Consumer research final ch 11-14

Social Psychological

5 Types of Perceived Risk Physical risk __________ risk (damage self esteem) Functional risk Monetary risk ___________________ risk (lose self respect due to bad decision e.g. feel guilty if U buy an expensive item )

ch 12 reference Cultural informal consumption Normative Comparative

Any external influence that provides social clues can be a _________ group -________ figure -Parents -Large, formal organization -Small and ______ groups Some groups are more powerful than others and affect more of our _________ decisions. _____________ influence occurs when the reference group helps to set and enforce fundamental standards of conduct (e.g. parents exert influence on a wide range of choices). ______________ influence affects decisions about specific types of purchases (e.g. a book club)

risk

As a general rule, purchase decisions that are perceived as _________ will involve more extensive searches. _______ is felt whenever there is a belief that there may be a negative consequence associated with the decision

MENTAL ACCOUNTING PROSPECT THEORY LOSS AVERSION SUNK-COST FALLACY

Biases in Decision-Making Process ____________ _______________ decisions based on the cost of the product and the situation _____________ ____________ Risk differs when we face gains vs. losses (It defines the utility in terms of gains and losses. ________ __________ We emphasize losses more than gains (losing money is more painful to us than gaining money is pleasant) _________ _________ __________ We are reluctant to waste something we have paid for (even though the value of the item does not change whether it was given to us or we paid for it. )

compensatory additive Weighted

Buying Rules: ______________ Decision This rule considers the entire picture This is a more involved decision making process Simple _________ rule: the consumer merely chooses the alternative that has the largest number of positive attributes (i.e. gives a product a chance to make for its shortcomings) the consumer may take into account the relative importance of positively rated attributes (_________ additive rule)

ETHICS INTERNAL SOCAL RESPONSIBILITY

Corporate Ethics & Social Responsibility _________ programs have an __________ focus and could be seen as protective & prevention of bad actions or harm (usually reflected in a codes of ethics or codes conduct) While the objective of ________ __________ is to do good and establish the organization as a good corporate citizen. ________ __________ strategies are proactive.

Iconic Transfer Transition Place Ritual Cleansing

Divesting of Unwanted Items Sometimes consumers will take steps to gradually distance themselves from things that they treasure so that they can sell them or give them away eventually. ___________ ______________ Ritual: taking pictures and videos of objects before the items are discarded. ____________ ____________ Ritual: means putting the items in an out-of-the-way location for a while first. This follows the out-of-sight, out-of-mind approach ____________ _____________: preparing the item to be given away. People may wash, iron, and/or specially wrap the item before giving it away.

impulse external Low-income symbolic variety

Do Consumers Always Search Rationally? Sometimes consumers are rational and sometimes they are not. We buy things at times with no advance planning, on an _________, or do something different from what we intended. The amount of _________ search we do is surprisingly small. _______________ shoppers who have the most to lose for making poor purchase decisions do the least amount of information search. The more ________ of our identity a product is, the more search we will tend to do. Sometimes we switch brands, even if the brand we formerly chose still meets our needs. This may be related to _________ seeking, a desire to choose new alternatives over more familiar ones.

Propinquity Mere exposure Group cohesiveness

Factors Predicting Reference Group Membership Several factors make it more likely that we will be a member of a reference group ___________ (physical nearness ) as physical distance between people decreases and opportunities for interaction increase, they are more likely to form relationships _______ _____________ We come to like persons or things if we see them more often __________ ______________ the degree to which members of a group are attracted to each other and how much each values their membership in the group

Spousal Experience Socioeconomic

Factors to determine family decision making Sex roles (traditional sex roles) _________ resources (who contributes more?) ___________ (more independent decisions with _________) ________________ status (joint decisions made more by middle-class)

culture subculture role specialization involvement personal characteristics

Family Decision Making Determinants of Family Purchase Roles How families interact in a purchase decision is largely dependent on the : ______ and __________ in which the family exists the _________ __________ of different family members the degree of __________________ each has in the product area of concern, and .... the __________ _____________ of the family members

INDIVIDUALITY(1 and 2) ANTI-CONFORMITY

Fashion could be a tool of expressing _____________ and independence ____________: refers to awareness of the norm and a desire to set one's self apart from it __________-: defiance of the group is the focus

Unplanned Impulse In-store displays Point-of-purchase (POP)

In-Store Decision Making Spontaneous shopping -___________ buying (the consumer buys something that was not on planned purchase list. The reason may be due to a lack of familiarity with the store, time pressure, or just seeing something she actually needed but had forgotten) -____________ buying (occurs when the shopper experiences a sudden urge she/he can't resist) __________ ________ are one of the major information sources used to decide what to buy __________ ___ _________(_______) stimuli (A well-designed store display can boost impulse buys as much as 10%)

Monomorphic Polymorphic

OPINION LEADERS Very few people are capable of being experts in every subject __________ experts are those whose expertise applies to a limited field. __________ experts are experts in several fields.

ch 13 personal antecedent states purchase environment post purchase processes

Issues Related to Purchase and Postpurchase Activities A consumer's choices are affected by many _________ factors...and the sale doesn't end at the time of purchase __________ __________: situational factors, usage contexts, time pressure, mood, shopping orientation ___________ ___________-: the shopping experience, point of purchase stimuli, sales interactions ____________ _____________ _________: consumer satisfaction, product disposal, alternative markets

Lateral cycling lateral cycle

PRODUCT DISPOSAL ________ __________: give the products away or sell them. For instance, eBay helps people to __________ ___________ unwanted products.

Westerners Circular Hispanic

People around the world think about the passage of time very differently. ____________ tend to think of time as linear -Events proceed in an orderly sequence and there is a time and place for everything. (We do things today that will help us in the future) ________ or cyclic time is based on natural cycles (ritualistic - tradition) -This view of time is common among ________ cultures. To ignore the clock completely. People simply decide to do something when the time is right.

ch 11 Decision Object Awareness Evaluation

Stages in Consumer __________ Making You notice that on the fashion side the Fashion Object could be at the top and not the problem recognition Fashion _______ (fashion item is displayed) __________ of object Interest _________ (you try it on) Decision Outcome

Social experiences Sharing of common interests Interpersonal attraction Instant status

Motives for Shopping We can segment consumers in terms of their shopping orientation, or general attitudes about shopping. ________ _____________ (a community gathering) ___________ _____ ___________ __________ (specialized store cater for people with common interests) __________ _____________ (hangout in malls) _______ ________ (feel important - savor being waited on) The thrill of the hunt

Cultural Differences

______________ ______________ Values, beliefs, and customs differ from one culture to another Business behavior is also perceived differently for example: giving gifts may be considered bribery in places and is acceptable in others.

MARKETING MANIPULATION

________________ ________________ Disney pumps the smell of popcorn around the park entrances Consumers prefer salmon to have a pinky color. Fish farmers add dye pellets to the fish farms to help the salmon's meat look more appealing to buyers. The dye does not appear to have any adverse health effects on consumers. Some grocery retailers will offer the same cheese in different departments of the store for different prices.

Word-of-Mouth conform WOM WOM

___________________ Communication product information transmitted by individuals to individuals More reliable & influential form of marketing (2/3 of sales) Social pressure to _________ We rely on _____ at various stages (e.g. when we are unfamiliar with product category) We weigh negative _________ more heavily than we do positive comments! Negative ________ is easy to spread, especially online Determined detractors Information/rumor distortion

Brand Communities and Consumer Tribes Brandfests

________________________________________ A group of consumers who share a set of social relationships based upon usage or interest in a product (They share emotions, moral beliefs, styles of life, and affiliated product) __________ celebrated by community enable consumers to interact with others who share a similar brand passion.

Deindividuation Social loafing Risky shift diffusion conform

People in larger groups have fewer constraints on behavior ___________: individual identities become submerged within a group (At a costume party, we may act wilder than we would in our everyday lives. ) _________ _________: people don't devote as much to a task when their contribution is part of a larger group (For instance, people tend to tip less when going in together to cover a restaurant bill) ________ __________: group members show a greater willingness to consider riskier alternatives following group discussion than if members made their own decisions. (Psychologists say it could be a _______ of responsibility i.e. less accountable or ... bec. our culture values risky behavior so we _________ to this expectation)

limited expertise Experts Novice consumers Moderately knowledgeable

People with very ______________ __________ may not feel they are competent to search extensively. ___________ have a better sense of what information is relevant so they engage in selective search. ________ ________ tend to process information in terms of the big picture instead of detailed information. Who searches the most? __________ __________ consumers.

Avoidance Groups Antibrand Communities

Positive vs. Negative Reference Groups Reference groups can affect our decisions both positively and negatively ____________ _________: motivation to deliberately distance oneself from other people/groups ____________ ___________: coalesce around a celebrity, store, or brand—but in this case they're united by their disdain for it

Evaluating Alternatives Evoked Consideration evoked

Stage 3: __________ ___________ __________ Set (alternatives consumer knows about) ______________ Set (alternatives consumer is actually considering) Marketers try to have their brands in your __________ set New brands may have a better chance then old ones you passed over before

merchants Mindscape Cyberspace / cyberscape? Marketscape Landscape

SHOPPING is an EXPERIENCE Innovative ________ use 4 kinds of theming techniques _________ themes Drawn on abstract ideas & concepts, fantasy, & often possess spiritual overtones _____________ themes Build on information and communications technology _______________ themes Build on associations with man-made places __________ themes Rely on associations with images of nature, animals, and the physical body.

Problem Recognition ideal need Opportunity

Stage 1: __________ __________ Occurs when consumer sees a difference between current state and ________ state _________ recognition: actual state declines (which then triggers a desire to return to normalcy) ____________ recognition: ideal state moves upward (when a consumer recognizes an ideal state he or she wishes to achieve)

Information environment Online memory

Stage 2: ____________ Search The process by which we survey the ____________ for appropriate data to make a reasonable decision -Pre-purchase or ongoing search -_________ search -Internal or external search (internal are based on our own ________- banks while external sources come from other sources)

Problem recognition Information search Evaluation of alternatives Product choice

Steps in the Decision-Making Process

Market Maven

The ________ _________ Actively involved in transmitting marketplace information of all types (Overall knowledge of how and where to get products) Just into shopping and aware of what's happening in the marketplace

VIRAL MARKETING

The strategy of getting visitors to a Web site to forward information on the site to their friends to make more people aware.

STORE IMAGE Location knowledge Interior Return policies

_________ _________: store personality Dimensions of Store's image: __________ + merchandise suitability+ __________-/congeniality of sales staff Other intangible factors affecting overall store evaluation: __________ design Types of patrons _________ __________ Credit availability

Referent legitimate Reward Coercive Expert Information

When Reference Groups are Important __________ power: When one person admires the qualities of another and tries to copy the ___________'s behavior. It's important to marketers because consumers voluntarily modify what they do and buy to identify with the ___________. _____________ power: Granted through true authority in a situation. For instance, police officers have ___________ power _______ power: The influence held by a person who has the ability to offer a reward. ____________ power: The opposite of reward power. It is held by someone who has the ability to punish. __________ power A person who is an expert in a particular field. Due to their expertise, others will be influenced by them _________ power When someone knows something others would like to know.

Buying Rules Non-compensatory Elimination

_________ __________: When we need to use more consideration before making a decision (an extensive problem), we can categorize our decision rules into compensatory and noncompensatory. _____________________ Decision A product that is low on one attribute cannot compensate for that weakness with a strength on another attribute. e.g. BUY ONLY BRAND NAMES even if a new brand is as good This is a simpler way of making decision ___________-by-aspects rule: the buyer evaluates brands on the most important attribute

ch 14 Ethics

_________ is generally defined as the moral standards or what we perceive to be right and wrong.

The Surrogate Consumer surrogates

the _________ ___________ A marketing intermediary hired to provide input into purchase decisions Unlike opinion leaders or market mavens, we usually pay __________ for advice. Their recommendations are very influential!

Deliberate Accidental Directed Incidental

"_________" vs. "___________" Search ___________ learning: we know about a product because we have previously sought out information about that product __________ learning: We are more passive. We learn about information because over time we experience exposures to brand information. (This is sometimes called low-dose advertising. )

case study D&G they have Dolce & Gabbana, D&G, and D&G Junior. Since the chapter has been written, Dolce & Gabbana has expanded their beauty line into skincare and cosmetics. The cosmetics line was released in 2009 with Scarlett Johansson being the face of the advertising campaign, same goes with the skincare line that had released in 2014; advertising that "Dolce & Gabbana skincare with two collections, having as key ingredient Gold Flavo-Silk Tricomplex. Their main objective is to offer its customers a new way to achieve that same healthy, just-holidayed glow which all of its models seem to exude"(MG Luxury News). This is Dolce & Gabbana's way of becoming more of a full lifestyle brand, bringing more "sparkle" or "bling" to the consumer, compared to Ralph Lauren targeting their more "traditional" customers.

1) Currently, how many divisions do Dolce & Gabbana have in their company? Has it grown since this chapter was written? If so, how?

Appropriateness Economy aesthetics Quality image Fiber

1. _______________/personal style: suits you, good fit, appropriate for the occasion, comfort .. 2. ____________/usefulness: price, good buy, ease of care 3. Attractiveness/___________: beautiful, fashionable, color/pattern, fit, style 4. ___________: construction, durability, fiber 5. Other-people-directed/_________: prestige, label, sexy 6. Country of origin: Made in USA, in Italy 7. _______/fabric: natural, synthetic, organic, knits

brooke shields is risque, she played a child prostitute in one of her movies and worked with calvin klein stating something like "nothing comes between me and my calvins." Dolce & Gabbana made sure the brand had something for everyone including all fashionistas, even the ones that the design world has rejected. Most of the design world has rejected "real" people and they use tall, skinny female models or muscular males. They show "fake" people that most people could never look like. The "fake" people used can even be photoshopped to look more fake. However, D&G decided to shy away from the "fake" people and they looked for "real" people. D&G want to deliver to all different types of people and have a style for everyone. They used "real" people who are not just skinny, tall models, but who have curves and more meat on their bones. For example, Madonna does not have an average body type or style, which is why D&G designed clothes for her documentary. D&G also designed for Brooke Shields, Isabella Rossellini, and Kylie Minogue who all have different body types and styles that are more "real." When Brooke shields became D&G's celebrity endorser, she represented the brand perfectly. She had curves, she's risqué, a career woman, and ultimately the "real" person D&G wants. Another "real" person was Isabella Rossellini, who was older than typical models. She started modeling at 28 years old, a unlike typical models who are young and their careers might start to end at 28 years old. Isabella Rossellini also has a bigger bust than most models, she has scars on her back and skin from scoliosis surgery, and she has more meat on her bones. Kylie Minogue is also an older model, at 48 years old, but she does not let her age stop her from doing her job. She is not pressured by the younger models that are out there and she is herself in everything she does. Madonna, Isabella, Brooke, and Kylie all are "real" people that don't pretend to be someone they're not and they accept themselves for who they are. Both Rossellini and Shields have done many different photoshoots, including risqué ones where they have little amount of clothes on or don't have any on at all. Madonna can also be risqué with the items she is seen in. She wears whatever she wants, which can range from a full body suit to something sexy, minimally covering her body. Kylie Minogue is risqué too, where she has done sexy photoshoots and acting in lingerie and tiny outfits. They can all be risqué without being judged because they do not care what other people think, and they are okay with showing off their "real" body.

2) Do you think Dolce & Gabbana cater to the fashionistas that the rest of the design world has rejected? Why do you think they have dressed women like Isabella Rossellini, Madonna, Kylie Minogue, and Brooke Shields? Do you think these women are risqué? Why or why not?

Gay and lesbian consumers purchase the same fashion brands that heterosexuals purchase. Being gay or lesbian does not change their style or the brands they like. Anyone who has an interest in any brand can purchase it, just like Dolce & Gabbana fans. People thought that reaching out to the homosexual market would drive some people away, however, it did not stop anyone from buying the brand. Sales actually increased when D&G stated to target homosexuals. Typically, brands do not target the gay and lesbian market, which is why it was smart for D&G to do so. D&G wanted the homosexual market to know they now have a brand that welcomes, supports, and cares about them, which the homosexual market returned the support. Gabbana and Dolce are gay and they are giving the homosexual market someone to look up to. D&G also shows that it is okay to be gay and lesbian and it is okay to let the world know it. They didn't try to hide the fact that they were gay, in fact, they used their ads to tell the world they were gay.

3) Do you think gay and lesbian consumers purchase different fashion brands than heterosexuals? Do you think it was smart for Dolce & Gabbana to target this market? Why or why not?

THE AMERICAN SOCIETY: FAMILIES AND HOUSEHOLDS

Compared to organizational buying decisions:- Family purchasing, has less explicit criteria Most important, many family purchases are inherently emotional and affect the relationships between the family members

Determinant

Evaluating Criteria in Fashion Decisions ___________ Attributes: the features we actually use to differentiate among our choices.

Cultural pressures deviance Commitment Group characteristics interpersonal

Factors Influencing Conformity ___________ ___________ (the Japanese society emphasizes collective well-being and group loyalty over individuals' needs.) Fear of __________ (Individuals may believe that the group will apply sanctions to punish nonconforming behaviors) __________ (the person who is least committed to staying in a relationship has the most power because that party doesn't care as much if the other person rejects him) _________ __________ (Unanimity - Size - Expertise) (As groups gain in power, compliance increases) Susceptibility to _____________ influence (refers to an individual's need to have others think highly of him or her. )

Temporal Factors Timestyle Time Poverty

___________ ___________: Economic Time (think "time is money") We may change what we want to buy based on temporal influences like what time it is or how much time is left before we need the product. ___________ (Your priorities determine your __________ (how you allocate time among tasks) And your ____________ determines how you spend your time resource) _______ ___________ (the perceptions that we have no sufficient time .. Making us very responsive to marketing innovations that save time )

Expectancy Disconfirmation experience communications satisfied manage

___________ _________________ Model We form beliefs about product performance based on prior ___________ with the product OR ____________ about the product that imply a certain level of quality. Expectations ultimately control how ____________ we feel, (we are happy if they exceed expectations - sad if doesn't - don't think about it if it does) Marketers must ________ expectations. They can do this by only promising what can actually be delivered and by reassuring customers when products do fail

Customer Expectation demands under-promise

_________ ______________ Zones The organization can choose to accommodate the customer ________- or as it improves the range or quality of products it offers, it can alter these expectations or even choose not to pursue those customers. A firm can also _______________. Then when the firm over-delivers, the customer is pleased.

Guerilla

_________ marketing is a type of grassroots effort, which uses unconventional means and venues to push products. (unexpected, drastic, humorous, unique cost effective, customer benefit

Membership Aspirational

_________ vs. ______________ Reference Groups __________ reference groups -People the consumer actually knows (e.g. family) -Advertisers use "ordinary people" ____________ reference groups -People the consumer doesn't know but admire -Advertisers use celebrity spokespeople

Salesperson Influence expertise

__________ __________ A important in-store factor Can offer ___________ - likability - trust, etc.. Commercial friendships may also involve affection, loyalty, gift giving etc..

Heuristics Product Signals Market Beliefs Country of Origin

__________: Mental Shortcuts (enabling a person to discover or learn something for themselves) Mental rules-of-thumb for efficient decisions (e.g. if its expensive its better) price - brand name - country - store etc.. ___________ ____________someone selling a used car will try to make the car look clean because cleanliness may be associated with reliability __________ __________ The beliefs guide our decisions. For instance, someone may go to look at televisions at Best Buy instead of Target because he assumes that an electronics store would have a better selection ________ ____ _________Consumers think of Switzerland for precision in watches, Italy for leather goods, and France for wine.

Offensive Advertising

____________ ______________ Some products may be offensive to advertise e.g. personal hygiene , underwear etc.. Sexual ads could be offensive to many

CROWD POWER

is like a marketing strategy by committee. The wisdom of crowds says that groups are smarter than the smartest individuals and so groups should have influence. This is the principle behind wikis.!

FUR OFFENSIVE MANIPULATION LABOUR

issues: USE OF_______ _____________ ADVERTISING MARKETING ____________ SOCIAL RESPONSIBILITY FAIR TRADE ENVIRONMENT _________ ISSUES