Perception

We each perceive the world differently and construct our own reality out of it. Using our senses Traditionally people have referred to the 5 senses: 1.Vision 2.Hearing 3.Touch 4.Taste 5.Smell We can now add two more senses: 1.Bodily movement 2.Balance There are really 4 senses of taste: 1. Bitter 2. Sweet 3. salty 4. Sour

There are really 4 senses of touch: 1. Pressure 2. Pain 3. Cold 4. Warmth There are two senses of Vision: 1. Color 2. Black and white Vision We rely most on our sense of vision, Package designers know this and make packages easy to recognize and read. Hearing Volume It was found that people spent more time shopping when music was quiet. Tempo It was found that when the tempo was slow people walked slower and sales went up! Common Properties of the Senses Threshold of Awareness: A stimulus has to be strong enough for us to be aware of it. This is known as the absolute threshold. Difference Threshold: The minimum amount of difference that you can detect is the J.N.D.. A product that claim to be better than the competition must be noticeably better. Producers can reduce the size of products by less than the JND.

Sensory Adaptation: You are not aware of thing that are constant such ass te pressure exerted on your skin by a watch. If the stimulus changes your sensual receptors are back in business. Processing Sensory Information: We have to learn how to interpret sensory information as to make it useful. Past experience and current emotional states can effect our perceptions and change a bush in a dark alley into a mugger! Focusing and Attention: By focusing our perceptions we give attention to certain stimuli. We concentrate on only immediately important stimuli and ignore the rest, filtering out all of the unimportant noise. Selective Perception and Distortion: In order to perceive something we must give it attention. Psychologists refer to external and internal factors in trying to understand attention-getting and selective perception. External Factors Internal Factors 1. Change 1. Emotional States 2. Contrast 2. Different Interests 3. Movement 3. Perceptual Set 4. Repetition 5. Size 6. Intensity Perceptual Distortion: People distort their perception to fit what they expect to see. Organizing Perceptual Clues: 1. Illusions 2. Figure and Background 3. Contour 4. Grouping 5. Closure Zeigarnik Effect Because of our need to complete the incomplete interrupted tasks tend to stick in our memory better than completed tasks. Gestalt Psychology We perceive things as a gestalt, German for configuration.

Perceptual Constancy: From our angle of sight we see the top of a cup as an ellipse but we know that it is round. Depth and Distance: Helps us to translate two-dimensional information into three-dimensional. Movement Much of the movement that we perceive is illusionary such as films and flashing neon light that look like they are moving. The Phi Phenomenon. Subliminal Perception James Vicary flashed messages into movies. Remains suspect as to its effect. Self imposed psychological impressions of how we se ourselves are potent forces in marketing. For example young executives see themselves driving BMWs and teachers sdee themselves driving VWs. Perceived Risk 6 forms have been Identified: 1. Performance 2. Financial 3. Physical 4. Time 5. Social 6. Psychological Uncertainty about Purchase Goals Is the car for commuting or occasional trips? Uncertainty about best alternative choice is the blue or red hair ince more effective in achieving a youthful look. Uncertainty about making or not making a purchase Coping with Risk: We cope with risk by: 1. Information Gathering 2. Relying on brand loyalty 3. Some official seal of approval 4. The image of a major new brand 5. The image of the store

Mod: 5 Personality
Personality The traits that make a person unique, the Characteristic ways in which he behaves,. 4 Formal Theories of Personality 1. Freudian Psychoanalysis The human personality is made up of the id, ego and superego. a. Id raw impulses of sex and aggression. Unconscious. b. Ego rational conscious thinking part of our personality. c. Superego Unconscious, deals with morality our conscience. Responsible for our feelings of guilt. Freud believed the first few years of a persons life to be crucial in shaping his personality. Freuds Developmental Stages a. Oral Stage Lack of Satisfaction produces a hostile sarcastic personality and to much satisfaction a dependant gullible personality. b. Anal Stage Strictness leads to an anal personality and laxness leads to disorder and messiness. c. Phallic Stage is crucial to determining ones attitudes towards people of the opposite sex and positions of authority. Applications to Marketing Earnest Dicter The consumer is often unaware of the needs that the product may be satisfying. The consumer might be trying to live out his fantasies. Marketers try to appeal to lifestyles with the key element being wish fulfillment rather than the attributes of the product itself. Marketers use personality tests to get behind the public face of the individual Minnesota Multiphasic Personality inventory (MMPI): has 550 questions where the testee answers true, false or cannot say. Is good for revealing patterns of behavior and attitudes. Thematic Appreciation Test (TAT): Requires the subject to project onto some vaguely defined picture what is on his mind. Consists of 20 black and white pictures. The pictures act like a screen on which the

testees inner life is projected. Rorchach Ink Blot Test: Ten Pictures of ink blots are used 5 in color and 5 in black and white. Subjects are asked what they see in the ink blot, what it reminds them off. No right or wrong answers. 2. Neo- Freudian Psychoanalysis Felt that Freud gave to much importance to biological drives. NeoFreudians tend to de-emphasize the id in favor of the Ego. Karen Horney states that people can be classified according to their relationships with others: 1. Compliant 2. Aggressive 3. Detached This is measured on a CAD personality scale. Compliant people preferred recognized brands. Detached people were less interested in being consumers. 3. Self Theory Centered on the work of Carl Rogers. People try to live up to their potential. The fact that their potential so often remains unfulfilled is due to the oppressive effects of family school and other social institutions that shape the lives of the subjects. Rogers believes that people are basically rational and are motivated to be the best that they can be. The concept of Self: As infants grow they explore themselves and their surrounding. Young children have no choice but to think of themselves as how their parents tell them they are. By the end of adolescence our selfimage has been set although not finalized. Thus it has long been known that the way you think of yourself has bearing on how others see you. Marketing the concept of self: Actual self Image How we actually see ourselves. Ideal self Image How we would like to see ourselves. Social self Image How we think others see us. Ideal social self Image How we would like others to see us. Advertisers try to appeal to the different self-images for different products. It is especially important when people are trying to change an actual physical self-image into an Ideal one. An example is as the black self-image improved the sale of hair straiteners declined. 4. Trait Theory:

The leading theorist is Raymond Cattell. He states that we all have characteristics called traits that are shared but we all differ on the strengths of various traits. Cattel eventually came up with a list of 16 different factors on which he bases personality profiles. His personality test known as the 16PF is now widely used in job selection and vocational guidance. Cattell suggests that there are 3 important sources of personality data: Life data, self-report questionnaire data, and objective data from personality tests. Over 300 studies found very few strong links between aspects of personality and particular products. There are probably a number of reasons for this: 1. The above techniques were adopted from clinical tools. 2. Personality and consumer choice are so complex that it is hard to find a correlation. 3. There are many other factors excluding personality that lie behind consumer behavior. Money and availability being the most obvious. Brand Personality A more modest and attainable approach in marketing is the development of a brand personality. To give a product characteristics such as old fashioned, elegant rugged or masculine.

Ego Conscious Unconscios Id Superego

Mod: 6 Learning Memory and Thinking

Learning is the relatively permanent process by which changes in behavior, knowledge, feelings or attitudes occur as the result of prior experience. 1. Is permanent and not temporary. 2. Based on previous experience and not maturation. 3. Behavior and knowledge refer to the two dominant schools.

Behaviorist Approach
Founded by J.B. Watson, is purely objective and the goal is the prediction and control of behavior. Watson believed that the only thing to be studied was someones observable physical behavior. Pavlov and Classical Conditioning

Marketing application of Classical Conditioning

Stimulus Generalization The dog would salivate not only at the usual bell but also at other bells with a similar sound. Stimulus Discrimination The dog can be trained not to salivate at certain bells and salivate at the sound o others. Marketers want to be careful to when to and not to use stimulus generalization and discrimination! Campari and Cinzano example!

Skinner and Operant Conditioning

Operant Behavior - An animal exploring its surroundings in order to operate on them.

Operant Conditioning Training using conditional techniques. Positive Reinforcement Press the bar to get a reward. Extinction Remove the reward to stop the behavior. Negative reinforcement Press the bar to avoid pain. Punishment Giving pain after an undesirable action. Consumer Applications of Operant Conditioning It is important at all cost that consumers are not punished (get a bad product) after a purchase. There is no cheaper form of positive reinforcement than saying thank you or following up with a thank you note.

The Cognitive Approach

Was founded By Wolfgang Kohler. The cognitive school emphasizes the importance of knowledge and insight. The greatest advantage of an insightful solution is that unlike trial and error learning it can be applied to new situations. There is a link between the psychology of perception and the psychology of learning, the concept of memory. Information Processing and the Concept of Memory Information Processing Whatever we learn will be of no use unless we can retrieve it. When we store information and experience it is called memory. Whatever can be retrieved is remembered and whatever cant be retrieved is forgotten. People can recognize more advertisements than they can recall. It is important for the marketer to decide whether to aim for recognition or recall in planning a marketing campaign. Recognition will be a much cheaper option. The process of committing to memory seems to involve 3 distinct stages. 1. You register a stimuli. Less than a second. 2. Short term memory. Decide whether you want to remember the stimuli. Up to 30 seconds. 3. Long term memory. The information is processed, repeated or rehearsed so that it sticks.

Information

Sense Memory

Short-term Memory

Long-term Memory

Information is forgotten

Not Registered

Not Encoded

Not Available

If we cant remember something maybe we have not been given a strong enough stimulus or else we dont want to remember it. Making Learning Meaningful Repetition has diminishing returns. May be very effective when there is little competition but may cancel each other out when there is a lot of competition. Visuals are very effective. That is why symbols are used to represent brands. Self-referencing The act of relating information to ones own life. Mnemonics Breaking information down into groups and associating each group of information to a trigger. Meaningfulness We learn things by linking them to thing that we already know. We organize our memories into packages called schemas. Modeling Seeing other people doing something and using them as models for our own behavior.

Mod: 7 Motivation
Motivation A hypothetical psychological process which involves the experiencing of needs and drives and the behavior that leads to the goal that satisfies them.

Buying Behavior

Ability

Opportunity

Motivation

BB = f(A,O,M)
Fulfillment of Needs Primary Biological and Physiological needs. Secondary Psychological needs. Abraham Maslow Hierarchy of Needs

Self Actualization Self Esteem Social Needs Safety Needs Physiological Needs

Consumer Applications of Maslow People might trade some needs to satisfy others. Example students spend less on housing (Physiological) and more on education (Self-Actualization, Self-esteem). Marketers can aim a product at satisfying more than one level of need. If I am thirsty then water will satisfy my Physiological need but advertisers can advertise Coke to satisfy both Physiological and Social Needs. Perception Mapping Hierarchy 5 Value For (Lo) Money

(Hi)

0 The Motivational Mix Multiple Motives There are many reasons why people shop. To get out of the house. Entertainment. Meet Friends. They need something. Marketers should therefore consider factors that underlie impulse buying. Approach and Avoidance Kurt Lewin suggested that motivational pressures can be either positive or negative. Conflicts arise in 3 types of situations: 1. Approach-Approach conflict: The consumer has to choose between two equally good choices. Fudge cake or strawberry-cheese cake? 2. Avoidance-Avoidance Conflict: The consumer has to choose between two undesirable choices. To fix the vacuum cleaner or two

buy a new one. 3. Approach-avoidance Conflict: The consumer must choose between positive and undesirable choices. Buy the dream car or avoid the large mortgage associated with it. Marketers try to emphasize the approach part of the sale. In addition they can reduce the Avoidance part by lowering cost. The Force of Inertia Changing habits that have been well learned is very difficult. Therefore it takes a lot of effort to overcome inertia. Involvement Is concerned with the relationship a consumer has with a product. 1. Antecedents of Involvement a. Person Who is the person. People that like cars will be more likely to go to car races demonstrating higher involvement. b. Product - People react to the same product in different ways. The les generic a product the higher the involvement with it. As involvement increases so does perceived risk. c. Situation The situation in which a product is purchased can effect the level of involvement. Buying a gift requires much more involvement than buying for oneself. 2. Properties of Involvement People with a higher level of involvement with a product will tend to seek out information on the product actively. Consumers with les involvement should be advertised to on a more passive medium such as TV. 3. Outcomes of Involvement Will depend upon the interaction of the Antecedents and Properties Involvement. Brand names will have a hard time entering the memory of someone with low involvement. On the other hand mere exposure to a heavily advertised product may be enough to get a customer with low involvement to buy it if he has no relationship with the competing brands.

Specific Needs 1. Need for Achievement

McClelland: people with a high n ach level exhibit a need for: a. Moderate risk with worthwhile payback b. Feed back of their performance. c. Individual responsibility recognized. People in sales and marketing usually have a higher n ach. 2. Need for Affiliation Most teenagers would fall into this category. 3. Need for Power The lowest level of the 3 needs. Powerful cars and computers are to be marketed to people with a high need for power. Unconscious Motivation Motivational Research The most direct application of Freudian theory was the work of Ernest Dichter. Some examples are: When a woman pulls a baked cake out of the over she is subconsciously giving birth. Ice Cream taps into the unconscious of love and nurturing. Men who wear suspender are afraid of castration. Criticism these tools were developed for the clinic to help people with psychological problems. Creating Needs There is no evidence that needs can be created, however existing needs can be stimulated. Semiotics The use of symbols to represent products. Symbols are much more powerful than words. It is hard to tell what a symbol means to a particular individual. Even Freud said sometimes a cigar is just a cigar. Remember the prunes example and what they represent.