Consumer Behavior Test 3

Door-in-the-face technique

(self- perception theory) persuasive technique involving making an unreasonably large request before making the small request we're hoping to have granted

Foot-in-the-door technique

(self- perception theory:assumes that we observe our own behavior to determine just what our attitudes are. We infer the attitude from our behavior) asking for a small commitment and, after gaining compliance, asking for a bigger commitment

Source bias (knowledge and reporting)

(the source) knowledge bias: implies that a sources knowledge about a topic is biased reporting bias: when a source has the knowledge but we question their ability to convey it accurately. a consumers beliefs about a products attributes will weaken if they believe the source is biased

Source credibility

(the source) a communicator's expertise, objectivity, or trustworthiness. relates to a consumers beliefs that this person is competent and that they will provide necessary information we need when we evaluate competing products.

Sleeper effect

(the source) a delayed impact of a message that occurs when an initially discounted message becomes effective, such as we remember the message but forget the reason for discounting it when after a while, people appear to "forget" about the negative source and change their attitudes anyway (we forget when the wendy's bitch was so annoying)

Halo effect

(the source) occurs when we assume that persons who rank high on one dimension excel on others as well (assuming that more attractive people are smarter and happier than the rest of us)

Native advertising

(the source) to digital messages/ advertising designed to blend into the editorial content of the publications in which they appear

Attitude

a lasting, general evaluation of people, objects, advertisements, or issues

Central versus Peripheral routes to persuasion

Central Route: take this route when intrigued by the marketers message/ argument and generate cognitive responses. this route involves the standard hierarchy of effects... the quality of the argument will determine attitude change. if you generate counterarguments you are less like to comply than if you generate supporting arguments. (pregnant women seeing ad about how you shouldn't drink during pregnancy, she will either agree and stop drinking or disagree and the message fails) Peripheral Route: we take this route when we are not motivated to think of the marketers arguments, we are likely to use other cues to react to the message (packaging, attractiveness of source, context of message) involves the paradox of low involvement: when we don't really care about a product so the way it is presented increases in importance.

Know the five stages of consumer decision-making. While it would most likely be an ordered list, this could show up as examples of different events that might happen at each stage and you'd need to ID those.

1. problem recognition: when we experience a large difference in our current state of affairs and the state we desire to be in. ex). Richard realizes he wants a new tv. he moved his ideal state upward because he wants a better quality (something flashier) rather than his actual state. 2. information search: surveying environment for appropriate data in order to make a reasonable decision. ex). Richard surfs the web to learn about TVs. 3. evaluate alternatives: evaluating the options you have to choose from. evoked set: the alternatives the consumer knows of the top of their head. consideration set: the options you may not initially know and then seriously consider ex). Richard compares different tv models based on reputation and features. 4. product choice: choosing a product to purchase based of our evaluations. ex). Richard chooses one model that appeals to him 5. post purchase evaluation: we experience the product/ service we experienced and decide if it satisfies our expectations.

Stages in consumer decision-making

1. problem recognition: when we experience a large difference in our current state of affairs and the state we desire to be in. ex). Richard realizes he wants a new tv. he moved his ideal state upward because he wants a better quality (something flashier) rather than his actual state. 2. information search: surveying environment for appropriate data in order to make a reasonable decision. ex). Richard surfs the web to learn about TVs. 3. evaluate alternatives: evaluating the options you have to choose from. evoked set: the alternatives the consumer knows of the top of their head. consideration set: the options you may not initially know and then seriously consider ex). Richard compares different tv models based on reputation and features. 4. product choice: choosing a product to purchase based of our evaluations. ex). Richard chooses one model that appeals to him 5. post purchase evaluation: we experience the product/ service we experienced and decide if it satisfies our expectations.

There are six common aspects of psychology that marketers attempt to persuade people to change attitudes. Be prepared to know the items and apply them. This could be as simple as a list or as being given an example and asked to respond what a specific example is. For example, I could ask "What persuasion technique is being used when a political party asks you which candidate you support, and then two weeks later asks you to donate to that specific candidate?" If I asked that the answer would be consistency. Having established that your opinion was that you supported that candidate, your likelihood of donating them has increased because it is consistent with a perception you've already expressed.

1. reciprocity: more like to give if we first receive ex). including money in mail survey questionnaire increases response rate. 2. scarcity: more attracted to items when they aren't available. 3. authority: we believe authoritative sources more than those that aren't 4. consistency: not contradicting yourself in what you say or do about an issue. responding a certain way because it is consistent with the perception you've already expressed about something. 5. liking: we agree with those we admire. ex). good-looking fund raisers raise more money than those who aren't as attractive. 6. consensus: we consider what others do before we decide what to do. ex). more likely to donate to a charity if they see names of people they know on it who have already donated.

BONUS

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Bounded Rationality

Cognitive limitations that constrain one's ability to interpret, process, and act on information. "good enough" perspective on decision making best result possible= maximizing solution adequate outcome= satisficing solution

marketing applications of the multi-attribute model: Multi-attribute models are fascinating, OK, well, maybe not fascinating, but they still tell us a lot about how we can change attitudes, so it's worthwhile to be familiar with those.

Capitalize on Relative Advantage: if someone views one brand as superior to another regarding a particular attribute, a marketer needs to convince consumers that their attribute is just as important. ex). sandra rating a schools social atmosphere high, but that is not important enough of an attribute for sandra to consider going there. so that school needs to market why it is important to take part in social atmosphere. Strengthen Perceived Product/ Attribute Linkages: if a marketer discovers that consumers do not equate their brand with certain attributes, they may develop strategies to improve these perceptions ex). "new and improved", stressing those specific qualities to consumer. Add a New Attribute: trying to distinguish themselves from competitors by adding a product feature. emphasizing a unique aspect that could set them apart. Influence Competitors' Ratings: decreasing your competitors higher ratings with the 'comparative advertising strategy'. ex). college publishes ad that list tuition rates of nearby schools and shows how their school compares and is better.

Cognitive v. Habitual v. Affective decisions

Cognitive: deliberate, rational, sequential integrating what you know about the product, weighing the pros and cons to arrive at a satisfied decision. ex). financial planning Habitual: behavioral, unconscious, automatic Affective: emotional, instantaneous

Understand both compensatory and non-compensatory models (and the subgroups for those), this could be anything from listing something as each of the model types, contrasting compensatory versus non-compensatory, or as discussed in class, I may just give a chart of ratings and ask you to list what the outcome would be using some of the different types.

Compensatory: allowing a product to make up for its shortcoming in one dimension by seeing other attributes it may excel in. simple additive rule: the option that has the largest number of positive attributes. weighted additive rule: the consumer takes into account the relative importance of each attributes by weighing them out. (similar to the multi-attribute attitude model) Affect-Referral: based of previously established "overall" impression. Non-compensatory: usually used when purchasing habitual or emotional decisions. when the option doesn't suit us in one dimension we reject it out of hand and move on to something else rather than thinking about it can suit our needs in other ways. Lexicographic: selecting the brand that is best on the most important attribute. if the decision maker feels that two or more brands are equally good on that attribute then they compare the second most and so on.. elimination-by-aspects rule: similar to lexicographic rule except they impose specific cut-offs. conjunctive rule: processing by brand. establishes cutoffs for each brand. chooses the brand that meets all the cutoffs but rejects it if it fails to meet any one of the cutoffs.

Lateral Cycling

Consumer exchanges something she owns with someone else for something she owns. ex). thrift stores, flea markets, loaning textbook to friend

Attitude Commitment

Consumers vary in their commitment to an attitude. Their degree of commitment relates to their level of involvement with the attitude object. compliance: the lowest level of involvement... we form an attitude because it helps us to gain rewards and avoid punishment. this attitude is superficial, it easily changes when others no longer monitor our behavior or if another option becomes available. ex). Buying something because a salesperson makes a pitch and then asks you to make a purchase identification: when we form an attitude to conform to another person's or group's expectations. social consequences when we choose some products over others and imitating the behavior of desirable models internalization: high level of involvement... deep-seated attitudes become a part of our value system. difficult to change because they are so important to us, ex) Coke bring out new Coke

Cognitive Dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. we will find some way to rectify the dissonance and bring our attitudes and behaviors back into consistency

SEO

Search Engine Optimization - the procedures companies use to design the content of their web sites and posts to maximize the likelihood that their content will show up when someone searches a relevant term.

Underground Economy

The underground economy in the form of flea markets and other used-product sales formats is a significant element in the U.S. market.

Inert Set

Those brands of which the consumer is aware, but towards which he or she is basically indifferent. Brands in this set are generally considered acceptable by the consumer when preferred brands are not available.

Multi-attribute model

a consumers attitude toward an attitude objects depends on the beliefs they have about several of its attributes. (how a consumer feels about things based on its attributes) 3 elements that make up this structure: 1. attributes 2. beliefs 3. importance weights

Self-regulation

a person's efforts to change or maintain their actions over time, involves careful planning ex). dieting, budgeting, training to run a marathon

Showrooming

a shopper visits a store like Best Buy to explore options for big-ticket items like TVs or appliances and then he or she finds a cheaper price for the specific model online

Focus Groups

a small set of consumers comes into a facility to try a new item while company personnel observe them from behind a mirror

Store Image

a store's "personality," composed of such attributes as location, merchandise suitability, and the knowledge and congeniality of the sales staff

Compensatory Models

allowing a product to make up for its shortcoming in one dimension by seeing other attributes it may excel in. simple additive rule: the option that has the largest number of positive attributes. weighted additive rule: the consumer takes into account the relative importance of each attributes by weighing them out. (similar to the multi-attribute attitude model) Affect-Referral: based of previously established "overall" impression.

Prospect Theory

analyze how the value of a decision depends on gains or losses

Issues related to pre, purchase, and post-purchase states

antecedent state: (your perspective going into a purchase situation) is things like your mood and the time constraints and stuff that shape your pre purchase perspective. situational factors, usage contexts, time pressure, mood, shopping orientation purchase state: is actually BUYING it. Stuff like the store experience. environmental, the shopping experience, point-of-purchase, sales interactions post purchase: would be how your satisfaction shapes the way you've interpreted your view of the store and product and stuff like that. consumer satisfaction, product disposal, alternative markets.

Be aware of the three types of issues related to purchase and post-purchase. Be able to list those states, or more likely, be able to, if I mention, "how does Mood impact consumption?" You'd say, "That's an Antecedent State." Because it is. I mean, something that happens at the store can change your mood, but if you refer to Figure 10.1 it should give you a good idea of where things go.

antecedent states: features of the individual person that are not lasting or relatively enduring characteristics. situational factors, usage contexts, time pressure, mood, shopping orientation purchase environments: environmental. the shopping experience, point-of-purchase, sales interactions post-purchase processes: consumer satisfaction, product disposal, alternative markets.

Attitude objects

anything toward which one has an attitude

Independence Hypothesis

argues that affect and cognition are separate systems so that it's not always necessary to have a cognition to elicit an emotional response. focuses on the impact of aesthetic experiences instead of the consumption of products to provide functional benefits.

Inept Set

brands the consumer considers completely unworthy of further consideration when attempting to solve a consumption problem; the consumer actively dislikes the brands in this set.

Habitual Decision Making

choices we make with little or no conscious effort.

Feedback loops

companies provide information about a consumers actions in real time and give them the chance to change the actions so they can improve. ex). fitbit

Time poverty

consumers' belief that they are more pressed for time than ever before. we have more options for spending our time so we feel pressured by the weight of these choices.

Timestyles

determined by and individuals priorities. maximizing satisfaction with what we allocate our time to

Fishbein model

developed by Martin Fishbein, is the most influential of multiattribute models. The model measures three components of attitudes: 1) salient beliefs: beliefs about the object a person considers during evaluation. 2) object-attribute linkages: probability that a particular object has an important attribute. 3) evaluation of each of the important attributes: evaluate each important attribute these three components together can show a persons overall attitude toward an object

Communications model

elements marketers need to control in order to communicate to their customers. developed this model to understand mass communications in which a source transmits information to many receivers at one time. source, message, medium and feedback

Message appeals

emotional: Anything that elicits an emotional response. Emotional appeals can be negative or positive feelings rational: present just the facts about the product or service, leading people to trust the information given to them. It also shows audiences the practicality and functionality of what you have to offer humor: good choice for gaining attention but one has to be careful that the humor does not overwhelm the primary message sex: good for getting attention but also come with risks fear: emphasize the negative consequences that can occur unless the consumer changes a behavior or an attitude.

Be familiar with the sets that we put things in. The most obvious way for this would be to give you a set of examples and have you classify them as one of those three, although it could be asked other ways.

evoked: the alternatives the consumer knows of the top of their head. consideration set: the options you may not initially know and then seriously consider inept: brands the consumer considers completely unworthy of further consideration when attempting to solve a consumption problem; the consumer actively dislikes the brands in this set. inert sets: Those brands of which the consumer is aware, but towards which he or she is basically indifferent. Brands in this set are generally considered acceptable by the consumer when preferred brands are not available.

Two-factor theory

fine line between familiarity and boredom. repetition increases familiarity and reduces uncertainty about a product but too much exposure to it can decrease results

Attitude functions

how attitudes facilitate social behavior utilitarian function: the basic principles of rewards and punishment. we develop attitudes toward products because they provide pleasure or pain. ads that stress straightforward product benefits (drink diet coke for the taste of it) appeal to the utilitarian function. value-expressive function: relate to a consumer's self-concept. a person forms an attitude because of what a product says about them. ego-defensive function: attitudes formed to protect ourselves from external threats or internal feelings. ex). products that promise to make a man feel macho appeal to protect his masculinity. knowledge function: we form attitudes because we need order, structure or meaning. applies when a person is in an ambiguous situation (wearing casual pants to work only on Friday)

Persuasion

how marketers attempt to change attitudes, there are six approaches to persuasion: 1. reciprocity: more like to give if we first receive. When you offer something first, people will feel a sense of indebtedness, which will make them more likely to comply with your subsequent requests 2. scarcity: more attracted to items when they aren't available. We tend to assume that things that are difficult to obtain are usually better than those that are easily available. So the principle of scarcity draws upon this belief by creating a sense of urgency within their content or promotional vocabulary 3. authority: we believe authoritative sources more than those that aren't It's easier to trust an authority figure in the field than it is to do your own research on any given topic. You can see this in a lot of online marketing with headlines and blog posts that include phrases like "scientists say", "experts say", "research shows", or "scientifically proven" 4. consistency: make them commit to something, whether it is a statement, a stand, a political affiliation, or an identity. The principle of consistency says that they will then feel an automatic compulsion to stick with the decision they've already made. 5. liking: we agree with those we admire. 6. consensus: we consider what others do before we decide what to do.

Balance Theory

how people perceive relations among different A.O's and how people alter their attitudes so they stay consistent. triad attitude structures: 1. a person and his perception 2. an attitude object 3. some other person or object we want the relations in the triad to be harmonious. if not, this creates tension that we are motivated to reduce by changing our perceptions in order to restore balance. ex). kristen and dan earring. kristen likes dan but she doesn't like his earring so she either alters her opinion to like his earring or stop liking dan.

Point of Purchase (POP)

in-store display that boosts impulse purchases. ex). product display, coupon dispensing machine, free samples

Consumption situations

includes a buyer, seller and a product or service. the reason we want to make a purchase and how the physical environment makes us feel.

Long tails

indicates consumer demand that are outside mainstream tastes. we no longer need to rely solely on big hits. companies can make money if they sell small amounts of items that only a few people want if they sell enough different items already. ex). amazon offering books on top of the other products they sell.

Syncretic Decisions

involve both partners ex). choosing vacation destinations

Inertia

it takes less effort to buy something familiar.

Guerrilla marketing

marketing activity in which a firm "ambushes" consumers with promotional content in places they are not expecting to encounter this kind of activity. ex). publicity stunts, viral videos, stencil graffiti

Heuristics

mental shortcuts. covariation: when we have incomplete information about a product we base out judgements on events that may or may not actually influence each other. ex). when you want to sell a used car you clean it up because a nice exterior infers reliability country of origin: a products "address" matters. associating products with countries and products from these countries benefit from these linkages. familiar brand names and higher prices: serve as a shortcut to recognize product as can higher prices, which consumers may assume suggest higher quality.

Theory of Reasoned Action

newer version of the Fishbein model; does a better job of prediction; benefits: 1. aims to measure behavioral intentions 2. recognizes the power of other people to influence what we do 3. measures attitude toward the act of buying rather than just attitude toward the product (considers the consequences of purchase) disadvantages: 1. doesn't predict the outcomes of behavior 2. some outcomes are out of our control, when the purchase requires the cooperation of other people. 3. intentional purchases can be skewed by impulse buys 4. just because our attitudes towards objects may not truly predict if we will purchase it. 5. time frame 6. voluntary acts may differ in different countries 7. impact of subjective norms different countries 8. some people are not completely in control of their actions

Purchase momentum

occurs when our initial impulse purchases actually increase the likelihood that we will buy even more (our needs are satisfied so we want to buy more things)

The three orginizational buying situations

organizational buyers: purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale. straight rebuy: a habitual decision. modified rebuy: limited decision making. when they want to repurchase a product but also want to make minor modifications new task: extensive problem solving because the company hasn't made a similar decision already.

Morning morality effect

people are more likely to cheat, lie, or even commit fraud in the afternoon than in the morning.

Social Judgment Theory

people think certain ways about attitude objects based on what they already know or feel. initial attitude: is used as a frame of reference and we categorize new information based on our existing standards. latitudes: acceptance: messages fall within the latitudes and we view them as consistent (even if they aren't) rejections: messages fall outside of the latitudes and we reject them even if they are not that different. these are all based on what we personally view/ already view about objects

Evoked Set

set of brands that comes to a consumer's mind when he thinks of purchasing a product

Collective Decision Making

situations in which more than one person chooses the products or services that multiple consumers use

Consideration Set

the alternatives a consumer seriously considers rather than just knows about initially

Atmospherics

the conscious designing of space and its dimensions to evoke certain effects in buyers.

Evaluative Criteria

the dimensions we use to judge the merits of competing options. the criteria you choose from when weighing out important attributes.

Product Placement

the insertion of real products in fictional movies, TV shows, books, and plays

Open rates

the percentage of people who open an email message from a marketer

Crowdsourcing

the practice of soliciting ideas for new products from a user community. they aren't just marketing to customers, they are marketing with them.

Situational self-image

the role a person plays at any one time. helps to determine what they want to buy or consume. ex). a man will buy flowers to impress his date, this is something he would never consider purchasing with his friends.

ABC Attitude Model (also called tri-component model)

the three components of attitude. affect: how a consumer feels about an attitude object behavior: the actions a consumer takes towards the object or the intentions to take an action cognition: what the consumer believes to be true about the attitude object.

Framing

the way an issue is posed; how an issue is framed can significantly affect decisions and judgments.

Hyperchoice

this condition forces us to make repeated decisions that may drain psychological energy while decreasing our ability to make smart choices. ex). the people that had six choices to choose from were more likely to buy the product than the people that had 24 options to choose from.

TQM

total quality management a complex set management and engineering procedures aim to reduce errors and increase quality.

Elaboration Likelihood Model (ELM)

under conditions of high involvement we take the central route to persuasion. under conditions of low involvement we take a peripheral route instead. The central route is focused on the consumer's cognitive response to the message The peripheral route focuses on other cues to decide how to react to the message

Wisdom of Crowds

under the right circumstances, groups are smarter than the smartest people in them, meaning that large numbers of consumers can predict successful products

Unplanned v Impulse Buying

unplanned buying: when someone is unfamiliar with a stores layout/ under a time pressure. if they see an item on a shelf and it reminds them that they need that item impulse buying: experiencing an urge you can't resist. ex). candy bar at check out

Non-Compensatory Models

usually used when purchasing habitual or emotional decisions. when the option doesn't suit us in one dimension we reject it out of hand and move on to something else rather than thinking about it can suit our needs in other ways. Lexicographic: selecting the brand that is best on the most important attribute. if the decision maker feels that two or more brands are equally good on that attribute then they compare the second most and so on.. elimination-by-aspects rule: similar to lexicographic rule except they impose specific cut-offs. conjunctive rule: processing by brand. establishes cutoffs for each brand. chooses the brand that meets all the cutoffs but rejects it if it fails to meet any one of the cutoffs.

Sunk Cost Fallacy

we are reluctant to waste something we have paid for

Loss Aversion

we emphasize losses more than gains

Expectancy Disconfirmation

we form beliefs about a product performance based on prior experience or communications about the product that imply a certain level of quality.

Theory of trying to consume

we should replace reasoned action with actually trying to reach a goal. this perspective recognizes the factors that may intervene with intent and performance.

Principle of Cognitive Consistency

we value harmony among our thoughts, feelings, and behaviors, and a need to maintain uniformity among these elements motivates us. when we do have inconsistent attitudes and behaviors, we will find some way to rectify the dissonance and bring our attitudes and behaviors back into consistency.

Autonomic Decisions

when one family member chooses a product. Autonomic solitary: for self and other person doesn't need to know ex). what I had for lunch today unilateral: one person decides for the both of them ex). laundry detergent