Final Flashcards Preview

Consumer Behavior > Final > Flashcards

Flashcards in Final Deck (148):
1

Complaining Behavior

Occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event.

2

Complaining Customers

May seem annoying, but can reveal weaknesses in the service offering

3

Features of a Complainer (4)

- More likely to return
- More likely to become a satisfied customer
- Tells others when the company responds poorly
- Valuable source of information

4

Features of a Non-Complainer (3)

- Unlikely to return
- May tell others about the experience
- May become a valuable customer if company responds positively, despite lack of complaint

5

6 ways to handle service complaints effectively

- Thank the guest for providing information
- Ask questions
- Apologize sincerely
- Show empathy
- Explain the resulting corrective action
- Follow up with the customer after the corrective action

6

Negative Word-Of-Mouth (WOM)

Takes place when consumers pass on negative information about a company from one to another

7

Positive Word-Of-Mouth (WOM)

Occurs when consumers spread information from one to another about positive consumption experiences with companies

8

4 ways to handle negative publicity

- Do nothing
- Deny responsibility
- Take responsibility
- Release information

9

Switching Behavior

Refers to the times when a consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion.

10

3 types of switching costs

- Procedural
- Financial
- Relational

11

Customer Share

The portion of resources allocated to one brand from among the set of competing brands

12

Customer Inertia

Situation in which a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change.

13

Customer Commitment

A strong feeling of attachment, dedication, and sense of identification with a brand.

14

Antiloyal Consumers

Those who will do everything possible to avoid doing business with a particular marketer.

15

True Loyalty

Involves both a continuing series of interactions and feelings of attachment between the customer and the firm

16

Relationship quality

Represents the degree of connectedness between a consumer and a retailer.

17

6 Characteristics of Relationship Quality

- Competence
- Communication
- Trust
- Equity
- Personalization
- Customer oriented

18

Competence

Consumer views company and service providers as knowledgeable and capable

19

Communication

Consumer and firm understand each other and 'speak the same language'

20

Trust

Buyer and seller can depend on each other

21

Equity

Both buyer and seller see equity in exchange and are able to equitably resolve conflicts

22

Personalization

Buyer treats the customer as an individual with unique desires and requirements

23

Customer oriented

Strong relationships are more likely to develop when a firm practices a marketing orientation, and this filters down to a service providers and salespeople

24

Consumption

The process that converts time and goods, services, or ideas into value

25

Durable goods

Consumed over long periods of time

26

Nondurable Goods

Consumed quickly

27

Meaning Transference

Process through which cultural meaning is transferred to a product and onto the consumer.

28

Satisfaction

A mild, positive emotional state resulting from a favorable appraisal of a consumption outcome.

29

Dissatisfaction

A mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome.

30

Consumer satisfaction (3)

- A postconsumption phenomenon
- Results from a cognitive appraisal
- A relatively mild emotion that does not create strong behavioral reactions

31

5 other postconsumption reactions

- Delight
- Disgust
- Surprise
- Exhilaration
- Anger

32

3 Theories of postconsumption reactions

- Expectancy/disconfirmation
- Equity theory
- Attribution theory

33

2 components of consumer expectations

- The probability that something will occur
- An evaluation of that potential occurrence

34

4 types of expectations

- Predictive
- Normative
- Ideal
- Equitable

35

6 sources of expectations

- Word-Of-Mouth
- Advertisements
- Confirmatory Bias
- Experience
- Personal Factors
- Service Quality

36

Equity Theory

Proposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange.

37

Attribution Theory

Focuses on explaining why a certain event occurred

38

3 elements to Attribution theory

- Locus
- Control
- Stability

39

Locus

Judgments of who is responsible for an event

40

Control

the extent to which an outcome was controllable or not

41

Stability

the likelihood that an event will occur again

42

Cognitive Dissonance

AKA buyer's regret: Lingering doubts about a decision that has already been made

43

4 conditions of cognitive dissonance

- Consuemr is aware that there are many attractive alternatives
- Decision is difficult to reverse
- Decision is important and involves risk
- Consumer has low self-confidence

44

5 cognitive reducing strategies

- Return the product if possible
- Complain about the experience
- Seek positive information about an alternative selected
- Seek negative information about alternatives not selected
- Minimize the perceived importance of the decision.

45

3 Satisfaction/Dissatisfaction Measures

- Direct global measure
- Attribute specific
- Disconfirmation

46

Left skewed

the bulk of consumers indicate being satisfied or completely satisfied

47

How to solve the left skew

give more choices to respond to

48

Consumer refuse

Any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer.

49

6 ways to dispose of refuse

- trashing
- converting
- donating
- recycling
- trading
-reselling

50

Evaluative Criteria

The attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem.

51

Feature

The physical component

52

Benefit

The result of the feature

53

Value Equation

Value = Benfits - Costs

54

Determinant Criteria

The evaluative criteria that are related to the actual choice that is made.

55

Hedonic Criteria

emotional, symbolic, and subjective attributes or benefits that are associated with an alternative.

56

Utilitarian Criteria

Functional or economic aspects associated with an alternative

57

Bounded Rationality

perfectly rational decisions are not always feasible due to constraints found in information processing.

58

Affect-based evaluation

Evaluate products based on the overall feeling that is evoked by the alternative.

59

Attribute-based evaluation

Evaluate alternatives across a set of attributes that are considered relevant to the purchase situation.

60

Product Categories

Mental representations of stored knowledge about groups of products.

61

2 Category Levels

- Superordinate
- Subordinate

62

2 types of attributes

- Perceptual attributes
- Underlying attributes

63

6 factors determining evaluative criteria used

- Situational influences
- Product knowledge
- Social influences
- Expert opinions
- Online sources
- Marketing communications

64

Consumer judgtement

Mental assessments of the presence of attributes and the benefits associated with those attributes.

65

Consumers make judgments about: (5)

- Presence of features
- Feature levels
- Benefits associated with features
- Value associated with the benefit
- How objects differ from each other

66

4 other issues affecting consumer judgments

- Just Noticeable Difference
- Attribute Correlation
- Quality Perceptions
- Brand Name Associations

67

Compensatory Rules

Allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute.

68

Noncompensatory Rules

Strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration.

69

Involvement

The degree of personal relevance that a consumer finds in pursuing value from a given act.

70

5 Types of risk

- Financial
- Social
- Performance
- Physical
- Time

71

Need Recognition

Consumer perceives a difference between actual and desired state

72

4 types of search behavior

- Ongoing
- Internal
- Prepurchase
- External

73

External Search

Includes the gathering of information from external sournces

74

4 factors considered in external search

- Ease of obtaining information from the source
- Objectivity of the source
- Trustworthiness of the source
- How timely the information can be obtained

75

Evaluative Criteria

The individual attributes or elements of a product or decision that are used by consumers in making a decision.

76

Two evaluative criteria used across almost all consumer decision

- Price
- Quality

77

External Search and The Internet (3)

- Lowers search costs
- Provides hedonic value
- Information control

78

Situational Influences

Contextual effects independent of enduring consumer, brand, or product characteristics.

79

Advertiming

Ad Buys that include a schedule that runs the advertisement primarily at times when customers will be most receptive to the message

80

Shopping

The set of value producing consumer activities that directly increase the likelihood that something will be purchased.

81

4 types of shopping activities

- Acquisitional
- Epistemic
- Experiential
- Impulsive

82

Personal Shopping Value (PSV)

the overall subjective worth of a shopping activity considering all associated costs and benefits.

83

2 types of personal shopping value

- Utilitarian
- Hedonic

84

Impulsivity

represents how sensitive a consumer is to immediate rewards.

85

Consumer self-regulation

a tendency for consumers to inhibit outside, or situational, influences from interfering with shopping intentions.

86

Action-oriented

high capacity to self-regulate.

87

State-oriented

low capacity to self-regulate.

88

Atmospherics

the emotional nature of an environment or more precisely, the feelings created by the total aura of physical attributes that comprise the physical environment.

89

Servicescape

the physical environment in which consumer services are performed.

90

Two factors that help create a competitive advantage

- Fit
- Congruity

91

Fit

appropriateness of the elements for the given environment.

92

Congruity

consistency of the elements with one another.

93

4 Atmospheric Elements

- Odors
- Music
- Color
- Social Settings

94

Marketing Ethics

Consists of societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies.

95

Consumerism

A term used to describe the activities of various groups to protect basic consumer rights.

96

Consumer Bill of Rights 1962 (4)

- The right to safety
- The right to be informed
- The right to redress and to be heard
- The right to choice

97

4 types of product categories

- Deficient Products
- Salutary Products
- Pleasing Products
- Desirable Products

98

Deficient Products

Products with little or no potential to create value of any kind.

99

Salutary Products

Products that are good for both consumers and society in the long run and offer high utilitarian but little hedonic value.

100

Pleasing Products

Products that provide hedonic value but may be harmful in the long run.

101

Desirable Products

Products that deliver high utilitarian and hedonic value and also benefit both consumers and society in the long run.

102

Corporate Social Responsibility

An organization's activities and status related to its societal obligations

103

Societal Marketing Concept

Considers not only the wants and needs of individual consumers, but also the needs of society.

104

Deceptive Advertising (2)

-Contains or omits information that is important in influencing a consumer’s buying behavior.
- Is likely to mislead consumers who are acting “reasonably.”

105

Pollution (4)

- Marketers are often criticized for harming the environment.
- Consumption leads to waste and pollution.
- Environmental issues are complicated.
- Environmental Protection Agency plays a key role

106

Planned Obsolescence

The practice of managing and intentionally setting discontinue dates for products.

107

Cash Advance Loans (3)

- Also known as “payday loans.”
- Fees associated with the service usually amount to an extremely high interest rate.
- Truth-in-lending laws require disclosure, but many consumers don’t consider these costs.

108

4 Manipulative Sales Tactics

- Foot-in-the-door technique
- Door-in-the-face technique
- Even-a-penny-will-help technique
- “I’m working for you!” technique

109

Stealth Marketing

Consumers are completely unaware that they are being marketed to.

110

Strict Liability

Consumers can win a legal action against a firm if they can demonstrate in court that an injury occurred and that the product associated with the injury was faulty in some way.

111

Antecedent Conditions

Situational characteristics that a consumer brings to information processing

112

Crowding

Density of people and objects within a given space

113

Functional Quality

Retail positioning that emphasizes the tangible things like a wide selection of goods, low prices, guarantees, and knowledgeable employees

114

Retail Personality

Way a retail store is defined in the mind of a shopper based on the combination of functional and affective qualities

115

Seasonality

Regularly occuring conditions that vary with the time of year

116

Servicescape

Physical environment in which consumer services are performed

117

Awareness Set

Set of alternatives of which a consumer is aware

118

Inept Set

Alternatives in the awareness set that are deemed to be unacceptable for further consideration

119

Inert set

Alternatives in the awareness set about which consumers are indifferent or do not hold strong feelings

120

Consideration Set

Alternatives that are considered acceptable for further consideration in decision making

121

Universal Set

Total collection of all possible solutions to a consumer problem

122

Information Overload

Situation in which consumers are presented with so much information that they cannot assimilate the variety of information presented

123

Satisficing

Practice of using decision-making shortcuts to arrive at satisfactory, rather than optimal, decisions

124

Attribute correlation

perceived relationship between product features

125

Conjuctive Rule

Noncompensatory decision rule where the option selected must surpass a minimum cutoff across all relevant attributes

126

Lexicographic Rule

Noncompensatory decision rule where the option selected is thought to perform best on the most important attribute

127

Perceptual Attributes

Attributes that are visually apparent and easily recognizable

128

Product categories

Mental representations of stored knowledge about groups of products

129

Signal

Attribute that consumer uses to infer something about another attribute

130

Underlying Attributes

Attributes that are not readily apparent and can be learned only through experience or contact with the product

131

Confirmatory Bias

Tendency for expectations to guide performance perceptions

132

Consumption Frequency

Number of times a product or service is consumed in a given period of time

133

Meaning Transference

Process through which cultural meaning is transferred to a product and onto the consumer

134

Self-Perception Theory

Theory that states that consumers are motivated to act in accordance with their attributes and behaviors

135

Service Quality

Overall goodness or badness of a service experience, often measured by SERVQUAL

136

SERVQUAL

Way of measuring service quality that captures consumers disconfirmation of service expectations

137

Competitive Intensity

Number of firms competing for business within a specific category

138

Loyalty Card/Program

Device that keeps track of the amount of purchasing a consumer has had with a given marketer

139

Share of wallet

Customer share

140

Compensatory Damages

Damages that are intended to cover costs incurred by a consumer due to an injury

141

Punitive Damages

Damages that are sought to punish a company for behavior associated with an injury

142

Sales Orientation

Practice of using sales techniques that are aimed at satisfying the salesperson's own needs and motivates for short-term sales success

143

Customer Orientation

Way of doing business in which the actions and decision making of the institution prioritize consumer value and satisfaction above all other concerns

144

Morals

Personal standards and beliefs used to guide individual action

145

Negligence

Situation whereby an injured consumer attempts to show that a firm could forsee a potential injury might occur and then decided not to act on that knowledge

146

Products liability

Extent to which businesses are held responsible for product-related injuries

147

Puffery

Practice of making exaggerated claims about a product and its superiority

148

Bonus: What show does she keep talking about?

Hoarders