Final Flashcards
Evolutionary Theory
Fitness indicators used to be relevant for our survival, now it’s consumption
Tragedy of the Commons
what is easiest for the individual is at odds with what is best for the community
Market Research
systematic process of planning, collecting, analyzing and interpreting data on consumer behavior
Exploratory Research
Focus Group, In-Depth Interviews, Projective Tests
Descriptive Research
Longitudinal Studies, Surveys
Causal Research
Experiments that determine causality
Aggregation Marketing
single product developed for all groups
Pros: economical
Cons: low customer satisfaction
Market Segmentation
divide mass market into subsets of consumers who have common needs/characteristics
Segmentation Benefits
To the organization:
- better product design
- increased customer satisfaction
- sustainable profit growth
To the customer:
- Saves time/is convenient
- Personalized experience
- Relevant offers
Top-Down Strategy
Identify needs of consumer, then segment the consumers and select the most efficient segment
Bottom-Up
select specific group, then identify their needs
Useful Segment Qualities
identifiable, substantial, accessible, stable, differentiable, actionable
Majority Fallacy
lot’s of people targeting the same segment=more competition=less effective
Niche Segmentation
go after smaller segment bc it will be larger than the segment you would have gotten after majority fallacy kicks in
Psychographics
lifestyle, personality, activities, interests
PRIZM Groupings
Social groupings based on urbanicity (urban, suburban, second city, town and rural)
Lifestage Groups
Younger years, Family life, Mature years
Individualized/One-to-One Marketing
marketing tailor made for each customer (e.g. fitness trainers, financial advisers)
6 Criteria of Brand Elements
Memorable, meaningful, likable, transferable, adaptable, protectable
Brand Product Identity
brand name, mark, logo and slogan
Brand Culture
the people that create the brand’s “story”
firm/marketers, influencers, pop culture customers
Brand Equity
set of assests that the brand brings to the table that adds/subtracts from the value of that product/service
Implicit Motivation Test
computer task that tells you whether you have a positive/negative reaction to certain things
Standardize
one brand across many different types of products
Diversify
one company owning several different brands with their own identity
Self-Brand
the way your friends/employers perceive you/your unique skill set
Patrician
wealthy, but no need to prove themselves to the average person
Parvenu
“nouveaux riches” who want people to recognize wealth
Poseur
want status but don’t have disposable income
Proletarian
lower SES, less status conscious
Griffe
special signature that educates consumers about the details of the brand
Evolutionary Preference
preference for rounded edges (faces, objects, architecture, etc.)
Sensation
process by which out nervous system receives and represents stimuli from the environment
Perception
process of retrieving, selecting, and interpreting environmental stimuli with the 5 senses
Micro–>Macro Processing
getting individual pieces of sensory info and simultaneously going through pre-existing schemas
Macro–>Micro Processing
Brain goes through previous schema to come to a conclusion
Visual Capture
a tendency for vision to dominate the other senses
Just Noticeable Difference
min. difference a person can detect between any 2 stimuli 50% of the time
Adaptation
process of becoming desensitized to sensual stimuli
Selective Exposure
consumer exposure is highly selective
Voluntary Exposure
consumers sometimes actively seek out certain marketing stimuli
Oral Referral
unaware of info conveyed by nose
Attitude
evaluation of people, objects or ideas
Affective Reactions
based on emotion towards object
Behavioral Reactions
based on actions towards object
Cognitive Reactions
based on thoughts/beliefs about properties of an object
2-Factor Theory
repeated exposure increases perceptual fluency
Learning Hierarchy
Think–>Feel–>Act
Emotional Hierarchy
Feel–>Act–>Think
Low-Involvement Hierarchy
Act–>Feel–>Think
Theory of Reasoned Action
behavioral intent is created by our attitudes and subjective norms
Types of Brand Loyalty
Habituals- buying b/c you always have
Loyals- positive attitude & follow through with purchase
Variety Seekers- enjoys category of product but wants brand variety
Switchers- decisions governed by price (not brand
Compliance
changing one’s behavior in response to a direct request
Self-Presentational Issues
disguised questioning/conscious projection
Word of Mouth
consumers talking to another consumer about the brand
Buzz Marketing
induced WOM by making marketing taboo, unusual, outrageous, etc.)
Viral Marketing
attempt to make branded message appear unique (e.g. First Kiss)
Stealth Marketing
spreading WOM in covert manner
Product Pusher
people recruited by the company to get product talked about
Imitation Evangelist
actors put on payroll for buzz campagins
Attitude Function Theory
1) structure and organize info
2) value-expressive
3) ego-defensive
4) utilitarian
Elaboration Likelihood Model
persuasion is a function of elaboration
Principles of Compliance
reciprocation, social validation, consistency, scarcity, authority, commitment
