AMDT 307 1nd Edition Exam # 1 Study Guide Lectures: 1 - 3 Lecture 1 (January 15) Why is Consumer Behavior Important to the Fields of Fashion and Design Critical Consumer Behavior What do consumers want and how to serve them: - Emerging consumer trends - how to better serve consumer needs - the effects of cultural attitudes on buying habits - consumer centric merchandising - techniques to improve shopper satisfaction Fashion and Design Purchases are Unique Lifestyle Reflections Identity, Taste, Values, Aspirations Zeitgeist Fashion and design tune into the spirit of the times to fee the pulse of contemporary culture, must consider broadly Develop awareness and sensitivity are essential to being current and competitive Marketing to Gain Competitive Advantage Promotion, Communication, Product development, Global marketing, Direct marketing, traditional marketing Creating Buzz College students are a tough audience Social media is used to appeal Word of mouth marketing is affective for social media - Guerilla - Ambush - Viral (primary process) Identifying, Reaching Target Market Focusing on social media and mobile marketing Trend- expression of how selections are made, voting with money - upscale branding of luxury markets for few but influence many - basic becomes small indulgencesUpscale Branding play to strength, leverage design, limit distribution channels, green label Standing Out From the Rest Product differentiation, brand vs brand image vs brand loyalty vs brand equity, contrast between innovation and tradition Lecture 2 (January 20) Consumer Behavior, Marketing, and Fashion: A Working Relationship Reason why plus size is offered by a minority of brands Most brands don't want to be associated with it Consumer Trends Watched in 2013 Showrooming, Multi-screen, Hyper-converting, Mobile, Personal proximity Understanding Marketplace conditions: Buyers Market - More sellers than buyers - supply high - demand low - low prices Sellers Market - more buyers than sellers - supply low - demand high - high prices Value Relative to Cost Value increases likelihood of purchase due to tangible/intangible attributes - when value increases perceived cost decreases - when value decreases perceived cost increases Buyers Preference Higher demand for custimization shift from mass to niche markets - why? internet - high demand for alternatives - team apparel Understanding Target Market What do potential customers value?- primary data - secondary data Strategic Marketing Plan - specifc target market - preference of target - determine how to connect and keep customers - adapt to evolving marketplace Fashion Market= current fashion+marketing plan Approaching the Marketplace Need strategy to deal with competitors Organize marketing activities: STP formula - S= Segment - T= Target - P= Position Segment - Divide market into clusters of characteristics wants and needs - focus on best market prospects with psychographics Qualifying Target Market How to know if you? - Actual identification of segment - can it generate enough revenue or interest? - can it gauge how much the market can grow/change? - determine if it is cost effective Position Product/Service and Company Tools - product - place - promotion - price - people - procedures Satisfying Customer: Marketing Concept Focuses on knowing customer to satisfy needs better than competitors the more we understand the more we can address customer needs Creates: - repeat purchasers (60 percent of sales) - positive word of mouthLecture 3 (January 22) How Consumers Perceive, Learn and Remember Modernizing the Marketing Mix Consumer centered marketing replaces 4 P with 4 C - cost, communication, convenience, consumer needs/wants Many viewpoints that consumers are tough to sell dominating the market no longer works Jiwa New Marketing mix Purpose, People, Personal, Perception, Overall People React to Stimulus Vision, touch, smell, hearing, taste Virtual Seeing, Hearing, Tasting Subliminal Perception How Marketers Use Learning Process in Selling Homes Strategic partnerships to optimize how people learn into sales Vision most important for fashion color, styling, size feelings associated with colors Touch Tactile sensation for wearer Smell we can distinguish 10,000 unique scents scent is automatic carries an emotional response Hearing automatic positive or negative response Hedonic Consumption responses to various stimuli makes up part of our emotional relationship productsHow do we perceive? Perception is the process of interpreting our surrounding through our senses - exposure - attention - interpretation Attention absolute threshold- recognition just noticeable difference- distinguish between two stimuli weber's law- a second stimulus must be stronger than the first to be noticed subliminal perception Paying Attention When stimulus catches our attention we choose to focus on it Personal Characteristics - awareness via selection attention - expectations - preferences stimulus characteristics - type of item - color, size, contrast - position, placement - novelty How we process organize stimuli into meaningful whole gestalt psychologists: whole greater than sum of parts, meaning assigned to structure schema is set of beliefs assigned to stimuli Perceptual Organization of schema Similarity, Visual Priority, Closure Semiotics The correspondence between signs, symbols, and their roles in how we assign meaning marketing message have three components - object - sign/symbol - interpretant How We Learn Behavioral learning- classical conditioning (pavlov) - instrumental conditioning- behave to earn praise Cognitive Learning - actively seek understanding - modeling - observation - action How we remember Sensory- automatic short term- limited time long term- stored info - collect large amount of encoded data - chunking - visualize sensory memory - elaborate rehearsal Storing, Retrieving Information retrieval- process to use info activation- speed of retrieval - branding How do we forget? - decay - interference -