STUDY GUIDE FOR TEST 2 THIS IS JUST A GUIDE MODULE 5 CHAPTER 5 pg 123 147 Brand Loyalty pg 135 Major objective of all brand marketers is to produce Brand Loyalty o Direct result of the habit of repurchasing reinforcement of continuous advertising Definition Consumer s conscious unconscious decision expressed through intention behavior to repurchase a brand continually Occurs because consumer PERCEIVES that the brand offers the right product features image quality or relationship at the right price Habit is the acquired behavior pattern that becomes nearly or completely involuntary is the natural extension of learning o Most consumer behavior is habitual because it is safe simple and essential Advertisers have three aims related to habits 1 BREAKING HABITS a Get consumers to unlearn an existing purchase habit try something new b Advertisers frequently offer incentives to lure customers away from old brands stores c Or may use comparative advertising to demonstrate their product s superiority d Example As Pets com discovered it is very difficult to get consumers to change their habits Even coupons discounts couldn t lure customers from their traditional pet products suppliers 2 ACQUIRING HABITS a Teach consumers to repurchase their brand or patronize their establishment b Example To get you started Columbia House advertises free CDs when you sign up tied to a contract to purchase more later on 3 REINFORCING HABITS a Remind current customers of the value of their original purchase encourage them to continue purchasing b Example Many magazines offer special renewal rates to their regular subscribers Hotels offer loyalty programs airlines award frequent flier miles for the same reason Developing brand loyalty is much more difficult today due to consumers increased sophistication the legions of habit breaking activities of competitive advertisers In quest for instant results they have shifted much of advertising budgets to SALES PROMOTIONS deals coupons price cuts Cognitive Dissonance pg 144 145 Key feature of post purchase evaluation Definition The theory that people try to justify their behavior by reducing the degree to which their impressions beliefs are consistent with one another Justify behavior by reducing dissonance inconsistency between their cognitions reality Research shows that to combat dissonance consumers are more likely to read ads for brands they ve already purchased than for new products competing brands Elaboration Likelihood Model pg 133 134 A theory of how persuasion occurs It proposes that the method of persuasion depends on the consumer s level of involvement with the product the message CENTRAL ROUTE TO PERSUASION o Consumer s level of involvement HIGH Central Route is more likely o Consumers are motivated to pay attention to product related information such as product attributes benefits o Because of their high involvement they tend to learn cognitively comprehend the ad delivered information at deeper more elaborate levels PERIPHERAL ROUTE TO PERSUASION o Consumer s level of involvement LOW with product message o Little reason to pay attention to or comprehend the central message of the ad o However these consumers might attend to some peripheral aspects of an ad for its entertainment value o Consistent with stimulus response theory consumers may respond to the message at a later date when a purchase occasion arises Background Information o So what s the bottom line for advertising is it the gift or the wrapping that counts The research helps us understand how to design the advertising message so that it has the most influence o If we advertise to consumers who are highly involved in the purchase decisionmaking process then those consumers will primarily use their thinking cognitive learning to drive the decision Therefore strong rational arguments the gift will be most persuasive for them o On the other hand consumers who are less involved will be more influenced by the wrapping the images sounds and feelings they see or remember about the product behavioral learning For them it may be more important that Tiger Woods endorsed the car than that it gets better gas mileage than another model o The elaboration likelihood model summarizes this theory Under conditions of HIGH INVOLVEMENT the consumer will be more likely to process the content of the message form an attitude about it and make a purchase decision Under LOW INVOLVEMENT the consumer will respond to the style of the message an attractive package a popular spokesperson rather than its substance Evoked Set pg 143 Selection alternatives Particular group of alternative goods services a consumer considers when making a buying decision Learning Theories Learning Leads to Attitudes Interest o Attitudes are acquired mental positions regarding some idea or object the positive or negative evaluations feelings or action tendencies that we learn and cling to To advertisers gaining positive consumer attitudes is critical to success o Brand interest is an individual s openness or curiosity about a brand For mature brands in categories with familiar frequently purchased products brand interest is even more critical for motivating action Learning Leads to Habits Brand Loyalty o Brand loyalty is the consumer s conscious or unconscious decision to repurchase a brand continually It occurs because the consumer perceives that the brand offers the right product features o Habit is the acquired behavior pattern that becomes nearly or completely involuntary is the natural extension of learning Most consumer behavior is habitual because it is safe simple and essential Learning Persuasion o Learning is a relatively permanent change in behavior caused by experience o The learner need not have the experience directly we can also learn by observing events that affect others o We learn even when we don t try Consumers recognize many brand names and they can hum many product jingles for example even for products they themselves do not use We call this casual unintentional acquisition of knowledge incidental learning o Theories of learning range from those that focus on simple stimulus response connections behavioral theories to perspectives that regard consumers as solvers of complex problems who learn abstract rules and concepts as they observe others cognitive theories o Basic learning principles are at the heart of many advertising efforts Behavioral Learning Theories o Assume that learning takes place as the result of