MKTG 305 Consumer Behavior

Kyle liked to think he could program anything digital. He created a new video game, and a major industry firm wanted to buy it from him. He was bothered by their insistence that he modify the game by including a popular product's logo on the clothing of his main character. In this example, Kyle is concerned about the practice of ________.

advergaming

How can marketers use opinion leaders to help them promote their products or services?

Target opinion leaders by studying interactions among consumers to see where they get their info (sociometry) or ask individuals if they consider themselves opinion leaders (self-designation).

Define product placement and list three examples of it.

The insertion of real products in fictional movies, TV shows, books, and plays. ex: Coca Cola and Nike apparel in the Chicago Bears football team, The Biggest Loser, American Idol. The brand is not being directly integrated into the action, it is just shown.

Define discretionary income.

The money available to a household over and above what it requires to have a comfortable standard of living.

What is acculturation? How does it differ from enculturation?

The process of movement and adaptation to one country's cultural environment by a person from another country. Enculturation is the process of learning the beliefs and behaviors endorsed by one's own culture.

What is the diffusion of innovations?

The process whereby a new product, service, or idea spreads through a population.

Describe a culture production system (CPS) and list its three components.

The set of individuals and organizations that create and market a cultural product. It has a creative subsystem to generate new symbol/products, a managerial subsystem to select, make tangible, produce, and manage the distribution, and a communications subsystem to give meaning to the new product. ex: music release 1) Katie Perry 2)Capitol Records 3) Ten Minute Media

Why is it difficult to identify consumers in terms of their ethnic subculture membership?

There are immigrants to account for; can't assume all audience in the US is white. Advertisers can't inaccurately generalize a whole ethnicity. We live in a melting pot.

Why are Hispanic American consumers attractive to marketers?

They are growing rapidly, they are young, live in traditional families, are community oriented, and geographically concentrated.

How are Gen Yers different from their older brothers and sisters?

They are hopeful for the future and most of them agree that it's important to maintain a positive outlook on life. They like change and they are jugglers who value convexity. We are also surrounded by technology.

Which of the following is generally true about Asian Americans?

They are one of the least brand-loyal of all American subcultures.

Why are Asian Americans an attractive market segment? Why can they be difficult for marketers to reach?

They are the fastest growing population group, the most affluent, best-educated, most brand-conscious, and most likely to hold tech jobs of any ethnic subculture. Big technology consumers. Hard to market because it's composed of so many subgroups w/ different languages and dialects.

What is a brand community, and why is it of interest to marketers?

A brand community is a group of consumers who share a set of social relationships based on usage of or interest in a product. They illustrate trends in consumer behavior, and members become emotionally involved in the company's welfare and will serve as brand missionaries.

How does consumer confidence influence consumer behavior?

A consumer's beliefs about what the future holds reflects how optimistic or pessimistic people are about the future health of the economy and how they're doing. This influences how much money eople pump into the economy when they make discretionary purchases.

Describe the differences among continuous innovations, dynamically continuous innovations, and discontinuous innovations, providing an example of each.

A continuous innovation is a modification of an existing product, such as when General Mills introduces a Honey nut version of Cheerios. Dynamically continuous innovations are significant change to an existing product, such as when IBM introduced a new form of typewriting. Discontinuous innovations create really big changes in the way we live, like the airplane or the television.

What is a pecking order?

A dominance-submission hierarchy where each "hen" has a position in which she is submissive to the hens above her and she dominates all the ones below her. For people, it ranks us in terms of our relative standing in society.

What is the difference between a fad, a fashion, and a classic fashion life cycle?

A fad is a very short-lived fashion. Relatively few people adopt the product, but it can spread very quickly through a specific group. A classic fashion has an extremely long acceptance cycle. Stable, low risk to purchaser.

What is the difference between a market maven and a surrogate consumer?

A market maven is a person who likes to transmit marketplace information of all types. A surrogate consumer is a person who we retain to provide input into our purchase decisions(interior decorators, professional shoppers).

Define de-individuation and give an example of this effect.

A process whereby individual identities become submerged within a group. We sometimes behave more widely at costume parties or on Halloween than we do when other individuals can easily identify us.

What is a ritual? Describe three kinds of rituals, providing an example of each.

A set of multiple, symbolic behaviors that occurs in a fixed sequence and is repeated periodically. Grooming (brush your hair 10 times a day), Gift-Giving (symbolic gift of a rose), Holiday (Christmas), Rites of Passage (marriage)

What is culture? List three dimensions social scientists used to describe a culture and give an example of each.

A society's personality, including abstract ideas (values and ethics) and material objects and services. The accumulation of shared meanings. Ecology (Japanese value products that make efficient use of space), Social Structure (the nuclear family vs. the extended family), Ideology (mixed-sex swimming in public)

________ refers to the process of movement and adaptation to one country's cultural environment by a person from another country.

Acculturation

What are tweens, and why are so many marketers interested in them?

Ages 8-14; between childhood and adolescence; express characteristics of both, able to influence easily

What is an age cohort, and why is it of interest to marketers?

An age cohort consists of peole of similar ages who have similar experiences. They share memories of cultural icons, historical events, etc. Our possessions help us identify with others of a certain age, and express the priorities and needs we encounter at each life stage.

List three basic conflicts teens face and give an example of each.

Autonomy vs. belonging, rebellion vs. conformity, idealism vs. pragmatism, narcissism vs. intimacy

How is a collection sacred? What is the difference between collecting and hoarding?

By sacralization, when ordinary objects, events, and even people take on sacred meaning. Collecting is the systematic acquisition of a particular object or set of objects, and it involves both rational and emotional components. Hoarding is merely unsystematic collecting.

Products appearing in retail stores are examples of the use of product placement.

False

What is the difference between a high-context and a low-context culture? What is an example of this difference?

High-context cultures consist of group members who tend to be tightly knit, and they infer meanings that go beyond the spoken word with symbols and gestures (most Anglos). People in a low-context culture are more literal (minority cultures with strong oral tradition).

Hillary is a typical teenager. She sees and hears ads all the time. Most of the time they are pretty good, but some ads have a trait that really bothers her. What is that trait most likely to be?

Hillary is bothered by ads that talk down to her.

What are some of the problems we encounter when we try to measure social class?

Ignores being subjective to social class. Ignores consumer aspirations.Ignores status of working wives/spouses

What are innovators? Early adopters? Laggards?

Innovators are always looking to try something new and find novel products. Early adopters have a high concern for social acceptance, but are receptive to new styles. Laggards are very slow to adopt new products.

How does lifestyle differ from income?

Lifestyle defines a pattern or consumption that reflects a person's choices of how to spend her time and money. It represents the way you elect to allocate income.

Describe the difference between a membership and an aspirational reference group and give an example of each kind.

Membership reference groups (married women) consist of people we actually know, whereas we don't know those in an aspirational reference group(USA Gymnastics team), but we admire them anyways.

Describe the processes involved when a person assimilates into a new host culture.

Movement (physical), Translation (master new set of rules), Adaptation (form new consumption patterns), Assimilation (adapt mainstream culture), Maintenance, resistance and segragation may occur

Which is more powerful, positive or negative word of mouth?

Negative comments are weighed more heavily than positive ones.

What one variable is the best indicator of social class? What are some other important indicators?

Occupational presitge because a person's occupation links strongly with their use of leisure time, use of resources, aesthetic preferences, and political orientation. Income, worldview, and taste culture are other important indicators.

What is the relationship between an opinion leader and an opinion seeker?

Opinion leaders are also likely to be opinion seekers. They are generally more involved in a product category and actively seek information.

What is an opinion leader? Give three reasons why they are powerful influences on consumers' opinions. What are some characteristics of opinion leaders?

Opinion leaders are individuals who are frequently able to influence others' attitudes or behaviors. They have social power for one of several reasons, such as they are technically competent (expert power), socially active, similar to consumers, and among the first to buy new products.

Who are acculturation agents? Give two examples.

People and institutions that teach the ways of a culture. Family, friends, the Church, local businesses, public schools, media, government agencies.

What is the difference between normative and informational social influence?

People who model their behavior after others because they take others' behavior as evidence of the correct way to act are conforming because of informational social influence; those who conform to satisfy the expectations of others to be accepted by the group are affected by normative social influence.

What is conspicuous consumption? Give a current example.

People's desires to provide prominent visible evidence of their ability to afford luxury goods. ex: David Yurman bracelets

What is word-of-mouth, and why is it more powerful than advertising?

Product information that is transmitted by individuals to individuals; often more reliable than formal marketing channel's recommendations since it comes from people we know

Name one factor that makes it more likely a person will become part of a consumer's membership reference group.

Propinquity (physical nearness), Mere Exposure (we like persons/things if we see them more often), Group Cohesiveness (group members are attracted to each other

What is the basic philosophy behind a lifestyle marketing strategy? Indicator of social class? What are some other important indicators?

Recognizes that people sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time, and how they choose to spend their disposable income. Products are the building blocks of lifestyle.

What is the risky shift, and how does it relate to going shopping with friends?

Refers to the observation that group membrs tend to consider riskier alternatives after the group discusses an issue than they would if each member made his or her own decision without talking about it with others.

How do religious subcultures affect consumption decisions?

Religious subcultures have an impact on consumer variables (personality, attitude towards sexuality, birthrates and households, income, and political views). Born-again consumers, islamic marketing

What is the difference between sacred and profane consumption? Provide one example of each.

Sacred consumption occurs when we set apart objects and events from normal activities and treat them with respect or awe (valentine's day). Profane consumption describes objects and events that are ordinary or everyday; they don't share the "specialness" of sacred ones (trip to the grocery store).

A marketing manager who wants to identify opinion leaders for her product category should do which of the following?

She should find socially active persons who are intensely interested in the product category and who are similar to other customers.

Which tend to influence our behavior more: large formal groups or small informal groups? Why?

Small informal groups, because we will conform to the social group of people we trust more than the masses that are informed by corporations. Informal groups share similar goals and interests.

Define social mobility and describe the different forms it takes.

Social Mobility refers to the passage of individuals from one class to another.horizontal - person moves from one position to another that's roughly equivalent in social statusdownward - downgrade in social statusupward - lower status fills positions of higher status

What is social class? Is it different from income and if so how?

Social class describes the overall rank of people in a society. The two are not synonymous; social class better predicts purchases that have symbolic aspects, income predicts major expenditures that aren't symbolic, and both predict purchases of expensive symbolic products.

What is a subculture? How does it differ from a microculture?

Subculture is a group whose members share beliefs and common experiences that set them apart from others(age, race, ethnicity). A micro culture consists of people who freely identify with a lifestyle or aesthetic preference (hobbyists).

What are sociometrical techniques? Under what conditions does it make sense to use them?

They trace communication patterns among members of a group. It is most precise but difficult to implement. It's best-to apply in a closed, self-contained social setting, where members are largely isolated from other social networks.

Every year, the students at a prestigious engineering school remove a car from the parking lot and place it on the highest point of the roof of the main engineering building. The students have been doing this for decades, but not once has anyone ever confided to an outsider how it was done. This is a classic example of a ritual.

True

What is de-ethnicization? Give an example.

When a product we associate with a specific ethnic group detaches itself from its roots and appeals to other groups as well. Bagels were a Jewish staple that is mass-marketed today.

What is advergaming? Give an example.

Where online games merge with interactive advertisements that let companies target specific types of consumers. DQ Tycoon lets consumers run their own fast-food franchise

What are some industries that stand to benefit most from the increasing affluence and vitality of the senior market?

beauty aging products, discretionary products, health products, companies that highlight perceived age

Define conformity and give three examples of it. Name three reasons why people conform.

change in beliefs or actions as a reaction to real or imagined group pressure, like stoping at a traffic light. People conform because of cultural pressures, fear of deviance, commitment, environmental cues, group unanimity, size and expertise.

According to the principle of least interest, the person who is least ________ has the most power in a relationship.

committed to staying in the relationship

Meagan is planning her wedding and wants everything to be just right, from the invitations and table settings to the ceremony and music selections. Because she feels overwhelmed by all of the information to sort through and the choices to make, she hires a wedding planner to make many of the decisions and purchases for her. Meagan's wedding planner is best described as a(n) ________.

consumer surrogate

Japan is a very tightly knit culture with rich history and social identification. In this culture, people tend to infer meanings that go beyond the spoken word. This classifies Japan as a ________ culture.

high-context

Sandra Jackson decided to become a nurse after several years as an elementary teacher. She still wanted to help people; she just wanted to do it differently. Sandra's case is an example of which of the following?

horizontal mobility

Which functional area of culture is most closely related to the idea of a common worldview?

ideology

Political candidates who get the most media exposure are more likely to win an election because of the effect of ________ in determining one's set of referents.

mere exposure

If a social researcher wanted to investigate social status in a small city, her best choice for a questionnaire would be one that included questions or observations on education, area of residence, total family income per year, and ________.

occupation prestige level of household head

What are some of the most efficient ways for marketers to connect with college students?

online advertising, sense of humor

If the super rich bought "shredded Levi's jeans" to wear to formal parties, they would be exhibiting a sophisticated form of conspicuous consumption known as ________.

parody display

List three types of social power, giving an example of each.

referent power (Lady Gaga uses polaroids) information power (Women's Wear Daily can make or break a company with their reviews) legitimate power (authority of police officers) expert power (Hawking promotes US Robotics bc of his knowledge and experience in the area). reward power (approval of judges on American Idol) Coercive power (threats from bullies)

What is a current example of parody display?

the fashion of old ripped jeans, old jeeps