Marketing Chapter 4

What is brand extension?

a well-known and respected brand name from one product category is extended into other product categories.

What is involved in the evaluation of alternatives and purchase?

analyze product attributes (looking for apt. narrow down search by looking for places with a swimming pool, ensuite washer) use cutoff criteria (maximum or min levels of price) rank attributes by importance (renting a place closer)

What is a stimulus?

any unit of input affecting one or more of the fives senses: sight, smell, taste, touch, hearing.

How can marketers reduce dissonance?

effective communication Follow-Up Guarantees Warranties Service during and after the sale

Define Value:

enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

Define Social Class:

group of ppl in a society who are considered nearly equal in status or community esteem reg. socialize among themselves both formally and unformally. share behavioural norms.

What are some characteristics of extensive decision making?

high levels of involvment high cost goods evaluation of many brands long time to decide may experience cognitive dissonance.

Define Subculture:

homogenous group of ppl who share elements of the overall culture as well as unique elements of their own group.

What is the relationship between family and decision making?

initiators Decision makers consumers influencers purchasers

What is cognitive dissonance?

inner tension that a consumer experiences after recognizing an inconsistency between behaviour and values or opinions. (megan usually tans in tanning bed, but tries new "airbrush" tanning method, that costs more...she feels anxiety before using it)

What are some characteristics or routine response behavior?

little involvement in selection process freq. purchased low cost goods may stick with one brand buy first evaluate later quick decision

What are some characteristics of limited decision making?

low levels of involvement low to moderate cost goods evaluation of a few alternative brands short to mod time to decide

What are measurements of social class?

occupation income education wealth other variables

What is perception?

process by which people select, organize, and interpret stimuli into a meaningful coherent picture (how we see the world, and how we recognize we need help in making a decision)

What is consumer behaviour?

processes a consumer uses to make purchase decision, as well as to use and dispose of purchased goods or services, also includes factors that influence purchase decisions and the product use.

What are some factors that determine the extent of a external info search?

risk knowledge product experience level of interest confidence in decision

How can consumers reduce dissonance?

seeking info that reinforces + ideas about the purchase avoiding information that contradicts the purchase decision revoking the original decision by returning the product.

What are the components of Reference groups:

*DIRECT* (face-to-face memberships) -*primary* (small, informal group, family friends) -*secondary* (large, formal, professional group, religious group) *INDIRECT* (non memberships) -*aspirational* (group someone wants to join) -*nonaspirational* (group which an individual does not want to associate)

What are the Types of Learning?

*Experiential* changes a behaviour (new cold medicine does not relieve your symptoms, then to not buy again) *Conceptual* not learned through direct experience (some one telling you about a product, effects your choice from a pop machine)

What are some types of perception?

*Selective Exposure* process in which a consumer notices stimuli into a meaningful and ignores others. *Selective Retention* process by which a consumer remembers only that info which supports his or her beliefs. *Selective Distortion* process whereby a consumer changes or distorts info that conflicts with his or her feelings or beliefs.

What is the difference between a Belief and Attitude?

*belief* organized pattern of knowledge that an individual holds as true about his or her world *attitude* a learned tendency to repsond consistently toward a give object

Describe some Characteristics of Reference Groups.

*influences* -they serve as info sources and influence perceptions. -they affect an individual's aspiration levels -norms either constrain or stimluate behaviour

What are some marketing implications of Perception?

-important attributes -price -brand names -quality and reliability -threshold level of perception -product or repositioning changes -foreign consumer perception -subliminal perception

What is internal info search?

-recall info into memory (when travelling with fam, recognizing a hotel that you stayed at previously...you can recall if stay was pleasant or not)

What is external info search? What are two types?

-seek info in outside environment Non-Marketing Controlled =product info source that is not associated with advertising/promo (personal expierences, family, public sources,rating org. internet) Marketing Controlled =a product info source that originates with marketers promoting the market (mass media ads; radio, newspaper, television, magazines)

What determines consumer buying decisions and consumer involvement? 1. Routine Response Behaviour (less involvement) 2. Limited Decision Making (moderate) 3. Extensive Decision Making (more involvement)

-type of decision making exibited by consumers buying frequently purchased, low-cost goods and services: little search and decision time -type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category -most complex type of consumer decision making, used when buying an unfamilar, expensive, product or an infrequently bought item: much time for seeking info.

What are the 5 factors of consumer involvement?

1. level of consumer involvement 2. length of time to make decision 3. cost of good or service 4. degree of information search 5. Number of alternatives considered.

What must a consumer decide upon when buying or not buying?

1.whether to buy 2.when to buy 3.what to buy (product and brand) 4.Where to buy (type of retalier, online, or in store) 5.How to pay

What are ways to change beliefs?

Changing beliefs about the brand attributes -(wonderbra intro'ing leopard print) Changing the relative importance of these beliefs -(cereals high in fibre were a laxative, now shifted to help with cancers) add new beliefs -(kellogg's selling new line of diet foods because of the health benefits)

What are the components of culture?

Culture is pervasive, functional, learned, dynamic. Values Language Myths Customs Rituals Laws Marital Artifacts

What are some individual influences on buying decisions?

Gender -male and female diff. Age & Family Life Cycle -young married with children, middle aged w/o children. Personality Self-Concept Lifestyle *self concept* = how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self evaluations.

What is Stimulus generalization and Stimulus Discrimination?

Generalization form of learning that occurs when one response is extended to a second stimulus similar to the first. (microsoft's hoping that XBOX would be successful or packaging that is similar to main brand) Discrimination a learned ability to differentiate similar products. (pepsi and coke diff. customers insist on taste diff)

What is an evoked set?

Group of brands resulting from an info search, from which a buyer can choose. (41 diff. automobile makes in Can. yet consumers only contemplate 5 when buying a car)

What are some components of Opinion Leaders?

Marketers are looking to web logs or blogs, to find opinion leaders (teenagers, movies stars, sports figures, celebrities)

What is motivation in relation to marketing? (Maslow's)

Maslow's hierarchy of needs= a method of classifying human needs and motivations into 5 cat. or ascending importance

What is the five step process used by consumers when buying a goods or service?

Need Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Behaviour

What are the psychological influences that effect consumer buying decisions?

Perception Motivation Learning Beliefs & Attitudes

What are factors determining the level of consumer involvement?

Previous Experience (buying same protein) low level of involvement Interest (basketball shoes high, makeup low) Percieved Risk of - consquences (financial,social,psychological) Situation (traveling alone low level, with a partner, high level invlovement..nicer place) Social Visibility (designer labels)

What are social influences of on consumers buying decisions?

Reference groups -influences an individual's purchasing behaviour Opinion Leaders -ind. who influences the opinion of others Family Members

What is Need recognition?

Result of imbalance between actual and desire states

Define Culture?

Set of values, norms, attitudes and other meaningful symbols or behavior transmitted from one generation to the next.

What is Want?

The way a consumer goes about addressing a need.