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© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter 10
Post-Decision Processes
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
1. Distinguish between the dissonance and the regret
that consumers may experience after acquisition,
consumption, or disposition
2. Explain how consumers can learn from experience
and why marketers need to understand this post-
decision process
3. Discuss what happens when consumers experience
satisfaction or dissatisfaction with their decisions
about acquisition, consumption, or disposition
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (continued)
4. Outline the ways in which consumers may respond
to dissatisfaction, and highlight the importance to
marketers
5. Discuss whether customer satisfaction alone is
enough to maintain customer loyalty
6. Describe how consumers may dispose of something,
why this process is more complex for meaningful
objects, and what influences consumer recycling
behavior
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Post-Decision Dissonance
and Regret
• Feeling of discomfort about whether or not the
correct decision was made
Post-decision dissonance
• Negative feeling that one should have made
another purchase, consumption, or disposition
decision than one actually did
Post-decision regret
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Factors Affecting
Learning from Experience
Motivation
Prior knowledge or ability
Ambiguity of information or lack of opportunity
Processing biases
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Marketing Implication of
Processing Bias
Top dog strategies Underdog strategies
Market leader or brand with a
large market share
Lower-share brand
Limitation on learning new
information during low motivation
is beneficial
Instigating learning through
comparison during low motivation
Blocking exposure to evidence to
avoid consumers from getting
new information
Creating expectations and using
promotion to provide actual
experience for consumers
Explaining experience by
reinforcing the messages and
encouraging consumers to try the
brand
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Judgments
Consumers evaluate the outcomes after
making acquisition, consumption, or
disposition decisions
– Satisfaction: Decision meets or exceeds
one’s expectations
– Dissatisfaction: Decision falls short of one’s
expectations
Utilitarian and hedonic
– Dimensions on which consumers are satisfied
or dissatisfied
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Thought-Based Judgments of
Satisfaction or Dissatisfaction
Can relate to:
– Whether consumers' beliefs and expectations
about the offering are confirmed or
disconfirmed by its actual performance
– Thoughts about:
• Causality and blame
• Fairness and equity
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Attribution Theory
Describes how individuals find explanations
for events
Based on stability, focus, and controllability
Ways to increase consumers' positive post-
decision feelings
– Providing value-added services
– Using promotions and special deals
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Equity Theory
Concerns about the fairness of exchanges
between individuals
Helps in understanding consumer satisfaction
and dissatisfaction
Perception of inputs and outputs are
exchanged between consumers and sellers
– Fairness in exchange: Perception that the inputs
and outputs of people involved in an exchange are
equal
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Satisfaction or Dissatisfaction
Based on Feelings
Post-decision emotions: Emotions
experienced while using or disposing of the
acquired brands, products, or services
Dissatisfied consumers need to cope with
feelings of stress
Affective forecasting - Consumers tend to be
more dissatisfied when a product:
– Fails to perform as they thought it would
– Makes them feel worse than they forecasted it
would
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Responses to Dissatisfaction
Complaining
Responding to service recovery
Engaging in negative word-of-mouth
communication
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Steps to Retain Customers
Caring about customers
Remembering customers between sales
Building trusting relationships
Monitoring service-delivery process
Providing extra effort
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Disposing of Meaningful Objects
• Physical disposal of an item
Physical detachment
• Emotional disposal of a possession
Emotional detachment
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Recycling Behavior
Depends on:
– Motivation
– Ability
– Opportunity
Chapter 10Learning ObjectivesLearning Objectives
(continued)� Post-Decision Dissonance and RegretFactors
Affecting �Learning from ExperienceMarketing Implication of
Processing BiasConsumer Judgments Thought-Based
Judgments of Satisfaction or Dissatisfaction Attribution
TheoryEquity TheorySatisfaction or Dissatisfaction �Based on
FeelingsResponses to DissatisfactionSteps to Retain
CustomersDisposing of Meaningful ObjectsRecycling Behavior
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter 8
Judgment and Decision-Making
Based on High Effort
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
1. Distinguish between judgment and decision-
making, and indicate why both processes are
important to marketers
2. Describe the types of decisions consumers face in
situations where motivation, ability, and
opportunity to process are high
3. Identify two types of cognitive decision-making
models and understand how consumers make
decisions based on brands, product attributes,
and gains and losses
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (continued)
4. Explain how affective decision-making models
differ from cognitive decision-making models, and
discuss the role of appraisals and feelings,
affective forecasting, and imagery in high-effort
decisions
5. Discuss why, in a high-effort situation, consumers
may delay a decision, and show how they make
decisions when alternatives cannot be compared
6. Outline the ways that consumer characteristics,
decision characteristics, and other people can
influence high-effort decisions
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
High-Effort Judgment
Processes
Judgment: Evaluation of an object or
estimation of likelihood of an outcome or
event
Decision-making: Making a selection among
options or activities
– Estimation of likelihood
– Judgment of goodness or badness
• Anchoring and adjustment: Starting with
initial evaluation and adjusting it with additional
information
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
High-Effort Judgment Processes (continued)
• Imagery: Imagining an event in order to make
judgments
– Mental accounting: Categorizing spending
and saving decisions into accounts mentally
designated for specific consumption
transactions, goal, or situations
– Emotional accounting: Intensity of positive or
negative feelings associated with each mental
account for saving or spending
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Biases in Judgment Processes
Confirmation
Self-positivity
Negativity
Mood
Prior brand evaluations
Prior experience
Difficulty of mental calculations
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
High-Effort Consumer Decisions
Deciding which brands to consider
– Options fall under inept set, inert set, and
consideration set
• Attraction effect: Addition of inferior brands to a
consideration set increases the attractiveness of
dominant brands
Deciding what is important to the choice
– Goals
– Time
– Decision framing
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
High-Effort Consumer Decisions
(continued)
Deciding what brand to choose
– Cognitive decision-making model
• Consumers combine items of information about
attributes to reach a decision
– Affective decision-making model
• Consumers base their decision on feelings and
emotions
Deciding whether to make a decision now
Deciding when alternatives cannot be
compared
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 8.5 – Types of Cognitive
Choice Models
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Brand versus Attribute Models
Brand processing Attribute processing
Multiattribute expectancy-value
model: Type of brand-based
compensatory model
Additive difference model: Brands
are compared by attribute, two
brands at a time
Conjunctive model: Sets minimum
cutoffs to reject bad options
Lexicographic model: Compares
brands by attributes, one at a time in
order of importance
Disjunctive model: Sets acceptable
cutoffs to find options that are good
Elimination-by-aspects model:
Similar to lexicographic model but
adds the notion of acceptable cutoffs
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Decisions Based on Gains and
Losses
Prospect theory
– Losses have more influence than gains
– Endowment effect: Ownership increases the
value of an item
– Consumers have stronger reaction to price
increases than price decreases
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
High-Effort
Feeling-Based Decisions
Consumers tend to be more satisfied after
making a feeling-based decision
Emotions aid thought-based decisions
Brands can be associated with positive or
negative emotions
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Affective Decision-Making
Appraisal theory explains:
– How one’s emotions are determined by how one
appraises the situation
– How and why certain emotions can affect future
judgments and choices
Affective forecasting: Predicts how one will
feel in the future
Imagery: Consumer imagines consuming a
product or service
– Plays a key role in emotional decision-making
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Additional
High-Effort Decisions
Decision delay occurs if the decision is risky,
uncertain, or involves an unpleasant task
Noncomparable decision: Making decisions
about products or services from different
categories
– Alternative-based strategy: Choice based on
overall evaluation
– Attribute-based strategy: Choice based on
abstract representations of comparable
attributes
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Characteristics and
Decisions
Expertise
– Detailed consumption vocabularies
Good mood
– Allows one to process information and more
time to make a decision
Time pressure
– Leads to consumers’ failure to make intended
purchases
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Characteristics and
Decisions (continued)
Extremeness aversion: Options extreme on
some attributes are less attractive than those
with a moderate level of those attributes
• Compromise effect: Brand gains share as it is
an intermediate than an extreme option
• Attribute balancing: Picking a brand because
it scores equally well on certain attributes
Metacognitive experiences: How
information is processed beyond content of
the decision
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Decision Characteristics
Affecting Decision Making
Information availability
Information format
Trivial attributes
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website, in whole or in part.
Group Decision Making
Individual-alone goals - Goals attained by an
individual’s action alone
Individual-group goals - Goals achieved based
on actions of an individual and a group
Chapter 8Learning ObjectivesLearning Objectives
(continued)High-Effort Judgment ProcessesHigh-Effort
Judgment Processes (continued)Biases in Judgment
ProcessesHigh-Effort Consumer DecisionsHigh-Effort
Consumer Decisions (continued)Exhibit 8.5 – Types of
Cognitive �Choice ModelsBrand versus Attribute
ModelsDecisions Based on Gains and LossesHigh-Effort
�Feeling-Based DecisionsAffective Decision-
MakingAdditional� High-Effort DecisionsConsumer
Characteristics and DecisionsConsumer Characteristics and
Decisions (continued)Decision Characteristics �Affecting
Decision MakingGroup Decision Making
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter 7
Problem Recognition and
Information Search
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
1. Describe how consumers recognize a consumption
problem and show why marketers must understand
this part of the decision-making process
2. Discuss what happens when consumers conduct an
internal search to solve a consumption problem and
identify some of the ways in which marketers can
affect internal searches
3. Explain why and how consumers conduct an
external search to solve a consumption problem,
and highlight the main implications for marketing
strategy
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Problem Recognition
Ideal state
– Where individuals
want to be
Actual state
– Where individuals
are now
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Internal Search
Searching for information from memory
Degree of internal search varies
Kinds of information recalled
– Brands
– Attributes
– Evaluations
– Experiences
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Brand Recall
Consideration or evoked set: Subset of top-of-
mind brands evaluated when making a choice
– Varies in terms of:
• Size
• Stability
• Variety
• Preference dispersion
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Brand Recall (continued)
Factors that increase the possibility of
consumers’ recalling a particular brand
– Prototypicality
– Brand familiarity
– Goals and usage situations
– Brand preference
– Retrieval cues
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Attribute Recall
Accessibility/availability
Diagnosticity
Salience
Vividness
Goals
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Is Internal
Search Accurate?
Confirmation bias
– Drawing attention to negatives of competition
Inhibition
– Consumers do not always consider key aspects
– Consumers recall other attributes that are more
accessible
– Mood
• Enhancing the recall of positive attribute
information through the use of humor or
attractive visuals
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Sources of External
Information
Retailer Media and social media
Interpersonal Independent
Experiential Internet
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Information Processing
Influenced by:
– Motivation
– Ability
– Opportunity
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Motivation to Process
Information
Involvement and perceived risk
Perceived costs and benefits
Consideration set
Relative brand uncertainty
Attitudes toward search
Discrepancy of information
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Ability to Process Information
Consumer knowledge
Cognitive abilities
Consumer affect
Demographics
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scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Opportunity to
Process Information
Amount of information available
Information format
Time availability
Number of items being chosen
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Information Acquired
in External Search
Brand name
Price
Other attributes that are salient and
diagnostic
Chapter 7Learning ObjectivesProblem RecognitionInternal
SearchBrand RecallBrand Recall (continued)Attribute RecallIs
Internal �Search Accurate?Sources of External
InformationInformation ProcessingMotivation to Process
InformationAbility to Process InformationOpportunity to
�Process InformationInformation Acquired �in External Search
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter 5
Attitudes Based on
High Consumer Effort
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
1. Discuss how marketers can apply various
cognitive models to understand consumers’
attitudes based on high-effort thought processes
2. Describe some of the methods for using the
communication source and the message to
favorably influence consumers’ attitudes in high-
effort situations
3. Identify the emotional foundations of attitudes
when consumers' processing effort is high
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (continued)
4. Explain how and why a company might try to
change consumers’ attitudes by influencing their
feelings
5. Outline the three main factors that lead to a
positive overall consumer attitude toward an
advertisement
6. Discuss the various elements that can affect
whether a consumer’s attitudes will influence his
or her behavior
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Attitudes
Relatively global and enduring evaluation of
an object, issue, person, or action
Influences thoughts, feelings, and behavior
– Cognitive function
– Affective function
– Connative function
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website, in whole or in part.
Characteristics of Attitudes
Favorability Accessibility Confidence
Persistence Resistance Ambivalence
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 5.1 - Approaches to
Attitude Formation and Change
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Cognitive Foundations
of Attitudes
Direct or imagined experience
Reasoning by analogy or category
Values-driven attitudes
Social identity-based attitude generation
Analytic processes of attitude construction
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Cognitive Responses to
Communication
Cognitive response: Thought individuals have
in response to a communication
− Counterargument (CA): Thought that
disagrees with the message
− Support arguments (SA): Thought that agrees
with the message
− Source derogations (SD): Thought that
discounts or attacks the source of the message
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Expectancy-Value Models
Explain how consumer attitudes form and
change based on:
– Beliefs or knowledge about an object or action
– Evaluations of these particular beliefs
Theory of reasoned action (TORA): Model
that provides an explanation of how, when, and
why attitudes predict behavior
– Normative influences play a significant role in
how people behave
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Components of the TORA
Model
Behavior (B): What one does
Behavioral intention (BI): What one intends to
do
– Determined by:
• Attitude toward the act (Aact): How one feels
about doing something
• Subjective norms (SN): How others feel about
another person doing something
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Marketing Implications on
Changing Consumer Attitudes
Strategies for changing attitudes, intentions,
and behavior
– Changing beliefs
– Changing evaluations
– Adding a new belief
– Encouraging attitude formation based on
imagined experience
– Targeting normative beliefs
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
• Source credibility - Trustworthiness, expertise, and status
• Company reputation
• Sleeper effect: Consumers forget the source of a
message faster than the message
Communication source
• Strong argument: Features the central merits of an
offering in a convincing manner
• One-sided messages: Only positive information
• Two-sided messages: Positive and negative information
• Comparative message: Direct comparisons with
competitors
Message
How Cognitively Based
Attitudes Are Influenced
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Affective (Emotional)
Foundations of Attitudes
High affective involvement leads to
emotional engagement with a stimulus
Affective response: Generation of
feelings and images in response to a
message
Emotional appeal: Message designed to
elicit an emotional response
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
How Affectively Based
Attitudes Are Influenced
Source
– Attractiveness: Evokes favorable attitudes if a
source is physically attractive, likable, familiar,
or similar to the consumer
– Match-up hypothesis: Idea that the source
must match the product or service
Message
– Emotional appeals - Elicit emotions that
attract consumers
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
How Affectively Based
Attitudes Are Influenced (continued)
– Emotional contagion: Message designed to
induce consumers to vicariously experience an
emotion
– Fear appeals: Stress negative consequences
• Terror management theory (TMT): Deals with
how individuals cope with threat of death by
defending their worldview of values and beliefs
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website, in whole or in part.
Attitude Toward the Ad (Aad)
Whether the consumer likes or dislikes an ad
Dimensions
– Utilitarian (functional): When an ad provides
information
– Hedonic: When an ad creates positive or
negative feelings
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
What Do Attitudes Predict
Behavior
Factors
Level of involvement or elaboration
Knowledge and experience
Analysis of reasons
Accessibility of attitudes
Attitude confidence
Specificity of attitudes
Attitude-behavior relationship over time
Emotional attachment
Situational factors
Normative factors
Personality variables
Chapter 5Learning ObjectivesLearning Objectives
(continued)AttitudesCharacteristics of AttitudesExhibit 5.1 -
Approaches to Attitude Formation and ChangeCognitive
Foundations �of AttitudesCognitive Responses to
CommunicationExpectancy-Value ModelsComponents of the
TORA ModelMarketing Implications on Changing Consumer
AttitudesHow Cognitively Based �Attitudes Are
InfluencedAffective (Emotional) Foundations of AttitudesHow
Affectively Based �Attitudes Are InfluencedHow Affectively
Based �Attitudes Are Influenced (continued)Attitude Toward
the Ad (Aad) What Do Attitudes Predict Behavior
1
Chapter 3
How Under Armour Gets Noticed
The Nike
[http://bi.galegroup.com/essentials/company/306325?u=tlearn_tr
l] swoosh may be one
of the most recognized logos in the world of sports, but the
Under Armour
[http://bi.galegroup.com/essentials/company/956606?u=tlearn_tr
l] logo (an interlocking U and
A) is increasingly in the spotlight as the company gets noticed
on and off the field. Founded in
1996 by Kevin Plank, once a member of the University of
Maryland’s football team, Under
Armour designs apparel and gear to help athletes feel and do
their best in hot or cold weather, in
sports arenas or on the track. How can a latecomer to a fast-
growing industry dominated by
global giants such as Nike get noticed?
A little-known brand name was only one of Under Armour’s
early challenges. Another was
that many of its first products (such as undershirts that wick
away moisture) were not actually
visible to onlookers. In contrast, the logos of competing brands
were visible and often prominent
on athletic shoes, shirts, and caps. So the company initially
positioned itself as “a brand for the
next generation of athletes.” Whereas Nike was sponsoring
well-known, established athletes,
Under Armour’s sponsorships went to up-and-comers known for
their dedication and athleticism.
Its first endorsement deal was with a Dallas Cowboys football
player who had been at University
of Maryland with Under Armour’s founder. More recently, the
company’s performance apparel
has been spotted on endorsers such as Heather Mitts (soccer),
Cam Newtown (football), and
Derrick Williams (basketball).
As its sponsored athletes do well, and their teams win games
and even championships, Under
Armour’s brand gains attention and visibility. Although not
every rising star becomes a sports
http://bi.galegroup.com/essentials/company/306325?u=tlearn_trl
http://bi.galegroup.com/essentials/company/956606?u=tlearn_trl
2
legend, the brand still gets exposure as these athletes receive
media coverage, become
established in their sports, and appear in Under Armour ads.
Now that the company rings up
more than $1 billion in yearly revenue from the sale of clothing,
footwear, and accessories for
men, women, and children, it can also afford some high-profile
deals, such as being endorsed by
Tom Brady of the New England Patriots.
The Under Armour website features the brand mission—“Make
all athletes better”—and
puts its “Universal guarantee of performance” in a conspicuous
position, offering a full refund if
customers are ever dissatisfied with a product for any reason.
The diversity of models and
athletes on the Under Armour site and in its ads, often shown
participating in a sport, invites a
broad range of consumers to identify with the brand.
The close ties between Under Armour and the University of
Maryland have led to additional
opportunities for brand and product exposure. To grab attention
and sell more team merchandise,
college and professional football teams are switching to more
fashionable uniforms and gear,
with flashier colors and styles. As part of this trend, Under
Armour has designed 32 different
items for football players at the University of Maryland to wear.
Fans, competing teams, and the
media can’t help but notice the eye-catching combinations of
shirts, pants, and helmets worn by
team members on different days—with Under Armour’s now-
familiar logo on each item.
What’s ahead for Under Armour? The company is expanding
into Europe and beyond, relying
on distribution and marketing communications to reach more
consumers, both casual and serious
athletes. It is using social media such as YouTube
[https://www.youtube.com/user/underarmour],
Twitter [https://twitter.com/UnderArmour], and Facebook
[https://www.facebook.com/Underarmour/] to engage
consumers, showcase its sports endorsers,
https://www.youtube.com/user/underarmour
https://twitter.com/UnderArmour
https://www.facebook.com/Underarmour/
3
and increase brand and product visibility. Just as important, new
products are in the pipeline,
along with new technology that enhances Under Armour’s
differentiation.i
i Chris Sorenson, “An Underdog with Attitude,” Maclean’s,
September 12, 2011, p. 46; Rosemary
Feitelberg, “Under Armour’s Unofficial All-Star Team,” WWD,
December 1, 2011, p. 12c;
Andrea K. Walker, “Under Armour’s Rookie Strategy for
Endorsement Deals,” Baltimore Sun, July
25, 2011, www.baltimoresun.com; and “Football or Fashion
Show?” New York Times, October
24, 2011, p. 4.
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter 3
From Exposure to Comprehension
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
1. Discuss why marketers are concerned about
consumers’ exposure to marketing stimuli and what
tactics they use to enhance exposure
2. Explain the characteristics of attention and how
marketers can try to attract and sustain consumers’
attention with products and marketing messages
3. Describe the major senses that are part of perception
and outline why marketers are concerned about
consumers’ sensory perceptions
4. Discuss the process of comprehension, and outline how
marketing-mix elements can affect consumer inferences
about products and brands
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exposure
Consumer comes into physical contact with a
stimulus
Marketing stimuli: Information about
offerings communicated by the marketer or
by nonmarketing sources
Factors of influence
– Position of an ad within a medium
– Product distribution
– Shelf placement
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Selective Exposure
Zipping: Fast-forwarding through
commercials on a program recorded earlier
Zapping: Switching channels during
commercial breaks
Cord-cutting - Choosing streaming services
over cable television
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Focal and Nonfocal Attention
Focal attention - Consumers focus on a
stimulus
Nonfocal attention - Consumers are
simultaneously exposed to other stimuli
Preattentive processing: Non-conscious
processing of stimuli
– Leads to liking a brand name
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
• Appealing to one’s needs, values, emotions, or goals
Personal relevance
• Using attractive models, music, and humor
Pleasantness
Characteristics of Stimulus That
Attract Consumer Attention
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
• Using novelty, unexpectedness, and puzzles
Element of surprise
• Prominence and concreteness of stimuli
• Limited number of competing stimuli
• Contrast with competing stimuli
Easy to process
Characteristics of Stimulus That
Attract Consumer Attention (continued)
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Perception
Determining the properties of stimuli using
vision, hearing, taste, smell, and touch
Factors in visual perception
– Size and shape
– Lettering
– Image location on package
– Color
– Appearance of being new or worn
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumers’ Stimuli
Perception
• Minimal level of stimulus intensity needed to detect stimulus
Absolute thresholds
• Intensity difference needed between two stimuli before they
are
perceived to be different
• Weber’s law: Stronger the initial stimulus, greater the
additional
intensity needed for the second stimulus to be perceived as
different
Differential thresholds (just noticeable difference)
• Activation of sensory receptors by stimuli presented below the
perceptual threshold
Subliminal perception
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Perceptual Organization
Process by which stimuli are organized into
meaningful units
Figure and ground: People interpret stimuli
in the context of a background
Closure: Individuals’ need to organize
perceptions so that they form a meaningful
whole
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Perceptual Organization
(continued)
Grouping: Tendency to group stimuli to form
a unified picture or impression
Preference for the whole: Perceiving more
value in a whole than in combined parts that
make a whole
– Even if the parts have the same objective
value as the whole
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Knowledge to Understand:
Comprehension
Extracting higher-order meaning from what
individuals have perceived in context of what
is already known
Source identification: Determining what
perceived stimulus actually is and what
category it belongs to
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Knowledge to Understand:
Comprehension (continued 1)
• Extent to which the consumer accurately
understands the message the sender intends
to communicate
Objective comprehension
• What the consumer understands from the
message, regardless of whether it is accurate
Subjective comprehension
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Inference
Brand names and symbols
- Create subjective comprehension and
inferences
Product features and packaging
− Product attributes
− Country of origin
− Package design
© 2013 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Inference (continued)
Price
– Culture can influence perceptions of price
and quality
Message wording
Retail atmospherics, display, and distribution
Chapter 3Learning ObjectivesExposureSelective ExposureFocal
and Nonfocal Attention Characteristics of Stimulus That
Attract Consumer Attention Characteristics of Stimulus That
Attract Consumer Attention (continued)PerceptionConsumers’
Stimuli PerceptionPerceptual OrganizationPerceptual
Organization (continued)Knowledge to Understand:
ComprehensionKnowledge to Understand: Comprehension
(continued 1)Consumer InferenceConsumer Inference
(continued)
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Chapter 2
Motivation, Ability, and
Opportunity
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
1. Show how motivation influences high-effort
behavior, high-effort information processing and
decision-making, and felt involvement
2. Discuss the four types of influences that
determine the consumer’s motivation to process
information, make a decision, or take an action
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives (continued)
3. Explain how financial, cognitive, emotional,
physical, and social and cultural resources, plus
age and education, can affect the individual’s
ability to engage in consumer behaviors
4. Identify the three main types of influences on
the consumer’s opportunity to process
information and acquire, consume, or dispose of
products
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Motivation
Inner state of activation that provides energy
needed to achieve a goal
Consumers can be motivated to acquire, use,
or dispose of an offering
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Motivation
and Effects
High-effort behavior
– Drives that bring a goal closer and creates a
willingness to spend time and money
High-effort information processing and
decision-making
Motivated reasoning: Processing
information in a way that allows consumers to
reach the conclusion they want to reach
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Motivation
and Effects (continued 1)
Felt involvement
– Consumer's experience of being motivated
with respect to products or services, or
decisions and actions regarding these
– Types of involvement
• Enduring
• Situational (temporary)
• Cognitive
• Affective
• Response
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Motivation
and Effects (continued 2)
Objects of involvement
– Product or retail category
– Experiences
– Brands
– Ads
– Medium
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Drivers of Motivation
• Something that has direct bearing on self that has
potentially significant consequence or implication
Personal relevance
• Mental view of who one is
Self-concept
• Abstract, enduring beliefs about what is right or wrong,
important, or good or bad
Values
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
• Internal state of tension experienced as a
discrepancy between current and ideal state
(physical or psychological)
Need
• Outcome one would like to achieve
• Can be concrete or abstract and promotion-
focused or prevention-focused
Goal
Drivers of Motivation (continued)
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 2.3 - Maslow’s
Hierarchy of Needs
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Exhibit 2.4 - Categorizing Needs
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Types of Need Conflicts
• About acquiring or consuming an offering that fulfills one
need
but fails to fulfill another
Approach-avoidance conflict
• About which offering to acquire when each can satisfy an
important but different need
Approach-approach conflict
• About which offering to acquire when neither can satisfy an
important and different need
Avoidance-avoidance conflict
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Goals and Emotion
Appraisal theory
– Proposes that emotions are based on individuals’
assessment of a situation or an outcome and its
relevance to his or her goals
– Posits that emotions are affected by the
normative or moral compatibility, certainty, and
agency
Positive and negative emotions experienced
during or after consuming a product or
service change in time or get satiated
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Goals and Emotion (continued)
Self-control conflicts arise when individuals
face decisions about actions related to goals
that are in conflict
– Self-control: Regulates feelings, thoughts,
and behavior in line with long-term goals
– Ego depletion: Outcome of decision-making
effort that results in mental resources being
exhausted
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Marketing Implications
of Needs and Goals
Enhancing motivation to process
communications
Product development and positioning
Encouraging specific behaviors
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Perceived Risk
Extent to which the consumer anticipates:
– Negative consequences of an action to emerge
– Positive consequences to not emerge
Tends to be high because of:
– New offering
– High price
– Complex technology
– Brand differentiation
– Little confidence or experience in evaluation
– Opinions of others and fear of judgment
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Types of Perceived Risk
Performance
Financial
Physical or safety
Social
Psychological
Time
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Inconsistency with Attitudes
Motivation to process information is:
– High when information is moderately
inconsistent with one’s attitude
– Low when information is highly inconsistent
with one’s prior attitude
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Consumer Ability and
Opportunity
Ability
– Factors that affect consumers' ability to
process information and make decision
• Financial, cognitive, emotional, physical, social,
cultural resources, education, and age
Key influences in consumer opportunity
– Lack of time, distraction, and the amount,
complexity, repetition, and control of
information
© 2017 Cengage Learning. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Marketing Implication of
Enhancing Information Processing
Repeating marketing communications
Reducing time pressure
Reducing time needed for purchase and learn
about a product or service
Providing information
Chapter 2Learning ObjectivesLearning Objectives
(continued)MotivationConsumer Motivation �and Effects
Consumer Motivation �and Effects (continued 1)Consumer
Motivation �and Effects (continued 2)Drivers of
MotivationSlide Number 9Exhibit 2.3 - Maslow’s Hierarchy of
NeedsExhibit 2.4 - Categorizing Needs Types of Need
ConflictsGoals and EmotionGoals and Emotion
(continued)Marketing Implications �of Needs and
GoalsPerceived RiskTypes of Perceived RiskInconsistency with
AttitudesConsumer Ability and Opportunity Marketing
Implication of Enhancing Information Processing
MKTG-6018
1
OBSERVATION JOURNAL (15%)
V I A D I S C U S S I O N B O A R D
What is it?
• An academic journal is a place for self-examination,
speculation, and discussion of ideas—your
own and those of others. It is an opportunity for dialogue with
yourself. Your academic journal
should be focused toward this course.
• Use the journal to record responses to reading and preparation
for class each week. Make
summaries or analyze some specific texts. Try making
connections between the ideas from
class/readings and related experiences.
• The point of keeping a journal in a college course is to find a
way to engage the subject matter
of the course over the progress of the semester—in essence, to
build on your own encounters
with subject matter over an extended period of time.
What and when to write
• You should write on a regular basis (at least once a week) and
as preparation for class each
week.
• Field observations should be clearly labeled with the date, the
location, and the focus of the
observation.
• Include your experiences, list in this journal -- including
people’s name, location of observation,
and date of observation.
• Be ambitious! Ponder thoughtfully; then write.
• You may include sketches, photos, interviews, etc.
Writing style
• I will be concerned with your ability to explain and present
your ideas rather than with the
formality or technical precision of your writing.
• Entries should be legible (at minimum)
• Develop your thoughts as fully as possible.
• And remember class members will read your observations and
you might have an impact upon
their lives.
2
Evaluation
• Entries will be evaluated for their quality of communication.
• If you deal regularly and effectively with the materials for
class in the journal (including the
assigned topics), you will receive a B on the journal. If entries
show strong evidence of grappling
with issues, of a quest for understanding, and/or of effort to
develop and support views, you will
receive an A on the journal.
• Journals will be collected and evaluated throughout the
semester.
o Completeness on an ongoing basis
o Quality of presentation
o Depth of observation and insight
o Evidence of reflection on class topics
Via Discussion Board
MKTG-6018 Rubric for Journal Writing
Task Description:
Criteria
w
ei
gh
t Exemplary
Yes (4-5)
Accomplished
Yes, but (2-3)
Developing
No, but (1)
Beginning
No (0)
Retelling of
Experience
20%
experience
observations during
experience
organized with logical
sequence
experience
experience
easy to follow
explanation of
experience
ve
observation of
experience
experience
-objective
observation of
experience
confusing
Reflections/
Personal
Response
20%
work
rovides many
examples
work
work
examples
Relevance
to Course
Concepts or
Personal
Experience
20%
different contexts;
relates observations to
classroom concepts
and/or personal
experiences
observations to
classroom concepts
and/or personal
experiences
reference to what is said
in class or to personal
experience
what is heard in class or
personal experiences
Analysis of
Experience
20%
meanings
thinking expressed
of the time
deeper meanings
expressed
made
level meaning
expressed
rences are
made
reflection on assignment
critical thinking
Effort on
Assignment
20%
on assignment
parts of the assignment
assignment
assignment
Assignment Score __________/25____ + Holistic score
__________/10____ = Final Score

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© 2017 Cengage Learning. All Rights Reserved. May not be scann.docx

  • 1. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 10 Post-Decision Processes © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Distinguish between the dissonance and the regret that consumers may experience after acquisition, consumption, or disposition 2. Explain how consumers can learn from experience and why marketers need to understand this post- decision process 3. Discuss what happens when consumers experience satisfaction or dissatisfaction with their decisions about acquisition, consumption, or disposition © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 2. website, in whole or in part. Learning Objectives (continued) 4. Outline the ways in which consumers may respond to dissatisfaction, and highlight the importance to marketers 5. Discuss whether customer satisfaction alone is enough to maintain customer loyalty 6. Describe how consumers may dispose of something, why this process is more complex for meaningful objects, and what influences consumer recycling behavior © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Post-Decision Dissonance and Regret • Feeling of discomfort about whether or not the correct decision was made Post-decision dissonance • Negative feeling that one should have made another purchase, consumption, or disposition decision than one actually did Post-decision regret
  • 3. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Affecting Learning from Experience Motivation Prior knowledge or ability Ambiguity of information or lack of opportunity Processing biases © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Implication of Processing Bias Top dog strategies Underdog strategies Market leader or brand with a large market share Lower-share brand Limitation on learning new information during low motivation is beneficial
  • 4. Instigating learning through comparison during low motivation Blocking exposure to evidence to avoid consumers from getting new information Creating expectations and using promotion to provide actual experience for consumers Explaining experience by reinforcing the messages and encouraging consumers to try the brand © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Judgments Consumers evaluate the outcomes after making acquisition, consumption, or disposition decisions – Satisfaction: Decision meets or exceeds one’s expectations – Dissatisfaction: Decision falls short of one’s expectations Utilitarian and hedonic – Dimensions on which consumers are satisfied
  • 5. or dissatisfied © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Thought-Based Judgments of Satisfaction or Dissatisfaction Can relate to: – Whether consumers' beliefs and expectations about the offering are confirmed or disconfirmed by its actual performance – Thoughts about: • Causality and blame • Fairness and equity © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attribution Theory Describes how individuals find explanations for events Based on stability, focus, and controllability Ways to increase consumers' positive post- decision feelings – Providing value-added services – Using promotions and special deals
  • 6. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Equity Theory Concerns about the fairness of exchanges between individuals Helps in understanding consumer satisfaction and dissatisfaction Perception of inputs and outputs are exchanged between consumers and sellers – Fairness in exchange: Perception that the inputs and outputs of people involved in an exchange are equal © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Satisfaction or Dissatisfaction Based on Feelings Post-decision emotions: Emotions experienced while using or disposing of the acquired brands, products, or services Dissatisfied consumers need to cope with feelings of stress Affective forecasting - Consumers tend to be more dissatisfied when a product:
  • 7. – Fails to perform as they thought it would – Makes them feel worse than they forecasted it would © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Responses to Dissatisfaction Complaining Responding to service recovery Engaging in negative word-of-mouth communication © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Steps to Retain Customers Caring about customers Remembering customers between sales Building trusting relationships Monitoring service-delivery process Providing extra effort © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 8. website, in whole or in part. Disposing of Meaningful Objects • Physical disposal of an item Physical detachment • Emotional disposal of a possession Emotional detachment © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recycling Behavior Depends on: – Motivation – Ability – Opportunity Chapter 10Learning ObjectivesLearning Objectives (continued)� Post-Decision Dissonance and RegretFactors Affecting �Learning from ExperienceMarketing Implication of Processing BiasConsumer Judgments Thought-Based Judgments of Satisfaction or Dissatisfaction Attribution TheoryEquity TheorySatisfaction or Dissatisfaction �Based on FeelingsResponses to DissatisfactionSteps to Retain CustomersDisposing of Meaningful ObjectsRecycling Behavior © 2017 Cengage Learning. All Rights Reserved. May not be
  • 9. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 8 Judgment and Decision-Making Based on High Effort © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Distinguish between judgment and decision- making, and indicate why both processes are important to marketers 2. Describe the types of decisions consumers face in situations where motivation, ability, and opportunity to process are high 3. Identify two types of cognitive decision-making models and understand how consumers make decisions based on brands, product attributes, and gains and losses © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (continued)
  • 10. 4. Explain how affective decision-making models differ from cognitive decision-making models, and discuss the role of appraisals and feelings, affective forecasting, and imagery in high-effort decisions 5. Discuss why, in a high-effort situation, consumers may delay a decision, and show how they make decisions when alternatives cannot be compared 6. Outline the ways that consumer characteristics, decision characteristics, and other people can influence high-effort decisions © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. High-Effort Judgment Processes Judgment: Evaluation of an object or estimation of likelihood of an outcome or event Decision-making: Making a selection among options or activities – Estimation of likelihood – Judgment of goodness or badness • Anchoring and adjustment: Starting with initial evaluation and adjusting it with additional information
  • 11. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. High-Effort Judgment Processes (continued) • Imagery: Imagining an event in order to make judgments – Mental accounting: Categorizing spending and saving decisions into accounts mentally designated for specific consumption transactions, goal, or situations – Emotional accounting: Intensity of positive or negative feelings associated with each mental account for saving or spending © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Biases in Judgment Processes Confirmation Self-positivity Negativity Mood
  • 12. Prior brand evaluations Prior experience Difficulty of mental calculations © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. High-Effort Consumer Decisions Deciding which brands to consider – Options fall under inept set, inert set, and consideration set • Attraction effect: Addition of inferior brands to a consideration set increases the attractiveness of dominant brands Deciding what is important to the choice – Goals – Time – Decision framing © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. High-Effort Consumer Decisions (continued)
  • 13. Deciding what brand to choose – Cognitive decision-making model • Consumers combine items of information about attributes to reach a decision – Affective decision-making model • Consumers base their decision on feelings and emotions Deciding whether to make a decision now Deciding when alternatives cannot be compared © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 8.5 – Types of Cognitive Choice Models © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Brand versus Attribute Models Brand processing Attribute processing Multiattribute expectancy-value model: Type of brand-based
  • 14. compensatory model Additive difference model: Brands are compared by attribute, two brands at a time Conjunctive model: Sets minimum cutoffs to reject bad options Lexicographic model: Compares brands by attributes, one at a time in order of importance Disjunctive model: Sets acceptable cutoffs to find options that are good Elimination-by-aspects model: Similar to lexicographic model but adds the notion of acceptable cutoffs © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Decisions Based on Gains and Losses Prospect theory – Losses have more influence than gains – Endowment effect: Ownership increases the value of an item – Consumers have stronger reaction to price
  • 15. increases than price decreases © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. High-Effort Feeling-Based Decisions Consumers tend to be more satisfied after making a feeling-based decision Emotions aid thought-based decisions Brands can be associated with positive or negative emotions © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Affective Decision-Making Appraisal theory explains: – How one’s emotions are determined by how one appraises the situation – How and why certain emotions can affect future judgments and choices Affective forecasting: Predicts how one will feel in the future Imagery: Consumer imagines consuming a product or service
  • 16. – Plays a key role in emotional decision-making © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Additional High-Effort Decisions Decision delay occurs if the decision is risky, uncertain, or involves an unpleasant task Noncomparable decision: Making decisions about products or services from different categories – Alternative-based strategy: Choice based on overall evaluation – Attribute-based strategy: Choice based on abstract representations of comparable attributes © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Characteristics and Decisions Expertise – Detailed consumption vocabularies
  • 17. Good mood – Allows one to process information and more time to make a decision Time pressure – Leads to consumers’ failure to make intended purchases © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Characteristics and Decisions (continued) Extremeness aversion: Options extreme on some attributes are less attractive than those with a moderate level of those attributes • Compromise effect: Brand gains share as it is an intermediate than an extreme option • Attribute balancing: Picking a brand because it scores equally well on certain attributes Metacognitive experiences: How information is processed beyond content of the decision © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 18. website, in whole or in part. Decision Characteristics Affecting Decision Making Information availability Information format Trivial attributes © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Group Decision Making Individual-alone goals - Goals attained by an individual’s action alone Individual-group goals - Goals achieved based on actions of an individual and a group Chapter 8Learning ObjectivesLearning Objectives (continued)High-Effort Judgment ProcessesHigh-Effort Judgment Processes (continued)Biases in Judgment ProcessesHigh-Effort Consumer DecisionsHigh-Effort Consumer Decisions (continued)Exhibit 8.5 – Types of Cognitive �Choice ModelsBrand versus Attribute ModelsDecisions Based on Gains and LossesHigh-Effort �Feeling-Based DecisionsAffective Decision- MakingAdditional� High-Effort DecisionsConsumer Characteristics and DecisionsConsumer Characteristics and Decisions (continued)Decision Characteristics �Affecting Decision MakingGroup Decision Making
  • 19. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 7 Problem Recognition and Information Search © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Describe how consumers recognize a consumption problem and show why marketers must understand this part of the decision-making process 2. Discuss what happens when consumers conduct an internal search to solve a consumption problem and identify some of the ways in which marketers can affect internal searches 3. Explain why and how consumers conduct an external search to solve a consumption problem, and highlight the main implications for marketing strategy © 2017 Cengage Learning. All Rights Reserved. May not be
  • 20. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Problem Recognition Ideal state – Where individuals want to be Actual state – Where individuals are now © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal Search Searching for information from memory Degree of internal search varies Kinds of information recalled – Brands – Attributes – Evaluations – Experiences © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 21. Brand Recall Consideration or evoked set: Subset of top-of- mind brands evaluated when making a choice – Varies in terms of: • Size • Stability • Variety • Preference dispersion © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Brand Recall (continued) Factors that increase the possibility of consumers’ recalling a particular brand – Prototypicality – Brand familiarity – Goals and usage situations – Brand preference – Retrieval cues © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attribute Recall
  • 22. Accessibility/availability Diagnosticity Salience Vividness Goals © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Is Internal Search Accurate? Confirmation bias – Drawing attention to negatives of competition Inhibition – Consumers do not always consider key aspects – Consumers recall other attributes that are more accessible – Mood • Enhancing the recall of positive attribute information through the use of humor or attractive visuals © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Sources of External
  • 23. Information Retailer Media and social media Interpersonal Independent Experiential Internet © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Processing Influenced by: – Motivation – Ability – Opportunity © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Motivation to Process Information Involvement and perceived risk Perceived costs and benefits Consideration set Relative brand uncertainty Attitudes toward search Discrepancy of information
  • 24. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ability to Process Information Consumer knowledge Cognitive abilities Consumer affect Demographics © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunity to Process Information Amount of information available Information format Time availability Number of items being chosen © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Acquired in External Search
  • 25. Brand name Price Other attributes that are salient and diagnostic Chapter 7Learning ObjectivesProblem RecognitionInternal SearchBrand RecallBrand Recall (continued)Attribute RecallIs Internal �Search Accurate?Sources of External InformationInformation ProcessingMotivation to Process InformationAbility to Process InformationOpportunity to �Process InformationInformation Acquired �in External Search © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5 Attitudes Based on High Consumer Effort © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Discuss how marketers can apply various cognitive models to understand consumers’ attitudes based on high-effort thought processes 2. Describe some of the methods for using the
  • 26. communication source and the message to favorably influence consumers’ attitudes in high- effort situations 3. Identify the emotional foundations of attitudes when consumers' processing effort is high © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (continued) 4. Explain how and why a company might try to change consumers’ attitudes by influencing their feelings 5. Outline the three main factors that lead to a positive overall consumer attitude toward an advertisement 6. Discuss the various elements that can affect whether a consumer’s attitudes will influence his or her behavior © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attitudes Relatively global and enduring evaluation of
  • 27. an object, issue, person, or action Influences thoughts, feelings, and behavior – Cognitive function – Affective function – Connative function © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Characteristics of Attitudes Favorability Accessibility Confidence Persistence Resistance Ambivalence © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 5.1 - Approaches to Attitude Formation and Change © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cognitive Foundations of Attitudes
  • 28. Direct or imagined experience Reasoning by analogy or category Values-driven attitudes Social identity-based attitude generation Analytic processes of attitude construction © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cognitive Responses to Communication Cognitive response: Thought individuals have in response to a communication − Counterargument (CA): Thought that disagrees with the message − Support arguments (SA): Thought that agrees with the message − Source derogations (SD): Thought that discounts or attacks the source of the message © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Expectancy-Value Models Explain how consumer attitudes form and
  • 29. change based on: – Beliefs or knowledge about an object or action – Evaluations of these particular beliefs Theory of reasoned action (TORA): Model that provides an explanation of how, when, and why attitudes predict behavior – Normative influences play a significant role in how people behave © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of the TORA Model Behavior (B): What one does Behavioral intention (BI): What one intends to do – Determined by: • Attitude toward the act (Aact): How one feels about doing something • Subjective norms (SN): How others feel about another person doing something © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 30. Marketing Implications on Changing Consumer Attitudes Strategies for changing attitudes, intentions, and behavior – Changing beliefs – Changing evaluations – Adding a new belief – Encouraging attitude formation based on imagined experience – Targeting normative beliefs © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. • Source credibility - Trustworthiness, expertise, and status • Company reputation • Sleeper effect: Consumers forget the source of a message faster than the message Communication source • Strong argument: Features the central merits of an offering in a convincing manner • One-sided messages: Only positive information • Two-sided messages: Positive and negative information • Comparative message: Direct comparisons with competitors
  • 31. Message How Cognitively Based Attitudes Are Influenced © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Affective (Emotional) Foundations of Attitudes High affective involvement leads to emotional engagement with a stimulus Affective response: Generation of feelings and images in response to a message Emotional appeal: Message designed to elicit an emotional response © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. How Affectively Based Attitudes Are Influenced Source – Attractiveness: Evokes favorable attitudes if a source is physically attractive, likable, familiar,
  • 32. or similar to the consumer – Match-up hypothesis: Idea that the source must match the product or service Message – Emotional appeals - Elicit emotions that attract consumers © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. How Affectively Based Attitudes Are Influenced (continued) – Emotional contagion: Message designed to induce consumers to vicariously experience an emotion – Fear appeals: Stress negative consequences • Terror management theory (TMT): Deals with how individuals cope with threat of death by defending their worldview of values and beliefs © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attitude Toward the Ad (Aad)
  • 33. Whether the consumer likes or dislikes an ad Dimensions – Utilitarian (functional): When an ad provides information – Hedonic: When an ad creates positive or negative feelings © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Do Attitudes Predict Behavior Factors Level of involvement or elaboration Knowledge and experience Analysis of reasons Accessibility of attitudes Attitude confidence Specificity of attitudes Attitude-behavior relationship over time Emotional attachment
  • 34. Situational factors Normative factors Personality variables Chapter 5Learning ObjectivesLearning Objectives (continued)AttitudesCharacteristics of AttitudesExhibit 5.1 - Approaches to Attitude Formation and ChangeCognitive Foundations �of AttitudesCognitive Responses to CommunicationExpectancy-Value ModelsComponents of the TORA ModelMarketing Implications on Changing Consumer AttitudesHow Cognitively Based �Attitudes Are InfluencedAffective (Emotional) Foundations of AttitudesHow Affectively Based �Attitudes Are InfluencedHow Affectively Based �Attitudes Are Influenced (continued)Attitude Toward the Ad (Aad) What Do Attitudes Predict Behavior 1 Chapter 3 How Under Armour Gets Noticed The Nike [http://bi.galegroup.com/essentials/company/306325?u=tlearn_tr l] swoosh may be one of the most recognized logos in the world of sports, but the Under Armour [http://bi.galegroup.com/essentials/company/956606?u=tlearn_tr l] logo (an interlocking U and
  • 35. A) is increasingly in the spotlight as the company gets noticed on and off the field. Founded in 1996 by Kevin Plank, once a member of the University of Maryland’s football team, Under Armour designs apparel and gear to help athletes feel and do their best in hot or cold weather, in sports arenas or on the track. How can a latecomer to a fast- growing industry dominated by global giants such as Nike get noticed? A little-known brand name was only one of Under Armour’s early challenges. Another was that many of its first products (such as undershirts that wick away moisture) were not actually visible to onlookers. In contrast, the logos of competing brands were visible and often prominent on athletic shoes, shirts, and caps. So the company initially positioned itself as “a brand for the next generation of athletes.” Whereas Nike was sponsoring well-known, established athletes, Under Armour’s sponsorships went to up-and-comers known for their dedication and athleticism. Its first endorsement deal was with a Dallas Cowboys football player who had been at University
  • 36. of Maryland with Under Armour’s founder. More recently, the company’s performance apparel has been spotted on endorsers such as Heather Mitts (soccer), Cam Newtown (football), and Derrick Williams (basketball). As its sponsored athletes do well, and their teams win games and even championships, Under Armour’s brand gains attention and visibility. Although not every rising star becomes a sports http://bi.galegroup.com/essentials/company/306325?u=tlearn_trl http://bi.galegroup.com/essentials/company/956606?u=tlearn_trl 2 legend, the brand still gets exposure as these athletes receive media coverage, become established in their sports, and appear in Under Armour ads. Now that the company rings up more than $1 billion in yearly revenue from the sale of clothing, footwear, and accessories for men, women, and children, it can also afford some high-profile deals, such as being endorsed by Tom Brady of the New England Patriots. The Under Armour website features the brand mission—“Make
  • 37. all athletes better”—and puts its “Universal guarantee of performance” in a conspicuous position, offering a full refund if customers are ever dissatisfied with a product for any reason. The diversity of models and athletes on the Under Armour site and in its ads, often shown participating in a sport, invites a broad range of consumers to identify with the brand. The close ties between Under Armour and the University of Maryland have led to additional opportunities for brand and product exposure. To grab attention and sell more team merchandise, college and professional football teams are switching to more fashionable uniforms and gear, with flashier colors and styles. As part of this trend, Under Armour has designed 32 different items for football players at the University of Maryland to wear. Fans, competing teams, and the media can’t help but notice the eye-catching combinations of shirts, pants, and helmets worn by team members on different days—with Under Armour’s now- familiar logo on each item. What’s ahead for Under Armour? The company is expanding into Europe and beyond, relying
  • 38. on distribution and marketing communications to reach more consumers, both casual and serious athletes. It is using social media such as YouTube [https://www.youtube.com/user/underarmour], Twitter [https://twitter.com/UnderArmour], and Facebook [https://www.facebook.com/Underarmour/] to engage consumers, showcase its sports endorsers, https://www.youtube.com/user/underarmour https://twitter.com/UnderArmour https://www.facebook.com/Underarmour/ 3 and increase brand and product visibility. Just as important, new products are in the pipeline, along with new technology that enhances Under Armour’s differentiation.i i Chris Sorenson, “An Underdog with Attitude,” Maclean’s, September 12, 2011, p. 46; Rosemary Feitelberg, “Under Armour’s Unofficial All-Star Team,” WWD, December 1, 2011, p. 12c; Andrea K. Walker, “Under Armour’s Rookie Strategy for Endorsement Deals,” Baltimore Sun, July 25, 2011, www.baltimoresun.com; and “Football or Fashion Show?” New York Times, October
  • 39. 24, 2011, p. 4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 3 From Exposure to Comprehension © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Discuss why marketers are concerned about consumers’ exposure to marketing stimuli and what tactics they use to enhance exposure 2. Explain the characteristics of attention and how marketers can try to attract and sustain consumers’ attention with products and marketing messages 3. Describe the major senses that are part of perception and outline why marketers are concerned about consumers’ sensory perceptions 4. Discuss the process of comprehension, and outline how
  • 40. marketing-mix elements can affect consumer inferences about products and brands © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exposure Consumer comes into physical contact with a stimulus Marketing stimuli: Information about offerings communicated by the marketer or by nonmarketing sources Factors of influence – Position of an ad within a medium – Product distribution – Shelf placement © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selective Exposure Zipping: Fast-forwarding through commercials on a program recorded earlier Zapping: Switching channels during commercial breaks Cord-cutting - Choosing streaming services over cable television
  • 41. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Focal and Nonfocal Attention Focal attention - Consumers focus on a stimulus Nonfocal attention - Consumers are simultaneously exposed to other stimuli Preattentive processing: Non-conscious processing of stimuli – Leads to liking a brand name © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. • Appealing to one’s needs, values, emotions, or goals Personal relevance • Using attractive models, music, and humor Pleasantness Characteristics of Stimulus That Attract Consumer Attention © 2013 Cengage Learning. All Rights Reserved. May not be
  • 42. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. • Using novelty, unexpectedness, and puzzles Element of surprise • Prominence and concreteness of stimuli • Limited number of competing stimuli • Contrast with competing stimuli Easy to process Characteristics of Stimulus That Attract Consumer Attention (continued) © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Perception Determining the properties of stimuli using vision, hearing, taste, smell, and touch Factors in visual perception – Size and shape – Lettering – Image location on package – Color – Appearance of being new or worn © 2013 Cengage Learning. All Rights Reserved. May not be
  • 43. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumers’ Stimuli Perception • Minimal level of stimulus intensity needed to detect stimulus Absolute thresholds • Intensity difference needed between two stimuli before they are perceived to be different • Weber’s law: Stronger the initial stimulus, greater the additional intensity needed for the second stimulus to be perceived as different Differential thresholds (just noticeable difference) • Activation of sensory receptors by stimuli presented below the perceptual threshold Subliminal perception © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Perceptual Organization Process by which stimuli are organized into meaningful units
  • 44. Figure and ground: People interpret stimuli in the context of a background Closure: Individuals’ need to organize perceptions so that they form a meaningful whole © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Perceptual Organization (continued) Grouping: Tendency to group stimuli to form a unified picture or impression Preference for the whole: Perceiving more value in a whole than in combined parts that make a whole – Even if the parts have the same objective value as the whole © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge to Understand: Comprehension Extracting higher-order meaning from what individuals have perceived in context of what is already known
  • 45. Source identification: Determining what perceived stimulus actually is and what category it belongs to © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Knowledge to Understand: Comprehension (continued 1) • Extent to which the consumer accurately understands the message the sender intends to communicate Objective comprehension • What the consumer understands from the message, regardless of whether it is accurate Subjective comprehension © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Inference Brand names and symbols - Create subjective comprehension and inferences
  • 46. Product features and packaging − Product attributes − Country of origin − Package design © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Inference (continued) Price – Culture can influence perceptions of price and quality Message wording Retail atmospherics, display, and distribution Chapter 3Learning ObjectivesExposureSelective ExposureFocal and Nonfocal Attention Characteristics of Stimulus That Attract Consumer Attention Characteristics of Stimulus That Attract Consumer Attention (continued)PerceptionConsumers’ Stimuli PerceptionPerceptual OrganizationPerceptual Organization (continued)Knowledge to Understand: ComprehensionKnowledge to Understand: Comprehension (continued 1)Consumer InferenceConsumer Inference (continued) © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2
  • 47. Motivation, Ability, and Opportunity © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Show how motivation influences high-effort behavior, high-effort information processing and decision-making, and felt involvement 2. Discuss the four types of influences that determine the consumer’s motivation to process information, make a decision, or take an action © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (continued) 3. Explain how financial, cognitive, emotional, physical, and social and cultural resources, plus age and education, can affect the individual’s ability to engage in consumer behaviors 4. Identify the three main types of influences on the consumer’s opportunity to process information and acquire, consume, or dispose of
  • 48. products © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Motivation Inner state of activation that provides energy needed to achieve a goal Consumers can be motivated to acquire, use, or dispose of an offering © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Motivation and Effects High-effort behavior – Drives that bring a goal closer and creates a willingness to spend time and money High-effort information processing and decision-making Motivated reasoning: Processing information in a way that allows consumers to reach the conclusion they want to reach
  • 49. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Motivation and Effects (continued 1) Felt involvement – Consumer's experience of being motivated with respect to products or services, or decisions and actions regarding these – Types of involvement • Enduring • Situational (temporary) • Cognitive • Affective • Response © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Motivation and Effects (continued 2) Objects of involvement – Product or retail category – Experiences – Brands – Ads – Medium
  • 50. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Drivers of Motivation • Something that has direct bearing on self that has potentially significant consequence or implication Personal relevance • Mental view of who one is Self-concept • Abstract, enduring beliefs about what is right or wrong, important, or good or bad Values © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. • Internal state of tension experienced as a discrepancy between current and ideal state (physical or psychological) Need • Outcome one would like to achieve
  • 51. • Can be concrete or abstract and promotion- focused or prevention-focused Goal Drivers of Motivation (continued) © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 2.3 - Maslow’s Hierarchy of Needs © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 2.4 - Categorizing Needs © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Need Conflicts • About acquiring or consuming an offering that fulfills one need but fails to fulfill another
  • 52. Approach-avoidance conflict • About which offering to acquire when each can satisfy an important but different need Approach-approach conflict • About which offering to acquire when neither can satisfy an important and different need Avoidance-avoidance conflict © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Goals and Emotion Appraisal theory – Proposes that emotions are based on individuals’ assessment of a situation or an outcome and its relevance to his or her goals – Posits that emotions are affected by the normative or moral compatibility, certainty, and agency Positive and negative emotions experienced during or after consuming a product or service change in time or get satiated
  • 53. © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Goals and Emotion (continued) Self-control conflicts arise when individuals face decisions about actions related to goals that are in conflict – Self-control: Regulates feelings, thoughts, and behavior in line with long-term goals – Ego depletion: Outcome of decision-making effort that results in mental resources being exhausted © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Implications of Needs and Goals Enhancing motivation to process communications Product development and positioning Encouraging specific behaviors © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
  • 54. website, in whole or in part. Perceived Risk Extent to which the consumer anticipates: – Negative consequences of an action to emerge – Positive consequences to not emerge Tends to be high because of: – New offering – High price – Complex technology – Brand differentiation – Little confidence or experience in evaluation – Opinions of others and fear of judgment © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Perceived Risk Performance Financial Physical or safety Social Psychological Time © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 55. Inconsistency with Attitudes Motivation to process information is: – High when information is moderately inconsistent with one’s attitude – Low when information is highly inconsistent with one’s prior attitude © 2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Ability and Opportunity Ability – Factors that affect consumers' ability to process information and make decision • Financial, cognitive, emotional, physical, social, cultural resources, education, and age Key influences in consumer opportunity – Lack of time, distraction, and the amount, complexity, repetition, and control of information © 2017 Cengage Learning. All Rights Reserved. May not be
  • 56. scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Implication of Enhancing Information Processing Repeating marketing communications Reducing time pressure Reducing time needed for purchase and learn about a product or service Providing information Chapter 2Learning ObjectivesLearning Objectives (continued)MotivationConsumer Motivation �and Effects Consumer Motivation �and Effects (continued 1)Consumer Motivation �and Effects (continued 2)Drivers of MotivationSlide Number 9Exhibit 2.3 - Maslow’s Hierarchy of NeedsExhibit 2.4 - Categorizing Needs Types of Need ConflictsGoals and EmotionGoals and Emotion (continued)Marketing Implications �of Needs and GoalsPerceived RiskTypes of Perceived RiskInconsistency with AttitudesConsumer Ability and Opportunity Marketing Implication of Enhancing Information Processing MKTG-6018 1 OBSERVATION JOURNAL (15%) V I A D I S C U S S I O N B O A R D What is it?
  • 57. • An academic journal is a place for self-examination, speculation, and discussion of ideas—your own and those of others. It is an opportunity for dialogue with yourself. Your academic journal should be focused toward this course. • Use the journal to record responses to reading and preparation for class each week. Make summaries or analyze some specific texts. Try making connections between the ideas from class/readings and related experiences. • The point of keeping a journal in a college course is to find a way to engage the subject matter of the course over the progress of the semester—in essence, to build on your own encounters with subject matter over an extended period of time. What and when to write • You should write on a regular basis (at least once a week) and as preparation for class each week. • Field observations should be clearly labeled with the date, the location, and the focus of the observation. • Include your experiences, list in this journal -- including people’s name, location of observation, and date of observation. • Be ambitious! Ponder thoughtfully; then write. • You may include sketches, photos, interviews, etc.
  • 58. Writing style • I will be concerned with your ability to explain and present your ideas rather than with the formality or technical precision of your writing. • Entries should be legible (at minimum) • Develop your thoughts as fully as possible. • And remember class members will read your observations and you might have an impact upon their lives. 2 Evaluation • Entries will be evaluated for their quality of communication. • If you deal regularly and effectively with the materials for class in the journal (including the assigned topics), you will receive a B on the journal. If entries show strong evidence of grappling with issues, of a quest for understanding, and/or of effort to develop and support views, you will receive an A on the journal. • Journals will be collected and evaluated throughout the semester. o Completeness on an ongoing basis
  • 59. o Quality of presentation o Depth of observation and insight o Evidence of reflection on class topics Via Discussion Board MKTG-6018 Rubric for Journal Writing Task Description: Criteria w ei gh t Exemplary Yes (4-5) Accomplished Yes, but (2-3) Developing No, but (1) Beginning No (0) Retelling of Experience
  • 60. 20% experience observations during experience organized with logical sequence experience experience easy to follow explanation of experience ve observation of experience experience -objective
  • 62. Experience 20% different contexts; relates observations to classroom concepts and/or personal experiences observations to classroom concepts and/or personal experiences reference to what is said in class or to personal experience what is heard in class or personal experiences Analysis of Experience 20% meanings
  • 63. thinking expressed of the time deeper meanings expressed made level meaning expressed rences are made reflection on assignment critical thinking Effort on Assignment 20%
  • 64. on assignment parts of the assignment assignment assignment Assignment Score __________/25____ + Holistic score __________/10____ = Final Score