1. Discuss the statement marketers dont create needs; needs pre-exist marketers.

Can marketing efforts change consumers needs? Why or why not? Can marketing efforts arouse consumer needs? If yes, how?

Customers have needs and marketing identifies those needs and based on the company's capabilities, defines product and/or service characteristics that satisfy some or all of those needs. Then, marketing communicates the product features and benefits to the customers in such a way that they can realize how the product and/or service satisfies their needs and they select and purchase that product. Marketing does not create needs. Marketing cant create needs, but it can arouse needs Arousal will be depended on how motivated the individual is to satisfy there needs Motivation: An inner state of arousal that provides energy needed to achieve a goal High level motivation: Motivation drives behaviours consistent with a goal and creates a willingness to expend time and energy in engaging in these behaviours e.g Someone motivated to buy an expensive game, may get a second job to perform What affects motivation? - Personal relevance (something that has a direct bearing on your life e.g. clothes, college) - Consistency with self (mental view of who we are e.g. whenwe are buying clothing we a making a statement of who we are, biker aka Harley Davidson) - Value (customers are more motivated to attend and process information is it aligned with their values e.g. if you value education you will go and get a degree) - Needs an internal state of tension caused by disequilibrium from a desired physical or psychological sated (motivated to satisfy a need) High effort attitude formation and change - cognitive foundations of attitudes -Direct or imagine experience - reasoning by analogy or category - values-driven attitudes -social identity based attitudes generation : consider yourself a sports buff you maye love sports apparel endorsed by your favourite athlete - Analytical processes of attitude formation: when consumers use an analytical process of attitude formation after being exposed to a stimuli e.g. impotency drug cialis, man might think i need this product, or they paid the guy to say that, product will never work, These generated thoughts will influence the attitude toward cialis Influence by: source factors, message factor Low effort attitude formation and change -Affective foundations of attitudes - emotional processing - attitudes towards the ad - Mood - Mere exposure effect (when familiarity leads to a consumers liking an object e.g.. Duracell batteries) - Classical conditioning (Ivan Pavlov dogs salivate at the sound of a belly) - thin-slice judgement (assessments consumers make after a very brief observation e..g less than 60 seconds) - Body feedback- If you nod you become receptive to the brand Influence by: source factors, message factor
Marketing is a job to find and identify what needs are not being satisfied by the consumer and create a solution that will meet those needs of the customer

A counter argument is when a company comes out with a new to the world product. The argument is that since there has been no such product before, how can there have been needs? The best way to explain how this argument does not suffice is through the creation of the PC. No one had a computer in their house until the PC was invented. So how can you measure the needs for the customer for a PC. Surely, marketing, in specifying the PC created a need. The logic is flawed. There were needs that were not met or not met fully before the PC came along; for document creation, games, communication, etc. All of these needs were met via technological solutions: typewriter, board and card games, telephone and mail. With a little debatability, the PC does in fact better satisfy these needs, but these needs prexisted the product. Futhermore, I would argue I am in agreeance with the marketing philosopher Philip Kotler: who stated that needs pre-exist marketer, marketers along with societal factors, influence wants. Marketers promote the idea that Mercedes would satisfy a person s need for social status. They do not however, create the needs for social status Needs are internally activated Needs are innate, this can be quite clearly articulate in Maslows hierarchy - Self actualisation (1st): The desire for self-fulfillment and to effectively utilise all their potential to become all they are capable of - Esteem (2nd): The need for prestige, success, accomplishment, ego, confidence, self esteem, respect of and by others -Love/belonging(3rd) : friendship, family, sexual intimacy -Safety needs: shelter, protection, security, employment, property - Physiological: the biological needs for food water and sleep Based on Maslows it is clear that needs are internally activated. However marketers can harness these needs, they can employ resources to persuade consumers which needs will be met and what needs will take priority. Marketing efforts can arouse consumer needs but not create them.. they can do it via.. blah

2. Greater selection and product variety makes it super easy for consumers to find a product that matches their tastes. Using consumer behaviour concepts, discuss this statement considering the decision process of both a high- and low-effort consumer. Not necessarily can lead confusion The decision making process varies depending if the customer is of high level or low effort Descion making process: - Need recognition - Information search: seeking value - Evaluation of alternative: assessing value - Choice: purchase decision, buying value (compensatory decision rules, non compensatory decision rules) - Post purchase behaviour: value in consumption or use may engage is cognitive dissonance

Consumers may skip or minimise one or more steps in the purchase decision process depending on the: -- the level of involvement -- The personal, social, and economic significance of the purchase Level of involvement - Enduring involvement: when we show interest in something over a long period of time (highly motivated) - Situational involvement : temporary interest in an offering/ activity/ decision (low motivation) - Cognitive involvement : interest in thinking and processing information about something (low motivation) - Affective involvement: interest in expending emotional energy and evoking deep feelings about something (a person who listen to music to experience intense emotions is exhibiting affective involvement) Low and high consumer involvement has important implications for marketing strategy Low effort: - Based on heuristics (rule of thumb)

market beliefs - Brand loyalty - Habit - Impulse purchase Three characteristics of high involvement purchase 1. Expensive 2. Can have seirous person consequences 3. Could reflect on one social image Highly motivated and involved purchasers, engage in extended problem solving which means the consumer is engage in all the stage of the purchase decision process, and gives considerable time and effect on external search and in idenitifying and evaluating alternatives. Low motivated and involved purchasers engage in routine or limited problem solving, They expend little time or effort, based on habits, and is typically used for low priced products. Based of motivation and involvement marketers can employ a variety of tactics to accommodate for these LEARNING PROCESSCHOICE TACTIC-CHOICE- USAGE (outcome, reinforcement (positive), no reinforcement, negative experience) - performance related (tactics based on benefit, features, evaluations) Good for HIGH - Habit (LOW) - Brand loyalty (LOW) - Price tactic (High) - Normative tactic (low elaboration based on other opinions) - Affective tactic (tactics based on feeling) - Variety seeking (trying something different randomly then go back to normal) High Effort: High effort consumers are confronted with a variety of different types of decisions to make - Deciding what offerings to chose: Thought-based decision (brands, product attribute, gains and losses), Feeling based decision (appraisals and feelins, affective forecasts) - Deciding whether to make decisions now - Deciding whether alternative can be compared - High effort thought based decisions COMENSATORY V NON COMPENSATORY compensatory: mental cost benefit analysis (in which negative features can be compensated by positive ones), compare brands by attributes - Non compendatory (negative info that leads to reject of info): Conjunctive (non negotiable cut offs e.g. 500 gb harddrive) Lexicographic (compare brands by attributes one at a time) LOW EFFORT Unconscious low effort decision making : consumers may make a decision without being consciously aware of how or why they are doing so. Such unconscious choices may be strongly affected by environmental stimuli such as the fragrances of a perfume in a department store Conscious low effort decision making: research propose a hierarchy of effects for low effort situations that follows a thinking behaving feeling sequence. The customer enters the decision process with a set of low level beliefs based on brand familiarity obtained from repeated exposes to advertising (in store exposure or prior usage). In the absence of attitude, these beliefs serve as the foundation for the decision maker or behaviour. After making the decision the consumer evaluates the brand and may or may not form an attitude

8. Attitudes are a strong predictor of behaviour. Do you agree or disagree with this statement? Using consumer behaviour concepts, discuss this statement

Peoples behaviours does not always correspond to their attitude LaPiere did a classic field study in the 1930s, where he found that hotel and restaurants despite their written statements that they would not do so Later research reveals that attitudes can predict behaviour based on certain factors including: (11 FACTORS) - Level of involvement/elaboration: Attitudes are more likely to predict behaviour when cognitive involvement is high and consumers elaborate or think extensively about the information that gives rise to their attitudes. Attitudes also tend to be strong and hence more predictive when affective involvement is high. E.g. strong attitude of abortion, can predict wont get own. - Knowledge and experience: Attitudes are more likely to be strongly held and predictive of behaviour when the consumer is knowledgeable about or experience with the object of the attitude. E.g. When buying a computer an experts behaviour can be more predicted that he will act on detailed information put forward. - Analysis of reasons: Research indicates that asking consumers to analyse their reasons for brand preference increased the link between translating the actual attitude to behaviour. - Accessibility of attitudes: Attitudes are more strongly related to behaviour when they are accessible or top of mind. Conversely if an attitude cannot be easily remembered , it will have little effect on behaviour. Marketers should harness on utilising the memory retrieval of consumers ( via recirculation, elaboration, primacy and recency effect) to better predict behaviour. More likely to chose a product that they have positive and accessible attitudes about. - Attitude confidence: Confidence affects the attitude-behaviour relationship. The greater the confidence the consumer has because of extensive research, or because it comes from a credible source the more likely the attitudes will predict behaviour. Strongly held attitudes have more influence on consumers consideration, choice of brand and behaviour. -Specificity of attitudes: The more specific you are about the behaviour you want to predict, the more accurate the attitudes can formed. E.g. skydiving...more accurate outcomes if you ask about skydiving lessons than just sky diving in general. - Attitude-behaviour relationship over time: Time may diminish the link between attitude and behaviour. Marketers should reactivate consumer attitude and confidence through effecting marketing communications and message repetition - Emotional attachment: The more emotionally attached the consumer is to the brand the more predictive their behaviour is. They are more willing to a pay a price premium for a brand. - Situational factors: Intervening situational factors can prevent behaviour from being performed and can weaken the attitude-behaviour relationship. E.g. you have a strong attitude towards porches, but you might not but why because you cant afford it. Money tends to me a very strong situational factor that weakens the link between attitude and behaviour. - Normative factors: Normative means you base your decisions on the opinions of others. Normative factors can affect the attitude-behaviour relationship. For e.g.

you may like going to the ballet, but chose not to because your friends will make fun of you. Although your attitude is positive, you may not engage in that behaviour because of social pressure. Personality variable: Certain personality types are more likely to exhibit stronger attitude-behaviour relationships than others. People who are guided by their own thoughts and like to devote time into action will have a stronger attitude-behaviour link as elaboration to thoughts is high (low self- monitors). People who are guided by the views of others on other hand can try and change their behaviour to adapt to every unique situation (high self-monitor). E.g. a low self monitor will chose the same beer regardless of circumstance, a high self monitor will chose the beer that his friends might have, will depend on the situation.

6. When we talk of a countrys culture what do we mean? Why is it important for marketers to understand the role of culture in customer behaviour? If a marketing manager is looking to expand their market into another country what advice would you give them based on your understanding of culture? Culture is a complex concept that embodies everything that the influences the individuals thought, processes and behaviours. Such influences includes knowledge, beliefs, art, law, morals, custom,language, religion, values and attitudes. Six major aspects of cosnumer diversity that influence CB 1. Age 2. Gender 3. sexual orientation 4. regional influences 5.ethnic influences 6. religious influences

Age: Gen x (1965-1976; 35-46 delay marriage, high discretionary income) - More skeptical, do more research Gen y (1979 to 1994, 17-32 yr olds, millenniums) - technology Baby boomers (1946-1964, 47-65 yrs old) - Market anti-ageing products, comfortable clothes, taregt for cares, home, travel, consumer financial services Seniors 65+ - health insurance - retirement villages Gender Women: more likely to engage in detailed and thorough examination of the message (high MOTIVATION, ABILITY AND OPPORTUNITY) Men: more likey to be selective in processing information (Low MAO) Increase targeting to homosexuals Marketers needs to be mindful of: Individualism (western) v collectivism Horizontal v vertical orientation (equality vs. Hierarchy, Indian caste system) Masculine v Feminie (Masculine cultre aka America, feminine Denmark..concerned with social relationships) In Iceland females are very well respected. Ethnic groups: African Americans (more liberal in dress code, want to preserve cultural identity), Asian Americans (shop frequently, strong emphasisi on tradition, cooperation, family) Variables influencing Cross cultural strategies LANGUAGE DEMOGRAPHICS VALUES NON-VERBAL COMMUNICATION SEVEN FUNDAMENTAL QUESTIONS TO ASK: 1) Is it a homogenous culture 2) What needs will the product fill

3) Can enough afford the product 4)What values are relevant to this product 5) What are the distribution, political and legal structures? 6) how can the firm communicate about the product 7) what are the ethical implications Use Florentine as an example: We order in clear glasses for Asians

LANGUAGE: In low context culture, spoken language carries the emphasis of the communication i.e. what is said id what is meant (Aus, Netherlands) In a high context culture verbal communications tend not to carry a direct message ie. What is said may not be what is meant. Hidden cultural meaning needs to be considered, Examples Japan and Arabic nations. Religion: In 2007 China (which was the year of the pig) banned all ads related to pigs to create harmony even though islam made up only 2% of the pop. Values and Attitudes: Vary between Nations. E.g. In France workers take a holiday for the whole of August, In America they only take a couple of weeks off. Eductaion: The level and nature of education in each international market will vary. For example in countries with low literacy rates, advertises would avoid communications which depended upon written copy, and would favour radio advertising with an audio message or visual media such as billboard. Labelling of products will be an issue. Social organisations: India has an established caste system. Social mobility could be restricted where caste and class systems are in place. Whether or not there a strong trade unions will impact upon management of decisions if you employ local workers. Technology and Material culture: Technology highly important. Trevo Baylis launched the clockwork radio upon the African market. Since batteries were expensive in Africa and power supplies in rural area are no existen, the Clockwork radio innovation was a huge success. Law and Politics: The political ideology on which the society is based will impact on your decision to market there. For e.g. UK has a largely market-driven democratic society based on legislation and precedent, Whilst Iran has a political and legal system based upon teachings and principles in Islam and Sharia tradition. Aesthetics: Aesthetics relate to senses, and the appreciation of something including smell, taste and ambience. Aesthetics are extremely important In European nations Conclusion: The key to effective communication between countries is an understanding of each others culture, especially a working knowledge of how each society conveys meaning.

7. Consumers are often viewed as lazy and unmotivated. Using consumer behaviour terms discussed this semester, discuss this statement. Further, explain the peripheral-route to persuasion and discuss ways marketers can influence low-effort attitudes. The route to persuasion is a theory of information processing by consumers whenthey are exposed to an advertisement. According to this theory, highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route) while uninvolved consumers can be attracted through peripheral advertising cuse such as the model or setting (the peripheral route) When customers are either unwilling or unable to exert a lot of effort to processing the central idea behind a marketing communication we characterise this as a LOW EFFORT SITUATION Peripheral cues: Easily processed aspects of a message, such as music, an attractive source or picture or humour TECHNIQUES TO EMPLOY Simple inferences: music, picture, humour, attractive girl Should focus on utilising Heuristics (simple rules of thumb), Frequency heuristic (belief based on the number of supporting arguments or reputation, should focus on one -sided ads), Truth effect (believe it because its been repeated a number of times) Should keep ads consistent and repetitive. The communication source -credibility (statements from experts can be trusted, products endorsed by an expert must be good) - The Message itself can influence attitudes: Category-and-schema-consistent information (e.g. product attributes) e.g. brand name healthy choice must be good for me, the green can makes the tuna look fresh - Simple message (keeping message simple) - Involving messages (self referencing, in the ads make it more personal use words like YOU, and ask rhetorical questions, can also use visuals of common consumer situations) - Message context/repetition (Incidental learning that occurs from repetition rather than conscious processing) Got milk? milk moustache ad campaign repetitive -Can employ Mystery AD: An Ad which the bran is not identified until the end of the message - Classical conditioning (Ivan Pavlov dogs salivate at the sound of a belly). Producing a response to a stimulus by repeatedly pairing it with another stimulus that automatically produces this response. Fear Appeals- messages that stress negative consequences. A milder fear appeal will likely produce a greater persuausion. Show the negative, but then ways to beat it. - A good mood will make them more likely to process persuasive information via peripheral route - People with HIGH involvement were susceptible to the primacy effect - People with LOW involvement were susceptible to the recency effect Sources of peripheral cues 1) The communicator: Like people who are like ourselves (e.g. study conducted where an African American dentist promoted proper dental care, the next day assessed the cleanliness of African American students and massive improvement), speak confidently 2) The message: positive emotions may act as a peripheral cue (e.g. study where yale students were more convinced by an ad when they were allowed to eat peanuts and drink soda while reading them), persuasive messages more convincing when listening to pleasant music. People associate their positive emotions with the message and accept the message without realising. Fear can also be effective but have to be careful. Study where a doctor sent a letter to people who smoked. 8% of people quit when message was positively framed (quite now live longer), 30% of patients quite when they received a negatively framed message (if you dontquit you will

die sooner) 3) How is the message communicated: personally appeals are more effective, passive vs active appeals 4) The audience: when the audience is forewarned about being the object of persuasion, they will pay careful attention and try and generate counter arguments. Use forewarning when you know the audience is going to agree with you. Distracting is also helpful. Distracting people just long enough will prevent them from generating counter arguments. Political ads use vivid images to distract our attention so that we do not scrutinise the message too strongly. Coummuincation source: physical attractiveness, likeability, celebrity Message: Pleasant pictures, music, humour, sex, emotional content, context Transformation advertising: Ads that try to increase emotional involvement with the product or service Dramas: Ads with characters, a plot, story