review final Flashcards

Question

Consumer involvement

Answer 1

refers to a consumer’s perceived relevance of a stimulus (ad, product, purchase decision) which determines their desire to process relevant information. the extent to which a consumer pays attention to a piece of information

Answer 2

Individual differences : how strong/important one’s need is, personal interest on subject, and values. Stimuli factors: the information source and content Situational factors: consumption context and risk associated with the stimuli.

Answer 3

- using novel and prominent stimuli, - using celebrity endorsers, - using consumer-generated content, - allowing for product customization, etc. important to have a good understanding of the consequences of involvement:

Answer 4

increased involvement leads to elicitation of counter-arguments, amplifies perceived differences among products/product attributes, and increases the amount of information search.

Answer 5

experiences of emotionally laden states

Answer 6

mood and emotions

Answer 7

temporary positive or negative states accompanied by moderate levels of arousal

Answer 8

intense and discrete states that are often related to a triggering event.

Answer 9

- Moods are more long-lasting going for hours or even days, compared to emotions that generally only last minutes, - Emotions typically originate in response to something specific (e.g., an event, a person, an object), whereas moods are much more diffuse with no identifiable object, - Moods are not as intense as emotions.

Answer 10

highlight the experience of positive affect or avoidance of negative affects as a product benefit capitalize on mood congruency effects and positive mood spillovers capitalize on the predictive power of discrete emotions

Answer 11

Happiness Guilt Fear Disgust Embarrassment important to understand how these specific emotions influence consumption decisions, especially considering that companies now have the tools to infer the emotions consumers experience at a given moment.

Answer 12

act more generously toward others, are more likely to prefer safer choices rather than risky ones, and be less price sensitive.

Answer 13

are more likely to do a good deed (e.g., donate to a charity, help someone who is in need) and become motivated for self-improvement. Consumers who are guilt prone (vs. who are not guilt prone) give more importance to quality and ethical aspects when purchasing a product.

Answer 14

prefer familiar and less conspicuous brands, show lower preference for luxury products, and avoid products and brands that may trigger their embarrassment.

Answer 15

overestimate risk associated with an event/product/purchase and make more risk averse decisions, and perceive products unsafe and dangerous even if they are objectively not unsafe or dangerous.

Answer 16

have a general tendency to avoid products or brands. Also, people who are more sensitive to disgust are less likely to try novel or exotic foods, highlighting the role of this emotion in food consumption.

Answer 17

refers to the beliefs, attitudes, and perceptions a person holds about themselves. mental image a person has of their own identity, including their personality, abilities, values, roles in life, etc.

Answer 18

refers to how a person currently defines their self-concept, which may include certain personality traits and characteristics, beliefs about their appearance, and certain concepts that help them define who they are.

Answer 19

refers to how a person ideally wants to see themselves.

Answer 20

refers to the extent to which a person has a positive or a negative attitude toward their real self.

Answer 21

refers to the degree to which a person cares about how others view one’s self.

Answer 22

refers to how people communicate their self-concept to others through their behaviors, choices, and consumption patterns.

Answer 23

The unique psychological make-up of an individual

Answer 24

based on quantitative measurement of traits, and identifiable characteristics that contribute to defining a person’s personality. Openness Conscientiousness Extraversion Agreeableness Neuroticism Materialism Need for Cognition Need for Uniqueness Personality traits have an influence on consumption decisions in several ways

Answer 25

The tendency to appreciate new ideas, values, feelings, and behaviours.

Answer 26

The tendency to be careful, well-organized, and structured.

Answer 27

The tendency to be sociable, to be talkative, and to enjoy others’ presence.

Answer 28

The tendency to go long with others rather than to assert one’s own opinions and choices.

Answer 29

The tendency to frequently experience intense emotions.

Answer 30

The tendency to importance to possession of material objects

Answer 31

The extent to which individuals are inclined towards effortful cognitive activities

Answer 32

An individual's pursuit of differentness relative to others

Answer 33

marketers need to identify the personality traits that are most influential on the consumption decisions related to their offerings and understand how consumer segments they target score on these traits

Answer 34

Set of traits people attribute to a brand as if it were a person most common ones: sincerity → ex: Toms excitement → ex: redbull competence → ex: tide sophistication → ex: channel ruggedness → ex: Harley Davidson

Answer 35

patterns of consumption reflecting a person's choice of how they spend time and money Consumers’ interests, activities, and opinions (IAO) shape up their lifestyle important for marketers to have a good understanding of the lifestyle of the consumers they target in order to design effective marketing and communication strategies.

Answer 36

Family, Home, job, community, recreation, fashion, food, achievement

Answer 37

work, hobbies, social events, vacation, club memberships

Answer 38

Themsleves, social issues, politics, business, economics, education, products, culture

Answer 39

Lasting beliefs on what is good vs. bad. The belief that some condition is preferable to its opposite family health happiness freedom achievement respect

Answer 40

A lasting general evaluation of concepts like people, brands, product, social issues, etc

Answer 41

Attitudes are functional in the sense that they help people pursue their goals, and proposed four functions of attitudes. - Utilitarian Function - Knowledge Function - Value-Expressive Function - Ego-Defensive Function

Answer 42

attitude formed and held in order to provide people with an efficient way to distinguish objects that bring pleasure and objects that produce pain. These attitudes are generally rooted in a desire to satisfy personal needs and desires to maximise utility

Answer 43

attitudes could help people gain a greater understanding of the structure of their world. the world that people inhabit is extremely complex, and attitudes may facilitate making sense of that world without serving needs other than understanding.

Answer 44

attitudes can facilitate the expression of people’s abstract values. An attitude may help people have their voice heard, express their self-concept, and remain consistent with their values.

Answer 45

attitudes allow people to avoid acknowledging unpleasant aspects of their self or the external world. Attitudes can thus promote protecting self-esteem

Answer 46

attitude consists of three components: affect (A): the way one feels about the concept behaviour (B): intentions one has towards the concept cognition (C): what one thinks/knows about the concept Having assessed each of these dimensions, one can have an idea about the overall attitudes the consumer holds toward the concept.

Answer 47

suggests that consumers have a need to be consistent in the way they feel, behave, and think about a concept

Answer 48

tension people experience when there is a conflict between their behaviour and their cognition (i.e., beliefs). the tension experienced is called cognitive dissonance

Answer 49

1. stop behaviour 2. change belief 3. introduce a new belief that is concistent with the behaviour

Answer 50

Balance theory considers relations among elements that a person might perceive as belonging together. It involves relations among three elements, resulting in attitude structures that are called triads. Four ways to solve an imbalance in the triad: 1. Mark changes his attitudes toward Annie (and starts having a negative attitude toward her) 2. Mark changes his attitudes toward weed (and starts having a positive attitude toward weed) 3. Mark negates the relation between Annie and weed by assuming that she started 5 smoking weed when she was a teenager due to peer pressure and bad influence (reducing the free-choice element in Annie’s decision) 4. Mark stops thinking about Annie and her relation with weed (i.e., leaves the field, denial) The main managerial implication of balance theory is about celebrity/influencer endorsements or cause marketing

Answer 51

in certain cases, consumers form attitudes about a concept (e.g., a product) based on its attributes they consider to be important. attitude score = sum of the ratings of each attribute adjusted based on importance weight

Answer 52

attitude that is formed through high involvement and/or with direct experience likely predicts actual behaviour, especially when it is specific and easily accessible in consumers’ minds. However, in certain instances, attitudes may not predict actual behaviour. situational factors → may not have the money normative influence → friends may think its not cool individual differences → high need for consistency so won't swith brands

Answer 53

attempts to change a person's attitude toward a concept or behaviour. six main principles of persuasion - Reciprocity - Scarcity - Consensus - consistency (commitment) - liking - Authority

Answer 54

people are more likely to give if they receive first people are more likely to comply with a request if they receive something first because people are motivated to reciprocate the favours that are done to them.

Answer 55

items (e.g., products, brands) become more valuable when they are less accessible (i.e., when they are scarce). Limited-time deals or limited-edition products released in limited quantity are partially based on the use of the scarcity principle. Also, brands sometimes use the scarcity principle in building their business model

Answer 56

people often decide what to do or how to behave by looking at what others have done. telling people that their energy consumption was higher than the average energy consumption in their neighbourhood was a more effective strategy in reducing energy consumption, compared to giving people information about how to decrease their energy consumption and its benefits to the environment.

Answer 57

people have a strong desire to be consistent with their previous opinions, commitments, and actions. “Foot-in-the-door Technique”. The technique is based on making a small request in the beginning before bringing up the more effortful request. The idea is if the consumers says yes to a small request, it would increase the likelihood of them agreeing to a second, relatively larger request due to the consistency principle.

Answer 58

people are more easily influenced by those they like and people generally like others who (1) are similar to them, (2) give them compliments, and/or (3) cooperate with them. Salespeople, for instance, when dealing with a consumer, start the interaction by asking personal questions so that they can show that they are similar to the consumer in order to capitalize on the liking principle

Answer 59

people are more easily influenced by those they perceive to be legitimate authorities. By hanging their awards, diplomas and certifications on the walls of their clinic, the therapists were able to raise compliance by 34%. using doctors while promoting medication or dentists while promoting dental hygiene products.

Answer 60

consumers develop knowledge about persuasion (i.e., persuasion knowledge) and use this knowledge (knowledge about the persuasive tactics and techniques being used) to deal with persuasive attempts. Consumers use their persuasion knowledge to get the best outcome for themselves. If consumers get suspicious of the ulterior motive of the persuasive agent while using these persuasion tactics, they would attribute negative motives to the persuasive agent and be less easily persuaded.

Answer 61

1. Need recognition 2. information search 3. Evaluation of alternative 4. Purchase 5. Post-purchase evaluation consumers sometimes do not go through every step of this process or use decision rules when making purchase decisions.

Answer 62

consumers recognize a need, gap between the current state and the desired state

Answer 63

could be internal or external internal: searching one’s knowledge and memory to extract all the information one has about the decision on hand external: using other resources like friends, experts, consumer reviews etc. amount of info depends on: - availability - consumer's prior expertise - risk associated with the choice

Answer 64

Based on the information search, consumers form a consideration set, which includes all the options that have a chance of being purchased

Answer 65

consumers may use different strategies while making a purchase decision. - heuristics : mental shortcuts - category leader: best performing - decision rules: compensatory and non-compensatory

Answer 66

the consumer identifies attributes, then considers how important each attribute would be for making this decision, the consumer then rates each product on these attributes, before applying the decision-making rules

Answer 67

a low rating in one attribute could be compensated by a high rating in another attribute Simple additive compensatory decision-making rule: sum of all the ratings to have a total score for each product in the consideration set (presented under the total score column) and choose the one that scores the highest. Weighted additive compensatory decision-making rule: sum of all the ratings adjusted based on the importance weight to have a total score for each product in the consideration set and chose the one that scores the highest

Answer 68

Lexicographic rule: Consumer chooses the product that has the highest rating on the attribute that is the most important Elimination-by-aspects rule: Consumer identifies a cut-off point on the most important attribute and eliminates alternatives that are below the cut-off point Conjunctive rule: Consumer identifies a cut-off point on all the attributes (i.e., the cut-off point imposed to all attributes), and eliminates alternatives that are below the cut-off point on any attribute.

Answer 69

if the product’s performance surpasses the consumer’s expectations, the consumer would be satisfied. Satisfaction is important in the sense that it leads to brand loyalty if the product performance cannot achieve the consumer’s expectations, the consumer would be unsatisfied and it would be unlikely that she/he gives the brand a second chance and bad word of mouth. consumers may experience a post-purchase cognitive dissonance, thinking that an option they passed on was a better choice than the option they chose.

Answer 70

consumers may (1) reassure themselves that they made the right choice, (2) try to convince themselves that the other option was not better, (3) find some other flaws of the foregone option. to help with that compagnies have strategies like return policies

Answer 71

Immediate response of sensory receptors

Answer 72

Perception: process by which sensations are selected, organized and interpreted exposure→ attention→ interpretation

Answer 73

visual stimuli can guide where consumers fixate and pay attention to in an ad. Presenting a product in coherence with the orientation of consumers’ sensory receptors plays a role in driving mental simulation and subsequent purchase intentions. if consumers can picture themselves using it they are more likely to purchase it. consumers use observable attributes of products (e.g., shape, design, colours, etc.) to make inferences about their unobservable attributes (e.g., quality, taste, nutritional values, etc.). ugly produce example + importance of packaging colours also affect behaviour. Vision is one of the senses that is very prone to illusions and deception Elongation bias

Answer 74

Odours are known to -stir emotions -evoke memories -influence mood memories that are associated with scent are long-lasting and easy to retrieve, scent retrieval cues were rated as more emotional than those evoked by the other types of cues, consumers may make inferences about a product’s unobserved qualities based on its scent ex: citrus scents are strongly associated with cleanliness and freshness. the scent is intentionally added to these products not to increase their actual performance, but to enhance consumers’ perceptions about their performance

Answer 75

while some consumers have a high need for touch to make sense of their environment, some consumers have a lower need for touch. several implications for companies that sell their products online. creative ways to improve consumers’ online shopping experience and increase their confidence in their judgments by (i) offering flexible and free return policies, (ii) providing detailed product descriptions using analogies (e.g., soft as a feather) to help consumers experience the sensation of touch, (iii) using advanced tech tools (e.g., VR) to create the experience of sensation, etc. People sometime use touch in their interpersonal communications to signal closeness, research shows that a friendly touch of a waiter/waitress on the shoulder of a consumer significantly increases the tips may sometimes be negative consumers are more likely to spend a used, worn-out dollar bill compared to crisp one, because thy believe that the used, worn-out dollar bill may have been excessively touched by other consumers

Answer 76

Sound symbolism When we hear the sound of a word, we attach meaning to it, even perceiving physical features for the source of the sound, The sound the food makes when bitten plays a key role in taste perceptions for certain food items (e.g., potato chips, celery, crackers), impacting perceived freshness as well as quality. Ambient sound in a store music influences shopping pace—slower music produces slower shopping and results in more purchases since customers progress at a slower pace as they move through the store. When consumers enjoy the background music, they feel they have spent less time shopping relative to the actual amount of time they have spent.

Answer 77

The sense of taste is unique in the sense that it involves not only the sensory stimuli received by the mouth but other senses as well. For instance, taste is susceptible to external influences (e.g., physical attributes, brand name, product information such as ingredients, nutritional information, product packaging, and advertising).

Answer 78

When a stimulus enters the range of an individual's sensory receptors

Answer 79

absolute threshold→ minimum amount of stimulation that can be detected by the sensory channel differential threshold→ the ability of a sensory system to detect changes within or between stimuli, point of just noticeable difference (JND) Want to make sure that consumer would notice the difference in the new product, while still having certain cues (e.g., colour of the packaging) included in the product

Answer 80

The extent to which the brain's processing capacity is devoted to a stimulus We are exposed to a lot of stimuli in a given time period and we do not pay the same amount of attention to them→ 2 main factors personal factors and stimulus factors Within their visual range, consumers pay the most attention to the stimuli that is at the center. This is why, placing products in the middle shelves of retailers is very expensive.

Answer 81

Perceptual filters: Not paying attention to information coming from a filtered source Perceptual vigilance: Paying attention to information relevant to a pressing need Perceptual defence: Not paying attention to information that you don’t want to know Adaptation: Not paying attention to information due to overexposure and familiarity.

Answer 82

Size: Larger stimuli attract more attention. Color: Certain colors (bright yellow) attract more attention than others. Position: The position of a product in an assortment has a strong effect on attention. Novelty: Novel stimuli attract more attention.

Answer 83

The last step of the perceptual process, the meaning people assign the sensory stimuli. Consumers tend to interpret a sensory stimulus based on mental schemas, which are mental structures that encompass a person’s knowledge and feelings that are related to stimuli consumers’ expectations, past experiences, and environmental and contextual factors surrounding them may influence how they interpret a sensory stimuli. Given the importance of mental schemas in forming perceptions, brands must have a very good understanding of the mental schemas consumers have about their brand and offerings.

Answer 84

individual or a group conceived of having significant relevance upon an individual’s evaluations, opinions, attitudes, judgments, perceptions, aspirations, or behavior membership RG: involve others who belong to the same group as a consumer does Aspirational RG: consists of idealized, aspired figures Dissosiative RG: consumers avoid being associated with

Answer 85

consumers tend to distance themselves from products/services that are associated with dissociative RGs facebook example Dissociative RGs are also useful in motivating behaviour

Answer 86

informative influence reference group as a source to acquire information about products, brands, services, etc. normative influence reference group may define a basic code of conduct to be a part of the group comparative influence reference group as a benchmark for comparison to assess their own performance.

Answer 87

change in beliefs or actions as a reaction to real or imagined group behaviour.

Answer 88

Cultural Pressures: Certain cultures are more susceptible to social influence and conformity→ people from collectivist (vs. individualistic) cultures are more likely to conform Fear of deviance: individual may have reason to believe that the group will apply sanctions to punish behaviour that differs from the group Commitment: The more a person is dedicated to a group and values membership in it, the more motivated they will be to follow the dictates of the group. Environmental cues: Group unanimity, size, and expertise influence conformity. As groups gain in power, compliance increases. Individual differences: Some people score higher on the personality trait of susceptibility to interpersonal influence.

Answer 89

values, norms, rituals, and meanings shared by the members of a society (or an organization). You can consider culture as the personality of a society. Importantly, culture has a strong influence on the way we make sense of our surroundings and the way we behave in a given situation, which includes consumption decisions.

Answer 90

Values Norms Rituals Language/ symbols

Answer 91

the degree of importance people give to universal values varies across cultures - power distance belief - individualism/ collectivism -uncertainty avoidance - femininity/ masculinity - long term orientation - indulgence these specific six dimensions gained prominence is due to their significant impact on various aspects of behavior, including consumption decisions provide a framework for analyzing and comparing cultural differences in a quantifiable manner.

Answer 92

The extent to which the members of a society accept and expect unequal distributions of power In cultures with high power distance beliefs (i.e., unequal distribution of power is expected/accepted by the members of the society), it is likely that (i) there are more hierarchical relationships and (ii) social inequality is considered normal in the society, compared to cultures with low power distance belief

Answer 93

The extent to which the members of a society prioritize individual or group interests. collectivist cultures (i) give more importance to collective, societal goals than individual goals, (ii) less likely to change group membership and more connected with their social networks and groups, (iii) social connections and networks (friends, family) are a more significant part of the self-concept, compared to individualistic cultures.

Answer 94

The extent to which the members of a society tolerate uncertainty and ambiguity Members of a culture with high uncertainty avoidance tend to (i) avoid ambiguity, (ii) have higher need for rules and structures (iii) show less tolerance to unorthodox behaviour, compared to the members of a culture with low uncertainty avoidance.

Answer 95

The extent to which the members of a society values traits traditionally associated with men (such as assertiveness, competitiveness, and dominance) or traits traditionally associated with women (compassion, empathy, nurturance)

Answer 96

The extent to which the members of a society are focused on obtaining gains in the short term or the future In long-term-oriented cultures, people tend to prioritize future rewards over immediate gratification. In short-term oriented cultures, people tend to focus on immediate gains and present-day realities.

Answer 97

The extent to which a society allows free gratification of basic human desires related to enjoying life and having fun (indulgence) versus suppressing such desires through strict social norms (restraint) In cultures that are high in indulgence, people tend to be more relaxed, open to change, and value enjoyment and leisure time. In contrast, cultures that are high in restraint tend to be more traditional, and conformist, and place a greater emphasis on self-control and fulfilling social obligations.

Answer 98

Rules dictating what is right/wrong, acceptable/ unacceptable From a managerial perspective, companies need to have a good knowledge about the norms in the countries, where they offer their products/services, and respect these norms while designing their marketing strategy.

Answer 99

activities that occur in a fixed sequence and that tend to be repeated periodically Companies need to have a comprehensive knowledge of the rituals and the way they are exercised in a given culture: 1. A majority of these rituals involve the consumption of goods, which companies could supply. 2. Companies can build rituals around their products or services. ex: way to eat an Oreo

Answer 100

The meaning attached to symbols such as colors and numbers may vary across cultures. It is important to know the meanings attached to such symbols in order not to make sure that your marketing strategy is well-aligned with a country's cultural orientation.

Answer 101

A brand should do deep cross-cultural analysis* to understand the degree to which the countries/cultures they want to expand behave differently in the product category of interest The more different the countries/cultures in the way behave in the product category, a more localized strategy is necessary.

Answer 102

a group whose members share beliefs and common experiences that set them apart from others within a broad culture focus on three subcultures: age, region, and ethnicity

Answer 103

Generations: The era in which one grows up bonds them with millions of others who came of age at a certain period, through common cultural heroes and shared memories of certain events. Age Cohorts: A group of people of the same approximate age who have similar experiences.

Answer 104

regions differ in weather patterns, populations, ethnic mix, food and product preferences, resources and even norms, Marketers need to know preferences and products in regional markets

Answer 105

Marketers cannot ignore the diversity of cultures given one’s ethnic subculture shapes consumption decisions. Hence, marketers at bare minimum foster inclusiveness and/or offer services uniquely tailored to the needs of ethnic subcultures

Answer 106

relatively small groups based on similar lifestyles or aesthetic preferences. The members share a strong identification with an activity or art form and typically have a unique set of norms, vocabulary, and product insignias.

Answer 107

product information transmitted by individuals to individuals very powerful→ influences two-thirds of all consumer goods sales unlike advertising, WOM is often backed up by social pressure to conform to these recommendations. Marketers have been aware of the power of WOM for many years, but recently they've been more aggressive about trying to promote and control it, instead of sitting back and hoping people will like their products enough to talk about them.

Answer 108

- Impression Management - Emotion Regulation - Social Bonding - Informing Others - Persuading Others

Answer 109

purposes of self-enhancement (i.e., to be perceived more positively, signalling status, etc.), identity-signalling (i.e., to express their self-concept), and/or filling conversational space (i.e., talking about products/services/experiences as a conversation point).

Answer 110

Consumers may talk about products/services/experiences for venting (i.e., intensely expressing negative emotions), taking vengeance (i.e., punishing a brand), reducing cognitive dissonance, or, generating support by seeking similar opinions.

Answer 111

Consumers may talk about products/services/experiences to reinforce their shared values with the person they communicate with or reduce the feeling of being lonely.

Answer 112

Consumers may talk about products/services/experiences to help other consumers make better decisions or avoid negative experiences.

Answer 113

Consumers may talk about products/services/experiences to convince someone to go along with their preferences (e.g., talk positively about a restaurant that they want to go to).

Answer 114

For positive WOM - Incentives: giving a free product for writing a review - delayed review reminders (asking consumers to write a review about a product they purchased a week after they purchased it) - Companies do benefit from allowing consumers to directly complain to company (vs. complaining on other platforms).

Answer 115

- strong influence - high credibility - budget-friendly (compared to celebrities for example) - efficient access to niche segments - builds online community

Answer 116

- suspicion of ulterior motives (pay, reciprocity) - tainted authenticity (posting too many brand-created content) - low with business domain of the brand

Answer 117

explains how consumers process persuasive messages and make decisions based on different routes of information processing. emphasizes the extent of elaboration or mental processing that individuals dedicate to evaluating a message two main routes to persuasion: central route and the peripheral route. Depending on their (i) motivation, (ii) ability (iii) opportunity to process information

Answer 118

high involvement cognitive response attitude change behaviour change consumers critically analyze and deeply process the content of a persuasive message. consumers carefully form their beliefs, which leads to change in attitudes and behaviour. Attitude change in this route is more enduring and resistant to counterarguments. quality of arguments presented, will be important in determining attitude change informative adds are great as the consummer needs to have all the product features before forming their attitude

Answer 119

low involvement belief change behaviour change attitude change consumers rely peripheral cues (environmental cues) rather than deeply analyzing the message content. beliefs are quickly formed, and guides behaviour. After engaging in the behaviour, consumer experiences an attitude change. the change in attitude might not be as stable or enduring celebrity endorsement works great as consumers will simply remember the celeb and think the product is good

Answer 120

A diagram that illustrates the steps a consumer goes through when engaging with a company, whether it be a product, service, experience or any combination

Answer 121

Any interaction between the consumer and the brand

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