Political audience reaction ratings Consumer Behavior– you are what you buy… How do we make decisions about what we buy? What are stages of the decision process? What can reduce “buyers remorse”? How would you prepare a “pitch” for different audiences? Song Airlines Commercial Product Placement Political audience reaction ratings

Perceptions & Decision Making

Marketing News: Downsizing products (while keeping the price the same) Economy: Commodity costs are rising Market Research: People are more conscious of changes in pricing than changes in quantity Repackaging: Packaging “sleeves” to maintain freshness Rephrasing: Old packaging was a “limited time offer” Reframing: “Future Friendly Products…uses 15% less energy, water or packaging…” Downsizing packages get sneakier Mouseprint.org

How much?! Chicken of the Sea tuna in 5oz instead of 6 oz cans Doritos, Tostitos & Fritos hold 20% fewer chips (more air) Kraft Premium Saltines & Honey Maid Grahams has 15% fewer crackers (sleeves) Tropicana orange juice from 64-oz carton to 59 oz. Skippy peanut butter indented the container bottom for a reduction of 1.7 oz Special K is down 2.4 oz Dial soap from .5 oz to 4.5 oz Quilted Northern toiler paper lost .5” from width Ice cream down from 1.75 to 1.5 Whole Wheat Pasta from 16 ox to 13.5 Box of Baby Wipes from 80 to 72 Mrs. Stauber 16 oz can of corn down to 14.5 oz

Product overchoice What is your experience with overchoice? Is it potentially a problem in your business? What might be done to reduce it?

Consumer Decision-Making Process Postpurchase Behavior Purchase Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps

Complete model of consumer behavior Alternative evaluation Start Need recognition Stimuli (marketer dominated, other) External search Memory Internal search Exposure Attention Comprehension Acceptance Retention Outcomes Dissatisfaction Satisfaction Individual differences resources motivation & involvement knowledge attitudes personality, values, lifestyle Influences culture social class family situation Search Alternative evaluation Purchase

How do you know when to shop How do you know when to shop? What are the triggers that initiate an awareness & search? What are the internal & external sources of these triggers?

Need Recognition (& reminding) When a current product isn’t performing properly When the consumer is running out of an product When another product seems superior to the one currently used Marketing helps consumers recognize (or create) an imbalance between present status and preferred state Preferred State

Think about your past purchase– who was in which role? Buyer Behavior: The Decision Making Unit Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994). Initiator: the person who first suggests or thinks of the idea of buying a particular product or service. Influencer: a person whose views or advice carry weight in making the final buying decision Decider: the person who ultimately makes the final buying decision or any part of it Buyer: the person who makes the actual purchase User: the person who consumes the product or service Note: teens are increasingly assuming more of these roles Think about your past purchase– who was in which role?

Gender & Consumer Behavior

Relative influence of husbands & wives Wife Dominant Relative influence of husbands & wives Child clothing Women’s clothing Final decision Information search groceries Pots & pans NonRx lamps Toys/games furniture luggage carpet Paint wallpaper refrigerator vacations Men’s leisure clothing Joint Men’s business clothing stereo TV sets camera Financial planning Family car Sport equipment hardware Lawn mower Husband Dominant Extent of role specialization 100 75 50 25 Davis & Rigaux, 1974

Purchase Persuasion for Men and Women

quickly list 10 items you have purchased in the past month reexamine how long it took you to make a decision on each why did such a difference in decision occur?

How to make Choosing Easier

Factors affecting Consumer involvement Previous experience: low level involvement Interest: high involvement Perceived risk of negative consequences: high involvement Situation: low to high due to risk Social visibility: involvement increases with product visibility So… Offer extensive information on high involvement products In-store promotion & placement is important for low involvement products Linking low-involvement product to high-involvement issue can increase sales

think of an important purchasing decision you have made what are some of the thoughts you have had following your purchase? Any regrets? what has influenced those thoughts? how have you dealt with the discomfort? how has the company anticipated or dealt with your discomfort?

Buyers Remorse/ Regret

Postpurchase Behavior What can you do to reduce buyer’s remorse? Cognitive Dissonance ? Did I make a good decision? Did I buy the right product? Did I get a good value? Can minimize through: Effective Communication Follow-up Guarantees Warranties Underpromise & overdeliver Marketing

Decision Processing

ELM: Persuasion & Attitude Change John Cacioppo & Richard Petty Elaboration Likelihood Model (ELM) was formulated in 1979 by R.E. Petty & J.T. Cacioppo, & describes how attitudes are formed and changed after a exposure to an important and meaningful message.

Retain or Regain Initial Attitude Elaboration Likelihood Method (ELM) of persuasion Persuasive Communication Nature of Active Cognitive Processing: (initial attitude, argument quality, etc.) Favorable Thoughts Predominate Unfavorable Neither or Neutral Cognitive Structure Change: Are new cognitions adopted and stored in memory? Are different responses made salient than previously? personal relevance personal importance personal responsibility Motivated to Process? dissonance arousal need for cognition repetition cognitive complexity critical thinking distraction free low arousal Ability to Process? appropriate schema message pace issue familiarity Enduring positive or negative attitude change (persuasion) greater persistence resistant to counterattacks & fading predictive of behavior > brand memory > elaboration >usage intention > attitude accessibility > attitude confidence > attitude-behavior consistency Peripheral Cues Present? reciprocity (obligated, did a favor) consistency (way it’s done, similar to before) social proof (peer pressure, conformity) liking (attractiveness, friendliness) celebrity (identification, prestige) authority (expertise, experience, credibility) rapid speech, forceful presentation, charismatic style scarcity (limited time offer) tangible rewards appealing visuals & music (emotional arousal) fear appeal weak counter-arguments Attitude Shift: short-lived susceptible to influence unpredictable Retain or Regain Initial Attitude

Need for Cognition Scale                              back to Attitudes                back to 7670 Homepage   Write in the number that best fits your view:                                1                        2                      3                   4                         completely            mostly             mostly          completely                         false                      false                true              true _____1.   I would prefer complex to simple problems. _____2.   I like to have the responsibility of handling a situation that requires a lot of thinking. _____3.   Thinking is not my idea of fun. * _____4.   I would rather do something that requires little thought than something that is sure to                 challenge my thinking abilities. * _____5.   I try to anticipate and avoid situations where there is likely chance I will have to think                 in depth about something. * _____6.   I find satisfaction in deliberating hard and for long hours. _____7.   I only think as hard as I have to. * _____8.   I prefer to think about small, daily projects to long-term ones. * _____9.   I like tasks that require little thought once I’ve learned them. * _____10. The idea of relying on thought to make my way to the top appeals to me. _____11. I really enjoy a task that involves coming up with new solutions to problems. _____12. Learning new ways to think doesn’t excite me very much. * _____13. I prefer my life to be filled with puzzles that I must solve. _____14. The notion of thinking abstractly is appealing to me. _____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat                 important but does not require much thought. _____16. I feel relief rather than satisfaction after completing a task that required a lot of mental                 effort. * _____17. It’s enough for me that something gets the job done; I don’t care how or why it works. * _____18. I usually end up deliberating about issues even when they do not affect me personally. Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scored Need for Cognition Scale

Sleeper Effect: when secondary source becomes more credible than primary source over time persuasion may increase over time with a weak source forget the source but remember the message not if source is learned prior to the message (will ignore or bias processing) Example: Attack ads during political campaigns