Consumer Behavior Exam 1: chapters 1-5

3 stages of perception

1. exposure 2. attention 3. interpretation

Involuntary, occurs when a stimulus that elicits a response is paired with another stimulus that does not initially elicit a response on its own

Classical conditioning

Idea that we fill in the blanks based on prior experienes

Closure principle

perspectives that regard consumers as solvers of complex problems who learn abstract rules and concepts when they observe what others say and do.

Cognitive learning theory

A person who identifies a need or desire, makes a purchase, and disposes of the product during the three stages of consumption process

Consumer

The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

Consumer Behavior

A website that shows how "green" the product is, if it can have multiple life cycles

Cradle to cradle

When marketers track specific customers buying habits very closely, and crafting products and messages tailored precisely to people's needs and wants based on this information

Database marketing

Sensory receptors include:

Eyes, ears, nose, mouth, fingers, skin

Heavy vs. Light users

Heavy- faithful customers light- inconsistent customers

The minimum difference we can detect between two stimuli

JND- Just Noticeable Difference

The importance people attach to worldly possessions.

Materialism

Set of beliefs assigned to a stimulus

Schema

factor that determines how we all interpret stimulus is the relationship we assume it has with other events, sensations, or images in memory

Stimulus organization

Represents one way society has been taught to satisfy the need

Want

In the encoding stage, these memories relate to events that are personally relavent

episodic memories

time varies, have to respond at a constant rate ex-secret shoppers, pop quiz

variable-interval reinforcement

How much does the U.S. spend on green products?

$40 billion annually

Consumer-brand attachments

- self-concept: product helps establish users identity (class ring, mizzou apparel) -Nostalgic: link with a past self (trophies) -Interdependence: part of user's daily routine (iphone) -Love: product elicits emotional bonds of warmth, passion (naming your car)

Market access issues include:

-Disabilities -food deserts -media literacy

Types of reinforcement schedules

-Fixed-interval reinforcement -variable-interval reinforcement -variable-ratio reinforcement -fixed-ratio reinforcement

Reasons for stimuli habituation

-Intensity -Discrimination -Exposure -Relevance

Marketers use these dimensions to carve out brands position:

-Lifestyle -Price leadership -Attributes -product class -competitors -occasions -users -quality

Factors of Perceptual Selection

-Perceptual vigilance -Perceptual defense -Adaption

Types of consumer theft & fraud

-Shrinkage: inventory & cash losses from shoplifting -Serial Wardrobers -Counterfeiting

Stimulus Selection Factors:

-Size -Color -position -novelty

Senses involved in sensory marketing?

-Vision: elements in advertisements, store design, and packaging -Colors: influence emotions -Smell: odors evoke memories -Sound -Touch -Taste

Types of responses for consumer complaints

-Voice response -Private response -Third party response

Views of Positivism

-assumes society has objective social facts -society exerts influence on its members -quantitative data, objectory

Can store memory trace in these ways: -Axe example

-brand-specific: terms of claims brand makes ("it's macho") -ad-specific: in terms of medium/content (macho guy using axe) -brand identification: in terms of brand name -product category: use/how it works (axe in medicine cabinet) -evaluate reactions: stored as positive or negative emotions ("looks cool")

We use instrumental conditioning when:

-deliberately want to achieve a goal, more complex -occurs when learner receives reward after desired behavior -over time, consumers associate with people who reward them and choose products that make them feel good or satisfy some need.

What are the steps in the memory process?

1. Encoding 2. Storage 3. retrieval

In order for observational learning in the form of modeling to occur, marketer must meet 4 conditions:

1. attention 2. retention 3. action 4. motivation

Instrumental Conditioning- three types of reinforcement

1. positive reinforcement 2. negative reinforcement 3.punishment

Pareto Principle (80/20)

20% Of users account for 80% of sales. -the 20% being heavy users; 20% of products are worth 80% of sales

Minimum amount of stimulation one can detect

Absolute Threshold

Degree to which consumers continue to notice stimuli over time; occurs when we no longer pay attention to the stimulus because it is so familiar ex: commuter en route to work sees same billboard everyday

Adaption

See a billboard, hear a jingle, feel softness of cashmere sweater, smell leather jacket

All sensory inputs- which are raw data that begin perceptual process

According to activation models of memory, an incoming piece of information gets stored here and contains many individual bits of related information.

Associative networks

Uses elements of marketing mix to influence consumers interpretation of product meaning in the marketplace

Brand positioning strategy

Rules of conduct that guide actions in the marketplace; these are the standard against which most people in a culture judge what is right and wrong, good or bad.

Business ethics

A firm's triple bottom line orientation

Business strategies to maximize returns 1. the financial bottom line: profit to stakeholders 2. social bottom line: returns benefits to community 3. Environmental bottom line: minimize damage to environment or even improve natural conditions

The issues that influence the consumer before, during, and after a purchase

Consumption Process

Sensations that subtly influence how we think about products -example: respondents evaluated more harshly when standing on tile rather than carpeted floor

Context effects

Many firms integrate this into business models. Describes a process that encourage the organization to make positive impact on various stakeholders in its community: consumers, employees, environment.

Corporate social responsibility

Used to refer to an expert who carefully chooses pieces to include in museum exhibit, now applies to range of consumer products such as: food, clothing, and travel

Curation

For some purposes, marketers find it useful to categorize customers in terms of age, gender, income, or occupation. These are descriptive characteristics of a population.

Demographics

A transaction in which two or more organizations or people give and receive something of value, is an integral part of marketing

Exchange

One part of stimulus will dominate (figure) others fade into background (ground)

Figure-ground principle

Explains why people crowd a store on the last day of a sale

Fixed-interval reinforcement

reinforcement after fixed responses -Nordstrom rewards, grocery store that rewards a price when reach 50 receipts

Fixed-ratio reinforcement

Strategy that involves the development and promotion of environmentally friendly products, and stressing this attribute when manufacturer communicates with its customers

Green Marketing

Multi-sensory, fantasy, and emotional aspects of consumers interactions with products.

Hedonic consumption

Sign that resembles a product

Icon (ford mustang's horse)

Learning without even trying; we recognize brand names, hum product jingles, even for products we don't use ourselves.

Incidental learning

Sign that connects to product because they share a similar property

Index (Pine tree on refresher spray)

When we learn to perform behaviors that produce positive outcomes and avoid behaviors we believe will produce negative outcomes

Instrumental conditioning

A relatively permanent change in behavior caused by experience; trying to learn

Intentional learning

Post-modernism, questions these assumptions and argues that science and technology are emphasized too much. World is culturally and socially complex, importance on symbolic, subjective experience; meanings constructed on one's individual perspectives. -qualitative data, subjective

Interpretivism

Process fragrance through this, most primitive part of the brain and experience immediate emotion

Limbic system

The ability to find and purchase goods and services

Market access

Process of acquiring information and storing it over time so it will be there when we need it

Memory

Process of imitating the behavior of others ex: copy friends perfume that she got compliments on

Modeling

description of a product is written as a story

Narrative

Basic biological motive

Need

A women is shown sitting alone, ad demonstrates this can be avoided if she were to purchase a particular perfume. Example of what?

Negative reinforcement

Based on semiotic views, every marketing message contains 3 basic components: -marlboro example

OBJECT(product)-marlboro cigs SIGN(image)-cowboy INTERPRETATION(meaning)-rugged american

When we watch others and note reinforcements they receive for their behaviors -vicarious experience, complex -people store observations in memory as they accumulate knowledge, use info at later point to guide own behavior

Observational learning

Process by which people select, organize, and interpret sensations

Perception

People only attend a small portion of the stimuli to which they're exposed

Perceptual Selection

The factor that states we see what we want to see and choose to not see what we do not want to. ex: heavy smokers may block out images of cancer scarred lungs

Perceptual defense

Factor that states we are more likely to be aware of stimuli related to a current need

Perceptual vigilance

A women gets a compliment on perfume, she is likely to keep buying this perfume. Example of what?

Positive reinforcement

Modernism, emphasizes that the human reason is supreme and that there is a single, objective truth. Celebrates the functions of objects, technology, and refers to the world as a rational, ordered place.

Positivism

Shoppers are willing to spend more on an item when they know exactly where it came from, and they're assured that "real people" have thoughtfully selected the things from which they choose.

Provenance

Our friends ridicule us when we wear a perfume that smells bad

Punishment

Marketers amount of efforts and resources devoted when they reward consumers who respond as they hoped.

Reinforcement schedules

Building relationships between brands and customers that will last a lifetime; interact with customers on regular basis and give them solid reasons to maintain the bond.

Relationship marketing -ex: happy birthday messages

Much of consumer behavior resembles actions in a play, as consumers are acting out a variety of different roles which sometimes alter their consumption decisions

Role Theory

These help marketers to understand how consumers interpret the meaning of symbols; studies the correspondence between signs and symbols and their roles in how we assign meanings.

Semiotic relationships

Refers to immediate response of our sensory receptors to basic stimuli

Sensation

The idea that we exposed to far more information than we can process, and marketers must break through this clutter.

Sensory Overload

Point at which stimuli make conscious impact on awareness

Sensory Threshold

Companies think carefully about impact of our sensations on our product experiences; they recognize that our senses help us decide which products appeal to us & stand out example= Omni hotel soft chimes on site, scent in lobby

Sensory marketing

Consumers tend to group together objects of similar physical characteristics

Similarity principle

Strategies that use the techniques that marketers normally employ to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative behaviors like drunk driving

Social Marketing

The way a word sounds influences our assumptions about what it describes, such as size.

Sound symbolism

occurs when a stimulus comes within a range of someone's sensory receptors; concentrate on some, unaware of some, and ignore others.

Stage 1: exposure

The extent to which processing activity is devoted to particular stimulus

Stage 2: Attention

Refers to meanings we assign to sensory stimuli

Stage 3: Interpretation

tendency of stimuli similar to conditioned stimulus to evoke similar conditioned responses (ex-pavlovs dogs salvating to jingle of keys)

Stimulus generation

This idea creates and maintains conditions under which humans and nature can exist in productive harmony, that permit the social and economic requirements of the current and future generations

Sustainability

Sign that relates to product by conventional or agreed upon associations

Symbol (lion provides association of fearlessness)

Why do organizations exist?

To satisfy needs.

Based on idea that amount of change required for perceiver to notice change systematically relates to the intensity of the original stimulus.

Weber's Law

Focuses on simple stimuli- response connections and assumes that learning takes place as a result of responses to external events

behavioral learning theory

Popular strategy, aligns company or brand with cause to generate business and societal benefits

cause marketing

Stimulus selection

characteristics of stimuli itself play an important role in what we pay attention to and ignore

Pavlovs dogs

classical conditioning -unconditioned stimulus: dog food -conditioned stimulus: bell -conditioned response: drooling of dogs because sound of bell linked to feeding time.

The ability to detect changes between two stimuli

differential threshold

allows information to move from short term memory to long term memory

ellaborative rehearsal

encouraging customers to touch products, encourages them to imagine if they own it

endowment effect

lack of association between the conditioned stimulus and unconditioned stimulus, happens when effects of prior conditioning diminish and disappear (too much exposure)

extinction

Our perception of a brand=

functional attributes (features, price, etc) & symbolic attributes (meaning)

React to other stimuli similar same way as original (ex-private label mouthwash very similar to national brand)

halo effect

Universal values (business ethics) include

honesty, trustworthiness, fairness, respect, justice, integrity, concern for others, accountability and loyalty

Basic stimuli includes:

light, color, sound, odor, and texture

retain information for a long time

long-term memory

An organization targets its product, service, or idea only to specific groups of consumers rather than to everybody.

market segmentation

exposures that increase strength of stimulus-response associations and prevent the decay of associations in memory

repetition

external stimuli from the external environment that we receive on a number of channels

sensory inputs

Temporary storage of sensory information; lasts only a couple of seconds at most. ex: man walks past a donut shop

sensory memory

brief storage of information currently being used. can be input acoustically (sound) or semantically (meaning)

short-term memory

Allows us to shift back and forth on levels of meaning; the way we store information in memory depends on initial meaning assigned to it.

spreading activation

Materialists are more likely to value possessions for:

status and appearance

Positive and negative reinforcement _________ future linkage between response and outcome

strengthen

Simple principle that states that everything we need for survival and well-being depends, either directly or indirectly, on our natural environment

sustainability

When you know you will eventually get reinforced, but don't know when. -ex: slot machines

variable-ratio reinforcement

punishment ________ future linkage between response and outcome

weakens