Consumer Behavior Exam 1

Utilitarian Need

An everyday need

Enculturation

Learning the beliefs and values of one's own culture

Acculturation

Learning the value system and behaviors of another culture

Social Marketing

Making social change - change behaviors

Heuristics

Mental availability that sticks to our mind

Reference Group

One or more people that we use as a benchmark (basis for comparison)

Terminal Values

Preferred end states of being ex: Beauty

Motivation

Produced by state of tension

True or False: Claire remembers that uniquely wonderful taste that can only come from a frosty mug of root beer. As she heads to the soft drink aisle in her grocery store, she decides that today is the day to experience root beer again. Claire has just conducted what is called an internal search for information.

True

True or False: Consumer Behavior impacts directly on major public policy issues that confront our society.

True

How can a marketer boost a person's motivation to process relevant information?

A. Using novel stimuli

Instrumental Values

preferred methods of behavior

The Three Stages of the Consumption Process in order, are ______

A. identify a need, make a purchase, dispose of product

Consumer Heuristics

"Rules of Thumb" - Types (important in problem solving): search, evaluation, choice.

Levels of Maslow's Hierarchy of Needs

(BASED ON WESTERN MOTIVATIONS) 1) Self Actualization: self fulfillment, enriching experiences 2) Ego Needs: prestige, status, accomplishment 3) Belongingness: love, friendship, acceptance by others 4) Safety: security, shelter, protection 5) Physiological: water, sleep, food . According to Maslow, Motivation comes from each of those needs & each must be met before going to next . LL needs -> UL needs

Consumption Process:

(Consumer and Marketer Perspective) Pre-purchase issues : Why Purchase issues: What/How Post Purchase issues: Outcome

Novel Stimuli

(those that are new, different, or unusual) often attract our attention

Types of Motivational Needs

1) Achievement (effort over luck): must win at any cost 2) Affiliation (focus on relationships): loyalty and harmony; no disagreement 3) Power (passion for influence. tech. and coach): desires control of everyone and everything

3 Types of Decision Making Processes

1) Cognitive - deliberate, rational, sequential 2) Habitual - behavioral, unconscious, automatic 3) Affective- emotional, instantaneous

Levels of Intrinsic Self Relevance: 4 Market Segments

1. Brand loyalists: always buy a product (least involved) 2. Routine Brand Buyers 3. Information Seekers > continually searching (highly involved). 4. Brand Switchers > continually searching (highly involved)

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in what type of decision-making?

A. Cognitive Decision-Making

_______ needs, the lowest order needs in Maslow's Hierarchy, can also be described as _____ needs.

A. Physiological; biogenic

Jeff had collected a nice wardrobe before graduating from college. All of his friends considered him "well dressed." After the first day at his new job, however, Jeff immediately went out and replaced most of his clothes with what was considered to be professional dress clothing. Jeff had just experienced the power of a new ________. A) reference group B) information cascade C) avoidance group D) brand community

A. Reference Group

Need for Uniqueness

Assert one's individual identity Enjoy products that focus on their unique character (perfumes, clothing)

Core Values

values shared within a culture

When considering a purchase, brand-loyal consumer will have a much smaller ________

B. Evoked set - list of brands other than their own liked ones

Although not officially part of the consumer behavior process, which people may recommend certain products instead of actually buying or using them?

Influencers

Features actually used to differentiate among choices are called ________ attributes.

C. Determinant

____ is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision.

C. Information search

A(n) ______ is an actual or imaginary individual or group conceived of having significant relevance upon an individual's evaluations, aspirations, or behavior

C. Reference group

A ______ is the manifestation of an emotional desire that is often shaped by culture.

C. Want

Need for Power

Control one's environment Focus on products that allow them to have mastery over surroundings (muscle cars, loud boom-boxes)

Manufactured Demand

Created by marketers - make you think you need to spend money on something you don't actually need ex: tap water vs. bottle water

Which of the following is NOT part of the consumer behavior process?

D. Identifying the demographic characteristics of the consumer

Cause Marketing

Doing well by doing good ex: Toms shoes - when buy shoes, give shoes to those in need.

Mass Customization

Enhances product involvement ex: NikeiD

True or False: According to Anne Angeles, Businesses amplify their "WHAT" to inspire consumer engagement.

False

True or False: Drive Theory is the theory used to explain how behavior is pulled by expectations of achieving desirable outcomes.

False

True or False: The fact that people often buy products not for what the products fo but for what they mean implies that a products basic function is unimportant?

False

Types of Reference Groups:

Formal/ informal: ( clearly specified structure) Primary/ Secondary: (direct, face-to-face interactions) Membership: People become formal members of membership ref. groups Aspirational: aspire to join aspirational ref. group Dissociative: people seek to avoid or reject dissociative ref. groups

Laddering Technique

Hoping to uncover motivation/values & uncover customer wants - Interview: semi structured

Levels of Involvement

Inertia to Flow State Inertia: consumption at low end of involvement (decisions made out of habit) Flow State: occurs when consumers are truly involved ( sense of control, concentration, mental enjoyment, distorted sense of time) (fully involved in decision)

Level of Involvement in Consumer Decisions

Routine Response Behavior: low cost, frequent purchasing. Limited Problem Solving: more affect involved Extensive Problem Solving: more expensive products, infrequent purchasing, very involved purchase

Print Ad

Technique for increasing involvement ex: Billboards

True or False: Hirosi ordered the expensive "heart attack special" at the local pub. It came with a one-pound hamburger and a full bucket of fries. Halfway through the meal, Hirosi was not feeling well. Yet according to the sunk-cost fallacy, Hirosi will likely continue until he has finished the "special."

True

Need for Achievement

Value personal accomplishment Place a premium on products that signify success (luxury brands, technology products)

Simon Sinek's Golden Circle

WHY, HOW, WHAT - inside - out method * Amplify their "WHY"

Sticky Service

Want a customer to stay and keep coming back ex: Target, Walmart, Home Depot

Need for Affiliation

Want to be with other people Focus on products that are used in groups (alcoholic beverages, sports bars)

Means End Chain Model

brand -> attributes -> functional consequences -> psychological consequences -> values

Green Marketing

decrease environmental changes

Group Influence

ex: Onion: people are less likely to buy an onion because they are smelly and people care about what others think

Hedonic Need

experiential need, involving emotional responses or fantasies

Brand community

group of consumers who develop relationships based on shared interests or product usage ex: Harley Davidson, Peleton

Decision Making Process

problem recognition, information search, evaluation of alternatives, product choice, outcomes Problem Recognition: difference between current state and ideal state Information Search: process which we survey the environment for appropriate data to make a reasonable decision. - (internal & external search) - internal: already known info -external: search for info (2 types: prepurchase & ongoing)

Prospect Theory.

risk differs when we face gains versus losses

Business Ethics

rules of conduct that guide actions in the marketplace

Consumer Behavior

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

Group

two or more people who interact with each other to accomplish a goal