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Jbee exam
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1[blank_start]Consumer behavior[blank_end]
Those activities directly involved in obtaining, consuming, and disposing of products and services, including the decision processes that preceded and follow these actions- AConsumer behavior
2The Consumer as a Decision Maker
The Consumer is:
• [blank_start]Logical[blank_end]
• [blank_start]Purposeful[blank_end]
• Acts in a “[blank_start]sequential[blank_end]” manner in making decisions- ALogical
- BPurposeful
- Csequential
3The Consumer Decision-Making Process
1. [blank_start]Need state[blank_end] - A psychological state arising when ones desired state of affairs differs from ones actual state of affairs.
a. [blank_start]Functional benefits[blank_end] - Those benefits that come from the objective performance characteristics of a product or service.
b. [blank_start]Emotional benefits[blank_end] - Those benefits not typically found in some tangible feature or objective characteristic of a product or service
2. [blank_start]Information Search[blank_end] and [blank_start]Alternative Evaluation[blank_end]
a. [blank_start]Internal Search[blank_end] - A search for product information that draws on personal experience and prior knowledge
b. [blank_start]External search[blank_end] - A search for product information that involves visiting retail stores to examine alternative, seeking input from friends and relatives about their experiences with the products in question, or perusing professional product evaluation
c. [blank_start]Consideration set[blank_end] - The subset of brands from a particular product category that becomes the focal point of consumer's evaluation
d. [blank_start]Evaluative criteria[blank_end] - The product attributes or performance characteristics on which consumers base their product evaluations
3. [blank_start]Purchase[blank_end]
4. Post-purchase use and evaluation
a. [blank_start]Customer satisfaction[blank_end] - Good feelings that come from a favorable post purchase experience
b. [blank_start]Cognitive dissonance[blank_end] - The anxiety or regret that lingers after a difficult decision- ANeed state
- BFunctional benefits
- CEmotional benefits
- DInformation Search
- EAlternative Evaluation
- FInternal Search
- GExternal search
- HConsideration set
- IEvaluative criteria
- JPurchase
- KCustomer satisfaction
- LCognitive dissonance
4Dissonance increases when:
• The purchase price is [blank_start]high[blank_end]
• There are many [blank_start]close alternatives[blank_end]
• The item is [blank_start]intangible[blank_end]
• The purchase is [blank_start]important[blank_end]
• The item purchased lasts a long time- Ahigh
- Bclose alternatives
- Cintangible
- Dimportant
5Relevance and Importance of a Purchase
• Interests and avocations
• [blank_start]Risk[blank_end]—high price or long-term commitment
• High [blank_start]symbolic[blank_end] meaning to purchase
• Deep [blank_start]emotion[blank_end] attached to purchase- ARisk
- Bsymbolic
- Cemotion
6Experience
• More experience, more [blank_start]astute[blank_end] consumer- Aastute
7[blank_start]Involvement[blank_end] - The degree of perceived relevance and personal importance accompanying the choice of a certain product or service within a particular context, the more risk associated with a purchase the higher it is
- AInvolvement
84 Modes of Consumer Decision Making:
1. [blank_start]Extended problem solving[blank_end] - A decision making mode in which consumers are inexperience in a particular consumption setting but find the setting highly involving.
2. [blank_start]Limited problem solving[blank_end] - A decision making mode in which consumer's experience and involvement are both low when consumer has a new problem
3. [blank_start]Habit[blank_end] or [blank_start]Variety Seeking[blank_end]
a. [blank_start]Habit[blank_end] - A decision making mode in which consumers buy a single brand repeatedly as a solution to a simple consumption problem
b. [blank_start]Variety seeking[blank_end] - A decision making mode in which consumers switch their selection among various brands in a given category in a random pattern
4. [blank_start]Brand loyalty[blank_end] - A decision making mode in which consumers repeatedly buy the same brand of a product as their choice to fulfill a specific need involving conscious commitment and highly favorable attitudes- AExtended problem solving
- BLimited problem solving
- CHabit
- DVariety seeking
- EHabit
- FVariety Seeking
- GBrand loyalty
9Key Psychological Processes in Advertising
[blank_start]Attitude[blank_end] - An overall evaluation of any object, person, or issue that varies along a continuum, such as favorable to unfavorable or positive to negative
[blank_start]Brand attitudes[blank_end] - Summary evaluations that reflect preferences for various products and brands
[blank_start]Salient Beliefs[blank_end] - The knowledge and feelings a person has accumulated about an object or issue- AAttitude
- BBrand attitudes
- CSalient Beliefs
10[blank_start]Multi-Attribute Attitude Models[blank_end] (MAAMS)
A framework and set of procedures for collecting information from consumers to assess their salient beliefs and attitudes about competitive brands.- AMulti-Attribute Attitude Models
11Information Processing and Perceptual Defense
[blank_start]Cognitive Consistency[blank_end] - The maintenance of a system of beliefs and attitudes over time; consumers' desire for this is an obstacle to advertising
[blank_start]Advertising Clutter[blank_end] - An obstacle to advertising resulting from the large volume of similar ads for most products and services
[blank_start]Selective attention[blank_end] - The processing of only a few advertisements among the many encountered
[blank_start]Cognitive responses[blank_end] - The thoughts that occur to individuals at that exact moment in time when their beliefs and attitudes are being challenged by some form of persuasive communication- ACognitive Consistency
- BAdvertising Clutter
- CSelective attention
- DCognitive responses
12[blank_start]Elaboration Likelihood Model[blank_end] (ELM)
A model that pertains to any situation where a persuasive communication is being sent and received, and considers his or her motivation and ability to elaborate on the message during processing- AElaboration Likelihood Model
13[blank_start]Peripheral cues[blank_end] - The features of an ad other than the actual arguments about the brand's performance
- APeripheral cues
14Five Sociological Factors in Consumer Behavior and Advertising Response
(Social Class) as a broad effect
– People within social strata live in similar ways, have similar views,
tend to consumer in similar ways
1. [blank_start]Family[blank_end]
– Intergeneration effect = [blank_start]habit[blank_end]
– Life stage effects
– Celebrity = [blank_start]identity[blank_end]
2. [blank_start]Race[blank_end] and [blank_start]Ethnicity[blank_end]
– A cultural effect
– Social identity
3. [blank_start]Politics[blank_end]
– Social disruption can effect consumer evaluations
4. [blank_start]Gender[blank_end]
– Socialization effects
– Evolving gender roles
5. [blank_start]Community[blank_end]
– Face-to-face, imagined or virtual
– Brand communities- AFamily
- BRace
- CEthnicity
- Dhabit
- Eidentity
- FPolitics
- GGender
- HCommunity
15[blank_start]Stratification[blank_end] (social class)
A person's relative standing in a social system as produced by systematic inequalities in things such s wealth, income, education, power, and status.- AStratification
16Value Proposition
[blank_start]Segment[blank_end] - a portion of the market; they cut a market into pieces and then focus on the piece(s) that make the most sense
[blank_start]Target[blank_end] - to focus advertising and promotion effort upon a given segment or segments; to focus advertising and IBC for delivery upon
[blank_start]Position[blank_end] - to attempt to give a brand a certain meaning relative to its competitors- ASegment
- BTarget
- CPosition
17STP Marketing and the Evolution of Marketing Strategy
1. [blank_start]Target Market[blank_end]: A sub-group of a larger
market chosen as the focal point for a
marketing or advertising campaign.
2. [blank_start]Positioning[blank_end]: Designing and representing a
brand in a way that is distinct in the
consumer’s mind.
3. [blank_start]Positioning Strategy[blank_end]: Selecting key themes
to communicate to a target market.- ATarget Market
- BPositioning
- CPositioning Strategy
18[blank_start]STP marketing[blank_end] - segmenting, targeting, and positioning; a market strategy employed when advertisers focus their efforts on one subgroup of a product's total market; markets are segmented-- segments of markets are targeted, and brands are positioned
[blank_start]Market segmentation[blank_end] - breaking down larger broader markets into more manageable submarkets or customer segments- ASTP marketing
- BMarket segmentation
19Segmenting by Usage and Commitment
[blank_start]Heavy users[blank_end] - consumers who purchase a product or service more frequently than others; typically account for the majority of the product's sales
[blank_start]Brand-freaks[blank_end]/[blank_start]loyal users[blank_end] - consumers who are so committed to the brand that their consumer behavior toward it borders on the pathological
[blank_start]Switchers[blank_end]/ [blank_start]variety seekers[blank_end] - often buy what is on sale or chooses brands that offer discount coupons or other price incentives; they are a costly target segment because their business can disappear just as quickly as it was won
[blank_start]Emergent customers[blank_end] - a gradual but constant influx of first time buyers; influx vary by product and can be triggered by puberty, college, marriage, new baby, etc. Their brand preferences are still under development
[blank_start]Point-of-entry marketing[blank_end] - developing advertising campaigns to win with first time users (ex: Folgers attracting young adults)
[blank_start]Demographic segmentation[blank_end] - includes basic descriptors such as age, gender, race, marital status, income, education, and occupation; makes it easier to choose media to efficiently reach that segment
[blank_start]Geographic segmentation[blank_end] - may be conducted within a country by region, by state or providence, by city, or even by neighborhood. Weather and topographical features yield dramatic differences in consumption by region for products
[blank_start]Geodemographic segmentation[blank_end] - identifies neighborhoods (by zip codes) around the country that share common demographic characteristics (ex: PRIZM)
[blank_start]Psychographics[blank_end] - a form of research that emphasizes the understanding of consumers' activities, interests, and opinions (AIO); gives insight into consumer motivations
[blank_start]Benefit segmentation[blank_end] - target segments are portray by the various benefit packages that different consumers want from competing products and brands (ex: different people want different benefits from their cars)
[blank_start]Business markets[blank_end] - the institutional buyers who purchase items to be used in other products and services or to be resold to other businesses or households- AHeavy users
- Bloyal users
- Cvariety seekers
- DSwitchers
- EBrand-freaks
- FEmergent customers
- GPoint-of-entry marketing
- HDemographic segmentation
- IGeographic segmentation
- JGeodemographic segmentation
- KPsychographics
- LBenefit segmentation
- MBusiness markets
20Prioritizing Target Segments
1. Examine your ability to deliver value to the segments and the costs of new capabilities
• What are the distinct competencies of the firm?
2. Research segment size, growth potential and usage frequency
3. Assay the competitive environment
4. Find a niche you can scratch
[blank_start]Prioritizing segments[blank_end] - the advertiser must get beyond this potentially confusing mixture of segments to a selected submarket that will become the target for its marketing and advertising programs- APrioritizing segments
21Essentials for Effective Positioning Strategies
• [blank_start]Deliver[blank_end] on the brand promise
• There is magic in [blank_start]consistency[blank_end]
• Make the positioning [blank_start]different[blank_end] and [blank_start]simple[blank_end] for consumers to understand- ADeliver
- Bconsistency
- Cdifferent
- Dsimple
22[blank_start]Repositioning[blank_end]
• Used to revive an ailing brand or fix a lackluster new market entry
• Advertising themes and positioning can be trendy and become outdated
• The challenge: Changing perceptions of a brand forged over years of advertising.
[blank_start]Repositioning[blank_end] - is when a company changes a brand's status in the marketplace.
[blank_start]Repositioning[blank_end] - is done to keep up with consumer wants and needs.
A [blank_start]value proposition[blank_end] - is a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service.
VALUE:
Benefits: [blank_start]Functional[blank_end], [blank_start]Emotional[blank_end], [blank_start]Self-expressive[blank_end]
Relative Price: $$$$- ARepositioning
- BRepositioning
- CRepositioning
- Dvalue proposition
- EFunctional
- FEmotional
- GSelf-expressive
23Key Perspectives
• [blank_start]Traditional Advertising[blank_end] and [blank_start]Brand Promotion Research[blank_end]
– Any research that helps in the development,
execution or evaluation of advertising and
promotion
• A New Perspective
– The [blank_start]Account Planning System[blank_end]
– Greater research [blank_start]outsourcing[blank_end]
– More [blank_start]naturalistic[blank_end] and [blank_start]socio-cultural[blank_end] methods
[blank_start]Account Planning[blank_end] - A broader view than traditional research that introduces data earlier in the development process & relies on a wider variety of research techniques.- ATraditional Advertising
- BBrand Promotion Research
- CAccount Planning System
- Doutsourcing
- Enaturalistic
- Fsocio-cultural
- GAccount Planning
24Importance and Essence
[blank_start]Advertising[blank_end] and [blank_start]Promotion Research[blank_end]
• Used to assist in determining marketsegments
• Plays a key role in helping creatives
understand the audience
• Used to make go/no go ad decisions
and when to pull ads
• Used to evaluate agency performance- AAdvertising
- BPromotion Research
25Key Issues in Advertising and Promotion Research
[blank_start]Reliability[blank_end] The research method produces consistent findings over time.
[blank_start]Validity[blank_end]: The information generated is relevant to the research questions being investigated.
[blank_start]Trustworthiness[blank_end]: Usually applied to qualitative data; does the data seem to make sense?
[blank_start]Meaningfulness[blank_end]: An assessment of limitations of the data.- AReliability
- BValidity
- CTrustworthiness
- DMeaningfulness
26The Scope of Advertising and IBP Research
1. [blank_start]Developmental Advertising[blank_end] and [blank_start]IBP Research[blank_end] (before ads are made)
2. [blank_start]Copy Research[blank_end] (as ads are being finished)
3. [blank_start]Results-oriented Research[blank_end] (after the ads are running)- ADevelopmental Advertising
- BIBP Research
- CCopy Research
- DResults-oriented Research
27Stage [blank_start]One[blank_end]: Developmental Advertising and IBP Research
[blank_start]Design Thinking[blank_end]: Advertisers and marketers think like designers.
[blank_start]Concept Testing[blank_end]: Designed to screen the quality of new ideas or concepts.
[blank_start]Audience Profiling[blank_end]: Creatives need to know as much as they can about the people to whom their ads will speak.
Profiles present the creative staff with a fine-grained picture of the target audience, and its needs, wants, and
motivations.
[blank_start]Focus groups[blank_end]: Brainstorming session with target customers (6-12) to come up with new insights about the
brand. Focus groups offer the opportunity to gather in-depth data.
More Developmental Advertising and IBP
Research Methods
[blank_start]Dialogue balloons[blank_end] - technique that offers consumers the chance to fill in the dialogue of cartoonlike stories, as a way of indirectly gathering brand information
[blank_start]Story construction[blank_end] - technique that asks consumers to tell a story about people depicted in a scene or picture, as a way of gathering information about a brand
[blank_start]Sentence and picture completion[blank_end] - technique in which a researcher presents consumers with part of a picture or a sentence with words deleted and then asks that the stimulus be completed; the picture or sentence relates to one or several brands
[blank_start]Zaltman Metaphor Elicitation Technique[blank_end] (zmet) - draw out people's buried thoughts and feelings about products and brands by encouraging participants to think in terms of metaphors
[blank_start]Field work[blank_end]- research conducted outside the agency, usually in the home or site of consumption
Developmental Advertising
Research Methods: Other Sources of Information
• [blank_start]Internal company[blank_end] sources
• [blank_start]Government data[blank_end] sources
• [blank_start]Commercial[blank_end] sources
• [blank_start]Professional[blank_end] publications- ADesign Thinking
- BConcept Testing
- COne
- DAudience Profiling
- EFocus groups
- FDialogue balloons
- GStory construction
- HSentence and picture completion
- IZaltman Metaphor Elicitation Technique
- JField work
- KInternal company
- LGovernment data
- MCommercial
- NProfessional
28Stage [blank_start]Two[blank_end]: Copy Research (Evaluative Research)
Copy testing research is a good idea most of the
time—it can yield important data that management can use to determine the suitability of an ad.
Evaluative Criteria and Methods in Copy Research
• “Getting It”
- Communications Test
• What do they remember?
- Not a good predictor of sales
• Cognitive Residue
- Recall: Aided, unaided, claim, related
- Recognition testing
- Implicit memory measures
[blank_start]Communication tests[blank_end] - a type of pretest message research that simply seeks to see if a message is communicating something close to what is desired
[blank_start]Recall tests[blank_end] - tests of how much the viewer of an ad remembers of the message; they are used to measure the cognitive residue of the ad; these are the most commonly employed tests in advertising
[blank_start]Recognition[blank_end] - in a test, when the audience members indicate that they have seen an ad before
• [blank_start]Knowledge[blank_end]—consumer brand claim or belief
o Communication tests
o Surveys
• Attitude Change
o Attitude Studies
• [blank_start]Feelings[blank_end] and [blank_start]Emotion[blank_end]
o Resonance Tests
o Frame-by-Frame Tests
• [blank_start]Physiological Changes[blank_end]
o Eye Tracking
o Voice Analysis
• Behavioral Intent
[blank_start]Surveys[blank_end] - a method of soliciting customer feedback through questions related to a viewed ad; surveys are administered in various ways, such as over the telephone or on the Internet, as well as at different lengths of time after the viewing takes place
[blank_start]Attitude study[blank_end] - a method of obtaining customer feedback that measures target markets' feelings and opinions about a company's product, as well as that of the competing brand
[blank_start]Resonance test[blank_end] (produce) - a type of message assessment in which the goal is to determine to what extent the message resonates or rings true with target audience members
[blank_start]frame-by-frame test[blank_end] - research method that works by getting consumers to turn dials (like/dislike) while viewing television commercials in a theater setting
[blank_start]Eye-tracking systems[blank_end] - a type of physiological measure that monitors eye movements across print ads- ATwo
- BCommunication tests
- CRecall tests
- DRecognition
- EKnowledge
- FFeelings
- GEmotion
- HPhysiological Changes
- ISurveys
- JAttitude study
- KResonance test
- Lframe-by-frame test
- MEye-tracking systems
29Stage Three: Results
1. [blank_start]Tracking Studies[blank_end] (most commonly used advertising and promotion research methods) Assess attitude, knowledge, behavioral intent and behavior over time
2. [blank_start]Direct Response[blank_end] (measuring actual behavior of consumers) Inquiry/direct response measures through mail, phone, and Internet
3. [blank_start]Estimated Sales Derived from Advertising[blank_end]
Advertising and promotions differ greatly
Internet is ideal given “click throughs”
Multiple factors can effect sales
4. [blank_start]All-in-One Single Source Data[blank_end] (information provided from individual households about brand purchases, coupon use, and television advertising exposure)
Links shopping to media use through store scanners- ATracking Studies
- BDirect Response
- CEstimated Sales Derived from Advertising
- DAll-in-One Single Source Data
30Characteristics of Workable Objectives
• [blank_start]Quantitative[blank_end] benchmarks
• [blank_start]Measurement[blank_end]/criteria for success
• [blank_start]Time[blank_end] frame- AQuantitative
- BMeasurement
- CTime
31Advertising Plan Components: Budgeting
• [blank_start]Percentage of sales[blank_end]
o Does not relate spending to objectives
• [blank_start]Share of market[blank_end]/voice
o Likely to only maintain “status quo” market share
• [blank_start]Response models[blank_end]
o Associates dollars spent on advertising to sales generated
o Assumes simple causality
• [blank_start]Objective[blank_end] and [blank_start]Task[blank_end]
o Preferred and most strategic approach- APercentage of sales
- BShare of market
- CResponse models
- DObjective
- ETask
32The Role of the Advertising Agency in Planning Advertising and IBP
• Advertiser must bring to the table an assessment of the brand’s [blank_start]value[blank_end], the [blank_start]external environment[blank_end], and [blank_start]opportunities[blank_end] and [blank_start]threats[blank_end].
• The advertising agency’s role is to [blank_start]translate[blank_end] the current marketing plan and market status of the brand into:
o advertising [blank_start]objectives[blank_end]
o advertising [blank_start]strategies[blank_end]
o finished advertisements and IBP materials
o media placement and execution of advertising and IBP- Avalue
- Bexternal environment
- Copportunities
- Dthreats
- Etranslate
- Fobjectives
- Gstrategies
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- jbee Quiz on Jbee exam, created by Adri Torres on 02/04/2017.
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- Adri Torres
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