Lecture 1- Introduction and framework
The mere exposure effect
Experiment: Zajonc presented participants with fake Chinese symbols. Each symbol
was presented between 1 and 25 times. After the presentation participants rated
each symbol. Results show participants liked the symbols that were presented
more frequently more, as they started to learn and understand them Works the
same with branding, called mere exposure.
Mere exposure= As we see brands more, we like them more. This is why we buy
brand products more than non-brand products.
Example: Stock names that look like the name of the real brand are bought more
often than those that have random code names.
Consumer behaviour
Consumer behaviour= Dynamic interactions of affect, cognition and behaviour with
events in the environment that are associated with the exchange aspects of human
life.
Consumers= Any identity that you can affect. Individual, group, organization etc.
Model: You want to change the behaviour of a person by using products, services,
ideas and experiences and their related stimuli. These stimuli lead the consumer to
think something about the stimuli. These thoughts then cause the consumers to
behave in a certain way. On the other hand, the stimuli can also be understood and
thus cause cognition which can also affect your behaviour. Cognition can also cause
you to have an affect towards the stimuli and then change your behaviour.
Example: When you walk in a restaurant and it smells in there, you are unlikely to eat
there.
Example: When you like how Ryan Reynolds looks, you will also start to like other
aspects of him which are not necessarily the case, such as starting to like his
personality even though he is not a nice person.
,Questions consumer behaviour can answer:
Are low-calorie foods perceived as healthy?
Do attractive product endorsers improve product image?
How does mood impact consumers’ product evaluations?
Etc.
Consumer puzzle= When consumers behave irrationally.
Example: Apple is the most expensive brand on the marketplace for laptops, but still
bought the most as well. Explanation: You didn’t take the time to compare other
laptops, so you just bought it because of the colour for example.
Who study consumer behaviour?
Marketers
Social organizations
Public policy makers
Consumer decision process
How do we decide between a variety of products? Consumer decision process model.
1.Need Recognition
Need recognition= Recognizing that you need something.
Need= The gap between your desired state and your actual state. Marketing
changes your desired state. Your actual state may be your desired state, but then
marketing aims to make you desire something new.
Desires can change:
- Life stage changes
- New tastes
- New technologies
Your actual state can also change, which also brings your desired state down. This
can be caused due to:
- Stock depletion= Something ended or is finished
- Problem removal= You broke something
- Problem avoidance= Buying insurance, you buy it with the goal of not needing it
,2.Search for Information
Information can be retrieved/searched:
Internally= Retrieval from what you already have stored in memory.
- EG: You always buy Lays so you buy it again without thinking about it.
Externally
- Marketer sources= Advertising, company websites, stores, salespeople,
brochures. Firm generated this to pass their product to consumers.
- Non-marketer sources= Other consumers, consumer organizations, government
and media. Your WOM.
- Influencers= In between
Information processing happens like this:
There are two types of information searching:
Heuristic search (intuitive/simple) Systematic search (deliberate/effortful)
(buying tooth paste) (buying a house)
-Ad-hoc -Organized
-Convenience-based -Comprehensive
-Relies on rules of thumb -Effortful
Used in contexts with: Used in contexts with:
-Less risk -More risk
-Low level of involvement -High level of involvement
-More knowledge (the more knowledge you -Less knowledge (you do more research)
have of a task, the less you think of that -More time (to think about it)
task)
-Less time (to make the decision)
Consideration of options (like an onion):
Universal set= All possible options
Awareness set= Options one is aware of. Probability that it is in your awareness set
is higher if it is at eye level. It also needs to be at least sold in your store and you
need to attend to it.
Evoked set= Options one can recall. The brand needs to be a brand that at least
evokes some reaction.
Consideration set= Options one will consider. The options you will actually consider
to buy. The set of brands actively considered at the time of choice.
, Two most important laws of marketing:
1. In order for a customer to choose action A (Brand A), Brand A must be considered.
2. In order for a customer to choose action (brand A), the customer must fail to
consider a brand he/she likes better than brand A.
Choice outcomes are far more influenced by content of consideration set than by
processing of considered alternatives.
Mental categories and co-occurrence in consideration set:
Competition is always first between two categories and then between two brands. So if
someone is maybe buying a sandwich (major sub), then the major brand there is Subway and
the minor brand the toasty on campus. For Burger King, they are in a difficult position,
because they first need to lead someone who actually wanted a sandwich to the Minor sub
and then to choose the minor brand, as McDonald’s comes first.
3.Pre-purchase evaluation of alternatives
Evaluation of alternatives can be done in two ways:
Compensatory models (systematic)
You attribute importance to different features of the product type. Such as 60%
importance to the screen size of a phone, 20% to the battery and 20% to consumer
rating.
Non-compensatory models (heuristic)
You attribute all importance to one feature of the product type. Such as 100%
importance to screen size and 0% to other features.
The mere exposure effect
Experiment: Zajonc presented participants with fake Chinese symbols. Each symbol
was presented between 1 and 25 times. After the presentation participants rated
each symbol. Results show participants liked the symbols that were presented
more frequently more, as they started to learn and understand them Works the
same with branding, called mere exposure.
Mere exposure= As we see brands more, we like them more. This is why we buy
brand products more than non-brand products.
Example: Stock names that look like the name of the real brand are bought more
often than those that have random code names.
Consumer behaviour
Consumer behaviour= Dynamic interactions of affect, cognition and behaviour with
events in the environment that are associated with the exchange aspects of human
life.
Consumers= Any identity that you can affect. Individual, group, organization etc.
Model: You want to change the behaviour of a person by using products, services,
ideas and experiences and their related stimuli. These stimuli lead the consumer to
think something about the stimuli. These thoughts then cause the consumers to
behave in a certain way. On the other hand, the stimuli can also be understood and
thus cause cognition which can also affect your behaviour. Cognition can also cause
you to have an affect towards the stimuli and then change your behaviour.
Example: When you walk in a restaurant and it smells in there, you are unlikely to eat
there.
Example: When you like how Ryan Reynolds looks, you will also start to like other
aspects of him which are not necessarily the case, such as starting to like his
personality even though he is not a nice person.
,Questions consumer behaviour can answer:
Are low-calorie foods perceived as healthy?
Do attractive product endorsers improve product image?
How does mood impact consumers’ product evaluations?
Etc.
Consumer puzzle= When consumers behave irrationally.
Example: Apple is the most expensive brand on the marketplace for laptops, but still
bought the most as well. Explanation: You didn’t take the time to compare other
laptops, so you just bought it because of the colour for example.
Who study consumer behaviour?
Marketers
Social organizations
Public policy makers
Consumer decision process
How do we decide between a variety of products? Consumer decision process model.
1.Need Recognition
Need recognition= Recognizing that you need something.
Need= The gap between your desired state and your actual state. Marketing
changes your desired state. Your actual state may be your desired state, but then
marketing aims to make you desire something new.
Desires can change:
- Life stage changes
- New tastes
- New technologies
Your actual state can also change, which also brings your desired state down. This
can be caused due to:
- Stock depletion= Something ended or is finished
- Problem removal= You broke something
- Problem avoidance= Buying insurance, you buy it with the goal of not needing it
,2.Search for Information
Information can be retrieved/searched:
Internally= Retrieval from what you already have stored in memory.
- EG: You always buy Lays so you buy it again without thinking about it.
Externally
- Marketer sources= Advertising, company websites, stores, salespeople,
brochures. Firm generated this to pass their product to consumers.
- Non-marketer sources= Other consumers, consumer organizations, government
and media. Your WOM.
- Influencers= In between
Information processing happens like this:
There are two types of information searching:
Heuristic search (intuitive/simple) Systematic search (deliberate/effortful)
(buying tooth paste) (buying a house)
-Ad-hoc -Organized
-Convenience-based -Comprehensive
-Relies on rules of thumb -Effortful
Used in contexts with: Used in contexts with:
-Less risk -More risk
-Low level of involvement -High level of involvement
-More knowledge (the more knowledge you -Less knowledge (you do more research)
have of a task, the less you think of that -More time (to think about it)
task)
-Less time (to make the decision)
Consideration of options (like an onion):
Universal set= All possible options
Awareness set= Options one is aware of. Probability that it is in your awareness set
is higher if it is at eye level. It also needs to be at least sold in your store and you
need to attend to it.
Evoked set= Options one can recall. The brand needs to be a brand that at least
evokes some reaction.
Consideration set= Options one will consider. The options you will actually consider
to buy. The set of brands actively considered at the time of choice.
, Two most important laws of marketing:
1. In order for a customer to choose action A (Brand A), Brand A must be considered.
2. In order for a customer to choose action (brand A), the customer must fail to
consider a brand he/she likes better than brand A.
Choice outcomes are far more influenced by content of consideration set than by
processing of considered alternatives.
Mental categories and co-occurrence in consideration set:
Competition is always first between two categories and then between two brands. So if
someone is maybe buying a sandwich (major sub), then the major brand there is Subway and
the minor brand the toasty on campus. For Burger King, they are in a difficult position,
because they first need to lead someone who actually wanted a sandwich to the Minor sub
and then to choose the minor brand, as McDonald’s comes first.
3.Pre-purchase evaluation of alternatives
Evaluation of alternatives can be done in two ways:
Compensatory models (systematic)
You attribute importance to different features of the product type. Such as 60%
importance to the screen size of a phone, 20% to the battery and 20% to consumer
rating.
Non-compensatory models (heuristic)
You attribute all importance to one feature of the product type. Such as 100%
importance to screen size and 0% to other features.
