Terms Consumer behavior
Chapter 14 Describe the impact of purchase involvement on the decision process Topic: Consumer Decision Process and Problem Recognition Topic: Types of Consumer Decisions Topic: Nominal Decision Making Topic: Limited Decision Making Topic: Extended Decision Making
As purchase involvement increases, decision making becomes more extensive and complex. Nominal decisions: lowest level of purchase involvement; a problem is recognized, long term memory provides a preferred brand, brand is purchased, limited postpurchase evaluation occurs. As one moves from limited decision making to extended decision making, info searches increase, alternative evaluation becomes more extensive and complex, and postpurchase evaluation becomes more thorough.
15 Discuss the major cost-benefit factors driving the amount of external search Topic: Consumer Characteristics Topic: Situation Characteristics
Explicit external information search after problem recognition is often limited. It is suggested that consumers should generally engage in relatively extensive external search prior to purchase in order to reap the benefits of the purchase (such as higher brand quality or price). However the search isn't free: consumers give up time, money, and energy, as well as time spent away from desirable activities . It's recommended that consumers should only spend the amount of time searching that equals the expected benefit. Aspects that affect the perceived costs/ benefits: market characteristics (e.g. number of brands), product characteristics (price), consumer characteristics (prior search and learning), and situational characteristics (time availability).
18 Define and discuss post-purchase dissonance Topic: Postpurchase Dissonance
Is doubt or regret about a purchase (buyer's remorse?)
14 Explain problem recognition and how it fits into the consumer decision process Topic: The Nature of Problem Recognition
Problem recognition involves the existence of a discrepancy between the consumer's desired state (what the consumer would like) and the actual state (what the consumer perceives as already existing). Both are influenced by the consumer's lifestyle and current situation.
15 Summarize the marketing strategies based on information search patterns Topic: Marketing Strategies Based on Information Search Patterns Table 15-3 Topic: Intercept Strategy
Sound marketing strategy takes into account the nature of information search engaged in by the target market. The level of search and the brand's position in or out of the evoked set are two key dimensions. Based on these two dimensions, 6 potential information strategies are suggested: 1) maintenance 2) disrupt 3) capture 4)intercept 5)preference and 6)acceptance
16 Summarize the types of choice processes consumers engage in Topic: Types of Consumer Choice Processes
affective choice tends to be more holistic in nature. the brand is not decomposed into distinct components, each of which is evaluated separately from the whole. decisions based on affect use how do i feel about it heuristic or decision rule and tend to occur in response to consummatory motives. attitude based choice involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute by attribute comparisons are made at the time of choice. lower purchase involvement, scarce information, and certain situational factors such as time pressure increase the likelihood of attitude based choice. attribute based choice requires the knowledge of specific attributes at the time the choice is made, and it involves attribute by attribute comparisons across brands. this is a much more effortful and time consuming process than the global comparisons made when affective and attitude based choice is involved. it also tends to produce a more nearly optimal decision. higher purchase involvement, easily accessible brand attribute information, and situational factors such as lower time pressure increased the likelihood of attribute based choice.
18 Explain the determinants and outcomes of satisfaction and dissatisfaction Topic: The Evaluation Process Topic: Dissatisfaction Responses
consumer perceptions regarding satisfaction and dissatisfaction are a function of a comparison process
9 Explain the types of memory and memory's role in learning Topic: Short-Term Memory Topic: Long-Term Memory
memory is the result of learning, which involves information processing. most commonly, information goes directly into short term memory for processing, where two basic activities occur- maintenance rehearsal and elaborative activities. maintenance rehearsal is the continual repetition of a piece of information in order to hold it in current memory. long term memory is information from previous information processing that has been stored for future use. long term memory undergoes continual restructuring as new information is acquired. information is stored in long term memory in associative networks, or schemas. consumers often organize information in long term memory about brands in the form of brand schemas. these schemas represent the brands image in terms of key attributes, feelings, experiences and so on
Chapter 16 Discuss how actual consumer choice often differs from rational choice theory Topic: Alternative Evaluation and Selection
rational choice theory assumes that 1.) consumers seek one optimal solution to a problem and choose on that basis 2.) consumers have the skill and motivation to find the optimal solution and 3.) the optimal choice does not change as a function of the situation. however, all these assumptions have been shown to be incorrect for at least some consumer decisions. reasons include that consumers have alternative metagoals, consumers are subject to bounded rationality, and situations actually influence consumer perceptions of the optimal choice
15 summarize the five decision rules for attribute-based choice and their strategic relevance Topic: Conjunctive Decision Rule Topic: Disjunctive Decision Rule Topic: Elimination-by-Aspects Rule Topic: Lexicographic Decision Rule Topic: Compensatory Decision Rule
when consumers judge alternative brands on several evaluative criteria, they must have some method to select one brand from the various choices. decision rules serve this function. a decision rule specifies how a consumer compares two or more brands. five commonly used decision rules are disjunctive, conjunctive, lexicographic, elimination by aspects, and compensatory. the decision rules work best with functional products and cognitive decisions. marketing managers must be aware of the decision rules used by the target market because different decision rules require different marketing strategies
16 Describe the role of evaluative criteria in consumer judgment and marketing strategy Topic: Accuracy of Individual Judgments Topic: Evaluative Criteria, Individual Judgments, and Marketing Strategy
-Evaluative criteria such as price, size, & color can be judged easily and accurately by consumers. -Other criteria, such as quality, durability, and health benefits, are much more difficult to judge. -In such cases, consumers often use price, brand name, or some other variable as a surrogate indicator of quality.
15 Discuss available information sources and the role of Internet and mobile search Topic: Sources of Information Topic: Internet Search
Consumer internal information (info stored in memory) may have been actively acquired in previous searches and experiences, or acquired passively through low-involvement learning. Consumers can seek info from 1) personal sources (friends and family) 2) independent sources (consumer groups, paid professionals, etc.) 3) marketing sources (sales personnel and ads) or 4) experiential sources (direct inspection or trials). Each of these can be assessed through Internet or mobile devices and these are giving consumers the ability to seek more information prior to purchase.
Chapter 18 Describe the various post-purchase processes engaged in by consumers Topic: Postpurchase Processes, Customer Satisfaction, and Customer Commitment
Following a major purchase, consumers are likely to experience some postpurchase dissonance. With or without dissonance, product use and package disposition generally occurs. This is normally followed by product disposition. Evaluation of the purchase experience, the product, and disposition of the product and package occurs simultaneously with and following each of these events. This evaluation produces some level of satisfaction that in turn causes brand switching, increased product/brand use, repeat purchases, or committed customers.
15 Summarize the types of information consumers search for Topic: Evaluative Criteria
Info can be sought on: 1) the appropriate evaluative criteria for the solution 2) the existence of various alternative solutions, 3) the performance of each alternative solution on each evaluative criterion.
Chapter 15 Discuss internal and external information search and their role in different decision types Topic: The Nature of Information Search
Internal search: accessing relevant information from long-term memory to be used to determine if a satisfactory solution is known, what the characteristics of potential solutions are, what are appropriate ways to compare the solutions, etc. External search: (when internal cannot find a solution) can involve independent sources, personal sources, marketer-based info, and product experience. Internal info tends to dominate in nominal decision making whereas external info tends to dominate in extended decision making.
18 Describe the relationship between satisfaction; repeat purchase; and customer commitment Topic: Repeat Purchasers, Committed Customers, and Profits
Satisfaction results in a number of positive outcomes: repeat purchases, positive word of mouth, and in some cases loyalty. Simply meeting expectations is not typically enough to generate the psychological commitment associated with loyalty. Repeat purchasers are not necessarily loyal customers as well. Repeat purchases can occur out of habit and thus the consumers are vulnerable to competitors stealing them away. Brand loyalty or commitment is defined as a willingness to repurchase coupled with a psychological commitment to the brand. This is critical to marketers and they are examining ways to create e-satisfaction and e-loyalty. Relationship marketing and loyalty programs are strategic efforts that can be used to bolster satisfaction, repeat purchases, and loyalty.
8 Explain attention; the factors that affect it; and the resulting marketing implications Topic: Stimulus Factors Topic: Individual Factors Topic: Nonfocused Attention
attention occurs when the stimulus activates one or more of the sensory receptors and the resulting sensations go into the brain for processing. people selectively attend to stimuli as a function of stimulus, individual, and situational factors. stimulus factors are physical characteristics of the stimulus itself, such as contrast, size, intensity, attractiveness, color, movement, position, isolation, format, and information quantity. individual factors are characteristics of the individual, such as motivation and ability. situational factors include stimuli in the environment other than the focal stimulus and temporary characteristics of the individual that are induced by the environment. clutter and program involvement are situational factors of particular interests to marketers. marketers can utilize all these factors to develop stimuli that attract consumer attention in todays cluttered environment. nonfocused attention occurs when a person takes in information without deliberate effort. hemispheric lateralization is a term applied to activities that take place on each side of the brain. the left side of the brain is concerned primarily with those activities typically called rational thought and the ability to be conscious and report what is happening. the right side of the brain deals with pictorial, geometric, timeless, and nonverbal information without the individuals being able to verbally report it. a message presented so fast or so softly or so masked by other messages that one is not aware of seeing or hearing it is called subliminal message. subliminal messages have generated a great deal of interest but are not generally thought to affect brand choice or other aspects of consumer behavior in a meaningful way.
10 Discuss attitude change strategies associated with each attitude component Topic: Change the Affective Component
attitude change strategies can focus on affect, behavior, cognition, or some combination. attempts to change affect generally rely on classical conditioning. change strategies focusing on behavior rely more on operant conditioning. changing cognitions usually involves information processing and cognitive learning. it can involve changing beliefs about such things as a brands attribute levels, shifting the importance of a given attribute, adding beliefs about new attributes, or changing the perceived ideal point for a specific attribute or for the brand concept level
Chapter 11 Summarize the three components of attitudes Topic: Cognitive Component Topic: Component Consistency
attitudes have three components: cognitive, affective, and behavioral. the cognitive component consists of the individuals beliefs or knowledge about the object. it is generally assessed by using a version of the multiattribute attitude model. feelings or emotional reactions to an object represents the affective component of the attitude and can be assessed in various ways including AdSAM. the behavioral intentions with respect to specific attributes of the object or the overall object. in general, all three components tend to be consistent with each other. however a number of factors can create inconsistencies, and marketers must understand and incorporate these in their marketing research and communication strategies.
9 Understand the application of learning to brand positioning; equity; and leverage Topic: Product Positioning Topic: Brand Equity and Brand Image
brand image, a market segment or individual consumers schematic memory of a brand, is a major focus of marketing activity. product positioning is a decision by a marketer to attempt to attain a defined and differentiated brand image, generally in relation to specific competitors. a brand image that matches a target markets needs and desires will be valued by that market segment. such a brand is said to have brand equity because consumers respond favorably toward it in the market. in addition, these consumers may be willing to assume that other products with the same brand name will have some of the same features, which relates to how consumers learn to generalize from one stimulus to another. introducing new products under the same name as an existing product is referred to as brand leverage or brand extension.
9 Distinguish the different processes underlying high- and low-involvement learning Topic: Learning Under High and Low Involvement Topic: Conditioning Topic: Cognitive Learning
consumers learn in various ways, which can be broadly classified into high versus low involvement learning. high involvement learning occurs when an individual is motivated to acquire the information. low involvement learning occurs when an individual is paying only limited or indirect attention to an advertisement or other message. low involvement learning tends to be limited as a result of a lack of elaborative activities. learning can also be classified as either conditioned or cognitive. there are two forms of conditioned learning- classical and operant. classical conditioning attempts to create an association between a stimulus (ex. brand name) and some response (ex. behavior or feeling) and is generally low involvement in nature. operant conditioning attempts to create an association between a response (ex. buying a brand) and some outcome (ex. satisfaction) that serves to reinforce and is generally high involvement in nature. the cognitive approach to learning encompasses the mental activities of humans as they work to solve problems, cope with complex situations, or function effectively in their environment. cognitive learning includes iconic role learning (generally low involvement), vicarious learning/modeling (low or high involvement), and analytical reasoning (generally high involvement). stimulus generalization is one way of transferring learning by generalizing from one stimulus situation to other, similar ones. stimulus discrimination refers to the opposite process of learning-responding differently to somewhat similar stimuli. the ability of consumers to differentiate and generalize is critical for successful brand positioning and leverage
9 Distinguish the different processes underlying high- and low-involvement learning Topic: Cognitive Learning
consumers learn in various ways, which can be broadly classified into high versus low involvement learning. high involvement learning occurs when an individual is motivated to acquire the information. low involvement learning occurs when an individual is paying only limited or indirect attention to an advertisement or other message. low involvement learning tends to be limited as a result of a lack of elaborative activities. learning can also be classified as either conditioned or cognitive. there are two forms of conditioned learning- classical and operant. classical conditioning attempts to create an association between a stimulus (ex. brand name) and some response (ex. behavior or feeling) and is generally low involvement in nature. operant conditioning attempts to create an association between a response (ex. buying a brand) and some outcome (ex. satisfaction) that serves to reinforce and is generally high involvement in nature. the cognitive approach to learning encompasses the mental activities of humans as they work to solve problems, cope with complex situations, or function effectively in their environment. cognitive learning includes iconic role learning (generally low involvement), vicarious learning/modeling (low or high involvement), and analytical reasoning (generally high involvement). stimulus generalization is one way of transferring learning by generalizing from one stimulus situation to other, similar ones. stimulus discrimination refers to the opposite process of learning-responding differently to somewhat similar stimuli. the ability of consumers to differentiate and generalize is critical for successful brand positioning and leverage
18 Summarize disposition options and their relevance to marketers and public policy Topic: Product Disposition and Marketing Strategy
disposition of the product or its package may occur before, during or after product use. understanding disposition behavior is important to marketing managers because of the ecological concerns of many consumers, the costs and scarcity of raw materials, and the activities of the federal and state legislatures and regulatory agencies
16 Explain evaluative criteria and their measurement Topic: Evaluative Criteria Topic: Nature of Evaluative Criteria Topic: Measurement of Evaluative Criteria
evaluative criteria are the various features or benefits a consumer looks for in response to a specific problem. they are performance levels or characteristics consumers use to compare different brands in view of their particular consumption problem. the measurement of 1.) which evaluative criteria are used by the consumer 2.) how to consumer perceives the various alternatives on each criterion, and 3.) the relative importance of each criterion is a critical first step in utilizing evaluative criteria to develop marketing strategy. the measurement task is not easy although a number of techniques are available, including perceptual mapping, the constant sum scale and conjoint analysis.
8 Explain exposure; the types of exposure; and the resulting marketing implications Topic: Exposure Topic: Selective Exposure Topic: Voluntary Exposure
exposure occurs when a stimulus comes within range of an individuals primary sensory receptors. people are exposed to only a small fraction of the available stimuli. and when consumers actively avoid certain marketing stimuli, this is referred to as selective exposure. selective exposure in the advertising area is termed ad avoidance. marketers try to overcome avoidance by using tactics such as a product placement and hybrid ads. it should be noted, however, that consumers seek out some marketing stimuli voluntarily. examples include super bowl ads, ads that go viral online, and company based e-mails that consumers choose to receive through permission based marketing
15 Describe the categories of decision alternatives relating to the evoked set Topic: Appropriate Alternatives
from the set of all possible alternatives that could solve a consumer problem, there are the following categories of decision alternatives. there are alternatives that consumers are aware of (awareness set), alternatives that consumers are aware of and view in a neutral manner (inert set), alternatives that consumers are aware of and view negatively (inept set), and alternatives that consumers are aware of and view positively (evoked set). the evoked set (also called the consideration set) represents the alternatives that the consumer seeks additional information on during the remaining internal and external search process. therefore, marketers are first concerned with making sure their brand is in the awareness set. but, since awareness does not equal consideration and since consideration is necessary for a chance at being chosen, marketers are also very concerned about moving their brands into consumer evoked sets and must engage in persuasive messaging and other strategies to do so
8 Explain interpretation; the factors that affect it; and the resulting marketing implications Topic: Interpretation Topic: Situational Characteristics Topic: Stimulus Characteristics Topic: Consumer Inferences
interpretation is the assignment of meaning to stimuli that have been attended to. interpretation tends to be relative rather than absolute (perceptual relativity) and subjective rather than objective. two general forms of interpretation are cognitive and affective. cognitive interpretation appears to involve a process whereby new stimuli are placed into existing categories of meaning. affective interpretation is the emotional or feeling response triggered by stimulus. interpretation is largely a function of individual traits, learning, and expectations that are triggered by the stimulus and moderated by the situation. stimulus characteristics are critical. stimulus organization is the physical arrangement of the stimulus objects and related to the perceptual principals of proximity, closure, and figure ground. marketers can use these principals to design effective communication strategies. stimulus change and consumer reactions to it are also of concern and have consequences in relation to such strategies as "weighting out," whereby marketers attempt to reduce the quantity offered in increments that consumers wont detect. interpretation often involves consumer inferences. inferences go beyond what is directly stated or presented and help explain consumer use of quality signals (ex. higher price means higher quality), their interpretation of images, and how they deal with missing information. inferences also help explain how consumers can be misled by marketing messages even when those messages are literally true.
Chapter 9 Describe the nature of learning and memory Topic: Nature of Learning and Memory
learning is any change in the content or organization of long term memory or behavior and is the result of information processing. information processing is a series of activities by which stimuli are perceived, transformed into information, and stored. the four activities in the series are exposure, attention, interpretation and memory. thus memory is both an outcome of learning and a part of the process of learning. for example, when interpreting the price of a brand, consumers may retrieve information about competitor prices (prior learning) and once the comparison is made, store their price perception about the new brand in memory (new learning)
8 Discuss how perception can enhance strategies for retailing; branding; advertising; and packaging Topic: Retail Strategy Topic: Brand Name and Logo Development
marketers use their knowledge of perception to enhance strategies in a number of areas including retailing, branding, advertising, and packaging. for retailing, issues surrounding store and shelf location are important determinants of perception. for branding, issues surrounding the selection of brand names, extensions, and appropriate logos have important implications for perception. advertising strategies and media selection are heavily influenced by considering factors that enhance exposure and attention. packaging is a functional aspect of products, but also perceptual in that it can capture consumers attention and influence their brand interpretations.
9 Summarize the factors affecting information retrieval from memory Topic: Strength of Learning Topic: Memory Interference
once learned, information is retrieved from long term memory for use in evaluations and decisions. retrieval failures or extinction of a learned response represents a reduction in marketing effectiveness. retrieval depends on strength of initial learning, memory interference, and the response environment. strength of learning depends on six basic factors: importance, message involvement, reinforcement, mood, repetition, and dual coding. importance refers to the value that the consumer places on the information to be learned-greater importance increases learning and retrieval. reinforcement is anything that increases the likelihood that a response will be repeated in the future-the greater the reinforcement, the greater the learning and retrieval. mood is the temporary mental state or feeling of the consumer. learning and memory appear to be greater in positive mood conditions. repetition refers to the number of times that we are exposed to the information or that we engage in a behavior. repetition increases learning and memory but can also lead to wearout. dual coding involves creating multiple complementary pathways to a concept in long term memory. dual coding increases learning and retrieval. memory interference occurs when consumers have difficulty retrieving a specific piece of information because other related information in memory gets in the way. a common form of memory interference is due to competitive advertising. competitive interference increases with increased advertising clutter. but it can be reduced by avoiding competitive clutter, strengthening learning, reducing similarity to competitor ads, and providing retrieval cues. the response environment can also be critical to retrieval. matching the response environment to the learning environment, or matching the learning environment to the response environment can enhance the ease and likelihood of retrieval.
8 Chapter 8 Describe the nature of perception and its relationship to consumer memory and decisions Topic: The Nature of Perception
perception consists of those activities by which an individual acquires and assigns meaning to stimuli. perception occurs in 3 stages (namely exposure, attention, and interpretation). if and when perception occurs, the meaning derived from a stimulus is typically transferred to memory where it is stored and can be later retrieved when consumers are making purchase decisions
10 Describe the elaboration likelihood model of persuasion Topic: Individual and Situational Characteristics that Influence Attitude Change
the elaboration likelihood model is a theory about how attitudes are formed and changed under varying conditions of involvement. the elm suggests different communications strategies depending on involvement. in general, detailed factual information (central cues) is effective in high involvement, central route situations. low involvement, peripheral route situations generally require limited information and instead rely on simple affective and cognitive cues such as pictures, music, and characteristics of people in the ad (peripheral cues). the elm has found general support however what is perceived as relevant can depend on the situation (ex. attractive model and hair may be "central" in shampoo as but "peripheral" in car ad) and the nature of competition can bolster the role of peripheral cues even under high involvement
10 Describe the role of message source; appeal; and structure on attitudes Topic: Source Characteristics Topic: Appeal Characteristics Topic: Message Structure Characteristics
three communication characteristics are important to attitudes. they are source characteristics, message appeal characteristics, and message structure characteristics. in terms of source characteristics, source credibility is composed of two dimensions: trustworthiness and expertise. persuasion is much easier when the message source is viewed as highly credible. celebrities are widely used as product or company spokespersons. they are most effective when their image matches the personality of the product and the actual or desired self concept of the target market. in terms of message appeals, the appeals used to change attitudes are important and are varied. fear appeals use threat of negative consequences if attitudes or behaviors are not altered. humorous appeals can also be effective in influencing attitudes. however, the humorous message must remained focused on the brand or main selling point to be maximally effective. comparative ads produce mixed results. they are most effective for unknown brands having a strong functional advantage. the decisions to use a value expressive or utilitarian appeal depends on whether the brand fills value expressive or utilitarian needs. however, this is complicated when the brand fills both types of needs. emotional appeals have been found to have a strong effect on the attitudes toward both the ad and the product. message structure has three facets: two sided (versus one sided) messages can increase trust and message acceptance, but effects depend on characteristics of the individual and situation. message framing effects- presenting equivalent value outcomes either in positive (positive framing) or negative (negative framing) terms-depend on type of frame. positive attribute framing tends to work best whereas negative goal framing tends to work best. nonverbal aspects of the ad, such as pictures, surrealism, and music, also affect attitudes
