Marketing Chapter 4

African american buying patterns

1. Spend more on boy's clothing, rental goods, audio equipment 2. Twice as likely to own a pager and spend twice as much for online services 3. African American women 3x more on health and beauty products 4. Typical family is 5 years younger 5. Strongly motivated by quality and choice 6. Respond more to products such as apparel and cosmetics 7. Respond more to advertising that appeal to African American pride and heritage

Three reference groups that have clear marketing implications

1. associative group 2. aspiration group 3. dissociative group

Marketers are concerned with which types of reference groups?

1. associative groups-ones to which a person actually belongs 2. aspiration groups- ones that people wish to be a member of 3. dissociative groups- ones that people wish to maintain a distance from because of differences in values or behaviors.

children learn how to purchase by

1. by interacting with adults in purchase situations 2. through their own purchasing and product usage experiences.

What three attitude-change approaches are most common?

1. change beliefs about the extent to which a brand has certain attributes 2. change the perceived importance of these attributes 3. add new attributes to the product

What three approaches to marketers use to try to change consumer attitudes toward products and brands?

1. changing beliefs about the extent to which a brand has certain attributes 2. changing the perceived importance of attributes 3. adding new attributes to the product

what four variables are central to how consumers learn from repeated experience?

1. drive- a need that moves an individual to action 2. cue- a stimulus or symbol perceived by consumers 3. response- the action taken by a consumer to satisfy a drive 4. reinforcement- the reward

A consumer's tendency to purchase and use goods and services beyond demographics in the VAL's framework.

1. energy 2. self-confidence 3. intellectualism 4. novelty-seeking 5. innovativeness 6. impulsiveness 7. leadership 8. vanity

VALS behaviors for different reasons

1. ideals-motivated groups 2. achievement-motivated groups 3. self-expression motivated groups 4. high-and-low resource groups

The five roles of individual family members in the purchase decision process are

1. information gatherer 2. influencer 3. decision maker 4. purchaser 5. user

If a company markets a low-involvement product and its brand is a market leader, attention is placed on

1. maintaining product quality 2. avoiding stock out situations so that buyers don't substitute a competing brand 3. using repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice.

strategies companies use to reduce the consumer's perceived risk and encourage purchases

1. obtaining seals of approval 2. securing endorsements from influential people 3. providing free trials of the product 4. giving extensive usage instructions 5. providing warranties and guarantees

two primary forms of personal influence

1. opinion leadership- persons considered to be knowledgeable about or users of particular products and services 2. word of mouth- the influencing of people during conversations

Information search- external

1. personal sources 2. public sources 3. marketer-dominated sources

Hispanic buying patterns

1. quality and brand conscious 2. willing to pay a premium price for premium quality and are often brand loyal. 3. Prefer buying American-made products 4. buying preferences strongly influenced by family and peers 5. consider advertising a credible product info source 6. convenience is not an important product attribute with respect to food preparation or consumption

learning refers to those behaviors that result from

1. repeated experience 2. reasoning

two decision-making styles of family decision making

1. spouse dominant 2. joint decision making ( common for cars, vacations, houses, home appliances, and electronics, family finances, and medical care.)

What two challenges must marketers overcome when marketing to Hispanic consumers?

1. the diversity of nationalities among this subculture that affect product preferences 2. the language barrier that can lead to misinterpretation or mistranslated of commercial messages when translated into Spanish.

What five situational influences have an impact of the purchase decision process?

1. the purchase task 2. social surroundings 3. physical surroundings 4. temporal effects 5. antecedent states

About what percent of all consumer conversations happen face-to-face

75 percent.

postpurchase behavior

After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied

What does lifestyle mean?

Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

purchase decision process

The five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior.

problem recognition

The initial step in the purchase decision, is perceiving a difference between a person's ideal and actual situations big enough to trigger a decision.

purchase decision

Two choices remain: (1) from whom to buy and (2) when to buy.

family life cycle

describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors

Asian American buying patterns

difficult to make generalizations due to diverse subculture. Divided into two groups 1. Assimilated, conversant in English * highly educated * good jobs and exhibit buying patterns typical of the American consumer 2. Nonassimilated * those who prefer their native tongue and customs

selective retention

means that consumers do not remember all the information they see, read, or hear, even minutes after exposure to it

subliminal perception

means that you see or hear messages without being aware of them.

word of mouth can also be a source of

negative information

stimulus generalization

occurs when a response elicited by one stimulus (cue) is generalized to another stimulus

aspiration group

one that a person wishes to be a member of or wishes to be identified with

dissociative group

one that a person wishes to maintain a distance from because of differences in values or behaviors

associative group

one to which a person actually belongs, including fraternities and sororities and alumni associations. can also form around a brand

selective perception occurs when

people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with the,.

reference groups

people to whom an individual looks as a basis for self-appraisal or as a source of personal standards

beliefs are based on

personal experience, advertising, and discussions with other people

brand loyalty results from

positive reinforcement of previous actions. A consumer reduces risk and saves time.

selective perception often occurs in the

post purchase stage of the consumer decision process, when consumers read advertisements for the brand they just bought,

What is the first stage in the consumer purchase decision process?

problem recognition- perceiving a need

low-involvement purchases

purchases are not very important to the consumer, hold little relevance, have little perceived risk, and, thus, provoke very limited information processing

stimulus discrimination

refers to a person's ability to perceive differences in stimuli

evaluative criteria

represent both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands

actual self-concept

represents how consumers in fact perceive themselves

perceived risk

represents the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences

Marketers of High Involvement Products know that their consumers constantly

seek and process information about objective and subjective brand attributes, form evaluative criteria, rate product attributes of various brands, and combine these ratings for an overall brand evaluation.

subcultures

subgroups within the larger, or national, culture with unique values, ideas, and attitudes

Consumer Behavior

the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions

percieved risk

the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences

motivation

the energizing force that stimulates behavior to satisfy a need. An individuals needs are boundless

consideration set

the group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware

word of mouth

the influencing of people during conversations. One of the most powerful and authentic information source for consumers because it typically involves friends viewed as trustworthy.

selective retention affects

the internal and external information search stage of the purchase decision process.

Involvment

the personal, social, and economic significance of the purchase to the consumer.

perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

behavioral learning

the process of developing automatic responses to a situation built up through repeated exposure to it

consumer socialization

the process through which a person acquires the knowledge and skills to function as a consumer.

Information search

the process whereby a consumer searches for appropriate information to make a reasonable decision. Process= 1. internal search 2. external search

Culture

the set of values, ideas, and attitudes that are learned and shared among the members of a group

term for post purchase anxiety

cognitive dissonance

The problem with the Toro Snow Pup was an example of selective

comprehension--consumers perceived the name to mean that snow pup was a toy that was too light to do any serious snow removal.

social needs

concerned with love, friendship, status, and esteem - things that involve a person's interaction with others

The brands a consumer considers buying out of the set of brands in a product class of which the consumer is aware are collectively called the

consideration set

limited problem solving

consumers typically seek some information or rely on a friend to help them evaluate alternatives.

VALS explains why

consumers who share the same demographics and lifestyles exhibit different behaviors and why consumers who do not share the same demographics or lifestyles exhibit the same behavior for different reasons

selective comprehension

involves interpreting information so that it is consistent with your attitudes and beliefs

cognitive learning

involves making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting your own accordingly

perceived risk affects

a consumer's information search. The greater the perceived risk, the more extensive the external search stage is likely to be.

beliefs

a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people

brand loyalty

a favorable attitude toward and consistent purchase of a single brand over time

selective perception

a filtering of exposure, comprehension, and retention.

attitude

a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way

traditional family

a married opposite-sex couple and their own or adopted children living at home. constitutes 20 percent of all households.

lifestyle

a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them

personality

a person's consistent behaviors or responses to recurring situations.

brand community

a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use

psychological needs

basic physical or biological needs required by every human being to sustain life

extended problem solving

each of the five stages of the consumer purchase decision process is used and considerable time and effort are devoted to the search for external information and the identification and evaluation of alternatives.

key traits

enduring characteristics within a person or in his or her relationships with others. 1. assertiveness 2. extroversion 3. compliance 4. dominance 5. aggression these are revealed in a person's self-concept

Routine Problem Solving

for products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. The purchase process for such items is virtually a habit and typifies low-involvement decision making.

Marketers recognize that people have an actual self-concept and

ideal self-concept

personal needs

include the need for achievement, status, prestige, and self-respect

opinion leaders

individuals who exert direct or indirect social influence over others.

reference groups affect consumer purchases because they

influence the information, attitudes, and aspiration levels that help set a consumer's standards.

personal values affect attitudes by

influencing the importance assigned to specific product attributes.

Consumers learn which

information sources to consult for information about products and services, which evaluate criteria to use when assessing alternatives, and how to make purchase decisions.

self-actualization needs

involve personal fulfillment

safety needs

involve self-preservation as well as physical and financial well-being

alternative evaluation

the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set, Clarifies information gathered by consumers by 1. suggesting criteria to use for the purchase 2. yielding brand names that might meet the criteria 3. developing consumer value perceptions.

self-concept

the way people see themselves and the way they believe others see them

beliefs about product attributes are important because

they create the favorable or unfavorable attitude the consumer has toward certain products, services, and brands.

attitudes are shaped by

values and beliefs

VALS

values, attitudes, lifestyles VALs measures the enduring differences between people that explain and predict lifestyle meaningfully.

ideal self-concept

what we would like to be

As a rule, joint decision making increases

with the education of the spouses