consumer psychology: exposure, perception, and … psychology: exposure, perception, and memory...

Consumer Psychology: Exposure, Perception, and MemoryExposure

Professor Jonah Berger

Exposure

• Did the name “Monica” become more or less popular?

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Exposure, Perception, and Memory

Exposure

• Without it there is no opportunity to process

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Exposure

• Without it there is no opportunity to process

• One big impact of exposure is that it generates awareness• Main goal of Advertising & Marketing• If you don’t know a product or service exists you can’t buy it• Sales of Reese’s Pieces jumped after they were featured in E.T.

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Negative Exposure

• “Any publicity is good publicity”

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Negative Exposure

• McDonald’s Rumor – That they used worm meat in its hamburgers, sales decreased by over 25%

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Negative Exposure


• Michael Jackson’s bizarre behavior and brushes with the law destroyed his career.

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Negative Exposure


• Michael Jackson’s bizarre behavior and brushes with the law destroyed his career.

• Viacom Inc. chairman Sumner Redstone estimated that negative publicity cost Mission Impossible 3 over $100 million in ticket sales

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Negative Exposure

• A wine described “as redolent of stinky socks,”

• sales increase by 5%

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Negative Exposure

• A wine described “as redolent of stinky socks,”

• sales increase by 5%

• Borat made relentless fun of the country of Kazakhstan, Hotels.comreported a “300 percent increase in requests for information about the country” after the film was released

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Book Reviews

• Study how book reviews in the New York Times affect book sales (Almost 240 books)

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Book Reviews


• Some positive reviews – “There is a strong and distinctive sensibility at work here, and a talent for reaching to the essence of experience through scenes of fully imagined physical description.”

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Book Reviews



• Some negative reviews - “The characters do not have personalities so much as particular niches in the stratosphere” and “He gets by on attitude, not such a great strategy if the reader can’t figure out what that attitude is.”

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Book Reviews



• Some negative reviews - “The characters do not have personalities so much as particular niches in the stratosphere” and “He gets by on attitude, not such a great strategy if the reader can’t figure out what that attitude is.”

• Then we looked to see how the review impacted sales. How the book was doing before the review vs. after.

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Book Reviews

• Positive reviews increased sales by over 30%

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Book Reviews

• Positive reviews increased sales by over 30%• Negative reviews decreased sales. Sometimes.

• John Grisham and Stephen King, negative reviews hurt sales by 15%• But for others, the negative reviews increased sales. By 45%

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Book Reviews



• Depended on awareness. Whether people knew about it already

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Book Reviews



• Depended on awareness. Whether people knew about it already• For well-know authors

• Positive reviews increased sales • Negative reviews decreased sales

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Book Reviews

• Two groups

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Book Reviews

• Two groups

• Some gave their interest right after reading a review

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Book Reviews

• Two groups

• Some gave their interest right after reading a review

• Other’s gave their interest after some time had past

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Book Reviews

• Directly after negative publicity -purchase intent decreased.

• People remembered they read a negative review and it decreased their interest in buying the book

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Book Reviews



• After time passed- negative publicity increased sales.

• Negative publicity increased their awareness so they were more likely to buy

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Book Reviews



• After time passed- negative publicity increased sales.

• Negative publicity increased their awareness so they were more likely to buy

• If you’re not aware of something, you can’t do it

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Mirror Exposure

• The more you see something, the more you like it

• Fertile chicken egg test• Tones of two different frequencies were played to different groups of

chicks while they were still unhatched. Once hatched, each tone was played to both groups of chicks. Each set of chicks consistently chose the tone prenatally played to it

• Mirrors exposure means merely being exposed to something, means we like it more

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Applying Exposure

• If you want someone to purchase something or engage in a behavior, they have to be aware of it

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Applying Exposure


• Exposure is a key part of driving choice

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Applying Exposure



• Even negative attention can be good if it raises awareness

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Applying Exposure



• Even negative attention can be good if it raises awareness

• Want someone to like something? Show it to them a few times

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Consumer Psychology: Exposure, Perception, and MemoryAttention


Do We Pay Attention to Everything We’re Exposed to?

• Paying attention is HARD

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• Count how many times the white t-shirt team passes the basketball

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• Lots of stimuli in the environment, can’t possibly attend to them all. Focus on one thing affects whether we see another

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• Lots of stimuli in the environment, can’t possibly attend to them all. Focus on one thing affects whether we see another

• Color changing card trick (link)

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https://www.youtube.com/watch?v=v3iPrBrGSJM&feature=iv&src_vid=voAntzB7EwE&annotation_id=annotation_262395

Attention

• Limited – you can’t pay attention to everything

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Attention


• Capable of being divided – some of your attention is focused on something else

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Attention



• Selective

• Cocktail party effect

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Attention



• Selective

• Cocktail party effect

• Using names are a great way to increase compliance

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Consumer Psychology: Exposure, Perception, and MemoryPerception


Perception

• Subtle stimuli in our environment can impact how we interrupt things

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Perception

• Had people taste sips of wine but they manipulated whether people thought it cost $5 or $45

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Perception


• In fact, they were the same wine

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Perception



• In addition, they did the study while participants were in an fMRI scanner

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Perception



• In addition, they did the study while participants were in an fMRI scanner

• Part of the brain that experiences pleasure becomes more active when the drinker thinks he or she is enjoying the more expensive vintage

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Placebo Effect

• Placebo happens when someone takes a medication that he or she perceives will help, although it actually has no proven therapeutic effect for his or her particular condition.

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What About Price?

• Researchers gave light electric shock to participants' wrists to measure their subjective rating of pain

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What About Price?


• Everyone received a placebo. The pill didn’t actually work

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What About Price?



• Half the participants were given a brochure describing the pill as newly-approved pain-killer which cost $2.50 per dose

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What About Price?




• Half were given a brochure describing it as marked down to 10 cents, without saying why.

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What About Price?





• In the full-price group, 85 percent of subjects experienced a reduction in pain after taking the placebo. In the low-price group, 61 percent said the pain was less.

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What About Price?





• In the full-price group, 85 percent of subjects experienced a reduction in pain after taking the placebo. In the low-price group, 61 percent said the pain was less.

• Interesting implication: Suggests people get what they pay for 51


Branding

• Branding has a similar effect

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Branding

• Branding has a similar effect• Researchers had people taste a number of beers. Some people tasted

with the brand label on, others without.•

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Branding


with the brand label on, others without.• Without the label (brand) people could not tell the difference in taste (note

that these are not novices, they drink 3+ times a week)

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Branding




• When labeled, however, people rate their preferred brand higher

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Branding




• When labeled, however, people rate their preferred brand higher• Particularly surprising given these weren’t novices but beer experts. You

would think they know what they like.•

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Branding




• When labeled, however, people rate their preferred brand higher• Particularly surprising given these weren’t novices but beer experts. You

would think they know what they like.• What types of brands might want to encourage taste tests?

• Brands that are good but people don’t know them• Brands that are cheaper but good

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Sounds Also Convey Meaning

• Tictactic vs. Evelle

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• Which face cream would you prefer?

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• Which brand of tools would you prefer?

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• New line of cars: Brimley or Bromley

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• New line of cars: Brimley or Bromley

• Bromley rated higher than Brimley on perceived legroom, trunk space, and engine power

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Naming the BlackBerry

• Strawberry was rejected because “Straw” is a slow syllabus

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• B – associated with reliability

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• Short e – evokes speed

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• Short e – evokes speed

• Berry – conveys small

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Application

• Pricing a product? The price will suggest quality

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Application


• Picking a brand name? Pick sounds that convey the meaning you want

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Application


• Picking a brand name? Pick sounds that convey the meaning you want

• Any information you give people can shape judgement and perception

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Consumer Psychology: Exposure, Perception, and MemoryMemory


Memory

• Associative network model of memory

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Memory

• These links get formed through repeated association.• “It’s raining cats and dogs”• “Movies and popcorn”

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Memory


• Marketing communications do the same thing• Create desired links in memory• Brand equity

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Memory


• Marketing communications do the same thing• Create desired links in memory• Brand equity

• What comes to mind when you think of Porsche?• Fast• Stylish• European

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Links in Memory

• Think about the words and concepts that comes to mind when you think of this retailer.

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Links in Memory


• Walmart- Functional value, low price, basic utilitarian

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Links in Memory


• Walmart- Functional value, low price, basic utilitarian• TARGET- Options, some sophistication, value plus

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Links in Memory



• Both are relatively cheap but have different associations

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Links in Memory



• Both are relatively cheap but have different associations• Didn’t happen by accident. Target has spent a lot of time and effort to

shift perceptions. Worked with designers and cleaned up stores

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Links in Memory



• Both are relatively cheap but have different associations• Didn’t happen by accident. Target has spent a lot of time and effort to

shift perceptions. Worked with designers and cleaned up stores

• These links determine consideration set. Which retailer we consider when we have a particular goal in mind

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Links in Memory

• Happens also with political parties• Democrat – liberal, socially progressive, support social justice, women’s

right to choose, environment, minimum wage• Republican – conservative, free market, pro-defense, pro-life, oppose

same sex marriage

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Links in Memory



same sex marriage

• Someone tells you they are one or the other, that shapes how you see them

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Links in Memory



same sex marriage

• Someone tells you they are one or the other, that shapes how you see them

• Candidate tells you they are one or the other, that shapes whether you support them

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Links in Memory

• Candidate tells you they are one or the other, that shapes whether you support them

• Associations change how we perceive things

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Challenge When Introducing New Products

• McDonald’s had this issue when they introduces the McLean Deluxe

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• McDonald’s had this issue when they introduces the McLean Deluxe

• McLean Deluxe mixed too many ideas that didn’t fit together

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• Hyundai Equus - $65,000• People expect Hyundai to be somewhat inexpensive.

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• Toyota• Has good association and heritage• Can also be baggage

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• Created a sub-brand- Lexus / Scion

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• Created a sub-brand- Lexus / Scion• Similarly hard for the Republican party

• Wanted to reinvent themselves as fiscally conservative but more socially liberal.

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Culture (and Subcultures) Shape Associations

What is Volkswagen associated with in China?

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• Semantic network of associations has interesting implications for new products

• Say you’re developing a new product. Is it better to use existing links or generate new ones?

• New cleaning product. Similar to a mop in some ways

• One name is Mr. mop. What are the benefits? What are the downsides?

• Alternate name, and one that was chosen, was Swiffer. Don’t know what it does, but sounds fast. Associations can help but also hinder.

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Implications

• Associations have important implication for behavior.• If you’re introducing a new product or idea, has implications for whether to

assimilate or differentiate.

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Consumer Psychology: Exposure, Perception, and MemoryRetrieval


Retrieval Cues

• Internal• A thought. Today is 9/21. I must start planning for Halloween

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Retrieval Cues


• External• Web banner, Vending machine, ads

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Retrieval Cues


• External• Web banner, Vending machine, ads• Not only company generated

• Cues in the environment• “Weekends are made for Michelob”

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Retrieval

• What improves likelihood of retrieval?

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Retrieval

• What improves likelihood of retrieval?• Primacy – or the first thing on a list

• More likely to remember

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Retrieval



• Recent activation – want to get someone to remember something? Tell it to them right before you want them to do it

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Retrieval



• Recent activation – want to get someone to remember something? Tell it to them right before you want them to do it

• Repeated exposure – The more times you tell someone, the more likely they are to remember

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Biases in Retrieval

• Retrieval is a fallible process

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Biases in Retrieval


• Biased but predictable

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Biases in Retrieval



• Memories evolve

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Biases in Retrieval



• Memories evolve

• Sleeper effect

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Biases in Retrieval



• Memories evolve

• Sleeper effect

• Semantic memory (what you heard) separated from episodic memory (where you heard it).

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Biases in Retrieval

• We don’t always remember where we heard something as well as what we heard

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“Subliminal” Perception/Advertising

• 1956 New Jersey movie theater

• Flashed “Drink Pepsi” and “ Eat popcorn” on the screen

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• Republicans (2000)

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• Republicans (2000)

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There Is Some Truth…

• Subtle stimuli in the environment can non-consciously influence perception and behaviors• Walk slower after reading elderly related words• Clean up more when the smell of cleanser is in the air

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But Cannot Make Us Do Things We Would Not Otherwise Do…

• Flashing Drink Coke will not lead people to get up and run to the concession stand…

• But, it could make people who are going anyway buy Coke over Pepsi…

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Summary

• Exposure encourages awareness and liking

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Summary


• We don’t pay attention to everything

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Summary



• Price, brand name, and other factors influence how information is perceived.

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Summary




• Knowledge structure (associations) affects comprehension and memory

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Summary




• Knowledge structure (associations) affects comprehension and memory

• Cues can be used to help encourage retrieval

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Takeaway Of The Day

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consumer psychology: exposure, perception, and … psychology: exposure, perception, and memory...

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