Consumer Behaviour Post Midterms (Ch10-15)

conformity

a change in beliefs or actions as a reaction to real or imagined group pressure conflicts with our motivation to be unique

value-expressive influence

a form of reference group influence; The individual feels that the purchase or use of a particular brand will enhance the image others have of him or her. The individual feels that those who purchase or use a particular brand possess the characteristics that he or she would like to have. The individual sometimes feels that it would be nice to be like the type of person that advertisements show using a particular brand. The individual feels that the people who purchase a particular brand are admired or respected by others. The individual feels that the purchase of a particular brand would help show others what he or she is or would like to be (such as an athlete, successful businessperson, good parent).

utilitarian influence

a form of reference group influence; The individual's decision to purchase a particular brand is influenced by the preferences of fellow work associates, in hopes that he or she satisfies their expectations. The individual's decision to purchase a particular brand is influenced by the preferences of people with whom he or she has social interaction. The individual's decision to purchase a particular brand is influenced by the preferences of family members. The desire to satisfy the expectations of others has an impact on the individual's brand choice

Microculture

a group of people who share similar values and tastes that are subsumed within a larger culture based on lifestyle or aesthetic preferences Share a strong identification with an activity or art form Have a unique set of norms, vocabulary, and product insignias e.g., Trekkies, MMA enthusiasts, racecar enthusiasts

subculture

a group whose members share beliefs and common experiences that set them apart from others. age, ethnicity, region, religion

connexity

a lifestyle term coined by the advertising agency Saatchi & Saatchi to describe young consumers who place high value on being both footloose (independent) and connected to their peers 24/7

deadline time

a psychological time occurs when we're working against the clock. THE WORST TIME to try to catch our attention.

occasion, time

a psychological time that includes special moments when something monumental occurs such as a birth or an important job interview. Ads that are clearly relevant to the situation will be given our undivided attention.

flow time

a psychological time when we are in a flow state; become so absorbed in an activity we notice nothing else NOT a good time to be hitting people with ads

leisure time

a psychological time; occurs during downtime. More likely to notice ads and perhaps try new things

time to kill

a psychological time; when we're waiting for something to happen such as catching a plane or sitting in a waiting room. This is bonus time, where we feel we have the luxury to focus on extraneous things. As a result, we're more receptive to commercial messages, even for products we don't normally use.

uncertainty avoidance

a society's tolerance for uncertainty and ambiguity. If higher, these cultures tend to dislike and avoid uncertain, novel, or unusual situations. Countries like Japan, Arab countries, and some Chile, Uruguay, Guatemala Countries low in this are more open to uncertain events and outcomes (Singapore, Vietnam, Malaysia)

risky shift

an explanation for why decisions made in groups differ from individual decisions: when you show greater willingness to consider riskier alternatives after a group discussion vs individual. Diffusion of responsibility occurs here Value of hypothesis (conforming to the riskiness) mixed evidence for this

meme theory

an idea or product that enters the consciousness of people over time, such as tunes, phrases; "you're fired!", or styles like ballet flats Memes that survive are distinctive and memorable

Anticonformity: Defiance of the group is the actual object of behaviour. goes out of your way NOT to buy smt that is expected. A paradox bc you must always know what it expected to NOT do it. Independence: pride in unique style. in contrast to anticonformity, independent people are oblivious to what is expected

anticonfirmity vs independence

- non-utilitarian: does not perform meaningful function - often adopted on impulse, ppl do not undergo stages of rational decision making before joining in - diffuses rapidly, gains quick acceptance, short-lived

characteristics of a fad

fad: fashion that lasts for a very short period of time. adopted by few people, trickles across members but rarely breaks out of that certain group. e.g. hula hoops, jelly bracelets, trucker hats, fidget spinner fashion: slow acceptance at the beginning then rapidly accelerates then tapers off. moderate acceptance cycle classic: fashion with extremely long acceptance cycle. stable, low risk to purchaser for a long period of time. e.g. keds

compare fad, fashion, classic

T

concept of teenage is a fairly new idea. T or F

time poverty

consumers' belief that they are more pressed for time than ever before more perception that fact; more options for spending their time and feel pressured by the weight of these choices

Masculinity/Femininity

degree to which gender roles are clearly delineated traditional societies are more likely to possess very explicit rules about acceptable behaviours of men and women high masculine countries value traits such as assertiveness, dominance, and competition, and segregate gender roles (Japan, S.Africa) feminine countries value modesty, caring, and compassion, shows less differentiation between gender roles (Netherlands, Norway, Sweden)

collecting: systematic acquisition of a particular object(s). involves both rational and emotional components hoarding: unsystematic collecting

difference bt collecting and hoarding

lower class group try to imitate the fashion of higher class groups to climb up the ladder of social mobility. Those in higher class looks below them to make sure they're not being imitated, and they respond to these attempts of impersonation by adopting newer fashion. This creates a self-perpetuating cycle of change that drives fashion different than trickle-across, where fashion diffuse horizontally among members of the same social group.

explain the trickle-down theory in understanding fashion explain trickle-across effect of fashion

power distance uncertainty avoidance masculinity/femininity individualism/collectivism long-term orientation indulgent vs restraint

measuring cross-cultural values within these 6 dimensions: ** NEED TO KNOW PROBABLY ExAM QUESTION **

definition: someone who influence others' attitudes and behaviours Generalize opinion leader: somebody whose recommendations are sought for all types of purchases. Very few people are capable of being expert in a number of fields. Opinion leaders are either:(a) Monomorphic: experts in a limited field (b) Polymorphic experts: tend to concentrate on one broad domain such as electronics or fashion

notes on opinion leaders

social mobility

passage of individuals from one social class to another

income inequality

resources are distributed unevenly within a population

high-context culture Many minority cultures are high-context and have strong oral traditions

subculture where group members tend to be tightly knit, they infer meanings that go beyond the spoken word. Symbols & gestures rather than words carry much of the weight of the message.

low-context culture White Canadians of Western European descent tend to be more low-context.

subculture where it's more literal.

long-term orientation

tends to foster an orientation toward future rewards, such as perseverance and thrift. German, S.Korea, Japan. short-term orientation values virtues related to the past and present, including respect for tradition, preservation of "face", and fulfilling social obligations. African countries like Egypt, Ghana, Morocco and Nigeria.

brand prominence

the display of blatant status symbols to ensure that others recognize one's luxury brands "quiet" signals vs "loud" signals in luxury goods

indulgent vs restraint

the extent to which a society allows relatively free gratification of natural human drives related to enjoying life and having fun. culture high on restraint suppresses gratification of needs and regulates it by means of strict social norms (Middle Eastern countries)

power distance

the extent to which less powerful members within a country expect and accept that power is distributed unequally if higher, these countries tend to have a greater degree of inequality in society and organizations, while if lower, countries tend to have more equality. Japan are higher in this while Canada stresses greater degree of equality and informality (which means lower in _______ ________)

Individualism/Collectivism

the extent to which the welfare of the individual versus that of the group is valued. collectivist culture - ppl subordinate their personal goals to those of a stable in-group. Value self-discipline and accepting one's position in life. E.g Venezuela, Pakistan, Taiwan, Thailand, Indonesia, Portugal individualist culture - attach more importance to personal goals and more likely to change memberships when demands of the group become too costly (church, workplace, etc). Emphasize personal enjoyment, excitement equality, and freedom. E.g. Canada, US, Australia, England, Netherlands.

queuing theory

the mathematical study of waiting lines Waiting for product = good quality Too much waiting = negative feelings

discretionary income

the money available to a household over and above what it requires to have a comfortable standard of living

fashion

the process of social diffusion by which a new style is adopted by some group(s) of consumers a fashion is a style in fashion means in trend (positively viewed)

comparative influence

the process whereby a reference group influences decisions about specific brands or activities e.g. weight watchers group large, formal groups tend to be more product or activity-specific and thus are high in ________ influence

social comparison theory

theory that consumers will often compare themselves to others in ways that increase the stability of one's self-evaluation• ie. choosing the right music to play at a party (you choose the "right choice" which is usually pop or hip hop for millennials) We tend to choose co-oriented peer (person of equivalent standing) when performing this e.g. asking for relationship advice from someone in a relationship (which is similar to you) vs a single friend.

social stratification

those processes in a social system by which scarce and valuable resources are distributed UNEQUALLY to status positions that become more or less permanently ranked in terms of the share of valuable resources each receives

information, utilitarian, value-expressive

three ways a reference group can influence consumers

Red Sneakers Effect

to describe a brave person who sports a pair of red kicks in a professional setting we assume someone who makes unconventional choices is more powerful or competent

expert power

type of social power; derived from possessing a specific knowledge or skill. we are more influenced by experts

coercive power

type of social power; does not produce permanent attitudinal or behavioural change. Use of fear appeals, intimidation, or campaigns that emphasize negative consequences that might occur if you don't use a product.

legitimate power

type of social power; people are granted power by virtue or social agreements, such as police officers and politicians. Use of uniforms/white lab coats (doctors, researchers)

referent power

type of social power; person will try to imitate qualities that they admire in an individual or group by copying the referent's behaviours (e.g. choice of clothing, cars, leisure activities) as a guide to forming consumption preferences

reward power

type of social power; when a person or group has the means to provide positive reinforcement e.g. when employee is given a raise, or social acceptance

information power

type of social power; you obtain this type of power bc you know something others would like to know e.g. popular fashion bloggers who are seen as high in expertise often possess power because of their ability to compile and disseminate information that can make or break indiv designers or companies

Gen X. have created culture changing companies and products including Google, YouTube, and Amazon

which generation is the overlooked generation?

1. innovators; first to try new offerings 2. early adopters. 1 and 2 are quick to adopt new products, but differs in their degree of concern for social acceptance 3.early majority; adopt an innovation after it has caught on with early adopters, before half of the population does 4. late majority; adopt innovation in latter half of population, more skeptical 5. laggards

5 types of adopters

brand community

A group of consumers who share a set of social relationships based upon usage or interest in a product can form when consumers come together for a particular activity around a brand or when they participate online about a brand can enhance brand loyalty

social power

Capacity to alter the actions of others

1. Metaphysical: Help explain origins of existence 2. Cosmological: Emphasize that all components of the universe are part of a single picture 3. Sociological: Maintain social order by authorizing a social code to be followed by members of a culture 4. Psychological: Provide models for personal conduct

Myths serve four interrelated functions in a culture:

fashion system

People and organizations involved in creating/transferring symbolic meanings to cultural goods NOT clothing. this process affect all types of cultural phenomena, including music, art, architecture, science a code, or language, to help decipher meanings. context-dependent

Compatibility: Innovation should be compatible with consumers' lifestyles Trialability: People are more likely to adopt an innovation if they can experiment with it prior to purchase to reduce risk. Free trial sizes are good Complexity: Should be low complexity. A product that is easy to understand will be chosen over competitors Observability: Innovations that are easily observable are more likely to spread. e.g iPods got popular bc it was easy to observe other people using it and the benefits Relative Advantage: Product should offer relative advantage over other alternatives

Prerequisites for Successful Adoption

-Luxuries over necessities -Socially conspicuous products/visible to others

Reference groups are most robust for these two types of purchases:

Deindividuation

individual identities get submerged within a group when an individual seems to lose himself or herself in the group's identity

snob effect

lower prices reduce demand if it's cheap it can't be good

market maven

person who has information about a variety of products and likes to share this info with others, but does not feel like they are an expert on one particular product Actively involved in transmitting marketplace information of all types Just into shopping and aware what's happening in the marketplace Overall knowledge of how and where to get products

conspicuous consumption

prominent, visible evidence of their ability to afford luxury goods. buying expensive services and products in order to flaunt your wealth

1. landscape themes: rely on associations w images of nature, earth, animals, and the physical body. (Bass Pro Shop creates simulated outdoor environment, including pools stocked w fish) 2. Marketscape themes: associations w human-made places. Venetian hotel in Las Vegas that lavishly recreates parts of the Italian City. 3. Cyberspace themes: images of information and communications technology. eBay's retail interface instills a sense of community among its vendors and traders.

3 strategies to retail theming (retail stores going all out to creative imaginative environments that transport shoppers to fantasy worlds or provide other kinds of stimulation)

1. custom: norm handed down from the past that controls basic behaviours, such as division of labour in a household or practice of particular ceremonies, or even what time to eat dinner 2. more: a custom with a strong moral overtone, often involves a taboo/forbidden behaviour such as incest or cannibalism. In Korea it's acceptable to eat dog meat 3. conventions" norms regarding the conduct of everyday life. Deal w subtleties of consumer behaviour, including the "correct" way to furnish one's house, wear one's clothes, host a dinner party, table etiquette, utensils to use, etc.

3 types of crescive norms (norms that are embedded in a culture and can only be discovered through interaction with other members of that culture):

1. continuous innovation; evolutionary rather than revolutionary, minor changes to habits. Honey Nut addition to Cheerios, or Levi's shrink-to-fit jeans. Line extensions. 2. Dynamically continuous innovation; More pronounced change to existing product. such as self-parking cars and "tap" feature of credit card, electric cars 3. Discontinuous innovation; Creates major changes in the way we live e.g airplanes, cars, computers, tv.

3 types of innovations

1. Autonomy vs. Belonging: need for independence, try to break away from their families. However, need to attach themselves to a support structure, such as peers, to avoid being alone. 2. Rebellion vs conformity: teens need to rebel against social standards of appearance or behavour, yet they still need to fit in and be accepted by others. They like "in your face" products that cultivate a rebellious image. 3. Idealism vs pragmatism: teens tend to view adults as hypocrites, whereas they see themselves as being sincere. Struggle to reconcile their view of how the world should be w the realities around them 4. Narcissim vs intimacy: obsessed about appearance and needs, but also desire to connect w others on a meaningful level.

4 basic conflicts common to all teens: ****MAY BE EXAM QUESTION??****

1. social dimension; indiv's categorization of time as either "time for me" or time with/for others" 2. temporal orientation dimension; relative significance indivs attach to part, present, or future 3. planning orientation dimension; different time-management styles carying on a continuum from analytic to spontaneous 4. polychronic orientation dimension; distinguishes bt ppl who prefer to do one thing at a time from multitaskers

4 dimensions of time

1. initiator: person who brings up the idea or identifies a need 2. Gatekeeper - searches and controls information 3. Influencer - uses power to sway the decision 4. Buyer - the purchaser (not necessarily the user) 5. User - the consumer/user of the product

5 roles within a group:

1. economic consumer; rational, goal-oriented shopper who is primarily interested in maximizing the value of his or her money 2. personalized consumer; shopper who tends of form strong attachments to store personnel ("I shop where they know my name") 3. ethical consumer; shopper who likes to help out the underdog and will support locally owned stores against big chains 4. apathetic consumer; shopper who does not like to shop and sees it as a necessary but unpleasant chore 5. recreational shopper; shopper who views shopping as a fun social activity (a preferred way to spend leisure time)

5 shopping types (of consumers)

Achieved Status: Earned through hard work (Bill gates, Mark Cuban) Ascribed Status: Born with a silver spoon (kim k, paris hilton)

Achieved Versus Ascribed Status

atmospherics

Conscious designing of space and dimensions to evoke certain effects in buyers Colours/lighting, scents, and sounds/music affect time spent in store as well as spending habits- Examples: Bright flat lighting = more clothing sales Loud fast music = eat more Slow melancholic music = drink more

density: the actual # of ppl occupying a space while the psychological state of crowding exists only if a negative affective state occurs as a result of density. E.G: 100 students in a 75-student limit classroom is unpleasant, but if the same happened at a party it would make a great party. perceptions of crowding in a retail context cause more variety seeking among consumers. Those in narrower aisles seek out a greater variety of products than do those in wider aisles.

Density vs. Crowding and the effects

Interbellum Generation: ppl born beginning of 20th century Silent Generation: born bt the two World Wars War Baby Generation: born during WWII Baby boomers: 1946-1964 Gen X: 1965-1985 Gen Y (millennials): 1986-2002 Gen Z: 2003 and later

Different Generations

consumer contamination

If another consumer touches a product in the retail context, and it leads to consumers negatively evaluating a product, is called _______. However, this does not occur when the other consumer is attractive.

Affluenza

Many well-off consumers seem to be stressed or unhappy despite/because of their wealth, a condition called _______ An extreme form of materialism resulting from the excessive desire for material good

Aspirational reference groups: comprise of idealized figures, such as successful business people, athletes, or performers. Membership reference groups involve other consumers who belong to the same groups as us (circle of friends, family, classmates, teammates). Create sense of similarity and connectedness People the consumer actually knows vs. people the consumer doesn't know but admires Aspirational strategies concentrate on highly visible, widely admired figures (athletes or performers), whereas membership strategies focus on "ordinary" people whose consumption provides informational social influence

Membership vs Aspirational Reference Groups

creolization

Occurs when foreign influences integrate with local meanings.

advergaming

Online games are merging with interactive ads that let companies selectively target consumers placing advertising messages in Web-based or video games to advertise or promote a product, service, organization, or issue Advertisers can get viewers' attention for a much longer time in video games

Marketers tend to ignore: Status inconsistency Intergenerational mobility Subjective social class Consumers' aspirations to change class standing Social status of working wives

Problems with Social Class Segmentation

values What sets cultures apart is which values are seen as being relatively more important.-Identify the core values for each culture eg. Amercians value self-reliance, self-improvement, and achievement of personal goals eg. Koreans value family integrity, collective goals, and feeling of harmony with others A marketing message that is appealing in one culture, may not be as appealing in another culture.

Refer to shared beliefs shaped by individual, social, and cultural forces. differs across cultures Many ______ are universal: family, health, happiness, and wisdom.

social media

Refers to forms of electronic communication (e.g., social networking platforms and microblogging) through which users create online communities to share information, ideas, personal messages, and other content. ONLINE COMMUNITY: the collective participation of members who together build and maintain a site

rituals

Sets of multiple, symbolic behaviours that occur in a fixed sequence and that tend to be repeated periodically Many consumer activities are ritualistic: -Trips to Starbucks -"Pulling" the perfect pint of Guinness College campus rituals -Tailgating at football games Wedding ceremony

myth

Story containing symbolic elements that represent the shared emotions/ideals of a culture usually features conflict bt 2 opposing forces, serves as a moral guide

T

T or F: negative WOM is weighted more heavily by consumers than are positive comments

Economy; many are stuck in economic purgatory (overeducated but underemployed) Globalization; experience other cultures Social media

Three major forces that shape Gen Yers' experiences:

economic time

Time style: Consumers try to maximize satisfaction by dividing time among tasks

Purchases to be consumed privately or publicly Whether a luxury or a necessity

Two dimensions of influence

Unplanned buying: Reminded to buy something. May occur when a person unfamiliar w a store's layout is under time pressure, or when they see the item on a shelf. Recognition of new needs while within the store Impulse buying: Sudden, irresistible urge to buy

Unplanned vs. impulse buying

1. Brand aspirationals: ppl w low incomes but obsessed with names like KitchenAid. 2. Value-price shoppers: who like low prices and cannot afford much more. 3. Price-sensitive affluents: wealthier shoppers who love deals.

Walmart study identified three distinct groups of consumers:

invidious distinction

We buy things to inspire envy in others through a display of wealth/ power the use of status symbols to inspire envy in others through display of wealth or power

1. ecology: the way in which a system is adapted to its habitat. Shaped by technology (industrialized societies vs developing countries). Japanese value products designed for efficient use of space bc of cramped conditions in Japan. 2. Social structure; the way orderly social life is maintained. Includes domestic and political groups dominant within the culture (nuclear family vs extended family) 3. ideology; mental characteristics of a people and the way they relate to their environment and social groups. Belief that members of society possess a common world view; share certain ideas about principles of order and fairness. Also share ethos (a set of moral and aesthetic principles)

a cultural system consists of three functional areas:

information group influence

a form of reference group influence; The individual seeks information about various brands from an association of professionals or an independent group of experts. The individual seeks information from those who work with the product in a profession. The individual seeks brand-related knowledge and experience (such as how brand A's performance compares with brand B's) from those friends, neighbours, relatives, or work associates who have reliable information about the brands. The brand the individual selects is influenced by observing a seal of approval from an independent testing agency (such as Good Housekeeping). The individual's observation of what experts do (e.g., observing the type of vehicle race-car drivers drive or the brand of washer/dryer repairpersons buy) influences his or her choice of a brand.

introduction 1. innovation acceptance 2. rise 3. acceleration 4. general acceptance 5. decline regression 6. obsolescence

fashion acceptance cycle (3 levels, 6 stages)

dissociative reference groups

groups (or group members) the consumer wants to avoid association with ie. avoid dressing like nerds, druggies, preppies. motivation to distance ourselves from a negative reference group can be as or more powerful than desire to please a positive group

Fits with basic lifestyle changes A real benefit should be evident Can be personalized Not a side effect or a carryover effect (increased interest in exercise is a trend towards health-consciousness, whereas a type of exercise that is in currently is a side effect) Important market segments need to adopt the change

guidelines for long-term trends

two-step flow model of influence

proposes that a small group of influencers disseminate information since they can modify the opinions of a large number of other people

consumer identity renaissance

redefinition process people undergo when they retire - how do they respond - revived (revitalization of previous identities) or emergent (pursuit of entirely new life projects)?

culture

society's personality includes values and ethics, and material objects. accumulation of shared meanings, rituals, norms, and traditions among members of an org or society the lens through which we view products determines product priorities and mandates a product's success/failure

HAVES 1. patrician:signal to each other using quiet signals, low need in status 2. parvenu: associate w other haves and want to dissociate themselves from have-nots. use loud signals. high need in status HAVE NOTS 3. Proletarian: do not engage in signalling, low need in status 4. Poseur: aspire to be "haves", mimics the parvenu. high need in status

status signal preferences: 4 types.

decision polarization

the process whereby individuals' choices tend to become more extreme (polarized), in either a conservative or risky direction, following group discussion of alternatives after group discussion of an issue, opinions become more extreme

normative influence

the reference group helps to set and enforce fundamental standards of conduct small, informal group exert more powerful influence on consumers as they tend to be more involved in our day-to-day lives and to be more important to us. As a result, small informal group are high in this type of influence e.g. parents play a pivotal role in forming our values related to important issues such as attitudes about marriage or where to go to university.

reference group

** start of ch 11** an actual or imaginary individual or group conceived of as having significant relevance upon an individual's evaluations, aspirations, or behaviour any external influence that provides social cues

Consumer demand = willingness to buy + ability to buy

** start of ch12** equation of consumer demand

cultivation hypothesis

**start of ch15** Media's ability to distort consumers' perceptions of reality Heavy viewers of TV come to believe that the real world is much like the TV world

Luxury is functional: Consumers buy things that will last and have enduring value. Conduct research before buying and make logical decisions rather than emotional or impulsive choices. Luxury is reward: Younger than first group but older than the third group. Use luxury goods to say "I've made it!". Desire to be successful and to demonstrate their success to others motivates these consumers to purchase conspicuous luxury items. Luxury is indulgence: Smallest group. More males. Extremely lavish and self-indulgent. Willing to pay a premium for goods that express its individuality. More emotional approach to luxury spending and more likely to make impulse purchases

3 groups of consumers on the basis of their attitudes toward luxury:

1. gestation; giver is motivated by an event to procure a gift. Could be structural (Christmas) or emergent (more personal) 2. presentation; process of gift exchange 3. reformulation; the bonds bt giver and receiver are adjusted to reflect the new relationship after exchange is complete

3 stages of gift-giving

separation (detaching from original status/group) liminality (between stages) aggregation (reenters society after rite of passage is complete)

3 stages of rites of passage

Referent power Legitimate power Reward power Information power Expert power Coercive power

6 types of social powers

antifestival

Halloween is a holiday that is known as a....