Midterm exam 2 Flashcards
Factors influencing consumer behavior
- Cultural: Culture, Subculture, Social class.
- Social: Reference groups, Family, Roles and Status.
- Personal: Age, Occupation, economic situation, Lifestyle, Personality and Self-concept.
- Psychological: Motivation, Perception, Learning, Beliefs and attitudes.
Cultural factors
- Culture: is the learned values, perceptions, wants and behaviors from family and other important institutions.
- Subculture: is the way of life of a group within a society, which are different from others.
- Social class: is society’ ordered divisions whose members share similar values, interests and behaviors. Measured by combination of occupation, income, education, wealth, etc.
Social factors
Reference groups: are groups that form a comparison or reference in forming attitudes or behavior.
The buyer decision process
- Need recognition: buyer recognize a problem
- Info search: sources of info (personal, commercial, public, experiential sources)
- Evaluation of alternatives: how buyer processes info to arrive at brand choices
- Purchase decision: act of buying the most preferred brand
- Post-purchase decision: satisfaction or dissatisfaction towards purchase.
4 Types of buying decision behavior
- Complex buying behavior: highly motivated in a purchase and perceive significant differences among brands. eg. Product is expensive or risky.
- Dissonance reducing buying behavior: High involv, few differences between brand. Consumer avoid negative info about the brand purchased.
- Variety-seeking buying behavior: Low involv, significant brand differences. Low brand loyalty.
- Habitual buying behavior: eg. bread. Low involv, little significant brand difference.
Diffusion of innovation theory: Individual differences in innovation
Innovators: willing to take risks, have highest social status and financial liquidity
Early adopters: opinion leaders, adopt new ideas early but cautiously.
Early majority: deliberate and adopt new ideas before the average person.
Late majority: skeptical, adopt new ideas only after he majority of people have tried it.
Laggards: suspicious, adopt ideas only when they become tradition.
Positioning strategy
- Price positioning strategy: Low-price (convice consumers that they are receiving more value for their money); High price (convince consumers they are receiving superior quality for a worth price)
- Quality positioning strategy: using exceptional parts and materials, and committing minimal defects.
- Restricted distribution strategy: only available at certain stores at high prices.
- Benefit positioning strategy: highlight benefits of product or service to the customer.
- Problem and solution positioning: present brand as solution to customers problems. eg. Banks, insurance.
- Competitor positioning strategy: demostrate superiority amonst competition. eg. Galaxy vs iPhone.
Marketing mix
- Product: three levels (Augmented, actual, core product)
- Price:
- –Price penetration (stimulate market and sales growth by offering products at low prices)
- –Price skimming (setting high price for a new product and the reducing its price, eg. Playstation)
- Promotion: Advertising Strategy guides
- Place
Advertising Strategy guides: FCB Grid Model
Informative: High involv., Thinking. Learn-Feel-Do.
Affective: High involv., Feeling. Feel-Learn-Do
Habit Forming: Low invol, Thinking. Do-Learn-Feel
Self-Satisfaction: Low invol., Feeling. Do-Feel-Learn
Advertising Strategy guides: ROI Model
Relevance: the message was important and gave me good reasons to buy the product.
Originality: ads are similar to others
Impact: I got high emotionally involved in this ad.
Advertising Strategy guides: Standardization vs Adaptation
Standarization:
- Pro: Economies of scale in production, Consistent image, simplification of ad control.
- Contra: Cultural differences, regulations
Adaptation:
- Pro: greater levels of customer satisfaction, minimize negative impacts of cultural issues.
- Contra: High costs, slow implementation of marketing strategy, inconsistency of brand image
Ad creative Strategy
- Generic message strategies (focus on selling the category rather than the specific brand)
- Pre-emptive messages: be the first to make a claim about ur product.
- Unique selling proposition: something unique about your product that other do not offer.
What is digital media?
- devices, which store digitized info.
- digital interfaces and platforms connecting human users to info and content.
Traditional media vs Digital media
Traditional media:
- every medium has a specific function
- heavy users of some are light users of others
- content travel with limited disruption
- media attributes based on functional benefits
Digital media:
- media are becoming similar.
- media collaborate each other.
- content become more valuable than the media, themselves.
- media attributes based on emotional connections.
Types of digital advertising
- Native ads: Paid content, must provide the kind of info that the publication’s audience typically expects.
- Search engines ads: involves the promotion of websites by increasing their visibility in search engine results pages.
- Social media ads: allows reach, spread, exchange, record and track info at any moment.
Rethinking customers
Broadcast/ content generator: they post and share picture, videos, thought and info.
Nodes of networks: nodes of social network and virtual communities.
Digital marketing strategies: Paid/ owned/ earned media framework
- Paid media: Brand pays to leverage (aprovechar) a channel.
- Owned media: you leverage a channel you create and control. eg. blog
- Earned media: when consumers become the channel of your brand. eg. via word of mouth
Digital marketing strategies: Gamification
The application of typical elements of game playing in order to drive participation and engagement with the product. customer=gamer
What is a crisis?
The perception of an unpredictable event that threatens important expectancies of stakeholders and can seriously impact an organization’s performance and generate negative outcomes.
Crisis management
it is the process that are allocated to manage unexpected incidents that threat organizations, individuals, etc.
Crisis stage models: Five stage model for crisis management. (Mitroff, 1994)
Signal detection: seek warning signs of crises
- > probing and prevention: active search and reduction of risk factors
- > damage containment: actions taken to limit crises spread
- > recovery: effort to return to normal operations
- > learning: review and learning from it.
Crisis stage model: Three-stage model
Pre-crisis: includes all aspects of crisis preventions
- > Crisis impact: steps taken to cope with and respond to the crisis event.
- > Recovery: the postcrisis stage begins when the crisis is resolved
Crisis communication
The exchange of information among interested parties about the nature, magnitude, significance, and control of risks.
Crisis Communication theory: Image restoration theory (IRT)
- It focuses on reputation (image) and how this can be repaired after an
attack. - It combines elements from rhetoric studies (apologia/justification) and interpersonal communication.
IRT: Five categories of image repair strategies (message options)
- Denial: cut connection between the crisis and organization.
- Evading responsibility: accepting some connection to crisis, but deny/ reduce accountability.
- Reducing offensiveness: makes the crisis “look better” for the organization
- Corrective action & mortification: offer compensation and ask for forgiveness
Crisis Communication theory: Situational crisis communication theory (SCCT)
- People search for causes of negative and unexpected events.
- Cause is attributed to either the person involved in the event or circumstances surrounding the event.
SCCT: Three categories of crisis types
- Victim crises: very weak responsibility
- Accident crises: minimal crisis responsibility
- Intentional (preventable) crises: strong crisis responsibility
Crisis Response Strategies in SCCT
- Denial posture: cut connections between organization and crisis.
- Diminishment posture: reduce negative effects of the crisis.
- Rebuilding posture: improve the organization reputation
- Bolstering posture: build positive connection between organization and public
