Chapter 6 marketing 310

previous experience

When consumers have had previous experience with a good or service, the level of involvement typically decreases.

cognitive dissonance

When people recognize inconsistency between their values or opinions and their behavior. second guessing your purchase.

social class

a group of people who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.

Value

a personal assessment of the net worth one obtains from making a purchase. To put it another way, value is what you get minus what you give up

Brand extensions

a well-known and respected brand name from one product category is extended into other product categories.

Hedonic Value

an end in itself rather than as a means to an end. The purchase tends to give us good feelings, happiness, and satisfaction. The value is provided entirely through the experience and emotions associated with consumption, not because another end is accomplished. EX: Taking a ski vacation or a trip to the beach gives us hedonic value.

influencers

are members of the family whose opinions are valued.

reference group

consists of all the formal and informal groups that influence the buying behavior of an individual.

norm

consists of the values and attitudes deemed acceptable by the group.

Utilitarian Value

derived from a product or service that helps the consumer solve problems and accomplish tasks. EX: Buying a washing machine and dryer gives you a convenient means of cleaning your clothes.

showrooming

examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item.

individual influences

factors such as gender, age, life cycle stage, personality, self-concept, and lifestyle also play important roles in consumer decision making.

consumer buying decisions

generally fall along a continuum of three broad categories: routine response behavior, limited decision making, and extensive decision making

real self image

how an individual actually perceives themself.

perception

how we see the world around us.

unplanned purchase

impulse shoping

primary membership group

includes all groups with which people interact regularly in an informal manner, such as family, friends, members of social media, and coworkers.

nonaspirational reference group

influence our behavior when we try to maintain distance from them.

personality

is a broad concept that can be thought of as a way of organizing and grouping how an individual typically reacts to situations.

aspirational reference group

is a group a person would like to join. To join an aspirational group, a person must at least conform to the norms of that group.

subculture

is a homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group.

marketing-controlled information source

is biased toward a specific product because it originates with marketers promoting that product. Marketing-controlled information sources include mass media advertising (radio, newspaper, television, and magazine advertising), sales promotion (contests, displays, premiums, and so forth)

selective retention

is remembering only information that supports personal feelings or beliefs.

involvement

is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

motive

is the driving force that causes a person to take action to satisfy specific needs.

decision maker

is the family member who actually makes the decision to buy or not to buy.

family

is the most important social institution for many consumers, strongly influencing values, attitudes, self-concept, and buying behavior.

culture

is the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

partial planned purchase

knows what category wants to by but wants to wait to decide brand.

secondary membership group

less consistently and more formally. These groups might include clubs, professional groups, and religious groups.

life events

life events change consumer buying patterns.

product involvement

means that a product category has high personal relevance. Product enthusiasts are consumers with high involvement in a product category.

situational involvement

means that the circumstances of a purchase may temporarily transform a low-involvement decision into a high-involvement one.

conceptual learning

not acquired through direct experience but based upon reasoning, is the second type of learning.

selective distortion

occurs when consumers change or distort information that conflicts with their feelings or beliefs.

separated self-schema

perceives himself as distinct and separate from others.

opinion leaders

persons who influence others.

nonmarketing-controlled information source

product information source that is not associated with marketers promoting a product. EX: Rotten tomatoes website

enduring involvement

represents an ongoing interest in some product, such as kitchen gadgets, or activity, such as fishing.

emotional involvement

represents how emotional a consumer gets during some specific consumption activity

shopping involvement

represents the personal relevance of the process of shopping. Some people enjoy the process of shopping even if they do not plan to buy anything.

external information search

seeks information in the outside environment.

connected self-schema

sees himself as an integral part of a group.

stimulus generalization

stimulus generalization occurs when one response is extended to a second stimulus similar to the first. EX: dove shampoo relies on dove soap.

initiators

suggest, initiate, or plant the seed for the purchase process of family.

store promotions

tactic promoting low-involvement products. EX: bright colors on tide

socialization process

the passing down of cultural values and norms to children.

internal information search

the person recalls information stored in the memory. This stored information stems largely from previous experience with a product.

learning

the process that creates changes in behavior through experience and practice.

Utilitarian and Hedonic Value

the purchase experience can give you both hedonic and utilitarian value. EX: Going to a Morton's and enjoying the atmosphere and a fine steak will give you hedonic value. At the same time, it satisfies your hunger pangs and thus provides utilitarian value.

Want

the recognition of an unfulfilled need and a product that will satisfy it.

Need recognition

the result of an imbalance between actual and desired states. The imbalance arouses and activates the consumer decision-making process

ideal self image

the way and individual would like to be perceived.

selective exposure

to decide which stimuli to notice and which to ignore.

limited decision making

typically occurs when a consumer has previous product experience but is unfamiliar with the current brands available. (lower level involvement)

cultural factors that affect consumer buying decisions:

ultural influences on consumer buying decisions include culture and values, subculture, and social class. Culture is the essential character of a society that distinguishes it from other cultural groups. The underlying elements of every culture are the values, language, myths, customs, rituals, laws, and the artifacts, or products, that are transmitted from one generation to the next. The most defining element of a culture is its values. A culture can be divided into subcultures on the basis of demographic characteristics, geographic regions, national and ethnic background, political beliefs, and religious beliefs.

experiential learning

when an experience changes your behavior.

extensive decision making

when buying an unfamiliar, expensive product or an infrequently bought item.

evoked set (or consideration set)

which are the consumer's most preferred alternatives. From this set, the buyer will further evaluate the alternatives and make a choice.

Maslow's hierarchy of needs

which arranges needs in ascending order of importance: physiological, safety, social, esteem, and self-actualization

stimulus

which is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and hearing

family life cycle

"single" "young married couple with children"

consumer decision-making process

1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) postpurchase behavior.

To buy or not to buy

1.Whether to buy 2.When to buy 3.What to buy (product type and brand) 4.Where to buy (type of retailer, specific retailer, online or in store) 5.How to pay

age and family life cycle

A consumer's age and family life cycle stage can have a significant impact on his or her behavior.

why marketing managers should understand consumer behavior:

An understanding of consumer behavior reduces marketing managers' uncertainty when they are defining a target market and designing a marketing mix.

Perceived risk of negative consequences

As the perceived risk in purchasing a product increases, so does a consumer's level of involvement. -financial -social -psychological

consumer behavior

Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services.

types of consumer buying decisions and discuss the significance of consumer involvement:

Consumer decision making falls into three broad categories: routine response behavior, limited decision making, and extensive decision making. High-involvement decisions usually include an extensive information search and a thorough evaluation of alternatives. By contrast, low-involvement decisions are characterized by brand loyalty and a lack of personal identification with the product. The main factors affecting the level of consumer involvement are previous experience, interest, perceived risk of negative consequences (financial, social, and psychological), and social visibility. A purchase decision can be highly involved due to a wide range of factors, including product involvement, situational involvement, shopping involvement, enduring involvement, and emotional involvement.

consumer's postpurchase evaluation process:

Consumer postpurchase evaluation is influenced by prepurchase expectations, the prepurchase information search, and the consumer's general level of self-confidence. When a purchase creates cognitive dissonance, consumers tend to react by seeking positive reinforcement for the purchase decision, avoiding negative information about the purchase decision, or revoking the purchase decision by returning the product.

routine response behavior

Frequently purchased, low-cost goods and services

individual factors that affect consumer buying decisions.\:

Individual factors that affect consumer buying decisions include gender; age and family life cycle stage; and personality, self-concept, and lifestyle. Beyond obvious physiological differences, men and women differ in their social and economic roles, and that affects consumer buying decisions. A consumer's age generally indicates what products he or she may be interested in purchasing. Marketers often define their target markets in terms of consumers' life cycle stage, following changes in consumers' attitudes and behavioral tendencies as they mature. Finally, certain products and brands reflect consumers' personality, self-concept, and lifestyle

social visibility

Involvement also increases as the social visibility of a product increases.

interest

Involvement is directly related to consumer interests, as in cars, music, movies, bicycling, or online games.

Goods and services in these three categories can best be described in terms of five factors:

Level of consumer involvement Length of time to make a decision Cost of the good or service Degree of information search Number of alternatives considered

gender

Physiological differences between men and women result in many different needs, such as with health and beauty products.

psychological factors that affect consumer buying decisions:

Psychological factors include perception, motivation, and learning. These factors allow consumers to interact with the world around them, recognize their feelings, gather and analyze information, formulate thoughts and opinions, and take action. Perception allows consumers to recognize their consumption problems. Motivation is what drives consumers to take action to satisfy specific consumption needs. Almost all consumer behavior results from learning, which is the process that creates changes in behavior through experience.

perceived value

Purchases are made based upon perceived value, which is what you expect to get. The actual value may be more or less than you expected.

social factors that affect consumer buying decisions:

Social factors include such external influences as reference groups, opinion leaders, and family. Consumers seek out others' opinions for guidance on new products or services and products with image-related attributes or because attribute information is lacking or uninformative. Consumers may use products or brands to identify with or become a member of a reference group, or to follow an opinion leader. Family members also influence purchase decisions; children tend to shop in similar patterns as their parents.

components of the consumer decision-making process:

The consumer decision-making process begins with need recognition, when stimuli trigger awareness of an unfulfilled want. If additional information is required to make a purchase decision, the consumer may engage in an internal or external information search. The consumer then evaluates the alternatives using the additional information and establishes purchase guidelines. Finally, a purchase decision is made.