Exam 1 Flashcards
Set of value-seeking activities that take place as people go about addressing their real needs.
Consumer behavior
Consumer behavior involves multiple psychological events like:
thinking, feeling, behaving
The entire consumer behavior process:
culminates in value
Process by which consumers use and transform goods, services, or ideas into values
consumption
involved interaction between the marketer and consumer
consumption
outcomes of this affect the consumer’s well-being and quality of life
consumption
What is the basic consumption process?
need - want - exchange - costs & benefits - reaction - value
A specific desire representing a way a consumer may go about addressing a recognized need
Want
acting out of the decision to give something up in return for something up in return for something perceived to be of greater value
exchange
negative results of consumption experiences
costs
positive results of consumption experiences
benefits
What is the science of studying how consumers seek value in an effort to address real needs?
Consumer behavior as a field of study
Consumer behavior as a field of study shares strong interdisciplinary bonds with:
economics, psychology, marketing, and anthropology
How are consumers treated?
- How competitive is the marketing environment?
- How dependent is the marketer on repeat business?
Firm orientations:
consumer, market, stakeholder, primary stakeholder, secondary stakeholder
Firm’s actions and decision making prioritize consumer value and satisfaction above all other concerns
consumer orientation
competition drives companies toward a high degree of:
consumer orientation
culture that embodies importance of creating value for customers among all employees
market orientation
firms recognize that more than just the buyer and seller are involved in the marketing process
stakeholder marketing
customers, employees, owners, supplier, and regulating agencies are
primary stakeholders
mass media, communities, and trade organizations
secondary stakeholders
activities based on the belief that the firm’s performance is enhanced through repeat business
relationship marketing
direct contacts between the firm and a consumer
touch points
phone, email, texting, online social networking, and face-to-face
channels of making contact
Why study Consumer Behavior?
- provides an input to business/marketing strategy
- provides a force that shapes the society
- provides an input to making responsible decisions as a consumer
plan wherein the same basic product is offered to all customers
Undifferentiated marketing
firms that serve multiple market segments, each with a unique product offering
differentiated marketing
plan wherein a firm specializes in serving one market segment with particularly unique demand characteristics
niche marketing
addresses questions about consumer behavior using numerical measurement and analysis tools; measurement is structured
quantitative research
data are not researcher dependent; enables researchers to better test hypotheses; doesn’t require deep interpretation
quantitative research
means gathering data in a relatively unstructured way; include case analysis, clinical interviews, and focus group interviews
qualitative research
geographical distance has become a nonissue to do the internet and online shopping; 24/7 access to purchasing almost any type of product
technology
households increasingly include two primary income providers; family size is decreasing throughout most of the Western culture
changing demographics
factors contributing to stagnant income: unemployment, limited prospects in the workforce, decreased opportunity to work at an acceptable wage; consumers are cautious about expenses and react favorably to price-cutting policies
changing economy
selling shares, international shopping, consumers as marketers, green and healthy, and easy over size
global consumer trends
Consumer behavior theory that illustrates factors that shape consumption-related behaviors and ultimately determine the value associated with consumption
Consumer value framework
Psychology of consumer; personality of consumer
internal influences
cognition and affect are part of:
psychology
the thinking or mental processes that go on as we process and store things that can become knowledge
cognition
refers to the feelings experienced during consumption activities or associated with specific objects.
affect
individual differences (include things like personality and lifestyles
personality
Social environment and situational influences
external influences
value derived from immediate gratification that comes from some activity; provided by the actual experience and emotions associated with consumption
hedonic value
end in and of itself rather than a means to and end; emotional and subjective in nature
hedonic value
gratification derived because something helps a consumer solve a problem or accomplish some task
utilitarian value
consumers provide a rational explanation for their purchases; value is provided because the object or activity allows something good to happen or be accomplished
utilitarian value
What is the value equation
value = what you get - what you give
way a company goes about creating value for customers; effectively developed and implemented when there is a complete understanding of the value consumers week
marketing strategy
way a firm is defined and sets its general goals
corporate strategy
way by which marketing management is implemented – involve price, promotion, product, and distribution decisions)
marketing tactics
company views itself in a product business rather than in a value- or benefits-producing business
marketing mytotal
total value proposition: basic benefits, the augmented product, and the feel benefits.; companies operate with the understanding that products provide value in multiple ways
total value concept
original product plus the extra things needed to increase the value from consumption
augmented product
realization that a consumer is necessary and must play a part in order to produce value; consumers add resources in the form of knowledge and skills to do their own part in the consumption process
value co-creation
separation of a market into groups based on the different demand curves associated with each group; requires marketing researchers to identify segments and describe its members
market segmentation
consumers do not view all competing product as identical to one another.
product differentiation
combination of product, pricing, promotion, and distribution strategies used to implement a marketing strategy.
marketing mix
identified segment or segments of a market that a company services
target market
reflects how sensitive a consumer is to changes in some product characteristic
elasticity
marketplace condition in which consumers do not view all competing products as identical to one another
product differentiation
way a product is perceived by a consumer
product positioning
tool used to depict graphically the positioning of competing products; helps identify competitors and opportunities for doing more business; diagnoses potential problems in the marketing mix; used in every competitive industry, including in the nonprofit sector
perceptual map
combination of product characteristics that provide the most value to an individual consumer or market segment
ideal points
positioning a firm far away from competitors’ positions so that it: creates an industry of its own, isolates itself from competitors
blue ocean strategy
approximate worth of a customer to a company in economic terms; overall profitability of an individual consumer
customer lifetime value
change in behavior resulting from interaction between a person and a stimulus
learning
consumer’s awareness and interpretation of reality; shapes learning and behavior
perception
Elements of consumer perception
exposure, attention, comprehension
bringing some stimulus within proximity of a consumer so that the consumer can sense it
exposure
consumer’s immediate response stimulus
sensation
purposeful allocation of information – processing capacity toward developing an understanding of a stimulus
attention
consumers attempt to derive meaning from information they receive
comprehension
consumer perception phases
sensing, organizing, reacting
immediate response to stimuli that have come into contact with one of the consumer’s five senses
sensing
process by which the human brain assembles sensory evidence into something recognizable
organizing
end of the perceptual process; occurs as a response to behavior and includes physical and mental responses to the stimuli encountered
reacting
nearly automatic reactions occur if object is successfully recognized. Can include both physical and mental responses to the stimuli encountered
organizational reactions
selective perception
exposure, attention, distortion
exposing oneself to certain stimuli and screening out the rest
exposure
paying attention to only certain stimuli
attention
interpreting of information in ways that are biased by previously held beliefs
distortion
way that the human brain deals with very low-strength stimuli
subliminal processing
once stimulus is stronger than another
JND - Just Noticeable Difference
consumer’s ability to detect differences between two levels of a stimulus decreases as the intensity of the initial stimulus increases
Weber’s Law
attempt to provide value for consumers
marketing implications
consumers do not perceive small difference in price as truly
pricing
small differences are not perceived as being different
quantity
Small improvements may not have an impact on consumers
quality
small additional purchase tacked onto a large purchase may not create the perception of increased spending
add-on purchases
small changes tend to go unnoticed
change in product design
smallest amount of change in a stimulus that would influence consumer consumption and choice
JMD - Just meaningful difference
consumers will prefer stimuli they have been previously exposed to over stimuli they have not seen before; pre-attentive and used by marketers to improve attitudes marginally
mere exposure effect
memory for things that a person did not try to remember; creates pre-attentive effects (learning that occurs without attention)
implicit memory
memory that develops when a person is exposed to, attends, and tries to remember information
explicit memory
transfer of meaning between objects that are similar only by accidental association; marketers make sure to avoid any potentially negative but unintended associations
mere association effect
intentional insertions of branded products within media content not otherwise seen as advertising.
product placement
Ways to enhance consumer attention:
intensity of stimuli, contrast, movement, surprising stimuli, size of stimuli, involvement
consumers tend to pay attention to stronger stimuli that to weaker stimuli
intensity of stimuli
marketers show consumers who stand out from the crowd as a means of capturing attention
contrast
flashing lights and “pointing” signage are effective tools used
movement
unexpected stimuli gain consumers’ attention
surprising stimuli
larger items garner more attention that smaller ones
size of stimuli
personal relevance a consumer feels towards a particular product
involvement
process by which consumers set out to specifically learn information devoted to a certain subject
intentional learning
occurs when behavior is modified through a consumer-stimulus interaction without any effortful allocation of cognitive processing capacity toward that stimulus.
unintentional learning
What are the learning theories?
classical conditioning, instrumental conditioning
change in behavior that occurs simply through associating some stimulus with another stimulus that naturally causes some reaction
classical conditioning
behavioral response can be conditioned through reinforcement
instrumental conditioning
desired behavior is altered over time, in small increments
shaping
decrease the likelihood that a behavior will persist
punishers
process through which behaviors cease due to lack of reinforcement
extinction
way people cognitively assign meaning to things they encounter, influenced by internal factors within the consumer, includes cognitive and affective elements
comprehension
what are the factors affecting comprehension
Characteristics of the message, message receiver, communication environment
tangible elements or the parts of a message that can be sensed (i.e. – intensity, color, font, numbers, spacing, shape)
physical characteristics
what are the physical characteristics of the message
physical, simplicity/complexity, message congruity, figure-ground distinction, type of language, message source
extent to which a message is internally consistent and fits surrounding information
message congruity
notion that each message can be separated into the focal point (figure) and the background (ground)
figure-ground distinction
What are the two types of languages for characteristics of the message
figurative and literal
use of expressions that send a nonliteral meaning; Used when describing brands that compete on hedonic value
figurative language
used when describing brands that compete on utilitarian value
literal language
Message sources for messages are:
likeability, attractiveness, expertise, trustworthiness, congruence
Characteristics of the message receiver
intelligence/ability, prior knowledge, involvement, familiarity/habituation, physical limits, expectations, brain dominance
beliefs about what will happen in some future situation
expectations
refers to the phenomenon of hemispheric lateralization
brain dominance
characteristics of the environment
information intensity, framing, message media, construal level theory, timing
amount of information available for a consumer to process within a given environment
information intensity
meaning of something is influenced by the information environment
framing
suggests that a decision can be framed in different ways and that the framing affects risk assessments consumers make
prospect theory
information environment can cause individuals to think about things in different ways
construal level theory
whether or not people are thinking about something using a concrete or an abstract mindset
construal level
views the memory process as utilizing three different storage areas within the human brain
multiple store approach to memory
area where a consumer stores encounters exposed to one of the five senses
sensory memory
storage of visual information as an exact representation of the scene
iconic storage
storage of auditory information in sensory memory
echoic storage
which memory is strong but weak in duration?
sensory memory
storage area where information is stored while being processed and encoded for later recall
workbench/working memory
process by which information is transferred from workbench memory to long-term memory for permanent storage
encoding
process by which information is transferred back into workbench memory for additional processing when needed
retrieval
which memory is limited in capacity, limited in duration, and where coding takes place
workbench/working memory
repository for all information that a person has encountered
long-term memory
type of coding wherein stimuli are converted to meaning that can be expressed verbally
semantic coding
mental path by which some thought becomes active
memory trace
way cognitive activation spreads from one concept to another
spreading activation
small piece of coded information that helps with the retrieval of knowledge
tag
unintentional but recurrent memory of long-ago events that are spontaneously triggered
rumination
which memory has unlimited capacity, unlimited duration, semantic meaning, and semantic/associative network?
long-term memory
How do mental processes affect learning?
repetition, dual coding, meaningful encoding, chunking
o thought is held in short-term memory by mentally repeating the thought
repetition
occurs when two different sensory traces are available to remember something
dual coding
association of active information in short-term memory with other information recalled from long-term memory
meaningful encoding
grouping stimuli by meaning so that multiple stimuli become a single memory unit
chunking
extend to which a consumer continues processing a message even after an initial understanding is achieved
elaboration
process by which people imagine themselves somehow associating with a stimulus that is being processed
personal elaboration
network of mental pathways linking knowledge within memory
associative networks
Declarative knowledge, nodes, paths
associative networks
cognitive components that represent facts
declarative knowledge
concepts found in an associative network
codes
representations of the association between nodes
paths
portion of an associative network that represents a specific entity and thereby provides it with meaning
schema
smaller part within one’s total associative network responsible for defining a marketing entity
brand schema
each time a consumer encounters a product, the mind compares all associations in the schema to see if the thought is correct
product schema
what are the two types of schema?
brand, product
concept within a schema that is the single best representative of some category
exemplar
Differs based on consumers’ unique experiences
exemplar
Provides consumers with a basis of comparison for judging whether something belongs to a category
exemplar
schema best representative of some category but that is not represented by an existing entity
prototype
schema representing an event
script
memory for past events in one’s life; Stores brands associated with positive events, which tend to be preferred by consumers
episodic memory
yearning to relive the past that can produce lingering emotions
nostalgia
cognitive representation that gives a specific type of person meaning; Can be based on person’s occupation, age, sex, ethnicity, religion, and product ownership
social schema
the idea that one’s individual identity is define in part by the social groups in which one belongs
social identity
