quiz 2

Question 1

Promotion focus

Answer 1

Acting in ways to achieve positive outcomes

Question 2

Prevention focus

Answer 2

Acting in ways to avoid negative outcomes

Question 3

Regulatory fit theory

Answer 3

It “feels right” when there is math between how a customer pursues a goal and that consumer’s goal orientation

Question 4

Goal pursuit method

Answer 4

Promotion focus: approach goals with eagerness, eg. looking for ways to move forward
Prevention focus: approach goals with vigilance

Question 5

Loss vs. gain framing

Answer 5

Promotion- focus on gains

Prevention- focus on preventing losses

Question 6

Cultural orientation

Answer 6

Collectivist mindset- prevention focus

Individualist mindset- promotion focus

Question 7

Goal Gradient Theory

Answer 7

Consumers are more motivated when they are close to the goal, rather than far.

Question 8

Subgoals

Answer 8

Far: Subgoal strengthens attainability, increasing motivation.
Near: Subgoals lower the perceived value of goal-directed action, decreasing motivation.

Question 9

Perceived velocity

Answer 9

Far: Higher perceived velocity make the goal sem attainable
Near: Lower perceived velocity especially motivate consumer to put in effort to get to end point.

Question 10

Social goal pursuit

Answer 10

Far: Need other to help motivate achieve the goal
Near: Want to outperform other so you are the first one to the goal.

Question 11

Self-control

Answer 11

Process consumers use to regulate feeling, thought, and behaviour in line with long.term goals, rather than to pursue short term goals.

Question 12

Precommitment

Answer 12

A strategy in which a consumer uses a commitment device that forces him to stick to his long-term goal that he may not want to do

Question 13

Temptation bundling

Answer 13

coupling of instantly gratifying “want” activities with engagement in a “should” behaviour that provides longterm benfint but requires the exertion of willpower.

Question 14

Bundling vice-virtue

Answer 14

offerings in which varying proportion of both vice and virtue in a single offering,holdeín the overall quantity constant.

Question 15

Licensing

Answer 15

doing good frees up to do bad

Question 16

Depletion

Answer 16

Impairment of self-control or decision-making abilities due to decision making effort that results in mental resources being exhausted.

Question 17

ABC model

Answer 17

Affect= i love my phone
Behaviour= i have been using my phone for long time so i must feel positively about it
Cognition = the interface is user friendly, siri, imessage syncs with my computer

Question 18

Characteristics

Answer 18

avorability, accessibility, ambivalence, certainty/confidence (further divide into correctness and clarity), persistence, resistance)

Question 19

When does attitude affect behavior?

The role of attitude characteristics

Answer 19

Correctness leads people to advocate

Ambivalence leads people to seek information and to be open to persuasion.

Question 20

MAO three-factor model of behavior and attitude change

Answer 20

Motivation
Ability
Opportunity

Question 21

Motivation (MAO)

Answer 21

Forces or influence that cause an individual toward the acquisition , consumption or disposition of offering.

Self relevance

• Needs
• Values
• Self concept
• Goals

Question 22

Ability (MAO)

Answer 22

Resources to make an outcome happen

Type of resources

• Financial
• Cognitive
• Physical
• Social, cultural, linguistic

Question 23

Opportunity (MAO)

Answer 23

The extent to which the presence or absence of external constraints restricts a certain behaviour.
Channel factors = small situational factors that increase impelling forces or reduce constraining forces toward a behaviour

Question 24

Elaboration likelyhood model (ELM)

Answer 24

A dual process theory describing change of attitudes
Central Route= MAO high. High elaboration, careful and deliberate thinking
Peripheral Route= Low elaboration, simple inferences, heuristics.

Question 25

Source characteristics

Answer 25

Credibilty | Attractiveness

Question 26

Credibility

Answer 26

Trustworthiness, status and expertise of the source Can be a peripheral cue for low elaboration Can be central cue for high elaboration, used a persuasive argument Can increase elaboration of future cues when MAO is ambiguous

Question 27

Source derogation

Answer 27

thoughts that discount or attack the source of the message

Question 28

The match-up hypothesis

Answer 28

Congruence between spokesperson and product enhances credibility and product evaluations

Question 29

The Sleeper Effect

Answer 29

the tendency for people to forget the source faster than they forget the message. For message with less credible sources, attitudes will actually change more while more time passes.

Question 30

Attractiveness

Answer 30

= physically attractive, likeable, familiar or similar to ourselves. Usually a peripheral cue for low elaborators, eg. increasing positive affect Can be a central cue if products related to attractiveness Can increase elaboration for moderate elaborators

Question 31

The Halo Effect

Answer 31

when one characteristic dominates over others

Question 32

Message charachteristics

Answer 32

Argument strength Number of arguments Emotions

Question 33

Argument strength

Answer 33

High: Strong arguments credited, weak argument discredited Low: Not processed deeply

Question 34

Number of arguments

Answer 34

High: Number of arguments only good i falso strong Low: High number used as heuristic

Question 35

Emotions

Answer 35

High: relevant emotions used as arguments Low: Emotional associations indirectly affect attitudes, sex, humor, music

Question 36

The three major tenets of prospect theory

Answer 36

Anchoring and adjustment Representativeness Availability

Question 37

Anchoring and adjustment

Answer 37

What? Peoples estimates are disproportionately affected by a related or unrelated value Why? System 1 (priming), System 2 (Insufficient adjustment): adjusting to the edge of the range of uncertainty Key example: Wheel of fortune study, Soup can study, Real estate agent ``` Marketing implication: Offer suggestive pricing Set initial prices high, in negotiations Purchase quantity limits Set your own anchors before shopping ```

Question 38

Representativeness

Answer 38

What? Making a judgment by comparing a stimulus with the category prototype or exemplar Why? We organize things into categories based on how well they fit our schemas; lazy System 2 chooses to ignore base-rates Key example: Randomness and the hot hand effect Tom W: stereotypes The Linda problem; the conjunction fallacy ( when people assume specific condition are more likely than a more general one “linda is a woman and a feminist” Marketing implication Package and brand similar to stereotypes Be careful in stereotyping consumer The conjunction fallacy: linda problem

Question 39

Availability

Answer 39

What? Basing judgments on available events/examples. What is available must be important/likely Why? A system 1 process that relies on frequency, recency, vividness to make judgments Key example: More deaths by shark or horse? More words with k as first or third letter? Vivid experiences/brands are more mentally available and disproportionately affect estimates of risk Marketing implication: Increase vividness and distinctiveness to increase availability of brand Create fear by increasing accessibility of negative “information”, eg, trump and immigrants Capitalize on recent events

Question 40

Ease of Retrieval

Answer 40

Idk ,look it up

Question 41

The endowment effect

Answer 41

What? Price disparity between how much buyers are willing to pay for a product and how much sellers are willing to accept for a product Why? People are loss averse and have a tendency for self-enhancement Key example The mug study Vacation vs raise Difference between cultures Marketing implication Freemiums Allow customer to interact with products Free test products

Question 42

Framing effects (loss and gain)

Answer 42

What? When objectively identical situations generate different decisions depending on how the decision are presented or perceived as potential losses or gains Why? As prospect theory states, people are loss averse. They are risk seeking in the loss domain and risk averse in the gain domain. Key example The asian disease problem DOctors prefer surgery with 90% success rate than 10% mortality rate Marketing implication Avoid loss framing for desired behaviours (eg. bonus for cash instead of fee for credit) use of loss framing for undesired behaviours (eg lose 350$ if you do not use energy conservation models) Frame things as losses to increase emotional impact

Question 43

The default effect/status quo bias

Answer 43

What? Making an option the default increase the likelihood of that option being chosen Why? 1. Path of least resistance 2. perceived recommendation 3. Loss aversion 4. Changes acts meaning Key example Organ donation (changes the meaning of donation) Automatic enrollment in retirement plans Marketing implication Create helpful defaults (eg software, health) Create profit-maximizing defaults (freemium, email subscription) Disclose defaults to increase perception of fairness Articulate your own preferences

Question 44

Mental accounting: Budgeting

Answer 44

What? The tendency for people to treat money differently depending on where it comes from, where it is kept, and how it is spent. even tho money is fungible Why? Helps us plan and control our spending, as it would be cognitively taxing to keep a mental spreadsheet. Key example Wealth accounts: checking, pension, rainy day Income accounts (regular spent on serious goods, windfall spent on frivolous goods) Types of expenditure: entertainment, housing. eg spending 20$ to buy a ticket after having lost the ticket and vs losing 20 $ Marketing implication give people gifts they would not get themselves reframe goods as different categories of spending ( eg. exercise not a physical appearance but mental health) Offer pennies-a-day plans

Question 45

Mental accounting: Sunk costs

Answer 45

What? Continuing an endeavour after initial investment of time, money or effort has been made Why? Loss aversion, desire not to appear wasteful Key example Continuing to invest after initial investment is made going to basketball game in snowstorm Ski trip study Wearing expensive shoes even though they painful Marketing implication Loyalty cards Entrance fees Balance pay systems

Question 46

Problem recognition: ideal vs. actual states

Answer 46

look at the picture from slides

Question 47

Internal search

Answer 47

Brands (what determines our evoked set?) Attributes and attribute determinance (salience and diagnosticity) Evaluations Experience

Question 48

External search

Answer 48

``` Retailer Experience Social media Independent sources WoM E-WoM ```

Question 49

Decision strategies

Answer 49

Compensatory models: Negative features can be compensated for by positive ones Non-compensatory models: Eliminate any products that are inadequate on any attribute Elimination-by-aspects = Come up with a cutoff level for each attribute, eliminate alternatives that don't come up to the standard from the most to least important attribute

Question 50

Effects on interpretation of information

Answer 50

Confirmation bias: We tend to find evidence for theories we believe are true (both internally and externally) Negativity bias: Negative information receives more weight than positive information Information and choice overload: Too much choice can be overloading

Question 51

Context effects: Assumption of regularity

Answer 51

if A is preferred over B in the choice set (a, B), then A should also be preferred over B in the choice set (A, B, C), irrespective of the characteristics of option C

Question 52

The compromise effect

Answer 52

When a brand gain share because it is an intermediate retaher than an extreme option

Question 53

Asymmetric dominance/the decoy effect/the attraction effect

Answer 53

WHen the addition of an inferior option increases the attractiveness of a dominant brand

Question 54

Choice tactics-

Answer 54

Simple rules of thumb used to make low-effort decision Performance- What works best Price- Cheapest or seems like deal - Transaction utility- The perceived value of the deal: difference between the amount paid and the reference price for the good Brand loyalty- strong preference Habit- regular performance of the same act repeatedly over time Variety seeking- Trying something different - Sequential vs. simultaneous consumption= People use variety as a heuristic and overestimate their preference for variety in sequential consumption