L1-L10 Flashcards
What is consumer behavior?
The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products to satisfy needs.
Why study consumer behavior?
To become informed decision-makers as consumers, develop better products and strategies as marketers, and improve consumer welfare as a society.
What is the Endowed Progress Effect?
Consumers are more motivated to complete a goal when they perceive that they’ve already made progress toward achieving it.
Example: Customers are more likely to complete a loyalty card that comes with 2 holes already punched.
What is the Contrast Effect?
Consumers compare products based on reference points, such as pricing strategies.
What is Descriptive Research?
Research that identifies and describes behaviors and the participants.
What are the methods of Descriptive Research?
Observation, focus groups, and surveys.
What is Correlational Research?
Research to detect naturally occurring relationships or associations and to see how well one variable predicts another.
What are possible problems with Correlational Research?
Incidental correlation (correlation ≠ causation) and reverse causation.
What is Experimental Research?
Research that manipulates variables to establish causality.
What is an independent variable?
The variable that is manipulated in an experiment (the cause).
What is a dependent variable?
The variable that is measured in an experiment (the effect).
What is a control condition?
A condition in an experiment that must be randomly assigned.
What is a treatment condition?
A condition in which one variable is changed in the treatment group.
What is a confound?
A factor that changes at the same time as the independent variable, potentially distorting results.
Example: Testing if an experiment works better in the morning or afternoon may be confounded by student energy levels.
What is selection bias?
Choosing participants that have a specific bias.
What is the demand effect?
When participants try to figure out what the research is trying to find.
What is internal validity?
The degree to which a study accurately measures what it claims to measure without interference from confounding variables.
What is external validity?
The extent to which the results of a study can be generalized to other populations, settings, or times.
What is ecological validity?
A specific type of external validity that examines whether the study setting, materials, and procedures realistically reflect real-world conditions.
What is sensory memory?
Immediate, brief recording of sensory information.
What is maintenance rehearsal?
A memory technique that involves repeating information over and over to keep it active in short-term memory.
What is chunking?
Grouping information into meaningful units.
Example: Phone numbers (561) 319-8715.
What is short-term memory?
Limited, temporary memory also known as working memory.
What is elaborative rehearsal?
Linking new information to existing knowledge to enhance long-term retention.
What is the primacy effect?
The tendency to remember the first items in a sequence.
What is the recency effect?
The tendency to remember the last items in a sequence.
What is long-term memory?
Permanent storage of knowledge influenced by elaborative rehearsal.
What is an associative network?
Information stored and linked in memory through associations.
Example: Thinking of ‘Apple’ may lead to ‘iPhone’, ‘tech’, ‘Steve Jobs’.
What is brand extension?
A marketing strategy in which a company uses an existing brand name to introduce a new product in a different category.
Example: Dyson introducing hair tools after successfully introducing vacuums.
What is nostalgia marketing?
A marketing strategy that leverages consumers’ emotional connections to the past to evoke positive feelings and brand engagement.
Example: Brands reintroducing old styles or colorways.
What are the components of attitude?
Cognition, affect, and behavior.
What is cognitive dissonance?
A psychological discomfort that occurs when a person holds conflicting beliefs, attitudes, or behaviors.
What is the Peak-End Rule?
Memory of experiences is shaped by peaks and endings.
What is the Elaboration Likelihood Model?
A theory explaining how people process persuasive messages through the central and peripheral routes.
What is central route processing?
Persuasion via deep, logical reasoning.
What is peripheral route processing?
Persuasion through superficial cues.
What are heuristics?
Cognitive strategies to process information quickly and make decisions efficiently.
What is the Anchoring and Adjustment Heuristic?
People make estimates by starting at an initial value (anchor) and then adjusting accordingly.
What is the Availability Heuristic?
People estimate the frequency or probability of an event based on the ease with which instances can be recalled.
What is the Representativeness Heuristic?
Judging the probability of an event based on how similar it is to an existing prototype or stereotype.
Example: Assuming a quiet, studious person is a librarian rather than a salesperson.
What is confirmation bias?
The tendency to seek out, interpret, and remember information that confirms existing beliefs while ignoring contradictory evidence.
What is the decoy effect?
When the introduction of a third, strategically designed option makes one of the original two options look better.
What is the compromise effect?
When consumers tend to pick the middle option when presented with three choices.
What is Prospect Theory?
A theory that states people evaluate outcomes relative to a reference point.
What is loss aversion?
The tendency for losses to loom larger than gains.
What is the endowment effect?
The phenomenon where people ascribe more value to things merely because they own them.
Example: Buyers and sellers have different perceived values for the same item.
What is the status-quo bias?
The tendency to prefer the current state of affairs.
What is the sunk cost fallacy?
The tendency to continue an endeavor once an investment in money, effort, or time has been made.
What is choice overload?
The tendency to have difficulty making a choice when presented with numerous options.
What is the framing effect?
The impact of presentation choices on judgments and decisions.
What is mental accounting?
The tendency to categorize money differently based on its source or intended use.
What is risk aversion?
The tendency to prefer outcomes that are certain over those that are uncertain.
What is temporal discounting?
The cognitive phenomenon of preferring more immediate rewards over future benefits.
What is present bias?
The tendency to value immediate rewards disproportionately more than future rewards.
What is Present Bias?
The tendency to value immediate rewards disproportionately more than future rewards.
What is Construal Level Theory?
Events or objects that are psychologically distant are thought about in abstract, general terms, while those that are psychologically near are thought about in concrete, detailed terms.
What is the focus of Future events according to Construal Level Theory?
Abstract, distant, focusing on high-level, central aspects of the choices.
Example: Thinking about the upcoming fall semester, you think of the big picture, overall goals you want to accomplish.
What is the focus of Immediate events according to Construal Level Theory?
Concrete, close, focusing on low-level, peripheral details.
Example: When you think about next week, you think about what you need to do to achieve your short-term goals.
How do people perceive their future selves?
As psychologically distant, which can mitigate present bias and improve self-control when made psychologically close.
Example: Climate change.
What is Precommitment in self-control strategies?
Restricting future choices to align with long-term goals.
What is Choice Architecture?
The design of how choices can be presented and the downstream impact of that presentation on decision-making.
What is Nudging?
Structuring choices to influence behavior while preserving freedom.
What are effective nudge strategies?
Defaults, Feedback, and Structuring Choices.
What is Friction?
Any extra effort or inconvenience that makes an action harder to complete.
Example: 2-step authentication to increase account security.
What is Sludge?
When friction is intentionally used to prevent people from doing something beneficial or trap them in undesired situations.
Example: A gym requiring you to go in person to cancel membership.
What is Libertarian Paternalism?
Guiding choices while maintaining freedom.
What does Libertarianism believe?
That people should be free to do what they like and to opt out of arrangements they deem undesirable.
What does Paternalistic imply?
It is legitimate for choice architects to try to influence people’s behaviors to make choosers better off.
