MKTG 3310 Quiz #2

Five Adopter Groups

-*Innovators* (venturesome, try new ideas at some risk) -*Early adopters* (guided by respect-they are *opinion leaders* in their communities and adopt new ideas early but carefully. -*Early majority* (deliberate-although they rarely are leaders, they adopt new ideas before the average person) -*Late majority* (skeptical-they adopt an innovation only after a majority of people have tried it). -*Laggards* (tradition bound--they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself).

Five Characteristics important in influencing an innovation's rate of adoption

-*Relative advantage*: the degree to which the innovation appears superior to existing products -*Compatibility*: the degree to which the innovation fits the values and experiences of potential customers -*Complexity*: the degree to which the innovation is difficult to understand or use. -*Divisibility*: the degree to which the innovation may be tried on a limited basis. -*Communicability*: the degree to which the results of using the innovation can be observed or described to others. The characteristics of the new product affect its rate of adoption.

Stages in the Adoption Process

1. *Awareness*: The consumer becomes aware of the new product, but lacks information about it. 2. *Interest*: The consumer seeks information about the new product. 3. *Evaluation*: The consumer considers whether trying the new product makes sense. 4. *Trial*: The consumer tries the new product on a small scale to improve his or her estimate of its value. 5. *Adoption*: The consumer decides to make full and regular use of the new product. The new product marketer should think about how to help consumers move through these stages. Ex: Hyundai Assurance Program

New product

A good, service, or idea that is *perceived* by some potential customers as new. It may have been around for a while, but our interest is in how consumers learn about products for the first time and make decisions on whether to adopt them.

Subculture

A group of people with shared value systems based on common life experiences and situations. Include nationalities, religions, racial groups, consumer age groups and geographic regions. Ex: P&G's CoverGirl Queen cosmetics line was inspired by Queen Latifah to "celebrate the beauty of women of color."

Motive (drive)

A need becomes a *motive* when it is aroused to a sufficient level of intensity. A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Consumer market

All the individuals and households that buy to acquire goods and services for personal consumption.

Role

Consists of the activities people are expected to perform according to the persons around them. Each role carries a status reflecting the general esteem given to it by society. *People usually choose products appropriate to their roles and status.*

Selective retention

Consumers are likely to remember good points made about a *brand they favor* and to forget good points made about competing brands.

Information Search

Consumers may or may not search for more information. If their drive is strong and a satisfying product is near at hand, they may likely buy it then. If not, they may store the need in memory or undertake an information search related to the need. Consumers can obtain information from any of several sources. These include *personal sources, commercial sources, public sources, and experiential sources.* Generally, the consumer receives the most information about a product from commercial sources controlled by the marketer. However, the most effective sources tend to be personal.

Cues

Minor stimuli that determine when, where, and how the person responds. For example, the person might spot several brands in a shop window, hear of a special sales price, or discuss cameras with a friend. These are all cues that might influence a consumer's *response* to his or her interest in buying the product. Suppose the consume buys a Nikon camera. If the experience is rewarding, the consumer will probably use the camera more and more, and his or her response will be *reinforced.* Then, the next time the consumer shops for a camera, or for binoculars or some similar product, the probability is greater that he or she will buy a Nikon product. *The practical significance of learning theory for marketers is that they can build up demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement*.

Online social networks

Online social communities--blogs, social networking Web sites, or even virtual worlds--where people socialize or exchange information and opinions. *Marketers hope to use social networks to interact with consumers and become a part of their conversations and lives.*

Reference groups

Serve as a direct (face-to-face) or indirect points of comparison or reference in forming a person's attitudes or behavior. *They expose a person to new behaviors and lifestyles, influence the person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices.*

Personality

The unique psychological characteristics that distinguish a person or group. The idea is that *brands also have personalities*, and that consumers are likely to choose brands with personalities that match their own.

Groups

Two or more people who interact to accomplish mutual or individual goals.

Buyer Decision Process

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Postpurchase behavior

Belief

A *descriptive thought* that a person holds about something. May be based on real knowledge, opinion, or faith and may or may not carry an emotional charge. Marketers are interested in the beliefs that make up product and brand images that affect buying behavior.

Attitude

A person's *consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea*. They put people into a frame of liking or disliking things, of moving toward or away from them. They are difficult to change. A person's attitudes fit into a pattern, and to change one attitude may require difficult adjustments in many others. Thus, a company should usually try to fit its products into existing attitudes rather than attempt to change attitudes. Ex: Coca-Cola's Fuze brand.

Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions. It involves measuring customer's major *AIO dimensions--activities* (work, hobbies, shopping, sports, social events), *interests* (food, fashion, family, recreation), and *opinions* (about themselves, social issues, business, products). *Consumers don't just buy products, they buy the values and lifestyles those products represent.* Ex: BMW sells the convertible lifestyle

Drive

A strong internal stimulus that calls for action. It becomes a *motive* when it is directed toward a particular *stimulus* object. Ex: A person's drive for self-actualization might motivate him or her to look into buying a camera. The consumer's response to the idea of buying a camera is conditioned by the surrounding cues.

Postpurchase behavior

After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in *postpurchase behavior* of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with the purchase is the relationship between the *consumer's expectations* and the product's *perceived performance*. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. *The larger the gap between expectations and performance, the greater the consumer's dissatisfaction.* Sellers should only promise what their brands can deliver so that buyers are satisfied.

Subliminal advertising

Being affected by marketing messages without even knowing it (not very credible).

Cognitive dissonance

Buyer discomfort caused by *postpurchase conflict*. Every purchase involves compromise. Consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brand not purchased. Consumers feel at least some post purchase dissonance for every purchase. By studying the overall buyer decision, marketers may be able to find ways to help consumers move through it.

Need recognition

Buyer recognizes a problem or need. The need can be triggered by *internal stimuli* when one of the person's normal needs--hunger, thirst, sex--rises to a level high enough to become a drive. A need can also be triggered by *external stimuli.* Ex: advertisement or discussion with a friend might get you thinking about buying a new car.

Learning

Changes in an individual's behavior arising from *experience*.

Adoption

Decision by an individual to become a regular user of the product.

Membership groups

Groups that have a direct influence and to which a person belongs.

Central question for marketers

How do consumers respond to various marketing efforts the company might use?

Purchase decision

In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer's *purchase intention* will be to buy the most preferred brand, but two factors can come between the purchase *intention* and the purchase *decision*. The first factor is the *attitudes of others.* If someone important to you thinks that you should buy the lowest-priced car, then the chances of you buying the more expensive car are reduced. The second factor is *unexpected situational factors.* The consumer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, unexpected events may change the purchase intention. ex: Economy taking a turn for the worse.

Other Stimuli

Major forces and events in the buyer's environment: -Economic -Technological -Social -Cultural *All of these inputs enter the buyer's black box, where they are turned into a set of observable buyer responses: the buyer's brand and company relationship behavior and what he or she buys, when, where, and how often*

Opinion leaders

Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others. *The influentials, or leading adopters.*

Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. Measured as a combination of occupation, income, education, wealth, and other variables. *People within a given social class tend to exhibit similar buying behavior.*

Adoption process

The *mental process* through which an individual passes from first hearing about an innovation to final adoption.

Marketing Stimuli

The Four P's: -Product -Price -Place -Promotion

Consumer buyer behavior

The buying behavior of final consumers--individuals and households that buy goods and services for their personal consumption (All of these final consumers combine to make up the *consumer market*).

Evaluation of alternatives

The marketer needs to know about *alternative evaluation*--how the customer processes information to arrive at brand choices. The customers arrive at attitudes toward different brands through some evaluation procedure. This procedure depends on the individual consumer and the specific buying situation. Marketers should study buyers to find out how they actually evaluate brand alternatives. If they know what evaluative processes go on, marketers can take steps to influence the buyer's decision.

Perception

The process by which people select, organize, and interpret information to form a *meaningful picture of the world*. People can form different perceptions of the same stimulus because of three perceptual processes: *selective attention, selective distortion, and selective retention*.

Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.*Marketers are always trying to spot cultural shifts in order to discover new products that may be wanted.*

Selective attention

The tendency for people to *screen out most of the information to which they are exposed*--means that marketers must work especially hard to attract the consumer's attention.

Selective distortion

The tendency of people to *interpret information in a way that will support what they already believe*.