With regard to perceived quality, you have to know what perceived quality means, how it differs from other notions of quality, and how consumers form quality judgments. Specifically, you have to be able to explain the difference between intrinsic and extrinsic cues and between search, experience, and credence properties. In addition, you have to know which cues influence quality perceptions. We discussed the difference between national brands and private labels as an application of the notion of extrinsic cues, and you have to understand the implications of this work (esp.. He experiment by Richardson et al. ). Another application of the concept of extrinsic cues was country-of-origin (COO) information, and you have to know how COO cues influence consumer behavior. Furthermore, you have to understand how consumer ethnocentrism impacts the influence of COO information on consumer behavior. With regard to price, you have to understand the different roles played by price, esp.. The way price relates to quality (both objective and perceived). We discussed four topics relevant to the psychology of pricing.

First, you have to be able to discuss what we know about consumers’ price awareness and price consciousness. Second, you eave to know about the value function in prospect theory and the implications of prospect theory for pricing (discounts vs.. Premiums, endowment effect, etc. ). For example, I could ask you whether a company should bundle or unbundled several different gains and to Justify your answer using prospect theory. Third, you have to know about the importance of reference prices in price perception. Finally, you have to know the material about framing price differences.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

With regard to value, you have to be familiar with the different meanings of value and how value relates to purchase behavior. In-class practice questions: Normally, taste in a food product is a(n) cue or property. However, when a store gives away free samples, taste becomes a(n) cue or property. [fill in with search, experience, or credence property, or intrinsic/extrinsic cue] A consumer prefers Italian brands of canned tomatoes to domestic brands because she feels that tomatoes ripened “Under the Tuscan Sun” taste better.

This example illustrates the process by which COO cues can influence consumer behavior. – alert Dimensional – cognitive mediation – affect transfer When a person strongly agree with the following item, inform friends will think you are heap if you consistently buy the lowest priced version of a product,” s/he is likely to see price in which role? If you were to market to this kind of consumer, how should you set your prices? Example multiple-choice questions: 3. Search goods are a. Goods whose quality can be evaluated before purchase. B. Odds for which consumers can get good deals when they search around. C. Goods whose quality can only be evaluated after purchase. D. Also called convenience goods. 4. Which of the following refers to the positive role of price? A. Price consciousness. B. Sale proneness. C. Price mavens. . Prestige sensitivity. Consumer response to sales promotion programs First, you have to be able to define sales promotions and know what types of sales promotions there are. You should also be familiar with the most common forms of consumer and retailer promotions.

Second, you should be able to discuss the different benefits offered by sales promotions and explain the benefit congruency model of sales promotions. This is clearly discussed in the Chanson et al. Article. Third, you have to know how instrumental conditioning (C) works and how it differs from classical conditioning. You also have to understand what types of consequences can be used in ICC to achieve certain purposes, and what schedules of reinforcement are available. Finally, you should be able to explain the foot-in-the- door and door-in-the-face influences strategies. . Utilitarian benefits of sales promotions include the following: a. Value expression, exploration, and savings. B. Convenience, savings, and quality. C. Convenience, exploration, and savings. A convenience, exploration, Ana entertainment. Consumer response to communication programs You have to know what is meant by an attitude and what components of an attitude re usually distinguished. In addition, you have to know how attitudes can be measured. The elaboration likelihood model of persuasion is the most comprehensive model of attitude change.

You have to know the two routes to persuasion distinguished in the model, when persuasion occurs via which route, and how the two routes differ in terms of persuasion effects. Be sure you understand the experiment on involvement and persuasion by Petty et al. With regard to the central route to persuasion, you have to be able to describe Fishnet’s EVE model of attitude formation and what attitude change strategies can be rived from the model. You also have to know the cognitive response model of persuasion and how marketers can use the model to understand the persuasion process.

With regard to the peripheral route, you have to be able to explain classical conditioning and understand under what conditions classical conditioning is expected to be successful. You also have to know how classical conditioning can be used in an advertising setting. You also have to understand how consumer behavior is explained by the Theory of Reasoned Action. For example, you should know how the theory can be used to redirect consumer behavior, as discussed in the in-class exercise on coupon usage. You should also know when the theory is expected to explain consumer behavior well.

In a commercial for Lee Jeans, women are shown struggling to squeeze into their jeans. At the very end one woman easily slips into her pair of Lee Jeans. The commercial ends with the tagging, “It’s not a better body you need, but better Jeans. ” 1) Interpret this ad from the perspective of the three attitude change strategies suggested by the EVE model of attitudes. 2) Based on the ELM, under what conditions would this ad be effective? . When classical conditioning is successful, a previously neutral stimulus comes to elicit a response similar to that elicited by: a. Connectional stimulus. B. An unconditioned stimulus. C. A classical stimulus. D. A respondent stimulus. E. A conditioned response. 7. Salient beliefs are critical to researchers in understanding consumer attitudes because a. Active memory has extensive processing capacity. B. Only a few activated beliefs cause an attitude to form. C. Consumers use many beliefs to shape an attitude. D. These beliefs are generalize to most consumers. 8. The use of simulated social conversations about desirable group behavior in advertising is probably directed at behavioral intention weighted toward a.

Ay. B. Act. C. MAC. D. SIN. 9. The pairing oaf neutral stimulus with another stimulus which already elicits a specific unconditioned response is called a. Operant conditioning. B. Classical conditioning. C. Instrumental conditioning. D. Vicarious learning. 10. Which of the following attitude change strategies follow(s) from the EVE model? A. Add a new positive belief. B. Increase the evaluation of a strongly held positive belief. C. Increase the strength of an existing positive belief. D. All of the above.