Ethics
Are unethical or illegal actions more common?
Unethical
How is loss aversion and status quo bias connected?
If you are given something you know other people have, you are even more averse to losing it or giving it up. Loss aversion describes the phenomenon that the loss is greater than the impact of the gain. Used in marketing during 24 test drives.
Sticky Information
Simple information that is memorable, shareable, attention-grabbing, and persuasive
Do most brands over or under-invest in creative advertising?
Brands under-invest. Creativity in Advertising says creative ads get attention, increase likeability, and are more effective though they may not influence purchasing behavior
What are the three broad activities described in Ad Analytics 2.0
Attribution(quantifying contribution of each element), optimization (predictive analytics tools to run scenarios), allocation (real time redistribution of resources)
How does the FTC protect consumers? What types of ads are they more likely to focus on?
Requires that advertisers have proof of implied or express claims (bonus points if you differentiate between the two). Likely to focus on ads brought to them, ads that target vulnerable consumers, and/or claims that consumers have a difficult time evaluating themselves
Additionally, requires clear and conspicuous disclosures, asserts small print cannot be used to undo claims and must only be used to clarify or elaborate
Why do people feel they are better than average?
Overconfidence and reference group neglect or the idea that you know yourself better than others
Concreteness, Credibility, Emotion
Ways to build more shareable information that allows audiences to better identify with your marketing efforts
Should producers offer lower prices to allow consumers to focus on the quality of the good? Wh or why not
No. Discounting can signal a lower value or quality. How to stop consumers from fixating on price says price can clarify advantages by calling attention to quality, overpricing stimulates curiosity, partitioning can highlight benefits and quality
What does "Ads that Don't Overlap" say about using targeted advertising?
Consumers don't act logically when it comes to privacy, but factors that predict their comfort levels include the nature of the information and the manner in which it changes hands. Targeted ads are personally relevant and an invasion of privacy.
What is puffery? What is an example of puffery?
A subjective claim that the reasonable consumer does not take seriously ex. "We have the best pizza"
What is a probable affect of hindsight bias?
Increased overconfidence or thinking you were more accurate than you were initially.
Do brands matter more with AI?
No. Brands matter less due to more matching efficiency. Companies should increase focus on satisfaction and alter design offerings to retain customers.
Why do loyalty programs lose savings?
They did not add a redemption hurdle which can enable price segmentation and lead to a successful minimalist rewards system.
What are the penalties for false advertising? How far does the liability extend?
Cease and desist, civil penalties, corrective ads or disclosures. Liability does not typically extend beyond the ad agency or endorsers
Attraction and compromise effects
The tradeoff between products with multiple dimensions where you are more attracted to one with the addition of an asymmetrically dominated decoy.
Why are memories more important than experience?
Increase the power of story. People are driven to collect unique experiences and protect them.
Do all choices have default options?
No. A lack of default can leverage forced choice to deter customers from choosing a specific thing.
What does the selling on TikTok reading say about purchasing behavior?
Social media influences buying patterns for Gen Z and selling on the internet is increasingly important noting new consumer segments and immediate sales
What is the difference between a descriptive norm and an injunctive norm? What are the risks of highlighting descriptive norms in marketing?
Descriptive is what people do, injunctive is what they are doing and what they SHOULD do. Risks include people being averse to the norm.
How can defaults affect our choices? How are they different from nudges?
Change how we categorize actions (ex. organ donors) and decrease our likelihood of moving away from the default choice.
Nudges (tax incentives, sin taxes) do not incentivize or take away choices like defaults
Why can virality seem random? How do things spread?
Platforms give one user a megaphone to spread information. Information can spread in echo chambers of people with homophilic interests. Virality often depends on the interactions in the first few moments after release.
Should ads be an emotional rollercoaster?
Yes. People are more likely to keep watching an ad if they experience emotions throughout
What does marketing in the age of resistance argue is increasingly important?
Brands need to show consumers their authentic values