Lecture 3: Perception (SBAH Ch.2; APZ Ch. 9, PO Ch.

5) Perception is defined as the process of attaining awareness or understanding of sensory information (and therefore the environment) such as sights, sounds, smells. It is an internal process. Furthermore, the perception process consists of different stimuli (sights, sounds, smells, tastes and textures) which are perceived by sensory receptors (eyes, ears, skin, ...). After receiving, attention is paid to the stimuli and our brain interprets it - a meaning of the stimuli is created and we react with a certain response which leads to the perception. About 50-70% of stimuli are perceived by our visual organ, our eyes ( How people perceive and think. Note: semiotics gives you important notions on this field. Concepts as sign, signified or signifier and referent show us that the image is indeed one of the first relations to be made by humans). But also other senses are important, but mainly having an unconscious effect, like sounds, which are mainly perceived as background stimuli (sounds can also be perceived as foreground stimuli; Affects mood; is an important pillar for communication). The smell is usually the first thing we are recognizing, even if we are doing that without realizing (it is primary, subconscious, emotional: the first and the fastest, smells activate memories). However, the way we smell something also influences the way, we see things. Senses for tastes are strongly bound to smell, whereas feeling textures is bound strongly to what we see. This makes those two senses more personal and intimate (because they require presence) and - as said they are strongly bound to other senses. The work of the sensory receptors is followed by some kind of attention, together being considered as sensation (culture-specific/context-dependent): There is holistic and synesthesic sensation. Important for consumer behaviour is to realise that usually consumers are not exposed to one specific, isolated sensory stimuli, because senses work in unison. In connection with this fact, so called Synesthesia should be mentioned, which describes involuntary jumps into associated sensory or cognitive pathways. This means that one stimuli can trigger another one, concerning a different sensory receptor. Furthermore perception is related to the context, for example there are differences between genders or between people with different ages. Attention means the degree of focus on stimuli during exposure. It describes your selectivity. We can distinguish two levels of control concerning attention: The focal attention ( -mode) with a high level of control means that we are able to decide what we perceive. The preconscious attention ( -mode) with a low level of control means that most of the time our perception is unconscious and everything happens automatically. For sure the -mode is more interesting to marketers for the simple reason that it offers more possibilities to influence the consumers. Sensation / Attention / Comprehension (/Response): select, organize and interpret stimuli (SBAH). What is changed/controlled by Marketing? 4 Ps: Product, Promotion, Price, Placement affect our perception. Consumers attention is limited. In a world of a trillion different ever-changing-over-lapping things happening at the same time, people activate filters to what they pay attention to, they focus on what they believe they need at each moment. The consumers exposure to information may be intentional or accidental but is always selective: Marketers explore this by facilitating access to information, maximizing accidental exposure and monitoring its levels. Most of the marketing strategies is based on accidental exposure, which on one hand is less and less effective, because the world we live in is always bombarding us with new informations. Impulse purchases represent 70% of those made in a supermarket.

Marketing Implication: strategies that take this into account: highly visual communication, attention to the background and subconscious attention. Being dynamic, attention changes and flows but some patterns can be identified and these are carefully explored by Marketers. Determinant Factors to the Attention paid: Affective States Involvement and Product Knowledge Environmental Prominence (new, usual, strong stimuli,) Each of these factors is taken into account by marketing: ad and medium features, status of the brand, - Interpretation (comprehension + integration) *How do we perceive? - gestalt psychology SBAH 50-52 Taking the brain as a holistic, self-organizing whole, peoples interpretation of external stimuli contribute to the creation or activation of Memory and Knowledge. These actively affect ones attitudes, intentions and decisions, in an eternal cycle that will change the way one interprets the following stimuli. Perception and Cognition co-exist and happen very close to each other. The perception process consists on three stages: selection, organization and interpretation. Selection: Its the first one, were we select stimuli we attend. Organization: Its the second one. Were we arrange the stimuli (information) so we can understand or make sense out of stimuli. The third one is interpretation: Its the stage were we attach meaning to the stimuli. Our interpretations are subjective and based on our values, needs beliefs, experiences, expectations, involvement, selfconcept, and other personal factors.

These three stages have more to do with the culture, society and psychology, while the sensations we feel are more based on medicine and biology.

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Organization and Interpretation stimuli are not really two actions, the sensory-motoric system and the cognitive system are not separate! We learn how to perceive. We learn by perceiving.

IN-CLASS DISCUSSION: Consumer Perception in Retail Settings - Creating a Store Environment: the Marketing play with senses and perception to enhance the shopping experience the ultimate evidence that environment change the consumers behavior, enhancing satisfaction, placement and efficiency. - Retailteinment: a new way of selling How far can sellers go to sell their products? time itself is manipulated, disorientate the shoppers, create moments of happiness and delight, seduction. Selective focus and attention, and modes, vista and eye level position consumers are blind to what they do not intend to see marketing implications. Why do we say that retailing has to reinvent or go back to its theatrical/sensory beginnings? Appeal to every sense; Stand out from a mass of undifferentiated products and sellers. From Mass Consumption to Personalized Consumption: a trend can be perceived today to move from a quest for sterile, equal, standardized products made for the masses to a demand for a more personalized shopping. E.g. Gourmet products, more expensive but richer and unique.

Motivation is: the process of encouraging and directing the individual toward specific activity.

Each market segment has its characteristics: Purchase objects (what), objectives (why), organization (who), occasion, place.
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Who? (it will show us the personal, group and cultural differences) When and where? (pointing out the situational and contextual differences) How? (to choose cognitive and affective processes to achieve a goal) What? (kind of consumption items and consumer behavior are we talking about)

In terms of motivation the most important is WHY - Motivation: Is a question about consumption motives, goals and desires. It s very difficult to answer to this one. How do we understand why people do things?
Direct Observation: Observe consumers. Can we observe motivation? Usually not. We cant observe the reasons for that behavior, only the behavior itself. So, it still doesnt answer the question WHY. Asking questions: several problems related, for example, people would not be honest about it (the problem of social desirability they say what we want them to say and what makes them look good). Second, they migh not be aware of their true motives (subconscious motives; see Freud below)

So, you it si difficult to ask directly about a person's motivation. Where does the encouragement for behavior came from? Three broad explanations where motivations come from, to be seen as working simultaneously in

many cases, are: the rat, the god, the artist. From our body (rat): The rat perspective assumes that physiological factors (bodily needs) drive
motivation, so a human being is a slave of nature, directed by instincts like an animal. This perspective relates to the body and biological needs. It turns to the natural sciences to understand human

behavior. From mind (god): The god perspective assumes a different viewpoint: A person is its own god,
so it is able to deliberately set its own goals, act rational and is in control. This perspective relates to the mind of the individual. We became aware of our environment, we set goals and we arrange a way

to achieve them. From culture (artist): The artist view holds it that persons are influenced by groups and people try
to express themselves through their behavior in a group/society/culture. Different rituals, behaviors and identities are used for expressing oneself and are the reason for motivations according to the artist

For example, take the consumption of chocolatee In the "rat" perspective endorphins lift the mood creating positive energy and feelings ranging from the happiness to euphoria. We could explore the chemistry of bodily processes involved in consuming chocolate. o In the "God" perspective. Consuming chocolate can be seen a rational decision made by the individual consumer: weighting the pros and cons of chocolate; choosing the best chocolate; being in control by for example limiting one's consumption of chocolate
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In the "Artist" perspective: chocolate can have different cultural meanings. "Men cannot live by chocolate alone...but women can"; Nectar for the Gods and currency (Different culture, different relation with chocolate. As a result we have different ways to consume it.) Differences between these 3 approaches:
1st and 2nd focus on the individual 1st is very physical 3rd focus on culture and is more abstract.

Motivation is a general term for a group of phenomena that affect the nature of an individual's behavior, the strength of that behavior and the persistence of that behavior and made up from 3 components.
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Direction (what a person is trying to do) Effort (how hard a person is trying) Persistence (how long person continues trying)

The motivation process: STIMULI -> Need - Motivation - Activity - Goal (wish) and then it starts again, it's like a circle

Key Motivation Theories FREUD'S THEORY OF MOTIVATION - Psychoanalysis model : inner, deeper reasons for behavior: aspirations, dreams, fears more emotional. Emphasis on the hidden, subconscious (ID). Freud regarded man as an energy system with the energy divided between three components of personality: - the ID (impulse, drive) This part of our body describes our hidden, subconscious drives (cf. RAT perspective) and forces us to satisfy our needs (devil). - the SUPEREGO (the conscience, the angel). We are aware of this part of us. The SUPEREGO tries to control our drives (ID). - the EGO (mediator, I or me) The Ego acts like a mediator and tries to decide between ID and SUPEREGO (devil-angel-decision). => Marketing usually tries to feed our ID => Products can also encourage our SUPEREGO: for example ecological products

THEORIES OF NEED'S SATISFATION What is a need? A state of tension or lack. We divide needs e.g. into:
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utilitarian, which means a desire to achieve some functional or practical benefit (eating something because it is healthy) hedonic, which is an experimental need, that involves emotional responses or fantasies (leisure). It is used to meet the consumers needs for excitements, self-confidence.

In the past consumer behavior researches were more focus on the features of products which can satisfy the utilitarian needs (rational motives of buying). Nowadays they put more attention to hedonic motives ( e.g. the need for fun or travel). Since that time there has been a shift from thinking about needs, towards concentrating on goals, wants and desires.

Three basic theories of need satisfaction are: -Drive Theory (focus on biogenic needs): Motivation as a circle where needs come back to the same point (point of balance called homeostasis) Drive theory is based on the principle that organisms are born with certain physiological needs and that a negative state of tension is created when these needs are not satisfied. When a need is satisfied, drive is reduced and the organism returns to a state of relaxation. This states activities which help us to came back to a balanced situation is called homeostasis. According to the theory, drive tends to increase over time and operates on a feedback control system, much like a

thermostat.

-Expectancy Theory (focus on incentives): It is each persons goals and expectations that dirve

him (the rewards he expects to get). Expectations are always higher than the previous one;

Motivation as a spiral; we always want to achieve more and more; our expectations became so

high that we need to consume more and more.

In Expectancy theory if we have a goal, we know how to get there and we believe we can 'make

the difference' then this will motivate us to act to make this future come true. And next time we

will want to do something more and better. For example in sport you first want to be best in your

own area, then in your country, after that the best in the world, after that you want to be better

than nobody before and so on

-Desire Theory (focus on the process and sociogenic needs):

In Desire theory the waiting something is the goal. Not the kill, but the hunt. For example in

movies the best love story is the one of the unfulfilled love. Its the falling in love and feeling the

desire for somebody, fantasizing about him or her thats more exciting than actually being with

that person. Consumption is often like that striving for something you can never really get, but

the wanting and fantasizing itself can be pleasurable. When you do get it, you often feel

disappointed and find a new target of desire.

*1) Desire captures the seductive spirit of the positioning of many contemporary brands

*2) Desire has interesting relationships with control (excess and lack of control over oneself)

*3) Desire is one way of dealing with very passionate consumers, stressing the emotional or irrational side of consumer behavior Other models can be pointed out briefly: 1. Classic psychology model: learning, impulses-stimuli-reactions. 2. sociological model: cb and human necessities and desires are motivated not only by personal/individual reasons but also the ones postulated by society: culture (values, attitudes, integration and identity), subculture, social classes, role models/groups of reference. Marketing should take advantage and stimulate identification, creating a strong symbolism around the products, associating it with a certain value/message. 3. Economic model: the consumer looks for information and tries to take as much advantage as possible from his purchase. 4. Maslow Pyramid of Needs Are all needs inborn, basic, given and stable?

Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation. Maslow subsequently extended the idea to include his observations of humans' innate curiosity. His theories parallel many other theories of human developmental psychology, all of which focus on describing the stages of growth in humans. <sorces:http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs#Criticisms> Criticism on this theory (what professor told students in class): 1. The level of needs can be changed by depending on cultural difference. 2. It cannot be adopted to all human-beings, because human-beings all over the world are so different individually.

5. necessities in a strict order - physiological, security, social, (self-)esteem, autoactualization/fulfillment. This is a vulnerable model - the order can be changed and other aspects are not covered - Criticism of the concept of need: The whole concept of need is ideological, because it helps marketers to attribute responsibility for excessive consumption to universal needs (and marketers don't create needs); marketing is portrayed merely as giving the solutions to satisfy needs of consumers. But of course needs are not universal they are also cultural and acquired through socialization (and marketing IS a part of culture and socialization). 6.Other models: - Herzberg Model - as known as Motivation-Hygiene Theory or Two Factor Theory of job satisfaction, this model says that people are influenced by two factors: Motivation factors and Hygiene factors. Motiviation factors are composed by achievements, recognition, work itself, responsability, growth and promotion. While, Hygiene factors are composed by company policy and administration, supervision, job security, personal life, working conditions, status, relationships with co-workers and pay and benefits. - McGregor Model - As known as Theories X and Y, they are theories of human motivation created and developed for Doublas Mcgregor. Each theory describes two very different attitudes toward workforce and Mcgregor thought that followed one of these two approaches. Compulsive Consumption the dysfunctional, maladaptive, or abnormal consumptive behaviors exhibited by consumers who are unable to control the overpowering impulse or urge to buy. "Are there any products you "have" to get?" Some consumers become compulsive, and are addicted to the shopping process Inappropriate addictions: gambling, overeating A key to compulsive consumption is that the focus is on the interaction between the shopper and the salesperson the product might not ever be used at all -Excessive Buyers (preoccupied with buying, but at times, able to resist the urge; they can stop if they want) -Pathological Buyers (obsessive-compulsive and impulse-control disorders; they can't stop)

Marketing system work s in an away to produce a big amount of people they can with excessive and pathological behaviours. Factors linked to compulsive consumption: - Phsychological (low self esteem, depression, anxiety, perfectionism) - Biological (drugs, neurological features) - Cultural (gender roles, early childhood experiences, changing the social norms and feeling of alienation. IN-CLASS DISCUSSION: The explanation for compulsive consumption (type consumption that is dysfunctional, maladaptive, or abnormal consumptive behaviors exhibited by consumers who are unable to control the overpowering impulse or urge to buy) e of can be compensatory consumption. That means buying something in order to distract yourself from your real problems (emotional, financial, ). You can forget your problem for a moment but most of the time this creates new problems. Two types of buyers: 1. Excessive buyers (preocupied with buying, but at times able to resist the urge) 2. Pathological Buyers (Ideal for the marketeers). Discussion of Vivians problems and the roots of her compulsive shopping disorder. Also see the online discussion regarding the role of the force of will and related ideas.

Definition of attitudes A predisposition to evaluate objects or proudcts, lasting and general; Because attitudes are stable (which distinguishes them from beliefs), they can be measured. Unstable phenomena ca also be measured, but the implications (how we can use them) of the measurement are different... Furthermore an attitude has 3 components: beliefs, affect and behavioral intentions (feeling, thinking, doing). Attitudes exist on different levels going form very general (ex. fastfood) to very specific (ex. a specific burger from a specific fastfood restaurant). Why do attitudes exist? Different theories try to explain attitudes and connected topics:
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functional theory o there are four functions who have different purpose.

Utilitarian function (reward and punishment), We develop some of our attitudes towards products simply on the basis of whether these products provide pleasure or pain. If a person likes

the taste of a cheeseburger, that person will develop a positive attitude toward cheeseburgers. Ads that stress straightforward product benefits (e.g., you should drink Diet Coke "just for the taste of it") appeal to the utilitarian function. Knowledge function (attitudes as result of a need for order, structure, meaning), Some attitudes are formed as the result of a need for order, structure, or meaning. This need is often present when a person is in an ambiguous situation or is confronted with a new product (e.g., "Bayer wants you to know about pain relievers") Attitudes provide meaning (knowledge) for life. The knowledge function refers to our need for a world which is consistent and relatively stable. This allows us to predict what is likely to happen, and so gives us a sense of control. Attitudes can hep us organise and structure our experience. Knowing a persons attitude helps us predict their behaviour. For example, knowing that a person is religious we can predict they will go to Church. To affect this function to change an attitude, companies selling complicated products will try to simplify it for the potential consumers (ex. the blue pill for the complicated product viagra). If a consumer does not know or recognise a product, the chance is smaller that he will trust and buy (or use) the product, especially if it can be confused with other products (ex. viagra pills could be confused with many other drugs if it didn't promote itself as the "blue pill" and was white for example). Value expressive function (expressing values or self concept), Attitudes that perform a valueexpressive function express the consumer's central values or self-concept. A person forms a product attitude not because of objective product benefits, but rather because of what using the product says about him or her as a person (e.g., "What sort of man reads Playboy?"). Valueexpressive attitudes are highly relevant to life-style analyses, where consumers cultivate a cluster of activities, interests, and opinions to express a particular social identity. Ego defensive function (protecting consumers from external threats or internal feelings) Attitudes that are formed to protect the person, either from external threats or internal feelings of insecurity, perform an ego-defensive function. Products that promise to help a man project a "macho" image (e.g., Marlboro cigarettes) may be appealing to his insecurities about his masculinity. Many deodorant campaigns stress the dire, embarrassing consequences of being caught with underarm odor in public. The basic idea is that we (generally) want to look good in front of others and we do not wish that our ego is disturbed. For example: viagra pill producers will minimise the "embarassment" of erection problems by stating that it is normal and that a big part of the population camps with this kind of issues. The ego won't take a hit (or at least a smaller one) from having to buy viagra compared to a situation where the consumer would think he was te only one with this problem. To change an attitude it is important to use all 4 functions, from the very basic utilitarian function that also exists for animals to the more complicated value-expressive function which is typical for humans.
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ABC model (emphasizes the interrelationship between knowing, feeling and doing) o A = affect - refers to the way a consumer feels about an attitude object, example: I am scared of spiders. o B = behaviour - consumers intention to do something with regard to an attitude object example: I will avoid spiders and scream if I see one o C = cognition - the beliefs a consumer has about an attitude object. example: I believe spiders are dangerous.

multi-attributes models (a simple response does not always tell us everything we need to know about why the consumer has certain feelings towards a products or about what marketers can do to change consumer's attitude; try to break down our attitude to a product, it emphasise cognitive elements: a set of beliefs ) o attributes = characteristics that consumer consider when evaluating the attitude object o beliefs = cognitions about the specific attributes of the attitude object o importance weights = reflect the relative priority of an attribute to the consumer. Altought an attitude object can be considered on a number of attributes, some will be more importante than others, and these weights are likely to differ across consumers.

there are three major possibilities for the definition of the attributes:  lend them from a similar previous experiment  ask the consumers what they believe should be evaluated, which characteristics they find important  define the attributes yourself if you believe you know much about the matter which is being discussed o these models are popular mainly because they can quantify peoples attitudes, although the results will not be completely reliable for different reasons (ex. people using weights very differently, people answering rather randomly because they don't really care, ...) still, this kind of model can be improved and result in some acceptable calculations which can later be compared with results from the same research at a later date, which would show the evolution of attitudes.
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The "How" of attitudes: While all three components of an attitude are important, their relative importance will vary depending upon a consumer's level of motivation with regard to an attitude object. There are three different hierarchies, hierarchy of effects:

Imagem1.png Beliefs - Affects - Behavior - rational: high involvement Attitude based on cognitive information processing: beliefs [thinking] is followed by affect [feeling] resulting in behaviour [doing] Beliefs - Behavior - Affects - behavioristic: low involvement attitude based on behavioral learning process: beliefs [thinking] is followed by behaviour [doing] followed by affect [feeling] (we learn after doing something)

Affects - Behavior - Beliefs - experiential attitude based on hedonic consumtion: affect [feeling] is followed by behaviour [doing] and by beliefs [thinking]

Forming attitudes, they can occur via: - learning by classical conditioning: Attitude Object (Ao) name is repeated - the level of exposure to the brand increases (repeating commercials etc.) - learning by instrumental conditioning: an attribute is associated to the Ao - reward and punishment (ex. McDonalds: happy meal, happy is associated with McDonalds, there is a toy in the box which represents a reward to the child) - learning by complex cognitive process: the persons are open to the subject and willing to learn (more active compared to the previous ones) Levels of commitment to an attitude
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Lowest level: COMPLIANCE - an attitude is formed because it helps in gaining rewards or avoiding punishments from others. It's very superficial. => we comply, e.g. a person may dress in a costume to go to work because wearing other clothes would be frowned upon at the office. (do what you are expected you to do) IDENTIFICATION - We accept the attitude more strongly. Attitudes are formed for the consumer to be similar to another person or group. => we identify with a certain group and its attitudes Highest level: INTERNALISATION - Attitudes become part of consumer s value system and it is very difficult to change them => we internalize attitudes (almost like a religion)

Football example: Compliance: you go watch the match with friends for the social experience, just to have some fun together. Identification: you go watch the match because you are very fond of your (home/favourite) team and identify with the team and its supporters Internalisation: you live for the sport, you would not go to your work, compromising your job security (or other, like skipping scool) because the team is playing and you really can't miss any match. (football is (one of) the most important thing(s) in your life) Of course for marketers the last level is desirable (if the attitudes are favorable), but it is difficult to achieve that. This level is more common in politics, religion etc. and a few brands like Apple, Harley Davidson, etc. However marketers can more easily change attitudes on the first two levels so there are opportunities for them. Cognitive consistency and dissonance Cognitive consistency: the consumer s values and beliefs work together well. There are no conflicts in combining them. If necessary consumers will change their thoughts, feelings or behaviours to make them consistent with their other experiences => maintain uniformity

Cognitive dissonance: conflicts between consumer s attitudes and behaviors. We don t want to get into situations where behaviour and believes do not fit together. We want to match it. The solution to this uncomfortable state depends on the weight of each element - consumers try to get out of this uncomfortable state by eliminating, adding or changing elements. The pressure to reduce dissonance is more likely to be observed in high involvement situations in which the elements are more important to the individual. Dissonance-related cognitive processes are more likely to occur or increase after the purchase marketers should provide useful, positive info. The USE of attitudes: Social Marketing It involves the promotion of causes and ideas regarding facets of everyday life. Attitudes are formed, changed and perpetuated in many ways, ranging from persuasive messages, to observations of brands. Attitudes as predictors of behaviours: - measuring behaviour is often impossible or too complex and we are interested in what leads to it - only 10% of behaviour variability can on average be explained via attitude (Wicker) - extensions of simple attitude theories Theory of reasoned action (Fishbein), Theory of planned behavior (Ajzen).

Theory of Reasoned Action Intentions vs Behaviour - this theory aims to measure behavioural intentions, recognising that certain uncontrollable factors inhibit prediction of actual behaviour. derived from previous research that started out as the theory of attitude, which led to the study of attitude and behavior. The theory was, born largely out of frustration with traditional attitudebehavior research, much of which found weak correlations between attitude measures and performance of volitional behaviors Intention = Attitude + Subjective Norm* the influence of ones social environment on his/her behavioral intentions (social pressure), uncontrollable factors, attitude towards buying perceived consequences of the purchase of the Ao The model was developed to predict the performance of any voluntary act. It measures behavioral intentions and thus assumes that consumers are actively anticipating and planning future behaviours.

An addition from Wikipedia: BI = (AB)W1 + (SN) W2 BI = behavioral intention (AB) = ones attitude toward performing the behavior W = empirically derived weights SN = ones subjective norm related to performing the behavior

Theory of Planned Action Ajzen adds a new component to TRA: "perceived behavioral control" Intention = Attitude + Subjective norm + PBC*
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an individual's perceived capability of performing the particular behaviour ("can I do it?")

You can take the example of smoking. PBC is the crucial factor because you feel you cannot stop smoking. Some obstacles to predicting behaviour - measures of attitude often do not really correspond to the behaviour they are supposed to predict - outcomes beyond consumers' control - behaviour is not always intentional - time-frame of the attitudes measure attitude tracking programmes - attitudes formed by direct, personal experience with an attitude object are stronger and more predictive of behaviour than those formed indirectly, such as throught advertising Tracking attitudes - attitude surveys provide a snapshot at a given time - attitude trancking provides inferences about progress over time by administering an attitude survey at regular intervals - attitude tracking valuable for strategic decision making Changing Attitudes (excerpt from SBAH 166 - 167) Some basic aspects of communication specifically help to determine how and if attitudes will be created or modified. This objective relates to persuasion > an active attempt to change attitudes. The basic psychological principles that influence people to change their minds (or comply with a request) are: Reciprocity: People are more likely to give if they receive. Including money in a mail survey questionnaire increases response rate by 65% on avg. over surveys that come in an empty envelope. Scarcity: Items become more attractive when they are less available. One study asked people to rate the quality of chocolate biscuits and participants who got only 2 liked them better than those who got 10 of the same kind of biscuit. This helps to explain the attractiveness of "limited edition" items. Authority: Relating to who delivers the message. We tend to believe an authoritative source much more readily. Consistency: People try not to contradict themselves in terms of what they say and do about an issue. Liking: We tend to agree with those we like or admire. In one study, good looking fund raisers

collected almost twice the amount as other volunteers who were not as attractive. Consensus:We often take into account what others are doing before we decide what to do. The desire to fit in with what others are doing influences our actions. Other Principles of Persuasion In addition to these 6 basic principles of persuasion, there is many other ways as well. Some times your work is to face resistance and you must know beforehand how to act. This is typical especially if you are selling vacuum cleaners e.g. In this case you can't just try to force person to buy it, instead you have to deal with the resistance early. Don't ignore resistance, but try to build two-sided-speech by offering new ideas, arguments and proposals. Effective Listening: According to Gerald I. Nierenberg in his book "The Art of Negotiation" If you want to persuade others pay attention to the needs of the one being persuaded. Communication is two-way not one-way process and if you don't know the needs of the one being persuaded you will not likely succeed in your effort to persuade. Once you have discovered the needs of the listener, you can deal directly with them, either assuring the person or convincing him or her that product, service or idea will some way meet those needs. Persuasive Communication has important unique characteristics. Some issues must be answered: - Who? > Perceived source - How? > Message - Where? > Medium - To Whom? > Target Market s characteristics Importance of the source & message (SBAH 172-181, 196-198) The source of a message can have a big impact on how the message is received and accepted. Important source characteristics are credibility and attractiveness. To choose between these values, marketers should act towards a match between the needs and the potential rewards, as well as the type of the product. Credibility (expert) performance risk Expertise, objectivity, trustworthiness, competence and good will. Bias> knowledge (source doesn t have enough), reporting (source lacks communication skills) Attractiveness (celebrity) social risk Perceived social value. Star Power, What is Beautiful is Good When the source is not so important The Sleeper Effect Over time, people tend to forget about the source and change their attitudes anyway. The message is kept in memory so reaction is delayed. - dissociative hypothesis: between message and source - availability-valence hypothesis: selectivity of memory

Importance of the source and management

The source of a message can have a big impact on how the message is received and accepted. The Message Words or Pictures? How often repeated? Both sides of the argument? Open|Closed conclusion? Explicit comparison with competitors? Rational|Emotional appeal (bonding, increase involvement)? Sexual appeal, funny, negative emotions Concrete|Vivid mood? The source Vs the message The ELM model: - Elaboration Likelihood Model of Persuasion

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It assumes that once a consumer receives a message he or she begins to process it. Depending on the personal relevance of this information, one of the two routes to persuasion will be followed. Central Route : The person is likely to think actively about the arguments presented and generate cognitive responses. It is likely to involve the traditional hierarchy of effects. Beliefs are carefully formed and evaluated, and the resulting strong attitudes will be likely to guide behavior. Message factors, like the quality of arguments presented, will be important in determining attitude change. Mostly High Involvement (HI) decisions. Peripheral Route : The person is not motivated to think deeply about the arguments presented. The consumer is likely to use other cues (like the product's package, the attractiveness of the source) in deciding on the suitability of the message. Mostly Low Involvement (LI) decisions. Attention to the SOURCE or the MESSAGE depends on the audience and its level of involvement. As we can see, low-involved consumers tend to pay more attention to peripheral cues and to be more sensitive to stimuli, thus being more affected by the SOURCE. In situations of high-involvement, consumers analyze arguments rationally, thus paying more attention to the MESSAGE.

Culture defined Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. (Hofstede, 1980) Culture is always changing. Culture points the difference between social groups, as it was seen at 4th slide of the powerpoint with the example of 4 countries, Brazil, India, Russia and China. -->Culture is symbolic communication. Some of its symbols include a group's skills, knowledge, attitudes, values, and motives. The meanings of the symbols are learned and deliberately perpetuated in a society through its institutions. CULTURE = the meanings that are shared by (most) people in a social group (P&O) In a broad sense, cultural meanings include: 1. Common affective reactions (we love puppies) 2. Typical cognitions (the world WAS created in 7 days) 3. Characteristic patterns of behaviour (eating habits) Similar to the ABC model on the previous class Importance of culture in consumer behaviour : Culture is part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals.

Culture can be viewed as the collective memory of a society (shared attitudes, rituals, norms and traditions among members). - from generation to generation.

Culture forms the lens through which people view products and try to make sense of their own and other peoples behaviour (acts as a filter).

Consumption choices cannot be understood without considering the cultural context in which they are made.

Two Approaches to CULTURE 1. The content of culture (the elements and products of culture) 2. Culture as a process (creation and movement of cultural meanings) - somehow, marketing tries to manipulate this process. Several issues to consider: 1. Cultural meanings can be analyzed at different levels (macro micro) 2. The concept of cultural meaning (shared or common meaning) is critical to understanding consumer behaviour 3. Cultural meanings are created by people (although we often experience them as given, because we are constantly doing them) 4. Social groups differ in the amount of freedom people have to adopt and use certain cultural meanings 5. Cultural meanings are constantly in motion and can be subject to rapid changes (e.g., beauty ideals) Some ads which were taken as great ones in the past, nowadays, due to constant culture changes, they seem not so good anymore, they may even seem horrible. Consumer behaviour and culture Culture determines: the overall priorities a person attaches to different activities and products (the value system). the shades of meaning (the lens for interpretation) ULTIMATELY: the success or failure of specific products and services (meaningful and meaningless). The goal of cultural analysis is to understand the cultural meanings from the point of view of the consumers who create and use them.

Cultures modify symbols identified with other cultures and present them to a new audience. These cultural products undergo a process of cooptation, where their original meanings are transformed. Culture is the creator of meaning which travel through the society and can me moved and played with by Marketing strategies. Cultural meanings are shaped by rituals and myths which use and mystify certain goods. Spread of fashions in consumption: the meanings created by some members of a culture are interpreted and produced to mass consumption. Marketing implication cross-cultural communication.

Aspects of culture A cultural system consists of three functional areas. Ecology the way the system is adapted to its habitat by the technology used to obtain and distribute resources (eg: industrialized societies vs. less affluent countries). Social structure they way orderly social life is maintained including domestic and political groups (eg: the nuclear family vs. extended family). Ideology the mental characteristics of the people and the way they relate to their environment (people from one society possess usually a common worldview. They share certain ideas about principles of order an fairness. They also share a set of moral and aesthetic principles). Different cultural characteristics Collectivist cultures where people subordinate their personal goals to those of a stable in-group. Individualist cultures where importance is attached to personal goals and where people are more likely to change memberships when the demands of the group (eg: workplace, church, etc) become too costly. The Content of Culture yThe beliefs, attitudes, goals, and values held by most people in a society yThe meaning of characteristic behaviours, rules, customs, and norms that most people follow yThe meaning of the significant aspects of the social and physical environment (social institutions, typical physical objects used by people) There are 2 types of norms: Enacted norms: Very specific; written down => easy to follow (e.g. red light, how to write your thesis, rules where you live etc) Crescive norms: Not written down, not stable, but are still there and conduct individuals => People within the culture know these norms, but outsiders do not. Crescive norms are embedded into a culture and are only discovered through interaction with other members of that culture. These norms can include:

 customs norms handed down from the past that control basic behaviours (e.g.: division of labour in a household or the practice of particular ceremonies). mores customs with strong moral overtones. Violation of mores often meets with strong censure from other members of a society. (more important or stronger than customs) - (e.g.: involve taboo or a forbidden behaviour) conventions norms regarding the conduct of everyday life. These deal with the subtleties of consumer behaviour (eg: the correct way to furnish one's house, wear one's clothes, etc) This is important to marketers, because picking the example on the class if you don't know how Christmas works in some cultures you will not sell in December. Myths yMyths are stories containing symbolic elements that express the shared emotions and ideals of a culture. (Example: The Creation Myth - God created the earth in 7 days) yMany myths involve some binary opposition, where values are defined in terms of what they are and what they are not, e.g. nature versus technology. (Example: A God/A Demon) yModern myths are transmitted through advertising, films and other media. Functions and structure of myths Myths serve four interrelated functions in a culture. Metaphysical they help to explain the origins of existence (myths of the nation, family or company). Cosmological they emphasise that all components of the universe are part of a single picture (myths which simplify the world). Sociological they maintain social order by authorising a social code to be followed by members of a culture (myths which offer hope). Psychological they provide models for personal conduct (myths which give you an idea what your identity should be like). Rituals A ritual is a set of multiple, symbolic behaviours, which occur in a fixed sequence and tend to be repeated periodically. Rituals are related to many consumption activities, which occur in popular culture, e.g. holiday observances, gift giving and grooming. They outline an escape from the complicated world. Rituals need to be carried out correctly (the right procedure, with the right artefacts, etc.). Otherwise they don t work. Four major types are:

possession rituals - involve acts in which a person lays claim to, displays or protects possessions; the act of "personalizing" a consumer good, which is "an attempt to transfer meaning from the individual's own world to the newly obtained good" exchange rituals - rituals in which products or services are exchanged among consumers; "the process of choice by which the giver identifies the gift with the cultural meanings they seek to pass along to the recipient"(i.e. Christmas) grooming rituals - an individual's acts to ensure that special, perishable properties resident in clothing, hairstyles, and looks are maintained, e.g. talking to oneself in the mirror, brushing one's hair 100 strokes a day; divestment rituals - rituals performed to erase the meaning associated with the previous owner of a good (e.g., thoroughly cleaning a new home prior to moving in). the act of "freeing up" objects as they are passed from one owner to another

Rites of passage
y y

A rite of passage is a special kind of ritual, which involves a transition from one role to another. These passages typically entail the need to acquire products and services called ritual artefacts, to facilitate the transition. They are increasingly becoming consumption objects in themselves as well as occasions for consumption.
Modern rites of passage include graduations, initiation ceremonies and weddings, and funerals

3 stages of role transition Separation: the person enters the rite of passage while she or he is detaching from her or his original group or status. (i.e. the first-year-university student leaves home) Liminality: (middle stage) the person is in-between the other two stages (i.e. the new arrives on campus tries to work out what is happening during orientation week) aggregation: the person returns to society after the rite of passage is completed (i.e. the student is coming home for Christmas vacation as a real university student') Hofstedes Dimensions. Gert Hofstede, a Dutch researcher, was able to interview a large number of IBM executives in various countries, and found that cultural differences tended to centre around four key dimensions:
yIndividualism vs. collectivism: To what extent do people believe in individual responsibility and reward rather than having these measures aimed at the larger group?On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for

unquestioning loyalty. Contrary to the stereotype, Japan actually ranks in the middle of this dimension, while Indonesia and West Africa rank toward the collectivistic side. The U.S., Britain, and the Netherlands rate toward individualism.
yPower distance: To what extent is there a strong separation of individuals based on

rank? that is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'. Power distance tends to be particularly high in Arab countries and some Latin American ones, while it is more modest in Northern Europe and the U.S.
yMasculinity vs. femininity involves a somewhat more nebulous concept. Masculine

values

involve competition and conquering nature by means such as large construction projects, while feminine values involve harmony and environmental protection. Japan is one of the more masculine countries, while the Netherlands rank relatively low. The U.S. is close to the middle, slightly toward the masculine side. ( The fact that these values are thought of as masculine or feminine does not mean that they are consistently held by members of each respective genderthere are very large withingroup differences. There is, however, often a large correlation of these cultural values with the status of women.)
yUncertainty avoidance involves the extent to which a structured situation with clear

rules is preferred to a more ambiguous one; in general, countries with lower uncertainty avoidance tend to be more tolerant of risk. deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's search for Truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy. Japan ranks very high. Few countries are very low in any absolute sense, but relatively speaking, Britain and Hong Kong are lower, and the U.S. is in the lower range of the distribution. Although Hofstedes original work did not address this, a fifth dimension of long term vs. short term orientation has been proposed. In the U.S., managers like to see quick results, while Japanese managers are known for take a long term view, often accepting long periods before profitability is obtained. Sacred and profane consumption

Consumer activities can be divided into sacred and profane domains. Sacred phenomena are set apart from everyday activities or products People, events or objects can be sacralized. (e.g. people who make holidaysthey search for activities that differ from those ones they do at home) - Sacralization occurs when formerly sacred objects or activities become part of the everyday - Desacralization occurs when objects that previously were considered sacred become commercialized, which means profane as a result. (i.e. souvenir reproductions of sacred monuments) Profane consumption involves consumer objects and events that are ordinary, everyday objects and events that do not have the special attributes of sacred ones. Collecting is one of the most common ways of experiencing sacred consumption in daily life. It refers to the systematic acquisition of a particular object or set of objects. In this context, consumption and passion are most heavily intertwined.

Utilitarian meaning: Usefulness, the functionality of products. Example, Wheels are not useful we recognize and use them. A motorcycle is useful when we ride it. Sacred meanings: For most brands, this never happens. When it happens, the brand is supremely important for that person. For example: Apple community or the Nike shoe from the movie, professor showed us on the lecture. The guy wanted to buy a special pair of shoes and save it for his son. He thought that his son can stand out when he is in college. Hedonic meaning: Something we enjoy, feelings, sensual, aesthetic. Example soap (connects to sport, energy, aroma, smells). For advertisement add nature and waterfalls. Social meaning: Communicating who we are and where we belong. Self concept elements Content (internal, external) Valence (Positive, negative) Stability (Stable, dynamic) Self-esteem Inner, private self Outer, public self Who we are Middleage- people were born into something, couldn't choose what they wanted. If the dad was a soldier, the son became a soldier. Nowadays- Consumption and experience. We listen to different music, were different clothes, what mobile we use etc.

SELF
y y y y

Actual (What we are) vs ideal (What we want to be) Personal (For myself) vs Social (For others) Multiple self playing different roles, switch by changing clothes etc. (party, work, family dinner). Extended self Something I own is a part of me. If this item is lost or destroyed, the person feels like their personality is changed.