Question

Ch8

the different types of stimulus factors

individual factors and situational factors

the concept of interpretation

the terms of cross-promotion, claim-belief discrepancy, direct claim, and advertising intensity

the terms of co-branding, expectation bias, brand extension, and ambush marketing

What’s logo development and logo design

Answer 1

Answer 1. different types of stimulus factors-

There are various stimulus factors –

1. Size – If the stimulus is small, then it is unnoticed.
2. Intensity – If it is used repetitively then the intensity of attention decreases
3. Attractive visuals – Visuals need to be very attractive and only then attention can be drawn for an ad and it can be sold better in the market.
4. Color and Movement – Brightly colored objects are more noticed and they draw more attention and thus are very important in selling a product.
5. Position – Items lying in corner and which are difficult to find in a store lack attention. Even ads on the left side of the book receive less attention. Hence, position also plays an important role in stimulus.
6. Isolation – Things if isolated receive less attention.
7. Format – A lack of clear visual reference receives less attention and also if audio messages are unclear they receive less attention.
8. Contrast and expectations – Consumers pay more attention to the stimuli that contrast with their background.
9. Interestingness – Entertainment is very important in ads. Else the consumer finds it uninteresting and receives less attention.
10. Information quantity – Information should be limited. Overload of information loses the attention of consumers.

Answer 2. individual factors and situational factors-

There are various individual and situation factors

1. Individual Factors

• Motivation – If the consumers are motivated for that product they will pay more attention
• Ability – If they are financially sound individually they will be more attracted towards it.

2. Situational Factors –

• Clutter – If it’s an untidy clutter, the consumers pay less attention to it.
• Program Involvement – Program involvement always have a greater attention and influence on consumers.

Answer 3. the concept of interpretation-

There are 3 aspects of interpretation-

1. A relative process rather than absolute (perceptual relativity)
2. Subjective and open to psychological biases
3. Cognitive thinking process or an effective emotional process.

Interpretation is also determined by 3 characteristics-

1. Individual characteristics-

• Psychological and physiological traits drive our needs and desires. Stimulus is interpreted based on these traits.
• Physiological Eg- taste
• Psychological Eg – cognitive, emotional thinking affect intensity.
• Learning and Knowledge – Natural thing like color, space and relationships are learned and vary widely across cultures.
• Expectations – Interpretations mostly go in line with expectations and consumer acts based on his expected biases

1. Situational characteristics-

• It depends upon the situation of the consumer. If he is more attracted and financially sound then he will interpret in a positive manner and get attracted towards the product.

1. Stimulus characteristics-

• Traits – Various figures and deviation in language use influence or attract the consumer behavior towards that product.
• Organization – Proximity, Closure, Figure-Ground also affect the consumer inferences and interpretation.
• Changes – Sensory Discrimination will influence the consumer biases

Answer 4. the terms of cross-promotion, claim-belief discrepancy, direct claim, and advertising intensity-

1. Cross Promotion –

• It is a marketing technique where a company promotes other’s products or other brand.
• They are generally the related products. Eg- Master and Visa cards.
• It is generally a win-win situation for all the parties as they get what they need.
• It is a more economic way to reach more people.

1. Claim-Belief Discrepancy –

• Basically in this type of advertisement no deceptive claim is explicitly made but a deceptive belief is created which is misleading.
• This is basically fraudulent and misleads the consumers which are not an effective way of advertising.

1. Direct Claim –

• When a company directly claims its product is known direct claim.

1. Advertising Intensity –

• It is measured by calculating the ratio of advertising expenditure to total assets
• It is determined by various things such as product differentiation, data source and empirical results.
• It is correlated with the investor recognition and implied cost of capital.
• Higher advertising intensity is associated with the lower implied cost of capital and thus investor’s recognition is measured.
• Thus, if the consumers are more influenced by the advertising then it is a good marketing strategy.