Chapter 13-16 Flashcards
CHAPTER 13:
What is Hedonic criteria?
Hedonic value is emotional, symbolic and subjective attributes of the purchase.
Eg. A teenager’s emotional attachment to a gaming console is a hedonic criterion
CHAPTER 13:
What is Utilitarian criteria?
Utilitarian criteria is determined by the Functional or Economic aspects of the purchase.
Eg. The low cost of the gaming console is a utilitarian criterion
CHAPTER 13:
What is bounded rationality?
Bounded rationality means perfectly rational decision which are not made feasible.
Regardless of their level of intelligence and are forced to work under unavoidable constraints Eg. unreliable, information and capacity to evaluate.
Chapter 13:
What is consumer judgement and are the factors which consumer make judgement about?
Consumer judgement is the mental assessments of presence attributes as well as the benefits.
The factors which consumers make judgments about: Presence of features Feature levels Benefits associated with features Value associated with the benefit How objects differ from each other
Chapter 13:
Distinguish between compensatory and non-compensatory rules that guide consumer choice.
Compensatory rules:
Allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute
Non compensatory rules:
Strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration
Chapter 13:
What is the non-compensatory model?
Conjunctive Rule
Disjunctive Rule
Lexicographic Rule
Elimination-By-Aspect Rule (EBA)
Chapter 13:
What is Affect Based Evaluation and Attribute Based Evaluation?
Affect-based evaluation:
Evaluate products based on the overall feeling that is evoked by the alternative.
Attribute-based evaluation:
Evaluate alternatives across a set of attributes that are considered relevant to the purchase situation
Chapter 14:
What are the different goods?
Durable goods - Goods consumed over long periods of time. eg. a washing machine is an example of a durable good.
Non-durable goods - Goods consumed quickly eg. a cup cake is an example of a non-durable good.
Consumption frequency- How many times each is good is used or frequented.
Chapter 14:
What is satisfaction and dis-satisfaction?
Satisfaction:
A mild, positive emotional state resulting from a favorable appraisal of a consumption outcome.
Dissatisfaction:
A mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome.
Chapter 14:
What is cognitive dissonance? and the four conditions of cognitive dissonance
Lingering doubts about a decision that has already been made. Sometimes known as buyer’s regret.
Conditions include:
Consumer is aware that there are many attractive alternatives.
Decision is difficult to reverse
Decision is important and involves risk
Consumer has low self-confidence
Chapter 14:
What is the post consumption expectancy theory?
Expectancy / Dis-confirmation-
Predictive, Normative, Ideal
Equity- consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange
Attribution - Why a certain even occurred. Elements include:
Locus - Judgments of who is responsible for an event
Control - The extent to which an outcome was controllable
Stability - The likelihood that an event will occur again.
Chapter 15:
What is critical incident?
Critical incident is the exchanges between consumers and business that the consumer views as unusually negative
Chapter 15:
What us procedural justice?
Procedural justice is defined as the extent that consumers believe the processes involved in processing a transaction, performing a service or handling a complaint is fair.
Chapter 15:
What is complainant behavior? and what is the difference between a complainer and non complainer?
Complainant occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event
Complainers:
Tell others when the company performs poorly.
Potential valuable source of information.
More likely to become satisfied with company intervention.
More likely to return following exchange.
Non-Complainers
May tell friends/family about poor performance
Not as valuable to firm because they don’t complain.
Preemptive action must be taken to create satisfaction.
Chapter 15:
What are the implications of word of mouth?
Negative:
Takes place when consumers pass on negative information about a company from one to another.
Positive:
Occurs when a consumer spreads information from one to another about positive consumption experiences with companies.
Chapter 15:
What are switching costs?
using 3 examples
Switching costs refers to the times when a consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion.
The 3 types are:
Procedural
Involve lost time and effort
Financial
Consist of the total economic resources that must be spent or invested
Relational
Emotional and psychological consequences of changing from one brand/retailer/service provider to another
Chapter 15:
What is customer loyalty?
Customer Share
(Customer Inertia)
Inertia- A situation in which a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change
Commitment- A combination of high customer share and a strong feeling of attachment, dedication, and sense of identification with a brand.
True Loyalty requires customer commitment!
Chapter 16:
What is consumer misbehavior & how is it different to problem behavior? (provide examples)
Consumer misbehavior- Behavior that is unethical and potentially harm the self or others. eg. disrupt the exchange process and cause costs for all consumers to increase
Consumer Problem Behavior- Refers to behaviors that are seemingly outside of a consumer’s control.
eg- Compulsive shopping
Addiction to drugs and alcohol
Chapter 16:
What are marketing ethics?
Standards or moral codes of conduct to which a person, group, or organization adheres to
Chapter 16:
Term used to describe the activities of various groups to protect basic consumer rights
Term used to describe the activities of various groups to protect basic consumer rights
Chapte 16:
Different Categories of Products?
Pleasing products - Provide hedonic value to consumers but may be harmful in the long run eg. Energy drinks
Desirable products - Deliver high utilitarian and hedonic value and benefit consumers and society in the long run
eg. Pleasant weight-loss products
Chapter 16:
What is corporate social responsibility and how does it relate to societal marketing concept?
CSR is an organization’s activities and status related to its societal obligations
Ethical duties:Acting within expected ethical boundaries
Altruistic duties: Giving back to communities through philanthropic activities.
Strategic initiatives: Strategically engaging in socially responsible activities in order to increase the value of the firm
Societal Marketing Concept: When organisations considers not only the wants and needs of individual consumers, but also the needs of society.
Chapter 16:
What is puffery?
Puffery is a form of deceptive advertising whereby it omits information that is important in influencing a consumer’s buying behavior.
Puffery is making exaggerated claims about a product’s superiority.
Chapter 16:
What is manipulative techniques and provide examples?
Manipulative sales tactics are techniques used to focus on the immediate sale and short-term results.
Foot-in-the-door technique-
Door-in-the-face technique-
Even-a-penny-will-help technique-
