4 - Lecture Unit

Question 1

What do demographics describe?

Answer 1

A population’s size, distribution, and structure.

Question 2

Why are demographics important for marketers?

Answer 2

They help in market segmentation and understanding consumption behavior.

Question 3

What are key demographic variables?

Answer 3

Income, education, occupation, age.

Question 4

What is the ‘Class to Mass’ strategy?

Answer 4

Enabling less affluent consumers to afford luxury.

Question 5

How is occupation linked to consumption?

Answer 5

It influences status, income, values, and lifestyle.

Question 6

How does education affect consumer behavior?

Answer 6

It influences income, occupation, decision-making, and social relationships.

Question 7

What is a generation (or age cohort)?

Answer 7

A group that experienced similar historical/social conditions.

Question 8

What is cohort analysis?

Answer 8

Predicting values and behaviors of different generations.

Question 9

Who are Baby Boomers?

Answer 9

Born 1945-1964, high education/income, tech-savvy, time-constrained.

Question 10

Who is Generation X?

Answer 10

Born 1965-1976, independent, experienced economic difficulties.

Question 11

Who is Generation Y (Millennials)?

Answer 11

Born 1977-1994, diverse, tech-savvy, values autonomy.

Question 12

Who is Generation Z?

Answer 12

Born 1995-2009, educated, civic-minded, values diversity.

Question 13

What is social stratification?

Answer 13

Ranking individuals in society based on socio-economic status.

Question 14

What defines social class?

Answer 14

Relative position in society based on income, education, occupation.

Question 15

What is the Coleman & Rainwater model?

Answer 15

A social class categorization system.

Question 16

What are status continua?

Answer 16

Gradual distinctions in class rather than distinct categories.

Question 17

What are single-item indexes?

Answer 17

Measure status using one dimension (e.g. income).

Question 18

What are multi-item indexes?

Answer 18

Measure status using multiple variables (e.g. ISP Index).

Question 19

What is a reference group?

Answer 19

Group whose values influence an individual’s behavior.

Question 20

What are the four group classification criteria?

Answer 20

Membership, social tie strength, contact type, attraction.

Question 21

What is a consumption subculture?

Answer 21

Group self-selected around shared consumption values.

Question 22

What are traits of consumption subcultures?

Answer 22

Shared values, hierarchy, jargon, symbolic rituals.

Question 23

What is a brand community?

Answer 23

A group with social ties formed around brand ownership.

Question 24

What is an online community?

Answer 24

Group interaction around shared interest on digital platforms.

Question 25

What defines a social networking site?

Answer 25

Profile creation, connection listing, browsing others' networks.

Question 26

Why are social networks important for marketers?

Answer 26

High user engagement and WOM potential.

Question 27

What is informational influence?

Answer 27

Using others’ opinions as a source of information.

Question 28

What is normative influence?

Answer 28

Conforming to gain reward or avoid sanctions.

Question 29

What is identification influence?

Answer 29

Internalizing group norms and values.

Question 30

What is WOM (word-of-mouth)?

Answer 30

Informal sharing of product info among consumers.

Question 31

Why is WOM influential?

Answer 31

It is trusted more than advertisements.

Question 32

What is negative WOM?

Answer 32

Emotionally charged complaints that can influence behavior.

Question 33

What is an opinion leader?

Answer 33

A person who filters and disseminates product information.

Question 34

What is the two-step flow of communication?

Answer 34

Information flows from media to opinion leaders to others.

Question 35

What is the multistep flow of communication?

Answer 35

Opinion leaders also interact with other opinion leaders and groups.

Question 36

What are traits of opinion leaders?

Answer 36

Involved, sociable, informed, product-specific.

Question 37

What is a market maven?

Answer 37

A generalized expert who shares wide-ranging market information.

Question 38

How can advertising stimulate WOM?

Answer 38

By encouraging discussion and simulating leadership.

Question 39

What is product sampling (seeding)?

Answer 39

Giving samples to consumers to generate WOM.

Question 40

What is buzz marketing?

Answer 40

Rapid WOM spread using nontraditional marketing.

Question 41

What are referral reward programs?

Answer 41

Programs that reward sharing brand info with others.

Question 42

What is guerilla marketing?

Answer 42

Unconventional low-budget marketing to create buzz.

Question 43

What is an innovation?

Answer 43

A perceived new idea, product, or practice.

Question 44

What are the types of innovation?

Answer 44

Continuous, dynamically continuous, discontinuous.

Question 45

What is a continuous innovation?

Answer 45

Minor or insignificant behavior changes.

Question 46

What is a dynamically continuous innovation?

Answer 46

Moderate or significant change in minor behavior.

Question 47

What is a discontinuous innovation?

Answer 47

Major changes in important consumer behavior.

Question 48

What is the diffusion process?

Answer 48

How innovations spread through a market.

Question 49

What does the diffusion curve look like?

Answer 49

Bell-shaped curve: slow, fast, then slow adoption.

Question 50

Who are innovators?

Answer 50

First 2.5%, risk-takers, young, educated.

Question 51

Who are early adopters?

Answer 51

Next 13.5%, opinion leaders, cautious risk-takers.

Question 52

Who are early majority?

Answer 52

Next 34%, deliberate, socially active.

Question 53

Who are late majority?

Answer 53

Next 34%, skeptical, influenced by peers.

Question 54

Who are laggards?

Answer 54

Last 16%, traditional, limited social interaction.

Question 55

What factors affect diffusion speed?

Answer 55

Group type, decision type, marketing, need fulfillment.

Question 56

What is compatibility?

Answer 56

Fit with consumer values increases diffusion.

Question 57

What is relative advantage?

Answer 57

Perceived benefits over existing solutions.

Question 58

What is complexity?

Answer 58

More complex = slower diffusion.

Question 59

What is observability?

Answer 59

Visible benefits = faster adoption.

Question 60

What is trialability?

Answer 60

Ease of trying = faster diffusion.

Question 61

What is perceived risk?

Answer 61

Higher risk = slower diffusion.