MAR357 Test2
What do similar CSV scores across countries indicate?
- CSV scores for a country can be essential information for marketers appealing to consumers in another country - Similarity in CSV scores indicates that consumers find value in the same products and experiences
What are cultural values and cultural norms?:
- Cultural values are widely held beliefs that affirm what is desirable - Cultural norms (offset of values) are rules that specify appropriate behavior and discourage inappropriate behavior in specific situations. they set boundaries for behavior and are often completely pre conscious
Name/explain some things retailers do to encourage impulse and emotional purchases
- Merchandising complimentary products together: a visual merchandising strategy that involves displaying complementary products next to each other. It's also known as secondary product placement. - Encouraging add-on purchases: Examples of add-on sales include extended warranties offered by sellers of household appliances such as refrigerators and washing machines, as well as electronics. - Creating an emotionally charged retail environment : Retail environments are sensory, and they create emotional and cognitive reactions in shoppers through sight, touch, smell, sound, and taste. Therefor doing more to make consumers feel o Giving discounts for bundled purchases
Name and explain some ways that retailers try to manipulate consumer behavior
- Olfactory marketing: a part of sensory marketing and the goal is to recall flavors, fragrances and good memories in the costumer's mind. This in order to automatically produce a good memory of the brand to impress in his mind. - Halo effect: a term for a consumer's favoritism toward a line of products due to positive experiences with other products by this maker. The halo effect is correlated to brand strength, brand loyalty, and contributes to brand equity. - Mirrorneurons: it upped the number of negative posts in one group of users and upped the level of positive posts in the other group being tested. - Auditory marketing: Music - genre, tempo and volume: the listener hears your brand name multiple times in conjunction with other elements of audio. As a result, they're more likely to connect your brand directly with the ad--and remember it when they're ready to make a purchase.
What are some major variations in cultural values?
- Other-oriented values (Concerns relationships between individuals and within groups) (individual/collective, youth/age, extended/limited family, masculine/feminine, competitive/cooperative,) - Environment oriented values (Concerns the economic, technical and physical environment) (This is shown in cleanliness, performance/status, nature, risk taking/security, tradition/change, and problem solving/fatalistic) - Self-oriented values (Concerns approaches to life that society members find desirable.) (active/passive, religious/secular, sensual gratification/abstinence, postponed gratification/immediate gratification, material/nonmaterial, hard work/leisure.)
What are some cultural variations in non-verbal communication?
- Time perspectives: Longterm (Polychronic: Relationships over schedules, Things happen at their own pace) vs. Short term (Monochronic: Linear, schedules, punctuality) - Spatial relationships: Overall use and meanings assigned to space vary widely among different cultures - Symbols and their meanings: Colors, animals, shapes, numbers, and music have varying meanings across cultures. Failure to recognize the meaning(s) assigned to a symbol can cause serious problems in understanding consumer behaviors -Interpersonal relationships: How quickly and easily do cultures form relationships and make friends? Americans tend to form relationships and friends quickly and easily than many cultures -Agreements and negotiations: How does a culture ensure business obligations are honored? How are disagreements resolved? Some cultures rely on a legal system; others rely on relationships, friendships, etc. -Cultural values related to things: The cultural meaning of things leads to purchase patterns that one would not otherwise predict. The differing meanings that cultures attach to things, including products, make gift giving a particularly difficult task. -Etiquette The generally accepted ways of behaving in social situations. Behaviors considered rude or obnoxious in one culture may be quite acceptable in another! Normal voice tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures.
What are 'microcultures'?
-A group of people who share similar values and tastes that are subsumed within a larger culture -a consumer belongs to one large culture and may move in and out of several microcultures over time -a microculture group is smaller but may be equally (or more) significant in influencing the consumer's behavior
What does ATSCI stand for? What does it measure?
-Attention to social comparison information -Assesses the extent to which a consumer is concerned about others' reaction to their behavior
What are some common approaches to resolve conflicts in family decision making? Briefly explain each.
-Bargaining: Trying to reach a compromise. -Impression Management: Misrepresenting the facts in order to win. -Use of Authority: Claiming superior expertise or role appropriateness (the husband/wife should make such decisions). -Reasoning: Using logical argument to win. -Playing on Emotion: Using the silent treatment or withdrawing from the discussion. -Additional Information: Getting additional data or a third-party opinion.
Define and explain how the following 3 concepts impact consumer attitudes, beliefs, and behavior
-Conformity: An individual's tendency to yield to the attitudes, behaviors and expectations of others -Peerpressure: Pressure to behave in accordance with group expectations. Desire to "fit in" .Consumers of all ages feel peer pressure -Authority: Ability of a person or a group to enforce the obedience of others
What do we mean by micro-cultural roles? What is role conflict? Examples?
-Each microculture has certain role expectations for its members Role indicates behaviors one should perform to belong to the group Role conflict: Situation involving conflicting expectations based on cultural role expectations. (getting tattoos in a culture that doesn't view that as respectable)
What is Guerilla marketing? Buzz marketing? Stealth marketing?
-Guerilla marketing:Marketing of a product using unconventional means -Buzz marketing:Focuses on generating excitement among consumers that spreads from consumer to consumer -Stealth marketing: Consumers do not realize that they are being targeted for a marketing message
What are some of the important factors companies must consider when approaching a foreign market?
-Homogeneous or heterogeneous cultures -What needs can the product fill? Can people afford it? -Distribution and transportation factors will the product require? -Political and legal obstacles might we face? -Ethical implications might this product face in the new culture?
What are the 3 major types of reference group influence? Briefly explain.
-Informational:Consumer uses the behaviors and attitudes of reference groups as information for making his or her own decisions -Utilitarian: Consumer conforms to group expectations in order to receive a reward or avoid punishment -Value-expressive:Consumer internalizes a group's values, or the extent to which consumers join groups in order to express their own closely held values and beliefs
What is the "Big Mac Index"? What's it used for? Why is the Big Mac a good metric to use?
-Introduced by The Economist in 1986, evaluates exchange rates by comparing the prices of Big Macs in different countries. -The higher the index for a country, the less undervalued its currency is against the U.S dollar.
What are some sociocultural values that shape culture? (Hofstede 6 Culturual Dimensions)
-Power distance (refers to the degree to which people accept inequality in power, authority, status, and wealth as natural or inherent in society) -Risk taking vs. uncertainty avoidance (Reliance on structure, order, and formal procedures) -Individualism vs. collectivism (Obligation to / dependence on groups) -Masculine vs. feminine values (Degree to which dominant cultural values are male or female oriented) -Time orientations - long term vs. short term view of life and change (Do people take a long term or short term view of life and change) - Indulgence vs self restraint
What is "Cultural Distance (CD) as defined by CSVs?
-Represents how disparate one nation or society is from another in terms of their CSV scores -Helps in comparison of consumers across different cultures
What do we mean by "culture"?:
-commonly held societal beliefs that define what is personally and socially gratifying -it shapes the nature of consumer activities by: • giveing meaning to consumption objects and activities • facilitates communication • fosters a sense of belonging
Large Power Distance
-inequality is normal -superiors are superior beings -power comes before good and evil -centralization -subordinates expect to be told what to do -children need to learn respect
Small Power Distance
-inequality is wrong -hierarchy is for practical purposes -use of power should be legitimate -children should learn to be independent -decentralization -subordinates expect to be consulted
low uncertainty avoidance
-less rule oriented, more tolerance for variety and experimentation -society readily adapts change and is willing to take risks to try something new or different, whether thats business, tech food (USA)
high uncertainty avoidance
-low tolerance for uncertainty and ambiguity -usually very rule oriented society which follows well defined rules regulations and controls -society is intolerant of unorthodox behavior and ideas (Germany)
Short Term Oriented Society
-quick results expected -control systems are established to improve short term financial performance and managers judged by these results -measures such as profit growth, ROI and residual income are key in evaluating business performance -spending for status (social consumption)
Long Term Oriented Society
-success over a long time is valued -managers are allowed time and resources to make their own contributions -measures such as market position, sales growth and customer satisfaction are key in evaluating business performance -spare their resources -do not need to be accepted by others when spending
Silent Generation
1928-1945
Baby Boomers
1946-1964
GenX
1965-1980
Millennia's (Gen Y)
1981-1995
GenZ
1996-2010
Observational research ("Ethnography")
A branch of anthropology and the systematic study of individual cultures. Ethnography explores cultural phenomena from the point of view of the subject of the study.
How do 'action-oriented' consumers differ from 'state-oriented' consumers?
Action orientation (high self regulated) denotes to the capacity to regulate emotions and thoughts to fulfill the intentions of customers. State orientation (low self regulated) indicates the inability to regulate these emotions and thoughts.
Greatest Generation
Born before 1928
Collectivism vs Individualism
Collectivism: Education is how to do Relationship prevails over task Transgression of norms leads to shame Individualism: Education is how to learn Tasks prevail over relationships Transgression of norms leads to guilt
What is a surrogate customer?
Consumer hired by another to provide input into a purchase decision - e.g. private shoppers, real estate agents, Carguru.com ratings (?)
What are 3 categories young consumers learn in the consumer socialization process? Briefly explain each.
Consumer skills: what children learn about buying, saving, investing, negotiating, product usage, price sensitivity, information search, etc. Consumption-related preferences: knowledge and values that help in evaluating products, brands, and retail outlets Consumption-related attitudes: cognitive and affective orientations toward marketplace stimuli such as advertisements, salespeople, warranties, etc.
What is a market maven?
Consumer who spreads information about all types of products and services that are available in the marketplace
How do social networks represent an important type of opinion leader?
Consumers connecting with one another based on common interests, associations, or goals
What do we mean by "divergence" with respect to microculture?
Consumers sometimes choose membership in microcultures in an effort to stand out from the crowd and assert their individuality, sometimes in opposition to the dominant cultural norms (counter culture) (emo, rock)
Social Class
Culturally defined group to which a consumer belongs - Often based on resources like income, occupation, and education - Influences lifestyles, opinions, attitudes, behaviors, tastes, and preferences
What are demographics?
Describes a population in terms of size, distribution and structure. Influences consumption behaviors both directly and by affecting other attributes of individuals such as their personal values and decision styles
What are Geodemographics?
Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
What do we mean by social class and social stratification?
Division of society into classes that have unequal access to scarce and valuable resources
How does the level of crowding in a retail store crowding affect consumer shopping?
Fewer impulse or aisle table purchases will be made by shoppers who feel stress from crowding. Overall, these studies suggest that a shopper's perception of crowding in a retail environment affects the shopper's desire to spend time in the store.
Generational Cohort
Group of people who have lived the same major experiences in their lives
What is 'stigmatization'?
In some cultures and religions, Consumers are marked in some way that indicates their place in society - e.g. the caste system in India
What seven dimensions form a Core Society Value (CSV) score for a country? Briefly explain each
Individualism -High: society expects one to take responsibility for self and family -Low: life intertwined with large cohesive groups Masculinity -High: society values assertiveness and control -Low: values caring and community Power distance -High: values the division of authority and privilege -Low: society blurs distinction among classes Uncertainty avoidance -High: values risk takers, novelty -Low: values familiarity, avoids risk Long term orientation -High: values future rewards over short term rewards -Low: society oriented in the present Indulgence -High: values extraversion, happiness -Low: values restraint Pragmatic outlook -High: the unexplained aspects of life accepted -Low: values absolute truth establishment of society
What is word-of-mouth influence on consumer behavior? What's the difference between organic and amplified WOM?
Information about products, services, and experiences that is transmitted from consumer to consumer Organic - e.g. person to person vs. Amplified - e.g. posts on social media sites
New Product Adaptation %'s
Innovators:2.5% Early Adapters: 13.5% Early Majority/Late Majority: 34% each Laggards: 16%
What is PRIZM?
It is the geo-lifestyle analysis technique that combines demographics, data on product consumption, and media usage patterns. (uses zip code)
What is "glocalization"?
Mixing of standard and customized themes (color and symbols). (I.e dunkin in china looking more chinese than a normal dunkin)
What is the "minimalist" reaction to consumer culture?
People feel they need less as soceity foreces us to feel like we need more through consuemrisim
Define "opinion leaders".
Prominent people (from politics, media, etc.) who influence the behavior of others regarding product adoption and purchase
What level of impact do reference groups have on each of the following types of consumer purchase decisions (product choice vs. brand choice)?
Publicly consumed necessity: -weak group influence for product selection -strong group influence for brand selection Publicly consumed luxury: -strong group influence for a product selection -strong group influence for brand selection Privately consumed necessity: - weak group influence for product selection -weak group influence for brand selection Privately consumed luxury: - strong group influence for product selection weak group influence for brand selection
Describe and give examples of 3 major types of Social influences on consumer behavior
ReferenceGroups: A group in society that influences an individual's behavior. -Aspirational Groups ( consumer desires to be a member, membership appeals to consumers ideal self) -Dissociative Groups (outgroup, consumers dont want to belong in this) -Primary ( frequent, close, direct relationships) -Secondary (less frequent, weak relationships) -Formal (consumer formally becomes member with rules and conduct codes) -Informal (no membership requirment, weak codes/none) Opinion leaders and market mavens: An individual who influences purchase behavior of others and/or spreads info about products and services Family members (nuclear and extended):For the majority of consumer purchases, the nuclear family is the most important influencer
What do we mean by 'sanctions' related to cultural norms?:
Sanctions are penalties for violating cultural norms, which also influence consumption patterns.
In class we discussed several ways in which "fit" and "congruity" impact consumer behavior. Explain and be able to give a couple examples.
Self-congruity is defined in this study as the parallel between consumer self-concept and brand personality that consumers feel or experience in the course of forming a consumer-brand relationship. therfore as individuals we want the brands we use to fit and align with our self concept
What are self-schemas and what is the difference between a "separated" self-schema and a "connected" self-schema?
Separated self-schema -Self-concept: consumer perceives themselves to be distinct and separate from others Connected self-schema -Self-concept: consumer perceives themselves to be an integral part of a group
Benefits and drawbacks of standardizing vs customizing a product to a new culture/local taste and preferences?
Standardization: -Benefit: lower cost structure due to economies of scale -Drawback: May not fit the foreign market's real needs and desires Customization/Adaptation: -Benefit: product is custom tailored to the foreign market's tastes and preferences -Drawback: higher costs due to product modifications
What factors play a role in deciding whether to standardize or customize a product to a new culture/local tastes and preferences?
Standardizing a product focuses more on offering the same product in both the home country and global market(s) Customizing a product focuses on offering a totally new product in the global market(s)
What is "Consumerism"?
The practice of an ever-increasing acquisition and consumption of goods
How do reference groups, opinion leaders, and WOM impact the product diffusion process?
They help it reach the tipping point: the level at which the momentum for change becomes unstoppable, threshold for inevitable change
(T/F) Individualism is higher in the West than the East
True
(T/F) Negative word-of-mouth has been proven more influential than positive word-of-mouth. Consumers tend to tell more people about unsatisfactory experiences than pleasing ones
True
(T/F) The West is shorter time Oriented than the East
True
(T/F) The east is more restrained than the west
True
(T/F) The west is more masculine than the East
True
(T/F) the east has higher uncertainty avoidance than the west
True
(T/F) there is a greater power distance in the East than the West
True
In what ways are 'impulsive shopping' and 'unplanned shopping' similar? In what ways are they different?
Unplanned buying is buying activity that occurs as a result of exposure to an advertisement or a salesperson's visit Impulsive buying is the buying of goods without planning to do so in advance, as a result of a sudden whim or impulse. (cant control this one as much, almost like the impulse overpowers you to)
What do we mean by "susceptibility to social influence"?
We want to conform to expectations as well as show off who we are, so we conform to social influence in order to meet these expectations
What are some of the differences in gender roles in American society and how are these ideas changing? In general, how do men and women differ in their approaches to processing information and decisions?
Women: -minimum emotional/social role differentiation between genders -balance between work/family -mothers decide number of children -many women in politics -religion focuses on human beings -matter of fact sexuality: sex is a way of relaxing Men: -maximum emotional/social role differentiaiton between genders -work prevails over family -fathers decide family size -few women in politics -religion focues on God -moralistic sexiality: sex is performing
Neuro-marketing
a commercial marketing communication field that applies neuropsychology to market research, studying consumers' sensorimotor, cognitive, and affective responses to marketing stimuli.
Eye movement tracking
a sensor technology that can detect a person's presence and follow what they are looking at in real-time. The technology converts eye movements into a data stream that contains information such as pupil position, the gaze vector for each eye, and gaze point.
Indulgent Society
a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun
Restrained society
a society that suppresses gratification of needs and regulates them by means of strict social norms (and laws)
What are some of the factors upon which social class are determined in American culture? In other cultures?
based on income, wealth, power, culture, behavior, heritage and prestige.
What is framing and how is it used to persuade consumers? Can you give some examples?
is the difference in consumer behavior based on if something is framed as a gain ("you could have...") or a loss ("don't miss out...")
Describe several ways that the retail environment can influence consumer behavior
o Atmospherics: effects intended to create a particular atmosphere or mood, especially in music. o Servicescape: a model developed by Booms and Bitner to emphasize the impact of the physical environment in which a service process takes place. o Virtual stores: A retail presence on the Web. o In-store elements (sounds, sights (olfactory cues (aromas), and sensory cues o Store set-up: displays, signage, colors and lighting, shelving (merchandising)
What are some major trends affecting consumer behavior around the world? Can you give some examples of each?
o Declining birthrates o Increasing affluence o Increasing life expectancy o Increasing cultural diversity
What are some common metrics used to evaluate a nation's economic strength?
o GDP - the monetary value of all finished goods and services made within a country during a specific period o GNI - the total amount of money earned by a nation's people and businesses. o Human development index - is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. o Purchasing Power Parity (PPP) - based on the cost of a standard market basket of products bought in each country.
6 factors that have an impact on consumers (and humans in general) being persuaded to act or think in particular ways.
o Reciprocity o Scarcity o Authority o Consistency o Liking o Consensus
Explain these 5 types of social power that individuals or groups can hold over others
o Reward power:group members are rewarded for conformity o Coercive power:group members are punished for breaking rules or nonconformity to norms o Referent power: an individual admires and emulates the shared characteristics of a group they want to be part of o Legitimate power: there are agreements regarding 'membership' in the group and rules for conformity to group norms o Expert power: the group possesses knowledge that members or prospective members seek/desire
Effectsofsituational influences on consumer behavior
o Time ▪ Time pressure: psychological stress that occurs when a person has less time available ▪ Seasonality: seasons represent patterns ▪ Discretionary (spare) time o Physiological cycles o Economic pressure o Environmental factors
Name and explain four types of shopping behavior we discussed in class
o acquisitional shopping: Customers go to the store intending to make purchases and acquire product or services o epistemic shopping:Customers shop to obtain information about the products they intend to purchase in the near future o experiential shopping: customers coming into a physical retail space are offered experiences beyond the traditional ones. Amenities provided may include art, live music, virtual reality, cafés and lounges, and large video display walls o impulsive shopping: buy because of impluse
What do we mean by 'self-regulatory' capacity?
people's ability to exert control over their thoughts, feelings, and actions. For example, the capacity to inhibit prejudice, make oneself feel better, or select healthy food.
Satisfaction Formula =
performance - expectations
Website tracking and research
the collection and sharing of information about an individual's activity on the internet — what they do online, and how they go about doing it.
Explain Robert Cialdini's idea of "pre-suasion". How does it work?
the practice of getting people sympathetic to your message before they experience it. It's the ability to cause people to have something at the top of their consciousness that makes them receptive to your message that's yet to come.
What do we mean by consumer 'socialization'?
the process by which young people acquire skills, knowledge and attitudes relevant to their functioning as consumers in the marketplace
What are some of the major factors the form American microcultures?
▪ Income and social class ▪ Gender rols ▪ Generational cohorts ▪ Politics ▪ Religion ▪ Ethnicity ▪ Regional differences ▪ Sports and music differences ▪ Street microcultures - goth, punk, emo, etc.