MKTG 331 exam 3

________ argue(s) that each of us has several "selves that relate to groups." A) Cultural pressures B) Social loafing C) Social identity theory D) Membership groups

C

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

B

What are digital opinion leaders?

Power users (online opinion leaders) Influence impressions (brand specific online activity) Mass connectors (6.2% users -> 80% influence impressions)

What are groups?

We belong to groups. We crave acceptance and desire to fit in.

What is Gemba?

in Japanese, it means "the one true source of information." Going to the source of the facts.

How does social class help marketers predict consumer behavior?

-Social class is a better predictor of lower to moderately priced symbolic purchases (e.g., football tickets) -Income is better predictor of major non status/non-symbolic expenditures (e.g., food) -Need both social class and income to predict expensive, symbolic products (e.g., sports car)

A ________ orientation dimension distinguishes between people who prefer to do one thing at a time and those who have multitasking time styles. A) social B) polychronic C) planning D) temporal

B

What is ethnic segmentation?

the differential economic and social resource accumulation of social groups

What is a social class?

the overall rank of people in a society. People who belong to the same social class have approximately equal social standing in the community.

What is decision-making?

the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

How do marketers measure social class?

Education, occupation, and income

What are the steps in the decision-making process?

-Step 1: Problem recognition Occurs when the consumer sees a difference between current state and ideal state E.g., Folgers Coffee's toleratemornings.com Brands putting things like bad hair, gross countertops, or bad things happening to get people to realize the problem to get their product to be the thing that helps the problem -Step 2: Information search •Pre Purchase or ongoing search, Internal or external search, Online search and cybermediaries -Step 3: Evaluation of alternatives Consumers are moving outside the marketing funnel by changing the way they research and buy products. Here's how marketers should respond to the new customer journey -Step 4: Product choice Feature creep (complexity of features; e.g., a high-tech laptop, a D-SLR camera & lenses) - Step 5: Post Purchase evaluation Neuromarketing (uses functional magnetic resonance imaging or fMRI, to look at how our brains respond to marketing messages and product design features)

What are the tree types of decision-making? Give examples of each.

1. Cognitive Deliberate, rational, sequential Steps to buying a house; need a lot of thinking 2. Habitual Behavioral, unconscious, automatic Looking for brands 3. Affective Emotional, instantaneous Framing effect When one carton says "20% fat" and another one says " 80% fat free" we will pick the second one

What are the five characteristics of decision-making? Give examples of each of these five characteristics

1. Controlled (direct awareness, use of STM, careful, conscious evaluations), e.g., moving to a new town. 2. Effortful (information search & evaluation leads to energy/resource expenditure), e.g., subscription to Consumer Reports, paid membership on an informative blog. 3. Objective (based on object-related information), e.g., 12 oz of Cherry Coke has 150 calories. 4. Adaptive (a mental process of effectively reacting to a change in situation/stimuli), e.g., now that I am type-2 diabetic, Cherry Coke is not for me. 5. Scarce (STM capacity and duration are limited, leading to a perpetual bottleneck), e.g., infomercial ads elicit buying behavior past midnight.

What are the different types of heuristics?

1. Covariation (what is observed = all of the product; e.g., we judge a used car by how clean it is and how good it smells) 2. Country of Origin (COO) Effect (where a product/service/brand comes from determines its quality; e.g., we equate French wine to good wine, touch of modern commercial) ----Dark sides of COO: Ethnocentrism (belief that foreign products are inferior vis-à-vis local) Xenocentrism (belief that foreign products are superior vis-à-vis local) Familiar Brand Names Higher Prices

What is income-based marketing and luxury goods?

1. Luxury is functional: lasting, enduring value; logical, not emotional (middle-aged). 2. Luxury is a reward: the high-end automobile and gated community home crowd; signal: "I've made it!" (younger than functional, older than indulgence). 3. Luxury is indulgence: extremely lavish and self-indulgent; pay premium to express individuality; most emotional and impulsive (youngest, mostly males).

Compare and contrast membership, avoidance, and aspirational groups.

1. Membership reference groups People the consumer actually knows Advertisers use "ordinary people" 2. Aspirational reference groups People the consumer doesn't know but admire Advertisers use celebrity spokespeople 3. Avoidance / dissociative groups: Motivation to distance oneself fro other people or groups Ex: boomers, a political party, atheists

What are its components?

1. Occupational prestige Is stable over time and similar across cultures Single best indicator of social class 2. Income Wealth not distributed evenly across classes (top fifth controls 75% of all assets) How money is spent is more influential on class than income

What are the six sources of social power?

1. Referent power: Someone consumers admire Ex: zach and HOG, RUB's, Lady Gaga and polaroid, kim K and designer clothing, brad pitt and UNICEF Ex: in class, the diet coke ad about mom's already doing everything and the "listen to your elders ad Ex: slido question: jordyn wanting to be in the sorority and being like them because she admires them 2. Information power: Someone who knows something consumers would like to know ex: editors of specialty magazines, sports bookies, astrologers, fortune tellers, religious leaders Ex: when you buy a sports car magazines 3. Legitimate power Power by virtue of social agreements Ex: police officers, soldiers, professors 4. Expert power Power by virtue of knowledge about content area Ex: restaurants and movie critics, stephen hawking endorsing us robotics, doctors, scientists Ex: aveeno brand, a female scientists talks about the new aveeno product and talks about whats in the product 5. Reward power A person or group with the means to provide reinforcement Ex: pay raises, linked in recommendations 6. Coercive power Social or physical intimidation Ex: aggressive sales people, Walmart's power over suppliers, telemarketers

What are temporal factors/influences in consumer behavior?

1. Social -- individuals' categorization of time as either "time for me" or "time with/for others." 2. Temporal Orientation -- depicts the relative significance individuals attach to past, present, or future. 3. Planning Orientation -- alludes to different time management styles varying on a continuum from analytic to spontaneous. 4. Polychronic -- distinguishes between people who prefer to do one thing at a time (monochronic) from those who multitask (polychronic).

What are the three types of opinion leaders? Give examples.

1. The market maven Actively involved in transmitting marketplace information of all types. Into shopping and aware of what's happening in the marketplace. Overall knowledge of how and where to get products. E.g Vaseline found an influence in Kodiak, Alaska. 2. The connector They know people. They're all about connecting with people. E.g., Oprah Winfrey and her book club; your friend that has thousands of "friends" and connections on social media. 3. The salesperson They take an idea, make it sticky and accessible, and position it to get a tribe behind it. They are storytellers. E.g., door-to-door salesperson with the Kirby Co. (vacuum cleaners).

According to ________, utility is defined in terms of gains and losses. A) prospect theory B) heuristics C) hyperopia D) Zipf's law

A

Consumers who refuse to sacrifice style, but achieve it on a budget are called ________. A) frugalists B) the mass class C) the nouveau rich D) social consumers

A

Home shopping parties may activate ________, in which the individual at the party may get so caught up in the party spirit that he or she orders products that would normally not be purchased. A) deindividuation B) homophily C) surrogate shift D) principle of least interest

A

Pavel is an inventor. He read that there were several million people who could not sleep at night until they looked under the bed. He invented a light that could be put under the bed and went on automatically when someone looked there. Pavel's product is designed to help people perform a ________. A) ritual B) symbolic exchange C) convention D) rite of passage

A

Phillipe is a member of a small Harley-Davidson motorcycle club. Members meet once a week to ride and talk about their bikes. This club might exert a ________ influence on Phillipe as he decides which model of bike he buys for his girlfriend. A) referent power B) normative C) coercive power D) legitimate power

A

Trisha grew up in a drug-ridden inner city neighborhood. Through sheer determination and intelligence, Trisha is now a medical doctor teaching on the staff of a large university hospital. Trisha is proud of what she has accomplished, but sometimes she feels stressed and uncertain of who she really is. The concept of ________ assesses the impact of such inconsistencies. A) status crystallization B) homogamy C) habitus D) invidious distinction

A

Two factors determine how a couple spends time and money. One of these factors is whether the couple has children. What is the other factor? A) whether the woman works B) whether they have jobs that require extensive travel C) whether they have extended family members living with them D) whether they live in an urban or suburban setting

A

Which of the "Big Three" American subcultures makes up 13 percent of the population? A) African American B) Hispanic American C) Asian American D) Arab American

A

________ group members tend to be tightly knit, and they infer meaning that goes beyond the spoken word. A) High-context culture B) Low-context culture C) Mid-context culture D) Host culture

A

What is a brand community?

A group of consumers who share a set of social relationship based upon usage or interest in a product

What is opinion leadership?

A person whose opinions about something such as a product or issue have a big influence on the opinions of others. They are widely known and trusted. Therefore, they have the power to influence opinion and behavior. Companies try building partnerships with opinion leaders. E.g., a computer repair technician.

Movie and restaurant reviewers, magazine editors, retail buyers and DJ's are considered ________ because they filter information. A) laggards B) gatekeepers C) early adopters D) innovators

B

The pressure to conform that escalates as more and more group members give in is called ________. A) polarization B) bandwagon C) loafing D) homophily

B

Tomorrow, Janice will be attending a party with a buffet. In anticipation of splurging on delicious food, she is eating very little today. Janice is using a ________ to help her estimate consumption over time and regulate her behavior. A) constructive process B) mental budget C) diet D) cognitive process

B

Immigrants to the United States who exhibit ________ tend to live and shop in places separated from mainstream Anglo consumers. A) warming B) adaptation C) segregation D) movement

C

Margaret stayed on top of what was happening in the marketplace, but she was not necessarily the first to purchase items when they first came out. Margaret would be classified as a(n) ________. A) opinion leader B) innovator C) market maven D) market analyst

C

The first stage in the consumer decision-making process is ________. A) information search B) evaluation of alternatives C) problem recognition D) product choice

C

The perception of time is different in different cultures. It would likely be most accepted for employees to be paid by the hour in a culture with which of the following perceptions of time? A) river B) map C) pressure cooker D) mirror

C

When a Rolls-Royce, a Cartier diamond, and an Andy Warhol painting are bought and displayed as markers of social class, they are ________. A) social inhibitors B) social parameters C) status symbols D) psychological blocks

C

________ usually dictate what is right and wrong, acceptable or unacceptable. A) Myths B) Theories C) Norms D) Rituals

C

Amos always felt that it was unfair that society created artificial divisions that discouraged him from having friends from different social structures. Which of the following terms describes the process that Amos is having difficulty with? A) reference group affiliation B) bias C) social anxiety D) social stratification

D

If a consumer's ideal state is very near or identical to his or her actual state, which of the following best describes the type of problem recognition the consumer would most likely have? A) opportunity recognition B) need recognition C) search recognition D) no problem recognition

D

Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les' behavior best illustrates ________. A) loss aversion B) hyperopia C) risk positioning D) the sunk-cost fallacy

D

Which of the following is a new kind of avoidance group that has grown in popularity through the Web? A) virtual communities of consumption B) virtual worlds C) consumer tribes' D) anti-brand communities

D

What are some characteristics of an opinion leader?

Experts, Unbiased evaluation, Socially active, Similar to the consumer, Among the first to buy (innovators)

What are some problems associated with social class segmentation?

Ignores status inconsistencies, intergenerational mobility, subjective social class, consumers' aspirations to change class standing, the social status of working wives, and Non-standardized across countries and cultures

What is the key difference between inertia and brand loyalty?

Inertia exists when we buy a brand out of habit merely because it requires less effort. For brand loyalty to exist, a pattern of repeat purchase must be accompanied by an underlying positive attitude toward the brand.

What is household decision-making?

Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

What are subcultures? Give examples.

More specific identification and socialization for members. E.g., geographic regions, lifestyle groups, consumer groups, hackers, heavy metal enthusiasts, hipsters, Prof. Ross Haenfler's Goths, Gamers, Grrrls, Straight Edge (youth subcultures), Hardcore Punk, etc

Cultural appropriation

The unacknowledged or inappropriate adoption of the customs, practices, ideas of one people or society by members of another and typically more dominant people or society Ex: football teams in the US having 'redskins" as their mascot

What is habitual decision-making and heuristics?

We often rely on rules-of-thumb (heuristics) to make routine decisions. These are choices we make with little or no conscious effort. E.g., "How did that candy get in my shopping cart? Was I sleep-buying again??" ---Heuristics: Mental Shortcuts or Rules-of-Thumb

What is the difference between consensual and accommodative decision-making?

consensual- Those decisions for which members agree on the desired purchase, differing only in terms of how it will be achieved accommodative- they cannot agree on a purchase to satisfy the minimum expectations of all involved

Why is membership and a sense of belonging so vital in consumer behavior?

groups posses social power and influence our consumer decision

What is culture?

is the fundamental determinant of a person's wants and behaviors acquired through socialization processes with family and other key institutions. E.g., religion, nationality, sexual orientation, organizational culture, etc. it is the accumulation of shared meanings, rituals, norms, and traditions Culture is a society's personality

What is a culture production system?

is the set of individuals and organizations that create and market a cultural product. It has three major subsystems: Creative Managerial Communications

What do you understand by de-ethnicization?

occurs when a product formerly associated with a specific ethnic group is detached from its roots and is marketed to (and appeals to) other subcultures or groups. E.g., the bagel becomes mainstream, pizza, Taco Bell, yoga, Cinco de Mayo, St. Patrick's Day, etc.