MKTG 330 Exam 1

What are 3 differences between hedonic and utilitarian value?

1. hedonic is an end itself not a means 2. emotional and subjective 3. action difficult to explain objectively

True or False? The mere exposure effect works best when the consumer has low involvement in processing object, so is distracted.

True

What type of marketing strategy involves offering the same basic product to all consumers?

Undifferentiated marketing

Utilitarian or hedonic? ...usually regard maintenance

Utilitarian

What does signal theory state?

communications provide information in ways beyond explicit or obvious content

What drives companies to a high degree of consumer orientation?

competition

What is the term that refers to when you're thinking of a question that requires a solution and certain things come to mind?

consideration sets

Perception is __________.

constructive, meaning consumers construct interpretations on the fly

What is product contamination?

consumers feel uneasy about buying things that have been previously touched

Once you are through gateway, how do you make sure consumer comprehends message?

convey something substantive and lasting

Define brand repositioning.

deliberate decision to significantly alter the way the market views a product (or brand)

What is it called when consumers inaccurately receive the meaning contained in a message?

miscomprehension

Consumer involvement is a ________ variable.

moderating

What are three things that MR helps us do?

1. develop segmentation strategies 2. target specific segments 3. understand how those segments act/might act

What is the number 1 mission of any business?

To stay in business

Describe mood-congruent recall.

To the extent that mood can be controlled, memories and evaluations can be influenced

T or F? For marketers, reality = perception.

True

True or False? Stronger links are more accessible.

True

What is a mood?

a general, valenced affective state that is transient and influences judgments and behaviors

What is the First Mover Advantage?

-allows you to be the prototype -easier recall increases sales

What is ethnography?

-analyzing artifacts associated with consumption, like going through trash

What are the cons of quantitative research?

-answers may be restrictive (b/c pre-set list of options to any question) -possible confirmation bias

What are 4 types of cognitive appraisals?

-anticipation: future; hopefulness; anxiety -agency: responsibility for events; gratefulness; frustration; guilt; sadness -equity: fairness of event; warmth; anger -outcomes: relevant to goals; joyfulness; satisfaction; sadness; pride

In a global consumer culture, what are people united by?

-brand name consumer goods -movie stars -celebrities -leisure activities

What are the pros of qualitative research?

-can help identify patterns of CB that researcher didn't know beforehand -richer exploration of consumer experiences: "deep" research

What are some qualitative research tools?

-case analyses, clinical interviews, focus group interviews

How do experts differ from novices?

-category structure is more developed -have more categories, more associations, and a better understanding -have more subordinate-level categories

Affect represents ______________ and can encompass _____________.

-feelings regarding product -emotions or moods

How can a company earn more profits?

-get current customers to buy more -get new customers -retain customers

What is the most important thing to remember about product placement?

-has to make sense with show's narrative ex. Coke in American Idol, NOT Ford

How can a company appeal to the global consumer?

-identify similarities across cultures and try to achieve economies of scale -recognize cultural differences and be sensitive to them

What are 4 developments that categorization leads to?

-inferences -elaboration -evaluation -satisfaction

What physical characteristics of a product affect the message?

-intensity -color -font -numbers -spacing -shape (golden section)

What is comprehension?

-interpretaion or understanding that a consumer develops about some attended stimulus in order to assign meaning

What are source influences based on?

-likeability -attractiveness -expertise -trustworthiness

What is the capacity and duration of ST Memory?

-limited capacity -short-lived duration

When is miscomprehension greater?

-messages are complex -shown for only a few seconds -viewed only once or twice

How should marketers position product based on category and schema implications?

-position close to prototype -position away from prototype -position relevant to goal

What are 4 marketing implications of JND?

-pricing -quantity -quality -add-on purchases

What are 5 ways to improve memory?

-rehearsal/repetition -dual encoding: 2 dif. sensory "traces" are available to remember something; sounds, smell, etc. help mem. -chunking: grouping stimuli by meaning so multiple stimuli can become a single memory unit -no interference -meaningful encoding: preexisting knowledge used to assist in storing new info.

How can marketers exercise their control during the exposure stage?

-select correct medium, position within a medium, choose product distribution and placement

What are the cons of qualitative research?

-somewhat subjective -unstructured, so can be inefficient

What are the pros of quantitative research?

-statistically-validated (trends based on large number of consumers) -allows for replication--findings often generalizable

What are the 3 levels of categorization?

-superordinate: general and abstract -basic: slightly more specific -subordinate: specific type of the above

Which is the most expensive way a company can earn more revenue?

-trying to attract new customers

What can we learn from perceptual maps?

-what people think of us -what the most important product attributes are -who competition is (how their competitive offerings are positioned) -make decisions on how to position our product

What are the 2 major factors on which interpretation is based?

1. "actual" stimulus or event 2. prior expectations

What are 3 possible reactions to stimulus depending on extent to which it can be categorized?

1. Assimilation 2. Accommodation 3. Contrast

What is Jamie's 3-part definition of CB?

1. CB is more than just buying: it's acquiring, using, dispensing 2. CB is more than just products and services: it's offerings and ideas 3. CB involves more than just one person

What are the 3 factors necessary for Causation?

1. Correlation 2. Temporal antecedence 3. No third factor driving both

What are the two types of sensory memory?

1. Echoic (what we hear) 2. Iconic (what we see)

What are the two types of motivation?

1. Homeostasis 2. Self-Improvement

What are the 6 ways to enhance attention?

1. Intensity 2. Contrast 3. Movement 4. Surprise 5. Size 6. Involvement I. C. MISS

What are the 2 kinds of comprehension--explain?

1. Objective: is meaning consumer extracts consistent with what message actually stated? 2. Subjective: different or additional meaning consumers attach to the message, whether or not these meanings were intended

What are 5 components of a Brand Image?

1. Perceived product attributes 2. benefits 3. usage situations 4. users 5. manufacturer marketer characteristics

What is Maslow's hierarchy of needs/motives?

1. Physiological 2. Safety 3. Social 4. Esteem 5. Self-actualization

What are the 5 types of consumer involvement?

1. Product 2. Shopping 3. Situational 4. Enduring 5. Emotional

What is a consumer? (3 things)

1. Purchaser 2. User 3. Influencer

What are 3 types of selective perception and what do they mean?

1. Selective exposure: screening out most stimuli and exposing oneself to only a small portion of stimuli 2. Selective attention: paying attention to only certain stimuli (because there's a lot of clutter) 3. Selective distortion: consumers interpret info in ways that are biased by previously held beliefs

What are the 3 types of nonfocal attention?

1. Selective: at a party but hear your name 2. Divided: talk on phone and clean house 3. Limited: turn down radio when looking for certain address

What are the 3 phases of the perception process?

1. Sensing 2. Organizing 3. Reacting

What are the three (more specific) types of memory?

1. Sensory Memory (registry) 2. Short term (Workbench) Memory 3. Long term Memory

What are the 2 types of LTM?

1. autobiographical (episodic) memory 2. semantic memory

What are 4 reasons why CB matters?

1. business/mktg. strategy 2. we can influence how consumers act 3. shapes society 4. aid consumers to become responsible decision-makers

What are 4 ways in which motivation is enhanced?

1. consistent with our needs 2. personally relevant (involving) 3. risky 4. moderately inconsistent with our prior attitudes

What are the 4 basic segmentation variables?

1. demographics 2. geographics 3. psychographics 4. behaviorgraphics

What are 3 key facts about consumption?

1. internal factors within consumer powerfully influence comprehension process 2. comprehension includes cognitive and affective elements 3. every message sends signals

What are 3 disadvantages of secondary data?

1. may be out of date 2. definitions or categories might not be what you're looking for 3. might not be specific enough for your project

Give 3 reasons why we don't just ask people what their opinions are and how they feel.

1. people don't know why they do what they do 2. people don't want to tell you why they do what they do 3. sometimes asking them changes their behavior

What are the 3 ways in which CB is important?

1. provides an input to business/marketing strategy 2. provides a force that shapes society 3. provides an input to making responsible decisions as a consumer

What are 2 ways to improve memory?

1. recirculation 2. elaboration

What are the 2 advantages of secondary data?

1. time savings 2. low costs

Give 3 reasons why marketers need CB info.

1. understand the consumer 2. "fit" our products to needs and desires of consumer 3. develop better marketing strategies so...create VALUE, which is a personal assessment of net worth obtained from an activity

What is Miller's magic STM number?

7 +/- 2

Define perception.

A consumer's awareness and interpretation of reality

What is the difference between subliminal processing and the mere exposure effect?

A subliminal stimulus is presented below threshold of perception while with the MEE, stimulus is evidently above absolute threshold

What is the term that means "shares some traits with an existing category, but may need exceptions to rules"?

Accommodation

Operant conditioning involves what?

Altering the probability of a behavior being emitted by changing the consequences of the behavior

What does Weber state about the relationship between a stimulus's intensity and a consumer's perception?

As intensity of initial stimulus increases, consumer's ability to detect differences between 2 levels of stimulus decreases

What is one way to avoid confirmation bias?

Ask questions that should be wrong based on hypothesis

What connects nodes?

Associative links

Why do people consume?

Because they have needs AND WANTS

What is the difference between behavioral and physical sciences?

Behavioral is more dynamic with more uncertainty, making research even more critical.

What perceptual discrepancy can marketers use?

Illusions created when we are influenced by our expectations of what we see fitting with our general beliefs and stereotypes

If you want to downsize, how can you utilize knowledge of JNDs to make it successful?

Change gradually and in small amounts

What are the 2 parts of Perception?

Cognition and Affect

What are 2 synonyms for perception?

Comprehension, Interpretation

What does the mere exposure effect state?

Consumers will prefer an object to which they've been exposed

What is the process by which goods, services, or ideas are used and transformed into value?

Consumption

What type of marketing strategy serves multiple market segments each with a unique product offering?

Differentiated marketing

What is emotional contagion?

Emotional display by one person influences another

______ provide meaning to a product.

Emotions

What is the only type of MR in which researches have direct control over every stimuli a subject is exposed to (which allows them to see how subjects act when exposed to different stimuli)?

Experiments

What is the difference between implicit and explicit memory?

Explicit means you paid attention to stimulus and implicit means you didn't pay attention

During what stage of EAP does consumer come into physical contact with a stimulus?

Exposure

What is the only stage of EAP in which marketers have some control?

Exposure

What does EAP stand for?

Exposure, Attention, Perception

True or False? When consumers feel more in control, situational factors affect them more.

FALSE

True or False? Sensory memory is essential for intentional learning.

False--it's essential for cognitive learning

True or False. consumer always notices stimulus when she comes into contact with it.

False--there's the possibility of noticing the info.

True or False. Exposure is sufficient for comprehension.

False: It's NECESSARY but INsufficient

As part of PANAS, what effect does positive affect have on spending?

Good feelings = more purchases

Utilitarian or hedonic?... usually provide emotional satisfaction

Hedonic

What type of value forms the majority of purchases in the U.S.?

Hedonic

What type of value provides immediate gratification from experiencing an activity; value coming from emotions and experiences? Feel-good consumption to satisfy craving

Hedonic value

What brain term is the reason for preattentive processing?

Hemispheric lateralization

What influences our categories?

How we learn it What is important to us What we are told Culture Expertise

What side of the brain better processes metaphors?

Right side

Which consumer role isn't necessarily active?

Influencer (i.e. celeb endorsements, peer pressure)

What are the 4 components that influence value (2 internal and 2 external)?

Internal: psychology and personality; cognition and affect External: situation and social

What does subliminal processing mean?

It's the way in which the brain senses low-strength stimuli (stimuli below level of conscious awareness)

What is the difference in how kids categorize material and how adults categorize?

Kids: by material adults: by usage

Where is knowledge permanently stored?

LTM

If you want to make a cut in prices, so a positive change, should the JND be small or large?

Large, and vice versa for an increase in price/negative change

What is a change in behavior resulting from the interaction between a person and a stimulus?

Learning

_______, intentional, or unintentional, depends on perceptions.

Learning

What is the only function of business almost exclusively focused on generating revenue?

MARKETING

What is the difference between manifest and latent motives?

Manifest motives are the linkages between behavior and motives that are known and freely admitted BUT latent motives are linkages between behavior and motives that either are unknown or are such that consumer is reluctant to admit or reveal them.

Define brand leverage.

Marketers capitalizing on brand equity by using an existing brand name for new products, like brand extensions, family branding, umbrella branding

Who are the3 CB stakeholders?

Marketers, policymakers, consumers

What are autonomic measures for measuring emotion?

Means for automatically recording visceral reactions or neurological brain activity, like facial reactions, physiological response, like sweating

For effective exposure, need correct _________ and __________.

Medium; positioning

What do advertisers leverage to involve and engage target customers?

Motivation and emotion

What 3 things must be in place to promote action?

Motivation, ability, and Opportunity

________ are the reasons we act/consume

Motivations

Is information ever lost in LTM?

NO, but sometimes it can't be found

What are the 6 steps of the basic CB process cycle?

Need - Want - Exchange - Costs - Benefits - VALUE

_______ motivate behavior.

Needs

What does it mean when your brain habituates itself?

Novelty can wear off: a stimulus is too familiar and loses attention-getting ability

Where is incoming information encoded and interpreted?

ST Mem./Workbench

Describe interpretive research goals.

Seeks to explain inner meanings and motivations associated with specific consumption experiences --with consumers' words and expectations

In marketing terms, what does classical conditioning mean?

Pair our product with something that people already like, so they'll like our product more

What is a major flaw in consumers' interpretation of information?

People are overconfident, so prone to confirmation bias (like to have beliefs and intuitions confirmed)

Which type of scientific study is static with a replicable result?

Physical sciences

What does selective exposure entail?

Placing product where people will be favorably exposed to it

What is PAD?

Pleasure-Arousal-Dominance -rate feelings using number of semantic differential items that capture emotions in 3 dimensions -the theory is that pleasure, arousal and dominance are bipolar e.g. if one feels joy, he can't be sad

What is PANAS?

Positive Affect Negative Affect Scale -allows respondents to self-report extent to which they feel 1 of 20 emotional adjectives -used to see relative amount of positive and negative emotion experienced by a consumer at a given point in time -says that both emotions can occur simultaneously in complex situations

Describe primacy vs. recency effects.

Primacy: remember first things Recency: remember what you've seen most recently

What are the pros/cons of incongruity?

Pros: motivates deeper processing and increases comprehension Cons: ad.s with incongruent music liked less

Which type of research does "interpretive" fall under?

Qualitative

What are the two main data approaches to research?

Qualitative and quantitative

What type of research deals with numerical measurement and analysis?

Quantitative

What plays an important role in testing our intuitions?

Research

What explains our seemingly random thoughts?

Spreading activation

What does the "absolute threshold" mean?

Stimuli must be at such a level that we can detect them

What type of MR studies effectiveness of one or more elements of marketing mix evaluating sales of product in an actual market, like a specific city?

Test Market (Field Experiment); a.k.a. quasi-experiment

What does Weber's Law state?

The JND is always some proportion of initial stimulus volume

What does the Cognitive Appraisal Theory say about emotions?

Thoughts (appraisals) elicit emotions and is distinct from positive vs. negative valence

What type of value is derived from a product that helps consumer solve problems and accomplish tasks that are part of being a consumer? Resolves a distinct core need

Utilitarian value

How do they decide what/when/where/how to address needs?

Value judgments

What happens to sensory memory if we don't process it?

We lose it

What is the danger of a "familiar" product?

While consumers like the familiar, it can lower a consumer's motivation to process a message

What is priming?

a cognitive process in which active concepts frame thoughts and affect both value and meaning

What is an exemplar or prototype?

a concept within a schema that is the single best representative of some category

What is a memory trace?

a mental path by which a thought becomes active

What is a cognitive schema?

a type of associative network that works as a cognitive representation of a phenomenon that provides meaning to that entity

About how long does info. stay in sensory memory?

about 1/4-2 seconds

What is a moderating variable?

any variable that alters a relationship that we would otherwise expect

What is the Customer Lifetime Value?

approximate worth of a customer to a company in economic terms or overall longtime profitability of an individual consumer

What is spurious correlation and where do we see it happening?

artificial/fake relationship data mining (in some cases)

What is the term that means "readily recognizable characteristics"?

assimilation

Define product positioning.

attempt to achieve a defined brand image relative to competition

What does preattentive processing signify?

attending to something in our peripheral vision even if we are already focusing on something else

What is the gateway to perception?

attention

When does a consumer allocate cognitive capacity toward understanding some stimulus?

attention stage

What is the original product plus extra things needed to increase value from consumption?

augmented product

What does the value concept include?

basic benefits + augemented product + "feel" benefits

What is subliminal persuasion?

behavior change induced based on subliminally processing a message

What type of segmentation variable is the hardest to find out and the most useful?

behaviorgraphics

What is self-improvement motivation?

behaviors aimed at changing one's current state to a more ideal level

What does cognitive organization do?

brain assembles sensory evidence into something recognizable; comprehend stimuli

What is declarative knowledge?

cognitive components that represent facts

What are self-conscious emotions?

emotions that result from evaluation of one's own behavior: high agency; people don't like to be laughed at

How does involvement affect memory capacity?

expands/contracts capacity depending on level of involvement

Name examples of quantitative research.

experiments, analysis of pre-existing datasets (modeling), surveys

What is message congruity?

extent to which a message is internally consistent and fist surrounding info.

What is elaboration?

extent to which someone continues processing a message after she develops an initial understanding in comprehension stage

What are some examples of non-experimental primary data?

focus groups, observations, projective techniques

When do retailers use PAD?

for atmospherics

What does taxonomic categorization mean?

grouping similar objects in the same category

What do marketers NEED to know about associative networks?

how to strengthen and weaken links

What is the queuing effect?

if someone shows you a member of a category, it makes it harder to think of other members

What is elaboration?

info. can be transferred into LTM if it's processed at deeper levels

What does product orientation mean and provide an ex.?

innovation focused on making production process as efficient and economical as possible to serve customers with minimal cost Ex. Walmart

What is haptic perception?

interpretations created by way object feels

What do we tend to base our decisions on?

intuition/vivid information

On what does the ability to act depend?

knowledge/experience cognitive style intelligence education age money

What does preattentive effects mean?

learning that's developed in absence of attention becomes STRONGER the more distracted one is from attending to stimulus

What is a self-report measure?

less obtrusive because no physical contraptions; survey approach

What is a homeostasis motivation?

maintaining one in current acceptable state

What is product differentiation?

marketplace condition in which consumers do not view all competing products as identical to one another

What is a semantic memory?

memory of knowledge not tied to individual experience

What is an autobiographical memory?

memory of personal experience

What affects miscomprehension?

motivation, ability, and opportunity

What is the Associative Network?

network of mental pathways linking knowledge within memory

Where are concepts, feelings, and events stored in the associative network?

nodes

On what type of object does the mere exposure effect have the biggest effect?

novel objects

On what type of stimuli are you more likely to elaborate?

novel stimuli

What is emotional expressiveness?

obvious behavioral reactions to emotional experiences; a consumer-level variable that predicts how they'll respond to salespeople/people in ads emoting emotions

Is contrast a positive or negative feeling (usually), and what does it entail?

often negative -does not share enough in common with existing category to categorize

What is emotional intelligence (EQ)?

one's awareness of emotions experienced in a situation and an ability to control reactions to the emotions; also c-level variable; can affect segmentation

What does operant conditioning use to create (+) or (-) associations?

outcomes of behaviors

Illusions come about based on ______

perceptual expectations

Provide examples of interpretive research.

phenomenology, ethnography, netnography

What is the way a product is perceived by a consumer and can be represented by numbers and types of characteristics consumers perceive?

positioning

What does a "blue ocean strategy" signify?

positioning a firm so far away from competitors that when successful, firm creates an industry of its own and isolates itself from competitiors

What is a "marketplace condition in which consumers do not view all competing products as identical to one another"?

product differentiation

What are emotions?

psychobiological reactions to appraisals: -psychological -visceral

What does value influence?

quality of the relationship i.e.: -switching behaviors -customer loyalty -customer share -consumer satisfaction -consumer dissatisfaction

What does the Gestalt principle deal with?

seeing things as a whole rather than as its parts

What is a consumer's immediate response to information to which he/she is exposed?

sensation

What memory "storage bin" is preattentive?

sensory

What type of memory has an unlimited capacity?

sensory

Define market segmentation.

separation of a market into groups based on different demand curves associated with each group; marketplace condition and mathematical equation

What is the Just MEANINGFUL Difference and what is the buzz # in price discounting?

smallest amount of change in stimulus that would influence consumer consumption and choice -20% price drop to be effective

What does it mean to say that a category has a graded structure?

some members represent category better than others

What is the sleeper effect?

source decays faster than message

What is phenomenology?

study of consumption as a "lived experience" -use casual interviews

In regards to causation, what does temporal antecedence mean?

the "determining" variable has to come before the other ex. storks before babies

What happens to the network when one node is activated?

the activation spreads along associative links toward related concepts

In terms of attention, what does involvement mean?

the personal relevance a consumer feels toward a particular product

In terms of categorization, what does brand image refer to?

the schematic memory of a brand

What is zeitgeist?

the way time or age influences the interpretation of things

How are associative links created?

through knowledge and experience

What is opportunity to engage in behavior determined by?

time distractions amount of info complexity of info repetition of info

Much of consumer learning is _________

unintentional

What type of memory is associated with implicit memory?

unintentional learning

What is the purpose of perceptual maps?

used to depict graphically the positioning of competing products

What is benefits net burdens?

value

Define brand equity.

value consumers assign to a brand above and beyond the functional characteristics of the product

What type of storage capacity does LTM have?

very large

What do we expect to see?

what fits with our general beliefs and stereotypes

What we see depends on _______

what we expect to see

When does mere association occur?

when meaning transfers between two unrelated stimuli that consumer gets exposed to simultaneously

What is flow?

when you lose track of the outside world, because you are so fixated on what you're doing

What are mood-congruent judgments?

will judge product differently based on how you're feeling in general

Is there a lot of sharing within categories or across categories?

within

What is emotional involvement?

you experience something that induces an emotional response within you

What is recirculation?

you remember something because you encounter it a lot -6x rule of thumb for remembering -familiarity leads to likeability