Internal Influences

1. Internal Influences • perception, memory, learning, motivation, personality, emotion, etc. Application: “Neuromarketing” • Study of the brain’s responses to ads, brands, and other marketing messages • Pepsi Challenge • Men & Cars • Politics • Issues? Problems?

2. INFORMATION PROCESSING:PERCEPTION

3. Attractive Models: Attraction or Distraction? How effective is this strategy? Attractive Model/Conservative Dress Vs. Attractive Model/Revealing Dress Where is the focus? What is remembered?

4. What is Information Processing? Information Processing: • The process through which consumers are exposed to information, attend to it (perceived), comprehend it (transform into information), place it in memory, and retrieve it Why is information processing important to marketing? How does information processing apply to consumer behavior?

5. The Process of Perception Sensation Perception

6. Vision Our eyes play tricks on us • Food • Tables What are the dimensions of the two tables? What is the ratio of length to width of each? Two tables (adapted from Shepard 1990)

7. Vision: Two Tables Tabletops are identical

8. Smell Odors create mood and promote memories: • What are some of your early associations with smell? • How does smell influence your buying behavior? • Coffee = childhood, home • Cinnamon buns = sex

9. “the Cinnabon Effect” • Successful marketing is about positive associations and memory • Smell is hard wired to memory • Cinnabon stores are positioned beside stores that don’t sell food so there’s no smell competition Why does this matter?

10. $$$$ • Companies exist solely because they infuse odors into packaging But will the smell cause you to eat more? YES

11. Hearing • Effect of Sound: Physiological, Psychological, Behavioral • Affects mood, behavior, and memory • What is Muzak? • Muzak uses sound and music to create mood • High tempo = more stimulation • Slower tempo = more relaxing

12. Touch & Taste • Allowing consumers to touch products increases sales • Touching consumers (on shoulder or arm) increases sales • Allowing free tasting increases sales • Feel obligation to buy • Lots of research going on in tasting

13. Buyology • How would assess a consumer’s visual perception of a store environment? • Do you think you spend more or less with a grocery list? • Alternative explanations? • Are you always paying attention in the grocery store? Driving a car? • What are the two modes of processing? • Why do we buy more than we need? • What influences your choice of brands? • Other consumer behavior factors or psychological influences?

14. Stages in Perception: Exposure Sensory Receptors Eyes Ears Nose Mouth Skin Sensory Stimuli Sight Sound Smell Taste Touch Exposure Absolute Sensory Threshold Minimum amount of stimulation that can be detected on a sensory receptor = difference between something and nothing What does it take to be noticed? - When will the billboard be noticed? - Will the garlic in the sauce be tasted? - Will the new scent in the detergent be smelled? • Any specific demographic group(s) seem more likely to avoid exposure to ads? • men • younger consumers • higher social classes Differential Sensory Threshold Ability to sense changes or differences between two stimuli (J.N.D.)

15. Subliminal Perception/Advertising Definition: Stimuli presented below the level of conscious awareness • Example: political ad, 1957 movie theater • Does it work? • Do you believe these messages are harmful or manipulative? Why or why not? Any other ads, movies or other media with hidden symbols?

16. Stages in Perception: Attention Sensory Receptors Eyes Ears Nose Mouth Skin Sensory Stimuli Sight Sound Smell Taste Touch Exposure Attention • activates a nerve • sensations go to brain • consumer needs to allocate mental resources • Determined by 3 factors: • Stimulus (e.g., novelty) • Individual • Situational What happens after you’ve viewed an ad several times or driven by the same billboard several times? Adaptation Level Theory If a stimulus doesn’t change over time we get used to it and it’s less noticeable

17. Stages in Perception: Attention Sensory Receptors Eyes Ears Nose Mouth Skin Sensory Stimuli Sight Sound Smell Taste Touch Exposure Attention • activates a nerve • sensations go to brain • consumer needs to allocate mental resources • Determined by 3 factors: • Stimulus • Individual • Situational What types of products have high personal relevance?

18. Stages in Perception: Attention Sensory Receptors Eyes Ears Nose Mouth Skin Sensory Stimuli Sight Sound Smell Taste Touch Exposure Attention • activates a nerve • sensations go to brain • consumer needs to allocate mental resources • Determined by 3 factors: • Stimulus • Individual • Situational Do you think if you are interested in a tv program that you will pay more or less attention to ads?

19. Attention Situational Factors Program Involvement Program involvement refers to interest in the program or editorial content surrounding the ads. Program involvement has a positive influence on attention Source: 1”Cahners Advertising Research Report 120.1 and 120.12 (Boston: Cahners Publishing, undated).

20. Application Assignment Examples: • Product changes • Communication campaigns • Social marketing issues • Economic issues • Politics Tuesday, October 13 • Draft Idea • 2 potential CB concepts chosen • 1 paragraph explaining what topic you would like to study Right Now: • Brainstorm 5 assignment ideas/interests • Identify relevance to consumer behavior

21. Stages in Perception: Interpretation Sensory Receptors Eyes Ears Nose Mouth Skin Sensory Stimuli Sight Sound Smell Taste Touch Exposure Attention Interpretation Three aspects of interpretation: *relative process rather than absolute *subjective and open to a host of psychological biases. *cognitive “thinking” process or an affective “emotional” process. Interpretation Assigning meaning to sensations

22. Stages in Perception: Interpretation Sensory Receptors Eyes Ears Nose Mouth Skin Sensory Stimuli Sight Sound Smell Taste Touch Exposure Attention Interpretation Stimulus Organization: we seek to make sense of things * Gestalt Psychology: derive meaning from the totality of a set of stimuli rather than from any individual stimulus *Perceptual Categorization:we match cues to things we already know *Consumer Inference: going beyond information that is presented Is what you see what you get in marketing? Why?

23. Gestalt Psychology: Figure/Ground

24. Absolut Vodka

25. Gestalt Psychology: Proximity What do you see in Figure a? What about Figure b? Things that are close together in space or time tend to be perceived as grouped together. Thus, if you want your audience to associate the product with the presenter, put them close together. If you want them to perceive two ideas as associated, present them in close proximity.

26. Gestalt Psychology: Closure

27. Gestalt Psychology: Closure Cna yuo raed tihs? i cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearchr at Cmabrigde Uinervtisy, it dseno't mtaetr in waht oerdr the ltteres in a wrod are, the olny iproamtnt tihng is taht the frsit and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it whotuit a pboerlm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Azanmig huh? yaeh and I awlyas tghuhot slpeling was ipmorantt!

28. Perceptual Categorization: Lysol’s Family of Products Air fresheners Sanitizing wipes Bathroom cleaners All-purpose cleaners So, does it make sense for Lysol to introduce …? Would it make sense for them to introduce a mouthwash?

29. Interpretation Consumer Inferences Interpreting Images Consumer inferences are becoming increasingly important as advertisers increase their use of visual imagery. A picture is worth a thousand words not just because it may convey reality more efficiently than words but because it may convey meanings that words cannot adequately express. Courtesy Partnership for a Drug-Free America What does this demonstrate about CB?

30. Consumer Inferences Health Halos McDonald's vs. Subway Which is healthier? Do people pay attention to nutrition information? How does this affect our behavior? • McDonald’s • 57/250 were able to recount nutrition information • Most recounted nutritional information – food is caloric and not healthy • estimated they ate 876 calories but actually ate 1,093 calories (25% more than they thought) • Subway • 157/250 recalled some form of nutrition information • general impression food was healthy but did not pay attention to the specifics • estimated they ate 495 calories but actually ate 677 (34% more than they thought)

31. Consumer Inferences Health Halos McDonald's vs. Subway • Implications: • many people inferred all Subway food was less caloric • people made decisions under the illusion that everything at Subway is healthier • consumers get false confidence in what they are eating and it gives them a health halo to all Subway foods, including mayo, bacon, chips, cookies, and large drinks • Still not all that bad: • Subway diners still remembered more nutrition information and ate less than those at McDonald’s

33. Absolute Sensory Threshold: Identify the brand return

34. Differential Sensory Threshold: JND – Who is this person? next

35. Differential Sensory Threshold: Just Noticeable Difference 1907: What brand is this? 1935: color added 1960: corner curl 1971: more complexity 1987: contemporary type font 2005: logo is simplified return