College 13

Question 1

consumer behavior

Answer 1

all activities associated with the purchase, use and disposal of goods and services, including the consumer’s emotional, mental and behavioral responses that precede or follow these acitivties

Question 2

The ABC of attitudes

Answer 2

Attitude= overall evaluation towards composting
- (A)ffective = feelings & emotions
- (B)ehavioural = past & future activity
- (C)ognitive = thoughts and beliefs

Question 3

The elaboration Likelihood Model (ELM)

Answer 3

Presents two routes to persuasion; the central route and the peripheral route.

Question 4

principles of influence: Reciprocity

Answer 4

people feel obliged to return favors

Question 5

principles of influence: consistency

Answer 5

people want to be consistent

Question 6

principles of influence: social proof

Answer 6

people look to others for information

Question 7

principles of influence: liking/sympathy

Answer 7

people agree with people they like

Question 8

principles of influence: authority

Answer 8

people follow the opinion of authorities

Question 9

principles of influence: scarity

Answer 9

people want things that are less available or exlusive

Question 10

principles of influence: unity

Answer 10

people value being part of a group

Question 11

Reciprocity: the door in the face technique

Answer 11

is a persuasive strategy that involves making a large, unreasonable request first, followed by a smaller, more acceptable one. The idea is that the contrast between the two requests makes the second one seem more reasonable and appealing, increasing the likelihood of compliance

Question 12

peripheral cue

Answer 12

an attractive desirable associate to a product (celebrities can be seen as peripheral cue)

Question 13

central cue

Answer 13

as an expert in the area of a product

Question 14

product involvement

Answer 14

the perceived relevance of a product class based on the consumer’s inherent needs, interest and values during the purchase process

Question 15

ulitarian consumption

Answer 15

‘rational’ consumption: consumption based on instrumentality (power efficiency)
> examplary ulitarian goods: vacuum cleaner, oven/stove, etc

Question 16

hedonic consumption

Answer 16

consumption tied to experiential aspects of a product (fun, prestige, etc)
> examplary hedonic goods: sport cars, luxury apparel

Question 17

endowment effect

Answer 17

goods that you own are subjectively higher than goods that you don’t own
> seller estimates a higher value they are willing to sell for then the buyer who doesn’t own the product and has to determine a price they want to buy it for

Question 18

decoy effect

Answer 18

based on the idea of asymmetrical dominance
- when we are choosing between two alternatives, the addition of a third, less attractive option (the decoy) can influence our perception of the original two choices.

Question 19

compromise effect

Answer 19

when a product becomes a compromise product or intermediate product, its possibility of selection will rise
> This is actually what restaurants do: increase the price of the most
expensive wine by a lot, and that of the second-most expensive wine a little
> make a bad deal seem more attractive

Question 20

temporal discounting

Answer 20

people discount rewards that are far in the future
> and therefore value (even potentially objectively smaller) rewards in the near future more highly