Chapter 5 Flashcards
(21 cards)
What is Drive Theory?
When we are out of balance, we will be motivated to come back to Homeostasis.
What is Homeostasis? And how is it linked to Retail Therapy?
A desired state where things are normal and balanced. Retail Therapy is where the act of shopping restores a sense of control and alleviates undesired feelings.
EX: This is why when people feel like life is out of control, they’ll go shopping because it makes them feel in control. The problem is that it’s short lived.
What are Implementation Intentions?
We specify in advance how we want to respond in certain situations
EX: a brand may remind or nudge users to implement a habit using their product. It’s turning intent into action
What are the two types of motivation?
- Promotion Motivation –> this is focused on hopes and aspirations.
EX: I want to walk 10k steps per day
- Prevention Motivation –> focuses on responsibilities and duties
EX: I want a bike helmet so I can prevent injury
What are Utilitarian Needs?
EX: I have a stain on my clothes and I want to remove it using Tide Pen.
EX: I have a headache so I need medicine.
What are Hedonic Needs?
These are subjective and experimental “wants” so we look for products that meet those wants for multisensory, fantasia, and emotional interactions.
EX: You go to a concert or Disney World for the thrill
EX: You go to a certain store for the experience of going aka Barnes and Noble!
How Can Maslow’s Hierarchy of Needs Be Used?
It can help marketers understand why people buy what they buy based on their needs. It can also help segment the market based on where customers are at on the hierarchy.
Physiological, Safety, Social, Esteem, Self-Actualization, and Self-Transcendence
EX: If someone is in the self-actualization phase, they are searching for self-help books, online courses and creative tools.
What is the Self-Determination Theory?
Humans are intrinsically motivated by the innate physiological needs for Autonomy, Relatedness, and Competence.
Need to Belong - participating in team sports, bars, workout classes
Need For Power - luxury resorts
Need for Uniqueness - Fenty Beauty disrupting the beauty industry by releasing products in 50 shades
What is the Fresh Start Mindset?
The concept that people can start fresh and create a new reality fo themselves.
How is setting and Reaching Goals relevant to consumer behavior?
Setting goals is the best way to motivate people to achieve goals. This is why brands create products that help people acheive certain goals.
EX: Launching a preworkout powder to help consumers reach their goal of becoming more fit
Goal Conflicts: What is Approach-Approach?
Choosing between two desirable alternatives
EX: You are at a restaurant and you order the Alfredo but then someone orders the hamburger and now you want that instead.
Goal Conflicts: Approach-Avoidance
You want to have something, but it has a downside (want to avoid it).
EX: I want to visit my best friend in CA again but I don’t want to spend the money.
Goal Conflict: Avoidance-Avoidance
You are faced with two undesirable alternatives.
EX: I don’t want to take the flu shot but I don’t want to get the flu.
What is a Reference Point?
It is a specific goal - “where you think you should be.”
Marketers provide this “end state” whether it be through campaigns or product messaging.
What is Consumer Involvement?
A person’s level of interest, emotional investment, and relevance to the object is based on their inherent values and interests.
EX: Low involvement - purchases with low risk, routine often based on habits, brand recognition, and convenience. Water bottles.
EX: High involvement - purchases with high risk and are important, expensive, or meaningful. Car, new laptop, and choosing a university.
What is Inertia?
Describes consumption during low involvement, where we make decisions out of habit because we lack the motivation to consider alternatives.
What are cult products?
Products that command fierce loyalty from consumers. Consumers will buy this product even if the price is higher sometimes.
What are the four strategies to increase product involvement?
- Mass Customization - personalization of goods for individual customers at a mass production price
- DIY - doing activities ourselves increases product involvement (it’s related to the Endowment Effect)
- Co-Creation - the company works wth customers to create value
- Gamification - applying gaming principles like friendly competition and earning badges dramatically increases involvement
What are the 5 types of perceived risk?
- Monetary Risk (high ticket) - buying a $2000 Macbook
- Functional Risk (exclusive commitment) - subscribing to a years worth of corepower
- Physical Risk - using an electric scooter sans helmet
- Social Risk (visible to public) - wearing off brand clothes and risk feeling out of place
- Psychoogical Risk (personal luxuries that lead to guilt) - spending $500 on a spa day instead of being productive
What is Situational Involvement?
Engagement with a store, website or location where people consume a product or service
How do you increase Situational Involvement? (3 ways)
- Personalization - At Dunkin a person who orders a morning coffee sees an ad for hashbrowns at the register
- High Tech - point of sale is a great place to bring in AR or VR
- Subscription Boxes - FabFitFun or Book of The Month offer goodies on a regular basis to consumers who subscribe. This also includes Spotify and other streaming services!
EX: Restoration Hardware has 2 tiers of customers. Members and non-members. If you want better prices, become a member.
