BUS-2600 Chapter Notes - Chapter 15: Warren Buffett, Geico, Hedonic Treadmill
4 Feb 2020
School
Department
Course
Professor
Document Summary
Advertising: any paid form of non-personal presentation by an identified sponsor that promotes a good, idea, or service, public service announcements are also ads (ideas, value being promoted, ex. Warren buffet acquiring geico--"money is no object: ad spending from 10m to 500m, but this forever changed geico and the entire auto- insurance industry (using humor to sell the product) Key concept to understand advertising: exposure: exposure--when a stimulus comes within range of someone"s sensory receptors, **but consumers can choose not to be exposed to some marketing messages. In other words, exposure means consumers have the possibility of noticing the information. Zipping and zapping: ad blockers, paying for subscription (to avoid ads) Interrupted consumption: consumers dislike commercial breaks, commercial breaks actually improve the television-viewing experience by disrupting hedonic adaptation (getting used to/habituating to even the finest things in life) Interruptions (taking a break) can make pleasant experiences more enjoyable and unpleasant experiences more painful.
