Marketing 4220: Exam 1

The average amount of food and average American household throws away every year

$2200

Stimulus Organization

Gestalt psychology - we look at things as a whole Closure principle - you close things off because we see things as a whole Similarity Principle - we group things that are similar so that other things stand out Figure-ground principle - when we look at pictures some things come to the forefront and some things go to the background

Which of the following behavioral learning processes happens through reinforcement (positive, negative or punishment)?

Instrumental/operant conditioning

Materialism linked to 3 things:

Money Appearance Status

Which of the following affective responses is not tied to an event, can't be easily changed, and lasts the longest?

Mood

Demographics and Psychographics examples

Pampers - target parents who have little kids at home Harry's Razors - older men who shave Alpine Shop - psychographics

Heavy vs Light users

Pareto Principle: -20% of customers make up 80% of customer sales (HEAVY USERS) -20% of products also make up 80% of sales -heavy users= most important customer to their company

The first level of Maslow's Hierarchy of Needs which must be fulfilled before a consumer can move to the next level is:

Physiological

Bryan goes into Dick's Sporting Goods and sees and elliptical on sale. He tries it out and loves it. He decides to buy it which he wouldn't have done if he didn't try it in the store environment. This is an example of which type of involvement?

Situational

Utilitarian Consumption

The consumer focus is on a product's physical or technical attributes and performance. The utilitarian consumer experience is based on achieving goals related to necessity and practicality.

Business Ethics

The use of ethics in making business decisions to do more good and make moral decisions -personal preference -customer chooses companies they shop with

Consumer Rights

What do you do if you're not happy with a product? 1. voice response - appeal to company 2. private response - talk to friends 3. third party response - complain via another source (bad review on yelp)

Consumer Involvement

a person's perceived relevance of the object based on their needs, values, and interests

Want

a specific manifestation of a new that personal or cultural factors define -all my friends have iPhones so thats something that I want

Hedonic Treadmill

a theory proposing that people stay at about the same level of happiness regardless of what happens to them --we buy things we think will make us happy, but then satisfaction diminishes after purchase

Sustainability and Environmental Stewardship

a triple bottom line orientation refers to business strategies that strive to maximize profits/return in 3 ways: 1. financial 2. social 3. environmental

The degree to which people continue to notice a stimulus over time is referred to as:

adaptation

Endowment effect

an emotional bias that causes individuals to value an owned or touched object higher than its market value

Market Segmentation

an organization targets its product, service, or idea only to specific groups of consumers -ex: bar scene

Recall

ask consumers to think of ads they remember Which brand do you remember form today's lecture?

We store information in organized systems of related information called....

associative networks

Stimulus Selection Factors

characteristics of the stimulus that makes it noticeable 1. contrast 2. size 3. color 4. position 5. novelty

Cult Product

command fierce consumer loyalty, devotion, and even worship by consumers who are highly involved -tik tok product

Sensory Marketing

companies think carefully about the impact of sensations on our product experiences -method soap line (focusing on packaging)

Sensory Overload

condition resulting from excessive sensory input to which the brain is unable to meaningfully respond -going to New York City

Addictive Consumption

consumer addiction is a physiological or psychological dependency on products or services -addicted to the euphoria of buying something

The Empowered Consumer

consumers are so empowered today because of the technology and the resources available to them. The basically unlimited data, content, and information that your audience has access to has set the bar a little higher for brands -hands-on -smart -loyal -we can shop globally

Valence

direction -we are driven to approach positive goals -driven to avoid negative outcomes

Customers will pay more for a product if they pick it up and touch it. What is this called?

endowment effect

What is the first stage of the perception process?

exposure

Market Regulation

federal agencies that oversee consumer related activities -FDA

You know that your first exam is scheduled for February 23. You will probably wait to study for it until close to the scheduled date. Major sales at retail stores that happen annually work the same way. These are based on TIME. What type of reinforcement schedule is this?

fixed interval

Drive Theory

focusses biological needs that produce unpleasant states of arousal -hungry or tired you are driven to work towards homeostasis -your degree of motivation depends on the distance between your present state and the goal

Cause Marketing

for-profit company aligns with a specific cause -ex: Subaru commercial partnering with different causes. buy a car and you donate to different causes/charities

Semiotics

helps us to understand how marketers use symbols to create meaning -is about signs and symbols and how we assign meaning (emojis)

Hedonic Consumption

how consumers interact with emotional aspects of products -purchases are emotional -stores use sense to entice customers to buy (grocery store with restaurants that you can get a drink while you shop) -appreciating good design of a product

Sensation

how our sensory receptors respond to stimuli -sight, touch, hearing, taste, smell -we dont pay attention to all sensations (being on your phone and missing part of a lecture) -sometimes we pay to experience unusual sensations (rollercoasters, concerts, skydiving)

Which of the following learning processes is accidental or unintended?

incidental

Relationship Marketing

interacting with customers on a regular basis -tries to form a relationship with you -ex: Sephora offering a birthday gift

Provenance

knowing where your goods come from -if you know where it comes from, customers are more willing to pay more -ex: food, wine

Incidental Learning

learning without trying to learn, and often without awareness that learning is occurring -learning slogans/sayings form commercials

Which of the following is NOT a demographic variable?

lifestyle

Social Marketing

marketing a cause like a product -not for profit -doing an open house to show poverty in Canada -PSA don't text and drive

Green Marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

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

marketing products

Interpretation

meanings we assign to stimuli -we interpret the stimuli to which we do pay attention according to learned patterns and expectations -schema = set of beliefs

Marketers impact our popular culture choices

music, movies, sports, books, celebrities, entertainment, social views are all impacted by social cultures -as people gravitate towards specific things they tend to look at what consumers gravitate towards

Motivation Process

needs -physiological or psychological deficiency drives -driven towards to goal goals -any thing that alleviates a need and reduces a drive

In the semiotic relationship of the Most Interesting Man Alive campaign we discussed, the Dos Equis brand is the....

object

Motivation

occurs when a need is aroused that the consumer wishes to satisfy -the need creates a state of tension that drives the consumer to attempt to reduce or eliminate it

Data Privacy and Identity Theft

occurs when someone steals your personal information and uses it without your permission

Corporate Social Responsibility

organizations make a positive impact on stakeholders -do good things to help the community, customers, employees -ex: IKEA Foundation

Associative Networks

organized systems of related information

Cognitive Dissonance

people have a need for order and consistency in their lives and that a state of dissonance (tension) exists when beliefs or behaviors conflicts with one another -post decision dissonance

Digital natives

people that grew up with technology -document everything -always connected -social media

The theory that states that we are only aware of stimuli that relate to our current needs is called:

perceptual vigilance

Fixed Interval Reinforcement

*TIME* something happens at the same time or scheduled time that you are aware of ex: cramming for a test, nordstroms has an anniversary sale so they wait to shop until that day

Variable Interval Reinforcement

*TIME* something is going to happen and you dont know when ex: Pop quiz

Complaining to friends during a conversation when a product or service doesn't meet your expectations is which type of consumer rights response?

private

Memory

process of acquiring and storing information

Curation

products that are carefully chosen by an expert -fewer choices that are carefully selected, feel more special to you ex: art museum NOT an example: would be like nordstroms or tjmaxx

Hedonic

products with emotional value -water out of a personal water bottle and personalize it with stickers

Fixed Ratio Reinforcement

*You have to do an action* You are going to do something a predetermined amount of times and you will get something in return ex: you go to work all week and you get a paycheck

Variable Ratio Reinforcement

*You have to do an action* You do something and you get something in return, but you have no idea when or what it is going to be ex: Gambling, loyalty program THIS ONE WORKS BEST

Demographics

*quantifiable* age gender family structure (married or divorced) social class/income ethnicity occupation geographics education

Knowing where your goods come from and being willing to pay more for that is called...

provenance

What is the final stage of the memory process?

retrieval

When a product helps to complete a person's identity, this attachment is called:

self-concept

Recognition

show ads and ask if people have seen them Show them a brand and ask them if they remember learning about it in lecture

Negative reinforcement

shows how a negative outcome can be avoided -you do something to avoid something bad happening -feed your dog dentasticks to avoid taking your dog to the dentist

Need

something we must have to live or achieve a goal -water, need a phone for a job

Behavioral Learning

stimulus and response connections -something happens and we do something in response to it

Differential Threshold

the ability of a sensory system to detect changes in or differences between two stimuli -logo change = old coca cola can and the new coca cola can -just noticeable difference (JND) = buying a box of oreos or buying a pack of oreos that are a 100 calorie pack for more money and less amount

Market Access

the ability to find and purchase goods and services -we have the ability to go to the grocery store and be able to read the labels

Big Data

the collection and analysis of large sets of data -Ex: Netflix looks at ratings and how you watch a movie etc.

2. Attention

the extent to which processing activity is devoted to a particular stimulus -depends on stimulus and recipient -sensory overload

We buy things we think will make us happy, but then satisfaction diminishes after purchase. This is referred to as:

the hedonic treadmill

Materialism

the importance people attach to worldly possessions -more likely to value possessions for their status and appearance related meanings --(expensive products so that people can see it) --link more of their self identity to products -non-materialists value possessions that link them to other people and provide pleasure through use (cherished items that provide personal significance) -people care about experiences more than anything today ex: Rolex watches

just noticeable difference (JND)

the minimal change in a stimulus that can just barely be detected -buying a box of oreos or buying a pack of oreos that are a 100 calorie pack for more money and less amount

Storage

the other products we associate with an individual product influence how we will remember it

Sensory Threshold

the point at which a stimulus is strong enough to make a conscious impact on a person's awareness -listening to a lecture with the volume down won't reach or affect you

Perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world -one person likes sushi, one person does not

Webers Law

the stronger the initial stimulus, the greater a change must be for us to notice it -Ikea winter sale save up to 50% off

Consumer Behavior

the 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

Absolute Threshold

the weakest amount of a stimulus that a person can detect 50% of the time -hearing a watch tick 20 feet away

Database Marketing

tracking specific consumers' buying habits closely creates messages tied to past behavior

Which of the following is not one of the hallmarks of being an empowered consumer?

transparent

Buying something purely for the functional benefit is a __________ motive.

utilitarian

When it comes to motivation, goals have direction. What is this direction called?

valence

Brand Personality

way that you would describe the brands -buy things for not just what they are but what they say about us -ex: Yeti - rugged, durable, outdoors, extensive -ex: Kate Spade - fun, colorful, cheerful

Role Theory

we play different parts in our lives -each part of our lives we play there are different products we use for each role examples: -Student = laptop, books -Employee = dress differently and have different props for the job -Meet the parents = you can have different outfits you would wear

Greenwashing

when a company says that they are trying to something environmental but its actually not -regular diaper --> cloth diaper

Punishment

when unpleasant events follow a response -you do something and something bad happens

Observational Learning

when we learn something from someone else and then we either perform the behavior or we don't 1. attention 2. retention 3. production process 4. motivation

Intentional Learning

when we try to learn and understand concepts

Company Response to Consumer Rights

you are a good customer and you respond to the product because you care -customer will be more loyal in return when you respond

Homeostasis

you are satisfied or in a balanced state -you drive to get to homeostasis

Positive Reinforcement

you do something, something good happens in return

Cradle to Cradle

zero resources used in production/disposal -recyclable or biodegradable

Inertia

-buying a product out of habit -don't care about which product and pick the first product off the shelf

Classical Conditioning

-involuntary -we dont think about it it just happens to us a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own 1. unconditioned stimulus (food) 2. conditioned stimulus (bell) 3. conditioned response (dogs would drool)

Psychographics

-lifestyles, values, and what you want in a company, how you spend your time and money -better insight to customers

Why do firms exist?

-organizations exist to satisfy our needs -companies care about their best customers -they care the most about who spends the most money -cant exist if they don't know what we want

Data Privacy

-phishing -botnets -locational privacy

Positive Affect

-products that make you happy -relate happy feelings back to the brand

Stimulus Generalization

-stimuli similar to conditioned stimulus evoke similar responses -Halo Effect: people react to similar stimuli in much the same way they responded to the original stimulus 1. Family Branding 2. Product Line Extension 3. Licensing 4. Look a like packaging

Utilitarian

-use it for just the function of it -no emotional value -water drinking it out of a water fountain

Consumer Trends

-values that drive consumers -brands that align with dominant trends will be successful ex: reusable straws for using less waste and such

Instrumental (operant) Conditioning

-voluntary the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes

Consumer Behavior is a process

-we trade money, time, behavior to see value or to see something in return -The exchange process is only ONE PART

Market Access Limitations

1. Disabilities 2. Food Deserts - no supermarkets within 10 miles 3. Food security 4. Literacy - being able to understand and read labels etc. --media literacy: being able to evaluate information --functionally illiterate

Negative Affect

1. Disgust 2. Guilt

Encoding

1. Episodic Memories -really important life event memories 2. Flashbulb Memory -a moment in time, where was I when this happened 3. Narrative -turning something into a story or example that will be easier to remember

Affective Responses

1. Evaluations - least intense, positive/negative reaction, your opinion 2. Moods - not linked to an event, shorter lived 3. Emotions - most intense / linked to an event

Stages of Perception

1. Exposure -some youre concentrated on -some you're unaware of -some you ignore 2. Attention 3. Interpretation

Types of Risk

1. Monetary Risk -expensive 2. Functional Risk -is going to work how I think it is going to work 3. Physical Risk -is it going to be harmful to use physically 4. Social Risk -what are people going to think about you 5. Psychological Risk -how you feel about yourself after buying the product

Consumer Needs

1. Need for affiliation -the need to be around other people 2. Need for Power -need to feel in control of our surroundings 3. Need for uniqueness -feeling individualism -ex: customizing your shoes 4. Need for achievement -feeling as if you are achieved -buying an expensive car or watch

Types of Affect

1. Negative state of relief -make someone feel distressed and then give them a way to solve it 2. Sadvertising -inspirational stories that manipulate our emotions like a rollercoaster 3. Mood Congruency -our judgements are shaped by our moods -our moods affect our purchases

1. Self-Concept Attachment

1. Nostalgic attachment --Wedding Rings --Grandma's Kitchen Aid Mixer 2. Interdependence: --computers --phones 3. Love: --Jeeps wrangler (makes you so happy)

Way to increase involvement

1. Perceived Risk -decided to come to mizzou and it was a risk 2. Personalization -let the customer do something to customize the product 3. Brand Loyalty -you are loyal to the company and increases your consumer involvement

Perceptual Selection Factors

1. Perceptual Vigilance: we are aware of stimuli that relate to our current needs (buying a car) 2. Perceptual defense: we ignore or distort stimuli that are threatening 3. Adaptation: the degree to which consumers continue to notice a stimulus over time (we habituate) --Intensity --Duration --Discrimination --Exposure --Relevance

Consumption Process

1. Prepurchase issues 2. Purchase issues 3. Postpurchase issues

Conditioning Issues

1. Repetition - repeated exposures increase strength of associations -increases learning -more exposures = increased brand awareness 2. Extinction - when associations stop, the association eventually disappears -when exposure decreases = extinction occurs 3. Stimulus Generalization

Consumer Brand Attachments

1. Self-Concept Attachment

5 senses of marketing

1. Vision = use of color and aesthetic advertising, store designs, packaging -issues with perception based on your experiences and what you know. (ex: canned wine = half a bottle of wine) 2. Color = changes based on background, color has learned associations (what color do you wear to a funeral), Trade Dress = colors are tied to brands (tiffany blue, shoes with red sole = christian louboutin) 3. Smell = odors evoke memories, retailers use scent (ex: abercrombie, victorias secret) 4. Sound = sound symbolism - assigning names to sounds 5. Touch = Haptic -if you touch something youre more likely to buy it 6. Taste = -influences your reaction to a product, using words in marketing (packed with crunch) -price and atmosphere affect perception

Motivational conflicts

1. approach-approach -two good options you have to choose between them 2. approach-avoidance -you have one good option but there is something negative about it 3. avoidance-avoidance -two bad options and have to choose between them -ex: you break your computer and you have to buy a new one for $1000

3 stages of memory

1. encoding -information is placed in memory 2. storage -information is retained in memory 3. retrieval -information stored in memory is found as needed

Semiotic Relationships

1. object - product 2. sign - image/ spokesperson 3. interpretant - the meaning -icon = resembles product (men and women bathroom signs) -index - shares a property (mens shoe vs women shoe) -symbol - agreed upon association (male and female sex symbols)

Maslow's Hierarchy

1. physiological 2. safety 3. love/belonging 4. ego needs/esteem 5. self-actualization

Consumer Involvement (types)

1. product 2. message 3. situational

Levels of Knowledge

1. schema -cognitive framework we develop through experience 2. script -sequence of events we expect to occur 3. service scripts -what do you expect to happen if you are going out to eat

Consumer Theft and Fraud

1. shrinkage - loss of products, businesses plan for it, when people steal it increases prices for everyone else 2. serial wardrobers - buy it and wear it and return it 3. counterfeiting - a product that is against a trademark or fake

Modeling

1. the consumers attention must be directed to the appropriate model and it must be someone the consumer wishes to imitate 2. the consumer must remember what the model says or does 3. the consumer must convert this information into actions 4. the consumer must be motivated to perform these actions

According to the Pareto Principle:

20% of a firm's customers are responsible for 80% of sales

Amy has to choose between fixing her car or buying a new one, neither of which she has the money to do right now. What is this motivational conflict called?

Avoidance-avoidance

Coors Seltzer gives money from each 12 pack sold to the organization called Change the Course to restore 500 gallons of river water. This is an example of a for-profit company aligning with a cause and it's called:

Cause Marketing