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Process of developing an interpretation of a stimulus, i.e. deciding what a stimulus means. It is crucial in
customer behavior because:
1. Whatever customers perceive is what affects their subsequent actions and behavior.
2. What they perceive is not necessarily what's true (because the process is inherently biased)
Brand changes the perception of a product; people are very much influenced by the brand name that's
put on the product independently of the product quality. Once you see that brand name have certain
perceptions make certain inferences about that brand name Those perceptions are translated to
the product.
A variety of brand elements (i.e. brand name, logo, symbol, character, packaging, slogan, color) can be
chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and
unique brand associations.
1. Make sure the brand elements are of one thought and work together in unison
2. If people see the brand elements/ whatever you do create for that brand identity independent
of the product, what would people think of the brand label per se?
Criteria for choosing brand elements Advantages and disadvantages
1. Memorable (easily recognized/
recalled)
2. Meaningful (descriptive,
persuasive)
3. Appealing (fun and interesting,
aesthetic, rich visual and verbal
imagery)
4. Protectable (legally, hard to copy
competitively)
5. Adaptiveness (able be updatable;
not static)
6. Transferable (go within and across
product categories, across
geographical/ cultural boundaries)
Colors
Slogans/ Taglines
1. Can be tailored to a positioning strategy
2. Can remove some of the ambiguity associated with the brand and/ or symbol
3. Can create its ow equity/ emotion
4. Can reinforce the name/ symbol
Packaging
1. Can influence at the point of purchase (gives you a reason to choose when you're purchasing)
2. Can have continuing influence at the point of consumption (influences your perception of the
product experience itself)
3. Multiple objectives
- Identify/ Present information (descriptive and persuasive)/ Protect and allow
transportation/ Store/ Aid consumption
Creating Impactful Packaging
1. Understand that packaging aesthetics and function 2. Know your distribution channels
are both critical - How do retailers view your package?
- Has to grab consumers’ attention in a sea of - How are channels changing?
competing messages - Which retailers like which package
- Has to work well so that consumers will buy configurations?
again
Packaging Shapes
Soft drink industry market research: if the cans of soda were in the back Another successful
of the refrigerator, people did not consume it as much needed some packaging innovation was
mechanism to bring the cans to the front of the refrigerator so people Hunt's package for getting
would drink more. The new package design single-handedly increased ketchup out that's easier,
market share. It was a very successful new product introduction that i.e. turn the product upside
didn't have anything to do with the actual product, but just the down.
packaging.
Persuasion: an attempt to change belief and attitude (Difficult! due to biasness when taking in stimuli)
Classical Conditioning: persuade people just by Liking: if you like me, you like what I like (e.g.
putting things together all the time (Pavlov’s dog) celebrity)
Reciprocity: I gave you something, you now owe Authority: just because I say so
me
Consistency: always done it that way so keep Scarcity: quick before they are all gone (e.g.
using it lululemon always don’t stock enough)
Social proof: everybody’s doing it
What makes a good celebrity endorsement? Celebrities can be used in both ways,
General Considerations
1. Celebrity/ audience fit 4. Practical considerations (cost, celebrity exposure, risk, value
2. Celebrity/ brand fit for money?)
3. Celebrity attractiveness 5. Social network (have a lot of followers, social connectiveness)
1. How appealing is this celebrity among those who don’t know him/ her?
2. Ratio of popularity/ familiarity
Transfer of Meaning Model (how celebrities are used)
fMRI scans show that there is more activation when people are presented with images of celebrities
(automatic/ visceral reaction to celebrities)
Source Models
Source credibility Source attractiveness
(effective spokesperson; Effectiveness dependent on:
effectiveness depends on Familiarity: Likeability: affection for Similarity: supposed
celebrity’s “expertness” knowledge of the the source because of resemblance between
and “trustworthiness”) source through the source’s physical the source and the
(Celebrity working in a exposure appearance and behavior receiver of the
Central Processing way) message
Explicit mode: “I endorse this product” Co-present mode: celebrity appears with
Implicit mode: “I use this product” product, i.e. companies give celebrities their
Imperative mode: “You should use this product” clothes to wear
Repositioning a Brand
Brand equity must be actively managed over time instead of waiting for it to be outdated.
Potential Cognitive Inconsistency (make consistent by doing something to one of the links of the chain)
Resolution 1: interpret message/ Resolution 2: figure out a way Resolution 3: submission (die
data consistent to what they to feel good about oneself anyway)
think (I don’t believe the data) (belief data but lie to oneself
that you don’t really do it)
If not consistent, consumers will reject it, and try to rationalize so that it makes sense for them.
Consistency theory:
The basic idea is that there is a drive to maintain consistency within cognitive systems. Thus cognitive
structures may change in order to increase consistency among elements.
Example: Oldsmobile
A brand can evolve more 1. Symbols: can update without changing meaning
gradually to gain more 2. Brand name: can change to reflect evolving identity
contemporary associations 3. Slogans: easier to change than the name
while maintaining 4. New products: can be true to the core identity, but add a
familiarity. modern, innovative element
2 ways of changing
1. Just Noticeable Difference (tiny little tweaks so that you still belief it’s the same product, but
over the years, difference is radical)
2. Butterfly effect (move from one to another in a big jump to keep it modern and new) part of
keeping modern/ fresh is part of the reason to buy, e.g. cosmetics. Change is noticeable but
stays within believability
Evolving Trademarks
Major Points
1. Consistency over time is very valuable in building strong brands (a fine line; need to keep your
brand modern, but if you do something that threatens the consistency chain, people won't
believe it. So it's got to be something that is consistent with the brand DNA but is constantly
moving it forward)
2. All brand elements should work in harmony to communicate brand identity
3. Change is sometimes necessary – but be cautious!
4. If you really want to do a good job in keeping your brand modern, you really have to understand
the brand mantra, the brand DNA, the brand positioning, your target segment. You have to
understand what the points of parity are, what the reference frame is. You have to really
understand what the point of differentiation is, what is strong about your brand, what is positive
about your brand, and what is unique. And you have to be consistent with that kind of brand
image as you make these adjustments.