People who have a specific level of income, who are attracted to a specific part of a city, tend to share common values. The taxonomy called a Classification of Residential Neighborhoods (ACORN) system, created by the Consolidated Analysis Centers Incorporated (CACI) quantifies these trends over time. The use of Geodemographic techniques has proven to be reliable in site planning for new restaurants, grocery stories and retail outlets. Further, geodemographic techniques also isolate factors that lead to specific group definitions and affiliations as well. This field has grown from relatively simplistic techniques to complex statistical models that have increased inaccuracy and performance. In general, geodemographic techniques are used as the basis within retailers to plan their future locations and have proven to be reliable.
We sometimes increase our attitude toward a product after we buy it. How does the theory of cognitive dissonance explain this change?
The theory of cognitive dissonance is one of the most critical in consumer behaviour as it explains the decision processes that consumers go through when initially trying new brands of products and resolving conflicting thoughts regarding their experiences. Cognitive dissonance happens when a consumer has two more conflicting thoughts regarding a product or service at the same time. To alleviate this conflict, a consumers' perceptions work to filter information to support the perception and beliefs most strongly held, so that over time, the decision making process is made more efficient. This filtering is what makes consumers brand loyal over time and further fuels trust in a given brand over another. The habit of a consumer purchasing one type of detergent over time is a result of the successful resolution of cognitive dissonance over time. When the detergent performs as the consumer expected it to, trust and loyalty tend to follow, alleviating the cognitive dissonance of switching...
This concept also explains why switching consumers to new brands is so difficult, and why consumer loyalty is so critical to retain through consistent execution of both product and marketing strategies.
What is an avatar, and why might an advertiser choose to use one instead of hiring a celebrity endorser?
An Avatar is a digital representation of a character, real or imaginary, that is created specifically to accentuate the values of a brand. Geico Insurance's use of the English-accented gecko lizard is a case in point. Geico has the freedom to have the avatar communicate any message and also accentuate the core values of the brand, which are approachability and a sense of humour. Geico obviously specifically chose the gecko due to its alliteration to the company's name. Since its introduction the gecko has been interviewed on mock talk shows, driven motorcycles and underscored the approachability, sense of humour and low cost of Geico's many forms of insurance.
The many benefits of having an avatar for use in advertising is that first they don't require salaries, retainers, or loyalty distributions. Avatars, like the gecko that Geico has created, are royalty-free, is the company's own creation, which makes them very economical to use. Second, avatars clearly don't have the associated risks included in hiring a celebrity, including their rise or fall in popularity, personal indiscretions potentially impacting the brand, and the complications of allowing some celebrities creative control over the advertisements as well, which some demand. Avatars are more economical, easier to direct, and can be quickly replaced without any contractual costs being incurred. Avatars can also generate revenue as a company can license them to others, yet the brand equity issues surrounding this would need to be explored. In short, avatars, when correctly used, are a major asset for companies who successfully use them.
