 105. 9 Interpretation: colour 10 Interpretation: length 3 11 Interpretation: movement 12 Interpretation influences • Some optical illusions are due to the physiology of our sense organs and brains, and are common to all people • Some are due to learned assumptions about the way the world works and hence differ between people – Two different people can look at the same thing and “see” different things – Example: Spinning Dancer • Some “illusions” are due to what we attend to 13 Closure We “fill in the gaps” to see what isn’t there (Closure) 4 http://en.wikipedia.org/wiki/The_Spinning_Dancer http://en.wikipedia.org/wiki/Principles_of_grouping#Closure 14 Figure-Ground (Attention)
  • 106. By focusing on different parts of the scene, we “see” a different scene. 15 Interpretation influences • Physical, inherent characteristics of our sense organs and brains • Learned factors (products of experience) – Past personal experience – Influence of others: society & culture • Example: if I see a person from a distance with an androgynous body shape, but with long hair, I’ll probably “see” a woman 16 Sense-making • Our brains are essentially pattern-recognising machines: we try to fit new sensations into existing categories • This process is facilitated by recognising cues: defining (or indicative) attributes of categories • We use schemata (beliefs we have about things) and scripts (beliefs about the se- quences of actions) • We often use closure: see some cues and assume the rest are present (i.e. filling in the gaps: “seeing” things that aren’t there) 5
  • 107. http://en.wikipedia.org/wiki/Schema_(psychology) http://en.wikipedia.org/wiki/Behavioral_script http://en.wikipedia.org/wiki/Principles_of_grouping#Closure 17 Awareness • To be “aware” of something means to be conscious of it, i.e. to be able to think about it, and to talk about it • We can perceive things of which we are not aware • Can be assessed by the effects of exposure to stimuli on our behaviour • A big topic (unconscious or subconscious cognition); we’ll explore it in detail in a later lecture 18 Subliminal perception • Scare in the 1950s (Vance Packard, The Hidden Persuaders) where it was claimed that showing ice-cream ads in a movie for one or two frames caused an increase in ice-cream sales (p. 41–42) • James Vicary reported experiments carried out in 1957 where “subliminal cuts”, i.e. sequences of frames (ads for popcorn: “Hungry? Eat Popcorn” & Coke” “Drink Coke”) lasting less than 0.003sec, were inserted into movies and resulted in significant sales increases for both Coke (18%) and popcorn (58%)
  • 108. • Much experimentation has shown little, if any, real effect • Widely believed that Vicary’s experiments were either poorly done, or never carried out at all • However, our subconscious plays much more of a role in our behaviours than has pre- viously been thought 19 Summary of perception • Perception = Sensation + Attention + Interpretation • For perception to occur, the stimulus must be: – Above the relevant sensory threshold (absolute or differential) – Pass the selective attention barrier • We’ve seen some examples of physical influences on interpretation • Psychological and social factors also influence interpretation 20 Memory • Recall your answers to the questions at the start of the lecture, and see what the true answers are in what follows • Huge advances in the study of memory have been made in the last decade or so, due mainly to brain-imaging technology, mainly fMRI (functional Magnetic Resonance Imaging) 21 Different memory stores
  • 109. • Short vs. long-term memory – Short-term memory usually believed to be able to hold 7±2 items of informa- tion (Miller, 1956) – Short-term memory can store information for a few seconds (up to about 30) • For marketing actions to have impact, must transfer to long- term memory—information overload hinders this process 6 http://en.wikipedia.org/wiki/James_Vicary http://en.wikipedia.org/wiki/Fmri http://en.wikipedia.org/wiki/The_Magical_Number_Seven,_Plus _or_Minus_Two http://en.wikipedia.org/wiki/Information_overload http://en.wikipedia.org/wiki/Information_overload 22 Long-term memory Two types of long-term memory: 1. Declarative: memories that can be consciously recalled and talked about, AKA explicit memory 2. Non-declarative, AKA Procedural memory, e.g. muscle memory Two types of declarative memory 1. Episodic: memories of events
  • 110. 2. Semantic: memories about the meaning of things, concepts etc. 23 Experimental evidence • Have you seen the movie Memento? Based on a real person: “Patient H.M.” (Henry Molaison) • Provided evidence that short and long-term memory are physically distinct systems in our brains, not just convenient theory • Was perfectly normal, except he couldn’t form new memories 24 Strategies for remembering • Rehearsing: repeating a stimulus, e.g. saying someone’s name when you’re introduced to them • Chunking: grouping items together (so that many items become one), e.g. instead of remembering that someone’s number is 0,2,7,x,x,x,x,x,x,x, it’s – {027}, {x,x,x},{x,x,x,x}, or – {Telecom}, {x,x,x},{x,x,x,x} • Mnemonic: e.g. Richard Of York Gave Battle In Vain • Biggest factor affecting long-term recall: testing soon after learning (more than once); see MemoryLab for more research 25 Influences on remembering
  • 111. • Associative learning: can the new knowledge be linked to existing knowledge? How densely? • Consistency: Does it conflict with existing knowledge (cognitive dissonance)? • Competing demands on short-term memory or cognitive processes (distractions) – Promotional clutter: studies indicate that people (in the USA, mainly) are exposed to about 4,000–6,000 promotional messages per day 26 Example: Context shift Walking through doorways causes forgetting: People were asked to walk from table to table and pick up objects. They were later probed about what they remembered. There were two groups: in one the tables were all in the same room. In the other, they were spread across two rooms. People who had to walk from one room to another remembered less about what they had experienced. 7 http://en.wikipedia.org/wiki/Declarative_memory http://en.wikipedia.org/wiki/Procedural_memory http://en.wikipedia.org/wiki/Episodic_memory http://en.wikipedia.org/wiki/Semantic_memory http://en.wikipedia.org/wiki/Memento_(film)
  • 112. http://en.wikipedia.org/wiki/HM_(patient) http://www.nytimes.com/2008/12/05/us/05hm.html?_r=1&page wanted=all http://www.nytimes.com/2008/12/05/us/05hm.html?_r=1&page wanted=all http://en.wikipedia.org/wiki/Mnemonic www.memorylab.org http://www.tandfonline.com/doi/full/10.1080/17470218.2011.57 1267 27 Long-term memory • Long-term memory encodes information semantically, i.e. symbolically, and most defi- nitely not as a 1:1 record of our sense impressions • We don’t recall our memories as a whole, rather we re- construct them from a limited set of features – Different types of memories are stored in different places in the brain (smells, sights, sounds, thoughts etc. are stored in different areas) and “stitched back” to- gether when recalled 28 Reconstructing memories People watched a video of a traffic accident. Different groups were asked different questions: • “How fast were the cars going when they hit each other?” • “How fast were the cars going when the smashed into each other?”
  • 113. Those who heard “smashed” gave higher estimates of speed • Weeks later, they were asked whether there was broken glass at the scene. Those who heard “smashed” were more likely to say there was (there wasn’t). Source: Loftus and Palmer, 1974 29 Some consequences for marketing • Persuasive messages must break through several barriers to reach our consciousness and be remembered • Perception is relative to the initial stimulus: messages must be stronger (louder, brighter) than the context and competition (leads to promotional “arms race”) • The probability that something will be remembered is affected by many factors, each of which must be considered when designing promotional strategies and tactics 30 Summary • We are not aware of all we perceive • Memory is not like a video recorder (but we do have memories of which we are un- aware) • Basic limit to cognitive processing: the magical number 7±2 • Strategies for learning (chunking etc.)
  • 114. • Memories can be influenced by the words used to evoke them; we can “remember” things that never happened 31 Key Concepts • Perceptual contrast • Selective attention • Perceptual illusions • Subliminal perception • Short-term and long-term memory • Influences on remembering 8 http://en.wikipedia.org/wiki/Reconstruction_of_automobile_dest ruction 32 Memory Beliefs Strongly Mostly Mostly Strongly Don’t Statement Agree Agree Disagree Disagree Know The testimony of one confident eye- witness should be enough evidence to convict a defendant of a crime 11 26 35 25 3 Human memory works like a video
  • 115. camera, accurately recording the events we see and hear so that we can review and inspect them later 24 39 23 11 2 Once you have experienced an event and formed a memory of it, that mem- ory does not change 17 31 35 14 4 People generally notice when some- thing unexpected enters their field of view, even when they’re paying atten- tion to something else 27 50 18 2 2 All these statements are false, but a significant proportion of people believe them to be true (Si- mons & Chabris, 2011) 33 Activities 1. Reflect on how you learn new things Repetition? (Rote- learning) Association? Chunk- ing? Mnemonics? Mind-mapping? 2. Count how many promotional messages you encounter in one day. Think carefully about what a “promotional message” is. Hint: not just exhortations to buy. Includes anything designed to influence (a) attitude; and (b) recall. 34 Example Exam Questions
  • 116. 1. Explain the stages in the process from stimulus to retention in long-term memory, and the barriers along the way. Give examples. Examples given in the lectures, textbook or Wikipedia will not be marked. 2. Explain the how marketers can use what is known about how memory works to increase the probability that someone will recall their brand name when they are thinking of purchasing something in the relevant product category. 35 Next Time Topics • Beliefs, Attitudes and Values • Identity Preparation • Read the specified pages of the textbook (see course outline) • Read Possessions and the Extended Self, available on Blackboard (in the readings folder) 9 http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjour nal.pone.0022757 http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjour nal.pone.0022757 References
  • 117. Loftus, E. F. & Palmer, J. C. (1974, October). Reconstruction of automobile destruction: an example of the interaction between language and memory. Journal of Verbal Learning and Verbal Behavior, 13(5), 585–589. doi:10.1016/S0022- 5371(74)80011-3 Miller, G. A. (1956). The magical number seven, plus or minus two: some limits on our capacity for processing information. Psychological Review, 63(2), 81–97. doi:10.1037/ h0043158 Simons, D. J. & Chabris, C. F. (2011, August 3). What people believe about how memory works: a representative survey of the U.S. population. PLoS ONE, 6(8), e22757. doi:10. 1371/journal.pone.0022757 10 AgendaTopic MapMemoryPerceptionPerception and awarenessThresholds of sensationAttentionInterpretationInterpretation: colourInterpretation: lengthInterpretation: movementInterpretation influencesClosureFigure-Ground (Attention)Interpretation influencesSense- makingAwarenessSubliminal perceptionSummary of perceptionMemoryDifferent memory storesLong-term memoryExperimental evidenceStrategies for rememberingInfluences on rememberingExample: Context shiftLong-term memoryReconstructing memoriesSome consequences for marketingSummaryKey ConceptsMemory BeliefsActivitiesExample Exam QuestionsNext Time assignment1/lecture notes/0113beliefs-attitudes-and-values-
  • 118. notes(4).pdf BSNS 103: Marketing and Consumption Attitudes and Values John Williams [email protected] January 13, 2015 1 Agenda 1. Definitions • Beliefs • Opinions • Attitudes • Values 2. The influence of attitudes and values on behaviour 3. Questions about the assignment? (during the break) 2 Topic map Persuasion Evaluate Alternatives Usage & Disposal Recognise Need Get Information Pick Best Alternative
  • 119. Implement Decision Motivation Perception, Memory Society, Culture Attitudes, Identity Situational Factors Satisfaction, Loyalty Value 3 Beliefs and opinions • A belief is a thought that we hold to be objectively true, i.e. we think that its truth does not depend on our belief – Example: Earth orbits the sun, not vice versa. – Closely connected with knowledge: justifiable true belief • An opinion is a thought that can’t be said to be true or false: you can only agree or disagree – Example: Pink Floyd was the greatest band of the twentieth century
  • 120. 1 mailto:[email protected] 4 Attitude • Exact definition of attitude is difficult: most widely accepted is a learned pre-disposition to respond to some attitude object – The object need not be physical, or “real”, e.g. Unicorns • One model widely used in CB is that attitudes have three components: 1. Cognitive (thinking) 2. Affective (feeling) 3. Conative (behaving) 5 The Tripartite model Stimuli A t t i t u d e
  • 121. Affect Cognition Behaviour Sympathetic nervous system responses, verbal statement of affect Perceptual responses, verbal statements of belief Overt actions, Verbal statements concerning behaviour 6 The need for consistency • We seem to have an innate need to keep our thoughts (cognition), feelings (affect) and actions (behaviour) in some kind of harmony • There are many instances where we don’t do what we say (think), but in general we seem to be consistent • Early theory: Heider’s Balance Theory (Heider, 1946, 1958) 2 http://en.wikipedia.org/wiki/Fritz_Heider http://en.wikipedia.org/wiki/Balance_theory
  • 122. 7 Balance theory P o x + + + Peter likes Olivia Peter likes Brand X Olivia likes Brand X P o x - - + Peter dislikes Olivia Peter dislikes Brand X Olivia likes Brand X P o x - + - Peter dislikes Olivia Peter likes Brand X
  • 123. Olivia dislikes Brand X P o x + - - Peter likes Olivia Peter dislikes Brand X Olivia dislikes Brand X P o x + - + Peter likes Olivia Peter dislikes Brand X Olivia likes Brand X P o x + + - Peter likes Olivia
  • 124. Peter likes Brand X Olivia dislikes Brand X P o x - + + Peter dislikes Olivia Peter likes Brand X Olivia likes Brand X P o x - - - Peter dislikes Olivia Peter dislikes Brand X Olivia dislikes Brand X Balanced Triads Unbalanced Triads 8 Cognitive dissonance • The term Cognitive Dissonance was coined by Leon Festinger (1957); it refers to the phenomenon where we believe two (or more) contradictory things to be true.
  • 125. • Arose from his study of a Doomsday cult: examined what happened to the beliefs of cult members when the prophecy failed. • In marketing it usually refers to post-purchase regret, i.e. where the actual experience of consuming the product is less satisfying than it was anticipated to be 9 Evaluating evidence • What do we do when confronted with evidence that conflicts with our beliefs and at- titudes? When this happens, dissonance is present and are motivated to reduce this discomfort. • We tend to give more weight to evidence that conforms to our existing beliefs and attitudes, and discount evidence that conflicts • Some research suggests that offering arguments is counter- productive: it only reinforces existing attitudes (Nyhan & Reifler, 2010) 10 Rationalisation • However some evidence is overwhelming (lack of Armageddon on the specified date) • We can rationalise quite dramatically. – Example: we want something, find we can’t have it, then decide we didn’t want it after all.
  • 126. • Rationalisation also allows us to justify our actions, i.e. give reasons for behaviours, even though they may not be the real reasons – Example: men were shown photos of women and asked to pick the most attractive. Later they were asked to explain why they found the photos attractive. But the photos were switched and many did not notice. Some said “I prefer blondes” even though they had picked a brunette (Johansson, Hall, Sikström, & Olsson, 2005). 3 http://en.wikipedia.org/wiki/Cognitive_dissonance http://en.wikipedia.org/wiki/Leon_Festinger http://en.wikipedia.org/wiki/When_Prophecy_Fails http://en.wikipedia.org/wiki/Rationalization_(making_excuses) 11 Expectancy-value models The Expectancy-Value Theory was created by Martin Fishbein in the 1970s. A ∝ n ∑ i=1 biei • bi is the strength of belief that the object possesses attribute i • ei is the evaluation of attribute i, i.e. a favourable or