MKT 310 Unit 3

Marketers understand that individuals make statements about their social class through product purchases. Research on the study of the impact of fakes finds a major headache for many​ manufacturers, especially in Asia. Officials in China estimate that​ ________ percent of the products made there are counterfeit.

15-20

The​ ________ richest people in the world are worth​ $1.9 trillion. This is about the same amount shared by the 3.5 billion people who are in the bottom half of the​ world's income bracket.

80

Esso​ (now Exxon in the United​ States) used the work of Ernest Dichter to influence its​ "Put a Tiger in Your​ Tank" ad campaign. Which of the following conclusions formed the rationale for the famous​ campaign? A. The tiger supplies powerful animal symbolism and it contains vaguely sexual undertones. B. The playful nature of the tiger is appealing to female consumers. C. Orange and black are two of the most powerful colors in the color spectrum. D. The size of the tiger enhances a​ male's ego.

A

Which is an example of​ anthropomorphism? A. A car owner thinks that his car is cool and fun. He sometimes talks to it as a friend. B. An underwear maker releases a controversial print ad that many believe is too explicit. C. A salesperson classifies her customers by personality type. D. A marketer launches a new product designed for​ middle-aged men with high incomes. E. A researcher speaks one on one with a subject for two hours about why he buys the brand of sneakers he wears.

A

This occurs when consumers disguise their luxury items in the belief that truly high status people do not need to display expensive logos, whereas those who do betray lower status.

Abranding

This is the person who actually purchases a product.

Buyer

Taco​ Bell's very successful decision to offer tacos produced with Dorito brand shells is an example of which strategy described in this​ chapter?

Co-branding

This rule for decisionmaking allows a product to make up for its shortcoming on one dimension by excelling on another.

Compensatory rule

This rule entails processing by brand. The decisionmaker establishes cutoffs for each attribute, chooses a brand if it meets all the cutoffs, and rejects a brand if it fails ANY of the cutoffs.

Conjunctive rule

This term was coined by Veblen and refers to people's desires to provide prominent visible evidence of their ability to afford luxury goods.

Conspicuous consumption

Consumer's beliefs about what the future holds

Consumer confidence

This refers to the fact that we are more likely to comply with a requirement than to make the effort to not comply

Default bias

​Lee-Ann Wang is young and enjoys risky activities such as​ skydiving, bungee​ jumping, and snowboarding. To which of the following VALS2TM groups would​ Lee-Ann most likely​ belong?

Experiencers

This occurs when a consumer stops using a brand because they don't want to be mislabeled as a lesser status person who buys fake brands.

Flight

This is the person who conducts the information search and controls the flow of information available to the group; in an organization, they identify possible vendors and products for the rest of the group to consider

Gatekeeper

This type of DM describes the choices we make with little or no conscious effort.

Habitual

Mental rules of thumb

Heuristics

Based on motivational​ research, which of the following consumption motives most likely explains a​ person's motivation to purchase gourmet​ foods, foreign​ cars, cigarette​ holders, or​ perfume?

Individuality

This person tries to sway the outcome of a decision.

Influencer

This is the person who brings up an idea or identifies a need for something.

Initiator

The VALS2TM group that has the highest degree of resources and innovation is termed the​ ________. This group is concerned with social issues and is open to change.

Innovators

A​ consumer's ________ refers to the various ways the consumer decides to invest time and money and how these consumption choices reflect his values and tastes.

Lifestyle

Loss aversion refers to the fact that people hate ________ more than they like ______.

Losing things, getting things

This group of consumers tends to purchase luxury items to demonstrate to others that they have "made it" (expensive homes, cars, etc)

Luxury is a reward

This group purchases expensive items that are very high quality and will last a long time; their purchasing of these goods is highly thought out and not impulsive.

Luxury is functional

Which phrase is used by marketers to describe consumers who use their money to buy things that will last and have enduring​ value?

Luxury is functional

Devon has a more emotional approach to luxury spending and is more likely to make impulse purchases. Based on​ Devon's attitude towards​ luxury, SRI Consulting Business Intelligence would place her in which consumer​ group?

Luxury is indulgence

This group of consumers is the smallest of luxury buyers and more likely to be younger; they want luxury goods so they can be lavish and self-indulgent. It's more impulsive and an emotional approach is used.

Luxury is indulgence

Jessie uses her luxury goods to​ say, "I've made​ it." She likes to demonstrate her success to others and purchases conspicuous luxury​ items, such as​ high-end automobiles and homes in exclusive communities. Market researchers would describe Jessie as which type of​ consumer?

Luxury is reward

In the lexicographic rule, what do consumers do if there are two or more brands that are equally good on the most important attribute?

Move on to the next most important criteria and pick the one that performs best in that criteria.

This occurs when an organization wants to make a purchase and needs to conduct extensive problem solving.

New task

This set of rules operate by eliminating any options that do not suit us on one dimension.

Noncompensatory

When we make habitual or emotional decisions, we typically use a __________ rule.

Noncompensatory

Consumers who have recently achieved their wealth and don't have the benefit of extensive training to know how to spend it

Noveau riche

What is one example that Ariely gave regarding default bias?

Opt in vs. opt out of organ donation

Deliberately avoiding status symbols by mocking status.

Parody display

Some individuals who have a desire to make a statement about their social​ class, or the class to which they hope to​ belong, seek status by deliberately avoiding fashionable products. Market researchers would use the term​ ______ to describe the actions of these status seekers.

Parody display

This occurs when consumers go out of their way to emphasize their long relationship with a brand but express concern that its image will be tarnished

Reclamation

​________ is the coping strategy used by consumers who go out of their way to emphasize their long relationship with the brand and express concern that its image will be tarnished.

Reclamation

The laundry detergent Cheer was once advertised as​ "all-tempa-Cheer," with the promise that it was effective regardless of water temperature.​ Today, its ads promote it for its​ color-safe properties. Which strategy was involved in developing the​ brand's new​ personality?

Repositioning

How does the lexicographic rule work?

Select the brand that is the best on the most important attribute

The passage of individuals from one social class to another

Social mobility

A habitual decision; an automatic choice such as when an inventory level reaches a preestablished reorder point.

Straight rebuy.

Young teenage girls are very heavy users of makeup​ (especially eye​ shadow). Though the size of this market is smaller than the larger adult​ market, marketers have learned that the consumption pattern is very heavy and these young women experiment with many varieties of products. This market most closely resembles which of the following​ principles?

The 80/20 principle

Bounded rationality refers to...

The satisficing approach to decisionmaking

(T/F) Brands have personalities.

True

(T/F) It is possible to use psychographics to identify distinct segments even for mundane products such as soap

True

(T/F) People tend to hate losing things more than they like getting things.

True

Consumer researchers have adapted some of Sigmund​ Freud's ideas. In​ particular, his work highlights the potential importance of​ ________ that​ influence(s) our purchases.

Unconscious motives

This is the person who actually consumes the product or service.

User

This type of DM involves assigning a relative importance to each attribute and weighting each one, then finding the sum.

Weighted additive rule

Shirley buys a genuine mink fur and then sees a woman walking on Worth Avenue with a faux fur. Shirley decides to disguise her genuine fur because she believes that truly​ high-status people do not need to display expensive​ logos, whereas those who do demonstrate that they belong to a lower status. Marketers would describe this coping strategy as​ ________.

abranding

Old money families tend to live largely on inherited funds and following the Great Depression of the​ 1930s, they​ ______________.

became more discreet about exhibiting their wealth

Our confidence in our​ future, as well as in the overall​ economy, determines how freely we spend our money and the types of products we buy. The field of​ ________ studies how consumers decide what to do with their money.

behavioral economics

This field focuses on the effects of psychological and social factors on the economic decisions we make (many of which are irrational)

behavioral economics

According to the VAL​ system, consumers that have strong principles and favor brands are considered​ ________.

believers

_________ is repeat purchasing behavior due to a conscious decision to continue buying that brand

brand loyalty

The Pillsbury Doughboy and the Jolly Green Giant are examples of​ ________.

brand personalities

When a person flaunts his status by deliberately using up valuable​ resources, marketers call this​ ________.

conspicuous consumption

Prioritizing consumption activities that use up as many resources as possible in nonconstructive pursuits

conspicuous waste

​________ is the state of mind consumers have about their own personal situation. This state of mind as well as their feelings about their overall economic prospects help to determine whether they will purchase goods and​ services, take on​ debt, or save their money.

consumer confidence

The famous psychologist Sigmund Freud proposed that much of​ one's adult personality stems from a fundamental conflict between a​ person's ________________ and the necessity to function as a responsible member of society.

desire to gratify his or her physical needs

We need both social class and income data to predict purchase of...

expensive, symbolic products

When consumers​ ________, they reduce the amount they​ save, they take on more​ debt, and they splurge on discretionary items.

feel optimistic about the future

If a person who bought the real thing sees imitations of their prized handbags or watches parading in​ public, they can respond in a number of ways. One approach is to discontinue using the brand because they​ don't want to be mislabeled as a​ lesser-status person who purchases counterfeit brands. Which term do researchers use for this consumer​ reaction?

flight

With the elimination-by-aspects rule, the buyer evaluates brands on the most important attribute by...

imposing specific cutoffs on the most important attribute

___________ is a better predictor of major expenditures that do not have status or symbolic aspects (like major appliances)

income

This occurs when consumers purchase familiar brands over and over because it's simply less effort to do so

inertia

What are two (very separate) explanations for a buyer who purchases the same brand again and again?

inertia or brand loyalty

If a consumer simply selects the brand that is the best on the most important attribute, they are using the...

lexicographic rule

People with incomes high enough to purchase luxury items, at least on a small scale

mass class

This situation involves limited DM; it occurs when an organization wants to repurchase a product or service but also make minor changes

modified rebuy

Bill Gates and Mark Zuckerberg are individuals who recently achieved their wealth and who​ don't have the benefit of years of training to learn how to spend it. Market researchers would use the term​ ________ to describe these consumers.

noveau riche

A deliberate change by an organization that intends to modify behavior

nudge

Many social scientists consider ___________ the best indicator of social class

occupation

Our tendency to define people to a great extent by what they do for a living is called...

occupational prestige

In the last few​ years, the label​ ________ entered our​ nation's vocabulary, beginning with the Occupy Wall Street movement where we saw protesters camping out in cities across the United States.

one percenter

A person's unique psychological makeup and how it consistently influences the way a person responds to his or her environment.

personality

The concept of ​________ refers to a​ person's unique psychological makeup and how it consistently influences the way a person responds to his or her environment.

personality

Marketing strategies based on personality differences have met with mixed​ success, partly because of the way researchers have measured and applied these differences in​ ________ to consumption contexts.

personality traits

Citigroup strategists coined the term ​________ to describe an economy​ that's driven by a fairly small number of rich people.

plutonomy

Cues in the environment that make us more likely to react in a certain way even though we're unaware of the influences

priming

When the ego tries to balance opposing​ forces, it uses the​ ________.

reality principle

A range of factors influence the overall​ ________ including individual​ consumers' pessimism or optimism about their personal​ circumstances, such as a sudden increase in personal wealth as the result of an inheritance and global events such as the Great Recession.

savings rate

___________ is a better predictor of purchases that have symbolic aspects but low to moderate prices, such as cosmetics or liquor.

social class

Many of the noveau rich suffer from..

status anxiety

The nouveau riche group of consumers monitor the cultural environment to ensure that they do the​ "right" thing, wear the​ "right" clothes, get seen at the​ "right" places, use the​ "right" caterer, and so on. They suffer from​ ________.

status anxiety

Market researchers use the term​ _____ to describe products that are purchased not for the enjoyment of the item​ itself, but rather to let others know that the​ purchaser/owner can afford it.

status symbols

An advertisement emphasizes that if a consumer uses a certain​ deodorant, he or she will not offend other people and will not cause problems in the workplace because of​ "bad body​ odor." What part of the Freudian system is this ad appealing​ to?

superego

The​ ________ is the counterweight to the id. This system is essentially the​ person's conscience. It internalizes​ society's rules​ (especially as parents teach them to​ us) and tries to prevent the id from seeking selfish gratification.

superego

Jim sees himself as being​ confident, powerful, and heroic. According to the BrandAsset Archetypes model developed by ad agency Young​ & Rubicam, Jim would be classified as a​ ________.

warrior

According to this​ chapter, marketers segment consumers based on contemporary psychographic​ research, which includes categories of variables such as​ ______________.

​activities, interests, and opinions