Consumer Behavior Buying, Having, and Being 10th edition

80/20 rule

20% of users account for 80% of sales

Consumer

A person who identifies a need or desire, makes a purchase, and then disposes of the product during the three stages of the consumption process.

Exchange

A transaction in with 2 or more people or organizations give and receive something of value

Psychographics

Aspects of a persons lifestyle and personality

Demographics

Descriptive characteristics of a population

nostalgic attachment

Product serves as a link with a past self

Consumption Communities

Web groups where members can share their opinions and recommendations

horizontal revolution

a fundamental change in how consumers communicate via social media. doesnt just flow from big companies and govts, flows across people as well

Alternate reality games

a online application that encourages players to collaborate and solve puzzles

kinsei engineering

a philosophy that translates customers feelings into design elements

culture jamming

a strategy to disrupt efforts by the corporate world to dominate our cultural landscape

differential threshold

ability to detect changes or differences between 2 stimuli

instrumental values

actions we need to take to achieve our terminal values

elaborative rehearsal

allows info to move from STM to LTM

digital native

always grew up "wired" (around technology)

stimulus generalization

assume everything that is similar to the CS is the same

interpretivism

believe science is overdone. believe that meaning is in the mind of the person

need

biological motive

drive theory

biological needs that produce unpleasant states of arousal

B2C Commerce

business selling to consumers

trade dress

color combos that become strongly associated with a company

etic perspective

commonalities across cultures

relationship marketing

companies that interact with customers on a regular basis and get them reasons to maintain a bond

popular culture

consists of forms of entertainment that the mass market produces and consumes (music, movies, sports, etc)

phonemes

constant sounds

goal

consumers desired end state

C2C Commerce

consumers selling to consumers

consumer-space

consumers tell the products what they want, how they want it, and when they want it

principle of similarity

consumers tend to group together objects that share similar physical characteristics

halo effect

copying another brand

conditioned stimulus

doesnt initially cause a response

asynchronous interactions

doesnt require all participants to respond immediately (email)

state dependent retrieval

easier for us to access info if our internal state is the same as the time of recall as it was when we learned the information

economics of information

economics is an important source of consumer information

love

elicits emotional bonds of warmth, passion, or other strong emotion

positivism

emphasizes that there is a single, objective truth that science can discover

episodic memories

events that are personally relevant

expectancy theory

expectation to receive positive incentives rather than being pushed from within motive our behavior

reverse product placement

fictional products in shows become popular in the real world

object

focus of the message (marlboro cigs)

Gestalt

german word that means whole, pattern, or configuration

advertising wear-out

hearing or seeing too much of of that they no longer pay attention

self concept attachment

helps establish a users identity

want

how society taught us to satisfy our need

modeling

imitating the behavior of others

sensation

immediate response of our sensory receptors

hedonic adaptation

in order for us to stay happy, we become used to changes

shaping

learning a desired behavior over a period of time rewards our intermediate actions

incidental learning

learning by accident

decay

learning in the brain go away

inertia

low end involvement with a company

hypperreality

making real what is initially a "hype"

augmented reality

media that combines physical and digital layer (3D movie with glasses)

absolute threshold

minimum amount of stimulation a person can detect on a given sensory threshold

pastiche

mixture of images

heavy users

most faithful customers

hedonic consumption

multi sensory, fantasy, and emotion aspects of consumers interactions with products

unconditioned stimulus

naturally capable of causing the response

variable ration reinforcement

never know how much you are going to get

synchronous interactions

occurs in real time (like texting back and forth with a friend)

voluntary simplifiers

once we satisfy our basic material needs, additional income does not add to happiness

figure-ground principle

one part of the stimulus will dominate, and other parts will recede in the background

social media

online means of communication

perceptual defense

opposite of perceptual vigilance. people see what they want to see, and they dont see what they dont want to see.

interdependence

part of the users daily routine

perceptual filters

past experiences that influence what stimuli we decide to process now

perceptual selection

people attend to only a small portion of the stimuli to which they are exposed

closure principle

people tend to perceive an incomplete picture as complete

learning

permanent change in behavior caused by experience

multitasking

processing info from more than one medium at a time

transformative consumer research

promotes research projects that include the goal of helping people or bringing about social change

green marketing

protecting natural environment

web 2.0

rebirth of the internet as a social, interactive medium

repitition

repeated exposures

transactional advertising

rewards players if they respond to a request

frequency marketing

rewards regular purchasers with prizes that get better as they spend more

business ethics

rules of conduct in a marketplace

sign

sensory image that represents the object (cowboy)

schema

set of beliefs

index

sign that connects to a product because they share a property (pine tree=fresh scent)

symbol

sign that connects to a product by either conventional or agreed-on association (lion=fearless)

icon

sign that represents the product in some way (horse=fast car)

contrast

stimuli that differ from others around them (size, color, position, novelty)

short term memory

stores info for a limited period of time with limited capacity

long term memory

stores info for a long time

sensory memory

stores info we receive from our senses

brand equity

strong positive associations of the brand in a consumers memory

Market Segmentation Strategies

targeting a brand only to a specific group of consumers rather than to everyone

role theory

thats the view that consumer behavior resembles the actions in a play. because people act out many different roles, they sometimes change their mind about their consumption decision

culture of participation

the ability to freely interact with other people, companies, and organizations

weber's law

the amount of change required for us to notice a change systematically relates to the intensity of the original stimulus

adaptation

the degree to which consumers continue to notice a stimulus over time

semiotics

the field that studied the correspondence between signs and symbols

materialism

the importance people attach to worldly possessions

interpretant

the meaning we derive from the sign (rugged american)

interpretation

the meanings we assign to sensory stimuli

j.n.d. (just noticeable difference)

the minimum difference we can detect between 2 stimuli

perception

the process by which people select, organize, and interpret their sensations

memory

the process of acquiring info and storing it over time so that it is available when we need it

chunking

the process of combining small pieces into larger ones (in memory)

motivation

the process that leads people to behave the way they do

social marketing

the promotion of causes and ideas

conditioned response

the response o the CS

experience

the result of acquiring and processing stimulation over time

psychophysics

the science that focuses on how the physical environment is integrated into our personal world

paradigm

the set of beliefs that guide our understanding of the world

Consumer Behavior

the study of the process involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires

perceptual vigilance

the tendency for individuals to be more aware of stimuli that relate to their current needs

spacing effect

the tendency for us to recall printed material more easily when we see it often

drive

the urgency the consumer feel to reduce his goal

sound symbolism

the way a word sounds, influences our assumption about what it describes and its attributes.

embeds

tiny figures they insert into magazine ads via high speed photography or airbrushing

haptic (touch)

touch related sensations

database marketing

tracking specific consumers buying habits and crafting products and messages precisely to their wants

core values

uniquely define a culture

global consumer culture

unites people around the world by their common devotion to a brand

retro brand

updated version of an older brand

positioning strategy

uses elements of marketing mix to figure out where consumer is in marketplace

rich media

using movement to get viewers attention

emic perspective

variations across cultures

cognitive learning theory

views people as problem solvers

behavioral learning theories

we learn because of external events

flow state

when a consumer is fully involved in a product, ad, or website

exposure

when a stimulus comes within range of someones sensory receptors

classical conditioning

when a stimulus that elicits a response is paired with another stimulus that doesnt initially elicit a response on its own. over time we will respond to the second stimulus because it reminds us of the first one.

priming

when certain factors of a stimulus evoke a schema

consumer confusion

when companies logos, product design, or package is so similar that consumers get confused between the two

sensory overload

when exposed to far more info than one can process

extinction

when the effects of prior conditioning diminish

instrumental conditioning

when we earn to perform behaviors that product positive outcomes and avoid behaviors that lead to negative outcomes

interference

when we learn new info, it replaces the old info

observational learning

when we watch the actions of others and note the reinforcements they receive for their behavior

attention

when you process activity with a particular stimulus

sensory marketing

where companies pay extra attention to the impact of sensations on our product experiences

narrative transportation

where people become immersed in the storyline

user-generated content

where people voice their opinions about products, brands, and companies on different forms of social media

audio watermarking

where people weave distinctive sounds/motif into music

variable interval reinforcement

you dont know when youre getting the reward

fixed interval reinforcement

you know when you are getting the reward

fixed ratio reinforcement

you only get reward after a fixed number of responses