Consumer Behavior exam Flashcards

Terms Definitions
Share of Wallet
Customer share
Geographic
market is divided by location
Goals
Sought-after results of motivated behavior.
Reinforcement
increases the likelihood that a specific response will occur in the future as the result of particular cues or stim
status symbols
markers of one's social class
Consumer Misbehavior
Behavior that violates generally accepted norms of conduct
Motivation
Explained by Maslow's Hierarchy of Needs
Extrinsic Cues
Characteristics that are associated with the product but are not physically part of the product
Ernest Dichter
Viennese psychoanalyst who used Freudian techniques to uncover consumers' hidden motivations. Founded motivational research - qualitative.
refrence group
group whose presumed perspectives or values are being used by an individual as the basis for their behavior
Positioning
Development of a distinct product or service in the mind of the consumer and image that will differentiate the offer from competing ones
norms
rules dictating what is good or bad/acceptable or not
Antiloyal Consumers
Consumers who will do everything possible to avoid doing business with a particular marketer
Consumerism
activities of various groups to voice concern for, and to protect, basic consumer rights
Stimulus Discrimination
A learned ability to differentiate among simliar products
Perception
the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world
likert scales
most popular attitude scales (strongly agree----strongly disagree)
Innate Needs
Physiological needs for food, water, air, clothing, shelter, and sex. A.K.A. Biogenic/primary needs.
Benefit Segmentation
based on the kinds of benefits consumers seek in a product
COnsumer confidence
The extent to which consumers are confident about the future health of the economy---affects ammount of discretionary spending
Ethics
Standards or moral codes of conduct to which a person group, or organization adheres
Selective Perception
Selective perception may refer to any number of cognitive biases in psychology related to the way expectations affect perception
Changing Attitudes
1. Change beliefs about a brand's attributes a. Change neutral, negative, or incorrect beliefs into positive ones.2. Change the importance of beliefs. a. Green marketing, new qualities, etc..3. Add new beliefs about a product. a. Transforming attitudes
Quantitative Research
findings can be generalized to larger populations
Services have 5 dimensions of quality
tangibles. reliability. responsiveness. assurance. empathy (ex. people skills)
Substitute Goal
Goal that replaces a person's primary goal when that goal can't be achieved.
brand alliance
when two brands appear on a single product (ex: Baileys Haagen Daaz Ice Cream)
Perceptual Organization Grouping
* Individuals tend to group stimuli so that they form a unified picture or impression. The perception of stimuli as groups of information, rather than as discrete bits of information, facilitates their memory and recall. * Schema is the organized collection of beliefs and feelings
refutational argument
a minor negative issue is raised and then dismissed
Brand Image
A set of beliefs about a particular brand (Shapes Attitudes toward a product).
Reference groups
people to whom an individual looks as a basis for self-appraisal or as a source of personal standards
perception of physical goods cues
intrinsic cues. extrinsic cues.
Marketing Strategy, WOM and Opinion leadership
Retailing and Personal Selling
- encourage customer to pass information along to potential new customers for rewards in referal program
ABC Model of attitudes
A- Affect- The feelings about an Attitude ObjectB- Behavior- The intended behavior one tends to act outC- Cognition- The beleifs one forms about an A.O
Fundamental idea of consumer behavior
consumers do not buy products, consumers really buy the benefits of products
if consumers do not have prior knowledge suffuicient prior knowledge, what should a company do?
they should develop educational messages as a first step
3 stages of gift giving
gestation- giver is motivated by an event to procure a giftpresentation- the exchange takes placereformulation- the relationship between the giver and the recipient is adjusted
What is the underlying motivation of purchasing a Hummer, according to Dr. Rapaille?
The underlying motivation of purchasing a Hummer is the need to exert/demonstrate domination, due to the fact that the "mental code" for SUVS is domination, according to Dr. Rapaille.
CS is interdisciplinary
# Input Stage: * influences the consumer’s recognition of a product need and consists of two major sources of information: the firm’s effort and external influences# Process Stage: * Focuses on how consumers make decisions# Output Stage * Purchase behavior and Postpurchase behavior
attention has what three characteristics?
it is selective it is capable of being dividedit is limited
Buyer's Thought Processes (Black Box)
What goes on in the mind of the consumer is influence by:1. Degree of involvement2. The decision process3. Cultural, Social, Individual, and Psychological FactorsManagers cannot control nor see these.
Who do you think Dr. Rapaille was influenced by?
I believe that Dr. Rapaille was influenced by Sigmund Freud, as evidenced by Dr. Rapaille's belief that consumers are motivated by primal urges, with reptilian hot buttons that lead us to actions. Dr. Rapaille believes that we don't even understand why we do things - that our first understandings of things create subconscious impressions, mental highways/codes in the brain. Dr. Rapaille also believes that many of our actions and desires are sexually-motivated/sexual in origin, similar to Freud.
Brand Communities
non-geographically bound community, based on a sturctured set of social reslationships among owners of a brand and the psychological relationship they have with the brand its self.       -adds value to product and builds intense loyalty       -most relevant for high involvement, activity based products, with a high degree of uniqueness to the brand itself
      - To foster a brand community a company must est. a relationship w/ owner and help owners est. relationships w/each other
       -Brand Fests- gatherings of owners and others for the purpose of interacting with one another in the context of learning and using the brand
Family
Responsible for the Socialization Process. There are varied roles in family decision making:1. Initiators: Plant the seed for purchase process2. Influencers: Whose opinions are valued3. Decision Maker: Who makes decision to buy/not buy4. Purchaser: Buys Product5. Consumer: Uses Product
Identification
person has internalized the groups values and norms, These guid their behavior without any thought of reference groups sanctions
Baby boomers
biggest market, wealthiest-as teens, they created a revolution in style, politics, and consumer attitudes-often feather their nests- but alto of household funishings
Culture
The accumulation of shared meanings, norms, rituals, and traditions among members of a society or organization
Maslow's hierarchy
Physiological --> Safety --> Belonging --> Esteem --> Self-Actualization
Purchase
Based upon information received and the buyer's decision rules a final decision to buy or not to buy is made.
dogmatism
continuing to believe in something that facts have proved wrong
characteristics of long term memory
eposodic/autobiographica;knowledge we have about our own personal experiencessematic: general knowledge
Mechanical Observational
Electronic device to record customer response or behavior to marketing stimulus
resistence
resenting the pressure to conform to mainstream culture
feedback
reactions by recievers used to modify aspects of the message
Compulsive Buying
Chronic, repetitive purchasing that is a response to negative events or feelings
Brand Loyalty
a favorable attitude toward and consistent purchase of a
custom marketing
create a product for each customer
Organizational vs. Personal Consumer
Business (organizational) versus personal use - organizational consumers are businesses/government agencies/other institutions that purchase goods, services, or equipment needed for their organizations to function. Personal consumers are individuals who buy goods/services for their own use or household/family/friends.
time risk
unertainties over the length of time consumers must invest in buying, using, or disposing an offering
projected techniques
designed to tap the underling motives of individuals
Acculturation process
Movement- the factors taht cause an individual to uproot themselves and move to another placeTranslation- attempting to master a set of rules for operating in the new environmentAdaptation- where new consumption patterns are formed
transformational advertising
consumer associates the use of a product with some subjective sensation
Consumption Frequency
Number of times a product is consumed
Selective Distortion
A process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs.
Purchase Decision
maximizing value – What are some ways to “tilt the odds in your favor?”
4 types of segmenting strategies
Concentrated Marketing, Differentiated Marketing, Mass Marketing, Custom Marketing
Trio of Needs
Power (desire to control environment), Affiliation (need for friendship, belonging, acceptance), Achievement (need for personal accomplishment; closely related to egoistic and self-actualization needs).
physical risk
the extent to which buying an offering is percieved to have the potential to create physical harm or harm one's safety
Selective Exposure
* consumers seek out ads they like
percieved age
how old one feels(feel age vs. look age)
Cause Related Marketing (CRM)
marketing that
ties a company and its products to an issue or cause with the goal of improving
sales or corporate image while providing benefits to the cause.
Extensive Decision Making
The most complex type of consumer decision making, used when buying and unfamiliar, expensive, or infrequently bought item; Requires use of several criteria for evaluating options and much time for seeking information. (See High Involvement Purchases)
Two models of motivation
Maslow's heiarchy of needs (lowest level of unmet needs motivates behavior), mcClellands theory of learned needs
short-term memmory characteristics
limited: we only can hold a certain number of things at one timeshort-lived: unless we acitvely try to rmemeber that info, we will forget it
older consumers values (3)
1. Autonomy- want to live self sufficient, active lives2. COnnectedenss- value friends and family3. Altruism- want to give something back to the world
Purchase Involvement
The amount of time and effort a buyer spends in the search, evaluation, anddecision processes of consumer behavior.1. Low Involvement Purchases2. High Involvement Purchases
Motivational Strength
Degree to which a person is willing to expend energy to reach one goal as opposed to another.
3. Recognition and recall relate to advertising effectiveness
: marketers should use message strategies that encourage consumers to think about the brand and product – a process that enhances recall at the moment when choices are actually being made; implicit memory also important to marketers – suggests that consumers may have some memory of info in an advertising message even if they do not recognize or recall it.
semiotic approach to social class
focuses on different types of codes (the way meanings are expressed and interpreted by consumers) used within different social strata--allow marketers to communicate well with different groups
Q: when a firm uses 2 methods of segmenting a market
A. Hybrid segmentation
When DO marketers want consumers to notice a differential threshold?
when marketers want consumers to notice an improvement in their product. (example, McDonald's made their with burgers 25% more meat and hoped people noticed....aka got fatter)
What are three ways marketers can help develop and reinforce long-term schemas
!) use multiple brand extensions (Arm&Hammer reinforced its power to deoderize with kitty litter)2. link product to sponsor of appropriate sport, or celeb3. highlight additional features and benefits. (now everything is eco-friendly)
what precautions should marketers take when using smell to promote a product?>
some may find the scent in a retail environment annoying (abercrombie) and pleasant smells are different to different cultures.
open ended vs. close ended scales
q and a given as choices vs. q given with no choices- people say what they want
Generation Y
1977-1994
FTC
Federal Trade Commission
 
Responsible for protecting businesses and consumers from deceptive advertising
source creditability
trustworthiness and expertise
Id:
Oriented toward immediate gratificationThe id is selfish, illogical, and ignores consequenceshedonic
consumer behavior
ongoing process; exchange; utilitarian/hedonicthe study of the processes involved when individuals or groups Select, Purchase, Use, or Dispose ofProducts-Services-Ideas-or-Experiencesto satisfy Needs & Desires
complexity
 the innovation's level of difficulty to understand and use
Make Stimuli
Personally Relevant, Pleasant, Surprising, Easy to Process
expectancy disconfirmation model
-->illustrates the alternative strategies a firm can chose when customer is dissatisfied--targets customers' dissatisfaction zonesa) accommodation --> improving the range or quality of products offeredb) alteration --> under-promising (ex: Xerox service rep.)c) abandonment --> if customers' needs not feasible to meet
• Consumer ethnocentrism
individual difference in consumers’ propensity to be biased against the purchase of foreign products
Anticonsumption
the actions taken by consumers involving the deliberate defacement or mutilation of products
Persuasion
an active attempt to change attitudes
Lead Users
involved, experienced customers who are very knowledgeable about the field
strategies to change consumer's beliefs
competitors
use/application
product attributes
celebrity/person
realtive price
product class/category
intangibles
lifestyle/personality
customer benefits
Moods
transient feeling states that are generally not tied to a specific event or object; tend to be less intense than emotions and may operate without the individual's awareness
Gerontographics
one segmentation approach to the mature market that incorporates aging processes and life events related to the physical health and mental outlook of older consumers
Role Identities:
Different components of the self
Field Observation
takes place within a natural enviornment, is performed sometimes without the subject's awareness, and it focuses on observation of behavior
Describe the marketer vs. consumer perspective difference in Point of View
Marketer=external ("buyers")
 
Customer=internal ("me")
Evoked Set
the specific brands a consumer considers in making a purchase choice in a particular product category
Why study consumer behavior?
 
Marketing= understand consumer's needs/wants - deliver satisfaction better than competitor
 
types of consumer involvement
1. product involvement2. message-response involvement (when the consumer is so involved with the product that they, freelancers or fans, process marketing communications3. purchase-situation involement (differences in motivation when ppl buy the same product but in different contexts)
Negative Reinforcement
the process whereby the environment weakens responses to stimuli so that inappropriate behavior is avoided
Spokescharacters
the use of animated characters or fictional mascots as product representatives
Shopping Orientation
a consumer's general attitudes about motivations regarding the act of shopping
Reciprocity Norm
a culturally learned obligation to return the gesture of a gift with one of equal value
associative network
system of beliefs organized in memory
 
-(information is organized in memory in terms of this)
quality market
consumers in the lower-upper and upper-middle classes constitute this
Celebrity Credibility
the audience’s perception of the endorser’s expertise and trustworthiness
Bounded Rationality
a limited capacity for processing information
Customer Value
the difference between all the benefits derived from a total product and all the costs of acquiring those benefits
Permission-Based Marketing
the voluntary and self-elected nature of such online offerings, where consumers "opt in" to receive e-mail based promotions; enhancing mobile marketing on cell phones
Trait Theory:
An approach to personality that focuses on the quantitative measurement of personality traits
shaping
a desired behavior that may be learned over a period of time, as intermediate actions are rewarded in a process. i.e. over of a new store may award prizes to shoppers just for coming in, hoping over time they will continue to drop in and eventually buy something
Consumer Behavior is important to consumers, marketers, and public policy makers for what reasons?
consumers: better choices/decisions
 
marketers: better marketing strategies
 
Public Policy makers: better establishment of public policy-market efficiency and fairness
Consumer Socialization
the process, started in childhood by which an individual learns the skills and attitudes relevant to consumer purchase behavior
halo effect
tendency to assume that if something is good on one attribute then it is good on all others
Hispanic American consumers
The largest American minority group, representing about 14% of the U.S. population. The three largest groups are Mexicans, Puerto Ricans, and Cubans. Typically like established brands and slowly adopt American non-ethnic food
Household
according to the US census bureau an occupied housing unit
Behavioral Learning Theories
the perspectives on learning that assume that learning takes place as the result of responses to external events
Affect
the way a consumer feels about an attitude objects
Store Image
a store's personality composed of such attributes as location, merchandise sustainability, and the knowledge and congeniality of the sales staff
Fortress Brands
brands that consumers closely link to rituals; this makes it unlikely they will be replaced
What are fan motives for attendance?
-Self esteem enhancement
-Entertainment and diversion
-Aesthetic value
-Need for affiliation
class consciousness
sense of belonging to a particular class
right to safety
- the Consumer Product Safety Commission (CPSC) protects the consumer's ____ __ _____
 
- the FTC regualtes advertsiing claism realted to product safety
 
- the Traffic Safety Administration (TSA) ensures that automobile manufacturers adhere to safety stanards and remedy safety defects
 
- the FDA oversees safety issues in food and drug-related products
Shopping Group
two or more people who shop together
Disjunctive Decision Rule
establishes a minimum level of performance for each important attribute (often a fairly high level); making the criteria either or; sets minimum for several attributes
Generation/Age Cohort
a group of persons who have experienced a common social, political, historical, and economic environment; produce unique shared values and behaviors, often function as unique market segments
Maintenance Rehearsal
the short-lived nature of STM means that consumers must constantly refresh information through this or it will be lost; the continual repetition of a piece of information in order to hold it in current memory for use in problem solving or transferal to long-term memory
index
a sign that is connected to a product because they share some property. i.e: the pinetree on Spic and Span means fresh scent
Direct Marketing vs. Direct Mail
o Direct marketing: a marketing technique that uses various media (mail, print, broadcast, etc) to solicit a direct response from a consumer. Also known as database marketing. o Direct mail: advertising that is sent directly to the mailing address of a targeted consumer
price quality heuristic
ppl assume that higher proces goods are higher quality (not always true)
Web 2.0
rebirth of the internet as a social, interactive medium from its original roots as a form of one-way transmission from producers to consumers
Video Blogging
posting video diaries on sites such as youtube or photos on flikr
Social Power
the capacity of one person to alter the actions of outcome of another
What is the initiator consumption role?
Brings up purchase need
culture is environmentally dependent
cultures are influenced by the geographic locations in which they exist and the natural resources they posses
Massed vs. Distributed Learning
compressing the learning schedule into a short time span to accelerate consumer learning vs. learning spaced over a period of time to increase consumer retention
Situational Influence
all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior
Behavioral Component
one's tendency to respond in a certain manner toward an object or activity; ex: a series of decisions to purchase or not purchase Diet Coke
figure-groud principle (Gestalt)
one part of a stimulus will dominate (the figure), and other parts reced into the background (the ground)
low effort decision making processess
use simplified strategy (brand loyalty and multibrand loyalty)
Theory of Reasoned Action
an updated version of the fishbein multiattribute attitude theory that considers factors such as social pressure and attitude toward the act of buying rather than simply attitudes toward the product itself



What are three perceptual filters?
perceptual vigilance- we notice what we are looking for (see tv ads if a tv is needed)
perceptual defense- people see what they want to see and don't see what we don't want to see (non smoking ads to smokers)
Adaption- when consumers no longer pay attention to a stimulus because its too often repeated
Informal group
- group in which there are no special membership or attendance requirements other than common interest* Walking club, reading group
Primary Sources of Information
1) Memory of past searches, personal experiences, & low-involvement learning
2) Personal Sources such as family, friends, etc
3) Independent Sources magazines, consumer groups, & government agencies
4) Marketing Sources sales personnel, web sites, advertising
5) Experiential Sources inspection or product trial
Attitude Toward the Ad Model
model that proposes that a consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure to an advertisement, which, in turn, affect the consumers attitude toward the ad and beliefs and attitudes toward the brand
Attitude Toward the Act of Buying
the perceived consequences of a purchase
influence of family on socialization
- an important aspect of socialization is the learning role behavior through family interaction- family influence in socialization carries over to product choices made by children as they grow up
what factors go into the shopping experience, ultimately influencing the purchasing decision
1. antecedent states: emotions, moods, reasons for shopping / shopping orientation (utilitarian, personal, economical)2. retail or theatre? a job or adventure? -->social & physical surroundings (co-customers; crowding)-->atmospherics, role of sales people, p.o.p. stimuli -- effectiveness-->temporal factors; pleasure & arousal3. post-purchase process-->satisfaction, delight, dissatisfaction; managing customer expectations & quality control; acting on dissatisfaction; disposal options



What is social loafing?
when you don't devote as much time to something because you are doing it as part of a group
What are role-related product clusters?
A set of products needed to fulfill a given role
how do markets use the sunk cost effect?
get ppl to make a # of small & easy commitments....when they try to pull out, remind them of the total commmitment they have already made
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