Exam Study Flashcards

Question

Explain hemispherical lateralisation

Answer 1

Hemispheral lateralisation = split brain theory - The right and left hemispheres of the brain ‘specialise’ in the kinds of information they process - >Left is primarily responsible for cognitive activities (reading, speaking) whereas the right is responsible for non-verbal, timeless and holistic information - > Products mean different things to different people, and consumers see them as varying in their importance and personal relevance and as such form differing attachments to them

Answer 2

1. ANTECEDENT - serve to drive a consumers involvement towards an advertisement or advertised product -> person component = captures the amount of interest a consumer has in the product category ...if the product is personally relevant for consumers, they are more likely to become involved in information about that product eg. higher-knowledge consumers generally are more involved in that product category ->situation component = captures the importance or personal relevance of the occasion the consumer faces ....if the product is to be used as a tool for communicating something about yourself to others, involvement will probably increase eg. if you are presenting a bottle of wine to your boss upon arrival at a dinner party, you will be more likely to involve yourself with product information than if the wine is intended for a casual dinner at home -> product/stimulus component = captures the aspects of the product category or advertisement that could potentially encourage or discourage involvement ...to the degree that there is perceived risk involved in the consumption of the product, involvement is expected to increase eg. more expensive products are suually more involveing because of the financial implications of a wrong decision ....if one of the objectives of the ad is to encourage the involvement of relatively uninvolved consumers, the stimulus designed to increase involvement should be included in the tagline or photo (as this is where most time is spent looking) 2. MODERATING FACTORS - certain conditions may exist that limit the degree to which consumers become involved in a product category even though they may be predisposed by the antecedents to a high level of involvement -> opportunity to process the information: other cognitive demands or distractions in the environment during presentation of the information ....other tasks may be of more immediate importance and therefore inhibit a higher level of involvement with the stimulus eg. driving past a billboard during peak hour traffic -> ability to process the information: whether the consumer possesses the required knowledge and familiarity with the product category to understand the information presented 3. DEGREE OF INVOLVEMENT -characterised by intensity, direction and persistence -> involvement intensity = the degree of involvement felt by the consumer (high/low) – continuum -> Direction of involvement = target of the involvement intensity level or the stimulus towards which the involvement is channeled, not the cues initially encouraging involvement ....Eg. tagline in an advertisement might have been the catalyst for involvement with the information, but then you become involved in the text itself ->Involvement persistence = the duration of involvement intensity ....Enduring type of persistence usually accompanied by a large body of knowledge about a product category acquired over time ....Situational type will be accompanied by a short-term collection of knowledge about the product category, which might quickly fade after the situation abates

Answer 3

= Shows how involvement can influence information search and processing - Two routes to problem solving: ->Central: careful evaluation of information and products (high), attitude change depends on quality of argument-> For high involvement purchases .....Marketers should use arguments stressing the strong, solid, high-quality attributes of their purchases -> Peripheral: limited info search and evaluation (low), attitude change relies on peripheral cues (eg. celebrity or cartoon used in advertising) ..... Marketers should focus on the method of presentation rather than content of message (eg. use of celebrity, highly visual or symbolic advertisements) - Level of involvement determines which route is likely to be effective - Individuals are more likely to weigh information about a product carefully and devote considerable cognitive efforts to evaluating it, when they are highly involved wioth the product category

Answer 4

= learned predisposition to behave in a consistently favourable/unfavourable way with respect to a given object According to the tricomponent attitude model, attitude is made up of Cognitive component = thinking, captures the knowledge an individual has acquired through personal experience or observation with the attitude object and realted info from various sources - Often takes the form of beliefs: positive or negative - Object possesses certain attributes (eg. Vans don’t provide good arch support) - Using an object will result in certain outcomes (eg. my feet will feel sore if I wear vans) Affective component = emotions, captures a consumer’s emotions about an object/behaviour, e evaluative in nature - Capture an individuals direct or global assessment of the attitude object (the extent to which the individual rates the object as favourable or unfavourable) - Emotional states may enhance or amplify positive or negative experiences and later recollections of such may affect what comes to mind and how the individual acts eg. I feel happy when I wear my vans - Contradiction can exist in our attitudes eg. happy when wearing Vans even though make feet hurt Conative component = behaviour, captures likelihood that an individual will behave in a particular way - Examined in the context of intention and past behaviour (consumers plan to perform a particular behaviour in future - I will purchase a new pair of Vans next year vs I have purchased a pair of Vans this year)

Answer 5

= Consumers behaviour is affected by their perceived behavioural control – their skills or resources to achieve the outcome - May have a positive attitude towards becoming a medical doctor, moreover your friends and family would confer high social status on you if you become a doctor BUT if you are unlikely to become a doctor if you have neither the skills nor financial resources to achieve this outcome REFER to DIAGRAM

Answer 6

Cognitive Dissonance Theory - People feel discomfort (dissonance) when their attitudes and/or behaviours are inconsistent - Dissonance motivates consumers to resolve the inconsistency between attitudes & behaviours - When dissonance occurs after a purchase = post-purchase dissonance (eg. did I just pay too much for my car?) Consumer Strategies for reducing dissonance - Rationalise decision as being wise (post-purchase rationalisation): goal to make themselves feel better about decision (eg. this expensive suit is a good purchase because I can wear it to work and to weddings) - Try to sell friends or family on positive features (eg. My new phone is amazing, you should get one) - Look to known satisfied owners for reassurance (eg. after purchasing new Mazda, ring a friend who drives a Mazda) Marketing Strategies - Structure ads to contain information about the benefits of a product to reinforce consumer decisions - Offer strong warranties/guarantees - Provide detailed instructions or information about how to use a product efficiently (or additional ways to use) - Emphasise availability of after-sales service (eg free online technical support)

Answer 7

Groups = two or more people who interact to accomplish individual/mutual goals Reference groups = any person/group that serves as a point of comparison for an individual forming values, attitudes or behaviours Marketer-created reference groups (MRG) - Experts - >Unique position to help consumers evaluate a product because of their occupation, training or experience - > Perceived by consumers to be credible and trustworthy - Celebrity endoresments - > Assumption: when a celebrity endorses a produt, attributes associated with the celebrity transfer to the product - Trade characters - >quasi -celebrity endorsers that present an idealised and exclusive image that is under the complete control of the company - > Provide product-related information and personality for the brand/product (eg. Louie the Fly, Red&Yellow M&M, Ronald McDonald) - Common person appeals - >Focus on ordinary people in everyday situations who are using/endorsing a particular product - >Perceived by consumers as similar (non-aspirational), can model desired patterns of behaviour - Third party accreditation - >For a fee, accredit that a product/service meets certain minimum standards (Heart Foundation, Australian Organic Certified) - >Provide consumers with some assurance that a claim being made by a brand has been externally verified

Answer 8

= Fear arises from perceptions of threat, fear appeals should include a threat component (to elicit fear) and a response componenet (demonstrate how to reduce the threat) - Threat component: severity (is threat serious) and susceptibility (could threat happen to me) - Response component: response efficacy (does the suggested response work), self efficacy (can I perform the suggested response) and barriers to self-efficacy (what stops me doing the response) - Potential for collateral damage (distress or stigmatise groups -> people with AIDS following early AIDs campaigns), may be counterproductive for those with low levels of self-efficacy (those who can’t afford to perform recommended response), evoke maladaptive responses (fatalism among smokers, stranger danger

Answer 9

-> Society is made up of a hierarchy of distinct social classes -> Members of each social class have relatively equal status -> Members of different social classes have more/less status ->Social classes are often measured in terms of social status -> Usually defined by one or more of the following:  Family income  Occupational status  Educational attainment

Answer 10

Subjective measures => asking individuals to estimate which social class they belong to - Resulting classification of social class membership is based on the participants self-perceptions or self-images - >Treated as a personal phenomenon one that reflects an individuals sense of belonging or identification with others (class consciousness) - Advantages - >Easy to collect - >Assess an individuals class consciousness - Disadvantages - >Based on self-perception and self-image - > Tends to result in lots of people classifying themselves as ‘middle class’ Reputational => asking certain members in a community to judge the social class of others in that community eg. ranking people of different occupations - Advantages - >Can capture occupational prestige within a comunity - Disadvantages - >Has limited ability to predict/explain purchase and consumption behaviours Objective measures => consists of selected demographic or socioeconomic variables concerning the individuals of the study - Measured through questionnaires that ask respondants to answer several factual questions about themselves, their families or place of residence - Can be used to reach or target a desired market segment - >Occupational => based on demographic and/or socioeconomic variables - Single variable measures based on one variable (eg. occupation, education, income) - Composite variable measures combine 2+ variables eg. Index of Status Characteristics

Answer 11

= sum total of learned beliefs, values and customs that serve to direct the consumer behaviour of members of a particular society (Schiffman) Values = also beliefs but (eg. showing love for family is important => Schwartz 10 values) - Fewer in number - Guide culturally appropriate behaviour - Enduring - Not tied to specific objects/situations - Widely accepted by society

Answer 12

= Satisfies needs - Provides individuals with order, direction and guidance about how to best satisfy physiological, personal and social needs - Cultural beliefs, values and customs continue to be followed as long as they yield satisfaction, however when a specific standard no longer satisfies the members of a society, it is modified or replaced so the resulting standard is more in line with current needs and desires = Dynamic - Culture changes when existing cultural beliefs/values/customs no longer satisfy needs - >Eg. decline in wearing hats once shampoo became more common (cleaner hair) - In response to other social changes - >Eg. new technology like mobile phones - But can be cyclical eg. mullet = Learned - From an early stage, we begin to acquire from our social environment a set of beliefs, values and customs that constitutes our culture - Marketing tends to enhance information learning by providing the audience with a model of behaviour to imitate (particularly for visible or conspicuous prodiucts or language where peer influence is likely to play an important role) ->Repetition of advertising messages both creates and reinforces cultural beliuefs and values eg. learnt to expect unlimited texts - Culture can be transmitted through ->Formal learning (eg. parents explicitly teaching children how to use chopstickls) ->Informal learning-> learnt from imitating or modelling the behaviour of selected others (eg. watching how one’s parents greet strangers to learn appropriate ways of greeting) ->Technical learning (eg. sex education received at school) ->Enculturation = when we learn our own culture ->Acculturation = when we learn other’s culture ->International firms need to engage in acculturation, otherwise they may expose their brand to ridicule or contempt - Language and symbols ->To acquire a common culture, the members of a society must be able to communicate with each other through a common language , otherwise shared meaning could not exist and true communication would not take place ->Marketers must use appropriate symbols to convey desired product images or characteristics to communicate effectively with their audiences -> Can be verbal/non-verbal eg. red and yellow M&M, red Kit Kat, or textures to lend additional meaning to print or broadcast advertisements to trademarks and packaging or product designs ->Symbol is anything that stands for something else eg. word ‘razor’ calls forth a specific image related to an individuals own knowledge and experience ->Humans can understand symbolically ow a product, service or an idea can satisfy their needs makes it easier for marketers to sell the features and benefits of their offerings ->Through a shared language and culture, individuals already know what the image means, thus an association can be made without actively thinking about it ->May have many (or contradictory meanings), so is important that the advertiser ascertains exactly what symbols are communicating to intended audience eg. the stores a product is sold may provide a symbol of quality - Rituals ->Culture includes various ritualised experiences and behaviours that until recently have been neglected by consumer researchers = a type of symbolic activity consisting of a series of steps (multiple behaviours) occurring in a fixed sequence and repeated over time -> Rituals extend over the human life cycle from birth to death and include a host of intermediate events (eg. 18th birthdays) – can be public, elaborate religious or ceremonies or as mundane as grooming behaviour ->Rituatlised behaviour is typically rather formal and often scripted behaviour and is likely to reoccur repeatedly over time ->Ritualistic behaviour = any behaviour that a person has made into a ritual ->Rituals tend to be replete with ritual artefacts that are associated with or somehow enhance performance of the ritual eg. tree, stocking, lights associated with Christmas = Shared - beliefs/values/customs only become cultural characteristics if they are widely held by all members of that culture (group customs that link together the members of a society) - Various institutions transmit these elements of culture, including - > Family: serves as the primary agent for enculturation, passing along of basic cultural beliefs, values and customs to societys newest members - > Educational institutions: specifically charged with imparting basic learning skills, history, patriotism, citizenship and technical training needed to prepare people for significant roles within society - > Religious bodies: moral leadership for society (reinforce training through the teaching of economic and ethical concepts) - >Media: extensive exposure of media and easily ingested, entertaining format in which the contens of such are usually presented, important vehicle for imparting, reinforcing and occasionally changing a wide range of cultural values eg. SBS cultural maintenance – helping EAL Australians to celebrate their cultural origins

Answer 13

= the selection of an action from two or more alternative choices - includes decisions about: - > whether or not to make a purchase - > which brand to purchase

Answer 14

1. Extensive problem solving - No established criteria for evaluating the product - Brands to be considered in the evoked set not yet selected - Common when buying expensive, important or complicated products for the first time - Needs a great deal of information to establish a set of criteria on which to judge specific brands and corresponding large amount of info concerning each of the brands to be considered 2. Limited problem solving - Consumers have basic criteria for evaluation product - Have not fully established preferences - Search for additional info like ‘fine tuning’ – gather additional brand info to discriminate between brands - When purchasing a new, updated version of something that they have purchased before (eg. replacing a laptop with faster processor, larger hard-drive) 3. Routinised-response behaviour - Consumers have some experience with the product category - Have well-established set of criteria with which to evaluate evoked set - May search for a small amount of information or purchase out of habit - Little need for additional information - > Infrequent: frequent purchasing - > Unfamiliar: familiar product class or brand - > Extensive: little thought, search or time given to purchase

Answer 15

1. Economic model - >Assumes that consumers: - Always make rational decisions - Are aware of all product alternatives, understand pros and cons of these alternatives, can select best alternative - > The assumption of the economic model are unrealistic because consumers: - Have limited knowledge and information - Have existing habits and preferences - Are often unwilling to spend the time necessary to make the ‘perfect’ decision - > Therefore I soon as too idealistic and simplistic, there may often be another set of motives that could account for a consumers behaviour 2. Passive model - Opposite of economic model - Assumes consumers do whatever marketers tell them to do - Consumers perceived as implusive and irrational purchasers, ready to buy according to marketing efforts (object to be manipulated) - Model is unrealistic because consumers can be active and informed in their purchase decisions 3. Cognitive model - Falls between extremes of passive and economic models - Views consumers as a thinking problem solver - >Focuses on the process by which consumers seek and evaluate information about selected brands and retail outlets - > Consumers viewed as information processors that leads to formation of preferences and ultimately purchase intentions - Embraces the concept of bounded rationality - >Consumers are not rational in an economic sense but strive to make the best decisions given their limitations - > Consumers develop mental short-cuts (heuristics) to ease the burden of decision-making (unlikely to attempt to obtain all available information about every choice but rather seek sufficient information) - May use decision rules to cope with exposure to too much information (information overload) 4. Emotional model - Certain feelings may become associated with specific purchases - For such purchases, consumers spend less time researching and evaluating alternatives With various levels of automaticity - Possessions and beliefs serve to preserve a sense of past or play a meaningful role in the purchasing decision-making so more likely to buy things on an impulse - >When making an emotional decision, tend to buy impulsively rather than carefully earching, deliberating and evaluating alternatives - > Moods also important to decision making (emotion is a response to a particular environment), mood is an unfocused pre-existing state already present when a consumer experiences an advertisement, brand or product - > Influences when consumers shop, where they shop and whether it is alone or with others, also likely to influence how the consumer responds to actual shopping environments (those in a positive mood recall more information about a product than those in a negative mood) - >Those in a positive mood typically employ a mood maintenance strategy that avoids investing cognitive effort in any task unless it promises to maintain or enhance positive mood

Answer 16

Adoption - Micro process - Concerned with how individual consumers decide whether to accept or reject a new product Diffusion - Macro process - Concerned with the spread of a new product (innovation) from its source to the consuming public Ability of marketers to identify and reach this important group of consumers plays a major role in the success or failure of new product introductions

Answer 17

Product-oriented = focuses on the features inherent in the product itself and on the effects these features are likely to have on consumers’ established usage patterns ** Continuous innovation: - involves modification or improvement to existing product eg. new microsoft - Least disruptive **Dynamically continuous innovation: - involves new or modified products for established behaviours or needs eg. dvd players, blu-ray - Mildly disruptive ** Discontinuous innovation: - requires consumers to adopt new behaviour patterns eg. airplanes, the internet - Highly disruptive

Answer 18

= consumer innovators are the relatively small group of consumers who are the earliest purchasers of a new product but also depends on the status of the new product under investigation eg. if a new product is an innovation for the first three months of its availability, then the consumer who purchases it during this time is an innovator - Focus on the timing of adoption - >First 2.5% of social system who adopt - >Those who adopt in first three months of availability Innovativeness as personality trait = degree to which an individual makes innovation decisions independently of the communicated experiences of others - Example of vicarious innovation: necessary but not sufficient, for the early adoption of an innovation (actualised innovation) - Innovativeness in problem solving = innovativeness occurs through the adaptation of accepted methods to more creative new means of problem solving (accepting an innovation) Can consist of two dimensions - Cognitive: deals in part with the need for problem solving - Sensory: deals with novelty seeking and experimentation

Answer 19

1. Interested (high involvement) in the product category - Innovators are more interested than late or non-adopters - > Eg. early adopters of products containing non-fat synthetic oil were found to have a high interest in these because of health and diet concerns compared to late adopters - Innovators are morel likely to seek information concerning their specific interests from a varity of informal and mass-media sources - More likely to give greater deliberation to purchase of new products in their area of interest 2. Act as opinion leaders - Enthusiastic early-adopters will become product/brand evangelists - Innovators provide other consumers with information and advice about new products and that those who receive such advice frequently follow it (often influences the acceptance/rejection of new products) - Products that dont stimulate much excitement (positive or negative) won’t generate much word of mouth, limiting diffusion - Marketer must rely on mass media and personal selling to influence future purchasers – absence of informal influence also likely to result in a slower rate of acceptance of the product and can therefore influence eventual success or failure 3. Personality traits - Higher openness to experience - > Non innovators find new products threatening to the extent they prefer to delay purchase until its success has been clearly established - Higher need for uniqueness - > New products (branded and unbranded) that represent a greater change in a persons consumption habits were viewed as superior when it came to satisfying this need - Higher extraversion - > Seek more variety - Inner-directed social character - > Rely on their own values or standards when making a decision about a new product - > Non-innovators are other-directed, relying on others for guidance on how to respond to a new product rather than trusting their own personal values/standards 4. Perceive less risk with new innovations - Using new products involves an element of ‘risk’ - > Innovators are less likely to perceive new products as risky - > More likely to run the risk of a poor product choice in order to increase their exposure to new products that will be satisfying 5. Use innovativeness - Innovators will often find unique uses for a product - > Eg. aquafaba can be whipped to produce vegan-friendly meringues

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