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Download VTU MBA 3rd Sem 16MBAMM301-Consumer Behaviour CB Chapter 4 -Important Notes

Download VTU (Visvesvaraya Technological University) MBA 3rd Semester (Third Semester) 16MBAMM301-Consumer Behaviour CB Chapter 4 Important Lecture Notes (MBA Study Material Notes)

This post was last modified on 18 February 2020

VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University


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Individual influence

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Consumer Behavior

Part 2


Module 4


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Consumer Learning

A process by which individuals acquire through

consumption knowledge and experience

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to future related behavior.


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Learning Process

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• Intentional

• learning acquired as a result of a search for

information


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¦ Incidental

-- learning acquired by accident or without

much effort


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Importance of Learning


• Marketers must teach consumers:

• where to buy

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• how to use

• how to maintain

• how to dispose of products


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Elements of Learning


Motivation

Unfilled needs

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lead to motivation


Cues

Stimuli that direct

motives

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Response

Consumer

reaction to a drive

or cue

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Two Major Learning Theories


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Behavioral Learning

• Based on observable behaviors (responses)

that occur as the result of exposure to stimuli


Cognitive Learning

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• Learning based on mental information

processing

• Often in response to problem solving


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Behavioral Learning


It is a process of

behavior modification

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made famous by Ivan

Pavlov and his

experiments

conducted with dogs.


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Classical/Pavlovian

Conditioning


Ivan Pavlov


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It is a type of learning

in which voluntary

behavior is controlled by

its antecedents and

consequences

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Operant/Instrumental

Conditioning


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Classical Conditioning by Pavlov


A behavioral learning theory according to which

a stimulus is paired with another stimulus that

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elicits a known response that serves to produce

the same response when used alone.


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Consumer Learning | Prof. Abhipsa Mishra


Device to count

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drops of saliva


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Model of Classical Conditioning

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Unconditioned Stimulus

Food and water


Conditioned Stimulus

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Bell


AFTER REPEATED PAIRINGS:


Conditioned Stimulus

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Bell


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Example

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Unconditioned Stimulus

Dinner aroma


Conditioned Stimulus

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8 O'clock News


AFTER REPEATED PAIRINGS:


Conditioned Stimulus

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8 O'clock News


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Strategic Applications of Classical Conditioning

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Basic Concepts


• Repetition

• Stimulus

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generalization

• Stimulus

discrimination


• Increases the association

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between conditioned

and unconditioned

stimuli


• Slows the pace of

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forgetting


• Advertising wear-out is

a problem


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Repetition of the Message with Variations

More Information Processing by Consumers


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Strategic Applications of

Classical Conditioning


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Basic Concepts


• Repetition

• Stimulus

generalization

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• Stimulus

discrimination


• Having the same response to

different stimuli

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• Helps "me-too" products to succeed


• Useful in:

• Product extensions

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• Family branding

• Licensing


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Strategic Applications of

Classical Conditioning


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Basic Concepts


• Repetition

• Stimulus

generalization

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• Stimulus

discrimination


• Select the most appropriate

stimuli for advertising

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stimuli for advertising


• Opposite of stimulus

generalization


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• This discrimination is the basis of

the battle for brand loyalty, which is

ways to differentiate their products


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Cognitive Associative Learning


¦ Also called Neo-Pavlovian theory


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¦ Learning involves not only the association of

new reflexes; it is the acquisition of new

knowledge about the world


¦ Under this theory, consumers are viewed as

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information seekers who use logical and

perceptual relations among events, along

with their own preconceptions, to form a

sophisticated representation of the world


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Instrumental (Operant) Conditioning

Burrhus Frederic Skinner


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Skinner believed that the best

way to understand behaviour is

to look at the causes of an

action and its consequences. He

called this approach operant

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conditioning


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A behavioral theory of learning

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based on a trial-and-error process,

with habits formed as a result of

positive experiences

(reinforcement) resulting from

certain responses or behaviors.

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A Model of Instrumental Conditioning


Try

Brand A


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Try

Brand B


Stimulus

Situation

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(Need good-

looking jeans)


Try

Brand C

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Try

Brand D

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Repeat Behavior


Reinforcement of Behavior


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Positive


Positive outcome

Strengthen likelihood


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Positive reinforcement is a good thing that happens as a result of

behavior – Going to the gym made you feel good for the rest of the

day.


Negative outcome is a bad thing that happens as a result of

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behavior. You ate a donut every morning for a week and gained a lot

of weight over the past week. This causes you to not eat a donut the

other day and to stop eating donuts.


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Reinforcement of Behavior


Extinction


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A learned response is no longer The reinforcement is withheld

reinforced


The link is eliminated between

stimulus and reward

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Extinction and forgetting are easily confused. They are two different

words mean. If the response, is forgotten it can be retrieved by

remembering. If it is extinct, it is unlearned. The association between the

stimulus and the response is destroyed.

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Strategic Applications of Instrumental Conditioning


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• Customer Satisfaction (Reinforcement)

means that each time the customer has a

experience with the product or service there

has been positive reinforcement


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• This is the reason relationship marketing is

important.


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Strategic Applications of Instrumental Conditioning


• Reinforcement Schedules can vary


• They can be (otherwise called “Schedules of

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reinforcements”

¦ Total (or continuous) reinforcement

¦ Systemic (fixed ratio) reinforcement

¦ Random (variable ratio) reinforcement


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• Marketers will often use random rewards as a

bonus for the customer and fixed rewards such as

loyalty points or rewards.


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Strategic Applications of Instrumental Conditioning


• Shaping is a procedure in which reinforcement is

used to guide a response closer and closer to the

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response.


• Shaping occurs by having the reinforcement occur

BEFORE the behavior occurs.


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• In this situation, the consumer can be thinking

of a reward before they actually make a decision

and purchase a product.


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Strategic Applications of Instrumental Conditioning


• Massed versus distributed learning: Should the

learning and the exposure to the stimuli occur in a

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relatively short period of time or be distributed?

Media planners are often faced with this decision

when putting together an advertising campaign.


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Elaboration Likelihood Model

ELM


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Two Routes


1.Central Route

• Message elaboration; the path of cognitive processing that

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involves scrutiny of message content


• Message Elaboration

The extent to which a person carefully thinks about issue

RELEVANT arguments contained in a informative presentation

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Two Routes


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1. Peripheral Route

• Mental shortcut process that accepts or rejects a message

based on irrelevant cues as opposed to actively thinking

about the issue


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• “click, whirr" - programmed response; automatic


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“Click, whirr” Cues

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1. Reciprocation (exchange)

2. Consistency

3. Social Proof

4. Liking

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5. Authority

6. Scarcity


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The Elaboration Likelihood Model


Central route to persuasion

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Peripheral route to persuasion


Exposure to marketing message


High involvement with

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product, message, or

decision


Low involvement with

product, message, or

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decision


Strong attention focused on

central, product-related features

and factual information

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Limited attention focused on

peripheral, non-product features

and feelings


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Conscious thoughts about

product attributes and use outcomes;

considerable elaborative activities


Low or nonconscious information

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processing;

few or no elaborative activities


Persuasion generally alters product

beliefs, which influence brand attitude,

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which influences purchase intention


Persuasion operates through classical

conditioning; attitude toward

the ad, and nonconscious inferences lead

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to a behavioral response


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Attitudes

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What is an attitude?


• Expressions of inner feelings that reflect whether someone

is favorably or unfavorably predisposed toward an object

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• In marketing, “object” can be a brand, service, individual,

service, a service provider, a retail store, advertisement, or

advertisement, in essence, any marketing stimulus


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• Opinions


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Attitudes

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Nature


• Attitudes Are Acquired, We Are Not Born With Them

• Attitudes Can Be Positive Or Negative

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• Attitudes May Be Complex And Contradictory

• Attitudes Are Functional For An Individual

• Attitudes Have Different Intensities

• Attitudes Have Centrality, How Well They Are Linked To Core

Values,

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• Attitudes Are Personally Unique To Each Individual

• Attitudes Can Be Modified And Influenced

• Attitudes Are Assumed To Be Linked To Behavior (e.g.,

Purchasing)


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Why, From a Marketer's point of view, is it important

to know about Attitudes?


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• If a consumer is favorably disposed toward your

product or service then you want to keep them

so disposed


• If they are unfavorably disposed then you want

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to change their attitude.


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Models of Attitude

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The Tri-component Model of Attitudes


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The ABCs of attitudes:


The Affective Component (based on feelings or emotional reactions)

- I feel good about myself when I drive a BMW


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The Behavioral Component (likely action toward the object, from a

consumer behavior point of view, the consumer's intention to buy the

product) – I will buy a BMW next time


The Cognitive Component (based on beliefs; knowledge and evaluations of

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a marketing stimulus) – I think BMWs are quality cars


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Implications of Attitude Research for

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Marketing Strategy


• Product positioning and repositioning


• Shows which attribute has a competitive advantage and which has

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a disadvantage


• Advertising-focus on certain attributes/benefits

• Marketing research

• Segmentation

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• Distribution: select outlets for which consumers have the most

favorable attitudes


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Multi-Attribute Attitude Models


• What is a multi-attribute attitude

model?

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It is a mathematical representation of the

nonconscious process consumers use when

evaluating the overall cognitive composition of

an attitude toward a particular object

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• Its elements include:

1. Beliefs about an object's attributes

2. Ideal performance levels for each attribute

3. Relative importance attached to each attribute

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A 7-1 (Exhibit 7.4) An example of the multiattribute attitude

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No caffeine

e1 = +3


7UP

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A = 27


b1 = 10

b2 = 5


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All natural

ingredients

e2 = +1


3

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b3 = 8

Attitude 7up = ? be

i= 1


A = (10)(3) + (5)(1) + (8)(-1)

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A = 30 + 5-8

A = 27


Lemon-lime

flavor

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e3 = -1


Diet Pepsi

A = 6


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3

Attitude DP = ? be

i= 1


A = (7)(2) + (6)(-3) + (5)(0)

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A = 14 - 18 + 0

A = 6


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Richard D. Irwin, Inc., 1994


Strategic Implications of the

Multiattribute Model


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Capitalize on

Relative Advantage


Influence Competitors'

Ratings

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Designing Persuasive Communications


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¦ Message Presentation

- Resonance

- Message Framing

- Comparative advertising

- One-sided Versus Two-sided Message

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- Order Effects


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Designing Persuasive Communications

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Message Structure

and Presentation


¦ Resonance

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¦ Message framing

¦ Comparative

advertising

¦ Order effects


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¦ Wordplay

¦ Used to create a double

meaning when combined

with a relevant picture


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Designing Persuasive Communications


Message Structure

and Presentation

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¦ Resonance

¦ Message framing

¦ Comparative

advertising

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¦ Order effects


¦ Positive

¦ Negative

¦ One-sided

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Positive Framing in Fair & Lovely


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Designing Persuasive Communications

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Message Structure

and Presentation


¦ Resonance

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¦ Message framing

¦ Comparative

advertising

¦ Order effects


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¦ Marketers claim product is

superior to other named

brand

¦ Useful for new products


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Dove in a comparative ad against Pantene


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Designing Persuasive Communications


Message Structure

and Presentation


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¦ Resonance

¦ Message framing

¦ Comparative

advertising

¦ Order effects

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¦ Primacy

¦ Recency


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VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University