Topics Under Chapter 9
Learning Choice Tactics
By Dean
The main idea of this chapter revolves around low-effort purchases and how the consumer processes information and makes a decision either consciously or unconsciously. The human mind has developed a mechanism to make choices easier especially when it comes to low-effort decisions. It’s important for marketers to learn how to condition their consumers to always choose their brand. Through operant conditioning, marketers are able to reinforce (satisfy a consumer), punish (when the consumer experiences negative emotions) create repeat purchase, and teach choice tactics. Homedepot has successfully done so by implementing a reward program called Pro Xtra. As you can see, the company offers its members exclusive perks and good deals to keep them coming back to their stores. Because of this program, consumers will develop choice tactics such as habit, brand loyalty, and even price as a simplification strategy that will benefit Home Depot.
Brand Familiarity Through Mere Exposure Effect by Marycruz
Achieving brand familiarity means that there will be an easy recognition between that brand and its customers.One way that Home Depot has expanded it’s brand familiarity is by partering up wth Martha Stewart Living. Martha Stewart is predomilately female-oriented home goods brand, while Home Depot is a classic home improvement store targeted at “DIY” customers. With the merging of these two brands, each company has the opportunity to speak to a new market segment. By customers seeing both of them brands either from Home Depot or Martha Stewart website/stores they will most likely gain a brand familiarity with both and customers from both sides will likely gain trust for both.
Normative Choice Tactics
By Alejandra Gonzalez
Normative choice tactics result from direct influence. That's where others try to influence you or vicarious observation which is we observe others to guide our behavior. Lastly there's indirect influence in which we are worried about what others may think. These tactics are common in inexperienced customers who don't have much knowledge in products. Home Depot has guides on their websites for people who aren’t familiar with certain products and these guides can help you with what you’re looking for. Marketers can communicate through the website to help these customers when shopping.
As you can see in the photo, Home Depot has multiple guides for everything they offer in store to help customers with their decision making.
Cognitive Decision Making: Brand Loyalty
By Niousha Khosrowyar
Brand loyalty is the positive association consumers attach to a particular product or brand. Customers that exhibit brand loyalty are devoted to a product or service, which is demonstrated by their repeat purchases despite competitor's efforts to lure them away. Corporations invest significant amounts of money on customer service and marketing to create and maintain brand loyalty for an established product. Home Depot spends millions of dollars each year on advertisements to keep customers loyal and devoted to their company. Customers buy from them repeatedly because of a strong preference for their company over competitors. Another reason is due to cognitive lock-in which is when consumers remain loyal to a brand because of the learning curve required to switch to another brand.
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