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Consumer Behavior > Exam #3 > Flashcards

Exam #3 Flashcards

1
Q

Deindividuation

A

Individual identities merge with a group.

For Example: We eat and drink as a group at a party.

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2
Q

Risky Shift

A

Group members are more willing to consider riskier alternatives during group activities.

Example: Drug usage increases in group settings.

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3
Q

Decision Polarization

A

After a group discusses an issue, opinions become more extreme.

Example: Escalation of commitment in group purchases.

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4
Q

Conformity

A

Individuals change their attitudes, beliefs, and behaviors.

Example: Influence of reference groups on purchases.

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5
Q

Informational conformity

A

Is when there is a change in opinions or behavior to conform to people whom we believe have accurate information

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6
Q

Normative conformity

A

Occurs when we express opinions or behave in ways that help us be accepted or keep us from being isolated or rejected by others

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7
Q

Reference Groups

A

Are a individual/group believed to have significant relevance upon an individual’s evaluations, aspirations, or behavior.

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8
Q

Reference Groups Influence is Strongest for what 3 product elements?

A
  1. Luxuries rather than necessities. Example: golfclubs.
  2. Socially conspicuous/visible to others.
  3. Public goods rather than private goods. Example: Watch, car vs. toothbrush, mattress
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9
Q

Social Power

A

Capacity to alter the actions of others.

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10
Q

2 Types of Reference Groups

A

Large, formal organization.

Small and informal groups: These groups usually exert a more powerful influence on individual consumers.

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11
Q

The 6 Types of Social Power

A
  1. Referent Power Oprah referring a book.
  2. Legitimate Power, the Police.
  3. Reward Power, Money.
  4. Coercive Power, Hitler.
  5. Expert Power, Doctor.
  6. Information Power, Professor or someone knowledgeable.
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12
Q

Milgram’s Obedience Experiment

A

Key Takeaway: People underestimate the power of social influence.

Participant shock other participants when they get the answer wrong, and were encouraged participants to keep on going by professor Milgram to shock the other participants even though they were in pain.

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13
Q

Brand Communities/ Consumer Tribes

A

A group of consumers who have social relationships based upon them using or being interested in a product.

Examples: Volkswagen beetle owners meet up with one another because they own the same car.

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14
Q

Brandfests

A

Events sponsored by a company that bring brand users together to enhance brand loyalty.

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15
Q

Membership Reference Groups

A

Advertisers use “ordinary people”

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16
Q

Aspirational reference groups

A

Marketers use people that consumers admire, so they use celebrity spokespeople.

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17
Q

Avoidance (negative) Groups

A

Motivation to distance oneself from other people/groups

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18
Q

Word-of-Mouth (WOM) Communication

A

Information transmitted by consumers.

Can be more reliable & creditable form of marketing.

Social pressure to conform.

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19
Q

Negative WOM & Power of Rumors

A

Extremely powerful, relates to Brand Sabotage

We love to spread bad news.

Wrong negative information – hard to correct
(Gilbert & Malone’s two-step process model)

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20
Q

Opinion Leaders

A

Influence others’ attitudes and behaviors.

Good information sources because they:
* May be experts
* Provide unbiased evaluation
* Are socially active
* Are similar to the consumer
* Are among the first to buy

Can be innovators/Early adopters on the Product life Cycle.

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21
Q

Market Maven

A

These people are actively involved in transmitting marketplace information of all types

Love to shop and highly aware what’s happening in the marketplace.

Have overall knowledge of how and where to get products, market information over a wide range of products and services.

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22
Q

Social Class

A

Is determined by income, family background, education, and occupation.

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23
Q

Social dominance theory (Sidanius & Pratto, 1999)

A

Some believe in a universal pecking order.

Social standing determines access to resources.
Examples: education, housing, consumer goods

Marketing strategies focus on the desire to “move up”.

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24
Q

Homogamy

A

When people tend to marry people in similar social classes.

25
Q

2 Components of Social Class

A
  1. Occupational prestige
  2. Income
26
Q

Occupational Prestige

A

Is stable over time and similar across cultures

Single best indicator of social class

Occupation à leisure time, allocation of family resources, political orientations, etc.

27
Q

Income

A

Wealth not distributed evenly across classes (top fifth controls 75% of all assets).

Income alone is often not a good indicator of social class.

28
Q

Predicting Capabilities between Income & Social Class

A

Social class is a better predictor of lower to moderately priced symbolic purchases (e.g., liquor, cigars, cosmetics).

Income is a better predictor of major nonstatus/nonsymbolic expenditures (e.g., major appliances).

Need both social class and income to predict expensive, symbolic products (e.g., cars, homes).

29
Q

Power and Willingness to Buy Status Products

A

After feeling a loss of power, consumers are more willing to pay for high status products, especially consumers who consider power as personal success, status, and achievement.

Power = Status, Personal achievement in vertical individualistic cultures (e.g., US).

30
Q

Impact of Class Consciousness

A

Impacts:

Attitude toward money.
How consumption choices reflect one’s social standing.

31
Q

Measuring Social Class in the U.S.

A

Education and income is used to measure status for segmentation purposes.

Class” is very subjective; it relates to self-identity as well as economic well-being.

32
Q

Class Structure in the United States

A

Upper Americans

Middle Americans

Lower Americans

33
Q

Social Mobility

A

Is when individuals go from one social class to another.

34
Q

Horizontal Mobility

A

Change jobs in same social class.

35
Q

Downward Mobility

A

When people have dropped at least one occupational class below their parents.

36
Q

Upward Mobility

A

When people go up in social class.

37
Q

Other Countries Class Structure

A

China: rise of middle class (mass class!)

Japan: status- & brand-conscious society

U.K.: rigid class structure still exists, but the dominance of its aristocracy is fading

India: caste system is also fading

38
Q

What Foreign Country is known for being status conscious.

A

Japan: status- & brand-conscious society

39
Q

3 Attitudes Toward Luxury

A
  1. Luxury as functional: buy good quality products that will last and have enduring value.
  2. Luxury as rewarding: luxury goods to say, “I’ve made it, I deserve it”.
  3. Luxury as indulgence: extremely lavish and self-indulgent.
40
Q

Low Class Behavior

A

Those in low (vs. middle) social class are less individualistic, independent, analytic.

41
Q

Parody Display

A

Parody display: deliberately avoiding status symbols, Imitation of less fortunate living.

Example: Ripped jeans

42
Q

Ethnic Subculture Societies

A

Relatively homogeneous societies – e.g., Japan

Very heterogeneous societies – e.g., U.S.A.

43
Q

Marketing for Racial Subcultures

A

Marketers cannot ignore the diversity of cultures.

Ethnic minorities have special needs.

44
Q

Racial Matching

A

Dembroski et al. (1978) – African American children were given persuasive messages about dental care. African American dentists were more persuasive than Caucasian dentists.

45
Q

Racial Matching Mechanism

A

Similarity/familiarity enhances liking and reduces threat.

46
Q

Liking of Source

A

Celebrities + Similarity

Magic Johnson and HIV
Meta-analysis results:

Knowledge of HIV increased
Attitudes towards people with HIV changed
Safer Behavior reported
HIV test visits at clinics increased

47
Q

Ethnicity and Marketing Strategies

A

Subcultural memberships shape people’s needs/wants

Minorities find an advertising spokesperson from their own group more trustworthy.

Affects level/type of media exposure, food/apparel preferences, political behavior, leisure activities, willingness to try new products.

48
Q

The “Big Three” American Subcultures

A
  1. African Americans
  2. Hispanic Americans
  3. Asian Americans

Seen as potential as a unique market segment.

49
Q

Largest American Subculture

A

Hispanic Population

50
Q

Fastest-growing Racial Subculture

A

Asian Americans are the fastest-growing racial group (due to immigration).

51
Q

African Americans Subculture

A

African American are not as homogeneous as many seem to believe (outgroup homogeneity effect).

Household income & educational levels are rising for African Americans.

Spending patterns are roughly similar to the whites, but subtle differences in consumption behaviors still exist and are important.

Example: P&G “My black is beautiful”

52
Q

Hispanic Americans “Sleeping giant market” Subculture

A

The word Hispanic = big umbrella term
Mexican (60%), Puerto Ricans, S. American, Cubans, Dominicans

Characteristics:
* Brand loyal
* Highly concentrated geographically (easy to reach)
* Large family size
* Young ones are bicultural and open to new experience
* Translation issues pose huge marketing problem

53
Q

Which Subculture is classified as Horizontal Collectivists?

A

Hispanic Americans

They see themselves as part of a group instead of an induvial.

54
Q

Asian Americans

A

Fastest-growing population group

Most affluent and best educated

Most likely to hold technology job and buy high-tech gadgets

Most brand-conscious but least brand loyal

Most concerned with keeping up appearances

Made up of culturally diverse subgroups that speak many different languages/dialects.

55
Q

Which culture is classified as Vertical Collectivists?

A

Asian Americans

See themselves as more individuals rather than a group.

56
Q

Ethnic and Racial Stereotypes

A

Assumptions about certain ethnic/racial traits, which can be either positive or negative.

57
Q

Ethnicity Complexity in the U.S.

A

Defining/targeting an ethnic group is not always so easy (“melting pot” society in USA).

Many identify with two or more races

Marketing implications for bicultural consumers.

58
Q

De-Ethnicization

A

Occurs when a product associated with a specific ethnic group detaches itself from its roots.

Example: bagels (origins?)

Consumer Behavior (3 decks)

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