Final Exam Flashcards
routine choice
carried out automatically, with little conscious effort, no information search or deliberation; chewing gum, milk, generally involve habitual responses; little risk
intermediate problem solving
limited information search and deliberation; simple decision rules and heuristics; snack foods and soft drinks
extensive problem solving
deliberate and systematic effort, infrequently or expensive purchases; unfamiliar purchases
perceived risk
the possibility of negative outcomes, then consumers are more likely to demonstrate higher levels of involvement
brand laziness
low involvement and low information processing; commodity products like butter, ammonia, salt, flour
brand loyalty
high involvement and low information processing; jeans, athletic shoes, TV, cigs, magazines
variety seeking
high information processing, low involvement; the desire to choose new alternatives over more familiar ones; beer, candy, sports drinks, chewing gum, cereal
derived variety behavior
describes situations where consumers’ brand switching is either externally imposed or extrinsically motivated
- variety seeking due to out of fav in the vending machine or getting an AB at a cards game event though it isn’t you fav beer
intrinsic variety behavior
seeks variety for the inherent pleasure of change and positive stimulation
parity products
brands that possess functionally equivalent attributes making one brand a satisfactory substitute of most others (advertising becomes very important)
- when variety seeking becomes common
problem solving
high involvement, high information search; unfamiliar and expensive products
determinant attributes
characteristics of a product that are most likely to affect the buyer’s final choice
want-got-gap
the discrepancy that exists between what a consumer wants and the situation he finds himself in
- key to problem recognition!!
need
fundamental state of felt deprivation; an internal state that falls below a threshold of acceptability
motives
internal drives that push people to resolve a problem or reduce a need; the greater the want-got-gap the higher the motive
want
when a consumer’s ideal state rise above their actual state; need satisfiers that are shaped by personality, experiences, and culture…including marketing
opportunity
when a consumer’s ideal and actual state simultaneously move in opposite directions, this combination creates a sizable want-got gap that creates an opp
prepurchase search
once a problem is recognized, consumers gather info to information their purchase decision
internal search
a prepurchase search that accesses information from long term memory; common with low involvement decisions
external search
a prepurchase search; colleagues, friends, relatives, mark sources, online, product triasl
ongoing search
when consumers obtain information without recognizing a consumption problem; browsing
enduring involvement
describes a consumer’s long-term and continuous interest in a brand or brand category; golf enthusiasts are interest in new clubs
situational involvement
relatively temporary and context dependent interest in a product or category; infrequent flier visiting another country
brand overload
when you feel overwhelmed by the number of available brands that you quickly grab the one most familiar to you; brought on by the proliferation of brands that offer few distinctive attributes
market mavens
people who search, accumulate, and share product knowledge with others; keep the marketplace honest
impulse buying
purchases made without prior buying; can be a result of an ongoing search
bounded rationality
the idea that consumers can only make rational decisions within the limits of time and cognitive ability
expectancy disconfirmation model
suggests that consumers form expectations about product performance prior to purchasing a brand based on initial expectations and goals; implies that consumers who attain low expectations will be just as satisfied as consumers who achieve higher expectations; if goals a re met = satisfied, if goals not med, dissatisfied….(don’t set yourself up for failure)
performance based satisfaction
when consumers compare the performance of a product with a product’s best possible outcome or potential; “what could be”
consideration set
group of brands that consumers think about buying when they need to make a purchase
evoked
the brands discovered during the external information search
part-list-cuing
involves presenting the names of just some brands when consumers are trying to recall as many brands as possible…makes it more possible for the consumer to think of other brands
attraction effect
a target brand seems more attractive when it is compared to inferior brands and less attractive when it is compared to superior brands…add a decoy
compromise effect
make the brand appear as an average (or a good compromise) brand against all other brands in the consideration set
stimulus based choice
when consumers can directly and physically observe all relevant brands in the consideration set and their brand attributes ; examining all brands through the package on the shelf in a store
memory based choice
none of the relevant brands and attributes are directly and physically observable and the consumers still make a purchasing choice
mixed choice
consumers can see some brands in the consideration set but not all…must remember others
attitude based choice
consumers form overall evaluations and general impressions of brands in the consideration set based on a combination of everything they know about all the brands and then select the one with the highest evaluation
attribute based choices
consumers compare specific attributes or features of each brand and select the one that performs best o key attributes
MODE model
Motivation and Opportunity to deliberate are key DE-terminants of the process that influence consumer choice
- Motivation: high when the decision is more personally relevant
- opp is high when people can take the time and have the ability to think carefully and to deliberate their decision
systematic processing
when consumers think carefully about decisions using all relevant information and considering all implications
heuristics processing
some people are unwilling or unable to make such careful decision through systematic processing, and therefore use heuristics that enable them to make quick decision
persuasion heuristics
influence consumers’ beliefs and attitudes
- length implies strength heuristics: ads filled numbers about all the attributes
- liking agreement heuristic: based on assumption that consumers usually agree with people they like (balance theory)
- consensus implies correctness: bandwagon effect
prediction heuristics
what we studied: used to form likelihood adjustments
- anchoring and adjustment
- availability
- representative
- simulation (?)
influence or choice heuristic
(the third type of heuristic)
influence or choice heuristic affects consumers decisions directly
- i.e. decision rules
representative heuristic
assume a target can be placed into a certain category based on its appearance; make prediction based on perceived similarities between a specific target brand and a general category
availability heuristic
make predictions based on how easily one can retrieve information from memory
simulation heuristic
make predictions based on how easily an event or a sequence of events can be imagined or visualized…if it can easily be imagined then it tends to be overestimated and vise versa….we are more likely to contract diseases with symptoms we are familiar like fatigue, headaches, muscle res and less likely to get a disease that causes an inflamed liver
expected utility theory
suggests that all alternatives can be rated from worst to best; also suggests that alternatives with higher expected values dominate or a better choices than alternatives with lower expected values
cancellation
in gambles with different stages such as a games show in which you need to win in stage one in order to advangce to stage two, stage one should cancel out, or be ignored, if it is identical for two different gambling gamesq
transitive
if you prefer A to B, and B to C, then you must prefer A to C
invariance principle
preferences should remain the same no matter how preferences are measured or how decision alternatives are described
frames
in direct violation of the invariance principle, extensive research shows that preferences change when decision alternatives are described in terms of difference frames of perspectives
risk aversion
people typically avoid risky alternatives when outcomes are framed positively (lives saved or money gained)
risk seeking
people are more likely to accept risk when outcomes are framed negatively ; people think about a choice in terms of negative terms like deaths or money lost, people are more likely to accept risk
preference reversals
when people are inconsistent i.e. sometimes risk averse and sometimes risk seeking, this occurs: a preference reversal means that people prefer option A over option B at one point in time, but can prefer option B over option A at a different point in time
reference dependence
prospect theory: all outcomes are evaluated with respect to a neutral reference point and that preferences change as reference points change; 100 may seem like a lot to poor people but it doesn’t seem like a lot to rich people have higher reference points (1 mill)
loss aversion
the value function is much steeper for losses than for gains; losses have a bigger impact on people relative to equivalent gains; losing 100 has a bigger impact on people than winning 100
diminishing sensitivity
outcomes have weaker effects on people as distance from reference point increases; the difference between 100 and 0 seems larger than the difference between 1000 and 1100
endowment effect
tendency to view a product as more valuable if one owns it than if one does not own it
price bundling
used by forms to aggregate losses; instead of charging 40 per day to ski, ski resort will bundle 4 days into 160. if weather is bad on 4th day consumers are likely exhibit the sunk cost effect and go skiing anyway
endowment effect and the sunk cost effect result from insensitivity to _____
opportunity cost
libertarian paternalism
refers to the idea that people should have free choice but that choice options should be arranged in a manner to help people make the best choices
choice architecture
policy makers should then structure the choice options in a manner that helps people make informed decision; choice architects should use consumers psychology, social psychology, and behavioral decisions research to structure people choice optinos
compatibility principle
why do different measurement techniques lead to different preferences? according to this principle, different measurement techniques highlight different aspects of choice options
singular evaluation
consumers often evaluate products one at a time
comparative evaluation
consumers compare two or more products concurrently; customers preferred the CD S because they were comparing the THD to the other CD during singular evaluation
brand positivity effect
consumers form unrealistically favorable evaluations of moderately favorable brands when they form singular evaluations, but not when they form comparative evaluations
price-quality heuristic
most consumers believe that as price increases, quality also increases
scope insensitivity
occurs when people lack distributional knowledge about attributes that inherently difficult to evaluate…during singular evaluation people are willing to pay the same amount of money to help 2000 birds than 20,000 birds
duration neglect
occurs when people are asked to indicate their preferences for two events that are similar but differ in terms of temporal duration..participants remembered the longer trial as being less painful because it had less cold water at the end which felt nice
peak and effect
duration neglect occurs due to this, or due to better memory for the worst part of the procedure and the end relative to the rest of the procedure
affective forecasting
…studies that compare the predictions of forecasters with the evaluations of experiencers
durability bias
found where people believe they will be happy or sad for a long time following a positive or negative event…professors were equally happy a year after the tenure decision regardless; the bias tends to be stronger for negative events
self-concept
beliefs and attitudes we hold about ourselves; totality of an individuals thoughts and feelings regarding him or herself as an object
role identities
represent the numerous positions that people occupy in society such as student, friend, son or daughtr
personal qualities
modes of interpersonal behavior that distinguishes people from one another like sense of humor or friendliness…can be thought of as traits
self evaluations
consider the adequacy of their performances in various role identities; smart shopper, good boyfriend
self-esteem
sum of all self-evaluational overall evaluative component of a person’s self-cnoncept; a general attitude toward oneself
self schema
cognitive structures that help us make sense of who we are; basic sketches of what people know about something; people retrieve information that is consistent with their actual self-schema
extended self
the direct link between a consumer’s self-concepts and her posessions
loved objects
shown to derive much of the emotional status by helping to resolve internal conflicts (stuffed animals)
self-monitoring
the extend to which consumers use situational cues to guide their social behavior
malleable self
refers to the multifaceted self-concept that includes good self, bad self, not me self, desired self, ideal self, ought to be self
self conceptions
the result of malleable self: good self, bad self, not me self, desired self, ideal self, etc
impression management
the process of creating desirable images of ourselves for others
appearance management
the decisions regarding how consumers control their physical appearances and surroundings
ingratiation
set of strategic behaviors designed to increase the probability of gaining benefits or favors from another person;;;used to get people to like you
self-presentation
involves either self-enhancement or self-depreciation…used to get people to like you
opinion conformity
entails expressing insincere agreement on important issues
flattery
involves excessive compliments or praise designed to make someone feel good about himself
aligning activities
consist of comments that attempt to realign our behavior with norms
disclaimers
verbal assertions, made in advance, to offset the potential negative effects of a behavior…im not expert but
accounts
excises or justifications…dell claims that you computer crashed from installation of incompatable software is an account or an excuse
personality
set of unique psychological characteristics tat influences how a person responds to his or her environment including cognitive affective and behavioral tendencies
personality traits
represent consumers tendencies to respond in a certain way across similar situations
Five Factor Model
OCEAN Openness Conscientiousness Extraversion Agreeableness Neutroticism
compulsive buying
the drive to consume uncontrollably and to buy in order to avoid problems
brand image
compromise all the thoughts and feelings consumers have about a certain brand…logos, slogans, endorsers, price, distribution channel, typical use
brand personality
refers to the set of human characteristics associated with a brand
- competence
- excitement
- sophisitication
- sincerity
- ruggedness
brand personification
give a brand characterization; involves giving non human like traits…geiko’s talking gecko; the M&M characters
brand anthropomorphization
assigns both human traits and form to non-humans; enlists fictitious characters with both human traits and human forms; jolly green giant, pillsbury doughboy,
cognitive personality variables
the personality traits that describe an individual’s mental responses to objects…establishes the differences between social sciences and the natural sciences
locus of control
describes the extent to which an individual possesses internal or external reinforcement beliefs: internal = master of my own destiny…external = fate, luck, more powerful factors
need for cognition (NFC)
measures an individuals natural tendency to engage in and enjoy effortful cognitive actives; want to engage in cognitive analysis; relatively unaffected by irrelevant background appeals like celebrity endorsers
need for humor (NFH)
represents an individuals tendency to crave, seek out, and enjoy humor, a construct more motivationally driven than sense of humor….pay cost attention to humorous ads
theory of lay epistemology
the formation and use of everyday knowledge suggests that individuals differ in the degree to which they make the important trade-off between speed and accuracy…the trade off between speed an accuracy when making a purchasing decision
need for cognitive closure
NFCC - describes a consumer’s desire for definite knowledge of any kind to reduce confusion or ambiguity
verbal compliance
describes a situation when someone says “yes” to a specific request
behavioral compliance
describes a situation where someone actually carries out that request
automaticity principle
corner stone of all influence technique; principle asserts that people often think mindlessly and as a result,behave automatically, without fully evaluating the consequences of a request; routine, habitual behaviors
because heuristic
people tend to process all requests small requests mindlessly…so hearing the word “because” may be enough to trigger compliance for small requests
commitment and consistency principle
pressure to maintain consistency is surprisingly powerful; people are expected to exhibit beliefs, attitudes, and behaviors that are stable and coherent; inconsistencies often invite interpretations of personality flaws or mental illness
foot in the door technique
involves making a small request followed by a target one..pretending to be a survey researcher and then eventually ask them to make a purchase..would you like to test drive this vehicle? would you do me a small favor? try this perfume
self-perception theory
suggests that complying with a small request leads people to label themselves as helpful, good citizens or reasonable people…once people have labeled themselves as such, they have a desire to maintain that self-perception
low ball technique
car sales people are notorious for this technique; they try to get an initial commitment, and then they change the deal…they offer a deal and then halfway through the paper work they find out that the car actually costs more due to a mistake
commitment theory
suggest that the purpose of obtaining an initial commitment is to impart resistance to change…people don’t like to change their mind or back out
bait and switch
a special case of the low-ball technique; also known as lure procedure; lures customers in by advertising a low-priced product or service..when the customers discover the product is not available, the sales people offer them a different more expensive product
reciprocity principle
when someone does you a favor, you feel obligated to return it in kind; not only social ettiquite, but its also surprising powerful influence on technique…people are often tricked in to returning much larger favors than they receive…free samples
door in the face technique
following up a large, unreasonable request with a small more sensible request usually improves behavioral compliance
that’s not all technique
opposite of the low ball technique, this one starts high and builds in a downward fashion; initial deal is changed into an even better deal before the consumer has an opportunity to reject the firs offer
multiple deescalating requests technique
involves more than two requests; differs from the that’s not all technique in that once a request is refused, additional requests follow-one after another-until one is finally made
even-a-penny technique
a way to appear extremely reasonable; involves the legitimation of trivial contribution
scarcity principle
people often want what they cannot have; people often want things they cannot have in the future; “while supplies last” “limited edition”
affirmation of the consequent
something to do with the scarcity principle???????
social validation principle
“proof in numbers”; maintains that the perceived validity or correctness of an idea increases as the number of people supporting the idea increases
list technique
presenting a list of supporters or donors to a prospect; people are more willing to donate
diffusion of responsibility
if no one quickly steps forward to act then the likelihood of anyone acting decreases and a snowball of pluralistic ignorances ensures; in fact, people are much more likely to help when they perceive themselves to be the only person available to help i.e. the situation cannot be diffused
descriptive norms
involve perceptions of which behaviors are common or popular i.e. what is everyone doing; the more people doing something the more likely you are to do it
injunctive norms
involve perceptions of which behaviors are accepted or rejected by society
liking principe
we tend to comply with the requests of those whom we like
ingratiation
tactic commonly used to engender liking; involves purposely bringing oneself into the good graces of another person
indirect associations
creating these to a positively evaluated stimulus like a popular uni or sorts team can increase liking for that stimulus; when our team wins we are more likely to wear hats anti their name on it
affect transfer
special case of classical conditioning; occurs when the positive affect or feelings created by an unconditioned stimulus becomes associated with a conditioned stimulus…advertisers are famous for attempting to transfer positive feelings created by the drama in an ad to the sponsored brand
MUM effect
the tendency to keep mum about unpleasant messages
authority principle
authority figures use titles, uniforms, or expensive possession that convey status to impress and influence others to obey and listen
organic word of mouth
word of mouth that occurs naturally
buzz marketing / word of mouth marketing
execution of marketing tactics specially designed to generate positive word of mouth marketing messages and create a virus like exponential spread to those messages
viral marketing
buzz campaign that usually involves the internet to facilitate the spread of word of mouth and spark buzz
stealth marketing
buzz marketing campaign that specifically relies on spreading word of mouth in a covert of clandestine manner…while the tactics may not differ appreciably in a stealth marketing campaign than in a buzz marketing generally, the consumer is supposed to remain unaware that a company is systematically generating buzz
experimental marketing
buzz marketing technique based on the idea of creating one-on-one experiences that allow consumers to experience the brand in a sensory way that is usually unique, fun, and entertaining;;;;cranberry bogs
community marketing
organizing and supporting niche communities that share a common interest surround a brand;;;online or offline; fan clubs, user groups and forums; harley owners group (HOGs)
grassroots marketing
type of community marketing; organizing and supporting communities on a personal and local level; like door to door
consumer generated marketing
creation of advertising or other marketing content by the consumers; sharing images, posing digital stories, creating an ad through a promotion or contest
correspondent inference
assumption that a person’s behavior is a reflection of their beliefs and underlying dispositions, rather than the result of some situation variable; so a celeb wearing or using a brand leads the consumer to infer that the celebrity actually likes the brand and is a user of the brand
visual product placement
entrails placing the brand on a screen within the setting or background of a program; most common; easiest to overlook because little or no interaction between the characters and the actual product
verbal product placement
actor references or request a product by name..most common in music or books
brand interaction
characters actually handle the product physically interact with it in some way..an actor drinking a coke
brand integration
brand is woven into the thread of the story; junior mint scene in seinfeld
sponsorship and branded entertainment
most intensive form of marriage between a content and a brand; brand is the sponsor of the content and has extensive editorial control of the content
mobile marketing
any marketing communications directed to a mass audience, target group, or individual using a mobile device
