ADV 2301 Exam 2

Expectancy Disconfirmation Model

(Satisfaction = Perceived Performance - Product Expectation) oPerceived performance < expectations DISSATISFIED oPerceived performance = expectations SATISFIED oPerceived performance > expectations DELIGHTED Manage Consumer Expectations 1. Make it easy to know what to expect from your product. 2. Don't be unrealistic in setting expectations. 3. Communicate expectation effectively by giving consistent messages.

reference groups:

- An actual or imaginary individual or group that significantly influences one's evaluations, aspirations, or behavior. -products that are not complex, low in perceived risk, or that we can try before buying, we don't care about other preferences types: -A membership reference group consists of people we actually know. -An aspirational reference group consists of people we don't know, but we admire them.

Product choice: Decision rules

-Compensatory rules: Allow the product to be evaluated on multiple dimensions; Positives can offset negatives. -Non-compensatory rules: If a product does NOT meet a minimum criteria, the item is not chosen.

what encourages conformity?

-Culture pressures: Different cultures encourage conformity to a greater/lesser degree. -Fear of deviance: A fear that the group will apply sanctions to punish nonconforming behaviors. -Commitment: The more people are dedicated to a group and value their membership in it, the greater their motivation to conform the group's wishes. -Group unanimity, size, expertise: As groups gain in power, compliance increases. -Susceptibility to interpersonal influence: One's need to have other think highly of him or her (vs. role-relaxed consumers - older, affluent, with high confidence). -Environmental cues: warmer - more likely to conform

Cultural System

-Ecology: The way a system adapts to its habitat. -Social Structure: The way people maintain an orderly social life. -Ideology: The mental characteristics of a people and the way they relate to their environment and social groups.

Habitual decision making

-Low-Cost Products -Frequent Purchasing -Low Consumer Involvement -Familiar Product Class and Brands -Little Thought, Search, or Time Given to Purchase

Situation Characteristics: 2. Social Surroundings

-Mere presence of other shoppers changes our behavior •More likely to buy name brands •More variety-seeking •Less contact with products •Rush our decisions •Large numbers of people = arousal o Crowding Effect: Negative psychological state occurs because of an overly large store density.

Problem Recognition: Actual state =/ Desired state

-Need recognition: actual state declines -Opportunity recognition: ideal state moves upward

Limited decision making

-People have already purchased product before, but not regularly -Moderate degree of perceived risk -Prices of products range between low to moderate -Evaluation of few alternative brands -Moderate involvement in selection process -Purchasing process is shorter (ex. clothes, makeup, cars)

status signaling

-Status symbols: Products whose primary function is to communicate one's social standing to others. -Conspicuous consumption: People's desires to provide prominent visible evidence of their ability to afford luxury goods.

Different Levels of Culture

-Supranational Level Culture: across broad regional areas (i.e., related countries) -National Level: Culture of a particular country -Group Level: Subcultures (Cultural divisions that contain groups of individuals)

Situation Characteristics: 4. Task Definition

-Task definition is the reason the consumption activity is occurring -Gift giving vs. Own use

RED SNEAKERS EFFECT

-Within limits, people approve of others who show non-conforming behavior. (Nonconforming behaviors = positive impressions) -The observer is unsure why one is violating a norm. -The violator is not doing it intentionally.

groups: 6 types of power

-coercive: When we influence someone because of social or physical intimidation §Short-term influence §Fear appeals, hard sells -referent: (Kate Effect) Consumers voluntarily modify what they do and buy to identify with a referent. -information: If one knows something others would like to know, he or she possesses power. -legitimate: grant power by virtue of social agreements, such as the authority we give to police officers, soldiers, doctors, etc. -expert: Expert power derives from the knowledge one possesses about a content area -reward: A person or group with the means to providepositive reinforcement has rewards power (tangible or intangible).

MATH compensatory and non-compensatory rules:

-com: simply additive rule (just add and chose highest #), weighted additive rule (multiply weight by #, then add and pick highest #) -non-com: lexicographic rule (pick the one best in the highest weighted one then second best), conjunctive rule (which meets the most criteria)

Emic and etic perspectives, glocalization

-emic: argues that each country has a national character, a distinctive set of behavior and personality characteristics. -etic: stresses commonalities across cultures.

Evaluate Alt.: Evoked set vs. consideration set vs. inept set

-evoked: the consumer can name/ count on -consideration: what they can consider / add -inept: bad experience/ count out

Information search: determinants of search

-more search, less knowledge or more knowledge, less search -more risk, more search or less risk, less search

Word-of-mouth

-product info transmitted from individuals to other individuals, more reliable and trustworthy -important to driver choice -social pressure to conform

opinion leadership

-recommendations are more influential than others when we decide to buy -people are knowledgeable and influence others attitudes or behaviors

Limited decision making: HEURISTICS

-shortcuts -skip the extended decision making process -common sense -intuitive judgment

Situation Characteristics: 3. Temporal Perspective

-time of year (pumpkin spice) -time of day (McMuffin) Time Style 1. Limited search 2. Internet shopping

The Diffusion of Innovation

1. Innovators 2. Early Adopters 3. Early Majority 4. Late Majority 5. Laggards TAM (technology acceptance model)

Hofstede's cultural dimensions

1. Power distance index (PDI) 2. Individual vs collectivism (IDV) 3. Uncertainty avoidance index (UAI) 4. Masculinity vs Femininity (MAS) 5. Long-term orientation vs. Short term orientation (LTO) 6. Indulgence vs Restraint (IND)

Julie morgan loves to go into springers old country gifts. it always smells like a field of spring flowers. the lighting gives all the products a warm glow, and the mood music is just perfect for browsing. after her visit to the store, julie is always in a better mood. springers old country gifts has attracted julie with its ___________. 1. atmospherics 2. temporal perspective 3. task definition 4. store density

1. atmospherics

angela belongs to a film club that selects and views classic movies once a month. angela won't watch scary movies on her own but agrees to watch the classic vampire film with the club because all of the other club members voted to see it. this example demonstrates which factor of conformity ? 1. group unanimity 2. cultural pressure 3. commitment to group membership 4. individual difference

1. group unanimity

in japan, people tend to infer meanings that go beyond the spoken word. This classifies Japan as a _________. 1. high context culture 2. low context culture 3. indulgent culture 4. individualist culture

1. high context culture

according to the expectancy disconfirmation model, how to improve customer satisfaction? choose all that apply. 1. improve customers perceived product performance 2. decrease customers perceived product performance 3. improve customers product expectations 4. decrease consumers product expectations

1. improve customers perceived product performance & 4. decrease consumers product expectations

which group prefers quiet signals when buying? 1. patrician 2. parvenu 3. proletarian 4. poseur

1. patrician

5 steps of cognitive decision making

1. problem recognition: (actual state not equal to desired state) 2. information search: (types of search: pre-purchase or ongoing ex. groupon // inform. sources: internal ex. memory & external ex. ad) 3. evaluate alternatives (evoked set vs. consideration set vs inept set) 4. product choice (decision rules) 5. post- purchase (did we solve 1. problem and go through process)

what type of group power does this following print ad use in ad message ? (hint the ad adopts a fear appeal) (little girl with grown man hand covering her mouth talking about smoking harms kids) 1. reward power 2. coercive power 3. referent power 4. legitimate power 5. expert power

2. coercive power

Gen lives in Japan, a country with limited space. Get enjoys a micro-refrigerator, which is small enough to fit almost anywhere. She believes that the efficient use of space is one of the characteristics that any good product should have. With respect to the functional areas of a cultural system, Get is focusing on ____ as a variable in selecting products. 1. ideology 2. ecology 3. social structure 4. social-psychology 5. anthropology

2. ecology

the ________ class is more oriented toward conspicuous consumption. 1. upper-upper 2. lower-upper 3. working 4. middle

2. lower-upper

the first iPhone launched in 2007, came out with a $600 price tag. Two months later, Apple lowered the price to $400, in June 2009, the price fell again to $200 and the phone offered twice the storage. Nonetheless, there was a group of consumers camped out in front of Apple stores and other retailers in 2007 to get their hands on the first version. They can be identified as the _____ according to the diffusion. 1. laggards 2.early adopters 3. late majority 4. early majority 5. gatekeepers

2.early adopters

james ottis wants to be "just like Mike" and has for many years. James has purchase Jordan gear, follows Jodan's career, and he often thought about how to give back to his community the way MJ has. Which of the following would apply for James Otis and his relationship with Michael Jordan? 1. membership group 2. avoidance group 3. aspirational group 4. normative group 5. primary group

3. aspirational group

which of the following is an unpleasant psychological state? 1. density 2. arousal 3. crowding 4. none of the statements are correct

3. crowding

Sandra decided to become a doctor after several years as a lawyer. She still wanted to help people but in a different manner. Sandra's case is an example of which of the following? 1. downward mobility 2. upward mobility 3. horizontal mobility 4. social inequality 5. social anxiety

3. horizontal mobility

which functional area of culture is most closely related to the idea of a common worldview? 1. ecology 2. social structure 3. ideology 4. socio-psychology 5. anthropology

3. ideology

if the government asks people to evacuate because of a hurricane, people would comply because the government has ______ power. 1. referent 2. information 3. legitimate 4. reward

3. legitimate

the ______ class purchase are social acceptability; seek out the best buys. 1. upper - upper 2. lower - upper 3. middle 4. working 5. lower

3. middle

_____ refers to the passage of individuals from social class to another. 1. social class 2. social affinity 3. social mobility 4. social anxiety

3. social mobility

during shopping, the presence of other shoppers can influence you behavior in different aspects. which one of the following is NOT an influence of the presence of other shoppers on consumption behaviors? 1. you will be more likely to buy name brands 2. you will become more variety-seeking 3. you will have more contact with products 4. you will rush your decisions

3. you will have more contact with products

when we discuss subcultures, we are talking about culture at the ________ level. 1. supranational 2. national 3. continent 4. group 5. all of the options

4. group

which of the following statements explains Red Sneakers Effect? 1. we build part of our identity on the basis of our membership of the groups and enforce boundaries with other groups 2. when facing real or imagined group pressures, people tend to alter their beliefs or behaviors to follow the group norms 3. The people who is least committed to staying in the relationship has more power bc he/ she doesn't care as much. 4. intentionally standing out from the crowd can send a positive message conveying status, confidence, and power

4. intentionally standing out from the crowd can send a positive message conveying status, confidence, and power

when consumers are buying gifts for others, they make purchase decisions differently compared to when they are buying things for themselves. which type of situational factor is this about? 1. physical surroundings 2. atmospherics 3. social surroundings 4. temporal perspective 5. task definition

5. task definition

CONFORMITY

For a society to function, its members develop norms (informal rules) that govern behavior. A change in beliefs or actions as a reaction to real or imagined group pressure.

HCD 2. INDIVIDUALISM VS. COLLECTIVISM

Ind.: take care of yourself and small family Col.: take care of everyone in exchange for loyalty

HCD 6: Indulgence v Restraint

Indulgence: allow relatively free gratification of basic and natural human desires related to enjoying life and having fun. Ex. Mexico - happy, democracy Restraint: a conviction that such gratification needs to be curbed and regulated by strict social norms. Ex- Pakistan - cynical, disciplined

GLOCALIZATION

Marketing strategy may be global but the implementation is local. (mcdonald's around the world)

HCD 4. MASCULINITY VS. FEMININITY

Mas: emotional gender roles are clearly distinct, competitive, success, etc. Fem: emotional gender roles overlap, modest tender, etc., equal options

Social Stratification

The creation of artificial divisions among people in a society -Achieved status: earned through hard work -Ascribed status: obtained through luck or inheritance -Status hierarchy: some members are better off than others

HCD 1. Power distance:

The degree to which the less powerful members of a society accept and expect that power is distributed unequally. How a society handles inequalities among people.

social class

The overall rank of people in a society - socioeconomic status o Social class affects access to resources. o Stable across culture, sustainable, about present/future, predicting income (occupation/income best indicators of social class)

Social mobility

The passage of individuals from one social class to another. 1^^^^ -------------2------------- 3<down 1. upward mobility 2. horizontal mobility 3. downward mobility

Elaboration Likelihood Model (ELM)

a model of persuasion maintaining that there are two different routes to persuasion: -the central route (high involvement, more thinking and arguing) -the peripheral route (low involvement, don't think as much, don't care so packaging and sponsors influence us)

Situation Characteristics: 1. Physical Surroundings

décor, sounds, aromas, lighting, temperature, and configurations of merchandise or other materials in the physical retail environment. o Atmospherics: The conscious designing of space and its various dimensions to evoke specific psychological responses in consumers. basically the brand image/ personality it wants to communicate and create expectations

High-context vs low-context cultures

high: - High level of shared context, knowledge, and reference point. - People tend to infer meanings that go beyond the spoken word. (less on paper) low: - Low level of shared context, knowledge, and reference point. - Communication is more specific and detailed. (more on paper)

Brand Inertia vs. Brand Loyalty

inertia: don't really try, just buy bc it does the job loyalty: a conscious decision to repeatedly buy for emotional/ objective reasons

HCD 5: Long v Short term orientation

long: virtues for future rewards (self-discipline, learning, honest, accountable) ex. china short: virtues to past and present (freedom, rights, achievement) ex. US

Situational Characteristics

place, people, time, motivations

Cognitive decision making

purchases that are rational, thought out, problem solving, etc.

HCD 3: UNCERTAINTY AVOIDANCE

take a risk or stay safe depends on a culture ??

bandwagon effect

tendency for people to adopt certain behaviors, styles, or attitudes simply because others are doing so.