Mkt 374 (Ch 1-4)

Exchange

A transaction in which two or more organizations or people give and receive something of value.

"The whole is greater than the sum of its parts."

Gestalt roughly means whole, pattern, or configuration, and this perspective is best summarized by the saying

Demographics

Statistics that measure observable aspects of a population, such as birthrate, age distribution, and income

interpretant

is the meaning derived (e.g., rugged, individualistic, American).

Exposure

occurs when a stimulus comes within the range of someone's sensory receptors.

two basic measures of memory

recognition and recall

Interpretation

refers to the meaning that we assign to sensory stimuli.

Exposure, Attention, and Interpretation

three stages of perception

two important criticisms of marketing

1. Some feel that marketers contribute to the moral breakdown of society when they promote hedonistic pleasure and encourage the pursuit of humanism at the expense of spirituality and the environment. The marketing system creates demand that only its products can satisfy. The argument against this thought is that the need is already there, and marketers simply recommend ways to satisfy it. Marketing creates awareness that the need exist; it does not create the need. 2. Also that it manipulates the masses. This includes online communications. Markets arbitrarily link products to desirable social attributes to foster a materialistic society. Marketers focus on the irrational value of the goods they symbolize. However, some feel that products meet existing needs, and marketing activities only help to communicate the availability of the good or service. The economic cost of time we would need search for products is diminished

global consumer culture

A culture in which people around the world are united by their common devotion to brand name consumer goods, movie stars, celebrities, and leisure activities.

Important reasons why consumers can experience limited market access

Access might be limited because of physical, mental, economic, or social barriers. There are 11 million U.S. adults that have conditions that make it difficult for them to leave home to shop. This can be minimized through the use of technology and other resources.

How Role theory help us to understand consumer behavior

As in a play, each consumer has lines, props, and costumes necessary to put on a good performance. Because people act out many different roles, they sometimes alter their consumption decisions depending on the particular "play" they are in at the time. The criteria they use to evaluate products and services in one of their roles may be quite different from those used in another role.

Quality:

At Ford, "Quality is job 1."

Attributes

Bounty paper towels are "the quicker picker upper

How learning new information make it more likely that we'll forget things we've already learned

Decay causes a structural change in how we learn and remember. Forgetting also occurs because of interference. When we learn new information, it displaces previous information. Because we store information in memory as nodes that link to one another, we are more likely to retrieve a meaning concept that is connected by a larger number of links. As we learn new information, a stimulus loses its effectiveness in retrieving old responses.

Nostalgia

Described as a bittersweet emotion; the past is viewed with both sadness and longing. References to "the good old days" are increasingly common, as advertisers call up memories of youth—and hope these feelings will translate to what they are selling today.

external memory

During the consumer decision-making process, this internal memory is combined with ------- that includes all of the product details on packages and other marketing stimuli that permit brand alternatives to be identified and evaluated

The three stages of information processing as we commit information about products to memory.

Encoding, Storage, and Retrieval

Intensity, Durations, Discrimination, Exposure, and Relevance

Five factors that can lead to stimulus adaptation

Exposure

Frequently encountered stimuli tend to habituate as the rate of exposure increases.

One example of augmented reality

Google when showing routes to destinations.

Lifestyle

Grey Poupon mustard is a "higher-class" condiment

Psychologists study consumer behavior from a mental / brain information processing perspective while sociologists study consumer behavior from a group behavior perspective.

How would psychology and sociology approaches to the same issue differ

Cognitive learning theory approaches

In contrast to behavioral theories of learning this approach stress the importance of internal mental processes. This perspective views people as problem solvers who actively use information from the world around them to master their environment. Supporters of this view also stress the role of creativity and insight during the learning process. 4-7.

Why U.S. phone numbers have seven digits

Initially, researchers believed that STM was capable of processing between five and nine chunks of information at a time, and for this reason they designed phone numbers to have seven digits.

Consumer Behavior

It is the study of the process involved when individuals or groups select, purchase, use, or dispose of products, services or experiences to satisfy needs and desires

How associative memory like a spider web

Knowledge structures can be thought of as complex _____________ filled with pieces of data. This information is placed into nodes connected by associative links within these structures. Pieces of information that are seen as similar in some way are chunked together under some more abstract category. New, incoming information is interpreted to be consistent with the structure already in place.

Price Leadership

L'Oreal's Noisôme brand face cream is sold in upscale beauty shops, whereas its Plenitude brand is available for one-sixth the price in discount stores—even though both are based on the same chemical formula

Intensity

Less-intense stimuli (e.g., soft sounds or dim colors) habituate because they have less sensory impact.

Users

Levi's Dockers are targeted primarily to men in their 20s to 40s

How marketers can use repetition to increase the likelihood that consumers will learn about their brand

Many classic advertising campaigns consist of product slogans that have been repeated so many times that they are etched in consumers' minds. Conditioning will not occur or will take longer if the CS is only occasionally paired with the UCS. One result of this lack of association may be extinction that occurs when effects of prior conditioning reduce and finally disappear. This can occur, for example, when a product is overexposed in the marketplace so that its original allure is lost.

Lifestyle, Price leadership, Attributes, Product classes, Competitors, Occasions, Users, and Quality

Marketers can use many dimensions to carve out a brand's position in the marketplace. These include:

Example of how does the sense of touch influence consumers' reactions to products

Moods are stimulated or relaxed based on sensations reaching the skin, whether from a luxurious massage or the bite of a winter wind. Touch has even been shown to be a factor in sales interactions (holding an item makes a consumer feel attached to it; touch can increase tips/coupon redemption). We are more sure about what we perceive when we can touch it.

Competitors

Northwestern Insurance is "the quiet company."

How Popular culture relate to marketing and consumer behavior

Our lives are also affected in more far-reaching ways, ranging from how we acknowledge cultural events such as marriage, death, or holidays to how we view social issues such as air pollution, gambling, and addictions.

Halo effect

People react to other, similar stimuli in much the same way they responded to the original stimulus.A drugstore's bottle of private brand mouthwash deliberately packaged to resemble Listerine mouthwash may evoke a similar response among consumers, who assume that this "me-too" product shares other characteristics of the original.

Examples of Market Segmentation

Product usage, demographics (e.g. age sex, income), and psychographics (psychological and lifestyle characteristics).

three problems with measures of memory for advertising

Response biases, memory lapses, and memory for facts versus feelings

"people often buy products not for what they do but for what they mean. "

Role theory suggest that when people act out different roles in their lives, they also alter their consumption decisions depending of the particular" play" or "role" they are in at the time. These roles might include "up-and-coming executive," "geek," "hipster" or "big man on campus." Products help users establish their identity in these roles, provide nostalgic attachments, offer interdependence and elicit emotional bonds such as love. One example of this is Peeps candy. These marshmallow products have no nutritional value but have a group of devotees that use Peeps in decorations, slide shows, and sculptures. The Peeps brand has created nostalgic attachment as this brand has an image or personality consistent with the underlying needs of the consumer.

three types of memory

Sensory, short-term (STM), and long term memory (LTM)

Discrimination:

Simple stimuli tend to habituate because they do not require attention to detail

Pioneering

Some evidence indicates that information about a _____________ brand (the first brand to enter a market) is more easily retrieved from memory than follower brands because the first product's introduction is likely to be distinctive and, for the time being, no competitors divert the consumer's attention.

Subliminal Messages

Some research by clinical psychologists suggests that people can be influenced by _______-_______under very specific conditions, though it is doubtful that these techniques would be of much use in most marketing contexts. Effective messages must be very specifically tailored to individuals, rather than the mass messages required by advertising.

Relevance

Stimuli that are irrelevant or unimportant will habituate because they fail to attract attention

Duration

Stimuli that require relatively lengthy exposure in order to be processed tend to habituate because they require a long attention span

why greenwashing is a problem for marketers

Studies show that almost one-fourth of U.S. consumers feel they have no way of knowing how true a claim might be, and one report shows that 95 percent of consumer companies that market products as "green" make misleading or inaccurate claims

Product class

The Mazda Miata is a sporty convertible.

two examples of important legislation that relate to U.S. consumers

The Pure Food and Drug Act in 1906, the Federal Meat Inspection Act in 1907, the Foreign Corrupt Practices Act in 1977 and the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act are examples given in the text.

Schema

The desire to follow a script or _________ helps to explain why such service innovations as automatic bank machines, self-service gas stations, or "scan-your-own" grocery checkouts have met with resistance by some consumers, who have trouble adapting to a new sequence of events.

Heavy users

This group account for a substantial proportion of revenues. They are the customers that are more likely to be loyal. These customers represent the best opportunity to cross-sell and up-sell. This is why it is important for businesses to learn about them.

Market Segmentation

This strategies means targeting a brand only to specific groups of consumers rather than everybody-even if it means that other consumers who do not belong to this target market are not attracted to that product.

The economics of information perspective argues that advertising is important

This view emphasizes the economic cost of the time spent searching for products. Accordingly, advertising is a service for which consumers are willing to pay, because the information it provides reduces search time

psychology and sociology

Two different disciplines that study consumer behavior

This is an important distinction as we learn to work with those of other cultures

Why is Business Ethics an important topic

A popular song might also be heard in many situations in which the product is not present. When the unconditioned stimulus appears in the absence of the conditioned stimulus, it can lead to extinction of the effect of conditioning

Why is it not necessarily a good idea to advertise a product in a commercial where a really popular song plays in the background?

Occasions

Wrigley's gum is an alternative at times when smoking is not permitted

difference between C2C and B2C e-commerce

___ is businesses conducting transactions with consumers. ___ is consumer-to consumer business, made possible by websites like www.etsy.com, www.craigslist.com, and www.ebay.com.

Popular culture

__________ consisting of the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market, is both a product of and inspiration for marketers.

Instrumental conditioning

also known as operant conditioning, occurs as the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes.

Short-term memory (STM)

also stores information for a limited period, and it has limited capacity. Similar to a computer, this system can be regarded as working memory; it holds the information we are currently processing

Business ethics

are rules of conduct that guide actions in the marketplace. These are the standards against which most people in a culture judge what is right or wrong, good or bad. However, the notions of right and wrong differ among people, organizations, and cultures.

free recall test

ask consumers to independently think of what they have seen without being prompted for this information first —obviously this task requires greater effort on the part of respondents.

Virtual reality

integrates the physical senses with digital information. Unlike augmented reality that delivers a combination of both sensory experiences, ------- provides a totally immersive experience that transports the user into an entirely separate 3D environment.

A positioning strategy

is a fundamental part of a company's marketing efforts as it uses elements of the marketing mix (i.e., product design, price, distribution, and marketing communications) to influence the consumer's interpretation of its meaning.

Market access

is the consumer's ability to find and purchase goods and services

object

is the product that is the focus of the message (e.g., Marlboro cigarettes)

Greenwashing

is the promotion of environmentally friendly products, but often, the claims are false or exaggerated.

sign

is the sensory image that represents the intended meanings of the object (e.g., the Marlboro cowboy).

Long-term memory (LTM)

is the system that allows us to retain information for a long period. Elaborative rehearsal is required in order for information to enter into -------- memory from short-term memory. This process involves thinking about the meaning of a stimulus and relating it to other information

unconditioned stimulus (UCS)

naturally capable of causing the response (dried meat powder)

conditioned stimulus (CS)

not initially cause salivation (stimulus), but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only. (Bell)

Classical conditioning

occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a similar response because it is associated with the first stimulus.

Sensory memory

permits storage of the information we receive from our senses. This storage is temporary; it lasts a couple of seconds at most

Other kinds of research

promote research as a way to study an issue, not to promote change.

Transformative consumer research

promotes research that includes the goal of helping people or brings about social change. This idea views consumers as collaborators who work to realize change, rather than as an issue that needs to be research.

Interpretivism

questions the assumptions of positivism. It stresses the importance of subjective experiences, and that meaning is in the mind of the individual. We develop meaning based on cultural, and there is no right or wrong answer.

Augmented reality

refers to media that superimposed one or more digital layers of data, images, or video over a physical object.

Big Data

refers to the collection and analysis of extremely large datasets. For example, Macy's used GPS phone signals from Macy's parking lots on Black Friday to estimate whether the department store would meet its sales projections for that day.

Attention

refers to the extent to which processing activity is devoted to a particular stimulus.

Episodic memories

relate to events that are personally relevant. As a result, a person's motivation to retain these memories will likely be strong. Couples often have "their song" that reminds them of their first date or wedding or some remember the first time they went on a date or what happened at their high school prom.

recognition test

subjects are shown ads one at a time and asked if they have seen them before.

Role Theory

the perspective that that much of consumer behavior resembles actions in a play

Object, sign, and interpretant

the three semiotic components of a marketing message

positivist approach

to consumer behavior emphasizes that human reason is supreme and that there is a single, objective through that science can discover. This stresses functionality, technology, and rationality

social marketing

uses marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving.