Samenvatting Consumer Behaviour

Samenvatting Consumer Behaviour 2019-2020

De cursusdienst van de faculteit Bedrijfswetenschappen en Economie

aan de Universiteit Antwerpen.

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1.

Introduction Consumer

behaviour

1.1

What is it CB about?

What? Repeated patterns, habits, the characteristics of the consumers you want to attract -> price sensitivity, -> lifestyle (values) -> demographics -> behavior trends

persuasion

The core is decision making -> trying to understand

DEF= the study of processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires.

Consumer characteristics= why do certain people choose for certain products?

Family size, occasion, someone is on a diet, there is a promotion, price, favorite brand, packaging motivational

Purpose-> culture, influencers group social

CB = interdisciplinary science, based on 4p’s Product, price, promotion, place

Consumer= user, actually a wider set of roles that a person can fulfill not only a rol as a buyer more than a customer

Shopper= buyer the person ho actual buys the product Example Old spice = deo for men girl suggestive likking for

icecream. 80% of their deo is bought by the wives instead of the men so this deo with a girl on it is not effective at all.

Buying roles consumer • Initiator: Initiates idea • Influencer: Influences

• Decider: Ultimate buying decision • Buyer: Actual purchase

• Payer: Pays • User: Consumes

• Gatekeeper: Controls acces

CB as subjective and situational Consumer influences

1.2

Why study

CB?

Selling >< Marketing (=Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.)

Customer value = consumer’s assessment of the overall capacity of offerings to satisfy needs and wants (Customer is always right because he or she decides whether she is going the spend her money or not. )

Utilitarian value: Helps to accomplish some task, functional need that you are trying to seek. Hedonic value: Immediate gratification, experience and emotions!

e.g. When you buy a car= functional: transportation however the hedonic value: explaines why people dream of ferraris and bently’s and porshes all the extra features for status and is part of the experience of driving.

= base, why market this product? Everything starts with the WHY question

BOTTOM LINE: to ensure that products/service meet consumer needs

BUT ALSO: improve marketing strategies to facilitate the creation of value by generating a better understanding of

Studying consumer behavior can make YOU a “better” consumer -> better as in the awareness of what the circumstances are.

Understanding CB is good business > basic marketing concepts rely on satisfying consumer needs  marketers can only satisfy needs to the extent that they understand the consumers  marketers have to understand the wants and needs of different consumer segments Carefully defining consumer segments and listening to consumers more important in the context of

 relationship marketing  database marketing

Market segmentation= delineating segments whose members are similar to one another in one or more characteristics and different from members of other segments, creating value for everyone is not possible so you have to choose but choosing is losing

1.3

how study

CB

Qualitative >< Quantitative

Qualitative Quantitative  Case analyses: In-depth interviews,

focus group interviews, observations, ...

 Numerical measurement & analyses

 Phenomenology: Interpretation of the lived experience (interviews, …)

 Statistical models  Ethnography: Analysing artifacts (e.g.,

trash, fridge, …)

 Tracking consumer purchases  Netnography: Online cultures

and communities  Surveys

 Researcher dependent! _{ Testing hypotheses}  Can be difficult to interpret

 Increasing focus on “Big data”

Experiments

Goal: to test the effect of carefully designed manipulations on consumer responses and to explain why certain effects occur

Random assignment of participants to conditions (groups) Manipulation = the factor that varies across conditions, e.g.:

 different versions of an advertisement  different types of product packaging  different styles of music playing in a store …while everything else is kept constant!

Effect = significant differences between groups (mean scale ratings)

Allows precision and control, testing causal relationships between the independent and dependent variable (i.e., why?)

But not very realistic (external validity)  e.g., lab vs. field studies

May be specific to a specific type of stimulus or context  e.g., holds for toothpaste, but not for cars

Example Experiment nescafé: 2 shopping lists

One had water diapers and nescafé -> people consider it as lazy

The second had water diapers and cofeebeans -> hard work to make the coffee so the woman was not lazy and took care about her husband

Experimental design (within subjects? Between subjects? Mixed?)

2x2 factorial design (look at interactions does one effect depend on other variables?)

Interactions= moderation (when the effect of one independent variable depends on the level of another)

Moderator: A variable that affects the direction and/or strength of the relation between an independent (factor) and a dependent variable.

Mediator: A variable that explains the effect (underlying process).

Could gender be a mediator? No you are a man or woman before the experiment.

Confounds: Other variables that may influence the dependent variable and could thus explain (some part of) the effect (can be controlled for).

Big data= big business => creates new issues (data protection, GDPR) Personalization= next big p in marketing

1.4

The changing consumer Trends in marketing

A. Demographic environment

 Booming world population

 Increasing migration & connectivity

 Global consumer culture: People are united by their common devotion to brand-name consumer goods, movie/rock stars, and service

 Globalization/glocalization  Aging population

 Marketing 4 generations: baby boomers, G Xers, GYers/ millennials, G Z  Changing households: 2 fathers, steph family (plus ouders),…

B. Socio-cultural environment

= Institutions and other forces that affect society’s basic values, perceptions, preferences and behaviours

 -One stop shopping: Macro, ikea  -Increased concern health  -sharing economy

 -Focus shifts from stuff to experiences (-> in-store experience) C. Digital transformation

Digital, social and mobile technologies have primed consumers to expect convenient, personalized interactions and fast, easy access to information

Increasing consumer expectations! Disruptive innovations!

5 characteristics of the new consumer 1) Thrives on community:

Urgent need to engage with the world Real + virtual (social media)

2) Energized by sharing:

Receive validation by showing off what they’re creating -> Content that makes them look smart, clever, thoughtful, or cutting-edge in front of their community

3) Trusted advisors as solution to being time-poor:

Turn to “trusted advisors” (friends, bloggers, community members, celebs) to help navigate online lives to map out an ecosystem that fulfils both their functional and emotional needs 4) Craves authenticity:

Emphasize authentic values and passions that can be rallied around and then provide that rallying platform

5) Seeks meaning:

Focus on developing emotional connection, give content that helps them discover themselves => Give them tools to help “make the world a better place”

2.

Decision

making

2.1

The consumer decision

process

Consumer decision process (vs Buyer decision process)

1.

Need recognition

2.

Search for information

3.

Pre-purchase evaluation of alternatives

4.

Purchase (= “first moment-of-truth” = shelf)

5.

Consumption (= “second moment-of-truth” =experience)

6.

Post-consumption evaluation

7.

Divestment

What Google discovered is that the "Zero Moment of Truth" between the stimulus and First Moment of Truth is where buyers are conducting important research. Buyers are using a higher average number of online sources in their research (10.4 in 2011 versus 5.27 in 2010) and are spending more time with these sources (17 percent of time in 2011 versus 9 percent in 2010). The term "First Moment of Truth" (commonly called FMOT) was coined by Procter & Gamble in 2005 to define the first interaction between a shopper and a product on a store's shelf. Today,

with increased search engine use - many brand interactions take place between a consumer and a brand before that consumer ever sees a product on a shelf. This phenomena is what Google calls "Zero Moment of Truth", or ZMOT. ZMOT refers to all the research consumers do online before making a purchase.

There are 4 moments of truth in marketing

Zero moment of truth = Prospect recognizes need and goes online to gather information for potential purchase.

First moment of truth = Prospect has a ‘A-ha moment’ when confronted with the product and related alternatives, often in real life.

Second moment of truth = Customer has bought and used your brand/product. The resulting experience (hopefully) supports your pre-purchase promise.

Third moment of truth = Customer becomes a true fan and gives back to your brand with content and social media engagement.

1. Need recognition

= Difference between current and desired situation. Internal stimuli: Drive (Hunger; Thirst)

Implication: Be aware of needs

Implication: Be aware of need inhibitors (F.ex. Alibaba came up with ‘Alipay’ online system to buy stuff without credit card. (a lot of chinese people didn’t have a creditcard and couldn’t buy stuff online))

! Needs can be stimulated F.ex. Ipad

Sources used during information search Internal search: Information from memory External search:



Personal sources (friends; family; …)



Commercial sources (advertising; salespeople; internet; displays; …)



Public sources (mass-media; consumer-rating organizations)



Personal experience (handling; examining; using the product) Factors influencing information search:



Complexity of decision



Strength of drive



Involvement, importance of decision



Ease of obtaining information



Value of information



Search satisfaction



Time constraints



Type of product

-

Utilitarian (usefull product) vs. Hedonic (gain pleasure/joy from the product) goods

-

Search (those with attributes that can be evaluated prior to purchase or consumption) vs. experience goods (those that can be accurately evaluated only after the product has been purchased and experienced.)

The buyer decision process

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision

‘Funnel metaphor’ (brand sets)

Choice criteria

It is important to understand these criteria.

F.ex. there are 1000’s of hotels; what are people looking for?!

-

Best price

-

Reviews - …

To choose you have 2 different models 1. Non-compensatory model of choice

- Conjunctive = Minimum requirements for all important attributes - Disjunctive = At least one attribute level acceptable

- Lexicographic model

Rank attributes in order of importance

Brand that scores best on most important attribute is chosen

If tie, then brand that scores best on second most important attribute is chosen - Elimination by aspects

Brands that score acceptable on most important attribute continue to round 2 Round 2: Acceptable brands on second most important attribute (etc.)

2. Compensatory model of choice

Weigh pros and cons of each brand and select best total option.

Strong performance on important attribute(s) can compensate for weak performance on others.

Behavior is determined by behavioral intentions. (People have the intention to do/not to do something). This is determined by 3 dimensions.

- Attitude

- Perceived social pressure (= subjective norm); What do you believe that others think you should do/believe AND how sensitive are you to this pressure (social sensitivity)? - Perceived behavioral control; How much control you have over certain behaviors (F.ex.

You want to quit smoking – attitude = positive; Social pressure = others think it’s a good idea BUT If you see smoking as an addiction as something you can’t help  you will not have the intention to quit.)

Brand attitude

Attitude is determined by



Choice criteria i (See above; categories)



Beliefs about brands boi (Brand image)



Relative importance of these criteria (“weights”/evaluation) ei



Awareness of alternative objects o

CHOOSE OPTION THAT MAXIMAZES OUTCOME

F.ex. Peugeot: 8*3 + 7*2 + 5*5 = 63

People don’t do this on paper but are meant to be doing this in their head. (Weigh the pro’s and con’s)

= Compensatory model of choice (A poor score on a certain criterium can be compensated by the other criteria.)

How can a brand improve its score? (F.ex. Toyota)

 add new criteria to the mix (preferably criteria where they would score better than the rest)  Consider weight of each criterium and try to let the consumer re-consider the weight. (try to get higher weight score on reliability.)

 Try to change the perception about their brand! They won’t have to ACTUALLY change their price for example; just the perception (!!) of it. (Even if they would change the price; this might not help to change people’s perceptions (if people are not aware; their perceptions are not changed) …)

- They could for example highlight the high re-sell value of the car. (this could change the score they get for their ‘price’ to a higher score)

- They could highlight the low-maintenance costs.

 Change perceptions about the competing brands. (ALWAYS consider how the competition would react) This is something a lot of comparing advertisings are doing.

So, if you want to change attitudes – 4 options



Change beliefs about self



Change beliefs about competitors



Change evaluations (weights)



Adding beliefs about new attributes

You could also try to (according to theory of planned behavior)



Influence the social norm



Influence perceived behavioral control

! Changing attitudes overall is also very difficult. People tend to stick to their attitudes. When you try to persuade people, you try to change their attitude for the better. Most marketeers send

messages/ads/.. to change people’s behavior into the positive direction.

If the incoming message is close enough to the original attitude; this will fall into their ‘lattitude of acceptance’ (they will likely accept the message)

BUT if the incoming message is too far away from the original attitude position, the message will fall into their ‘lattitude of rejection’ and people will likely not accept the message.

Social judgement theory

Assimilation = Consumers readily recognize stimulus as belonging to specific category (F.ex. Starbucks sells different flavors of coffee; around Christmas they introduce new

product/message: ‘pumpkin spice latte’; BUT people will consider this as consistent with what Starbucks is already doing. Because of assimilation; you might consider this as closer to your original attitude position (even if it might not be/than it actually is).

(F.ex. If starbucks launches a cycling jersey, they can refer to coffee with ‘look hot without

overheating’; BUT it doesn’t fit with what we know about the brand.

Categorization (= fitting the new product with the existing mental category/association we have with Starbucks, will not happen) – Contrast will happen if people perceive this

new message as even further away of their original attitude position.

Sometimes it happens that new stimuli are INCONGRUENT (they don’t fit with what we expect)  people prefer: ‘mildly incongruent stimuli’ (surprising; we didn’t

expect it BUT it can still be fitted into the category.)

The stimulus shares some, but not all characteristics to fit in the existing category.

(F.ex. Ice cream isn’t something you normally would link to Starbucks, but at the same time if it’s called ‘Mocha cookie crumble Frappuccino’ (something they might serve) – in that sense it fits within the category)

 So, you can make exceptions for the rule = Accommodation How

Marketing funnel – Hierarchy of effects

People first need to pay attention (need to know your brand exists and what it stands for), Then you try to build their interest (stress the benefits of using your product for example); Create desire and persuade people to take action. After people have bought it the fisrt time, you try and make them loyal.

Critiques on this traditional model:

1.

This model sees engagement as a linear process with distinct beginning (attention) and end (loyalty). People move in a certain hierarchy (so one is before the other)

2.

Moving people from stage to stage is be seen as the marketeers’ job, so it is done in a very one-way communication process (Communications are initiated and controlled by the brand) BUT that is not really how consumers make decisions these days.

More modern models see this ‘consumer decision making’ as a loop.

You start with ‘Initial consideration set’; The first phase is active evaluation (People gather information; shop around;

…)  this is not a linear process because brands can be put into the equation but also be put out. This can be a very long process. (F.ex. people who book a vacation with Centerparks, visit the website/show interest for an average of 8 times.

In the traditional funnel you could say they stay in the ‘interest phase’ for a long time, but as soon as they move away from your website (are they still interested?! They would have to come back ...) This doesn’t fit with the traditional ‘marketing funnel’. This loop-model gives the opportunity for brands to come into the consideration; leave from it and come back!

It also allows brands to come in right before the moment of purchase (skipping all the steps ahead) (F.ex. you go to supermarket; a certain brand is in promotion, so you decide to buy it even if you’ve never heard of it etc.)

After purchase you will evaluate the product = ‘Post-purchase experience’

Traditionally the bottom of the funnel is loyalty (almost a ‘automatic response’ as you got people to buy the product) BUT modern model: you have to gain people’s loyalty every time again. There might be certain triggers every time the person needs to replace the product,

so the consumer might reconsider whether or not they will buy the same product again (loyal) or consider other brands again and re-start the whole process.

They also mapped certain channels on this model You need other channels for different purposes (Loyalty vs consideration)

There are off course also other models which hold the same idea.

Eternity (infinite) sign is in this model (As a

marketeer you try to stimulate the loyalty loop BUT at any time in post-evaluation, people can decide to go back to reconsider other brands.)

Brands can come in anywhere in this loop.

The 4 aspects come back but no longer in a linear way.

3.

Consideration

4.

Awareness

5.

Purchase

This model underlines the importance of a dialogue (Vs. monologue – funnel model)

This dialogue can be driven be the brand but also by what others are doing by consuming the brand. Again; brands (and people) can come into this engine at any time (not necessarily starting from brands actions)

Brand dialogue behaviors =



Viewing brand-focuses videos



Liking a friend’s post about a brand



Posting a consumer review



Checking in at a store on a smartphone



Getting a brand tattoo



Participating in a brand-sponsored contest



Filling out a survey



Discussing a brand with a friend at a party



Downloading branded apps



Contacting customer support



…

With greater levels of engagement;

observing (F.ex. watching a brand video)

Participation (F.ex. participating in a contest)

Co-creation (F.ex. write their own

reviews/participate in the design of a product)

4. Purchase decision

The multi-compensatory model is a form of ‘complex buying behavior’ There are 4 typical

types of buying behavior. Involvement = importance of the product for someone.

Dissonance-reducing buying behavior -> people start to question whether they made the right decision, after they made the decision (and anticipate that this is going to happen). F.ex. Hotels – within a certain price range a lot of them will offer similar roomtypes/facilities/services/… -> you choose the hotel with the best food/pool/reviews/… (make decisions simpler to refirm your choice (important criterium))

Variety-seeking buying behavior -> people sometimes seek for variety (try different brands)/ There isn’t a big risk (low involvement)

F.ex. Candy bars

Habitual buying behavior -> People buy the same brand out of convenience (=easy) (doesn’t mean they have brand loyalty!! If the brand is out of stock, they will simply just buy another brand. Also, if another brand is in promotion, they will simply buy the other brand)

F.ex. Toiletpaper/tissues/…  All relative for time pressure

(F.ex. Typically for high involvement decisions you would choose ‘complex buying behavior’ but if your computer breaks down the day for the exam, you’re likely to follow other types of behavior.) Other form of buying behavior: Impulse buying. (85% of our decisions)



Pure impulse buying : no intention (candy at the register in the supermarket)



Planned : intention, but wait for the occasion F.ex. based on promotional discount

F.ex. Plan category, but not the brand (shopping list: milk; bread; eggs -> not a particular brand: sometimes we don’t write it because it is very clear and we are loyal to the same brand but for a lot of times we only decide in the store what brand we pick.)

5. Post-purchase behavior Importance of post-purchase behavior

“Analyzing what happens after a sale is as important as understanding what causes consumers to buy in the first place. In fact, because this is an analysis of actual rather than potential customers and purchase situations, enlightened marketers consider postpurchase behavior of primary importance in its impact on future sales. Analyzing both positive and negative postpurchase behavior is a very effective means through which goods and services can be improved, promotions better targeted, and strategies reshaped both to keep current customers and to attract new ones like them.”

Typically, consumers will experience ‘postpurchase dissonance’ after buying. Sometimes this can also be to ‘non-use’ (f.ex. if you buy a dress and never wear it (tag is still on) – marketeers want to avoid it: because product is not used AND consumers might feel guilty about having spent money on it and never using it. )

Mostly after purchase, we will use the product. We will evaluate it (some people might complain if it doesn’t live up to the expectations. – As a company you should ‘welcome’ complaints and see them as feedback from your customers. Because for everybody who complains, there are probably a lot of other customers who experience the same problem/are also not satisfied but don’t

Postpurchase dissonance = Cognitive dissonance = Buyer’s remorse

= After we bought something, we have doubts or anxiety about the wisdom of the purchase

-

Atractiveness of foregone alternatives

-

Chosen alternative may posses negative qualities

=> CHOOSING IS LOSING (the options I did not choose where also attractive)

This postpurchase dissonance happens (almost) always BUT it doesn’t always happen to the same extent More likely when



high individual tendency to experience anxiety



purchase is irrevocable (when you cannot return it)



decision is important to consumer



price is high



social visibility is high (other people can see what you have bought)



large number of alternatives (when you are losing out on a lot of other possibilities)



purchase decision is difficult



insufficient time to evaluate



discrepant information (when after your decision you get information that is inconsistent with what you knew before)



chosen alternative underperforms



perceptions of rejected alternatives become more positive Dissonance is very bad in a relationship. Luckily consumers have a tendency the spontaneously reduce it:



Search for affirming information (marketer’s communication!)



Distort information that they got



Minimalize importance of purchase



…

(F.ex. Smoker who minimalizes and even distorts information on the package) Post-purchase communication!



Re-affirm buyers



Follow-up call

 Telling them they have made the right choice and that you are there if they have any questions. Return policy; money-back guarantee (Zalando; Nordstrom) ‘VIP’;

2.2

Attitudes

Attitude = Relatively enduring overall evaluation of objects, products, services, issues, or people 3 dimensions

Affective part (e.g., “I like …”) Behaviour part (e.g., “I always buy …”) Cognitions (opinions, beliefs)

(e.g., “… keeps me connected”) Positive or negative

Traditional response hierarchies see these 3 dimensions of attitude construct as stages that are subsequent and have to be followed in hierarchy. BUT that is not always the case.

Attitudes are also latent constructs (- you don’t always see/observe them) What you can observe are

-

stimuli representing the attitude towards something

-

Evaluate responses (t advertisement) In this way you can deduce attitudes.

Foot, Cone & Belding matrix for consumer-product relations.

Response hierarchies typically consider affect; behavior and cognition as subsequent stages. This is not always the case:

FCB Matrix divides products in their degree of involvement and ‘think vs feel – dimension’ Think products are utilitarian (mainly bought for useful/functional reasons) Feel

The matrix is about consumer- product relations >> it is about PERCEPTIONS (f.ex. Liquor is low involvement; but for some it might be high involvement)

Products can also move from quadrants over time, f.ex. A refrigerator (normally ‘think’ product – keeps food fresh; can become a ‘feel’ product (f.ex. a SMEG fridge -does the design fit in my kitchen/…)

Measuring attitudes Explicit measures:



Multi-item Likert type scale (totally disagree -> totally agree)



Multi-item semantic differential: bipolar (2 opposites on the extreme end)



Beliefs and evaluations (ToRA, ToPB) (Multi-item scale: try to measure different dimensions)

The problem with ‘explicit measures’ is that people might not always ‘know’ their attitudes towards products. A lot of decisions we make are with system 1 (intuitive system). With this scale we ask people to put that in words – might be something very difficult for people.

At the same time, people might not want to give the true answer. (might try to please you) So: Implicit measures:

This idea is based on ‘associative network theory’ Mind is a network of different associations.

The stronger an association is between 2 constructs, the more accesible it is in memory. (something that is easier, should take less time)

So we base implicit measures on ‘response times’

(- guest lecture Hilmar Zech is also based on response times)

1.

Evaluative prime (E-prime) test

 If you are given a ‘cockroach’ people know immediately what they associate it with (negatively) but if you are given an extremist-right party, that doesn’t come as easily. (polls always underestimate how many people will vote for this party, because it might not always be socially acceptable for people to say that they are going to vote for this party.)

E-prime will show your stimulus on the one side and ask you to categorize words in a positive vs negative field.

Not difficult to categorize ‘ugly’ and ‘disgusting’ as negative. Delicious is a positive word, but when you see the cockroach, you don’t have a lot of positive words in mind.

So, it is a little more difficult; you have to make a small mental step to put it in the positive category  will take a little longer (microsecond)

2.

Implicit association test (IAT)

Tries to implicitly measure attitudes; in this test people are asked to clasify (here: faces) Here we see a discrimination test (racial bias)

- A lot of people will not be aware of their racist tendancies and if they are, they will likely not share this with researchers.

If you are a racist (against black people), it is more difficult to classify positive words as being ‘good’ (beacuse in this case it is associate with ‘black’) - ‘wonderful’

The same goes voor white/bad and negative words. – ‘nasty’ Halfway through the test, categories will be switched; If you are a racist, it then will be easier to connect words with these categories.

2.3

Elaboration and

persuasion

Elaboration likelihood model (see ..) – link to nudging

The model makes a difference between central processing and peripheral processing.

-

There are 2 ways people can be persuaded  Via a “central route” (pro’s and con’s vergelijken)

Thorough and active processing and analysis of central characteristics of attitude object (argument quality!)



Enduring attitude (change), difficult to change

 Via a “peripheral route” (you take shortcuts – 10 reasons why …; dentists say: …) Evaluation based on characteristics of the attitude object or the source that are only indirectly relevant. (= temporary attitude change)

Heuristic cues:



Number of arguments



Message source: Expertise



Message source: Attractiveness



Affect-as-information



…

 “HEURISTIC-SYSTEMATIC MODEL”

Two routes to persuasion:



Systematic route (cfr. central route)



Heuristic route (cfr. peripheral route) Both can be used at the same time and interact Difference between system 1 and 2 in our brain

System 1 (reptilian/automatic brain) – intuitive

Fast; Unconscious; Automatic; Everyday decisions; Error prone System 2 – rationality

Slow; Conscious; Effortful; Complex decisions; Reliable

Factors affecting route to persuasion Motivation

Ability



Involvement



Personal relevance



Personal responsibility



Need for Cognition



…



Distraction



Repetition



Prior knowledge



Message comprehensibility



… Involvement

= the personal relevance or importance of an issue or situation How important is the purchase/product?

How much purchasing risk is involved? How much do you overthink decision?

Examples:



Enduring Involvement — involvement with a particular issue or topic



Situational Involvement — based solely on special circumstances or

conditions

High involvement – central route Low involvement – peripheral route

1. Typically, music is a ‘low involvement’ cue; it doesn’t provide an argument for how ‘great’ a product is.

Following Elaboration Likelihood model, what would you expect for the high and low involvement group with respect to change in attitudes?

-

Music makes a big difference for low involvement

-

‘No music’ is better for high involvement (it can be distracting.)

2. A 2x2x2 Experimental design for razor ads

⁻ High versus low involvement (central // peripheral processing) ⁻ Famous versus non-famous endorsers

⁻ Strong versus weak arguments Strong arguments are likely to

persuade people in high involvement situations; endorsers (famous) are typically are peripheral cue.

 This has implications for persuasion

Using “10 reasons for …”; can be relevant under both low and high involvement.

-

If you use it under ‘high involvement’; people will actually consider the strength of the arguments. Adding more relevant arguments should change people’s attitude to a positive one.

-

If you use it under ‘low involvement’; just the fact that you provide 10 arguments, ‘sounds’ like a lot of good reasons.

2.4

Motivations

= inner reasons or driving forces behind human actions that drive consumers to address real needs  Needs? Maslow’s hierarchy of needs.

F.ex. cars ‘Lada’ = physiology

‘Volvo’ = Safety motivations ‘Seat’ = Love/belonging ‘Bentely’ = (status)/esteem ‘Mini’ = self-actualization

There are other classifications  McGuire’s Psychological motives

 Cognitive Preservation Motives



Need for Consistency



Need for Attribution



Need to Categorize



Need for Objectification

 Cognitive Growth Motives



Need for Autonomy



Need for Stimulation



Teleological Need



Utilitarian Need

 Affective Preservation Motives



Need for Tension Reduction



Need for Expression



Need for Ego Defense



Need for Reinforcement

 Affective Growth Motives



Need for Assertion



Need for Affiliation



Need for Identification



Need for Modeling

Shopping motivations

-

Functional (Convenience, quality, price, reliability, assortment,…) F.ex. Jean-pierre; Aldi; …

-

Expierencal (discovering new products, atmosphere; demonstrations, animations) F.ex. Disney store; historic bakery, …

-

Social (meeting people, interaction with staff) F.ex. Abercrombie store (picture with models etc) Motives can be LATENT or MANIFESTED

HOW can we detect these latent motives?!

 Laddering – you keep digging further and further

(latent motives are about things we don’t know ourselves or things we are reluctant to share.)

How do attributes translate in benefits? And how do these benefit tap into certain values?

F.ex. Why are 50cl cans of cola not popular?

Motivations can be INSTRINSIC or EXTRINSIC

Intrinsic = self-desire. Interest or enjoyment in the task itself

Extrinsic = performing activity for desired outcome, comes from outside



Reward

Intrinsic motivation is the self-desire to seek out new things and new challenges, to analyze one's

capacity, to observe and to gain knowledge. It is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on external pressures or a desire for consideration.

Extrinsic motivation refers to the performance of an activity in order to attain a desired outcome

and it is the opposite of intrinsic motivation. Extrinsic motivation comes from influences outside of the individual. In extrinsic motivation, the harder question to answer is where do people get the motivation to carry out and continue to push with persistence.

Usually extrinsic motivation is used to attain outcomes that a person wouldn't get from intrinsic motivation. Common extrinsic motivations are rewards (for example money or grades) for showing the desired behavior, and the threat of punishment following misbehavior. Competition is an extrinsic motivator because it encourages the performer to win and to beat others, not simply to enjoy the intrinsic rewards of the activity. A cheering crowd and the desire to win a trophy are also extrinsic incentives.

People are motivated differently HOMEOSTATIS vs SELF-IMPROVEMENT

Homeostatis: Equilibrium, maintain constant normal bloodstream, maintaining current state (F.ex. we eat when we are hungry to uphold bloodsugarlevel

Self-improvement: Changing current state to level that is more ideal

(F.ex. This explains why people go to the fitness and want a sixpack or why people buy luxury bags (louis vuitton))

The extent to which people are driven by the ‘self-improvement’ goes together with the ‘Regulatory Focus theory’

Some people are focused on:

Prevention focus: Avoiding negative consequences (- Homeostatis) Promotion focus: Pursuit of ideals (“gains”) (-Self-improvement)

With the marketing strategy there needs to be “fit”with people’s goals and motivations.

= Promotion focus

Temporal Motivation theory

Prevention focus =

Expectancy or self-efficacy: probability of success Value: reward associated with the outcome Impulsiveness: individual's sensitivity to delay

Delay: time to realization (the further away something is, the less motivated we are to do something about it)

3. Nudging

Def: A nudge is any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives.

Can we enrich public policy?

How to present a decision problem to the decision maker? Nudge relies on 3 main concepts:

-The architecture of choice (influence how people make choices) -Choice architecture is unavoidable

-Libertarian paternalism is not an oxymoron (= tegenspreking) (= The idea of libertarian paternalism might seem to be an oxymoron, but it is both possible and legitimate for private and public institutions to affect behavior while also respecting freedom of choice)

 Nudges may avoid some of the challenges of traditional regulation

 Nudges are applicable in several sectors (Health& well-being, Tax compliance, voting behavior,…)

Example: Donor donations if you have to register to be a donor people are less likely to register but if you create an opt- out options and you have to register to NOT be a donor people are more likely to be a donor so you create a choice architecture.  Nudges preserve freedom of choice

 There is just a choice architecture made so they push you subtle without obligating something!!

EAST REPORT= how to encourage certain behavior make it…

Social proof

DEF: Psychologisch en sociaal fenomeen dat verwijst naar het vertrouwen van mensen op de feedback en acties van anderen om te bepalen wat juist en wat verkeerd is in een bepaalde situatie’. Social norm= Social norms are regarded as collective

representations of acceptable group conduct as well as individual perceptions of particular group conduct

 Images of eyes motivate cooperative behavior because they induce a perception in participants of being watched

We are social animals and are influenced by a lot of things!

Social norms such as energy saving, tax debt, littering (injuctive norm= what must NOT be done, descriptive norm= What IS done.)

Loss Aversion

DEF: loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains. Physica nudges/ visual cues

People take the stairs instead of the roltrap because they are encouraged to take the stairs with the track Iines.

Salience (=opvallendheid)

Something has to stand out so that we can notice it + information has to be presented in an accessible way!

How? Present it as a competition, a call to action,…. Identifiable victim effect

A message about starving children in Africa is more likely to affect people when it is presented it in an way which you can identify with the victim. It’s a concrete situation, with a background story where you can help and make a difference for one child. If the message is presented with statistics such as 1 in 4 children dies of starvation, people are less likely to be captivated by the message.

Nudges can be used in a negative way or can have a negative effect.

 Nudge ≠ sludge (= a kind of mud that hangs around the essence of the message)  It can discourage people to act what is their best interest

 It encourages self- defeating behavior  Nudge ≠ Panacea= wondermiddel!

Behavioral nudges are too narrowly focused

E.g., a larger recycling bin may not change your water-saving behavior Hard to “get it right”

If too weak– no effect, if too strong – may anger consumers and backfire Nudges can be perceived as condescending

“You don’t have enough self-control, you need help…”

It is a learning process so they learn how to make good decisions and they will make the same decision without the nudge techniques

You can’t nudge opinions about climate change politics

4. Heuristics and

Biases

Decision making and choice

• Careful costs & benefits analysis

• weighted additive rule = “gold standard for rational preferences” - Identify all cues

- Recall and store all cue values - Assess the weight of each cue - Integrate info on all alternatives - Compare all alternatives

- Select alternative with highest value Dual process models

Heuristics = methodically and systematically arrive at inventions and discoveries.

• Bounded rationality: limited processing capacity, time pressure, task demands, low motivation / involvement

 Heuristics:

• Rules of thumb that are generally useful and will often lead to a correct answer or judgment (“adaptive toolbox”)

• Simple processes that replace complex algorithms • Intuitive or affect-based decision rules

When do consumers use heuristics?

 low involvement (e.g., product or decision not so important)  high cognitive load (e.g., time pressure, busy)

 complex choice / no expertise (e.g., pension plans)

Cognitive heuristics = rules of thumb for processing information that allow us to make quick and easy, but sometimes false, judgements

- Representativeness heuristic = probabilities or frequencies are evaluated based on the similarity of the target with a comparison object, often ignoring prior probabilities or base rates.

• People judge representative events to be more probable. Gambler’s fallacy = Misconception that when in the

past an event has occurred that will not happen again in the future, for example roulette, the more often in the past you will end on black, you will think that in the future there is a greater chance that you will end on red => NOT correct.

=> The belief that independent effects are interrelated

E.g., if something happens more frequently than normal during a given period, it will happen less frequently in the future (or vice versa).

- Availability Heuristics = We assess the frequency of a class or the probability of an event by the ease with which instances or occurrences can be brought to mind, the reliance on those things that we immediately think of to enable quick decisions and judgments.

We are especially likely to use information that is:  Easier to recall

 Vivid, well-publicized or recent  More salient (attention-grabbing)  Available

Dread risks (Damage, Reproducibility, Exploitability, Affected users, Discoverability) • Events with a low probability but high damage (e.g., 9/11: 3000

people died in one day)

• Out of fear of new attacks, people started traveling by car • Car crashes: 3000 deaths per month!

*Implications availability -> Visibility bias

• consumption is more salient than non-consumption • spending is normative, saving is not

• to think that examples of things that come readily to mind are more representative than is actually the case

- Anchoring & Adjustment = People anchor their first impression to persons and objects and you never get a second chance to make a first impression

Anchor= salient and accessible value Judgement process:

 Stage 1: Person starts with an initial idea (“anchor”)  Stage 2: Person adjusts away (up or down) from the

anchor to arrive at final estimate or evaluation => Adjustment is often insufficient (i.e., estimate biased towards the anchor)

*

Implications anchoring and adjustments

- It has also been shown that the items we buy in the grocery store are powerfully affected by the anchor values that are put in our heads by advertisers. => people are more likely to buy the first sign

- mention price with sale people like the idea of making a deal - In a negotiation be the first to name a price is serves as a prime - compare with the past

=> people do not like the first offers because it decreases in time however the total amount after 3 years is higher than the second offer (people anchor the first value, downwards trend is not preferred) *

Implications anchoring and adjustments :Confirmation bias

• Confirmation bias: People seek, select, and attend to information that supports their attitudes and beliefs

• Motivational (self-serving) component Example: In a survey about same sex marriage:

“You have a chance to win a cash prize of $10. The next task is to read 8 statements that argue AGAINST [FOR] legalizing SSM and answer a question about each one. OR, you can read 8 statements that argue FOR [AGAINST] legalizing SSM but your prize will be $7.”

“Which set of statements will you read?”

“8 statements in favor of …” OR “8 statements against legalizing SSM”

63% of participants chose to give up a chance at $3 to avoid hearing from the other side -> Similar pattern for both sides

Reading statements that are opposite to your opinion create: Cognitive dissonance (“cause me to feel angry,” “require a lot of effort on my part”)

Undermined shared reality (“likely result in a fight,” “harm my relationship with the speaker”)

In what fields does the consumers search for confirmation?

 Social context (impression-formation, stereotyping)

 Politics and ideology (own party agenda, echo chambers, misinformation)

 Medical context (diagnosis, perceived risk)

 Legal context (guilt/acquittal)

 Consumer behavior à product reviews, post-purchase rationalization, brand loyalty, etc. Framing = The technique consists of choosing words and images in such a way that a number of aspects of what is described are implicitly highlighted. These highlighted aspects help to propagate a certain reading of the described thing or an opinion about it.

• People react differently to a choice depending on HOW it is presented • Can be positive or negative

Gain/loss framing

 Gain frame (positive): People avoid risk, hoping to secure gains  Program A: saves 200 lives

 Program B: 1/3 chance that all 600 will be saved, 2/3 chance no-one will be saved  Loss frame (negative): People are willing to take more risk to avoid potential loss

 Program C: 400 people die

 Program D: 1/3 chance that no-one dies, 2/3 chance that all die Prospect theory

• Loss aversion= Losses have a bigger impact on people than do equivalent gains à asymmetry

=> The pain from losing $100 > than the joy of winning $100

• Reference dependence: All outcomes are evaluated with respect to a particular reference point, and preferences change as reference points change.

• Diminishing sensitivity: Outcomes have weaker effects as distance from the reference point increases.

 The difference between $0 and $100 seems greater than the difference between $1,000 and $1,100.

*Implications Loss aversion

- Marketers point out that you're missing out on something, "don't miss out on this deal."

- Pain of paying = painful when payment is coupled with consumption

• experienced as a loss, giving something away • hassle

• guilt (hedonic products)

• Mode of payment: credit card vs. cash

• Cash – more salient, physical, coupled with purchase/ consumption • Time of payment: now vs. later

 Decouple purchase from payment

If you want to feel the pain of paying money to save money for example (use cash, receive notifications every time you spend money, make payment more salient)

- Endowment effect = We overvalue goods that we own, regardless of their objective market value. • Valuation paradigms: people tend to pay more to retain

something they own than to obtain something they do not yet own

• Exchange paradigms: people given an object are reluctant (terughoudend) to trade it for another good of similar value.

Potential mechanisms of endowment effect:

 Loss aversion – acquiring vs. giving up something (more painful)

 Biased information processing – focus on different aspects when buying and selling (benefits vs. costs)

 Psychological ownership:

 Associative ownership – we hold a positive self-image so anything associated with our Self is perceived to be more positive/valuable

 Attachment ownership – what we own becomes part of our self- concept; we attach to it and losing it is like losing part of ourselves

 Ownership as a cognitive frame: we pay more attention to and better remember what we own, so it seems more valuable to us than to non-owners

How to reduces these endowment effects?

 Direct the attention of buyers/sellers to the information they ignore  Change the reference price that people use to evaluate the good

 Get buyers to touch, hold, or imagine owning the good (at home try-out, test-drive, free trial, …)

Ikea effect = the more effort we put into some pursuit, the more we value it => cognitive dissonance and effort justification

- Sunk cost fallacy = We continue a behavior or endeavor because of previously invested resources (time, money or effort)

Example: you are more likely to go to a football game when there is snowstorm when you paid for the ticket or you got the ticket for free.

*

Implications sunk cot fallacy

“I’ve already spent this much so I may as well pay a little extra for a better experience”

- Status-quo bias =we prefer things to stay as they are by doing nothing (inertia) or by sticking with an earlier decision.

• even when transition/switching costs are small • even for important decisions

 e.g., failure to switch to a better provider, change savings behavior or insurance plans…

• Caused by the need to feel in control, and the desire to avoid cognitive dissonance and regret => people feel more regret for bad outcomes that result from actions than for bad consequences that result from inaction

Inaction inertia= After bypassing an initial action opportunity (e.g., an attractive deal) we are more likely to bypass similar opportunities later (e.g., a less attractive but still Good deal) So you are less likely to buy in the future after missing out a good deal.

e.g., miss a 40% discount à bypass (overslagen) a 20% discount later Why? Sour grapes phenomenon

• missed opportunity is perceived as a LOSS • we devalue the missed opportunity • avoid (future) regret

Effect of inaction inertia is stronger when: • Difference in offers is large

• Alternative scenarios (getting the deal) are easy to imagine

Inaction inertia less likely when the missed opportunity is not used as a relevant reference point for evaluating subsequent opportunities, e.g.:

• Another travel agency offers the 2nd trip • A trip to a different destination

Temporal perspective = What happens in a year (when the 12 months pass)? (video Daniel Goldstein)

Commitment contracts: set a goal e.g. quit smoking every time you smoke a dollars goes to one the charities but that does not really work because if you smoke it’s bad for you but good for the charities => use anticharities (NRA= national rifle association) you do not want to give money to this charity so the people are more motivated to quit smoking.

5. Social heuristics and social

influence

Social heuristics help us to respond to our social environment  Persuasion techniques

Video: science of persuasion 6 rules of thumb/ shortcuts

1) Reciprocity = obligation to give them what you get - give a mint in return for a tip

Control group: no mint

Group 1: mint with bill ->tips 3% up Group 2: 2 mints with bill ->tips 14% up

Group 3: The waiter gives 1 mint, then walks away, but then returns and says, “For you nice people, here’s an extra mint.” -> tips 21% up

- Door in the face technique= The persuader attempts to convince the respondent to comply by making a large request that the respondent will most likely turn down, much like a metaphorical slamming of a door in the persuader's face.

-Making a concession

-Start with a high “opening bid”, then concede to a lower bid

2) Scarcity = people want more of the things they can have less of • Limited editions

• Pop up retail

• Notifications: “there only so much left, get yours”

 People are going to infer they have less time to buy so the want to be sure of their purchase 3) Authority = people follow the credible knowledgeable experts

-Status signals

• Titles – Dr., Prof., President, Chairman, CEO, Industry experts • Clothes – uniforms, suits, religious outfits

• Trappings – Accessories that go along with certain positions or roles (police badges, religious robes, cars, etc.)

- Expertise

• People are more convinced by experts than by novices • Endorsements

4) Consistency = we need to maintain stable beliefs, attitudes, and behaviors and appear consistent to both ourselves and others (looking for and asking for small initial adjustments that can be made)

Discrepancy = cognitive dissonance

Foot-in-the-door technique: ( >< opposite of doo in the face) A small request is followed by a larger request.

Agreeing with initial request -> rationalize compliance -> alter self-image (agreeable) -> need for consistency -> agree with larger request

“Will you help me shop for cake ingredients?”

“Will you help me bake the cake?”

5) Liking = people prefer to say yes to those they like, more likely to trust information from a friend than from a stranger (best interest at heart)

• Attention-grabbing

• Spill-over from endorser to brand: when you like the endorser so more likely you will spillover you likeliness for the brand

• Halo effect: attractive -> expert (Endorser has a positive effect on yourself and you link that with the positive characteristics of the brand.)

Liking is based on 3 pilars • Similarity

• People who give Compliments • Cooperative people

6) Consensus = when it’s uncertain, people look to the actions of others to determine their own Social validation (or, social proof): The perceived validity of an idea or the value of a product increases as the number of people endorsing it increases. (the proof is in the numbers)

e.g. you are more likely to order food in a crowded restaurant than in an empty one. e.g. Recommendation of products who are frequently bought together.

e.g. the label of Amazon’s choice (verified products)

-> Others engage in the same behavior it gives you the idea that this behavior is validated

7.

Social and sustainable

Marketing

7.1

What is Social

Marketing?

Social marketing is typically linked to nonprofit organizations; so it is the marketing of a social or nonprofit organization such as UNICEF; Red Cross; Cancer Research etc.

Now why do we spend particular attention to this?

1)

because it doesn't really get a lot of attention in some of our other courses and a lot of these are major organizations that also practice marketing, so some of you may end up there.

2)

The same marketing principles that are used to sell products and services to consumers can also be used to ‘sub quote unquote’ others or attitudes or change behaviors. Social marketing isn’t to influence the target audience to buy a product, but to accept a certain message or to reject certain alternatives. Fex Quitting smoking or abandoning such behavior. The idea is that that it will have a benefit for the individual, for example for yourself if you are more healthy, but also for certain groups, for example if you donate money, or society as a whole, because if you as an individual are more healthy that will also have benefits for society in a sense that society has to invest less in medical care for you.

The Belgian students may know who this person is; he's the king of Belgium and he's hugging a teddy bear. Why is he hugging the teddy bear? Well this teddy bear is the mascot for an organization called ‘stand up to cancer’ this is belgium's major Cancer Research foundation that not only collects money and donates a lot of his money to Cancer Research, but also for example lobbies with the healthcare to for example make sure that patients who had had cancer are not penalized in the health insurance fees that they have to pay or it for example also tries to negotiate with banks so that these people who have had cancer are not being penalised when they're trying to take out a loan or a life insurance. The ‘stand up to cancer’ is very successful and part of that is because the person leading ‘stand up to cancer’ has a background in commercial marketing and has backgrounds in advertising; working for a major advertising company for years. He has taken all these insights that he had gathered in commercial marketing and transported that to his organization ‘stand up to cancer’. for example - the use of the mascotte

-

having events would highly publicized figures such as the King

is typically something that we would see in commercial marketing, but it works just as well in not for profit marketing.

-

Bringing stories to people. Storytelling is typically something that we could use in commercial marketing, but can also be very successful as he said he would stand up to cancer - non profit marketing. So for example this is the story of Kathleen and Alan thanking people with ice cream. So they bring the stories of their volunteers, they bring stories of their patients, and his helps people to connect with their organization and with their cause. Of course, if you have a cause like ‘stand up to cancer’, it is relatively easy to get people to connect; because all of us know someone who has had or is fighting cancer. But the same

goes for other organizations better fighting for causes that may not be immediately as clearly relevant for everyone.

This for example is the pledge to end bullying. Now again, you could say it is relevant for everyone, but it's clearly uses insights from consumer behavior. for example to the insights on consensus to get people to stop bullying. So they make people sign a pledge or post this pledge on their social media that they are against bullying and rely on the concept of consistency to make sure that people will also act accordingly.

Social marketing is really about continuum of products.

As mentioned, we often make this distinction between commercial versus social marketing but in the end social marketing is also just marketing. So rather than just using marketing for commercial purposes in some more product we can really think of it as a process for delivering happier and healthier lives.

So what can we learn from commercial marketing and apply that to these social marketing or nonprofits settings, and of course we will often have different terminology so we go another no longer talking about customer we might be talking about it donor or even a recipient. So with the concept of target audience; who do we want to influence, what is driving them, is still very relevant.

Extra Example Social marketing

This is one of the most successful campaigns in social marketing from 2019. In September the parents of baby pia launched a campaign where they asked people to donate money for their baby who was at that time almost one years old and had the rare disease. Her medication was extremely expensive and cost over a million euro, it was not paid back by health services and so they launched this campaign. In total they raised 1.9 million euro.

Why? Because they had a really good insight into consumer behavior.

1)

appealed to people’s perceptions of justice this is our baby and she cannot be saved by traditional healthcare; where is the justice inthat?!

2)

They use ideas such as community building; #teamPia; yes we're all team this could happen to you, we want to be part of this team.

3)

And ideas of reciprocity; you could send a text message to donate 2 euro; what's 2 euro?! The idea was if only 1 Belgian in 10 would send a text; this baby would be saved. So, it seems like a really small thing to do.

They really harvested the power of social media and of a team with the idea of communities and by using this concept of reciprocity they were able to successfully gain the money.

After that success of course other babies started doing that as well or other parents with sick babies tried to do the same thing but, didn't manage to get quite the same momentum.

Now recall that doctor Greenwich also talk to you about the ‘identifiable victim’; in this case baby Pia is a very clear target to send your money to rather then lots of kids that might have this disease or have some other some sort of disease.

So ,what are commonly used appeals in social marketing?

1)

emotional appeals; based on what we call the “affect heuristic”

So, people base their decision on emotion, base their decision on affective responses. So, for successful social marketing we can again try to trigger it; try to tap into these emotions and try to change behavior. It's easier and more efficient than weighing the pros and cons of retrieving these relevant examples or arguments from our memory.

And strong effect serves as a cue for importance; so if we feel very strongly about something, we also feel that it will be very important and important for us to do something about it.

Often; we link social marketing causes to risk perceptions and feelings of dread. When Corona was not such a big issue as it is today, at the very beginning, youalready noticed that some people were starting to buy in bulk. Some people were already responding very strongly. Because they perceived the risk to be very strong; this can lead to a very emotional response which could feel exaggerated, specially in

the beginning because of distress but we will come back to that when we talk about the availability heuristic.

 So, affect is typically distributed/divided into positive and negative. What consequences does that have? well let's talk about for example about nuclear power.

What if we say that the benefit of nuclear power is high, so we tried to get positive affect

around that. Typically, people make risk perceptions and when the benefit is high; the perceived risk to be low. The other way it works as well; when we say the risk is low people also think the benefit is to be high.

At the same time, when the benefit is low, people also perceived risk to be higher or when there is high risk, people also inferred the benefits to be low. So the effect in this perception are linked.

* Guilt in social marketing

Examples of emotional appeal

1)

what would you like to be when you grow up? This kid would just like to be alive; makes you feel guilty …

2)

This woman mentioned that the girls room is about 6 degrees which is a little warmer than a fridge, when you're reading this in the comfort of your own home who's nice and toasty you will more like being more likely to donate

3)

This appeal takes it even one step further.

 Often we try to push the guilt away by taking some sort of action and think that we are done when we shared a message or when we like to message.

This message takes it further and say well likes don't save lives money does.

4)

This is an example of where children of parents who smoke, get to heaven earlier and trying to tap into guilt appeals to get parents to stop smoking specially for their children.

* Disgust in social marketing

1)

This ad shows what your arteries will look like/ could look like when you smoke.

2)

This ad is an ad by Greenpeace against Kit Kat. Kit Kat; the snack that you know right, Greenpeace is attacking Kit Kat for cutting down rainforests, to win palm oil, to use in its kit kats. So, what it has done is, it has actually copied an advertisement from Kit Kat with the idea of take a break; take a Kit Kat. And it's used the exact same advertisement but is has replaced the kids kat by something that's a little bit disgusting.

The charity market is growing! If you look at just the American markets people donated about 400 billion dollars to charity in 2015, they are estimated to give more than 25 trillion by 2052. So, the market is growing. There's also an increasing need to donate too charitable organizations.

At the same time, there are a lot of charitable organizations for example in the US alone, there are 1.5 or over 1.5 million charitable organizations, which means that there is a lot of competition between these charities. So, charities more and more need to use insights from marketing to try and win sufficient, not only donations but, also volunteers. Because one of the trends that we're seeing is that people are more and more selfish. We are getting increasingly overloaded lives and we are not willing to donate our time, even less than we are willing to donate money to these organizations. Large US nonprofits spent about 8 billion dollars a year on marketing, and that seems like a lot, because that's money that they could also be donating to their cause.

For example, ‘medicines medicine Without Borders’ or ‘doctors Without Borders’ is very open about what they spend their money on. They say for every donation that they receive, 80% or more is donated to the cause, and part of the donations are used towards keeping the organization up and running. For every dollar they spend, they actually win about 7 or

$8.00 in donations, so in that sense it still makes sense to spend money on marketing. Negative/Positive appeals??