...Section 2 AFFECT AND COGNITION AND MARKETING STRATEGY Chapter 3. Introduction to Affect and Cognition Chapter 4. Consumers’ Product Knowledge and Involvement Chapter 5. Attention and Comprehension Chapter 6. Attitudes and Intentions Chapter 7. Consumer Decision Making Chapter 3 INTRODUCTION TO AFFECT AND COGNITION Authors' Overview of the Chapter This is the introductory chapter on consumers' affect and cognition, and it provides a foundation for the rest of this section. Students need to understand the basic concepts presented here in order to apply them throughout the course. We begin the chapter by briefly reviewing the four elements in our basic model, the Wheel of Consumer Analysis. Then we discuss in some detail two broad, internal aspects of consumers' responses--affect and cognition. We describe affect and cognition in terms of two psychological systems that sense, interpret, and respond to information in the environment. The affective and cognitive systems can be thought of as essentially independent, yet highly interrelated modes of psychological response. Affect. Affect concerns people's feelings and emotional reactions. We identify four types of affective responses--emotions, strong feelings, moods, and evaluations--that vary in intensity and level of arousal (see Exhibit 3.2, p. 42). We emphasize that the affective system is largely...
Words: 12758 - Pages: 52
...According to Holt (2004), the marketing practices employed by many corporations fail to achieve their potential within a given market because of the simple oversight that they do not put the targeted consumer culture first. Holt (2004) argues that cultural relevance drives brand preference, not the other way around. The consumer culture is therefore decisive when branding, and the branding approach must be adapted to the current consumer culture stimulations in order to be effective (ibid). Broadly speaking, consumer culture is defined as ‘a system in which the transmission of existing cultural values, norms and customary ways of doing things is carried out through consumption in everyday life’ (Lury, 2011). Hence, consumption will in this...
Words: 2894 - Pages: 12
...“Global Consumer Culture is a beguiling illusion that completely glosses over the hard realities of national, ethnic and religious differences. It is therefore a dangerous fiction for the marketing manager to engage with.” Discuss, with examples. Introduction Globalization has made a more variety of products available for all consumers. In this sense, globalization increases differences, rather than generate homogenization (Lee & Usunier, 2009). Moreover, global influences are adapted to local circumstances; therefore, globalization results in an increasingly cultural diversity. The existence of a global consumer culture does not imply the disappearance of differences; rather, the modern culture results in the sum of these differences (Arnett, 2002). Global consumer culture (GCC) is a new stratum of common culture that superimpose on national cultures (Lee and Usunier, 2009) in the same way in which these overlap local traditions and subcultures existing within national boundaries, given the fact that most countries are already multicultural (Smith, 1991). Notably, it has been argued that culture is the most influential factor on consumer behaviour (Cleveland and Laroche, 2007); consequently, it is important to define the extent to which a modern global culture determine purchasing decisions, and these insights should inform marketing strategies. Therefore, the question is whether a GCC does exist, in which sense it should be interpreted, and how it does affect national cultures...
Words: 3284 - Pages: 14
...Easier because they can get information from all the types of advertisements they see and hear everyday – print, billboards, online, television, radio, etc. Advertising can be perceived as an answer to one’s needs (basic and daily necessities) and wants (what they buy, but they do not need). Each of us is different, so we all have our perceptions toward a brand/product or other advertisements we see or hear. However, companies still look for the real reason why consumers buy, what they buy, and when they buy. This is because it will help them know what brand/product or service to offer in order to satisfy them, and possibly maybe, let them become loyal buyers/users. Consumers buy as they aim to satisfy their needs and wants. Consumer needs are their basic and daily necessities, while wants are the things they buy, but they do not really need, those which will improve/enhance their self-image. Today, we can see that advertising has started to bloom, so a lot of companies are doing the best they can do, not only to make people aware of their specialty brands/products, but also to make them buy and become loyal consumers. In order to achieve that major goal, companies began using a kind of advertising that can help them increase sales through people who can...
Words: 5761 - Pages: 24
...Martin and Bush, 2004). Celebrity endorsement can be divided into three distinct forms: explicit endorsement, where the endorser clearly recommends a product, implicit endorsement where he just mentions that he uses the product, and lastly he can co-present a product, through showing himself with the product (McCracken, 1989). Overall, celebrity endorsement has the ability to significantly influence the view on the endorsed brand, since in a consumer’s mind a high quality endorser is generally seen as a sign for superior product quality, leading to a better evaluation of the brand (Till, 2001). Additionally, well selected celebrity endorsement generally has a positive financial influence for the brand. Several researchers identified a positive impact of endorsement announcements on the stock market price of the respective company (e.g. Agrawal and Kamkura, 1995). Further positive influences from celebrity endorsement can be found summarized in Table 1. Author(s) Year Influence Atkin and Block, Tripp, Jensen, and Carlson Silvera and Austad 1983; 1994 2004 more favourable brand evaluations Misra and Beatty 1990 better memory of advertising messages Kamins, Ohanian, 1990 1990 the opportunity to...
Words: 4461 - Pages: 18
...Introduction | 3 | 2. Analysis | - | 2.1. Meaning | 4 | 2.2. Learning | 5 | 2.3. Self Cocept and Personality | 6 | 2.4. Culture | 7 | 2.5. Research | 8 | 2.6. Motivation | 9 | 2.7. Disposition, Recylce and Reuse | 10 | 2.8 Group Influence | 11 | 3. Conclusion | 12 | 4. Appendix | 13 | Introduction ‘Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires’ (Solomon, 2010, p. 33) We chose Le Marché supermarket to record our observations. Marché Retail Pvt Ltd, has been in the food business for the last 20 years. Well located, aesthetically designed and well stocked with the best from across the globe, the large format stores under the brand name Le Marché. Le Marché caters to the food requirements of people at every level. By offering the convenience of shopping in comfort, assisted by customer focused staff, and a wide selection of exotic and basic groceries to choose from, Le Marché aims to be the preferred destination for food shopping in India. We visited the store on 27th October around 5 pm and recorded our observations. To record our observations we kept in mind the various components of Consumer Behaviour, like: * Meaning * Learning * Self Concept & Personality ...
Words: 3192 - Pages: 13
...serve customers? There are a number of features to this system that make it customer oriented. The Toyota system responds more quickly than competitors, allowing the company to correct any mistakes and react to market trends faster than competitors. The system has a chief engineer responsible for the product from design to marketing. This may allow consumer research to function as a direct input into engineering specifications rather than become a secondary concern after the product is designed. Since the corporate philosophy is to serve customers, consumer inputs are more likely to be used develop better new products. 2. In what ways is Toyota's manufacturing system designed to serve customers? There are a number of features in Toyota's manufacturing systems that are designed to serve customers, including the following features. Employees, even on the assembly line, are trained to consider their output as a product that should satisfy the next employee (the "customer") who receives it. If everyone in the company is satisfied with the quality of the work received from others, it is more likely that the ultimate consumer will be satisfied with the final product. Toyota's manufacturing system has close relationships with suppliers and demands high-quality products from them. Toyota is...
Words: 30618 - Pages: 123
...Executive Summery This report attempts to study the consumers’ behavior for a particular cola brand, MOJO. It is brand of Akij Food and Beverage Ltd., a sister concern of prominent group of companies of Bangladesh, Akij Group. In the year 2007 MOJO was the market challenger in Bangladeshi cola market with a sales of about 52 crores BDT. The brand was launched in 14th April, 2005 targeting the youth of Bangladesh who like the Bangladeshi trends. All those years MOJO is doing satisfactory in the market place and competing well with RC Cola). People prefer MOJO’s pricing but it has to improve its image in status and quality issues. However, still now MOJO has the chance to recover its own position because target customers (according to the survey result) are potential and have not constructed their belief structure for MOJO. For some particular aspects of consumer behavior such as perception, attitude, self-orientation and life style etc, this report has found out some drawbacks and recommended some affective strategies to recover those issues successfully. Introduction Origin of the Report While doing the Consumer Behavior course; our course instructor Md. Mahamud Zubaer assigned us to do a term paper on the consumer behavior of a product. We choose “MOJO Cola” on which we have conducted our total term paper. Objectives The main objectives of the term paper is to - 1. Find out the consumers belief, attitude and behavior about MOJO cola 2. Find out...
Words: 4421 - Pages: 18
...Celebrities’ Impact on Branding Center on Global Brand Leadership Columbia Business School January 15, 2003 Christina Schlecht 527 Riverside Dr., Apt. 4K New York, NY 10027 (212) 280 5447 cschlecht02@gsb.columbia.edu Table of Contents 1. Introduction 2. A Definition of ‘Celebrity’ 3. Celebrities as Spokespersons 4. Source Credibility and Attractiveness 5. The Match-up Hypothesis 6. The Meaning Transfer Model 7. Multiple Brand and Celebrity Endorsement 8. Conclusion Table of Figures Figure 1: Catherine Zeta-Jones endorsing the brand ‘Elizabeth Arden’ Figure 2: Successful and unsuccessful celebrity endorsements Figure 3: Meaning transfer in the endorsement process Figure 4: Brands endorsed by top model and actress Milla Jovovich Figure 5: Celebrities endorsing the luxury brand ‘Omega’ 2 Introduction The billions of dollars spent per year on celebrity endorsement contracts show that celebrities, like Liz Hurley, Britney Spears and Tiger Woods, play an important role for the advertising industry (Daneshvary and Schwer 2000, Kambitsis et al. 2002). Female athlete Venus Williams, tennis player and Wimbledon championship winner in 2002, for example, has signed a five-year $40 million contract with sportswear manufacturer Reebok International Inc.1 Theory and practice prove that the use of super stars in advertising generates a lot of publicity and attention from the public (Ohanian 1991). The underlying question is, if and how the lively interest of the public...
Words: 3216 - Pages: 13
...PROPOSED TOPIC: Examining the influence of Brand Image on consumer buying behaviour. The Case of Apple I-PHONE in the UK. INTRODUCTION OF TOPIC: Nowadays firms in all segments are probing for a new foundation of sustaining competitive advantage because the competition in the marketplace is getting more rigorous. However brand image has stand as one of the powerful tool of gaining comparative advantage. It is certain that firms with powerful brand image make a momentous progress in the marketplace. A strong brand will project a picture of superiority of a firm’s product or service. Apple Inc is an American multinational corporation that market and design personal computers, electronics and computer software. Apple Inc was founded in April 1976 in Cupertino California by the late Steve Jobs. Apple Inc is the largest technology company in the word by profit and revenue. Apple Inc has built a reputation as a consistent and trustworthy electronic company. Apple aspires to become the world leader in electronics, computer software and personal computer. RATIONALE FOR THE TOPIC: The rationale for my topic holds on the fact that brand is becoming the tool for absolute advantage for business in the twenty-first century. It is a challenge for organisation to survive in the constant and fierce battle of brands in the wallets, heart and mind of consumers. Though this study was premeditated for a course work, it will go beyond the purpose, the result of this study will assist existing...
Words: 2284 - Pages: 10
...MKT2CBE Consumer Behaviour Week 2 Chapter 2, Value and the Consumer Behaviour Value Framework Learning Outcome 1: Describe the consumer value framework, including its basic components CVF: Identifies variables that influence the consumer both internal and external whilst also looking at the process of turning a need into a want into the acquisition of a product; then having the product do something for them (creating value) be it hedonic or utilitarian. Internal Influences: Learning, Perception, Memory, Attitude, Categorisation (cool, uncool) Personality of Consumer: Motivation, Personal Values, Lifestyle, Emotional Expressiveness (Assignment) Consumption Process: Needs, Wants, Exchange, Costs/Benefits, Reactions Value: Utilitarian/Hedonic Relationship Quality External Influences Situational Influencers Affect: feelings Consumer research: defining, establishing and testing individual differences in order to divide market External Influences: interpersonal, social environment (workmates/housemates/family) Situational Influences: time of day Learning Outcome 2: Define consumer value and compare and contrast two key types of value Value: What you get – What you give up eg. 7/11 convenience of opening 24/7 allows the company to introduce a higher premium Utilitarian: utility aspect (product, functionally, does something for you) Hedonic: facebook updates on your phone Learning Outcome 3: Apply the concepts of marketing strategy and...
Words: 2168 - Pages: 9
... 45 INTRODUCTION “A sign of celebrity is that his name is often worth more than his services.” -Daniel J Boorstin And this is what exactly the marketers took as a firm base to advertising industry. We people are diehard fans of movie and sports stuff, and this characteristic of consumers has invited the concept of endorsing celebrities from different fields namely movies, sports, glamour, fashion, modelling etc for different brands. With several products being launched every other day, advertisements for each one of them may go unnoticed but even then the glamour of celebrities seldom gets unnoticed. The celebrity fits in between the producers and consumers where he tries to bring the image of the product closer to the expectations of the consumer. Thus endorsing a celebrity for a product and its overall impact on the brand is very significant. Companies invest large sums of money to endorse celebrities. Because of the fame the celebrity not only...
Words: 7962 - Pages: 32
...“How Color Psychology affects Consumer Behavior” Term Paper in General Psychology _________________________________________ Submitted to Prof. Artemus Cruz _________________________________________ Submitted by Michelle P. Garcia BSBA MM 3-1 _________________________________________ March 26, 2013 I. Introduction Colors play an important role in our lives. It gives meaning to everything we see. As Human our color vision influences everything from our art and poetry to the colors we paint our homes and the clothing we choose to buy. Colors distinguish a thing from the other. Colors determine our emotions. Pablo Picasso once quoted, “Colors like features follow the changes of the emotions”. Do you feel happy in a yellow room? Does the color blue make you feel calm and relaxed? Artist and interior designers have already proven how color can dramatically affect moods, feelings and emotions. Color is a powerful tool when it comes to communication and can be used to signal action, influence mood and cause physiological reactions. How color affects the effectiveness of the business? Marketing is a science of satisfying human wants and needs. When this filed acquires the principles of color psychology, it would be a great help for the marketers influence consumer behavior. Since color is an n important factor in the visual appearance of the products as well as in brand recognition, color has become...
Words: 4107 - Pages: 17
...DOUGLAS B. HOLT Brands and Branding Branding has become one of the most important aspects of business strategy. Yet it is also one of the most misunderstood. Branding is sometimes considered to be merely an advertising function. And many managers and business writers hold the view that branding is about the management of product image, a supplementary task that can be isolated from the main business of product management. This note provides an alternative perspective, arguing that: * Branding is a strategic point of view, not a select set of activities. * Branding is central to creating customer value, not just images. * Branding is a key tool for creating and maintaining competitive advantage. * Brands are cultures that circulate in society as conventional stories. * Effective brand strategies must address the four distinct components of brand value. * Brand strategies must be “engineered” into the marketing mix. This note develops a set of concepts and frameworks to guide the design of brand strategies. From Value Proposition to the Brand Marketing strategies begin with the value proposition: the various types and amounts of value that the firm wants customers to receive from the market offering. The value proposition is value as perceived by the firm, value that the firm seeks to “build” into the product.1 In marketing, the value proposition is sometimes referred to as the positioning statement.2 Common wisdom in business often assumes...
Words: 4809 - Pages: 20
...Introduction to Consumer Behaviour What is Consumer Behaviour? * The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires * An ongoing process * Exchange – 2+ people giving and receiving something of value = an integral part of marketing Consumers’ Impact on Marketing Strategy * Consumers’ needs can be satisfied to the extent that marketers understand the people/orgs that will use what they are trying to sell – better than the competitors * Consumer response is the test of whether a marketing strategy will exceed – knowledge about consumers is important Segmenting Consumers * Marketing segmentation – identifies groups of consumers who are similar to one another in 1+ ways and then devises marketing strategies to appeal to 1+ of these groups * Demographics – measure observable aspects – age, gender, family structure/life stage, social class/income, ethnicity * Psychographics – measure consumers’ personalities, attitudes, values, lifestyles Marketing’s Impact on Consumers * Relationship marketing – making an effort to interact with customers on a regular basis, giving them reasons to maintain a bond with company * Ex: restaurant sending a birthday coupon to consumer every year * Popular culture – music, movies, books, sports, celebs, consumed by mass market – a product of and inspiration for marketers * Consumer-generated...
Words: 7564 - Pages: 31
