MKTG 360 1nd Edition Lecture 16 Outline of Last Lecture 1. Cause related marketing2. History of cause related marketing3. Corporate and marketing objectives4. Cause related marketing is unique5. Is cause related marketing all good?6. When is cause related marketing successful?Outline of Current Lecture 1. Basic concepts2. Principle 1- Reciprocation3. Principle 2- Commitment and consistency4. Principle 3- Social proof5. Principle 4- Liking6. Principle 5- Authority7. Principle 6- ScarcityCurrent Lecture1. Basic conceptsa. Overriding Principlei. “Click-Whirr” or Automatic Respondingii. We often rely on heuristics (rules of thumb) and respond “mindlessly”These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.iii. Some argue mindlessness is the key to successful social influence techniquesb. Some Examplesi. Mother Turkeysii. Jewelry at Twice the Price!iii. Fixed Action Patterns at Copy Machinec. Capitalizing on Genuine Principlesi. We should listen to authorities, reciprocation is reasonable ii. Problems if used inappropriately d. Social Influence and Ego Depletioni. We are especially likely to fall back on heuristics, automatic processes, or habitual patterns when we are ego depleted à2. Principle 1- Reciprocationa. Reciprocationi. You scratched my back, I’ll scratch yoursii. Get your free samples! iii. Get a free Trip to Reno!iv. Door-in-the-Face Technique1. Ask big, get turned down, make concession, then ask smallv. That’s Not All Technique1. No chance to turn down initial request3. Principle 2- Commitment and Consistencya. Commitment & Consistencyi. Cognitive Dissonance – Leon Festinger1. We like our attitudes and behavior to be consistent2. When they are inconsistent, we feel tension3. Tension is uncomfortable, and we wish to reduce it4. We can change behavior or attitude to align the twoii. Foot-in-Door Technique1. Ask for a small act of compliance, then build on itiii. Low-Ball Technique1. Make a low offer, then increase it once people are ‘hooked’4. Principle 3- social Proofa. Social Proofi. We tend to follow the crowdii. Laugh Tracksiii. Best Seller Listsb. Descriptive vs. Injunctive Normsi. Descriptive Norms: What the majority of others is doingii. Injunctive Norms: What people “should” do5. Principle 4- Likinga. We are more likely to comply with requests from those we like. b. Liking often based on…i. Attractivenessii. Familiarityiii. Similarityiv. Ingratiation6. Principle 5- Authoritya. Authorityi. We are more likely to comply with requests from, and follow the recommendations of, authorities7. Principle 6- Scarcitya. Scarcityi. We believe that things that are scare are more valuableii. More likely to pay more for scarce resourcesiii. Works partly on the concept of “psychological reactance” – when we think we may not be able to get a limited resource, we feel our freedom has been restricted, and we react against that possibilityb. Examplesi. Overlapping appointments for selling carsii. Excuse me while I take this calliii. One day only at the Bon Marche8. Principle 7- Scarcitya. Manufacturers/Artists often use this – there were only X (number) made, and when they are gone, they are gone.b. For extra measure, they may even autograph it… signaling the limited edition andthe cue of future worth