Mfinal-overall Flashcards
Decision-Making Process
Problem Recognition -> Information Search -> Evaluation of Alternatives -> Product Choice - > Outcomes
Continuum of Buying Decision Behavior
Routine Response Behavior -> Limited Problem Solving -> Extensive Problem solving
Information Search
consumer surveys the environment for appropriate data to make reasonable decision
Brand Switching
select familiar brands when decision situation is ambiguous
Variety Seeking
Desire to choose new alternatives over more familiar ones
Relationship between Amount of Information Search and Product Knowledge
Low Product Knowledge = Low amount of search
Medium Product Knowledge = High amount of search
High Product Knowledge = Low amount of search
Five Types of Perceived Risk
- Monetary
- Functional
- Physical
- Social
- Psychological
Buyers/Purchases most Sensitive - Monetary Risk
Buyers - Those with little income
Purchases - High ticket items
Buyers/Purchases most Sensitive - Functional Risk
Buyers - Practical consumers
Purchases - Products that require the buyers exclusive commitment
Buyers/Purchases most Sensitive - Physical Risk
Buyers - elderly, frail, or ill health
Purchases - Mechanical, drugs and medical treatments, and food and beverages
Buyers/Purchases most Sensitive - Social Risk
Buyers - Insecure and uncertain people
Purchases - socially visible goods (clothes, cars, jewellery)
Buyers/Purchases most Sensitive - Psychological Risk
Buyers - lacking self-respect or attractiveness
Purchases - Expensive personal luxuries, services that demand self-discipline
Levels of Categorization
Superordinate Level (dessert) -> Basic Level (fattening vs nonfattening) -> Subordinate Level (type of dessert)
Heuristics: Mental Shortcuts
Mental rule of thum that lead to speedy decisions (higher price = higher quality)
Zipf’s Law
Our tendency to prefer a number one brand to the competition
Consumer inertia
Tendency to buy a brand out of habit merely because it requires less effort
Noncompensatory (decision rules)
Lexicographic rule
Elimination-by-aspects rule
Conjunctive rule
Lexicographic rule
brands are evaluated on the consumers most important attribute
Elimination-by-aspects rule
brands are evaluated on the most important attribute under the elimination-by-aspects rule. In this case, though, specific cut-offs are imposed.
Conjunctive Rule
entails processing by brand
Purchase and Postpurchase Activities
Antecedent States -> Purchase Environment -> Postpurchase Processes
Shopping Orientation
Economic consumer Personalized consumer Ethical consumer Apathetic consumer Recreational shopper
Atmospherics
Conscious designing of space and dimensions to evoke certain effects in buyers
Expectancy disconfirmation mode
consumers form beliefs of product quality based on prior performance
Acting on Dissatisfaction - Threee ways consumers act on dissatisfaction
Voice response: Appeal to retailer directly
Private response: Express dissatisfaction to friends or boycott store
Third-party response: legal action
Gemba
One true source of information
Total Quality Management
How people actually interact with their environment in order to identify potential problems
Reference group
Actual or imaginary individual/group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour
Types of Reference Groups
Normative influence
Helps to set and enforce fundamental standards of conduct
Comparative influence
Decisions about specific brands or activities are affected
Brand Communities and Tribes
A group of consumers who share a set of social relationships based upon usage or interest in a product
Types of Social Power
- Referent power
- Legitimate power
- Reward power
- Information power
- Expert power
- Coercive power
Foot in the door technique
Ask for a small request then hit them up for something bigger
Low-ball technique
Asked for small favour that becomes costly
Door in the face technique
First ask to do something extreme, and when they refuse the person will then ask for a smaller request
Deindividuation
individual identities become submerged within a group
Social loafing
People don’t devote as much to a task when their contribution is part of a larger group
Risky shift
Group members show a greater willingness to consider riskier alternatives following group discussion than if members decide alone
Market Maven
Actively involved in transmitting marketplace information of all types
Family life cycle (FLC)
concept combines trends in income and family composition with change in demands placed on income
Roles and Modes Decisions
Initiator Information gathering Gatekeeper Influencer Decision-maker Buyer Preparer User Maintainer Disposer
Initiator, Information gathering, Gatekeeper
Initiator—the person who brings up the idea or need.
• Information gatherer—the person who gathers information on a product or service.
• Gatekeeper—the person who conducts the information search and controls the flow of information available to the group.
Influencer, Decision-maker, Buyer
Influencer—the person who tries to sway the outcome of the decision.
• Decision maker—the person who holds the singular or joint power to deter-mine whether or not to buy a product or service.
• Buyer—the person who actually makes the purchase.
Preparer, User, Maintainer , Disposer
Preparer—the person who processes the product or directs the service into a
form that can be consumed by others.
- User—the person who ultimately uses the product or service.
- Maintainer—the person who is responsible for the maintenance and upkeep of a product or service.
- Disposer—the person who discards or discontinues the use of a product or
service
Consensual purchase decision
Members agree on the desired purchase, differing only in terms of how it will be achieved
Accommodative purchase decision
Members have different preferences or priorities and cannot agree on a purchase to satisfy the minimum expectations of all involved
Autonomic decision
one family member chooses a product
Syncratic decision
involve both partners
Four factors in joint versus sole decision making
Gender-role stereotypes
Spousal resources
Experience
Socioeconomic status
Five Stages of Consumer Development
Stage 1: Observing Stage 2: Making Requests Stage 3: Making Selections Stage 4: Making assisted purchases Stage 5: Making independent purchases
Discretionary income
the money available to a household over and above that required for a comfortable standard of living.
Individual Attitudes Toward Money
Brand aspirationals: people with low incomes who are obsessed with names like KitchenAid;
Price-sensitive affluents: wealthier shoppers who love deals; and
Value-price shoppers: like low prices and cannot afford more.
Consumer confidence
Extent to which people are optimistic or pessimistic about the future health of the economy
Social mobility
passage of individuals from one social class to another
How Do We Measure Social Class?
Individual characteristics as well as occupation and type of housing represent class standing
Invidious distinction
We buy things to inspire envy in others through our display of wealth or power
Conspicuous consumption
People’s desire to provide prominent visible evidence of their ability to afford luxury goods
Age cohort
a group of consumers of the same approximate age who have similar experiences
Consumer identity renaissance
redefinition process people undergo when they retire
Acculturation
Five phases of adjustment: Honeymoon Culture shock Superficial adjustment Stress and depression Integration
Aspects of Culture
- Power Distance
- Uncertainty Avoidance
- Masculine versus Feminine
- Individualism versus Collectivism
Power Distance
Way members perceive differences in power when they form interpersonal relationships
Uncertainty Avoidance
Degreee to which people feel threatened by ambiguous situations
Masculine versus Feminine
Degree to which sex roles are clearly delineated
Individualism versus Collectivism
Extent to which culture values the welfare of the individual versus that of the group
Norms
Rules dictating what is right or wrong
Enacted norms
Explicitly decided on (e.g., green light equals “go”)
Crescive norms
Embedded in a culture and include:
Customs: Norms handed down from the past that control basic behavior
Mores: Custom with a strong moral overtone
Conventions: Norms regarding the conduct of everyday life
Functions and Structure of Myths
- Metaphysical
- Cosmological
- Sociological
- Physchological
Metaphysical and Cosmological
Metaphysical - Help explain origins of existence
Cosmological - Emphasize that all components of the universe are part of a single picture
Sociological and Psychological
Sociological - Maintain social order by authorizing a social code to be followed by members of a culture
Psychological - provide models for personal conduct
Sacred consumption
Involves objects and events that are set apart from normal activities that are treated with respect or awe
Profane consumption
Involves consumer objects and events that are ordinary and not special
Cultivation hypothesis
Media’s ability to distort consumers’ perceptions of reality
Advergaming
Gamers are more sophisticated and represent the general population
- gain viewers attention for much longer time
- Tailor games to specific products
- Flexibiltiy
- track usage
Types of Adopters
- Innovators (early adopters)
- Early majority
- Late majority
- Laggards
Types of Innovations
Continuous innovation Evolutionary rather than revolutionary Dynamically continuous innovation More pronounced change to existing product Discontinuous innovation Creates major changes in the way we live
Prerequisites for Successful Adoption
- Compatibility
- Trialability
- Complexity
- Observability
- Relative Advantage
Compatibility
Innovation should be compatible with consumers’ lifestyles
Trialability
People are more likely to adopt an innovation if they can experiment with it prior to purchase
Complexity
A product that is easy to understand will be chosen over competitors
Observability
Innovations that are easily observable are more likely to spread
Relative
Advantage
Product should offer relative advantage over other alternatives
Meme theory
an idea or product that enters the consciousness of people over time, such as tunes, phrases; “is that your final answer
Normal Fashion Cycle
- Innovation
- Rise
- Acceleration
- General Acceptance
- Decline
- Obsolescence
Three dimensions of global brands
Quality signal
Global myth
Social responsibility
Quality signal
Many assume that if a company has global reach it must excel
on quality.
Global myth
Consumers look to global brands as symbols of cultural ideals,
buying these brands to help them “bond” with like-minded people around the
world.
Social responsibility
People recognize that global companies wield extraordi-
nary influence—both positive and negative—on society’s well-being.
Creolization
Foreign influences integrate with local meanings
