MKT 351 EXAM 3-Pham

ritual situations

a socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning

indirect method of evaluation

assume consumers will not or cannot state their evaluative criteria (projective technique and perceptual mapping)

momentary conditions

reflect temporary states of being, such as tired, being ill, having extra money, being broke, etc.

symbolic performance

relates to aesthetic or image-enhancement performance

instrumental performance

relates to the physical functioning of the product

product analysis

examines the purchase or use of a particular product or brand

responding to consumer problem

-developing a new products or altering existing one -modifying channels of distribution -changing pricing policy -revisiting advertising strategy

approaches to reevaluate or alter decision to reduce dissonance

-increase the desirability of the brand purchased -decreased the desirability or rejected alternatives -decrease the importance of the purchase decision -reverse the purchase decision(return the product before use)

satisfying consumer expectations

1) creating reasonable expectations through promotional efforts 2) maintaining consistent quality so the reasonable expectations are fulfilled

marketing strategy and problem recognition steps

1. discovering consumer problems 2. responding to consumer problems 3. helping consumers recognize problems 4. suppressing problem recognition

desire to resolve problem(2 factors)

1. the magnitude of the discrepancy between the desired and actual states and 2. the relative importance of the problem

steps for developing situation-based marketing strategies

1. use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage situations that influence the consumption of the product 2. survey a larger sample of consumers to better understand and quantify how the product is used and the benefits sought in the usage situation by the market segment 3. construct a person-situation segmentation matrix, rows are major usage situations and columns are groups of users with unique needs or desires 4. evaluate each cell in terms of potential(sales volume, price level, cost to serve, competitor strength, etc.) 5. develop and implement a marketing strategy for those cells that offer sufficient profit potential given your capabilities

emotion research

Critical in helping marketers anticipate consumer reaction to problems and train customer service personnel to respond appropriately (ex. surveys, focus group research, and personal interviews)

brand loyalty

a biased behavioral response expressed over time by a decision-making unit with respect to one or more alternative brands out of a set of such brands that is a function of psychological processes

embarrassment

a negative emotion influenced by both the product and the situation

instrumental motives

activate behaviors designed to achieve a second goal

situational influence

all those factors particular to a time and place that do not follow from knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior

projective technique

allows the respondent to indicate the criteria someone else might us

relationship marketing

an attempt to develop an ongoing, expanding exchange relationship with a firm's customers

surrogate indicator

an attribute used to stand for or indicate another attribute

Net Promoter Score (NPS)

an indirect word-of-mouth measure of true attitudinal loyalty; 3 categories of consumers are promoters, passively satisfied, and detractors; NPS=promoters minus detractors

human factors research

attempts to determine human capabilities in areas such as vision, strength, response time, flexibility, and fatigue and the effect on these capabilities of lighting, temperature, and sound (ex. slow motion/time-lapse, video recording)

relative importance of evaluative criteria

constant sum scale(most common direct) and conjoint analysis(most common indirect)

assumption 2

consumers have the skill and motivation to find the optimal solution; reality- consumers lack both the skill and motivation to do so (bounded rationality-a limited capacity for processing information)

assumption 1

consumers seek one optimal solution to a problem and choose on that basis; reality-consumers have all sorts of "metagoals" (the general nature of the outcome being sought) that are different from this

repeat purchasers

continue to buy the same brand though they do not have an emotional attachment to it

disjunctive decision rule

establishes a minimum level of performance for each important attribute; all brands that meet or exceed the performance level for any key attribute are considered acceptable

conjunctive decision rule

establishes minimum required performance standards for each evaluative criterion and selects the first or all brands that meet or exceed these minimum standards

antecedent states

features of the individual person that are not lasting characteristics such as momentary moods or conditions

activity analysis

focuses on a particular activity, such as preparing dinner, maintaining the lawn, or swimming, then surveys or focus groups attempt to determine what problems consumers encounter during the performance of the activity

committed customer

has an emotional attachment to the brand or firm

the disposition situation

how you dispose of products and their packaging

the usage situation

how you use a certain product

rational choice theory

implicitly or explicitly assumes a number of things about consumer choice that often are not true

direct method of evaluation

include asking consumers what criteria they use in a particular purchase or in a focus group setting, noting what consumers say about products and their attributes

physical surroundings

include decor, sounds, aromas, lighting, weather, and configurations of merchandise or other materials surrounding the stimulus object

generic problem recognition

involves a discrepancy that a variety of brands within a product category can reduce; increasing this results in total market expansion

selective problem recognition

involves a discrepancy that only one brand can solve; firms attempt this to gain or maintain market share

extended decision making

involves extensive internal and external search followed by a complex evaluation of multiple alternatives and significant post purchase evaluation, doubt about it is likely

limited decision making

involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little post purchase evaluation

nominal/habitual decision making

involves no decision per se, occur when there is very low involvement with the purchase (brand loyal purchases and repeat purchases)

decoy effect

involves placing a third and clearly inferior brand in the choice set to influence choice outcomes

attitude-based choice

involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of the choice

product nonuse

occurs when a consumer actively acquires a product that is not used or used only sparingly relative to potential use

post purchase dissonance

occurs when a customer has doubts or anxiety regarding the wisdom of a purchase made and is a function of the following: -the degree of commitment or irrevocability of the decision -the importance of the decision to the consumer -the difficulty of choosing among the alternatives -the individual's tendency to experience anxiety

consumption guilt

occurs when negative emotions or guilt feelings are aroused by the use of a product or a service

consumer-to-consumer sale

occurs when one consumer sells a product directly to another with or without the assistance of a commercial intermediary

inactive problem

one of which the consumer is not aware; require the marketer to convince consumers that they have the problem and that the marketer's brand is a superior solution to the problem

active problem

one the consumers aware of or will become aware of in the normal course of events; require the marketer only to convince consumers that its brand is the superior solution

key characteristics of situations

physical surroundings, social surroundings, temporal perspectives, task definition, and antecedents

consumer decision

produces an individual carefully evaluating the attributes of a set of products, brands, or services and rationally selecting the one that solves a clearly recognized need for the least cost

crowding

produces less satisfactory purchases, an unpleasant shopping trip, and a reduced likelihood of returning to the store

judgements of brand performance on specific evaluative criteria

rank ordering scales, semantic differential scales, and likert scales; SAM is a graphical approach designed to tap more directly into the pleasure-arousal-dominance dimensions of emotions

lexicographic decision rule

requires the consumer to rank the criteria in order of importance, then selects the brand that performs the best on the most important attribute, if two or more tie on that attribute they are evaluated on the second most important attribute and so on

elimination-by-aspects decision rule

requires the consumer to rank the evaluative criteria in terms of their importance and to establish a cutoff point for each criterion, those that do not meet or exceed the cutoff point are dropped from further consideration

attribute-based choice

requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands

perceptual mapping

researcher uses judgement to determine dimensions underlying consumer evaluations of brand similarity

aromas

scented environment produces a greater intent to resist the store, higher purchase intention for some items, and a reduced sense of time spent shopping

the purchase situation

situation in which you make a purchase (mood can affect, atmosphere of store, etc.)

temporal perspectives

situational characteristics that deal with the effect of time on consumer behavior; limited purchase time often limits the search

problem analysis

starts with a problem and asks respondents to indicate which activities, products, or brands are associated with those problems

compensatory decision rule

states that the brand that rates highest on the sum of the consumer's judgments of the relevant evaluative criteria will be chosen

affective choice

tends to be more holistic in nature, brand is not decomposed into distinct components each of which is evaluated separately from the whole, choices often based on the immediate emotional response to the product or service

churn

term used to refer to turnover in a firm's customer base

sensory discrimination

the ability of an individual to distinguish between similar stimuli

switching costs

the costs of finding, evaluating, and adopting another solution

affective performance

the emotional response that owning or using the product or outlet provides

purchase involvement

the level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase

assumption 3

the optimal solution does not change as a function of situational factors such as time pressure, task definition, or competitive context; reality-context effects are common

social surroundings

the other individuals present in the particular situation

atmospherics

the process managers use to manipulate the physical retail environment to create specific mood responses in shoppers

task definition

the reason the consumption activity is occurring

problem recognition

the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process

store atmosphere

the sum of all the physical features of a retail environment; influences customer judgments of store quality and image

evaluative criteria

the various dimensions, features, or benefits a consumer looks for in response to a specific problem

actual state

the way an individual perceives his or her feelings and situation to be at the present time

desired state

the way an individual wants to feel or be at the present time

the communication situation

the way someone receives a message

moods

transient feeling states that are generally not tied to a specific event or object

consummatory motives

underlie behaviors that are intrinsically rewarding to the individual involved

colors

warm-reds and yellows are more arousing than cool colors-blues and greys

servicescape

what atmosphere is referred to when describing a service business such as a hospital, bank, or restaurant

center stage effect

where a product is physically located has an influence on preference for that product