MKT 310 Final Exam

Elaboration Likelihood Model (ELM)

- model how attributes are formed and changed the approach that one of two routes to persuasion (central versus peripheral) will be followed, depending on the personal relevance of a message; the route taken determines the relative importance of the message contents versus other characteristics, such as source attractiveness

sensory marketing - vision strategies

- products color, styling, and size - color influences emotions directly

what are 2 ways to resolve the conflict

-change the behavior to reflect the attitude -change the attitude to reflect the behavior

what does Schwarz have to say about making choices? what does an abundance of choice lead to?

-choice paralysis : The state of over-thinking about a decision to the point that a choice never gets made, thereby creating inaction -less satisfaction, due to high opportunity costs, high expectations and agency

types of brand resonance

-interdependency -intimacy -personal co-creation -emotional vibrancy -cultural bedrock -currency value -role resonance -category resonance

6 social classes

1. Upper Upper 2. Lower Upper 3. Upper Middle 4. Lower Middle 5. Upper Lower 6. Lower Lower

a balance theory perspective involved relations among these three elements

1. a person and their perceptions 2. an attitude object 3. some other person or object

4 dimensions of MBTI

1. extraversion (E) vs. Introversion (I) 2. Sensing (S) vs. Intuition (N) □ Attending to sensory info vs. "sixth sense" 3. thinking (T) vs. feeling (F) 4. judging (J) vs. perceiving (P) -Preferring well-ordered life vs. spontaneity

steps in cognitive decision making process

1. problem recognition 2. information search 3. evaluation of alternatives 4. product choice 5. post-purchase evaluation

category resonance

A benchmark customers use to evaluate other brands ex: Harley Davidson

Myers-Briggs Type Indicator (MBTI)

A widely used personality test based upon the work of carl jung

Fishbein's Multi-Attribute Model formula

Ajk= ∑ βijk Iik i = attributes j = brand k = consumer I = the importance weight given attribute i by consumer k B = consumer k's belief regarding the extent to which brand j possesses attribute i A = a particular consumers attitude score for brand j - to get the total attitude toward product, multiply attribute beliefs by their importance and sum

emotional vibrancy

Elicits strong emotional reactions such as happiness or excitement ex: disney

role resonance

Emblematic of a social role ex: birks

personal co-creation

Encourages consumers to create their own stories about it and how it impacted their lives ex: Levi strauss 501s

currency value

Evokes a "hot" meaning that defines a major trend in popular culture ex: über

interdependency

Facilitates habits, rituals, and routines that entwine the brand's meanings seamlessly into the consumer's everyday life ex: Starbucks

intimacy

Has "insiders" who know details of its history, including significant product development particulars, myths about product creators, and obscure "brand trivia" or facts ex: nike air jordans

extraversion

How well a person tolerates stimulation from people

cultural bedrock

Links to core cultural values ex: apple

Elaboration continuum

Ranges from low elaboration (low thought) to high elaboration (high thought)

agreeableness

The degree to which we defer to other people

conscientiousness

The level of organization and structure a person needs

problem recognition

The process that occurs whenever the consumer sees a significant difference between his current state of affairs and some desired or ideal state; this recognition initiates the decision-making process.

luxury is reward

These consumers tend to be younger than the first group but older than the third group. They use luxury goods to say, "I've made it." The desire to be successful and to demonstrate their success to others motivates these consumers to purchase conspicuous luxury items, such as high-end automobiles and homes in exclusive communities.

consensus

We consider what others do before we decide what to do -communicate how much others are buying what the business intends to sell

dominance-submission hierarchy

a "pecking order" within a culture that dictates which members are relatively higher in status than other members

value

a belief that some condition is preferable to its opposite

bounded rationality

a concept in behavioral economics that states since we rarely have the resources (especially the time) to weigh every possible factor into a decision, we settle for a solution that is just good enough

framing

a concept in behavioral economics that the way a problem is posed to consumers influences the decision they make

cosmopolitanism

a cultural value that emphasizes being open to the world and striving for diverse experiences

value system

a culture's ranking of the relative importance of values

prospect theory

a descriptive model of how people make choices

hierarchy of effects

a fixed sequence of steps that occurs during attitude formation; this sequence varies depending on such factors as the consumer's level of involvement with the attitude object

promotion motivation

a focus on hopes and aspirations as it prompts people to improve themselves

prevention motivation

a focus on responsibilities and duties as it promotes people to think about avoiding something negative in order to improve themselves

communications model

a framework specifying that a number of elements are necessary for communication to be achieved, including a source, message, medium, receivers, and feedback

taste culture

a group of consumers who share aesthetic and intellectual preferences

one percenter

a label applied by the Occupy Wall Street Movement to people who earn the top 1 percent of income

attitude

a lasting, general evaluation of people, objects, advertisements, or issues -usually learned via exposure and experiences -general because it applies to more than a momentary event

Total Quality Management (TQM)

a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

ABC model of attitudes

a multidimensional perspective stating that attitudes are jointly defined by affect, behavior, and cognition -emphasizes the interrelationships among knowing, feeling, and doing

psychological time

a person's subjective evaluation of the passage of time, which may not correspond closely to the actual time elapsed

belief system

a person's underlying beliefs; the extent to which people share a belief system is a function of individual, social, and cultural forces. Believers tend to be exposed to information that supports their beliefs

self-regulation

a persons efforts to change or maintain his/her actions over time - most relevant in studying for a major exam or maintaining a diet plan for achieving certain health goals - promotion focused at first, prevention focused eventually

design thinking

a perspective on product development that emphasizes the importance of how the product makes sense in terms of how customers actually live their lives and use these things

natural user interface (touch)

a philosophy of computer design that incorporates habitual human movements

lateral cycling

a process in which already purchased objects are sold to others or exchanged for other items

impulse buying

a process that occurs when the consumer experiences a sudden urge to purchase an item that he or she cannot resist

status hierarchy

a ranking of social desirability in terms of consumers' access to resources such as money, education, and luxury goods

reputation economy

a reward system based on recognition of one's expertise by others who read online product reviews

cultural capital

a set of distinctive and socially rare tastes and practices that admits a person into the realm of the upper class

compensatory rules

a set of rules that allows information about attributes of competing products to be averaged in some way; poor standing on one attribute can potentially be offset by good standing on another -high involvement

curation

a source such as a store or a celebrity selects a set of products to simplify shoppers' decisions

buyer persona

a story about your ideal customer based on market research and real data about your existing customer

nudging

a subtle change in a person's environment that results in a change in behavior

default bias

a tendency in decision making that makes it more likely for people to comply with a requirement than to make the effort not to comply

balance theory

a theory that considers relations among elements a person might perceive as belonging together, and people's tendency to change relations among elements in order to make them consistent or "balanced"

constructive processing

a thought process in which a person evaluates the effort he or she will need to make a particular decision, and then tailors the of cognitive "effort" expended to make this decision

Fishbein's Multi-Attribute Model

a widely-used perspective that measures several attributes to determine a persons overall attitude -measures 3 components: salient beliefs, object-attribute linkages, evaluation

Ben Perez is driving along a mountain road. In the distance, he sees a road crew working on a fallen tree that has blocked the highway. When Ben first sees the road crew, which of the following perceptual processes has been engaged? A) exposure B) attention C) adaptation D) interpretation

a. exposure

People often make decisions on the basis of a mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________. A) framing B) the sum-cost fallacy C) loss aversion D) positioning

a. framing

The ________ function of attitudes applies when a person is in an ambiguous situation and needs order, structure, or meaning. A) knowledge B) utilitarian C) value-expressive D) ego-defensive

a. knowledge

According to Freudian theory, when a young child incorporates the beliefs and ethics of his parents into his own psyche, he is essentially building a superego. A) True B) False

a. true

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." A) True B) False

a. true

Some color combinations can become so associated with a company that the corporation may be granted exclusive use of these colors. A) True B) False

a. true

Swishing is a term used to describe when people organize parties to exchange clothing or other personal possessions with others. A) True B) False

a. true

weighted additive rule

allows consumers to take into account the relative importance of the attributes by weighting each one

subjective norm

an additional component to the multiattribute attitude model that accounts for the effects of what we believe other people think we should do

knowledge function

an attitude that provides order, structure, or meaning

attitude accessibility perspective

an attitude will guide the evaluation of the object but only if a person's memory activates it when she encounters the object

sharing economy

an economic model involving the sharing of underutilized resources

plutonomy

an economy that a small number of rich people control

theory of reasoned actions

an updated version of the Fishbein multiattribute attitude theory that considers factors such as social pressure and Aact (the attitude toward the act of buying a product), rather than simply attitudes toward the product itself

attitude objective

anything toward which one has an attitude -ex: global warming, recycling, political affiliation, professions

multi-attribute attitude model

assumes that a consumer's attitude toward an attitude object depends on the beliefs she has about several of its attributes

ego-defensive function

attitudes we form to protect ourselves either from external threats or internal feelings

3 components of multi-attribute attitude model

attributes beliefs importance weights

Julie Morgan loves to go into Springer's 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 casual browsing. After her visit to the store, Julie is always in a better mood. Springer's Old Country Gifts has attracted Julie with its ________. A) store position B) atmospherics C) subliminal clues D) marketscape theme

b. atmospherics

Income is a better predictor of purchases that have symbolic aspects but low moderate prices. A) True B) False

b. false

Norma Shields is a researcher investigating lifestyles of the rich and famous. This week she is examining her target audience's views on food, the media, fashion, and recreation. Which of the AIO categories does Norma seem to be working on now? A) activities B) interests C) opinions D) demographics

b. intertests

The average adult is exposed to about 3,500 pieces of advertising information every single day, far more information than they can or are willing to process. Consumers who are exposed to more information than they can process are in a state of ________. A) advertising bombardment B) sensory overload C) sensory shifting D) circuit overcapacity

b. sensory overload

Consumers who buy everything in sight are called ________. A) tightwads B) spendthrifts C) justifiers D) balancers

b. spendthrifts

Allen has a store that rents only formal wear to men, such as tuxedoes. Allen sells to a highly segmented market based on ________. A) product disposal B) usage situation C) mood D) sales interaction

b. usage situation

what happens typically when there is a conflict

behavior and attitude cause the conflict -We often confront situations in which there is some conflict between our attitudes toward a product or service and what we actually do or buy

habitual decision making

behavioral, unconscious, automatic - low risk and involvement

_____ is a lasting, general evaluation of people, objects, advertisements, or issues a. an object b. a power c. an attitude d. an image

c. an attitude

Linda named her car, which she drove to work every day, Sylvia. She talked to her friends about the personality traits her little car seemed to have. Linda has ________ her car. A) branded B) archetyped C) anthropomorphized D) repositioned

c. anthropomorphized

According to ________, we evaluate the effort we'll need to make a particular choice and then we tailor the amount of cognitive "effort" we expend to make that choice. A) cognitive processing B) mental processing C) constructive processing D) behavioral processing

c. constructive processing

Which of the following is considered a post-purchase process? A) the shopping experience B) mood C) consumer satisfaction D) shopping orientation

c. consumer satisfaction

Money available to a household over and above what is required to have a comfortable standard of living is called ________. A) real income B) overtime pay C) discretionary income D) average of earnings

c. discretionary income

cognitive dissonance

can explain why positive attitudes towards a product are formed after purchase -ex: continuing to support a sports team despite their poor performance

what is habitual decision making

choices made with little or no conscious effort

product disposal

choices people make regarding how to get rid of items once they no longer are of value to them

satisficing decision

chooses the first satisfactory alternative that presents itself

what are the 3 categories of consumer decision making

cognitive habitual affective

trade dress (visual)

color combinations that become strongly associated with a corporation

what does our society value as a personality trait

consistence -trust -reliability

A component of a hierarchy of effects is ________. A) non-experiential hierarchy B) standard learning hierarchy C) high involvement hierarchy D) all of the above

d. all of the above

Marketers use results from AIO surveys to ________. A) define target markets B) create a new view of the market C) position a product D) all of the above

d. all of the above

SRI Consulting Business Intelligence divides consumers into which of the following groups? A) Luxury is functional B) Luxury is a reward C) Luxury is indulgence D) All of the above

d. all of the above

If I am working for Bar A and trying to increase my overall attitude score as efficiently as possible, I should use marketing communications that increase which single attribute's weight (i.e. importance)? (Assume that you can increase the importance of any single attribute to 10) a. Parking - 7 b. Music - 3 c. Dance Floor - 1 d. Beer Selection - 10 10 is positive opinion and 1 is negative

d. beer selection

The alternatives actively measured during a consumer's choice process are the ________ set. A) inert B) evoked C) evaluate D) consideration

d. consideration

A garage sale is an example of what is called ________. A) the profit motive B) renewing C) casting away D) lateral cycling

d. lateral cycling

A coupon-dispensing machine in a grocery aisle and an employee handing out free samples of a new product are both examples of ________. A) pretailing B) retail theming C) shopping orientations D) POP stimuli

d. pop stimuli

non compensatory rules

decision shortcuts a consumer makes when a product with a low standing on one attribute cannot make up for this position by being better on any other attribute - make habitual or emotional decisions

cognitive decision making

deliberate, rational, sequential

parody display

deliberately avoiding status symbols; to seek status by mocking it

affect

describes how a consumer feels about an attitude object

consistency principle

desire to be consistent with what we have done -once we make a choice, we will encounter personal and interpersonal pressures to behave consistency with that commitment ex: supporting a cause and subsequently making time for participating in its activities, despite being very busy

beacons

devices in a retail environment that communicate with shoppers' phones as they walk through the aisles

online gated communities

digital social networks that selectively allow access to people who possess criteria such as wealth or physical attractiveness

value-expressive function

each individual develops attitudes toward products because of what they say about him or her as a person

affective decision making

emotional, instantaneous

endowment effect (touch)

encouraging shoppers to touch a product encourages them to imagine they own it, and researchers know that people value things more highly if they own them

what are the 2 evaluations of alternatives?

evoked set and consideration set

frugalistas

fashion-conscious consumers who pride themselves on achieving style on a limited budget

experiential hierarchy

feel → do → think we act on the basis of our emotional reactions -hedonic consumption

exposure

first stage in perception - some sensations come within range of consumers' sensory receptors

the most influential multi attribute model

fishbeins model

psychophysics

focuses on how people integrate the physical environment into their personal, subjective worlds

beliefs

how strongly do consumers believe that a product has the said attributes

importance weights

how strongly do consumers believe that a product has the said attributes

Neuroticism (emotional instability)

how well a person copes with stress

consumption situation

includes a buyer, a seller, and a product or service- but also many other factors, such as the reason we want to make a purchase and how the physical environment makes us feel

purchase momentum

initial impulses to buy in order to satisfy our needs increase the likelihood that we will buy even more

cybermediary

intermediary that helps to filter and organize online market information so that consumers can identify and evaluate alternatives more efficiently

semiotic analysis

involves the correspondence between stimuli and the meaning of signs

cognition

is what he or she believes to be true about the attitude object

simple additive rule

leads to the option with the larger number of positive attributes

3 types of noncompesatory rules

lexicographic rule elimination by aspects conductive rule

scarcity

like people, items are more attractive when they arent available ex: limited editions, flash sales, seasonal flavors

peripheral route persuasion

little thought and elaboration -likely to use other cues to decide how to react to the message

SRI Consulting Business Intelligence divides consumers into three groups based on their attitudes toward luxury:

luxury is functional luxury is a reward luxury is indulgence

sensory marketing

marketing strategies that focus on the impact of sensations on our product experiences five senses: touch, hear, sight, taste, smell

homogamy

marriage between people with the same social characteristics

AIO's

measures of consumer activities, interests, and opinions used to place consumers into dimensions

lexicographic rule

noncompesatory rule - consumers select the brand that is the best on the most important attribute

elimination by aspects rule

noncompesatory rule - must have a specific feature to be chosen

conjunctive rule

noncompesatory rule -entails processing by brand

big 5 personality traits

openness, conscientiousness, extraversion, agreeableness, neuroticism

social capital

organizational affiliations and experiences that provide access to desirable social networks

knowledge structure

organized system of concepts relating to brands, stores, and other concepts

gestalt

overall pattern that guides the way we classify and organize

swishing

people organize parties to exchange clothing or other personal possessions with others

consistency

people try not to contradict themselves in terms of what they say and do about an issue

permission marketing

popular strategy based on the idea that a marketer will be much more successful in persuading consumers who have agreed to let them try

sensory marketing - touch strategies

power of actually touching products -touch can influence sales interactions - haptic senses -all of our senses interact with one another to influence taste

perceptual selection

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

status symbols

products whose primary function is to communicate one's social standing to others

priming

properties of a stimulus that evoke a schema that leads us to compare the stimulus to other similar ones we encountered in the past

central route persuasion

refers to a more high-involvement decision making process

subliminal perception

refers to a stimulus below the level of the consumer's awareness.

behavior

refers to the actions he or she takes toward the object or in some cases at least his or her intentions to take action about it

sensation

refers to the immediate response of our sensory receptors to basic stimuli such as light, color, sound, odor, and texture

dyadic encounters

relationships in which both parties must reach some agreement about the roles of each participant during a process of identity negotiation

underground economy

secondary markets (such as flea markets) where transactions are not officially recorded

2 types of compensatory rules

simple additive rule and weighted additive rule

what are the stages of perception?

stage 1: exposure stage 2: attention stage 3: interpretation

attention

stage 2 of perception -the assignment of processing activity of selected stimuli

expectancy disconfirmation model

states that we form beliefs about product performance based on prior experience with the product or communications about the product that imply a certain level of quality: (1) if something performs the way we thought it would, we may not think much about it; (2) if it fails to live up to expectations, this may create negative feelings; (3) if performance exceeds our initial expectations, we are satisfied

differential threshold

the ability of a sensory system to detect changes in or differences between two stimuli

rational perspective

the assumption that people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision - compare various brands of products on salient beliefs - identify the expected value associate with a purchase

Brand Resonance

the condition that occurs when a brand truly speaks to some aspect of a consumers individual life or the culture in which he or she lives

openness to experience

the degree to which a person is open to new ways of doing things

brand prominence

the display of blatant status symbols to ensure that others recognize one's luxury brands

status signaling

the extent to which a brand employs prominent signs of status such as a well-known logo on merchandise

consumer confidence

the extent to which people are optimistic or pessimistic about the future health of the economy

post purchase evaluation

the final stage of consumer decision making when we experience the product or service we selected

post-purchase evaluation

the final stage of consumer decision making when we experience the product or service we selected

queuing theory

the mathematical study of waiting lines

absolute threshold

the minimum amount of stimulation a person can detect on a given sensory channel

discretionary income

the money available to a household over and above that required for necessities

P2P commerce

the notion of doing business with other consumers rather than with companies

provenance

the origin of a product and a preference for "authentic" items

two-factor theory

the perspective that two separate psychological processes are operating when a person is repeatedly exposed to an ad: repetition increases familiarity and thus reduces uncertainty about the product, but over time boredom increases with each exposure, and at some point the amount of boredom incurred begins to exceed the amount of uncertainty reduced, resulting in wear-out

sensory thresholds

the point at which it is strong enough to make a conscious impact in his or her awareness

webers law

the principle that the stronger the initial stimulus, the greater its change must be for it to be noticed

Search Engine Optimization (SEO)

the procedures companies use to design the content of Web sites and posts to maximize the likelihood that their content will show up when someone searches for a relevant term

perception

the process by which people select, organize, and interpret the sensations. focuses on what we add to the raw sensations to give them meaning - depends on external stimuli received from the brain - people usually tend to use existing knowledge about things to process incoming info

information search

the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision

sound symbolism (hearing)

the process by which the way a word sounds influences our assumptions about what it describes and attributes such as size

social stratification

the process 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

normative influence

the process in which a reference group helps to set and enforce fundamental standards of conduct

Acculturation

the process of learning the beliefs and behaviors endorsed by another culture

enculturation

the process of learning the beliefs and behaviors endorsed by one's own culture

identity negotiation

the process that occurs when both participants in an encounter reach agreement about the role of each person

interpretation

the process whereby meanings are assigned to stimuli -Many of these meanings depend on our socialization within a society

consideration set

the products a consumer actually deliberates about choosing

consumer hyperchoice

the profusion of options in the modern marketplace that forces us to make repeated decisions that may drain psychological energy while decreasing our abilities to make smart decisions - doesn't allow us to make the smart choices in subsequent decision making

point-of-purchase (POP) stimuli

the promotional materials that are deployed in stores or other outlets to influence consumers' decisions at the time products are purchased

conspicuous consumption

the purchase and prominent display of luxury goods to provide evidence of a consumer's ability to afford them

gastrophysics (taste)

the science of eating that considers how physics, chemistry, and perception influence how we experience what we put in our mouths

authority

the source of information and its credibility

martyrdom effect

the tendency for people to donate more to a cause if they also have to sacrifice something or experience discomfort

feature creep

the tendency of manufacturers to add layers of complexity to products that make them harder to understand and use

mere exposure phenomenon

the tendency to like persons or things if we see them more often

persuasive design

the use of "nudges" by an organization to modify behavior

psychographics

the use of psychological, sociological, and anthropological factors to construct market segments

invidious distinction

the use of status symbols to inspire envy in others through display of wealth or power

codes

the ways consumers express and interpret meanings -restricted and elaborative

luxury is functional

these consumers use their money to buy things that will last and have enduring value

why do attitudes exist

they serve some type of function

low involvement hierarchy

think → do → feel assumes that the consumer initially doesn't have a strong preference for one brand over another; instead, he or she acts on the basis of limited knowledge and forms an evaluation only afterhe or she has bought the product -behavioral learning

high involvement hierarchy (standard learning)

think → feel → do assumes that a person approaches a product decision as a problem-solving process -based on cognitive info processing -He or she is motivated to seek out a lot of information, carefully weigh alternatives, and come to a thoughtful decision.

luxury is indulgence

this group is the smallest of the three and tends to include younger consumers and slightly more males than the other two groups. to these consumers, the purpose of owning luxury is to be extremely lavish and self-indulgent. this group is willing to pay a premium for goods that express their individuality and make others take notice. they have a more emotional approach to luxury spending and are more likely than the other two groups to make impulse purchases

evoked set

those products already in memory plus those prominent in the retail environment that are actively considered during a consumer's choice process

what are four different attitude functions

utilitarian value-expressive ego-defensive knowledge

liking

visually attractive products, better functionality - get along with people we like

habitus

ways in which we classify experiences as a result of our socialization processes

sensory overload

we are exposed to far more information than we can process

Reciprocity

we are more likely to give if we first receive ex: coupons, free trials

utilitarian function

we develop some attitudes toward products simply because they provide pleasure or pain -reward or punishment

unplanned buying

when a shopper buys merchandise she did not intend to purchase, often because she recognizes a new need while in the store

attributes

which attribute do consumers consider the most

adaptation

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