Midterm Flashcards
The study of consumers’ actions during searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs
Consumer behavior
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society
Marketing
The process of consumer decision-making consists of
The input, process, and output stages
Conceived by Henry Ford - stated that companies must make inexpensive cars, produced uniformly, and at the lowest possible costs
Production concept
A focus on the product rather than on the needs it presumes to satisfy
Marketing myopia
The process of dividing a market into subsets of consumers with common needs or characteristics
Market segmentation
The process by which a company creates a distinct image and identity for its products, services, and brands in consumers’ minds
Positioning
The disciplines that determine consumer behavior
Psychology, Sociology, Anthropology, and Communication
A promotional strategy that consists of tracking and targeting users across their computers, mobile phones, and tablets, and sending them personalized ads based on their interests, as observed by marketers
Cross-screen marketing
Loyal customers whose experiences with the company exceeded their expectations and who provide very positive word-of-mouth about the company to others
Apostles
Compares human societies’ cultures and development
Anthropology
Customers’ high levels of personal commitment and attachment to a company and its products that extend beyond individual transactions
Emotional bonds
A segmentation strategy based on the fact that many products are purchased and used in the context of specific occasions
Usage-occasion segmentation
Psychological abstracts that “reside” in consumers’ minds and cannot be determined numerically
Cognitive factors
Dividing consumers according to age, gender, ethnicity, income and wealth, occupation, marital status, household type and size, and geographical location
Demographic segmentation
A technique that allows advertisers to reach the right user, in the right place, at the right time, and also sets the price that advertisers pay for each “eyeball” or “impression”
Real-time bidding (RTB)
The division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either higher or lower status
Social class
Segmenting consumers according to their lifestyles, which consist of consumers’ activities, interests, and opinions (i.e., AIOs).
Psychographics
A widely used segmentation method that classifies America’s adult population into eight distinctive subgroups: Innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors.
VALS
A hybrid segmentation scheme based on the premise that people who live close to one another are likely to have similar financial means, tastes, preferences, lifestyles, and consumption habits
Geodemographics
A segmentation approach based on the benefits that consumers seek from products and services
Benefit segmentation
Measures designed to predict consumers’ future purchases on the basis of past buying information and other data, and also evaluate the impact of personalized promotions stemming from these predictions
Predictive analytics
Consumers using smartphones to scan the bar codes of products displayed in physical stores and then checking the items’ prices online in order to purchase them at the lowest prices
Showrooming
Promotional alerts sent to the smartphones of customers, who opted into this service, when the customers near or enter the store
Geofencing
Circumstances or things that are wanted or required, and therefore direct the motivational forces
Needs
The inner psychological characteristics that both determine and reflect how we think and act
Personality
Communicating human features of a brand in advertising
Brand personification
Motivational forces that are learned from our parents, social environment, and interactions with others
Psychogenic needs
Cognitive and behavioral ways of handling frustration in order to protect one’s self esteem
Defense mechanisms
A theoretical framework consisting of five levels of human needs, which rank in order of importance from lower-level (biogenic) needs to higher-level (psychogenic) needs. The theory states that individuals seek to satisfy lower-level needs before higher-level needs
Maslow’s hierarchy of needs
A research tool requiring respondents to interpret stimuli that do not have clear meanings, with the assumption that the subjects will “reveal” or “project” their subconscious, hidden motives into (or onto) the ambiguous stimuli
Projective techniques
A theory maintaining that unconscious needs or drives, especially biological and sexual ones, are at the heart of human motivation and personality
Freudian theory
The “warehouse” of primitive and impulsive drives—basic physiological needs such as thirst, hunger, and sex—for which the individual seeks immediate satisfaction without concern for the specific means of satisfaction
The ID
A personality trait representing one’s degree of cognitive rigidity—the opposite of being open-minded—toward information and opinions contradictory to one’s own
Dogmatism
A personality trait that reflects the degree to which a person likes novel, complex, and unusual experiences , or prefers simple, uncluttered, and calm existence
Optimum stimulation level (OSL)
A personality trait that reflects a person’s craving for or enjoyment of thinking and also plays a role in consumers’ use of the internet
Need for cognition
The process by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world
Perception
Any input to any of the senses
Stimulus
The lowest level at which an individual experiences a sensation
Absolute threshold
Getting used to high levels of sensory input and therefore less able to notice a particular stimulus
Sensory adaptation
The minimal difference that can be detected between two similar stimuli
Differential threshold
The minimal difference that can be detected between two similar stimuli
Just noticeable difference (JND)
States that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different
Weber’s law
Consumers’ heightened awareness of stimuli that meet their needs and interests and minimal awareness of stimuli irrelevant to their needs
Selective attention
A cognitive activity occurring when consumers subconsciously screen out stimuli that they find psychologically threatening, even though exposure has already taken place
Perceptual defense
Constructing a maplike diagram representing consumers’ perceptions of competing brands along relevant product attributes
Perceptual mapping
Physical characteristics of the product itself, such as size, color, flavor, or aroma
Intrinsic cues
Perceptual measure of the gap between customers’ expectations of services and their perceptions of the actual service delivered, based on five dimensions: reliability, responsiveness, assurance, empathy, and tangibility
SERVQUAL scale
The process through which consumers acquire knowledge from experiences with products and observations of others’ consumption, and use that knowledge in subsequent buying
Consumer learning
The driving force within individuals that impels consumers to act
Motivation
In learning, particularly in instrumental conditioning, it is a reward, in the form of pleasure, enjoyment, and other benefits, for a desired behavior. In consumer behavior, it is the benefits, enjoyment, and utilities that consumers receive from products purchased
Reinforcement
Sometimes referred to as stimulus-response learning because it is based on the premise that observable responses to specific external stimuli signal that learning has taken place
Behavioral learning
A form of behavioral learning stating that animal and human alike, can be taught behaviors and associations among stimuli through repetition
Classical conditioning
A recognition test, that measures the effectiveness of learning and communications, where consumers are shown ads and asked whether or not they remember seeing them and can recall any of their salient points
Aided recall
A form of behavioral learning based on the notion that learning occurs through a trial-and-error process, with habits formed as a result of rewards received for certain responses or behaviors
Instrumental conditioning (operant conditioning)
Offering the same product in a different form but under the same brand, which is a marketing application of stimulus generalization
Product form extension
The removal of an unpleasant stimulus and it strengthens the likelihood of a given response during the same or similar circumstances
Negative reinforcement
A theory whose premise is that the human brain is divided into two distinct cerebral hemispheres that operate together, but “specialize” in processing different types of cognitions
Hemisperic lateralization (split-brain theory)
Learning that occurs when people observe and later imitate observed behaviors
Observational learning (modeling)
The process during which consumers recode what they have already encoded, which often results in recalling additional relevant information
Data chunking
A learned predisposition to behave in a consistently favorable or unfavorable way toward a given object
Attitude
The most popular form of attitude scale, where consumers are asked to check numbers corresponding to their level of “agreement” or “disagreement” with a series of statements about the studied object
Likert scale
A measure consisting of a series of bipolar adjectives (such as “good/bad,” “hot/cold,” “like/dislike,” or “expensive/inexpensive”) anchored at the ends of an odd-numbered (e.g., five- or seven-point) continuum
Semantic differential scale
It represents the likelihood that an individual will behave in a particular way with regard to the attitude object
Conative component
An advertising appeal where marketers proclaim that their products are better than competing brands named in the ads
Comparative advertising
A model stating that a consumer’s attitude toward a product or brand is a function of the presence of certain attributes and the consumer’s evaluation of those attributes
Attitude-toward-object model
A model stating that a consumer’s attitude toward a specific behavior is a function of how strongly he or she believes that the action will lead to a specific outcome
Attitude-toward-behavior model
An approach to studying attitudes referring to cases where positive attitudes lead to actions, although the personal and environmental impediments that the person faces may (or are even likely) to prevent the desired outcome
Theory of Trying to Consume
A promotional approach maintaining that that highly involved consumers are best reached and persuaded through ads focused on the product’s attributes
Central route to persuasion
The mental discomfort that people experience when facing conflicting information about an attitude object
Cognitive dissonance
Purchases that are very important to the consumer and provoke a lot of perceived risk, and extensive problem solving and information processing
High-involvement purchases
A strategy aimed at changing attitudes where a large and costly first request—that is likely refused—is followed by a second, more realistic, and less costly request
Door-in-the-face technique
