GB 490 Quiz 6 Unit 11

User

A consumer who users (consumes the product)

Brand community

A firm-centered membership or reference group that develops around a brand. Example: Harley Davidson

A reference group is

A group consumers compare themselves to, with some people aspiring to be a part of the group Ex: celebrities, or someone's friend/neighbor

Compatibility refers to

A match between the innovation's value that can be described to consumers or imagined by them

Observability is

A measure of how easily the innovation's value can be described to consumers or imagined by them

Internal and Psychological forces are

Age, personality, attitudes, consideration set

Knowing what customers do and why involves

Answering different types of questions using different methods and disciplines

Understanding culture helps because the power of culture shapes

Approved or acceptable ways to behave

Adoption of innovations happen

At various rates

A reference group can influence someone's

Attitude

The differences in individualism and collectivism cause consumers to

Categorize products and purchases differently

Collectivism

Conceive individuals as being inherently part of groups, valuing group goals and collective harmony and success (China)

Culture is always experienced

Consciously by the consumer

At the broadest level, culture influences

Consumer behavior

Complexity refers to

Consumer's anticipation of difficulty in understanding or using the innovation

Why sex sells

Consumers are torn between curiosity about new things and a fear of anything new — Loewy

Forces affecting consumer decision making:

Cultural Interpersonal/Social Internal/Psychological

Cultural forces are

Cultures and subcultures

Culture refers to

Customers, beliefs, and values held within society

The most influential membership groups may be a person's

Family

Interpersonal and social forces are

Family, reference groups, lifestyles

Firm's role in post purchase behavior

Gauge and enhance consumer satisfaction; improve disposal after end use

Membership groups

Groups to which a consumer belongs

Relative Advantage refers to

How much better a new product appears to consumers than the product is intended to replace

Firm's role in information search

Increase chances of consideration for purchase

Customers can be influenced by a variety of

Internal and external factors

Consumers who are innovators in one product category may be

Laggards in another

Culture is assumed to be _____ rather than genetically determined

Learned

A firm should understand how their customers

Make final purchasing decisions

Firm's role in evaluation of alternatives

Match type of information provided with consumers' basis of purchase decision

Characteristics of subcultures can be derived in different ways such as:

Nationality Social class Religion Political Affiliation

Firms pay attention to ____ for a group or product category

Opinion leaders

Stages of the purchase decision:

Problem Recognition Information Search Evaluation of Alternatives Post Purchase Behavior

Consumer decisions are driven by many types of influences but can seek deeper to understand

Purchasing decisions using the decision making process for an individual purchase

Consumers are great at

Rationalizing —Dichter

There are 5 general characteristics of products commonly examined in determining the rate of diffusion:

Relative advantage Compatibility Observability Triability Complexity

Firm's role in problem recognition

Remind consumers of a current need; introduce a solution to a new need

Not all innovations diffuse through the population at the

Same rate

Individualism

Separate from others, value self-reliance, self-interest, and self-esteem There is value in individual action, sometimes even against the group norm (US)

Consumers belong to even smaller groups referred to as _____ groups that have an impact on their purchase and consumption behavior

Social

Each state of the decision-making process involves

Specific marketing tasks

Opinion leaders can be effective in

Spreading consumer information and inducing trial or purchase, having an effect on how a new product/service can spread through a population

Subculture is

Subgroups that share many beliefs, values, and customs of the larger culture, but also has distinct characteristics of its ownq

Triability is

The degree to which consumers can try an innovation provisionally in advance of full adoption

Influencer

The person who attempts to sway the decision in a particular direction

Gatekeeper

The person who gathers information relevant to the decision

Decider

The person who makes the final choice

Buyer

The person who pays and/or physically acquires the purchase

Many managers would agree the most important part of their business is

Their customers

There is only one valid definition of business purpose:

To create a customer — Peter Drucker