Final Flashcards
innovation that has limited effect on existing consumption patterns
continuous innovation
innovation that has a pronounced effect on consumption practice and often involves a new technology
dynamically continuous innovation
offering that is so new that we have never known anything like it before
discontinuous innovation
new product, service, attribute, or idea that has utilitarian benefits that are different from or better than those of alternatives
functional innovation, hybrid cars
innovation that appeals to our aesthetic, pleasure seeking, and or sensory needs
hedonic or aesthetic innovation, new music
product, service, or attribute, or idea that has new social meaning
symbolic innovation, new clothes
actively involving consumers in creating value through participation in new product development, among other marketing activities
cocreation
purchase of innovation by an individual consumer or household
adoption
desire not to buy the innovation , even in the face of pressure to do so
resistance
purchase of an innovation based on considerable decision making effort
high effort hierarchy of effects
percentage of population that has adopted an innovation at a specific point in time
diffusion
diffusion curve characterized by slow initial growth followed by rapid increase in diffusion
s-shaped diffusion curve
diffusion curve characterized by rapid initial growth
exponential diffusion curve
conecpt that suggests that products go through an initial intro period followed by periods of sales growth, maturity, and decline
product life cycle
successful innovation that has a very short life cycle
fad
successful innovation that has a moderately long life cycle and potentially cyclical product life cycle
fashion
successful innovation that has a lengthy product life cycle
classic
benefits in an innovation superior to those found in existing products
relative advantage
finding use for a product that differs from products original intended use
use innovativeness
extent to which an innovation is consistent with ones needs, values, norms, or behaviors
compatibility
extent to which an innovation can be tried on limited basis before adoption
trialability
extent to which innovation is complicated and difficult to understand or use
complexity
extent to which an innovation can be observed or to which having others observe it has social cachet
social relevance
extent to which innovation follows established guidelines for what seems appropriate in the category
legitimacy
extent to which innovation can foster new styles
adaptability
extent to which consumers in the social system have positive attitudes towards change
modernity
3 characteristics of innovations
degree of novelty, benefits offered, breadth
high effort adoption
when consumers see risks, when innovation is discontinuous, many people involved in decision, form attitudes before trial
high risk tolerance, high social status, financial liquidity
innovators 2.5%
highest degree of opinion leadership, high social status, use judicious choice of adoption to help maintain central communication position
early adopters 13.5%
adopt after significantly longer period of time, above avg social status, contact w early adoptors
majority adopters 34%
adopt innovation after average participant, approach innovation with high degree of skepticism, little opinion leadership
late majority 34%
last to adopt, little to no opinion leadership, tend to focus on traditions
laggards 16%
diffusion shape associated with risk
s shaped
diffusion rate associated with little risk and switching cost is low
exponential
product life cycle
intro, growth (competitors enter, consumers adopt), maturity (weak competitors forced out, sales plateau), decline (acceptance wanes)
higher perceived value, relative advantage, innovative, lower costs, lower risks
more likely to be adopted
social relevance
observability, social value, legitimacy, adaptability
social system diffusion characteristics
modernity, homophily (faster when consumers similar to each other), physical distance, opinion leadership
natural grouping of objects that reflect our culture
cultural categories
ideas or values that specify how aspects of our culture are organized and/or how they should be perceived or evaluated
cultural principles
use of products to symbolize membership in social groups
emblematic function
use of products as symbols to help feel more comfortable in new role
role acquisition fuction
feedback from others that tells us whether we are fulfilling the role correctly
reflexive evaluaiton
use of products as symbols of our personal connections to significant people, events, or experiences
connectedness function
use of products as symbols to demonstrate our uniqueness
expressiveness function
set of multiple salient identities that reflects our self-concept
actual identity schema
set of ideas about how the identity would be indicated in its ideal form
ideal identity schema
stimulated by language cues, a consumer who identifies with more than one culture will activate the aspects of his or her self-concept that relates to that languages cultural backgroudn
frame switching
ritual we engage in when first acquire product that helps make it ours
possession ritual
ritual we engage in to bring out or maintain the best in special products
grooming ritual
ritual enacted at the disposition stage designed to wipe away all traces of our personal meaning with product
divestment ritual
people things and places that are set apart, revered, worshipped, and treated with great respect
sacred entities
things that are ordinary and hence have no special power
profane things
first stage of gift giving, when consider what to give someone
gestation stage
second stage of gift giving, when actually give the gift
presentation stage
final stage of gift giving, when reevaluate relationship based on gift giving experience
reformulation stage
consumption functions
emblematic, role acquisition, connectedness, expressiveness
emblematic function relates to groups of
geographic, ethnic, social class, gender, reference group
phases of role acquisition
separation with role leaving, transition to new identities and products, incorporation of new role and identity
common transitions
marital, cultural, social status
types of special possessions
brands, pets, memory laden, achievement symbols, collections
characteristics of special possessions
not sold at market value, few/no subs, not discarded, not always used for original purpose, evoke powerful emotions, frequently personified
special products have:
symbolic value, mood altering properties, instrumental importance
sacred entities characteristics
involve mystery/myth, strong approach/avoidance, feeling of power, scarcity/exclusivity
gestation stage
motives and emotions for giving, appropriateness and meaning, value, amt time spent searching
presentation stage
ceremony, timing/surprise, attention to recipient, recipient reaction
reformulation stage
relationship bonding, reciprocation
offering perceived as new by consumers within market segment and that has an effect on existing consumption patterns
innovation
deciding whether to put self-interest or the interests of others first
social dilemma
deciding whether to put immediate interests or long-term interests first
temporal dilemma
rules of acceptable conduct that guide individuals and organizations in making honest, fair, and respectful decisions about marketing activities
marketing ethics
rules of acceptable conduct that apply to the range of consumer behaivors
consumer ethics
excessive behavior typically brought on by a chemical dependency
addiction
irresistible urge to perform an irrational act
compulsive behavior
illegal market in which consumers pay often exorbitant amounts for items not readily available
black market
theory that proposes that individuals have a drive to compare themselves with other people
social comparison theory
misleading use of environmental claims for marketing purposes
greenwashing
organized activity in which consumers avoid purchasing products or services from a company whose policies or practices are seen as unfair or unjust
boycott
pair of individuals engaged in common activity such as a salesperson and consumer
interaction dyad
in selling, organized memory structures used by salespersons to plan and carry out effective sales presentations
scripts
ISTEA
model of adaptive selling: impression, strategy formulation, transmission, evaluation, adjustment
source of selling influence based on superior knowledge
expert power
source of influence based on consumers identification with salesperson
referent power
added bonus paid to a retail salesperson by a manufacturer if a particular model is sold, “push money”
spiff
theory that revs are maxed by charging each customer highest price willing to pay
price discrimination
illegal combo of advertising and personal selling
bait and switch
allow 3 days for consumers to cancel purchases made under high-pressure selling conditions
cooling off laws
center for organizing purchasing, can consist of one or many individuals
decision making model
basis for buying by bids from competing suppliers: detail exact product to be purchased
specifications
another term for decision making unit
buying center
arrangement in which suppliers and customers cooperate for long term advantages for each
relationship marketing
pairing of salesperson and purchaser whose interrelationships are studied with respect to the exchanges taking place
buyer/seller dyad
willingness to rely on a seller to serve the best interest of buyer: key determinant of longterm success of sales person
customer trust
actions carried out in accordance with a socially acceptable personal code of justice and morality
ethical behavior
Attitude formation occurs after trial
Low effort hierarchy of effects
More readily adopted if
High perceived value, relative advantage, use innovativeness, low costs and risks
3 traits Impact learning and diffusion
Compatibility, trialability, complexity
Social relevance based on 4 factors
Observability, social value, legitimacy, adaptability
Role acquisition phases
Separation, transition, incorporation
Consumer bill of rights (8), santa comes home in california because rudolphs hurt
Safety, choose freely, be heard, informed, consumer education, satisfaction of basic needs, redress, healthy environment
Corrective advertising
Forces marketer to run new ads to correct any deceptions still in consumers mind
How much in losses due to consumer theft
Retail $37 B
Black markets
Legal items in short supply, brands, illegal items
4 Types of promotion
Advertising, publicity, sales promo, personal selling
Promotion communication process
Source, ENCODE, transmit, receiver, DECODE, action
Goals of promo communication
Stimulate Category need, brand awareness, brand attitude, brand purchase intention
Info contact w promos is often incidental
True
Salespeople w more creative selling and relationship building
Order getter
Personal selling 3 ways
Face to face, telephone, video or web
Steps in personal selling
Prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling objections, closing, following up
Buyers want solutions, salespeople should listen and respond w right products and services to solve customer problems
Need satisfaction approach
Sales interaction process
Orientation, evaluation, consummation
organizational buying behavior demand characteristics
derived, inelastic, joint, fluctuating
organizational differences than consumer
not end user, dmu’s make purchase, large quantities, highly structured process, reciprocal buying, risky, complex, long term relationships, negotiation
3 elements of org buyer behavior
structure, process, content
org buying process
problem recognition, description of need, product specifications, supplier search, acquisition and analysis of proposals, supplier selection, selection of order routine, performance review
new task buy
problem totally different than previous - lots of info needed
modified rebuy
benefits by reevaluating alternatives - when displeased, limited problem solving stage
straight rebuy
problem is recurring or continuing
individuals make decisions not organizations
true
economic choice criteria
performance, reliability, price
social criteria
status, need for social belonging
personal criteria
how product relates to individual psychologically
industrial product users
prompt delivery, efficient and effective service
engineering values
testing, standardization, product quality
purchasing values
price advantage and economy, shipping and forwarding
accept communication messages consistent w beliefs and attitudes
selective exposure
filter out stimuli only to allow certain ones into cognition
selective attention
interpret stimuli in terms of attitudes and beliefs, like the co so like the salesperson
selective perception
recall info that pertains to own needs and dispositions
selective retention
2 components to perceived risk
uncertainty about decision outcomes, magnitude of consequences associated with making wrong selection
products classified into 4 types
materials, components, plant/equipment, MROs
what percent of e-trade dollar value is B2B
80%
traditional auction
looking for buyer
reverse auction
looking for seller
supply system provides materials and components as required
just in time purchasing
several operating units within co have common requirements and there is opportunity to strengthen a position by bulk buying
centralized purchasing
buyer persuades supplier to provide them with exactly whats needed
reverse marketing
