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MANAGING PROJECTS

Projects represent nonroutine business activities that often have long-term strategic ramifications for a firm. In this chapter, we examined how projects differ from routine business activities and discussed the major phases of projects. We noted how environmental changes have resulted in increased attention being paid to projects and project management over the past decade. In the second half of the chapter, we introduced some basic tools that businesses can use when planning for and controlling projects. Both Gantt charts and network diagrams give managers a visual picture of how a project is going. Network diagrams have the added advantage of showing the precedence between activities, as well as the critical path(s). We wrapped up the chapter by showing how these concepts are embedded in inexpensive yet powerful software packages such as Microsoft Project. If you want to learn more about project management, we encourage you to take a look at the Web site for the Proj...

Learning and Memory

It is important to understand how consumers learn about products and services.
Learning is a change in behavior caused by experience. Learning can occur through simple associations between a stimulus and a response or via a complex series of cognitive activities.
Conditioning results in learning.
Behavioral learning theories assume that learning occurs as a result of responses to external events. Classical conditioning occurs when a stimulus that naturally elicits a response (an unconditioned stimulus) is paired with another stimulus that does not initially elicit this response. Over time, the second stimulus (the conditioned stimulus) elicits the response even in the absence of the first.
Learned associations with brands generalize to other products.
This response can also extend to other, similar stimuli in a process we call stimulus generalization. This process is the basis for such marketing strategies as licensing and family branding, where a consumer’s positive associations with a product transfer to other contexts.
There is a difference between classical and instrumental conditioning, and both processes help consumers learn about products.
Operant, or instrumental, conditioning occurs as the person learns to perform behaviors that produce positive outcomes and avoid those that result in negative outcomes. Whereas classical conditioning involves the pairing of two stimuli, instrumental learning occurs when a response to a stimulus leads to reinforcement. Reinforcement is positive if a reward follows a response. It is negative if the person avoids a negative outcome by not performing a response. Punishment occurs when an unpleasant event follows a response. Extinction of the behavior will occur if reinforcement no longer occurs.
We learn about products by observing others’ behavior.
Cognitive learning occurs as the result of mental processes. For example, observational learning occurs when the consumer performs a behavior as a result of seeing someone else performing it and being rewarded for it.
Our brains process information about brands to retain them in memory.
Memory is the storage of learned information. The way we encode information when we perceive it determines how we will store it in memory. The memory systems we call sensory memory, short-term memory, and long-term memory each play a role in retaining and processing information from the outside world.
The other products we associate with an individual product influence how we will remember it.
We don’t store information in isolation; we incorporate it into a knowledge structure where our brains associate it with other related data. The location of product information in associative networks, and the level of abstraction at which it is coded, help to determine when and how we will activate this information at a later time. Some factors that influence the likelihood of retrieval include the level of familiarity with an item, its salience (or prominence) in memory, and whether the information was presented in pictorial or written form.
Marketers measure our memories about products and ads.
We can use either recognition or recall techniques to measure memory for product information. Consumers are more likely to recognize an advertisement if it is presented to them than they are to recall one without being given any cues. However, neither recognition nor recall automatically or reliably translates into product preferences or purchases.
Products help us to retrieve memories from our past.
Products also play a role as memory markers; consumers use them to retrieve memories about past experiences (autobiographical memories), and we often value them because they are able to do this. This function also encourages the use of nostalgia in marketing strategies.

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