Consumer Behavior - Exam 1

What type of consumer has technology created?

"Always on"

What things can be influenced by market access?

- Disabilities - Food deserts - Literacy

When are consumers likely to respond to dissatisfaction?

- Dissatisfied with expensive products - Consumers satisfied with a store in general are more likely to complain if they experience something negative and feel better if the company resolves the problem

What are factors that can influence effects of color?

- Learned associations - Gender - Age

Greater Connectedness to Nature has been linked to:

- Positive affect - Psychological well-being - Meaningfulness - Vitality - Better ability to reflect on personal problems

What should organizations encourage people to complain?

- They get the chance to correct the situation - They can avoid escalating the problem that results when consumers take to social media - They collect valuable insights about customers' experiences - If consumers don't believe the store will respond to their complaint, they're more likely to switch than fight

The way organizations approach being environmentally conscious is based on maximizing return in what 3 ways?

1. Financial Bottom Line 2. Social Bottom Line 3. Environmental Bottom Line

While consumers want to choose green products, what are two reasons why consumers may be less likely to purchase?

1. Green products are more expensive 2. Distrust from greenwashing

80/20 Rule

20% of users account for 80% of sales

Sensory Thresholds

Dual issues of if and when consumers will notice a difference between two stimuli

When can connecting with nature have a lasting effect?

During childhood

Sensory Marketing (5 of them) 4. Touch - Endowment Effect

Endowment Effect: Touching a product encourages a consumer to imagine owning the product

Sustainability

Everything we need for our survival and wellbeing

Perceptual Process (3-Stages) Stage 1: Exposure

Exposure occurs when a stimulus comes within range of one's sensory receptors

Meaningfulness concerns activities that _____ oneself and _____ others in a positive way

Express and Impact

Sensory Inputs

External stimuli that are the raw data to begin the perceptual process Ex: Hearing a jingle, feeling a sweater, sampling ice cream

Business ethics are the standards against which most people in a culture judge what?

Judge what is right and wrong

The minimum difference we can detect between two stimuli is the _________

Just noticeable difference

Which system do humans process fragrance cues through?

Limbic system - Most primitive part of the brain and where we experience emotions

What is a Want?

Manifestation of a need determined by personal and cultural factors

Do marketers create artificial needs?

Marketers provide particular solutions to satisfy these needs

5 Types of Consumer-Brand Relationships - Love

Product elicits emotional bonds of warmth, passion, or other strong emotion **Our relationships with brands evolve overtime

5 Types of Consumer-Brand Relationships - Self-Concept Attachment

Product helps to establish user's identity

5 Types of Consumer-Brand Relationships - Interdependence

Product is a part of the user's daily routine

5 Types of Consumer-Brand Relationships - Nostalgic Attachment

Product serves as a link with past self

Transformative Consumer Research

Promotes research for which the goal is to help people or bring about social change

Financial Bottom Line

Provide profits to stakeholders

Transformative Consumer Research can ultimately influence _____ to make sure consumers are protected

Public policies

Social Bottom Line

Return benefits to the communities where the organization operates

Business Ethics

Rules of conduct that guide actions in the marketplace

Materialists link more of their _____ to products

Self-identity

Context Effects

Sensations experienced that subtly influence how one thinks about products encountered

Provenance

Shoppers are willing to pay more for an items when they know where it comes from and are assured that real people have through fully selected the things from which they choose

What is a Need?

Something you need to live or achieve a goal - Utilitarian-Functional - Hedonic-Emotional or Experiential

What can having a greater Connectedness to Nature in turn have positive effects on?

Sustainable consumer behavior

Sensory Thresholds

The point at which stimuli is strong enough to make a conscious impact in an individual's awareness -- Dual issues of if and when consumers will notice a difference between two stimuli

What is a basic objective of marketing?

To create awareness that needs exist, not to create needs

Database Marketing

Tracks specific consumers' buying habits closely and crafts products and messages tailored precisely to people's wants and needs

T/F Cause marketing is a popular strategy that aligns a company with a cause to generate business and societal benefits

True

T/F Building loyalty with existing consumers is sometimes better than trying to gain new consumers

True

T/F We value items more when they are curated

True

Many consumers believe that marketers design ad messages so that they'll be perceived _______

Unconsciously

3 Personal Selection Factors 2. Perceptual Defense

We see what we want to see

Sensory Overload

Were exposed to far more info than we can process

Need For Touch

Individual difference scale, high on the haptic dimension

Perception

Process by which people select, organize, interpret sensations

Color Palette

A key issue in package design

Subliminal Perception

A stimulus below the level of the consumer's awareness - Controversial - Largely ineffective

Green Marketing

A strategy that involves the development and promotion of environmentally friendly products and stressing this attribute when communicating with consumers

Do markets promise miracles?

Advertising functions as mythology does by producing simple, anxiety-reducing answers to complex problems

Sensory Marketing (5 of them) 1. Vision

Advertising, store design, packaging - Allows for communication on the visual channel through a product's color, size, and styling

Perceptual Process (3-Stages) Stage 2: Attention

Allocation of attention varies depending on both the characteristics of the stimulus and the recipient

Sensory Marketing (5 of them) 3. Sound - Audio Watermark - Sound Symbolism

Audio Watermark: A musical or audio sound that a brand uses as a signature watermark Example: Taco Bell dinging sound Sound Symbolism: The way a word sounds influences our assumptions about what it describe and attributes

Perceptual Selection

Because of our brain's capacity to process information is limited, consumers are selective about what they pay attention to

Relationship Marketing

Building relationships between brands and customers is key to success and interaction is frequent

B2C E-Commerce

Businesses selling to consumers

Humanizing nature can _____ feelings of connectedness to nature

Increase

Big Data

Collection and analysis of extremely large data sets - Consumers create 2.5 quintillion buses of data a day

Trade Dress

Color combinations that are very strongly associated with a corporation

Sensory Marketing (5 of them) Taste

Companies are using the electronic mouth to test new and improved flavors, even for formulating better tasting medicine

Heavy Consumers

Company's most faithful users and use the product most heavily (Brand loyalists) - Don't need to communicate a lot (B to C) in order to get the consumer to purchase new products, recommend products to others, etc.

Consumers need to make tough tradeoffs between convenience and ?

Constant surveillance

5 Types of Consumer-Brand Relationships - Role Theory

Consumers act out many roles and make consumption decisions depending on the play they're in

Conscientous Consumerism

Consumers focus on personal health merging with a growing interest in global health

C2C E-Commerce

Consumers selling to other consumers

Digital Native

Consumers that have grown up "wired" in an always-on world where digital technology has always existed

When an organization behaves ethically, how does this affect how consumers think of the firm?

Consumers think better of the products the firm sells

What can determine what tastes we find desirable?

Cultural factors

What do social media platforms enable?

Culture of participation

The _____ of a product is often a key driver of its success or failure

Design

Asynchronous Interactions

Do not happen in real time, do not require immediate response

Light Consumers

Do not use a brand often (Not loyal) - Can switch (Take it or Leave it)

T/F Sustainability is the same as Green Marketing

False

T/F External sensory cannot trigger internal sensory experiences

False External sensory CAN trigger internal sensory experiences

T/F Markets know enough about people to manipulate them

False Marketers simply don't know enough about people to manipulate them

Connectedness to Nature

Feeling close to nature and including nature in one's own self-concept - An individual difference

Materialists are more likely to value possessions for their what?

For their status and appearance related meanings

Synchronous Interactions

Happen in real time

What are universal values in business ethics?

Honest, trustworthiness, fairness, respect, justice, integrity, concern for others, accountability, loyalty

Sensation

Immediate response of our sensory receptors (5 senses) to basic stimuli like light, color, sound, odor, and texture

Environmental Bottom Line

Minimize damage to the environment or even improving natural conditions

3 Personal Selection Factors 1. Personal Vigilance

More likely to be aware of stimuli that relate to our current needs

Hedonic Consumption

Multisensory, fantasy, and emotional aspects of consumers' interactions with products

What is happiness linked to satisfying?

Needs and Wants

Greenwashing

Occurs when companies make false or exaggerated claims about how green their products are

Identity Theft

Occurs when someone steals your personal information and uses it without your permission

Sensory Marketing (5 of them) 2. Smell

Odors and aromas can stir emotions, invoke memories, or relieve stress - Smells can increase the length of time consumers spend processing product information

What does sustainability depend on?

On our natural environment

Non-materialists prize products that connect them to _____

Others

Non-materialists cherish items that provide what?

Personal significance

Consumers are interested in choosing brands that support causes they find _____

Personally relevant

Experience of touch is like a _____

Primal language

Humanizing nature ultimately increases consumers willingness for what?

Pro-environmental behavior - e.g. willingness to choose and use green products

Differential Threshold

The ability of a sensory system to detect changes in or differences between two stimuli

Market Access

The ability to find and purchase goods and services

Weber's Law

The amount of change required for a perceiver to notice a change systematically relates to the intensity of the original stimulus

Absolute Threshold

The minimum amount of stimulation a person can detect on a given sensory channel Example: A billboard with too small of print to read when driving by

Consumers have 3 options when dissatisfied with a product/service - Voice Response

You can appeal directly to the retailer for the redress example: a refund

Consumers have 3 options when dissatisfied with a product/service - Private Response

You can express your dissatisfaction to friends and boycott the product or store where you bought it

Consumers have 3 options when dissatisfied with a product/service - Third-Party Response

You can take legal action against the merchant, register a complaint with the Better Business Bureau, or write a letter to the newspaper