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Consumer Behavior

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Consumer Behavior

Assignment 1 Activity | Community | Observations | | | | | | | | | | | | | | | | | | | | | |

* Marketing Manipulation : Market manipulation describes a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency.[1] Market manipulation is prohibited in the United States under Section 9(a)(2)[2] of the Securities Exchange Act of 1934, and in Australia under Section s 1041A of the Corporations Act 2001. The Act defines market manipulation as transactions which create an artificial price or maintain an artificial price for a tradeable security.

* Hobby -> product

* Perception = view, opinion, taste, feeling, sound(hearing), touching, smell -> Sensory Stimulation
Smell – Nose
Touch – Skin
See – eyes
Sound – ears
Tastes – Mouth * Expose to products -> attention -> Interpretation * Associating with sensory stimuli

* Percepting * 1. Sensory Marketing
Sample of perfumes [ Smell ]
Music (in Zara – club music) [ Sound ] * Subliminal Messaging : Subliminal stimuli (pronounced /sʌbˈlɪmɨnəl/, literally "below threshold"), contrary to supraliminal stimuli or "above threshold", are any sensory stimuli below an individual's absolute threshold for conscious perception. Visual stimuli may be quickly flashed before an individual may process them, or flashed and then masked, thereby interrupting the processing. Audio stimuli may be played below audible volumes, similarly masked by other stimuli, or recorded backwards in a process called backmasking. Introduced in 1895, the concept became controversial as "subliminal messages" in 1957 when marketing practitioners claimed its potential use in persuasion. The near-consensus among research psychologists is that subliminal messages do not produce a powerful, enduring effect on behavior;[1] and that laboratory research reveals little effect beyond a subtle, fleeting effect on thinking. Apart from their controversial use in marketing and media psychology, subliminal stimuli are employed in scientific research on perception without awareness, or unconscious perception.

Online Self-Sampling (Vision)
Product Sampling @Grocery, cafe (Taste)
Cosmetic Products (Touch)
Electronic Stores – Apple (Touch)
Cloths Shoes..

What Are your top 3 Favorite and non favorite smells?



* I don’t like much of perfumes * Sensory overload (sometimes abbreviated to SO), related to Cognitive load in general, is a condition where one or more of the senses are strained and it becomes difficult to focus on the task at hand. The term is commonly (but not exclusively) used in the context of autistic/spectrum disorders, though it may appear in neurotypical children. It may be necessary for only one sense to be bombarded by stimuli to affect that sense as well as the other senses and the thinking process. The most common type occurs when more than one sense is stimulated. For example, a person might be watching television when someone comes in and asks a question; the watcher might fail to respond because he or she simply does not register it, or realizes the question has been asked but gets confused and doesn't know whether to answer the question or concentrate on the television.

* Psychophysics: the science of how environment is affecting our personal thoughts / word Psychophysics is a discipline within psychology that quantitatively investigates the relationship between physical stimuli and the sensations and perceptions they effect. Psychophysics has been described as "the scientific study of the relation between stimulus and sensation"[1] or, more completely, as "the analysis of perceptual processes by studying the effect on a subject's experience or behaviour of systematically varying the properties of a stimulus along one or more physical dimensions".[2] Psychophysics has important applications on digital signal processing, by helping develop models and methods of lossy compression of audio and video in a way that the mind perceives very little loss of signal quality. * Absolute Threshold: The minimum amount of stimulation In neuroscience and psychophysics, an absolute threshold is the smallest detectable level of a stimulus.[1] However, at this low level, subjects will sometimes detect the stimulus and at other times not. Therefore, an alternative definition of absolute threshold is the lowest intensity at which a stimulus can be detected 50% of the time.[1] The absolute threshold can be influenced by several different factors, such as the subject's motivations and expectations, cognitive processes, and whether the subject is adapted to the stimulus.[1] The absolute threshold can be compared to the difference threshold, which is the measure of how different two stimuli have to be in order for the subject to notice that they are not the same.[1] * Different Threshold: The ability of your sensory system to detect differences between 2 stimuli. * JND(Just Noticeable Differences) : Perceptual Filter, In psychophysics, a just noticeable difference, customarily abbreviated with lowercase letters as jnd, is the smallest detectable difference between a starting and secondary level of a particular sensory stimulus.[1] It is also known as the difference limen or the differential threshold. * Weber’s Law : 베버의 법칙[ Weber’s law ] : one of the stimuli to be the strongest in order to make the JND, Ernst Heinrich Weber (1795–1878) was one of the first people to approach the study of the human response to a physical stimulus in a quantitative fashion.[2] His law states that the just noticeable difference between two stimuli is proportional to the magnitude of the stimuli. Gustav Theodor Fechner (1801–1887) later offered an elaborate theoretical interpretation of Weber's findings, in which he attempted to describe the relationship between the physical magnitudes of stimuli and the perceived intensity of the stimuli. Fechner's law states that subjective sensation is proportional to the logarithm of the stimulus intensity. 자극의 강도에 관하여 독일의 베버가 발견한 법칙으로 같은 종류의 두 자극을 구별 할 수 있는 최소 차이는 자극의 강도에 비례한다고 하는 법칙.
여러 감각을 대상으로 수행된 많은 연구에서 표준 자극(S)의 강도가 클수록 최소 식별 차이(JND)도 증가하며, 아주 넓은 범위에 걸쳐 표준 자극에 대한 최소 식별 차이의 비율이 일정(K)하다는 것을 발견하였습니다. 이 법칙은 보통 K(베버비)=JND/S의 형태로 표현됩니다. * Priming Stimuli : Finding Several stimuli that evoke one another
* Object (main image that speaks) * Sign (message for our senses) * Icon (product, identification) * Index (symbol of the product that shares its identity) * Symbol (sign that is related to product through countries)

* Hyper Reality : new relationship between two different perception -> new idea

2nd Lesson

* Learning : permanent behavior by experience * Incidental Learning : accidental learning

* observational learning * Cognitive learning

* Behavioral Learning Theories * Stimulus -> Consumer -> Response

* Classical Conditioning : 파블로 개 실험, 빅맥 – taste, smell * Unconditioned Stimulus -> unconditioned response * Eg) Stimuli that cause response naturally = meat powder in Pavlov experiment , unconditioned response = salivation * Unconditioned stimulus + Neutral Stimulus -> Unconditioned response * By repeating ↘ Conditioned Stimulus ↘conditioned response * Asuumed to be under control of the autonomic nervous system * Eg) Celebs on Ad., Christmas music in a toy department -> Christmas spirit -> purchasing gift * Esp, low involvement situation (저관여 상품) * High involvement – athletic shoes by teenagers * Instrumental Conditioning : operant, conditioning * Result -> positive * Operation Performed after Behavior * Positive Reinforcement : present positive consequences increase the probability of behavior * Negative Reinforcement : Remove aversive consequences increase the probability of behavior * Extinction : Neutral Consequences occur Decrease the probability of behavior * Punishment : Present aversive consequences Decrease the probability of behavior

* Vicarious Learning * Model Performs behavior and experience consequences Observer sees modeled behavior and consequences Observer performance of modeled behavior may increase or decrease depending on modeled consequences * Cognitive Learning * Direct personal use experience eg) sample * Vicarious product experiences eg) interpret product-related information

* Marketing Application of Repetition * Repetition ↑ - Learning ↑ * Exposure ↑ - Brand awareness ↑ * Too much -> advertising wear out * Stimulus generalization * Conditioned stimulus to evoke similar unconditioned * Family branding * Product line extension * Licensing ex) Hello Kitty -> you cannot use it without permission * Look-alike packaging

* Cognitive Learning Theories – Observational Learning * We watch others, model behavior * Family Brandings Ex) Benefit -> Brow-bar, Apple, Cosmetic * The observational Learning Process * Modeling : imitating others’ behavior * Attention -> Retention -> Production process -> Motivation -> Observational Learning * Role of memory in Learning * Information – processing approach : external inputs -> encoding -> storage -> retrieval * How info gets encoded * Encode * Types of meaning * Sensory meaning * Semantic meaning : symbolic associations * Episodic memories * Narrative memories

* The memory process * Sensory Memory -> attention -> short-term memory -> elaborative reneaspsal -> long-term memory

* Exercise1. : choose the brand you like most and list 3 benefits, 3 attributes, 3 competitors, 3 attributes of competitors * Samsung * 1. Trustful 2. Stability 3. Easy * 1. Service 2. A/S 3.Popularity * What are the classical conditionings and instrumental conditionings in this exercise? * 2. List of companies’ slogan and guess the companies’ name
Gather around the good stuff -> pizza hut
Touching Lives, improving life -> P&G
The ultimate driving machine -> BMW
Where dreams come true -> Disney

* Memory systems to store and retrieve information -> 2 basic measures * Recall * Retrieval

* What makes us forget? * Familiarity * Visual VS Verbal memory * Saliene / von restorff effect * State – dependent retrieval * Encoding = filtering * Storage = how sensory memory -> short term memory -> long term memory * Retrieval

* Measuring Memory for marketing stimuli : Recognition VS Recall – 2 basic measures of impact

* Marketers uses classical conditioning and instrumental conditioning – DIFFERENCES !!!

3rd class

* Motivation Process * Refers to the process that leads people to behave as they do when need is aroused * Needs – biogenic, psychogenic, utilitarian (실용의, 실리의), hedonic(쾌락의, 향락의)

* Motivational Strength : degree of willingness to expend energy to reach a goal * Drive Theory Ex) Hunger * Expectancy theory

* Motivational Conflicts * Goal Valence (value) : consumer will approach positive goal, avoid negative goal * Types of motivational conflicts 1. Approach – Approach ex) influence, consistency, you have to choose between 2 lovely choices 2. Approach – Avoidance ex) cigarette - cancer 3. Avoidance – Avoidance ex) no test – cheating, HW – Fail, Fix car – buy car, you have to choose btw these whether good or not.

* Consumer Motivation * Personal Involvement (Very low, Very high, Very strong bond) * Marketing Massage (Message involvement) * Purchase situation * Cultural values

* Motivational Goal Need 3 Needs ->>>>>>>>>>>>>>>>>>>>>>> WANTS * 1. Utilitarian : Functional needs ex) toothpaste * 2. Hedonic : Experience, Fantasy, Emotional response * 3. Psychogenic = status, power, (show off) * Need for achievement : Luxury brands Affiliation : facebook Power : Cars Uniqueness : perfumes, clothing * Maslow hierarchy

* Motivational Strengths * Motivational Energy – level used * Homeostasis (항상성) – goal oriented * Expectancy Theory – Positive incentives ex) Missoni launched popup stores – sales , free samples * Cognitive Dissonance (지각적 불일치) : Needs VS Consistency * Needs influence Purchases * Physiological * Safety * Social * Esteem * Self-Actualization

* Inertia Needs – Passionate Needs

* Values 1. Cultural values 2. Product specific value ex) L’Oreal Mascara 3. Consumption specific value ex) cigarette 4. Terminal value goal – help to achieve ex) make up -> beautiful , goal = beauty 5. Instrumental Value : composed action leading you ex) why you purchase good quality wine – name, status…,(components)

4th class

* Self-Concept - Attributes & Evaluation of those qualities * Content : Facial attractiveness VS Mental * Positivity OR Negativity (Self-esteem) * Intensity OR Stability * Accuracy

* Exercise 1. What are the descriptions about you?
Clumsy, sports, rice-cake, music, party, clothes, dress, sister, kind, white, elegance, smart, bright, endeavoring, responsibility healthy

Make the top 5 of your description.

If you remove top 3 of them, is it possible to define you?

* Ideal Self

Actual Self ex) people who has low self-esteem

* Impressionistic Management * Easy to use ex) apple * Trendy, fashionable ex) UGG, Make –up, beauty products.. * Fantasy management ex) Ck underwear Ad, 영화나 드라마에서의 간접사용

* Role Identity : Role Consumption

* Virtual Identity : by e-mail, facebook

* Looking Glass Self : subconscious behavior ex) 어떤 사람들을 만나는가에 따라 나의 언어, 행동이 그들을 따라하고 있는 것을 발견할 수 있음.

* Identity Marketing : for women, bags, accessories are representing about her, including Attachment !!!!, Tattoo, which are show me.

* Symbolic self completion theory ; Self image congruence (일치, 적합, 조화, 적합성) * Relevancy lies in ideal self * Actual self Ideal Self

* Extended self ( not only behavior but also look) 1. Individual level : you are what you wear 2. Family level : house , furniture 3. Community level : neighborhood, home-town, friends 4. Group level : religion, sports team, clubs

* Gender Marketing
Man – power
Woman – beauty

* Sexual Marketing

* 2. What are the descriptions of your ideal person?

5th Class

1. Pleasure Principal 2. Superego : Sub-consciously doing 3. Ego

Pleasure Principal ego superego

CF) Memory System

1. Brand Personality (Conception) 2. Brand Equity (Trendy, oldfashion, vintage, wholesome) 3. Anisism (Animate or give life to inanimate object)

Lifestyle Pattern
Pattern (Tastes, Repeat Feelings, Emotions, Places, Status) -> Consumption Styles
Lifestyle – As a student, family, social, work, association

Psychographic information 1. Define Target market (Pattern of Lifestyle) 2. Create New view of Market 3. Position Product (Research) 4. Develop Strategy 5. Market Social/ Political Issues
How to do Segmentation
(Value , Attitudes, Lifestyles) * Innovators : Leading edge of change, highest income, high self-esteem, abundant resources, image is important to them as an expression of taste, independence and character. Consumer choices are directed toward the finer things in life. * Thinker : high resource group of those who are motivated by ideals, mature, responsible, well-educated professionals. Leisure activities enter is their home, high income but practical consumers and rational decision makers. * Believers : low resource group, motivated by ideals, Conservative and predictable consumers who favor American products and established brands. Their lives are centered on family, mosque, community and nation. Modest income. * Achievers : high resource group motivated by achievement, successful work-oriented people who get their satisfaction from their jobs and families, politically conservative, respect authority and status, they consume showing off * Strivers : low-resource group motivated by achievement, similar value to achievers but fewer economic, social, psychological resources, Style is extremely important to them as they strive to emulate people they admire * Experiencers : high resource group motivated by self-expression, youngest of all segments, median age 25, have lots of energy that pour into physical exercise, social activities. They are avid consumers spending heavily on clothing, fast-food, music, youthful favorites, emphasis on new products and services. * Makers : low resource group motivated by self-expression, practice people who value self-sufficiency, focused on familiar family, work, physical recreation and have little interest in the broader world. They appreciate practical and functional products. * Survivors : lowest income, too few resources to be included in any consumer, self-orientation , Oldest median age 61, with in their limited means, they tend to be brand-loyal consumers.

Co-Branding * 기존에 있던 것을 조금 변형?

Lifestyle profiling

Decision Making
Types of Decision Making 1. Emotional 2. Rational 3. Irrational – Impulse but 4. Time-line
Process of 1) Problem Recognition 2) Information search 3) Evaluation process 4) Product Choice

Positive Reinforcement

Negative Reinforcement

Mindless Decision (emotional , impulse, irrational)

4 Dimensions of TIME 1. Social Dimension 2. Temporal Situation 3. Planning Orientation – reservation, birthdayparty 4. Polychronic Orientation dimension - multi tasking

When and Why – go shopping 1. Social Experience 2. Personal Activity 3. Observational Learning 4. Thrill of the HUNT / CHASE

Social Experience

Shared Interests – personal activity

Interpersonal Interaction – instant status, Thrill of the HUNT / CHASE



Reference Group -------- social power, buying power 1. Informational 2. Utilitarian 3. Value-expresive

Power 1. Refrent Power – Asking to buy 2. Information 3. Legitimat – legal right safe 4. Expert – criticize 5. Reward 6. Coercive – celebrity affects

3 types of Reference Group

1. Normative Influence – Family 2. Comparative incluence – club, association, group status 3. ???????????? Comparative Influence : friends, association, clubs.

Brand Communities * BMW VIP Marketing

Different Communication
Word of mouth
Consumer Tribes
Tribal Marketing

2011/ 11/ 07

What you spent money in weekends
Friday night – Sunday night
Ranking orders that are important
Brand names, where, what you buy, specifically

Coffee – starbuck, cafe



Entertainment, basic food

Disposable payments

Comparing to executives eramus students – 10 yrs experienced in biz
Could be increased – clothing, entertainment,

International college students * Tourism * Entertainment

Needs to buy

Based on Income class

4 religions :
Christan : alchol, cigarette
Muslim : pork, alcohol, (Beef, sheep)
Buddism : beef, peppers, cigarette, alchol, galic, pork, (vegan, candles, oil)
Jewish :
Confusianism :

Religious market -> deco, food, celebration day

* Willingness and Needs to buy

* De-ethnicization

* Consideration to make a target market

* 3 sub-cultures – Subcultures that play a role in marketing product – achieve and ascribed status 1. Income – socio class : disposable income 2. Ethnic - Religionn 3. Age – which generation

* Baby-boomer (born btw 1946 and 1965) : brand loyalty, risk-averse, hesitate to try new things, job-holders, involved more in sub-culture such as religion

* Generation X : lazy, don’t want to work hard, dependent on parents, least work most money, looking to maintain situation,

* Generation Y

* Twins (between adolescence and adult)

* Why do we make new age market - Teenagers today is evolved comparing to past teenagers.

* Technology – attachment , music, start smoking, nostalgic - ,

* Association group : school club, sports,

What was cool ex ) legos,

Norms & Cultural views
Cultural Believes
Trust : those who betray others trusts are viewed as outsiders and eliminated from the game
Sharing : food is shared amongst them and is sacred

Children tell their parents what to buy for birthday
Grooming them for future purposes ( Attachment with brand)
The advertisements that are coming up now are all aimed at marketing to children.

how marketers use the differences between social classes and how they measure????

1. Culture : Societies Personality (It shapes our identity ) 1) Ecology : the way in which the culture adopts to its habitats : eg) if on lives in a froest, we don’t need to make fire, or if living in a cold area, what will we need.
How a culture adapts to the habitat

2) Social structure : the way in which societal is maintained eg) Tokyo people live in high * Based on where you live 3) Ideology : the way in which you adopt to the environment because the social groups you belong to. Eg) what is your ideology of a wooden house? Cost? Etc? – it involves environment and social groups – system and beliefs that are forms based on the environment they are living in

2. Myths : Stories that express a cultures’ values ( marketing Messages)
Eg) santa claus for Xmas – having a notion of good luck / bad luck (eg drinking/eating something from broken cups or looking oneself in a broken mirror, or numver 4 in china is bad luck)

3. Rituals : consumptions activities (Holiday Observation, gromming, Gift giving eg) Halloween, grooming eg) shaving hair, waxing eyebrows, Weddins, Funeral, Baptisms, Baby –showers,
Football ( Beer, Flags, Barbecues, blankets,
Blood Maryls

Signature Gifts eg) a specific brand ( it’s a gift giving ritual , eg) perfumes
Mareketers see this as a ECONOMIC EXCHAGE
In wedding it is called a SYMBOLIC CHANGE hav a good life



Set apart

Sacred consumption : set apart from the ordinary
Eg ) having a statue of Mary and Jesus in a house, bracelet with a name on it
Eg) white clothes for the baby, jewelleries, it is like a rite of passage

Profane : eg) buying the baby a t-shirt, normal, Based on rites of passage, generic, ordinary Sacred events : a part of history, time, emotional ties, freedom, generational branding, convenience, nature, friendship, relaxation

Sacred -> profane
Profane -> Sacred ? How.

Sacred events
Eg) a part of history, time, emotional ties, freedom, generational bradnig, convenience, nature, friendship, relaxation

It is about “what are we geeting from the event”??? eg ) camping

Gift Giving : ????????????????????????????????????????????????????

Global Marketing

What are the differences



오프리윈프리 show * Not yet branching out globally

* Purely informational * Communication

Where does culture come from? * Influence of inner-city teens * Hipho/black urban culture * Outsider heroes, anti-oppression messages, and alienation of blacks * Flavor on the streets

TV, Megazines, Internet,

How can we know “what’s in” * Main street, shops

How analyze what is in different countries * Past Trends * Climate * Openness * Culture

Two different Types of Culture 1. High Culture : made up of Traditional Values norms of specific culture, fixed, tradition, ex) red – spain, constant 2. POPular culture : can change, ex) ipad, tablet, old heros, heroines

The Movement of Meaning
Instruments of movement * Advertising and Fashion system * Consumption Rituals

Destinations of Movement
Cultureal Values and Symboles -> Consumer Goods -> individual Consumer

Culture Production Process

Symbol Pool

Creative subsystem Managerial Subsystem Culture Production Systme

Communications Subsystems

Cultural GateKeepers
Formal Gatekeepers * Casting Directors + * Radio Programmes

Culture Production System * A culture Production system is the set of individuals and organizations that create and market a cultural product * It has Three Major subsystems * Creative – can change, adaptation, ex) cocacola * Managerial – how can we * Communications – Advertizing * CPS
Diffusion (Creative Managerial Communications) – How do we diffusues these 3

Cultural GateKeepers – are responsible for filtering

Reality Engineering – many consumer environments have images character spawned by marketing campaigns or are retreads
Marketers use pop culture as promotional vehicles – new vintage eg. Used jeans
Elements used are both sensory and spatial
Eg) Abecrombie Fitch (dark, sound, smell) , Sephora , The bodyshop (Green, fresh ..) - > focus on sensorial parts

Product Placeamrk and Branded Entertainment * Insertion of specific products and use of brand names in movie/Tv scripts * Drectos incorporate branded props for realism * Is product placement a positive or negative when it comes to consumer decision-making?

Adverdaming * Refers to online games merged with interactive advertisements * Advertisers gain many benefits with advergames * Plinking is the act of embedding a product in a video

Diffusion of Innovations * Innovation : any product that consumvers perceive to be new * New manufacturing technique * New product variation * New way to deliver product * New way to Package product * Diffusion of innovation
Successful inoovations spread through the population at various rates/
Different ways of diffusion of innovations in different culture * Compatability : ??? * Trialabality : try it before use * Complexity : less complex is easy * Observability : somebody to promote it * Relative advantages

4 modes
Psychological models of fashion * Conformity * Desire for variety seeking * Need to express personal creativitiy * Sexual attraction * NORMAL FSHION LIFE CYCLE
Eg) Introduction stage : small number of music inoovators hear a song
Acceptance stage : song enjoys increased visibility
Regression stage : song reaches stages

FAD/ FASHION/ CLASSIC * Time, number of adopters
FASHION : is the style, specific style doesn’t matter country, eg) black
A FASHION : specific style in specific time…specific attribute, A fashion of summer, winter, chrismas, eg) fur coat, RED, shoe races.
In Fashion : Specific Group , socially accepted piece. Popular and trendy Eg) this season colore

보졸레누보 – 온천수 in japan

Fit with basic lifestyle changes?
Perosnlaize it?
Trend or a side effect?
Carryover effect?
Who adopted the change?

Cultural Differences and Marketing * People around the world develop their own unique preferences * Marketers must be aware of a culture’s norms and manage the relationship between brand and culture strategically * White Dress in Japan -> mourning meanings * Black ->>>>> Death - chic, luxury (marketing people changed it)

Think Globally, Act locally – adopt a standardized strategy- adopt a localized strategy

Consumers and Global Brands

Global Citizens : French people – wearing scarf in the room ( adopted the culture )
Global Dreamers : want to adopt it but live in their … cosplay..?!
Antiglobals :
Global Agnostics : only shop in uni-culture stores, because of religious reasons.

Emerging consumver cultures in Transitional Economies * Creolization occurs when foreign influences integrate with local meanings * Peruvain boys carry rocks painted

Chpa Summa
Styles are like a mirror that reflect culture.
We can distinguish between high and low forms of culture
Marketers are also reality engineers.
New products spread through the population. Certain characterics make it more likely that they will be adopted.
The fashion system created and communicated symbolic meaning for consumers
Fashion follows cycles - eg) converse – white and black
Products that succeeded in one culture many fail in another due to cultural differences
Western culture has a huge influence on other cultures. – Their marketers are the best.! -

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