MKTG 322 exam 2 - FLASHCARDS - Consumer well being and happiness (1)
What relates to the satisfaction derived from the consumption of goods and services, that is, to the satisfaction of needs?
Consumer well being
What is the idea that marketers are choice architects?
They are responsible for organizing the context in which people make decisions
What do choice architects do?
Choice architects try to influence people’s behavior in order to make their lives longer, healthier, and better
What is a nudge?
Any aspect of choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives
What are examples of a nudge?
- Putting healthy foods near the cashier
- Offering salad instead of fries
- Calorie labeling
- Simplifying the insurance form
- Opt-out default for retirement savings
- Text reminders to get flu shot
- Using graphic warnings
What are not examples of a nudge?
- Banning junk food
- Soda tax
- Mandate to force people to be organ donors
What are characteristics of a nudge?
• Nudges try to encourage good behavior (i.e., improve well-being)
• Nudges do NOT force people to do something
• Nudges preserve the freedom of choice
• Nudges should be easy and cheap to avoid
What is a sludge?
Makes a process more difficult in order to produce an outcome that is not in a consumer’s best interest.
What are frictions that nudges include?
- Waiting time
- Reporting burdens
- Dreary or duplicative application requirements
- Confusing administrative burdens
True or false: A nudge should be transparent and not misleading?
TRUE
True or false: Nudges should be easy to opt out of?
TRUE
True or false: Nudges should be implemented to improve the welfare of those being nudged?
TRUE
What is life’s most cherished goal?
Happiness
What are the two distinct measures of happiness?
Life satisfaction and moment-by-moment happiness
What are errors we make when estimating our happiness?
- Affective forecasting: we are not good at predicting our
future emotions and happiness. - Hedonic adaptation: we quickly adapt back to neutrality.
- Focalism: we make predictions on our reactions to a focal
event without considering other aspects of the situations.
What is affective forcasting?
The process of anticipating your future emotions (i.e., predicting how you would feel in the future
What do predictions include?
• Valence (whether the emotion will be positive or negative)
• Specific emotion(s) experienced (e.g., guilt, excitement)
• Intensity of the emotion(s)
• Duration of the emotion(s)
What is hedonic adaption?
Good and bad events temporarily affect happiness, but people quickly adapt back to hedonic neutrality
What is an example of focalism?
People tend to think that living in California would make them very happy. However, people in California are no happier than people living elsewhere
What are the consumer happiness insights?
- Invest in social connections
- Spend money on others
- Buy experiences
- Buy time
- Slow down hedonic adaption
What is Investing in social connections influenced by?
• Experiencing positive emotions together
• Being able to talk openly and feel understood
• Giving and receiving of support
• Shared activities and experiences
What is the effect of spending money on others?
People who spend more money on gifts to others and charity donations reported being happier, when controlling for income
What are experiences compared to material possessions?
More memorable
More likely to be part of a self-narrative
More likely to evoke emotions
More likely to be shared
More likely to foster social connectedness
What is slowing down hedonic adaption?
- Help consumers pace positive
experiences - Highlight smaller but frequent joys over bigger infrequent things [bracketing consumption]
