BUSI 332 Chapter 13, BUSI 332 Chapter 14, BUSI 332 Chapter 15, BUSI 332 Chapter 16

switching

times when a consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion

consumers tend to make simple and good decisions because

too much variety actually contributes to feelings of discontent and unhappiness

financial switching costs

total ecnomic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice

Choice does not mean that a particular alternative will be chosen, as consumers may simply choose to delay a choice until a future date or to forgo a selection indefinitely

true

Companies spend a great deal of time and money on improving the objective quality of their products. These efforts are limited, however, by consuemr perceptions of quality

true

Complaining is a relatively mild way of coping with anger

true

Consumer behavior may be viewed as a subset of the human deviance topic

true

Consumer misbehavior not only results from negative behaviors, but can sometimes stem from the intention of doing good

true

Consumers are often able to make good choices when considering only a single attribute

true

Consumers most often infer the existence of underlying attributes through perceptual attributes

true

Disgusted customers don't usually complain, but just go away, which can be of harm to the company

true

Even though all types of functional costs can prevent switching, evidence suggests that relational batteries may be the most resistant to influence

true

Evidence suggests that the imposition of rent controls (restricting rent prices below market equilibrium price) actually increases homelessness in urban areas

true

For firms that perform compensation not as quickly, consumers may reduce their spending by a total of $1 million per year

true

For problems regarding piracy of movies, musics, games, if the motivation is primarily based on utilitarian values, consumers will feel less morally unethical

true

In 2013, IKEA faced potentially damaging negative publicity when a problem surfaced with one of its bestselling products - Swedish meatballs (contains horsemeat)

true

In the US, loyalty programs more often work by offering on-the-spot discounts on selected items

true

Levitt's work brought about a new perspective that argued that businesses should defined themselves in terms of the consumer needs that they satisfy rather than in terms of the products they make

true

Managers acknowledge that initiatives that increase customer satisfaction do not always improve top-line performance

true

Noncompensatory rules are also used in high-involvement (eg. buying cars)

true

One study indicated that over 80% of respondents who reported alcohol-impaired driving also reporte engaging in binge drinking behaviors

true

One study shows that when a shopper has a reversal in orientation from a browser to a buyer within a retail store, she becomes highly likely to tell others about the great experience

true

Research indicates that unexpected and novel names can lead to increased product preference and choice

true

Research shows that consumers can handle a surprisingly high number of comparisons before overload sets in. A study revealed that consumers can evaluate as many as 10 product alternatives and 15 attributes before overload occurs

true

Research shows that improvements in objective quality may take as many as six years to be fully recognized consumers

true

Research shows that over 20% of the comments about feedback are fake

true

The accuracy of a consumer's evaluation depends heavily on the quality of judgements that they make

true

The consumption of authentic things add value over the consumption of synthetic experiences, particularly when the consumption environment contains high degrees of symbolism or consumers are highly involved in some activity

true

The key difference between compulsive shopping and buying is the buying process itself

true

True consumer loyalty consists of both a pattern of repeated behavior as evidenced by high customer share and a strong feeling of attachment, dedication, and sense of identification with a brand

true

We distinguish misbehavior and problem behavior by looking at the issue of self-control

true

When competitive intensity is high and switching costs are low, company is vulnerable to consumers who will switch providers even when satisfied

true

When consumers think a refund is too difficult, but still think the refund is fair, procedural justice contributes to inequity, but distributive fairness contributes to equity, since the consumer believes the refund was just

true

When expectations are held with a strong degree of confidence, both disconfirmation and performance perceptions affect satisfaction

true

With low involvement, high expectations will be associated directly with increased dissatisfaction, and low expectations will be associated directly with increased dissatisfaction

true

antiloyal consumers often are former customers who switched and treat the former marketing firm as a jilted partner

true

as of mid-2014, thirteen US states prohibit all drivers from using handheld cell phones and while no states completely bans cell phone use

true

compulsive shoppers tend to focus on the mental highs associated with "the hunt" whereas compulsive buyers feel the need to buy

true

confirmatory bias is particularly present when consumers receive recommendations from the marketer, and return policies are lenient

true

consumers are not always rational when they are evaluating and choosing from possible solutions to a problem

true

consumers have gradually become less brand-loyal and more store-loyal

true

consumers in a good mood tend to have good evaluation even though the information about the product might not be a lot; consumers seek variety to combat the feeling of boredom

true

consumers often make judgments about features based on their perceived relationship with other features

true

dissonance is sometimes known as a buyer's regret

true

equity judgments, in particular perceptions of unfair treatment, are particularly prone to lead consumers to switch

true

estimates reveal that as many as 2 million consumers meet the criteria of pathological gambling and another four to six million could be considered problem gamblers

true

expectations can have a direct impact on satisfaction when the consumer has very little involvement

true

features are often referred as attributes

true

for functional types of services, such as banking, utilitarian value is more strongly related to customer share (and therefore preventing switching) than is hedonic value

true

for more experiential types of services, such as mall shopping, hedonic value is more strongly related to customer share

true

one study by Partnership for a Drug-free America revealed that nearly one in five teenagers report using prescription drugs to get high, and nearly one in ten report abusing cough medicine

true

perceptions are not always in line with reality. One issue that pertains to consumer judgments is the difference between objective quality and perceived quality

true

self-ascribed causes are referred to as internal attributions

true

the ability of consumers to make accurate judgments when evaluating alternatives is influenced by their ability to perceive differences in levels of stimuli between two options

true

waiting ranks second only to rude service when it comes to complaining behavior

true

when consumer purchases something, part of the cost is for liability exposure

true

When information is missing, consumers tend to weigh the criteria that are common to both alternatives quite heavily in the evaluation. They also tend to discount information that is missing for the option that performs better on the common criteria

true (eg. TV A is rated good, B is rated excellent, but B lacks warranty. Consumer still chooses B because of the rating)

consumers don't always reveal, or may not even know, the criteria that truly are determinant

true (eg. airline safety - hard to visualize - need data to make it as determinant)

the promotion and place elements of the marketing mix can also be questioned (Eg. consumers may question about tickets to major events being made available only in selected channels)

true (eg. an incident about Bruce Springsteen fans in 2009, 2012 Olympic games' ticket scandals)

the number of levels and details within each level is influenced by familiarity and expertise with products

true (eg. can be understood as distinctions: snack - sweet snacks - mix, etc)

which criteria are determinant can depend largely on the situation

true (eg. consumer considers gas mileage as a determinant criterion when buying a car for himself; however, the safety of a car would likely be determinant factor if he were buying a car for his daughter)

Marketers also increase the amount of product consumed per occasion

true (eg. size of soft drink's bottle)

Coke-life appeals to not just diet-conscious but health0conscious consumers

true, because it contains about half the sugar of a typical Coke and shuns sweeteners typically used in diet soft drinks

examplars are first thought of within any category

true. From there, consumers will consider other things and use the first one as a benchmark. Brand comparison also occurs

Consumers display the tendency to jump to negative conclusions about service providers who promote themselves positively on one feature but omit information on another feature

true. It's called INNUENDO EFFECT

the shoplifting intentions of adolescents appear to be more heavily influenced by emotions than by moral beliefs

true. Older generations are opposite

if an event is attributed to a product or company, an external attribution is made

true; eg. I exercised just like my PT said and I've still gained weight

nondurable goods

typically inexpensive and usually consumed quickly (eg. soft drinks, pencils, and Kleenex, etc)

oniomania

used to describe compulsive shopping

branded variants

used to describe the practice of offering essentially identical products with different model numbers or names

conjoint analysis

used to understand the attributes that guide preferences by having consumers compare products across levels of evaluative criteria and the expected utility associated with the alternatives

abusive consumer behavior

verbally or physically abusive customers, uncooperative customers, drunken customers, and customers who break company policy

perceptual attributes

visually apparent and easily recognizable (size, shape, color, etc.);

SERVQUAL

way of measuring service quality that captures consumers' disconfirmation of service expectations

rancorous revenge

when a consumer yells insults and makes a public scene in an effort to hardm the business in response to an unsatisfactory experience

factors influencing expectations

word of mouth communication, consumer's experience, explicit promises (ads, promotions), personal factors, etc.

an increased demand for waters, teas, and juices in the recent year arouses because

young consumers seek healthy alternatives when they consider which type of beverage to buy: they seek low sugar content and few additives

cognitive dissonance

"lack of agreement" : an uncomfortable feeling that occurs when a consumer has lingering doubts bout a decision that has occurred

Consumer personality

- Highly impulsive consumers often make poor judgments, while consumers with a high need for cognition can overthink their decisions and sometimes regret the judgments that they've made - High self - monitors can also ruminate on their judgments by focusing too intensely on the consequences associated with various attributes

Tablets

- feature: screen size - benefit: ease of viewing

examples of superordinate and subordinate

- superordinate: beverages - subordinate: colas, sports drinks, juices, etc.

ways to measure consumer satisfaction

1. Direct, global measures 2. Attribute-specific 3. Disconfirmation

Ways of handling negative publicity

1. Do nothing; the news will eventually go away 2. Deny responsibility for any negative event 3. Take responsibility for any negative events and be visible in the public eye 4. Release information allowing the public to draw its own conclusion

organizations that responsible for monitoring marketing activities

1. Federal Trade Commission (FTC) 2. Food and Drug Administration (FDA) 3. Better Business Bureau (BBB) 4. Association of Advertising Agencies (AAAA)

Some examples of rating authorities

1. Financial Times: ranks business schools and graduate business programs 2. US News and World Report: ranks universities and programs, ranks hospitals 3. Consumer Reports: rates the latest consumer products from soap to automobiles 4. Wine Spectator and Wine Advocate: rate wines based on blind taste tests by editors on a scale of 50 to 100 5. JD Power: rates autos and many other industries 6. CNET: rates many consumer products, with an emphasis on electronics

Binge eating disorder consists of

1. Frequent eating episodes that include large quantities of food in short time periods 2. A felt loss of control over eating behavior 3. Feelings of shame, guilt, and/or digust about the amount of food consumed 4. The consumption of food when one is not hungry 5. The consumption of food in secret

Forms of third - party endorsement

1. Makes recommendations based on cumulative consumer ratings (eg. TripAdvisor) 2. Makes recommendations from subject experts

During the evaluation process. consumers make judgements about the following

1. Presence of features (eg. Does this car stereo store music?) 2. Feature levels (eg. how many songs does it store?) 3. Benefits associated with features (eg. I won't have to carry my MP3 player or CDs with me) 4. Value associated with the benefit (eg. both utilitarian and hedonic value are derived) 5. How objects differ from each other (eg. the other stereos don't offer this attribute)

Categories of switching costs

1. Procedural 2. Financial 3. Relational

How do marketers determine which criteria consumers use?

1. Surveys 2. Warranty registrations (asks consumers to indicate the specific criteria that were used in arriving at a purchase decision) 3. Perceptual mapping 4. Conjoint analysis

Handling consumer complaints effectively

1. Thank the customer for providing the information 2. Ask questions to clarify the issue 3. Apologize sincerely 4. Show empathy for the customer's situation 5. Explain the corrective action that will take place 6. Act quickly 7. Follow up with the customer after the corrective action

disposal decisions

1. Trashing 2. Recycling 3. Converting 4. Trading 5. Donating 6. Reselling

Characteristics of relationship quality

1. competence 2. communication 3. trust 4. equity 5. personalization 5. gratifying 6. customer oriented

4 major categories of noncompensatory decision rules

1. conjunctive rule 2. disjunctive rule 3. lexicographic rule 4. elimination-by-aspects (EBA) rule

conjunctive rule

1. consumer sets a minimum mental cutoff point for various features and rejects any product that fails to meet or exceed this cutoff point across all features 2. noncompensatory decision rule where the option selected must surpass a minumum cutoff across all relevant attributes (eg. all features must meet or surpass a mental cutoff of 5 to be selected. For ex, only the Ford Fiesta has performance ratings at or above 5 on all features)

Exchange between a business and a consumer constitutes a relationship with the help of two factors

1. customer have a lifetime value to the firm 2. true loyalty involved both a continuing series of interactions and feelings of attachment between the customer and the firm

categories of products

1. deficient products 2. salutary products 3. pleasing products 4. desirable products

consumer problem behavior examples

1. eating disorders 2. binge drinking 3. problem gambling 4. drug abuse

categories of CSR

1. ethical duties 2. altruistic duties 3. strategic initiatives

Components of moral beliefs

1. moral equity 2. contractualism 3. relativism

consumer misbehavior examples

1. shoplifting 2. illegal sharing of softwares and music 3. attacks 4. consumer fraud 5. abusive consumer behavior 6. illegitimate complaining 7. product misue 8. aggressive driving 9. drunk driving 10. cellphone use and driving 11. sexting

conditions that made dissonance exist

1. the consumer is aware that there are many attractive alternatives that may offer comparable value relative to the product/brand purchased. 2. the decision is difficult to reverse 3. the decision is important and involves risk 4. the consumer ha slow self-confidence

Components of expectations

1. the probability that something will occur 2. an evaluation of that potential occurrence

Reasons that Ronald Fullerton gives for consumer misbehavior

1. unfulfilled aspirations 2. thrill seeking 3. lack of moral constraints 4. differential association 5. pathological socialization 6. provocative situational factors 7. opportunism

on average across many service settings, consumers get impatient with waits over ________ minutes

10

Most laws prohibit sellers from increasing prices from anywhere between _________ % or more over a thirty - day period after a disaster

10-25

Gatorade's own Twitter site has over ________ followers

125,000

Research suggests that about _______ customers had something to complain about but chose not to voice that complaint to management

20

how many percents different a product need to be in order for the consumers to notice?

20% JND

approximately ___% of shoplifters are children

25

What is true about satisfaction? A. Consumer satisfaction is a post-consumption phenomenon because it is a reaction to an outcome B. Like other emotions, satisfaction results from a cognitive appraisal. Some refer to this appraisal as the satisfaction judgment; however, the appraisal and the emotional reaction are distinct events C. Satisfaction as an emotion is relatively mild and does not create strong behavioral motivations

All are correct

an example of denying responsibility

Facebook's case in 2014: Facebook denied conducting experiments involving manipulating information presented in consumer newsfeed

direct, global measures

How do you rate your overall satisfaction?

an example of doing nothing

KFC changed their names to emphasize fried chicken as its only product, not because using genetically modified non-chickens to produce the meat sold in restaurants. However, KFC issued no articles for clarification

Immanuel Kant categorical imperative

One should act in a way that would be considered a universal law for all people facing the same situation (Is this action right?)

an example of releasing information

Pepsi released the assembly line of the Pepsi when rumors go around that people find needles in their bottles

Situational influences

Situations influence shopping decisions: buy as a gift, or buy for yourself, what occasions, etc.

customer perks

Starbucks Gold Card apps, Gold-Platinum-Diamond in Airlines, etc.

Values and satisfaction relate somehow, but value is the most important!!!

TRUE

The best-known third-party product endorsement

The Academy of Motion Pictures Oscar Award

The case of _____________ started tamperproof packaging for over-the-counter medications and now practically all food products

Tylenol medicine

an example of taking responsibility

Tylenol's pain medicine's case in the fall of 1982: over half a dozen consumer deaths in the Chicago area were attributed to cyanide traces in Tylenol capsules. Tylenol removed all the capsule from market and investigated how this happened and ensured that it would not happen again

deceptive advertising is covered under

Wheeler-Lea Act (1938)

signal

a characteristic that allows a consumer to diagnose something distinction about an alternative

example of attribute correlation

a consumer waits at the bank for so long -> he/she thinks that the bank offers poor service, which could be a faulty assumption; because it might mean consumers get individualized attention and really good service

a loyalty card/ program

a device that keeps track of the amount of purchasing a consumer has had with a given marketer once some level is reached

bulimia

a disorder that includes binge-eating episodes followed by self-induced vomiting

Example of innuendo effect

a doctor promotes himself as highly competent but doesn't include information about his personality may be perceived by consumers as being relatively uncaring

hope

a fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a potentially positive outcome

benefit

a perceived favorable result that is derived from the presence of a particular feature

positive disconfirmation

a perceived state wherein performance perceptions exceed expectations

negative disconfirmation

a perceived state wherein performance perceptions fall short of expectations

neutral disconfirmation

a perceived state wherein performance perceptions fit exactly with expectations

Words such as ____________ are used to describe consumer misbehavior

aberrant, illicit, dysfunctional, and deviant

dysfunctional fan behavior

abnormal functioning relating to sporting event consumption (eg. Vietnamese get angry when Vietnamese soccer team lost)

superordinate categories

abstract in nature and represent the highest level of categorization (eg. beverages)

planned obsolescence

act of planning the premature discontinuance of product models that perform adequately (eg. video game manufacturers are criticized for releasing new and seemingly "improved" gaming consoles even when older models haven't been on the market very long)

ethical duties

acting within expected ethical boundaries

complaining behavior

action that occurs when a consumer actively seeks out someone (supervisor, service provider, etc.) with whom to share an opinion regarding a negative consumption event

Positive word-of-mouth

action that occurs when consumers spread information from one to another about positive consumption experiences with companies

negative public publicity

action that occurs when negative WOM spreads on a relatively large scale, possibly even involving media coverage

Negative word-of-mouth

action that takes place when consumers pass on negative information about a company from one to another

consumerism

activities of various groups to voice concern for, and to protect, basic consumer rights

kleptomania

addiction to shoplifting -> problem behavior

Compensatory rules

allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute

existing schemata

allows consumers to provide meaning to objects; within this, both product categories and brand categories are found

attribute - based evaluation

alternatives are evaluated across a set of attributes that are considered relevant to the purchase situation

procedural justice

an equity-based cognition representing the extent that consumers believe the processes involved in processing a transaction, performing a service, or handling any complaint are fair

an important thing about unfulfilled aspirations

anomie

consumer refuse

any packaging that is no longer necessary for consumption to take place, or in some cases, the actual good that is nolonger providing value to the consumer

attribute-specific

assess a consumer's satisfaction with various components, or attributes, of a product, service, etc.: How satisfied are you with the following attribute of your stove?

culture jamming

attempts to disrupt marketing campaigns by altering messages in some meaningful way (eg. billboards are often altered in a way that delivers messages that conflict with those originally intended)

evaluative criteria

attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem

Perceived quality

based on consumer perceptions (eg. customers may still feel the phone is not as good)

consumer misbehavior

behaviors that are in some way unethical and that potentially harm the self or others

moral beliefs

beliefs about the perceived ethicality or morality of behaviors

relativism

beliefs about the social acceptability of an act in a culture (Is this action culturally acceptable?)

contractualism

beliefs about the violation of written or unwritten laws (Does this action break a law?)

moral equity

beliefs regarding an act's fairness or justness (Is it fair for me to illegally download music?)

anomie

both a response to rapid cultural change and an explanation for deviance - an explanation for deviance: consider goals that are generally accepted in a culture (US emphasis on attaining material possession and get ahead -> some people cannot reach that -> do wrong things to catch up)

Expert opinions

brand experts; lapidary guide consumers in the types of evaluative criteria to consider buying a diamond ring; or market mavens

top-line performance

business term referring to sales growth (sales being at the top of an earnings statement)

Product knowledge

buying shoes requires knowledge about shoes: athletic - what sports, etc.

examples of signal

color an texture of fruits and vegetables (eg. green banana will taste bitter)

price gouging mostly aims at

commodity goods (gasoline)

disconfirmation

compares the difference between expectations and performance perceptions. This measure can be taken in a direct, subjective fashion: Compared to my expectations, this product performs...

2 major rules that consumers use when selecting products

compensatory rules and noncompensatory rules

compulsive consumption consists of

compulsive buying and compulsive shopping

retaliatory revenge

consumer becomes violent with employees and/or tries to vandalize a business in response to an unsatisfactory experience

consumer problem behavior

consumer behavior that is deemed to be unacceptable but that is seemingly beyond the control of the consumer (eg. consumers compulsively shop; consumers addicted to drugs or alcohol)

customer commitment vs consumer inertia

consumer inertia: I live next to Starbucks so I buy Starbucks everyday customer commitment: I drink Starbucks because I love it

self-perception theory

consumers are motivated to act in accordance with their attitudes and behaviors

retail borrowing

consumers buy stuffs, use them, and refund

equity theory

consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange

affect - based evaluation

consumers evaluate products based on the overall feeling that is evoked by the alternative

packrats

consumers possessing high levels of a lifestyle trait leading to a strong tendency toward retaining consumption - related possessions

foot in the door is based on self-perception theory, which means that

consumers use perceptions of their own actions when forming attitudes

Studies show that lexicographic rules is very common because

consumers usually know what features are most important, and they simply select the product that offers the best performance on that feature

pathological socialization

consumers view misbehavior as a way of getting revenge against companies

antiloyal consumers

consumers who will do everything possible to avoid doing business with a particular marketer

teleological evaluations

consumers' assessment of the goodness or badness of the consequences of actions (How much good will result from this action?)

binge drinking

consumption of five or more drinks in a single drinking session for men and four or more drnkes for women

binge eating

consumption of large amounts of food while feeling a general loss of control over food intake

switching costs

costs associated with changing from one choice (brand/retailer/ service provider) to another

provocative situational factors

crowding, wait times, excessive heat, and noise can contribute to consumer misbehavior

compensatory damages

damages that are intended to cover costs incurred by a consumer due to an injury

punitive damages

damages that are sought to punish a company for behavior associated with an injury

relationship quality

degree of connectedness between a consumer and a retailer, including CS/D, complaining behavior, switching, customer share, and commitment

left-skewed

distribution of responses consistent with most respondents choosing responses so the distribution is clustered toward the positive end of the scale

relational switching costs

emotional and psychological consequences of changing from one brand/retailer/service provider to another (eg. change of hairstylist?)

hedonic criteria include

emotional, symbolic, and subjective attributes or benefits that are associated with an alternative (eg. prestige of an BMW)

National Advertising Review Council (NARC)

ensure that advertisements are truthful

I'm working for you relies on

equity theory, because the consumer thinks that the salesperson is working hard, therefore potentially purchase likelihood

deontological evaluations

evaluations regarding the inherent rightness or wrongness of specific actions (focuses on how people accomplish their goals)

critical incident

exchange between consumers and businesses that the consumer views as unusually negative with implications for the relationship

ideal expectations

expectations about what a consumer really wants to happen during an experience if everything were ideal

normative expectations

expectations of what a consumer thinks should happen given past experiences with a product or service

equitable expectations

expectations that a consumer forms regaring what she thinks should or ought to happen given the level of work that she has put into the experience

predictive expectations

expectations that form about what a consumer thinks will actually occur during an experience

attribution theory

explaining on why a certain event has occurred - proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments

products liability

extent to which businesses are held responsible for product-related injuries

Compulsive shopping is present in women only

false

Marketing cannot produce pollution

false

Satisfaction close relates to quality, loyalty, and cognitive disonance

false

Social influences

friends, family members, and reference groups also have an impact. extremely useful for automobiles or clothing

utilitarian criteria include

functional or economic aspects associated with an alternative (eg. safety of a BMW)

altruistic duties

giving back to communities through philanthropic activities

durable goods

goods that are typically expensive and usually consumed over a long period of time (eg. dishwashers, furniture, automobiles, and most electronic)

differential association

groups of people replace one set of acceptable norms with another set that others view as unacceptable (eg. prospective gang members may assault innocent bystanders to gain acceptance into their groups)

The concept of value extracted from experience matches with

hedonic value

interactional fairness

how fairly a consumer believes he is treated when dealing with service personnel in resolving some issue

consumer fraud might include

identity theft, fraudulently obtain credit cards, open bank accounts, and turn in insurance claims, etc.

puffery vs. deceptive advertising

in puffery, there is no overt attempt to deceive a targeted consumer

reciprocity norm

individuals are motivated to give back to those who have given them something

even a penny will help

ingratiation technique in which a marketing message is sent that suggests that even the smallest donation, such as a penny or a dollar, will help a cause

door in the face

ingratiation technique used in personal selling in which a salesperson begins with a major request and then follows with a series of smaller request (eg. Can I get you to buy this car today?)

foot in the door

ingratiation technique used in personal selling in which a salesperson begins with a small request and slowly leads up to one major request (eg. May I have a few minutes of your time? May I have your order? etc.)

consumer bill of rights

introduced by President JFK in 1962, list of rights that include the right to safety, the right to be informed, the right to redress and to be heard, and the right to choice

Locus

judgments of who is responsible for an event

strict liability

legal action against a firm whereby a consumer demonstrates in court than an injury occurred and that the product associated with the injury was faulty in some way

desire

level of a particular benefit that will lead to a valued end state

Firms face higher liability costs in the US than in most other countries, one of which is because

liability lawsuits that actually reach a courtroom often involve jury trials

key elements of the attribution theory approach

locus, control, and stability

procedural switching costs

lost time and extended effort spent in learning ways of using some product offering

Marketing communications

marketers assist consumers in deciding what features to consider when buying a particular product

societal marketing concept

marketing concept that states that marketers should consider not only the wants and needs of consumers but aso the needs of society

judgements

mental assessments of the presence of attributes and the benefits associated with those attributes; affected by the amount of knowledge or experience a consumer has with a particular object

product categories

mental representations of stored knowledge about groups of products

deceptive advertising

message that omits information that is important in influencing a consumer's buying behavior and is likely to mislead consumers acting reasonably.

consumer dissatisfaction

mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome

Consumer satisfaction

mild, positive, emotion resulting from a favorable appraisal of a consumption outcome

normal consumers like shop-lifting

misbehavior

opportunism

misbehavior can be the outcome of a deliberate decision - making process that weighs the risks and rewards of the behavior (eg. consumers might feel that the rewards associated with stealing outweigh the risks of getting caught)

subordinate categories

more detailed. Consumers examine the knowledge that she has stored about various options.

lexicographic rule

noncompensatory decision rule where the option selected is thought to perform best on the most important attribute (eg. the product that is thought to perform best on the most important attribute will be chosen)

disjunctive rule

noncompensatory decision rule where the option selected surpasses a relatively high curoff point on any attribute (eg. consumers want a car that excels at any of the features - mental cutoff: 10) -> consider performance ratings, not importance of attributes)

EBA rule

noncompensatory rules where the consumer begins evaluating options by first looking at the most important attribute and eliminating any option that does not meet a minimum cutoff point for that attribute, and where subsequent evaluations proceed in order of importance until only one option remains (eg. minimum cutoff :5 and consumer begins with the most important feature: gas mileage; any product that not surpass this will fail. Next the consumer looks at next important: price, etc.)

Services and experiences are usually classified as

nondurable

underlying attributes

not readily apparent and can only be learned through experience with the product (eg. product quality)

competitive intensity

number of firms competing for business within a specific category

Colors signal

nutritional content (eg. red fruits and vegetables are thought to reduce the risk of some cancers; blue fruits: blue berries, have been shown to reduce the risk of stroke and heart disease)

third - party endorsement

one form of publicity in which an ostensibly objective outsider (neither the customer nor the business) provides publicly available purchase recommendations or evaluations

Online sources

online websites

corporate social responsibility (CSR)

organization's activities and status related to its societal obligations

service quality

overall goodness or badness of a service experience, which is often measured by SERVQUAL

attribute correlation

perceived relationship between attributes of products

feature

performance characteristics of an object

morals

personal standards and beliefs used to guide individual actions

addictive consumption

physiological dependency on the consumption of a consumer product

customer share

portion of resources allocated to one brand from among the set of competing brands

puffery

practice of making exaggerated claims about a product and its superiority

sales orientation

practice of using sales techniques that are aimed at satisfying the salesperson's own needs and motives for short-term sales success

customer orientation

practice of using sales techniques that focus on customer needs

expectations

preconsumption beliefs of what will occur during an exchange and consumption of a product

equitable expectations can be referred to _____ in regulatory focus

prevention-based expectations

consumption

process that converts time, goods, ideas, or services into value

meaning transference

process through which cultural meaning is transferred to a product and onto the consumer

important issues to consider when discussing marketing ethics

product harmfulness and consumer vulnerability

salutary products

products that are good for both consumers and society in the long run (air bags). -> offer high utilitarian values, but no hedonic values

desirable products

products that deliver high utilitarian and hedonic value and that benefit both consumers and society in the long run (pleasant-tasting weight-loss products)

deficient products

products that have little to no potential to create value of any type (faulty appliances)

pleasing products

products that provide hedonic value to consumers but may be harmful in the long run (energy drinking)

ideal expectations can be referred to _________ in regulatory focus theory

promotion-based expectations

marketing concept

proposes that all the functions of the organization should work together in satisfying its customers' wants and needs

Marketing myopia

published early in the 1960s by Theodore Levitt

What does Walmart do to raise customer satisfaction?

reduced crowding of aisles and floor space, increased availability of higher quality brands, and an increased emphasis on sustainability

distributive fairness

refers to the way a consumer judges the outcomes of an exchange (eg. Did I get what I paid for?)

compulsive consumption

repetitive, excessive, and purposeful consumer behaviors that are performed as a response to tension, anxiety, or obtrusive thoughts

Just Noticeable Difference

represents how much stronger one stimulus must be compared to another if someone is to notice that the two are not the same

expectancy/ disconfirmation theory

satisfaction formation theory that proposes that consumers use expectations as a benchmark aginst which performance perceptions are judged

difference between dissonance and satisfaction

satisfaction is generally felt after a consumption experience, but dissonance may be experienced even before consumption begins (eg consumer may think immediately after the purchase: I should have bought the other one)

customer commitment

sense of attachment, dedication, and identification

customer share can also be referred to as

share of wallet

consumer inertia

situation in which a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change

negligence

situation whereby an injured consumer attempts to show that a firm could foresee a potential injury might occur and then decided not to act on that knowledgge

What determines the type of evaluative criteria that consumers use?

situational influences, product knowledge, social influences, expert opinions, online sources, and marketing communications

Hyperchoice

situations where too many choices are available

marketing ethics

societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies

thrill seeking

some consumers get thrilled from defacing the property of companies

lack of moral constraints

some people that sell illegal drugs don't see a problem with the behavior

ethics

standards or moral codes of conduct to which a person, group, or organization adheres

anorexia

starving of one's body in the pursuit of thinness

strategic initiatives

strategically engaging in socially responsible activities in order to increase the value of the firm

Noncompensatory rules

strict guidelines are set prior to selection and any option that does not meet the specifications is eliminated from consideration

Brand name association

studies have found that brand names are even stronger signals of quality than is PRICE (eg. Energizer batteries, or Gillette razors, etc)

evaluations are generally more relevant and meaningful at

subordinate levels

I'm working for you

technique used by salespeople to create the perception that they are working as hard as possible to close a sale when they really are not doing so

ingratiation

techniques such as foot-in-the-door, the door-in-the-face, the even-a-penny-will-help and the "I'm working for you"

For ____________ evaluations, consumers consider the perceived consequnces of the actions for various stakeholders, the probability that the consequence will occur, the desirability of the consequences for the stakeholders, and the importance of the stakeholder groups to the consumer

teleological

confirmatory bias

tendency for expectations to guide performance perceptions

a famous consumer incident regarding strict liability and negligence is

the McDonald's case (a customer spill hot coffee and burnt her leg -> she sued McDonald. Under strict liability, the consumer needs to demonstrate that an injury occurred and that product was faulty, but under negligence, the consumer can say that McDonald this "could happen" but do nothing to prevent the mishap -> the woman ended up winning the lawsuit)

price gouging

the act of charging a higher than reasonable price for a god, following some kind of natural disaster or event

Objective quality

the actual quality of a product that can be assessed through industry specification or expert rating (eg. cell phone provider may advertise its service has been proven tho have the fewest dropped calls in the industry)

cyber-bullying

the attack of young consumers on the internet

Fishbein model

the attitude-toward-the-object model represents a compensatory approach

authenticity

the degree to which an object, person, or experience seems real, genuine, unique, and part of history or tradition

determinant criteria

the evaluative criteria that are related to the actual choice that is made

control

the extent to which an outcome was controllable or not

bounded rationality

the idea that perfectly rational decisions are not always feasible due to constraints found in information processing

stability

the likelihood that an event will occur again in the future

consumption frequency

the number of times a product or service is consumed in a given time period

Noncompensatory rules are often used in low-involvement situations because

these rules allow consumers to simplify their thought processes

underlying attributes are usually referred to as experience qualities because

they are often perceived only during consumption

perceptual attributes are usually referred to as search - qualities because

they can easily be evaluated prior to actual purchase