MKTG 4410 test 2

What are the three types of reference groups, and how can these groups be described?

1. Aspirational groups: a group that one admires and wants to be like 2. Associate groups: a group to which one currently belongs (brand community: consumers with a structured set of relationships involving a particular brand) 3. Dissociative groups: a group that is not associated with another group or does not get inspired by other people. These people believe in their own research and knowledge. This is not a good strategy for companies to use because it will not allow them to focus on one target market.

What three techniques can marketers use to encourage consumer compliance?

1. Self-perception theory: attitudes develop as consumers look at and make judgements about their own behavior. 2. foot-in-the-door technique: compliance with a critical request is increased as an individual first agrees to a small request. 3. low-ball technique: get initial commitment, then change the deal.

What five broad groups of sources can consumers consult during external search?

1. retailers 2. social media searches 3. interpersonal search 4. independent search 5. experimental search

When would a consumer be more likely to conduct an external search by brand rather than by attribute? Which search process would a marketer prefer consumers to use- and why?

A consumer would be more likely to conduct an external search by brand when they are in a store. Marketers prefer that consumers shop by brand because it affects what brands consumers are choosing among and what brands the marketers are competing with.

How does a discrepancy between the ideal state and the actual state affect consumer behavior?

A discrepancy between these two states happens when the perceived difference between these two states is high. Ideal state is when the consumer perceives the way the things are or the way in which the consumers expect the things to be like. The actual state is the state in which things actually are. A discrepancy between these two states greatly affects the consumer behavior because consumers can get unmotivated very easily when things dont happen or appear the way they want them to be.

How do appraisals and feelings as well as affective forecasting influence consumer decision-making?

Appraisals, feelings, and affective forecast deals with consumer feeling towards a brand or product. Appraisal and feelings, explains the way people think and emotions they have towards the product. People purchase the brand depending on how they feel about a popular brand. Affective forecasting is the future prediction of the brand among the consumers. The consumer predicts about their emotional feelings towards the product and its usage in the future. So appraisal defines how the consumer feels about e product and affective forecasting predicts how they will feel when they use the brand in the future.

In what ways do the characteristics of consumers, the decision, and the group context influence consumer decision-making?

Characteristics of consumers can influence decision making based on the expertise, mood, time pressure, extremeness aversion, and metacognitive experiences. Decisions can influence decision making based on information availability, information format, and trivial attributes

How does confirmation bias operate in internal and external searches for information?

Confirmation bias is the tendency to recall information that confirms the overall beliefs rather than contradicting them. In an internal search confirmation, bias always tends to present the positives rather than the negatives. When consumers try to recall the brand usage and familiarity of a product, they tend to recall only the best outcomes rather than the negatives. So the actual scenario gets wiped off and the likeliness of consumers choosing the product based on mere perception increases. During and external search, the confirmation bias can lead consumers to avoid important information, resulting in less than optimal decision outcome. Therefore, if a lower priced, high quality brand is available then consumers might never acquire information about it and therefore never select it for purchase.

How does consumer judgment differ from consumer decision-making?

Consumer decision making is related to the purchase decision made by the customer, while judgement is the outlook of the customers towards the product. Consumer judgement depends upon the value of the product or the brand whereas consumer decision making depends upon the choices or the alternatives available. Judgment depends on upon the evaluation of an object with its value and decision making comes with options available.

Explain how consumers use their goals, decision timing, and framing to decide which criteria are important for a particular choice.

Depending on the goal, consumers will use different criteria when choosing among brands. Timing affects consumer choices because they will be more general and abstract if the decision will be made later, and more specific and exact. (ex. When trying to decide what restaurant to go to, more time=which restaurant will create the best dining experience, less time= which restaurant is closet to the house). Decision framing can affect how important a criterion is to our choice. (ex. people are more likely to take a risk if it is framed as avoiding a loss rather than acquiring a gain

How do involvement and perceived risk, perceived costs, and benefits, and the consideration set affect a consumer's motivation to conduct an external search?

In terms of involvement and perceived risk, consumers with high involvement are more likely to engage in higher pre purchased external search, people engage in more external searching when the perceived risk is higher. In terms of perceived costs and benefits, external searching is high when benefits are high compared to costs. In terms of consideration set, external search is high when a consideration set contains many attractive options.

Why is it important for marketers to consider both physical and emotional detachment aspects of consumer disposition?

It is important for marketers to understand both because these two factors help explain the consumer disposition. For physical factors, these include things like quality, shape, and color could could lead to customers disposing of the product because they are not satisfied with it anymore. In terms of emotional factors, consumers might feel that the emotions they might have previously had are not longer the same because of

How do sources of influence differ in terms of marketer domination and delivery? (CH.11)

Marketing sources are when influence is delivered from a marketing agent (advertising and personal selling). Non-marketing sources are when influence is delivered from an entity outside of a marketing organization (family, friends, and the media)

Why do companies sometimes target opinion leaders for marketing attention?

Opinion leaders are individuals who act an information broker between the mass media and the opinions/behaviors of an individual or group; they are a credible and unbiased source of information

How are social media affecting social influences?

Social media allows word-of-mouth advertising to be spread quickly and far. Marketers can also use social media to target specific consumer groups (reach, capacity, capability)

What is the anchoring and adjustment process, and how does it affect consumer judgment?

The anchoring and adjustment process is the process where consumers first evaluate the product and then the product is adjusted with the information that becomes available. This can affect consumer judgment because if the consumer has a negative initial evaluation then the anchor will most likely be negative as well (and vice versa).

How do consumers use compensatory and non-compensatory decision-making models?

The compensatory model is a cost benefit analysis of the consumer. The consumer analysis the good and bad things about the brand with the positive and negative information. When many products are marked with both positive and negative information, the product with more positive information is selected. The non-compensatory model omits or rejects the brand completely. Consumers have a cut off level to reject a brand that is evaluated the negative information

What factors affect the inclusion of brands in the consideration set, and why would a company want its brand in the consideration set?

The five factors that affect the inclusion of brands in the consideration set include prototypically, brand familiarity, goals and usage situations, brand performance, and retrieval codes. A company wants their brand to be in the consideration set in order to increase sales, promote their brand, have a higher market share, be the dominant player in the market for particular product, and to make a profit.

Why do marketers need to know that attribute processing is easier for consumers than brand processing?

This is because information for attribute processing is not always available in a manner that facilitates it and because of this, there is an increasing popularity of shopping agents.

Differentiate between information valence and modality.

Valence evaluated the importance of information. Valence is a kind of response or feedback conveyed by a customer that is either positive or negative. Positive valence spreads faster than negative valence among customers, but negative information receives more attention. Modality evaluates the sources of the information. It is the medium at which information is conveyed. It may be conveyed through verbal or non-verbal channels.

Under what circumstances do consumers use and alternative-based strategy or an attribute-based strategy for decision-making?

When alternatives are less comparable, consumers tend to use an alternative-based strategy. Consumers with better defined goals are more likely to use alternative-based strategy because they can more easily recall the various options and results.