Work expands so as to fill the time available for its completion.

ex: An example is provided of two people writing a postcard.  An elderly retired person may consume an entire day for this task: carefully choosing the card, contemplating the word choice, followed by a long, leisurely walk to the post office. A busy person will pick the first appropriate card, write it and mail it on the way home.

• 80/20 rule 
• 20 % of the time expended produces 80% of the results. 
• 80% of the time expended produces 20% of the results. 

Principles that guide purchases such as only buying certain brands or only shopping at certain store or buying certain styles

• are you a rational/impluse shopper? bargain vs innovator, malls vs discount stores?

• Price along with our income and our preferences helps determine our consumption choices. 
• most consumers try to stay within their budget constraint

The quantity of goods that you can buy given: 

-set prices

-limited income

-It shows all the possible combinations of X and Y the consumer can buy when spending all of her income. 

formula: 

C= (Y/Pc)-(Pf/Pc)F

• All combinations of goods outside of the budget set is NOT affordable and within the budget set is affordable. 

Also known as the budget constraint. 

it is the line that shows the tradeoffs in the production of goods. 

• any point on the budget constraint line is indicative of a person'e ability to trade between two goods X and Y
• The line slopes downward because it represents a trade off between good X and good Y
• you have to give up some of one good to gain some of the other good. 

when some people are charged different prices charged by hotels, airlines, depending on group affiliation or who is making the purchase. 

• it can be based on gender, race, age...

1. geography
2. income
3. gender
4. age
5. time
6. race
7. langage
8. residency
9. ability to haggle

can only buy a group of items, but CANNOT buy them individually

ex: can buy 4 lightbulbs in a pack but not just 1. 

candy bars in a movie theater --large size and how you are not permitted to bring FOOD into a movie theater. 

1) a price for the priviledge of buying items and then 2) the actual price per item

ex: cabana club membership to just go to the beach and then the actual cost of the food there

ex: cover charge to enter the bar and then actually buying the drinks

• personal selling is PREFERRED, but it can be very costly to try to contact everybody
• Therefore we engage in advertising so that the seller can reach more potential consumers. 

US: $237 billion

Worldwide: $470 billiion

• Consumers wear or display their homes product logos (athletic Nike gear or displaying Georgia gear in their homes)
• our identities are formed through an allegiance to common value systems expressed through affiliation with product sets. 

What is advertising?

Product generated information about products and services. 

• The activity of attracting public attention to a product or business by paid announcements in the print, broadcast, or electronic media. 
• It is an impersonal, one-way communication that can be repeated several times. 

To inform, persuade, compare, remind

IPCR 

I paint colorful rainbows. 

1. Familiarity
2. Humor ( Positive Association)
3. Sexuality
4. Animals

Infomercials are long-format television commercials, typically five minutes or longer. Infomercials are also known as paid programming.This phenomenon started in the United States where infomercials were typically shown overnight (usually 2:00 a.m. to 6:00 a.m.)--outside of peak hours.

Product Placement!

They are placing their products on actresses and celebrities in movies and during TV shows. 

a system in which companies are selling WITH consumers. 

ex: when you wear a t-shirt with a business' name located on the front you are advertising for that company. 

• corporations use major sporting events to advertise their products 
• ex: coors light in car racing and advertising in arenas

• also called "pioneer" advertising
• provides the consumer with specific, understandable, verifiable claims. 
• informative advertising REDUCES consumers uncertainty about the attributes of the promoted product. 
• Their tendency to purchase a product increases with the number of ads they were exposed to. 
• an increase in exposure to advertising leads to an increase in the expected satisfaction. 

• ads that do not give any relevant information but also do not mislead the consumer. 
• ex: America's best cup of coffee. 
• the words "best" and "favorite" are not misleading facts but mere puffery. 

• tendency to decieve
• impression that the ad isnt truthful when it isnt
• omission of important information

First, customers are "baited" by advertising for a product or service at a low price; second, the customers discover that the advertised good is not available and are "switched" to a costlier product.

The goal of the bait-and-switch is to persuade buyers to purchase the substitute goods as a means of avoiding disappointment over not getting the bait, or as a way to recover sunk costs expended to try to obtain the bait. It suggests that the seller will not show the original product or service advertised but instead will demonstrate a more expensive product or a similar product with a higher margin.

• companies used to hesitate to do this, but now they do it freely. 
• sometimes it can backfire and cause the viewer to NOT want to buy the product--if the comparison is too harsh 
• ex: political advertising that is too nasty

• In a market that is saturated with a certain product, everyone selling that product has to advertise or be left out of the market. 
• You dont gain anything necessarily by advertising but at least you are still in the game. 

• is a specific communication task to be accomplished with a specific target audience during a specific period of time

1. Creating advertising messages
2. selecting advertising media

• identify customer benefits of buying the product
• The ad should be meaningful, believeable, and distinctive. 

• Choose a tone ( animal cruelty vs doritos)
• use memorable attention-getting words
• ex: "Snap, crackle, pop!", "just do it"

1. gain attention and interest
2. inform and persuade
3. lead to a person buying

Planning the Best Message:

A

I

D

A

Attention

Interest

Desire

Action

Selecting Advertising Media:

Reach, Frequency, Media Impact

Reach: % of people exposed to the ad

Frequency: # of times a person is exposed to the ad

Media Impact: The qualitative value of a message exposure through a given medium

Deciding on Media TIMING:

1. should you follow a seasonal pattern?
2. oppose seasonal pattern?
3. same coverage all year?

1. Is the ad increasing sales?
2. increasing base consumers?
3. can you build other ad campaigns off of this one?

1. Proctor and Gamble
2. Phillip Morris
3. General Electric
4. Time Warner
5. Disney

• can issue a consent decree
• can ask for ad substantiation
• can issue a cease or desist order
• can require a corrective ad

• also called " counter advertising "
• FTC requires company found liable for deceptive advertising to issue advertising anew that corrects the earlier misinformation

• marketing to children is hard because they do not have the cognitive ability to understand many ad advertisements. 
• The averageman rule doesnt work

Subliminal advertising--hidden messages embedded in ads--is considered a deceptive business practice by the Federal Trade Commission. Yet a legal kind of "subliminal" persuasion happens every day. Shoppers are regularly encouraged to buy by appeals to their senses or unconscious assumptions. 

Some Products Just Feel Right 
I once conducted a test by giving consumers both a lightweight and a heavy TV remote control. The across-the-board response to the lighter-weight model? "It's broken." Even when they found out the lightweight remote was totally functional, shoppers still felt its quality was inferior. 

We Fall for "Tradition" 
Some people believe that squeezing a lime into a Corona beer is a time-honored Mexican custom that came about to enhance the beer's taste. 

Music Makes Us Buy 

Places Give Cachet 
A product's country of origin can subliminally influence what we buy. Let's say I offered you a choice of two new cars (my treat). They're the same model, the same make, the same color, and both are decked out with the same accessories. There's only one difference: One is made in Turkey, and the other is manufactured in Switzerland. My guess is that you'd pick the Swiss model, since you associate Switzerland with superb craftsmanship and high standards.

Shapes Have a Draw 
A large food manufacturer once tested two different containers for a diet mayonnaise aimed at female shoppers. Both containers held the exact same mayo, and both bore the exact same label. The only difference? The shapes of the bottles. The first was narrow around the middle and thicker at the top and on the bottom. The second had a slender neck that tapered down into a fat bottom, like a genie bottle.