Test 1 Flashcards
(114 cards)
1
Q
Define consumer behaviour
A
the process involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
2
Q
Define exchange
A
process whereby two or more organizations or people give and receive something of value.
3
Q
define marketing segmentation
A
identifies groups of consumers who are similar to one another in one or more ways and then devises marketing strategies that appeal to one or more groups.
- most faithful customers or heavy users.
- develop marketing mix that resonates with each market segment.
4
Q
Define psychographics
A
Differences in consumer’s personalities, attitudes, values, and lifestyles.
–> age, gender, family structure/life stage, social class/income, ethnicity, geography, lifestyle.
5
Q
Define relationship marketing
A
the process of creating, maintaining, and enhancing strong value-laden relationships with customers.
6
Q
Define database marketing
A
focuses on tracking specific consumers’ buying habits very closely and crafts products and messages tailored precisely to people’s wants and needs based on this information.
7
Q
Different types of relationships with products
A
- Self-Concept Attachment - users identity.
- Nostalgic Attachment - link with past self.
- Interdependence - part of users daily routine.
- Love - emotional bond, positive feelings.
8
Q
Define user-generated content (UGC)
A
any content (text, videos, images, reviews, etc) created by people rather than brands; voice their opinions; interactive medium.
9
Q
6 Consumer Trends
A
- Sharing Economy = blurred boundary between producers and consumers; avoid ownership and financial costs; rent an experience rather than own a thing.
- Authenticity = knowing the lineage of the companies they engage with; transparency on supply chain, ingredients, and processes.
- Value-Driven Consumption = purchase products in line with values; social consciousness.
- Increased Emphasis on inclusivity (decreased on gender) = gender neutral sizing and styling; inclusive of bodies, race, and differently abled.
- Social Shopping = ready access to product reviews and others’ immediate feedback.
- Simplification and Integration = movement toward “de-cluttering”; priority on experiences rather than things.
10
Q
Define business ethics
A
Rules of conduct that guide actions in the marketplace.
→ the standards against which most people in a culture judge what is right or wrong.
- ppl think better of products made by firms they believe are acting ethically.
11
Q
Marketing Association’s Codes of Conduct
A
- Do no harm.
- Foster trust in the marketing system.
- Represent products in a clear way in selling, advertising, and other forms of communication.
- Explain and take appropriate action regarding significant product or service risks.
12
Q
Define anticonsumption
A
the actions taken by consumers that involve the deliberate defacement or mutilation of products.
13
Q
define corporate social responsibility (CSR)
A
corporate activities that benefit the community in some way through a positive social, ethical, or environmental impact.
14
Q
Define Cause-Related Marketing
A
promise donations to charity as purchase incentives.
15
Q
Define Green Marketing
A
marketing strategy involving an emphasis on protecting the natural environment.
16
Q
Define Social Marketing
A
promotion of causes and ideas (social products), such as energy conservation, charities, and population control.
17
Q
Define Transformative Consumer Research (TCR)
A
promotes research projects that include the goal of helping people or bringing about social change.
18
Q
Dark Side of Consumer Behavior
A
- scarcity tactics.
- activities that stem from social pressures.
- cultural value on money/possessions.
- addiction.
- compulsive consumption.
19
Q
Define compulsive consumption
A
process of repetitive, often excessive, shopping used to relieve tension, anxiety, depression, or boredom.
- Behavior is not engaged in by choice.
- Gratification derived from the behavior is short-lived.
- Person experiences strong feelings of regret or guilt afterward.
20
Q
Define Shrinkage
A
inventory term for inventory and cash losses from shoplifting and employee theft.
21
Q
The Wheel of Consumer Behaviour
A
- Consumers in the marketplace.
- Consumers are individuals.
- Attitude change and decision making.
- Consumers in their social and cultural settings.
22
Q
Define sensation + 3 stages
A
immediate response of sensory receptors (eyes, ears, nose, mouth, fingers) to such basic stimuli as light, color, and sound.
–> meaning of stimulus gets interpreted by the individual.
- exposure.
- attention.
- interpretation.
23
Q
Define Sensory Marketing
A
strategy that focuses on the impact of sensations on our product experiences.
24
Q
Sight in marketing
A
- Product design.
- Colour, size, styling.
- Animations, pictographs.
- Colours are rich in symbolic value and cultural meanings; influence our emotions directly; colour associations.
25
Colour associations + marketing applications
- yellow = optimistic and youthful; used to grab attention.
- red = energy; often seen in clearance sales.
- blue = trust and security; banking and insurance.
- green = wealth/serenity; used to create relaxing environments.
- orange = aggressive; call to action (subscribe, buy, sell)
- black = powerful and sleek; luxury products).
- purple = soothing; beauty or anti-aging products.
26
Smell in marketing
- Stir emotions, create calming feelings, relieve stress, evoke memories.
- Can influence consumer cognition, increase recall of brand names.
- Microencapsulating scents in advertisements.
- Smells in stores to appeal to their target markets.
- Smell association - lemon and cleaning products.
27
Hearing in marketing
- Advertising jingles, theme songs.
- Background music to create desired moods, curated playlists.
- Feelings evoked to the sound of a text message - instant rise of dopamine.
- Music and other sounds affect people’s feelings and behaviours.
- Brand names → sound symbolism - influence our assumptions about what it describes and its attributes.
28
Touch in marketing
- Tendency to want to feel objects.
- Proliferation of touchscreens
- Orientation of the object on the screen and how we swipe on the screen.
- Haptic feedback - vibration.
- Big factor in sales interactions - servers who touch their customers receive bigger tips.
- More certain about what we can perceive when we can touch it.
29
Taste in marketing
- People form strong preferences for certain flavours.
- Flavour houses develop new tastes to please the changing palates of consumers.
- Changes in culture determine the tastes we find desirable.
- Influence consumers’ perception of the taste of the product - e.g. using colour.
- 5 basic tastes = sweetness, sourness, bitterness, saltiness, and umami.
30
Define absolute threshold
the minimum amount of stimulation that can be detected on a sensory channel.
31
Define differential threshold
the ability of a sensory system to detect changes or differences among stimuli.
32
Define Just Noticeable Difference (JND)
minimum change in a stimulus that can be detected by a perceiver.
33
Define Weber's Law
the principle that the stronger the initial stimulus, the greater its change must be for it to be noticed.
34
Define subliminal Perception
processing of information presented below the level of the consumer’s awareness.
35
Define Perceptual Selectivity
process in which people attend to only a small portion of the stimuli to which they are exposed.
36
Define adaptation
process that occurs when a sensation becomes so familiar that it is no longer the focus of attention.
1. Intensity = consumers become habituated to less-intense stimuli.
2. Duration = stimuli that require relatively lengthy exposure to be processed.
3. Discrimination = simple stimuli that do not require attention to detail.
4. Exposure = frequently encountered stimuli, rate of exposure increases.
5. Relevance = stimuli that are irrelevant or unimportant; fail to attract attention.
37
Define Schema
organized collection of beliefs and feelings represented in a cognitive category.
e.g. Lululemon doesn’t just sell leggings, they are a lifestyle brand that goes beyond just their clothing - status, health, wellness.
38
Define Gestalt Psychology
school of thought that maintains people derive meaning from the totality of a set of stimuli rather than from any individual stimulus.
- the whole is greater than the sum of its parts.
39
Define Positioning Strategy
the place a brand name occupies in the consumer’s mind with regard to important attributes and competitive offerings.
40
How to reposition strategy
1. Price leadership.
2. Attributes.
3. Product class.
4. Occasions.
5. Users.
6. Design.
41
Define Learning
relatively permanent change in behaviour caused by experience; ongoing process.
42
Classical Conditioning
learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on its own but will cause a similar response over time because of its association with the first stimulus.
Conditioned stimulus - stimulus naturally capable of causing a response.
Conditioned response - new or modified response elicited by a conditioned stimulus.
43
Instrumental Conditioning
people learn that the actions they take result in rewards and punishments; this feedback influences the way they will respond in similar situations in the future.
e.g. getting complimented on your perfume, you’re more likely to purchase it again.
44
Associative Learning
learning that occurs when the consumer makes simple associations between stimuli, without more complex cognitive processes taking place.
45
Stimulus Generalization
process that occurs when the behaviour caused by a reaction to one stimulus occurs in the presence of other, similar stimuli.
Central to branding and packaging decisions that capitalize on consumers’ positive associations with an existing brand or company names.
46
Stimulus Discrimination
behaviour caused by two stimuli is different; consumers learn to differentiate a brand from its competitors.
47
Instrumental Conditioning
individual learns to perform behaviours that produce positive outcomes and to avoid those that yield negative outcomes.
- also known as operant conditioning.
48
Shaping
learning of a desired behaviour over time by rewarding intermediate actions until the final result is obtained.
49
Learning Schedules
1. Fixed-Ratio Reinforcement = occurs only after a fixed number of responses.
2. Variable-Ratio Reinforcement = behaviour reinforced after a certain number of responses, but they do not know how many responses are required.
E.g. roll up the rim, Mcdonald’s Monopoly.
3. Fixed-Interval Reinforcement = after a specified time period, the first response that is made brings the reward.
4. Variable-Interval Reinforcement = the time that must pass before reinforcement is delivered varies.
50
Frequency Marketing
reinforces the behaviour of regular purchasers by giving them prizes with values that increase along with the amount purchased.
Frequent buyer programs - e.g. Starbucks stars.
51
Gamification
capitalizes on the desire for people to achieve increasing levels of mastery at tasks and borrows from basic principles of game mechanics to motivate consumers across a broad spectrum of behaviors.
52
Cognitive Learning Theory
assumes learning takes place as the result of internal mental processes.
53
Observational Learning
people learn by watching the actions of others and noting the reinforcements they receive for their behaviours.
54
Memory
process of acquiring info and storing it over time so that it will be available when needed.
1. Encoding → info from short-term memory is entered into long-term memory in a recognizable form.
2. Storage → knowledge entered in long-term memory is integrated with what is already in memory and “warehoused: until needed.
3. Retrieval → desired info is accessed from long-term memory.
55
Memory Systems
1. Sensory Memory = temporary storage in memory of information received from the senses.
2. Short-Term Memory = system that allows us to retain information for a short period of time.
--> Chunking = info is stored by combining small pieces into larger ones.
3. Long-Term Memory = system that allows us to retain information for a long period of time.
56
Recognition vs Recall
- Recognition scores tend to be more reliable and do not decay over time the way recall scores do.
- Recognition is a simpler process; more retrieval cues
- Recall is more important in situations in which consumers do not have product data at their disposal.
57
Response Bias
form of contamination in survey research in which some factor, such as the desire to make a good impression on the experimenter, leads respondents to modify their true answers
58
Biogenic Needs
necessary to maintain life → food, water, air, and shelter.
59
Psychogenic Needs
are acquired; needs for things like status, power, affiliation, and so on.
- Reflect the priorities of the culture(s) an individual belongs to.
60
Consumption-Specific Needs
- Need for Affiliation = to be in the company of other people.
- Need for Power = to control one’s environment.
- Need for Uniqueness = to assert one’s individual identity.
- Utilitarian Needs - functional or practical.
- Hedonic Needs - experiential, involving emotional responses.
61
Drive Theory
focuses on biological needs that produce unpleasant states of arousal.
E.g. stomach rumbling during a morning class.
62
Expectancy Theory
Perspective that behavior is largely “pulled” by expectations of achieving desirable outcomes, or positive incentives, rather than “pushed” from within.
63
Motivational Conflicts
1. Approach-Approach Conflict = person must choose between two desirable alternatives.
2. Approach-Avoidance Conflict = when we desire a goal but wish to avoid it at the same time.
3. Avoidance-Avoidance Conflict = caught “between a rock and a hard place”; choice between two undesirable alternatives.
64
Theory of Cognitive Dissonance
perspective that cognitive discomfort results from an individual holding logically inconsistent beliefs about an object or an event.
65
Inertia
purchase decisions are made out of habit because the consumer lacks motivation to consider alternatives.
66
Flow State
condition of absorption that consumers enter when they are truly involved with a product, ad, or website.
67
Product Involvement
customer’s level of interest in a particular product.
68
Ways to Increase Involvement
1. Appeal to hedonic needs - ads with sensory appeal.
2. Use novel stimuli - unusual or unexpected movements.
3. Use prominent stimuli - loud music, fast action.
4. Include celebrity endorsers - high interest, personal relevance.
5. Build a bond with consumers - maintain relationships with them.
6. Actually get consumers involved - UGC.
69
Affect
the way a consumer feels about an attitude object.
70
Negative State Relief
when the consumer engages in a behaviour that helps resolve existing negative moods.
Purchasing and consumer mood-enhancing products - e.g. chocolate.
71
Mood Congruency
notion that our judgements are often consistent with our existing mood states.
Judge products more positively when in a positive mood.
72
Self-Concept
the attitude a person holds about themselves; their attributes and how they evaluate these qualities.
73
Self-Esteem
- How positive your attitude toward yourself is.
- High self-esteem - successful, take more risks, more willing to be the centre of attention.
- Low self-esteem - more inclined to choose brands that confirm their self-views; inferior products.
74
Ideal Self vs Actual Self
Ideal Self = person’s conception of how they would like to be.
- engage in some consumption to help us reach an ideal standard.
Actual Self = more realistic appraisal of the qualities they do and don’t have.
- engage in some consumption because they are consistent with our actual self.
75
Impression Management
efforts to “manage” what others think of us by strategically choosing clothing and other cues that will put us in a good light.
76
Identity
individual’s sense of self, defined by a set of physical, psychological, and interpersonal characteristics that is not wholly shared with any other person, and include a range of affiliations and social roles.
77
Torn Self
form of self that is the result of a process of change and negotiation as one experiences conflicting values, expectations, and a process of conformity.
78
Symbolic Interactionism
sociological approach stressing that relationships with other people play a large part in forming the self.
Implies that our consumption, possessions and experiences carry shared meanings that we and others use to evaluate ourselves.
79
Looking-Glass Self
sense of self arising from the process of imagining the reaction of others toward ourselves.
- Differs depending on whose views we are considering and how accurately we predict the evaluations of us.
80
Self-Consciousness
awareness of one’s own body and self and one’s interactions with the environment, including others.
Private → tendency to think about and attend to hidden, personal aspects of the self (beliefs, aspirations, feelings).
Public → tendency to think about self aspects that are public and allow impressions from others (behaviours, mannerisms, style).
81
Self-Monitors
attune to how they present themselves, how they are perceived by others.
82
Empty Self
state that occurs when a person has an absence of community, tradition, and shared meaning.
- Experiences these absences as a lack of personal worth and emotional hunger.
- Focus on the self as a way to compensate for what we have lost.
- Creates a culture of narcissism - obsessed with what we do and needed to record it.
83
Consumption and Self-Concept
- Consumption choices influence others’ perceptions, and determine one’s self-concept and social identity.
- Embodied cognition --> changes in self-concept can arise from usage of brands that convey different meanings.
- Contributions of possessions to self-identity - most apparent when these treasured objects are lost or stolen.
84
Symbolic Self-Completion Theory people who have an incomplete self-definition in some context will compensate by acquiring symbols associated with a desired social identity.
people who have an incomplete self-definition in some context will compensate by acquiring symbols associated with a desired social identity.
85
Self-Product Congruence
- Products are chosen when their attributes match some aspect of the self.
- Cognitive matching between consumption object attributes and the consumer’s self-image. (consumer’s brand use and brand personality)
86
Extended Self
definition of self created by the external objects with which a person surrounds themselves
87
Marketing and Body Image
Body Image = consumer’s subjective evaluation of his or her physical self. (Not necessarily accurate.)
- Marketing strategies that exploit consumers’ tendencies to distort their body images and prey on insecurities about appearance.
- Gap between the real and ideal physical self - create desire to purchase products and services that will narrow that gap.
- Body image distortions → advertising messages that convey the desire to be thin.
88
Gender socialization
set of expectations regarding the behaviours appropriate on the basis of gender - gender norms.
89
Gendered products
create and perpetuate positioning of products towards male and female (pink tax).
- products geared towards women are more expensive for no reason.
90
Personality
a person’s unique psychological makeup, which consistently influences the way the person responds to his or her environment.
Not always consistent; can change depending on who you’re around.
91
Freudian behaviour theory
Human behaviour stems from a fundamental conflict between a person’s desire to gratify their physical needs and the necessity to function as a responsible member of society.
92
ID
component of the self entirely oriented toward immediate gratification.
- operates according to the pleasure principle
93
Pleasure Principle
behaviour guided by the primary desire to maximize pleasure and avoid pain.
94
Superego
component of the self that internalizes society’s rules and that works to prevent the id from seeking selfish gratification.
- person's conscience.
95
Ego
the component of the self that mediates between the id and superego.
96
Neo-Freudian Theory
People can be described as moving toward others (compliant), away from others (detached) or against others (aggressive).
1. Compliant = more likely to gravitate toward brand-name products.
2. Detached = more likely to be tea drinkers.
3. Aggressive = prefer brands with strong masculine orientation.
97
5 Big Personality Traits
1. extraversion = how well a person tolerates stimulation from people.
2. agreeableness = the degree to which we defer to other people.
3. conscientiousness = the level of organization and structure a person needs.
4. neuroticism = how well a person copes with stress.
5. openness to experience = the degree to which a person is open to new ways of doing things.
98
Public Self-Consciousness
personality trait that makes a person very aware of how he or she appears to others.
99
Need for Uniqueness
personality trait that reflects the degree to which a person is motivated to conform to the preferences of others vs standing apart from the crowd.
100
Need for Cognition
personality trait that reflects the degree to which people enjoy thinking and are motivated to spend time processing information.
Low - more likely to take shortcuts/rely on their feelings when making decisions.
High - process info carefully and scrutinize the content of advertising messages.
101
Lifestyle
set of shared values or tastes exhibited by a group of consumers, especially as they are reflected in consumption patterns.
People sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time, and how they choose to spend their disposable income.
102
Value
enduring belief that a specific mode of conduct is personally or socially preferable to an opposite mode of conduct.
103
How Values Link to Consumer Behaviour
Consumption-specific values → convenient shopping, prompt service, on-demand.
Product-specific values → ease of use, durability, style, brand name.
104
Consumer segments on the basis of the values
1. Sense of belonging.
2. Excitement.
3. Warm relationships with others.
4. Security.
105
Conscientious Consumerism
value that combines a focus on personal health with a concern for global health.
106
LOHAS (lifestyles of health and sustainability)
consumer segment that worries about the environment, wants products to be produced in a sustainable way, and spends money to advance what they see as their personal development and potential.
107
Materialism
the importance consumers attach to worldly possessions.
Materialists = those who are more likely to value possessions for their status and appearance-related meanings; link more of their self-identity to consumption.
--> Many people now value experiences more than material goods.
108
Brand Activism
purpose and value-driven messaging and practice by a brand to address a controversial, contested, or polarizing sociopolitical issue.
- When consumers disagree with a brand’s stance, they demonstrate lower attitudes toward the brand.
109
Psychographics
the use of psychological, sociological, and anthropological factors to construct market segments.
Help marketers fine-tune their offerings to meet the needs of different segments.
110
Uses of psychographic segmentation
- Define the target market.
- Create a new view of the market.
- Position the product.
- Better communicate product attributes.
- Develop an overall strategy.
- Market social and political issues.
111
Brand Personality
set of traits people attribute to a product as if it were a person.
- Old-fashioned, wholesome, traditional.
- Surprising, lively, “with it”.
- Serious, intelligent, efficient.
- Glamorous, romantic, sexy.
- Rugged, outdoorsy, tough, athletic.
112
Brand Equity
brand that has strong positive associations in a consumer’s memory and commands a lot of loyalty as a result.
113
Animism
the practice whereby inanimate objects are given qualities that make them somehow alive.
Level 1 = highest order, when an object is associated with a human individual - spokesperson in advertising.
Level 2 = objects are anthropomorphized - given human characteristics.
114
Brand Positioning Strategy
statement about what that brand wants to be in the eyes of its customers - especially relative to the competition.
