MGM 404 Exam 2

Culture

"Invisible hand" that guides the actions of those within a particular society

Characteristics of an Independent Self-Construal (Individualism)

- Being able to take care of myself is a primary concern for me. - I enjoy being unique and different from others in many respects. - My personal identity independent of others is very important to me

Characteristics of an Interdependent Self-Construal (Collectivism)

- It is important for me to maintain harmony within my group. - I will sacrifice my self-interest for the benefit of the group I am in

How does social class affect well-being?

- Mental problems are associated with lower classes due to stress levels. - Divorces are more likely to occur in lower-class families. - People in lower classes are more likely to eat fats/high-calorie food

Objective measures of social class:

- Occupation - Education - Income

How does social class shape consumer behavior?

- Powerlessness and luxury consumption - Lack of resources and needs for affiliation

Dependent Variable

- The outcome - Responds to the independent variable - What you measure in the experiment and what is affected during the experiment

Why use third person projective techniques?

- To elicit deep-seated feelings and opinions held by respondents, that might be perceived as reflecting negatively upon the individual - For sensitive subjects (in other words, when people hide or deny their real thoughts, feelings, or beliefs)

Controlled Variable

- Variable that should not be changed and is kept the same - Allows for a "fair test" - Any given experiment will have multiple of these

Examples of probing questions

- What do you mean by...? - Tell me more about... - Give me an example of...

Reasons to Pursue Global Markets

1. Economies of Scale 2. Overseas markets offer future growth when home markets mature 3. Consumers around the globe eager to try "foreign" products

What are the 3 main types of variables?

1. Independent Variable 2. Dependent Variable 3. Controlled Variable

3 Aspects of Core Values

1. Pervasive 2. Enduring 3. Related to Consumption Behavior

Hofstede's Cultural Dimensions

1. Power distance 2. Individualism/Collectivism [Self-Construal] 3. Masculinity/Femininity 4. Uncertainty avoidance 5. Time Perspective 6. Indulgence/Restraint

Types of extreme consumers:

1. Product Category Virgins 2. Customers with Constraints 3. Haters and Opt-Outers 4. The Fringe

How can you enhance validity in qualitative research?

1. Triangulation 2. Highlight negative cases 3. Member checking 4. Thick, rich description 5. Clarify bias

Snowball Subject Recruitment

A participant recruits people he or she knows to be in the study, those new participants then recruit people they know to be in the study, and so on

Subculture

A segment of a larger culture whose members share distinguishing values and patterns of behavior

Branded ritual

A specific ritual associated with a specific brand or product Ex: Putting lime wedge in Corona; Oreos - twist, lick, dunk; popping cork off wine bottle

Discussion Guide

A step-by-step outline that sets out the line of questioning that the researcher needs to cover with the respondent[s] in a depth interview or a focus group

Ritual

A type of symbolic activity consisting of a series of steps (multiple behaviors) occurring in a fixed sequence and repeated periodically Ex: birthday parties, weddings

Hedonic Value

Aesthetic, experiential, or sensory benefits derived from a product

Cross-Cultural Analysis

Analysis that determines the extent to which the consumers of two or more nations are similar or different

Why don't luxury brands anthropomorphize their brands?

Anthropomorphizing brands increases emotional attachments; luxury brands tend to highlight low emotional attachment

Variable

Anything (in an experiment) that can change or vary

Likert Scales

Asked to agree or disagree with a statement Ex: Statement - I enjoy online courses select one option - strongly disagree, agree, neutral, agree, strongly agree

Typical characteristics of luxury brands:

Aspirational, distant, unattainable

Low social status, higher need to signal status

Bandwagon - Affordable luxury, which usually has loud logos - Counterfeits

Why don't luxury brands publicly participate in CSR (Corporate social responsibility)?

CSR creates a prosocial image that would contradict the distant/aspirational/dominant/superior images that luxury brands strive for

Who is more likely to comply with celebrity or authority endorsement: low power distance society or high power distance society?

Celebrity endorsement is more common in high power distance society.

Triangulation

Collection of data from multiple sources

Veblen Effect

Consumers prefer buying more expensive goods to display their wealth, status, and power; Demand increases as price increases Ex: Chanel Bag

Bandwagon Effect

Consumers' tendency to buy a luxury brand to get approval from or identify with groups they belong to or admire Ex: Korean students all wearing north face coats

How do you reduce experimenter demand effect?

Control and minimize experimenter-participant interactions

Primary Data

Data collected by a researcher for the purpose of meeting specific objectives

Snob Effect

Demand for a certain good by individuals of a higher income level is inversely related to the demand for the good by individuals of a lower income level

Secondary Data

Existing information originally gathered for a research purpose other than the present research

True or False: Poverty induces a future-focused mindset.

False. It induces a PRESENT focused mindset.

True or False: Performing a ritual before eating has no effect on the flavor of the food.

False. Performing a ritual before eating enhances the flavor of the food.

True or False: As level of poverty increases, counterproductive behavior and impulsivity decrease.

False. The poor use less preventive health care/ fail to adhere to drug regimens/ are tardier and less likely to keep appointments /are less productive workers /less attentive parents /and worse managers of their finances

True or False: Personal interview surveys are a type of qualitative data.

False. It is a type of quantitative data.

FOOD DESERT

Food deserts are low-income areas where access to a grocery store is more than a mile away; limited access to affordable and nutritious food

Which self-construal is more likely to exhibit reactance (behaving opposite of how someone tells you) and the boomerang effect (when a message backfires)?

Independent

Utilitarian Value

Instrumental, functional and practical usefulness or benefits derived from a product

Which self-construal is more likely to rely on word of mouth and trust information from celebrities or authorities?

Interdependent

Which self-construal is more susceptible to peer pressure?

Interdependent

Which self-construal tries more to "fit in" and is more likely to exhibit social desirability bias, groupthink, and bandwagon consumption?

Interdependent

Which self-construal is more likely to be receptive of brand extensions?

Interdependent - Holistic thinking; focus on the relationship between an object and its environment

Rank order scales

Items are ranked in order of preference in terms of a specified criteria Ex: Rank the following chocolate brands from least preferred to most preferred with one (1) being least preferred

Why do married couples in Korea not wear their wedding rings often?

Korea is an interdependent society so privacy is less essential; strangers are likely to ask each other about family, jobs, and personal lives

What is the main difference between lab experiments and field experiments?

Lab experiments occur in a controlled setting while field experiments occur in a real-world setting.

High Power Distance

Less powerful people are expected to obey more powerful people (parent/child, teacher/student, boss/employee) Ex: Korea has high power distance, US has low power distance

Are low power distance or high power distance societies willing to donate to charity?

Low power distance societies are more willing to donate to charity.

Who is more likely to prefer friendly service: low or high power distance society?

Low power distance.

Ethnography

Market research observing customers in their own environment when they use/buy products or services

Materialism

Material comfort and possessions signify attainment of "the good life"

Symbolic Value

Meaning associated with a product

Behavior intention scale

Measures the likelihood that consumers will act a certain way in the future

In a high power distance culture, do people tend to prefer national or local brands?

National brands.

Affordable Luxury

Near-luxury or Masstige (Mass + Prestige); Brand extension products of true luxury brands (e.g., Prada key chain, Chanel lipstick, Hermès scarf); Entry-level products of true luxury brands; Usually have very prominent brand logo

Focus Groups

Often consists of 6-10 participants; non-structured with use of a discussion guide; interaction occurs between participants; lasts about 2 hours; always taped/on video to assist analysis

Depth Interview

One-on-one interview; non-structured; usually lasts 20 minutes to 1 hour; interviewer often probes to get more feedback; session is typically recorded

Masculine Society

Preference for achievement, heroism, assertiveness, and material rewards for success - The US is a masculine society

Feminine Society

Preference for cooperation, modesty, caring for the weak, and emphasis on quality of life

Word association is a type of...?

Projective test

What is an advantage of sentence completion projective tests?

Quick and easy to use; reveals a respondent's attitude towards a product/topic

How do you control individual characteristics?

Random assignment. With this method, every member of the sample has a known or equal chance of being placed in multiple groups.

True Luxury

Recognizable design, premium quality, and exclusive distribution; Targets affluent customers (Veblens, Snobs)

Group Cultural Norms

Reflects the subdivisions of a country or society

Supranational cultural norms

Reflects the underlying dimensions of culture that affect multiple societies

Causal Research

Research meant to identify a cause-and-effect relationship

Clarify Bias

Researcher states the assumptions, beliefs, values, etc. in the study outcome. Researcher also states how they had identified these threats and methods employed to overcome such threats.

Descriptive Validity

Researchers do NOT provide a detailed description of the observation setting

National Cultural Norms

Shared core values, customs, and personalities that represent the character of a particular country

High social status, lower need to signal status

Snob - True luxury with quiet logos

Power Distance

The degree to which members of a society accept and endorse inequality and hierarchy

Member checking

The recordings ofobservations, interpretations, and conclusions by the researcher are to be tested by sharing them with the people who were observed

Low social status, lower need to signal status

They DO NOT buy luxury

True or False: Focus groups are often conducted in front of one-way mirrors

True

True or False: Rituals can reduce anxiety before a stressful task and improve performance.

True. Ex: Athletes' pre-game rituals

Imagery association

Type of projective test in which researchers ask respondents to collect or select some images that describe the stimulus (e.g., brand, product, object) Ex: "Please select a picture that best represents Tylenol."

Rosenzweig test

Type of projective test which uses a cartoon format wherein we have a series of cartoons with empty word or thought bubbles. The respondents are asked to put their own words in the empty space.

Depth Interviews Focus Groups Projective Techniques Ethnography

Types of qualitative research

Observation Experiments Surveys

Types of quantitative research

Independent Variable

Variable that is intentionally varied or manipulated by the researcher

High social status, higher need to signal status

Veblen - True luxury with loud logos

When do researchers use role-playing projective techniques?

When asking for product or advertising recommendations. Ex: "If you were the creative director, what would your ad say?"

Theory Validity

When researchers attempt to fit the data into the theory adopted for the study OR when researchers ignore data that does not fit the theory or goes against the beliefs of the researchers

Reactivity

When researchers' presence in the field site sometimes affects the situation

When are interdependent people more likely to donate to charity?

When the people receiving the donation are from the same in group as them.

Interpretation Validity

When the researcher attempts to interpret actions or events from their own perspective (not objective)

Are discussion guides used in depth interviews?

Yes.

Can rituals help people handle significant, life-changing events more easily?

Yes.

Can rituals enhance consumption even if only a few people participate?

Yes. Ex: Kourtney Kardashian eating KitKats like a freak

MacArthur Scale of Subjective Social Status

a measure of subjective social standing, obtained by having respondents place themselves on a socioeconomic "ladder"

Experimenter Demand Effect

changes in behavior by experimental subjects due to cues about what constitutes appropriate behavior

Projective Techniques

designed to encourage people to project their personality characteristics onto ambiguous stimuli; enables the respondents to mention more about the research subject than they can say spontaneously, accessing meaning, thoughts or feelings that are not readily available

Economies of Scale

factors that cause a producer's average cost per unit to fall as output rises

Content Analysis

focuses on the content of societies' verbal, written, and pictorial communication

Semantic differential scales

includes opposite/bipolar adjectives Ex: Aspirin is playful or serious