Test 1 Flashcards
What is consumer behavior
The study of individuals, groups, or organizations and the process they use to select, secure, and dispose of products, services, experiences or ideas to satisfy needs and the impacts that these processes have on the consumers and society
What are the four key tenets
- Successful business decisions require an understanding of consumer behavior
- Market research is a critical understanding consumer behavior
- Consumer behavior is a complex, multidimensional process
- Marketing practices designed to influence consumer behavior involve ethical issues
True or False: Brand marketing is the concept of building a differentiated, recognizable identity for your company.
True
The marketing role focused on driving customers into a company’s purchase funnel (the detailed steps in a customer journey from awareness to purchase), pushing them through that funnel until they make a purchase, and doing so in a cost-effective way.
Acquisition marketing
True or False: The conversion funnel is to move consumers from consideration to awareness to purchase.
False: Awareness, consideration, purchase
True or False: A marketer’s role relative to consumer behavior ends when the consumer selects a service or purchases a promoted product.
False
What is sense of self?
Both internal and external influences impact a consumer’s sense of self.
That sense of self is structured by an individual’s thoughts and feelings
about him or herself and how he or she lives.
What are external influences?
- Culture
- Reference Groups
- Marketing Messages
- Technology
This is likely the most significant external influence on a consumer’s behavior; includes values, norms, language, religion, cuisine, and social habits.
Culture
True or False: Brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.
True
Business people truly needing to understand when and why consumers act the way they do is:
the foundation of all strategies with which a company moves forward
True or False: Brand marketers seek to drive brand health, which is often defined as awareness and consideration of and affinity for a brand.
True
What are internal factors?
- perceptions
- personality
- learnings
- attitudes
What are the 4 steps of consumer process?
- Identify a need 2. Feel tension 3. Identify a goal 4. Taking action
What are motives?
The driving forces that compel people to act (the reason you choose to act or behave in a certain way)
What are needs?
Require to live your life?
Innate needs- biological
Acquired needs- learned in response to culture or environment
Steps of consumer motivation process?
Unfulfilled needs, tension, motives, action, needs fulfillment
Defining of brands
Companies define their brands in terms of the consumer needs they satisfy, not simply by the products they sell
What are the three facets of needs?
Needs are never fully satisfied
New needs emerge as old ones are satisfied
Frustrations with the inability to fulfill a need may generate the need for a defense mechanism
Maslow’s Hierarchy Needs
hierarchy of needs presents five layers, each containing a different type of need that humans strive to achieve-
Biological, safety, social, esteem, self actualization
David McClelland’s Human Motivation Theory
People’s actions stem from one of three types of motivations: achievement, affiliation, or power
Dichter’s Theory of Motivation
Core motivations that drive purchase behavior:
Power
Masculinity-virility
Security
Eroticism
Moral Purity or Cleanliness
Social Acceptance
Individuality
Status
Femininity
Reward
Mastery Over the Environment
Disalienation (a desire to feel connectedness to things)
Magic or Mystery
This states that consumers’ unconscious desires drive purchase decisions, and therefore, when marketing products and services, companies should appeal to those desires
Dichter’s Theory of Motivation
True or False: Innate needs are biological needs, such as food, water, air, clothing, and shelter.
True
True or False: Marketing innovation is defined as developing compelling marketing messages that highlight a product’s value proposition and differentiating factors.
False: Marketing communications
Marketing innovation- creating new products and services that appeal to these motives, needs, and goals
This is the governing body that reviews and regulates advertising materials to ensure that content is true and doesn’t overpromise.
Federal Trade Commission
According to the consumer motivation process diagram, which of the following is between “tension” and “action”?
Motivation
According to the text, savvy companies define their brands in terms of ________, not simply by the products they sell.
The consumer needs they satisfy
Which of the following is not one of the three facets of needs presented in the reading?
The variation among customer needs results in companies hyper-targeted messages
True or False: McClelland’s human motivation theory can be used to influence how managers set goals, provide feedback, and motivate and reward team members.
True
True or False: The state of mind you experience as you search for something to fulfill your need is your consumer framework.
False
True or False: Goal identification is part of consumer movement from identifying needs and motivations to purchasing products and services.
True
True or False: Goal identification is part of consumer movement from identifying needs and motivations to purchasing products and services.
True
Perception
The process by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world
Inputs into perceptions
Physical stimuli from the outside environment
People’s expectations and motives based on past experiences
What are stimuli?
Any unit of input to any of the senses
Taste, hearing, sight, smell, touch
Individual Impact
The combination of the two very different kinds of inputs that combine to create a consumer’s perceptions
Produce a very private, personal picture to the world
PRINCIPLES OF GESTALT (Unified Whole) PSYCHOLOGY
Understand how humans create
meaningful perceptions in a
world where they are often
bombarded by visual stimuli.
- Similarity
- Closure
- Proximity
- Figure and ground
Sensory Adaption
“Getting used to” or being less able to notice certain sensations in the environment around you
Ambush Marketing
Practice of placing ads in places where consumers don’t expect to see them or where they simply can’t avoid them
Experiential Marketing
Allows customers to engage with and interact with brands, products, and services in ways that appeal to multiple senses and often create emotional bonds between consumers and companies
Sensory Campaign Development
Create content and campaigns relevant to customers
Consider partnering with creators
Truly authentic
Stereotypes
Individuals carry biased picture in their minds of the meaning of various stimuli- destroy impressions
Perceptual Map
Diagrammatic technique used to visually display the perceptions of customers or potential customers
True or False: Physical stimuli from the outside environment is one of two primary inputs to perception.
True
True or False: Information search is not one of the first three stages of the consumer decision-making process.
False
True or False: Closure, a critical element of Gestalt psychology, deals with objects that are part of a visual design being perceived as a group or a pattern.
False- Proximity
A 16-ounce bottle of Dasani water might be placed next to a salad bar so consumers can grab a salad and water at lunch when they are on the go. This product placement exemplifies the Gestalt psychology element of ________.
Proximity
________ is the practice of placing ads in places where consumers don’t expect to see them or where they simply can’t avoid them.
Ambush Marketing
The first step in understanding how to create or change perceptions is to:
Understand the elements of perception that consumers use to understand the world around them
When it comes to problem recognition, in the case of __________, marketers can create advertisements that consumers hear and see so consumers realize they have an unmet need awaiting fulfillment and that a marketer’s product can fulfill that need.
External stimuli
True or False: An example of how stimuli affects marketing efforts is Snapple’s elimination of the plastic seal around bottle caps.
True
True or False: Perception is all about the objective reality of their environment — not consumers’ subjective understanding of the world around them.
False: Interpret stimuli into a meaningful and coherent picture of the world (internal influence)
Weak stimuli involves ________.
Consumers adding bias as a means of interpreting the stimuli
Critical Elements of consumer learning
Motivations- unfulfilled needs are the underlying drivers
Cues- stimuli suggest a specific way to satisfy motives
Response- the consumers’ reaction to a cue
Reinforcement- the reward
Behavioral Learning Theory
Defining the process of consumer learning in terms of an association between stimulus and a response
Three forms of behavioral learning that marketers rely on in their daily roles?
Classical conditioning
Instrumental conditioning
Observational learning
Classical Learning
Focuses on the automatic response that humans develop through repeated exposure and reinforcement (stimuli one = response)
Pavlov Theory
Classical learning when a stimuli combined with another stimuli generate a result (dog experiment)
- Repetition (messaging, advertising)
- Stimulation Generalization (product line extension, product form extension, brand extension)
Instrumental Conditioning
“Operant conditioning”
The learning of trial and error process
Observational Learning
Process by which humans learn by observing the behavior of others
Observational learning is more likely to occur in the following cases:
- We believe are warm or nurturing and in whose presence we feel
comfortable
* Who are in an authoritative position
* Who are similar to us in some way
* Whom we admire due to accomplishments or social status - When we view people getting rewarded for their behaviors or when you have been rewarded for similar behavior in the past
- When we lack confidence or a situation is confusing or unfamiliar
Cognitive Learning
Primarily concerned with how information is processed by the human mind: how it is stored, retained and retrieved. “Gathering the facts”
- Information processing
- Storing information
- Retaining and retrieving information
Factors that can affect a consumer’s ability to practice cognitive learning include their:
- Familiarity with the information
- Relevance of the information
- Interest in the information
- Ability to process the form in which the information is provided
Four cognitive learning core elements
- Cognitive effort
- Cognitive structure
- Information analysis
- Elaboration
Measuring Success
Recognition and recall measures
Brand Loyalty measures
Recognition Test
Marketers show an ad and asks if the consumer remembers it and what the brand, messaging, photos, and offers were
Recall Test
Marketers asks if a consumer can remember seeing an ad and what aspects of it can they remember
Brand Loyalty Measures
- Behavior measures observable, factual behaviors including how much and how often consumers purchase
- Attitudes measures include the consumer’s overall feelings about the brand and the degree of influence this feeling has on future purchases
Primary Data
new data that researchers must collect (focus groups, case analyses)
Secondary Data
Pre-existing data found through literature searches or data mining
Benefits of Primary Data
Tailored to specific research question
Variety of ways to find them
Help research questions besides yours in the future
Benefits of Secondary Data
Low cost
Available immediately or almost
Often easy to find
What are steps in research design?
- Choosing the objectives
- Choosing the type of research
- Developing the questionnaire
________ focuses on the automatic response that humans develop through repeated exposure and reinforcement.
Classical conditioning
________ based on the notion that learning occurs through a trial-and-error process (also called operant conditioning).
Instrumental conditioning
True or False: Cognitive learning is primarily concerned with how information is processed by the human mind: how it is stored, retained, and retrieved.
True
Motivation, cues, response, and reinforcement are all critical elements of ________.
Consumer Learning
True or False: Repetition as a strategic application is what also enables marketers to launch new product lines and product forms under the same brand name.
False
True or False: The short-term store within the human brain is a space where sensory input lasts for just a second or two.
False
Cognitive theorists believe that __________ is a complex mental process that happens because consumers make the conscious choice to process information and store that information in their brains.
Learning
In this type of test, researchers show consumers an advertisement and ask them if they remember seeing it and if they can remember any of its main points.
Recognition test
True or False: One of the primary differences between recall tests and recognition tests is that recall tests use unaided recall.
True
True or False: Both consumer behaviors and attitudes are critical components that marketers seek to measure regarding brand loyalty.
True
True or False: Both consumer behaviors and attitudes are critical components that marketers seek to measure regarding brand loyalty.
True
Consumer personality?
Uniquely individual- specific qualities, attributes, traits, factors and mannerisms that distinguish one individual from the next
Three principles
- Personality reflects individual differences
- Personality is generally consistent and enduring
- Although it is enduring, personality can change
Freudian Theory (personality)
Unconscious needs or drives - heart of human personality
Human personality consists of three interacting systems:
1. ID - instant gratification for wants / needs
2. Superego - cased on morals and values
3. Ego - compromise between the id and superego
Neo-Freudian Theory
It disagrees with Freudian theory’s foundational findings that personality is primarily driven by the id and, therefore, highly instinctual, impulsive and sexual in nature.
It posits that in addition to Freud’s concepts, social relationships play a crucial role in the development of personality.
Trait Theory
Focuses on identifying, describing and measuring the specific personality traits
Trait Theorists believe
- traits are stable over time
- differ across individuals
- primary driver of behavior
Personality Traits
Innovativeness vs. Dogmatism
Social character- traditional, inner
Need for uniqueness
Need for stimulation
Need for cogitation
Brand Personification
When marketers carefully craft the human traits or characteristics they would like to have associated with the brand
Why do marketers create brand personalities?
Create an emotional connection with consumers that drivers favorable attributes, higher purchase intentions and brand loyalty
In Freudian theory, this is an individual’s internal expression of society’s moral code.
Superego
______consist(s) of the inner psychological characteristics that both determine and reflect how consumers think and act.
Personality
Conclusions stemming from psychologists’ research into human personality have not been uniform, but, overall, researchers agree on three principles. Which is not presented as one of these agreed upon principles?
Since personality is individual, it is not consistent
This individual identified 16 personality traits that he used to understand and identify individual differences in personality.
Raymond Cattell
True or False: Based on the type of purchase they are exploring, consumers can fall into different categories of Karen Horney’s theory relative to groups of personality types.
True
True or False: Trait theory is not among the foundational aspects of customer segmentation.
False
Advertisements that focus on the personal benefits of product features tend to appeal to ________.
Inner- directed consumers
True or False: Need for cognition (NFC) measures consumers’ desire for information processing and ultimately, thinking.
True
True or False: According to psychologists who have explored the motivations behind consumer innovativeness, social factors are among the four main reasons consumers choose to accept and adopt new innovations.
True
True or False: An understanding of consumer personalities should form the foundation of a marketer’s positioning strategy.
True
Traditional- direct
Values and traditions
Inner-direct
Own values and how they should behave
Other-direct
Other people providing advice or guidance (group interactions)
What is an attitude object?
Motivates consumers to either buy or not buy particular products or brands - consistent with behaviors, they are often situational
Three Models of Attitudes
Elaboration likelihood model
Tri- component attitude model
Multi-attribute model
Elaboration Likelihood Model
Seeks to explain how humans process stimuli and how doing so may lead to effective attitude change
1. Central route
2. Peripheral
Tri- Component Attitude Model
Person adopts towards a product or service-
1. cognative
2. affective
3. conative
What factors are driving the consumer decision-making process?
- If cognative, rational product information up front, consumer likely to search
- If affective, appeal to emotions
- The conative, enable people to act “try before the buy”
Multi-Attribute Model
Portray consumers’ attitudes as function of their assessments of their attributes a product has ( behavioral or object model)
A consumer’s attitude toward a product is a function of:
- extent to which the product has or doesn’t have each of a set of attributes
- The consumer’s perception of the importance of each attribute
Why attitude toward behavioral model is important?
Captures an individual’s attitude toward taking action as it pertains to a specific product, not simply the person’s attitude about the product itself (purchase intentions)
Theory of Reasoned Action
A consumer’s intention to purchase is the most important predictor of if they will actually do so, and that intent must precede behavior.
Strong intentions lead to certain behaviors
Four functions that attitudes classify into?
- Utilitarian function (reward and punishments)
- Ego-defensive (protect from external threats)
- Value expressive (self concept)
- Knowledge (need to know, structure, meaning)
Part of the tri-component attitude model, the ________ represents the consumer’s emotions and feelings regarding the product or service in question.
Affective component
Part of the tri-component attitude model, the ________ reflects behavior, or the likelihood that an individual will take a specific action regarding the product or service in question.
Conative component
The ________ portrays consumers’ attitudes as a function of their assessments of the attributes a product has (or doesn’t have).
Multi-attribute model
True or False: The utilitarian function outlines that consumers’ attitudes reflect the value, or utility, that various brands actually provide.
False
True or False: In the context of marketing and consumer behavior, an “object” can be a product, brand, service, price, package, advertisement, or any other aspect of consumption.
True
The ________ seeks to explain how humans process stimuli (for example, marketing materials) and how doing so may lead to effective attitude change.
Elaboration Likelihood model
True or False: Consumers learn attitudes from a variety of sources ranging from direct experience to word of mouth to marketing.
True
True or False: Persuasion via the peripheral route occurs when a consumer is both motivated and able to process information.
False
True or False: If cognitive factors drive the consumer decision-making process for a particular product or service, marketers need to consider providing as much rational product information up front, in the places consumers are likely to search.
True
An advertisement that helps consumers understand that a V8 drink can provide three of the five recommended servings of fruits and vegetables per day appeals to this function.
Knowledge function
What are the 5 steps to the individual decision making process?
- Problem recognition
- Information search
- Evaluation of alternatives
- Produce choice and purchase
- Post purchase outcomes
Problem Recognition Phase
Occurs whenever the consumer sees a difference between how they feel today vs. how they would like to feel
A consumer’s problems stem from two factors?
A change in the consumer’s ideal and actual state
Information Search
Pre purchase search- search the marketplace for specific information to fulfill that problem
On going search- customers are often continually engaging information search, even through specific problem
Evaluation of Alternative Phases
Evoked Set
Inert Set
Inept Set
Evoked Set
Set of products you already know, stored in memory
Inert Set
Consumer is aware of but feels indifferent towards
Inept Set
Consumer would not consider for purchase bc they dislike these brands/products
Product choice and purchase
The conclusion or decision may have been made based on an emotional connection, rational evaluation of facts, or combination
Post Purchase Outcomes
Last step, take time to assess the purchase they made and internalize their feelings of satisfaction with the purchase
Areas of focus
Prioritization
Focused messaging
Interaction
The ________ is comprised of those product options that the consumer is aware of but feels indifferent toward.
Inert Set
True or False: Search Engine Optimization (SEO) is a marketing tactic focused on driving traffic to a website through the use of paid search ads.
False
True or False: Information search is the first step in the five-step model developed by researchers Engel, Blackwell, and Kollat.
False
True or False: A consumer’s problems stem from two factors: a change in the consumer’s ideal state and a change in the consumer’s actual state.
True
True or False: Pre-purchase search is characterized as consumers engaging in information search even though a specific problem has not yet arisen.
False
This is the set of products that you already know about, the options that are stored in your memory.
Evoked set
This set comprises the brands that the consumer would not consider for purchase because they dislike these brands or products.
Inept set
True or False: Cognitive dissonance can be spurred internally, as with a consumer’s own indecisiveness, but often it is external, like exposure to advertisements or sales for competing products or brands.
True
This is the middle stage of the five-step model of consumer decision-making developed by researchers Engel, Blackwell, and Kollat.
Evaluation of alternatives
Example of focused messaging?
Target’s price match guarantee messaging, assuring customers that the company would match prices if the customer found a lower price online or in a local store
Reference Groups
Sources of comparison, influence and norms for consumers’ options, values and behaviors
Where do reference groups receive their power?
Word of mouth (organic)
Membership groups
Primary- frequent interactions and often share their thoughts
Secondary- less frequent
Aspirational groups
Would like to be a part of but to which they do not currently or never belong
Anticipatory- decent chance of joining
Symbolic- unlikely to belong
Dissociative groups
A group that individuals avoid or deny connections with
Factors impacting reference group influence
Conformity
Product conspicuousness
Group’s power and expertise
Personality characteristics
Relevant information and expertise
Opinion Leadership
Process by which an influencer, or an opinion leader, influences peers (WOM)
Channels for driving positive brand awareness, consideration and purchase include
Social networks
User generated content
Consumer testimonials
Consumer socialization is:
The providing of children with the skills, knowledge, attitudes, and experiences necessary to function as consumers
True or False: A reference group serves as a source of comparison, influence, and norms for consumers’ opinions, values, and behaviors.
True
True or False: Since influencer marketing comes from sources who have nothing to gain by promoting brands’ products and services, it is seen as the “best advertising.”
False
________ groups are groups that consumers plan to join in the future and that they have a decent chance of joining due to direct contact with the group.
Anticipatory aspiration
A young corporate sales rep is taking a client to a restaurant. Which factor affecting a reference group’s influence over consumer purchase decisions is displayed when he seeks the advice of a friend or imitates the behavior of a more senior sales rep, a member of his reference group, by taking the client to a restaurant that is frequented by executives whom he views as role models?
Conformity
True or False: Reference groups achieve their power through word of mouth (WOM).
True
True or False: There are both primary and secondary membership groups.
True
________ are groups that an individual is unlikely to belong to despite the fact that they may accept and strongly believe in the group’s attitudes or closely held beliefs.
Symbolic groups
True or False: The degree of influence that a reference group exerts on an individual’s behavior depends on a number of factors, including the individual, the product choice at hand, and social factors.
True
