Marketing 4 Ultimate Summary.

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- Personality: human psychological traits, leading to consistent and enduring responses to environmental stimuli

- Brand personality: specific mix of human traits that attribute to particular brand.

5 brand personalities:

- Sincerity (down to earth, honest, cheerful)

- Excitement (daring, spirited, imaginative, up to date)

- Competence (reliable, intelligent, successful)

- Sophistication (upper class, charming)

- Ruggedness (outdoorsy, tough)

- Lifestyle: a person’s pattern of living, expressed in activities/interests/opinions

- Need becomes motive when aroused to a sufficient level of intensity to drive consumer to act in order to reach a desired goal.

- (Herzberg’s theory: two-factor theory. Distinguishes dissatisfiers and satisfiers; absence of dissatisfiers is not enough motivation to purchase.)

- Perception: the process by which we select/organize/interpret information inputs to create a meaningful picture of the world.

- Stimuli people will notice:

- Stimuli related to a current need

- Stimuli anticipated.

- Stimuli whose deviations are large in relationship to the normal size of the stimuli (Weber’s law)

- Selective distortion: tendency to interpret information in a way that fits our perceptions. Consumers will often misinterpret information to be consistent with prior brands and product beliefs/expectations.

- Subliminal perception: selective perception mechanisms require consumers’ active engagement and thought. Marketers embed covert, subliminal messages on packaging and ads.

- Hedonic bias: people have a tendency to attribute success to themselves and failure to external causes

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- Brand association: brand-related thoughts/feelings/perceptions/images/experiences/beliefs/attitudes/etc. that are linked to the brand node.

- Perspectives on consumer behavior:

- Behaviorists perspective: focuses on the impact of external influences on consumer behavior.

Classical conditioning: known response and neutral response to create response for a product

Operating conditioning: positive rewarding

- Information-processing perspective: how consumers mentally process/store/retrieve/ use marketing information in the decision process.

Ongoing cognitive process and problem solving:

- Emotional perspective: consumer affections (emotional responses) should be included in the explanation of consumer decision-making.

- Cultural perspective: marketing is a value transmitter that shapes culture and is shaped by it. Marketing is the channel through which cultural meanings are transferred to consumer goods.

- Multi perspective:

- Buying process (five stages model):

- Problem recognition:

- Problem/need is triggered by internal/external stimuli

- Occurs whenever a consumer recognizes a difference between current state and desired state

- Information search (4 major sources)

- Personal: friends, family, neighbors

- Commercial: advertising, websites, salespeople

- Public: mass-media, consumer-rating organizations

- Experiential: handling/examining/using the product

-> Internal vs. External Search:

- Internal search: scanning memory to assemble product alternative information.

- External search: obtaining information from ads, retailers, catalogs, friends, family, people-watching, web sites

→ Do consumers always search rationally?

- Some consumers avoid external search, especially with durable goods and minimal free time

- Symbolic items require more external search

- Brand switching: select familiar brands when decision situation is ambiguous

- Variety seeking: desire to choose new alternatives over familiar ones

- Evaluation of alternatives (3 steps)

- Identify consideration set

- Narrow list and compare pros and cons

- Use evaluation criteria to decide among remaining choices

Product choice:

- May ultimately be based on heuristics -> represent rules of thumb on brand loyalty, country of origin and liking (E.g. higher price = higher quality; same brand as mother bought)

- Country of origin:

Own country’s products are rated more favorably

“Industrialized countries make better products than developing countries”

Attachment to own versus other cultures

1. Consumer tries to satisfy need

2. Consumer looks for certain benefits from the product solution

3. Consumers sees each product as bundle of attributes, with varying abilities for delivering benefits to satisfy needs

- Belief: descriptive thought a person holds about something

- Attitude: favorable or unfavorable evaluation, emotional feeling and action tendencies towards some object/idea