Marketing Chapter 6

What are examples of psychological factors? (6.5)

--Motives --Attitudes --perceptions --learning and memory --lifestyle

what are the parts of the consumer decision making process? (6.5)

--Psychological factors --Social factors --marketing Mix --Situational factors

What are the five aspects of the sensory situation? (6.5)

--Visual sense --auditory sense --olfactory sense --Tactile sense

What are the three parts of the post purchase outcomes? (6.4)

--customer satisfaction --post purchase cognitive dissonance -customer loyalty

what are the two types of key information searches? (6.2)

--internal search for information --external search for information

what are the five types of risk associated with purchase decisions that can delay or discourage a purchase? (6.3)

--performance --financial --Social --physiological --Psychological

what are the two-decision process that consumer use to simplify the potentially of complicated decision processes? (6.3)

1) Determinate attributes 2) Consumer decision rules

what are the three things that affect consumer search processes. (6.2)

1) Perceived benefits vs. perceived cost of search 2) The locus on control 3) actual or perceived risk

what are the serval steps to ensure post purchase satisfaction? (6.4)

1) building realistic expectations, not too high and not too low 2) demonstrate correct product use-improper usage can cause dissatisfaction 3) stand behind the product or service by providing money-back guarantees and warranties 4) encourage customer feedback, which cuts down negative word of mouth and help marketers adjust their offerings 5) contact customer customers and thank them.

what are the two ways reference groups affecting the buying decisions? (6.5)

1) offering information 2) enhancing a consumer's self-image.

A person's enduring Evalution of his or her feelings about and behavioral tendencies towards an object or idea. What are the three components of this term? (6.5)

Attitude --Cognitive, affective, and behavioral

At work when the consumer is evaluating alternatives and trade off one characteristic against another such as the good characteristics compensate for bad ones. Give an example. (6.3)

Compensatory decision rule --such as the consumer's willingness to pay more for a healthier food choice.

The set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. what are the two types of this term? (6.3)

Consumer decision rules --compensatory or non-compensatory

A measure that indicates what percentage of visitor or potential customer click, buy, or donate at the site. give an example of this term. (6.3)

Conversion rate --such as the # of virtual abandoned carts on a retailer's site.

Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision. (6.3)

Evoked set

Risk associated with a monetary outlay; includes the initial cost of the purchase as well as the cost of using the items or service. (6.3)

Financial risk

Consumers interest in a product or service. What are the two-buying decision that depend in this term? (6.6)

Involvement --extend problem solving or limited problem solving (such as impulse or habitual decision making)

A paradigm for classifying people's motives. It argues that when lower-level, more basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (Social and personal). What are the tiers in this model? (6.5)

Maslow's hierarchy of needs --Physiological (food, water, shelter) --Safety (secure employment. health) --Love (friendship, family) --esteem (confidence, respect) --self-actualization (personal growth such as intellectual, aesthetic, creative etc.)

A need or want that is strong enough to case that person to seek satisfaction. What is an example of this term? (6.5)

Motive --Maslow's Hierarchy of needs

A compensatory model of customer decision making based on the notion that customer sees a product as a collection of attributes or characterizes. The model uses a weighted average score based on the importance of various attributes and performance on those issues. (6.3)

Multi-attributes model

At work when consumer choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes (6.3)

Non compensatory decision rule

Needs relating to be basic biological necessities of life, food, drink, rest, and shelter. part of the Maslow's Hierarchy. How does this relate to marketing? (6.5)

Physiological needs --such as the hotel and food industries

The fear of an actual harm should a product not perform properly. (6.3)

Physiological risk or safety risk

Those brands or stores that the consumer can readily bring forth from memory. (6.3)

Retrieval set

Factors affecting the consumer decision process; those that are specific o the situation that may override, or least influence, psychological and social issues. what are the two aspects of this term? (6.5)

Situational factors --purchase situation --sensory situations --temporal states

The fears that consumer suffer when they worry others might not regard their purchases positively. (6.3)

Social risk

our state of mind at any particular time can alter our preconceived notions of what we are going to purchase. Give an example. (6.5)

Temporal state. --such as morning vs. night people. This may influence the purchasing decision of some customer like what restaurant they chose to go to.

A sensory stimulation that includes color, lighting, brightness, size, shape, and setup of a retail space and the products within it. (6.5)

Visual sense

A component of attitude that reflects what a person feels about the issue at hand-his or her like or dislike of something (6.5)

affective component

A sensory stimulation that involves hearing and influences that shopping experiences (e.g., music). give example. (6.5)

auditory sense. --such as the difference in music at target and the H&M at the mall.

a component of attitude that comprises the action a person takes with regard to the issue at hand. (6.5)

behavioral component

When evaluating alternatives, the influence that the design of the environment has on how consumers make choices. Give an example of this. (6.3)

choice architecture --such as the items placed near checkout

a component of attitude that reflect what a person believes to be true. (6.5)

cognitive component

What are the different types of social factors is marketing concerned with? (6.5)

consist of the customer's: --family --reference group --and culture

The shared meanings, beliefs, morals, values, and customs of group of people. It is transmitted by words, literature, and institutions and is passed down from generations to generation and learned over time. (6.5)

culture

An element of choice architecture (the environment) that deals with a "no-action" condition by imposing a choice on a person who fails to make decision or does not actively opt for a different alternative. Give an example. (6.3)

default --such as options to encourage people to receive their messages.

Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. Give examples. (6.3)

determinant attributes --such as perception of subway being healthier or the yellow stitching on docs

part of Maslow's hierarchy, these are needs that enable people to fulfill inner desires. How does this relate to marketing? (6.5)

esteem needs. --such as the gym

Consist of a set of salient, or important, attributes about a particular product. These attributes could include selling price, fit, materials, customer support etc. (6.3)

evaluative criteria

A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives often occurs when the consumer perceives that the purchase decision entails a lot of risk. (6.6)

extend problem solving (high-involvement consumer)

Refers to when consumers believe that fate or other external factors control all outcomes. (6.3)

external locus of control

occurs when the buyer seeks information outside his or her personal knowledge based to help make the buying decision. Such as friend or family, advertisement. (6.2)

external search for information

pertains to the performance of a product for service. (6.1)

functional needs

a purchase decision process in which consumer engage with little conscious effort. (6.6)

habitual decision making

a buying decision made customer on the spot when they see the merchandise (6.6)

impulse buying

products that are purchased without planning, such as fragrances and cosmetics in a department store and magazines in supermarkets (6.3)

impulse products

The first stage in memory development in which consumer transform information that they receive about products and services into storable information. (6.5)

information encoding stage.

The second stage in memory development that refers to how that knowledge get integrated and stored with what consumer already know and remember. (6.5)

information storage stage

Refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more searches activates. (6.3)

internal locus of control

Occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences. (6.2)

internal search for information

A person's thoughts process or behaviors that arises from experience and takes place through the consumer decision process. (6.5)

learning

The way a person lives his or her life to achieve goals. (6.5)

lifestyle

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. Relies more on experience than external info. what are the two terms associated with this concept? (6.6)

limited problem solving. (Low-involvement consumer) --Impulse buying --Habitual decision making

Part of Maslow's hierarchy, needs are expressed through interactions with others. (6.5)

love needs

Psychological factors that affect decision-making that consist of information that has been acquired and stored in the brain, to be available and utilized when needed. What are the three stages of this term? (6.5)

memories 1) information encoding stage 2) information storage stage 3) retrieval stage

The beginning of the consumer decisions process; occurs when consumer recognize they have an unsatisfied need and want to go from their actual, needy states to a different, desired state. (6.1)

need recognition

occurs when consumer spread negative information about a product, service, or store to others. (6.4)

negative word of mouth

One element of the choice architecture (environment) that alters behavior in a predictable way, without forbidding other options or significally changing any economic incentives. (6.3)

nudge

a sensory stimulation that involves smell and influences that shopping experience, e.g., cinnamon rolls. (6.5)

olfactory senses

A customer privacy issue prevalent in the European Union. Take the perspective that consumers "own" their personal information. Retailers must get consumer to explicitly agree to share this personal information. (6.3)

opt in

A customer privacy issue prevalently in the United States. Take the perspective that personal information is generally viewed as being in the public domain and retailer can is it in any way they desire. Consumer must explicitly tell retailers not to use their personal info. (6.3)

opt out.

The process by which people select, organize, and interpret information to form a meaningful picture of the world. (6.5)

perception

The perceived danger inherent in a poorly performing product or service. (6.3)

performance risk

The psychologically uncomfortable sate produced by an inconsistency between beliefs and behaviors that in turn evoke a motivation to reduce the dissonance, buyers' remorse. give an example of this term. (6.4)

post purchase cognitive dissonance --such as felling guilty after buying expensive TV, you start to question where it was worth it or not. it is common for items that are expensive and not often purchased.

pertain to the personal gratification consumers associate with a product or service. (6.2)

psychological needs

pertains to the personal gratification consumer associate with a product or service. (6.1)

psychological needs.

Associated with the way people will feel if the product or service does not convey the right image. (6.3)

psychological risk

one or more persons who an individual's uses as a basis for comparison regarding beliefs, feelings, and behaviors. Give example of this term. (6.5)

reference group --family, friends, coworkers, or famous people

The third stage in memory development in which consumer access desired information. (6.5)

retrieval stage

One of the needs in Maslow's Hierarchy of needs; pertains to protections and physical well-being. How does this relate to marketing? (6.5)

safety needs --such as airbags, alarms, vitamins, etc.

when a person is completely satisfied with his or her life. (6.5)

self-actualization such making decision based off your own desires.

Give an example of purchase situation. (6.5)

such as buying someone a gift for s special occasion such as a birthday or wedding

give an example of Perceived benefits vs. perceived cost of search. (6.2)

such as making a decision to buy a car vs. buying coffee

A sensory stimulation that involves touch and influence the shopping experience. (6.5)

tactile sense

a sensory stimulation that involves taste and influences the shopping experience e.g. food and beverages. (6.5)

taste sense

All possible choices for a product category. (6.3)

universal set

goods or services that are desired but not necessarily needed. (6.1)

wants