Midterm (Chapter 1-4) Flashcards
1
Q
What is consumer behaviour?
A
The study of the processes involved when individuals or groups select, purchase, use, or dispose, of products, services, ideas, or experiences to satisfy needs and desires
2
Q
What are the two ways to find out about customers?
A
Primary research and secondary research
3
Q
What is primary research?
A
When data is collected by the researcher specifically for the research question at hand
More expensive, time-consuming
4
Q
What is secondary research?
A
When the researcher uses pre-existing data to answer a new research question
There is existing data out there, you use that to aid in your research
Cheaper, easier, faster, not always the most accurate or newest information, can be outdated
5
Q
What are examples of sensory stimuli?
A
Sights, sounds, smells, tastes, textures
6
Q
What are examples of sensory receptors?
A
eyes, ears, nose, mouth, skin
7
Q
What was consumer behaviour referred to as before it was called consumer behaviour?
A
Buyer behaviour
8
Q
Is consumer behaviour an ongoing process?
A
Yes
9
Q
Did people who study consumer behaviour always think that it was an ongoing process?
A
No
10
Q
What does “the exchange” refer to in marketing? (old definition)
A
two or more organizations/people give and receive something of value
this is an important part in marketing
11
Q
What does the new definition of “the exchange” include?
A
It now includes the entire consumption process (before, during, and after the purchase)
12
Q
What is the ultimate test of whether a marketing strategy will succeed or not?
A
Consumer response
13
Q
What is marketing segmentation?
A
Identifies groups of customers who have similar traits then devises marketing strategies that appeal to one or more of the groups
14
Q
What is the 80/20 rule when segmenting customers?
A
20% of users account for 80% of sales
15
Q
What are examples of how you could segment the market?
A
age, gender, ethnicity, geography, lifestyles…
16
Q
What is relationship marketing?
A
making an effort to interact with customers on a regular basis.
This gives them a reason to maintain a bond with the company over time
17
Q
What is database marketing?
A
tracks specific consumers’ buying habits very close to crafting products and messages to those people’s wants/needs
18
Q
What are some of the types of relationships someone might have with a product
A
Self-concept attachment (helps people establish their identity)
Nostalgic attachment (link with past self)
interdependence (part of daily routine)
Love (emotional benefit, positive feelings)
19
Q
What is consumer-generated content?
A
consumers voice their opinions about the product, or brand. (on social networks primarily)
20
Q
What is the meaning of consumption?
A
people often buy products not for what they do, but for what they mean
20
Q
What is the “global consumer”
A
a common devotion to a brand name, movie star, or celebrity unites people worldwide.
20
Q
What do we owe the possibility of the global consumer to?
A
the interconnectedness provided by technology
social media, the internet…
21
Q
What is U commerce?
A
the use of ubiquitous networks (things that are found everywhere)
Example: activewear technology with customized advertisements on your watch
21
Q
What has helped make consumer-to-consumer sales easier?
A
virtual consumption (electronic marketing)
Example: etsy
22
What is the horizontal revolution?
how information flows through the internet. it used to go from big companies to users. Now it flows across people as well.
23
What are synchronous interactions?
real-time interactions
Example: texting someone, you are able to respond and have a conversation
24
What are asynchronous interactions?
interactions that don't require everyone to respond immediately
25
What does "culture of participation" mean
the ability to freely interact with other people
26
What are business ethics?
rules of conduct that guide actions in the marketplace
People's standards: what people think is right and wrong, good or bad.
27
What is a code of ethics?
Organizations will create their own code of ethics that provides guidelines for how to conduct yourself
28
What is an example of what would be in the code of ethics of a business?
Avoid false or misleading advertising
29
What is culture jamming?
The aim is to disrupt the efforts of corporations that try to dominate the cultural landscape
30
What is green marketing?
marketers offer products in ways that are less harmful to the environment and position the brand on the basis of sustainable attributes
31
What is social marketing?
Marketing techniques to encourage positive behaviours such as increased literacy, or discourage drinking and driving.
32
What is consumer addiction?
profit from selling addictive products or by selling solutions to addiction
33
What is compulsive consumption?
consumers shop because they feel compelled to do so
Often repetitive, excessive, done for anxiety, depression, or boredom
34
What are three things to look for to identify destructive consumer behaviour?
Not engaged in by choice
Gratification derived from the behaviour is short-lived
Strong feelings of regret or guilt afterward
35
What does the term shrinkage mean?
inventory and cash losses from shoplifting and employee theft
36
Who is shoplifting most common for?
3/4 of those caught are middle/high-income individuals
It is also common among adolescents
37
What is anticonsumption?
rebelling against the idea of consumption itself
38
What are examples of anticonsumption?
Most commonly known as boycotting a particular brand
Could also be: product tampering or graffiti on buildings
39
Why would one use projective techniques?
If they want consumers' subjective reactions to things like brand names, colours, and advertising images
40
How are projective techniques done?
Consumers are asked to explain or interpret ambiguous objects or activities
Some cases have consumers reporting the words that come to mind quickly
41
When would a researcher use experiments?
if a researcher wants to make cause-and-effect claims
42
What are humans' external stimuli?
Sight, hearing, feel, taste, smell
43
Can external stimuli trigger internal sensory?
Yes
Example: hearing a song and reliving a moment
44
Do colours influence your emotions?
Yes
45
Do colours have different meanings in different cultures?
Yes
46
What factors affect humans' response to color?
Age
Sex
47
What is a company's trade dress?
The colors that are strongly associated with a particular company
Example: Yellow and Red for McDonalds
48
What system do we use to process smell cues?
Limbic system
49
What is sound symbolism?
The way a word sounds influences our assumptions about what it describes
Example: People are more likely to recognize brand names that start with a hard consonant (K, P...)
50
What happens when customers are able to touch and interact with a product? (with regards to attachment)
It creates a greater level of attachment, increasing what they are willing to pay for it
51
What is the endowment effect?
When customers ascribe more value to something simply because they own it
52
What is Kansei engineering?
A philosophy that translates customers' feelings into design elements
53
What is "exposure" in terms of stimuli?
When a stimulus comes within range of someone's sensory receptors
Indicating they have the potential to notice it
54
What does "absolute threshold" refer to? (sensory)
the minimum amount of stimulation that can be detected on a sensory channel
55
What does differential threshold refer to? (sensory)
the ability of the sensory system to detect changes in a stimulus or differences between two stimuli
56
What does "just noticeable difference" (JDN) mean?
the minimum change in a stimulus that can be detected
57
What relationship is known as Weber's law?
the amount of change to be noticed is related to the original intensity of the stimulus
The stronger the initial stimulus, the greater the change must be for it to be noticed
58
What is the minimum markdown a retailer should make for a sale item to have an impact on shoppers?
20%
59
What is subliminal perception?
the perception of stimuli that are below consumer consciousness
60
Does subliminal perception have any effect on consumer behaviour?
There is no proof that it does have any effect.
61
What does "attention" refer to? (sensory perceptions)
the extent to which the brain processing activity is devoted to a particular stimulus
62
What does sensory overload mean?
being exposed to far more information than you are willing or able to process
63
What is guerrilla marketing?
using communications that are unexpected and unconventional in ways that target customers in unexpected places
64
What is the process called where consumers will select a small portion of stimuli to attend to?
Perceptual selectivity
65
What can cause consumers to be more aware of specific ads (what change)?
Consumers are more likely to be aware of ads that relate to their current needs
you begin shopping for a car, you become a lot more aware of car ads even though they have always been there.
66
What is perceptual defence?
People see what they want to see
People don't see what they don't want to see
A heavy smoker blocking out the negative effects
67
What is the adaptation factor affecting exposure?
How often you continue to notice a stimulus over time
The adaptation process occurs when you no longer pay attention to stimulus because it is so familiar
68
What can increase awareness of stimuli?
The contrast
Stimuli that differ from others around them are more likely to be noticed
69
What is perceptual defence? (a factor for why personal selection occurs)
removing yourself from a situation if you disagree with what is being said
Political ads, you may just walk away because you disagree
70
What is the principle of closure?
Implies that consumers tend to perceive an incomplete picture as complete
71
What is the principle of similarity?
Consumers tend to group together objects that share similar physical characteristics
72
What is the principle of figure-ground?
there are two versions to look at
Everything around the focus
73
What is an example of positioning a brand by product attributes?
BMW by performance
Volvo by safety
73
What is an example of positioning a brand by usage occasion?
Orange juice is not just for breakfast anymore
74
What is an example of positioning a brand by users?
Johnson & Johnson baby shampoo
75
What is an example of positioning a brand by its competitors?
7-up is the un cola
People think of 7 up as what it is NOT
76
What is learning?
A relatively permanent change in behaviour that is caused by experience
77
What are behavioural learning theories?
Assume that learning takes place as the result of responses to external events (as opposed to internal thought processes)
78
What is classical conditioning theory (under behavioural learning theory)?
This occurs when a stimulus that naturally elicits a response is paired with another stimulus that initially does not elicit a response. Overtime the second stimulus causes a similar response
Ring bell paired with feeding the dog, after a while a bell ring will make the dog hungry
79
What is the name for the dog bell example?
Pavlov's experiment
80
What is an unconditioned stimulus? (UCS)
Something naturally capable of causing a response
(food causing hunger)
81
What is a conditioned stimulus? (CS)
It does not initially cause a response, but eventually, it is associated with an unconditioned stimulus
82
What is an unconditioned response? (UCR)
an automatic response to a stimulus
You smell food and begin getting hungry (getting hungry is the unconditioned response)
83
What is a conditioned response? (CR)
it is a learned response to a previously neutral stimulus.
You hear a bell and begin getting hungry
84
What is advertisement wear out?
When consumers become so used to hearing or seeing a marketing stimulus that they no longer pay attention to it
85
What is instrumental conditioning?
occurs as the individual learns to perform behaviours that produce positive outcomes and to avoid behaviours that yield negative outcomes
86
Who is associated with instrumental conditioning?
B.F. Skinner
87
What is positive reinforcement?
When provided a reward the response is strengthened and appropriate behaviour is learned
88
What is negative reinforcement?
This also strengthens responses so that appropriate behaviour is learned
Removes something negative in a way that increases a desired response
Retailers offering to pay for the customer, removing a negative stimulus and encouraging more purchases
89
What is a punishment? (instrumental conditioning)
when a response is followed by an unpleasant event
We learn not to repeat behaviours
90
What is frequency marketing?
reinforces the behaviour of regular purchases by giving them prizes with values that increase along with the amount purchased
91
What does gamification mean?
Using basic principles of game mechanics to motivate customers' behaviour (increasing customer engagement)
92
What is a fixed ratio reinforcement?
reinforcement occurs only after a fixed number of responses
Buy 9 coffees and get the 10th one free, this is a fixed ratio reinforcement
93
What is variable ratio reinforcement?
behaviour of a person is reinforced after a certain number of responses, but the person doesn't know how many responses are required.
Tim Hortons roll up the rim
94
What is fixed interval reinforcement?
After a specified time period has passed, the first response that is made brings the reward
Customers crowd a store for a seasonal sale, but won't return until the next sale
95
What is variable interval reinforcement?
The time that must pass before reinforcement is delivered varies around some average. the person doesn't know when to expect the reinforcement
a loyalty club member that gets mailed a coupon every 8-10 months
96
What is observational learning?
Happens when people watch the actions of others and note the reinforcements
97
What is the memory role in learning?
Involves a process of acquiring information and storing it over time so that it will be available when needed
98
What is the encoding stage of learning?
Information from short-term memory is entered into long-term memory in a recognizable form
99
What is the storage stage of learning?
Knowledge is entered in long-term memory is integrated with what is already there and warehoused until needed
100
What is the retrieval stage of learning?
Desired information is accessed from long-term memory
101
What is sensory memory?
temporary storage of sensory information
duration: 1 - a few seconds
Capacity: high
102
What is short-term memory?
Brief storage of information currently being used
Duration: less than 20 seconds
Capacity: limited
103
What is long-term memory?
Relatively permanent storage of information
Duration: long/permanent
Capacity: Unlimited
104
What is a schema?
a cognitive framework that is developed through experience
Information that is consistent with an existing schema is encoded more readily
105
What are two reasons we forget?
Decay over time
Inference, new information replaces old information
106
Why might a marketer use nostalgia marketing?
Products can be memory markers, attaching our emotions and happiness to that product from our past
Ads that make us reflect on our past tend to make us like the ad more (when the nostalgia experience and the brand are strong)
When our sense of the past is threatened, a consumer's current identify is challenged
107
What is nostalgia?
bittersweet emotion, where the past is viewed with both sadness and longing
"the good old days"
nostalgia products can connect customers to their own memories of the past
108
Why do younger people like nostalgia marketing too?
Younger people look for cleaner, simpler, more authentic lives
109
What is a retro brand?
an updated version of a brand from a prior historical period
110
If someone is able to recall a product placement, does that mean that they are going to buy that brand?
No
111
What is the definition of a response bias?
You are measuring a certain thing, but another thing is causing the answers.
You are asking someone's preference for food and they are really hungry, so they rate all food highly
112
What is the definition of a utilitarian need?
It is a functional or practical benefit
Example: someone wants a lower cost for something
Very objective
113
What is the definition of hedonic need?
An emotional need
Example: I want to belong, I want to feel premium
114
What reflects people's motivation to attain something?
The degree a person is willing to expand their energy to reach a goal
115
What results from the gap between where you want to be vs where you currently are?
Tension/dissonance
116
What is drive theory?
Trying to get away from an unpleasant state by restoring physiological balance
motivated to reduce the tension
117
What is an example that is counter to drive theory?
Forgoing eating because you have a lavish dinner later, so you deprive yourself of snacks
118
What is expectancy theory?
behaviour is largely pulled by expectations of achieving desirable outcomes
Our behaviours are guided by thoughtfulness
We do certain behaviours because we expect them to achieve more positive results
119
What does Maslows pyramid of needs demonstraight?
Satisfaction does not motivate behaviour, dissatisfaction does
You must satisfy basic needs before you satisfy higher-level needs.
Must obtain food and water before the need for belonging.
120
What is approach-approach conflict?
a person must choose between two desirable alternatives
Someone torn between going to Flordia for a holiday or going to Europe... both are good options and positive.
121
What is approach-avoidance conflict?
Talking about the same product, it has good appeal but also has something that draws you away
Desiring a goal but wanting to avoid it at the same itme
Example: dream job that doesn't pay well, wanting to eat chips but feeling guilty
122
What is avoidance-avoidance conflict?
Consumers have to choose between two undesirable alternatives.
Example: doing an expensive repair on their current car or buying a new car
123
What is the definition of "involvement"?
a person's perceived relevance of the object based on their inherent needs, values, and interests
124
What does high involvement entail?
expensive, risky, bought infrequently
Example: buying a house, buying a car. big decisions that you put a lot of time and thought into
125
What do low-involvement decisions entail?
Usually cheaper, frequent, low-risk, boring
If you make the wrong choice, it's okay because it doesn't have a long-term effect, you'll be able to fix it in the short term
Example: trying a new drink at Starbucks, if you don't like it you will be able to try a new one tomorrow.
126
What is the definition of affect?
The experience of emotionally laden states, from full-blown emotions to moods, to evaluations
127
What are evaluations?
Both positive and negative moods, are not accompanied by high levels of arousal
128
What are moods?
Temporary positive or negative affective states accompanied b moderate levels of arousal
129
What are emotions?
More intense, often related to a specific triggering event, positive and negative
130
