MKTG 3730 Chp 7
Who are market mavens?
generalized market influencers
Individuals sharing information with each other in a verbal form, including face-to-face, phone, and the Internet is referred to as
word-of-mouth communications
Place the steps of the adoption process in order with the first step at the top of your list and the last step at the bottom of your list
1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption
What are the three forms of reference group influence?
1. normative 2. identification 3. informational
True/False: Most people only belong to one group at a time
False
Which person is most likely to conform to group norms?
Jayla meets with a business professional group without fail every week and always dresses appropriately
Match the ways advertising uses word-of-mouth and opinion leadership to their correct descriptions
Stimulation = This involves themes that encourage current owners of a brand to talk about their impressions of the brand, preferable to prospective owners Simulation = This involves having widely acknowledged opinion leaders recommending a product or a brand in an advertisement
The process individual consumers go through when purchasing an innovation is known as the _____ process
adoption
Even though consumption subcultures based on activities are markets for those activities, they
also develop rituals and symbols involving other products or services
Reference group influence is strong when
an item is not a necessary purchase
The first person to adopt an innovation is a(n) _______, while the last person to adopt an innovation is a(n) ________
innovator; laggard
Percy is considered to be an opinion leader. He searches for information from the mass media as well as from other people and then passes the information on through social media channels to his friends and groups to which he belongs. This represents a ______ flow of communication.
multistep
What percentage of consumer purchases are estimated to be influenced by word-of-mouth communications?
over 80 percent
Viral marketing often involves
social media
In the diffusion process, purchase behavior that involves a product being purchased with some degree of regularity is referred to by the term
spread
What 4 variables does your text use to classify groups?
1. type of contract 2. strength of social tie 3. attraction 4. membership
Which is an example of dynamically continuous innovation?
A new window cleaner does not require customers to wipe the cleaner dry once applied.
What happens in the Asch phenomenon?
A person becomes most likely to agree with the judgment of others due to social pressure
Which is an example of discontinuous innovation?
An auto manufacturer has chosen to make all of its SUVs into electric vehicles
What is the main reason for firms employing a moving target market approach to marketing innovations?
An innovation's earlier purchasers differ from its later purchasers
Match each reference group to its proper description
Dissociative reference groups = These are nonmembership groups with negative desirability Aspiration reference groups = These are nonmembership groups with positive desirability
What effect do referral reward programs, used by retailers, have on consumers?
They are effective in generating positive word-of-mouth
How do brand communities add value to a brand?
Through activities that create brand engagement
True/False: A consumer's negative experience with a brand can motivate that person to engage in word-of-mouth communications
True
Match the communication flow to its correct description
Two-step flow of communication = The process by which one person receives information from the mass media or other sources and passes it on to other members of a group Multistep flow of communication = The process by which members of a group as well as opinion leaders receive information from the mass media, opinion leaders, and even from group members who aren't opinion leaders
Word-of-mouth marketing is important to marketers because
consumers are more likely to trust the opinions of people
Adoption of this type of innovation requires relatively minor changes in consumer behavior.
continuous innovation
Unlike non-opinion leaders, opinion leaders in a group are known for their _____ with a product
enduring involvement
In the context of characteristics of groups, primary groups ______ than secondary groups
influence an individual's behavior more
Both dissociative reference groups and aspiration reference groups
influence people's behavior
Debra recently visited a friend's house where she noticed a lot of beauty products belonging to a brand she had never heard of—Shimmer. The next time she went to a store, she decided to buy Shimmer products, just to try them out. What kind of reference group influence does this scenario most likely depict?
informational influence
Special Fx, a gaming company, created a fake account on a social networking website, through which it gives rave reviews of its own products. Which guiding principle for using social media has Special Fx not followed in this scenario?
maintaining transparency
Nathan's company recently hired a new sales representative. In order to welcome and impress his new colleague, Nathan has extended a dinner invitation to the fanciest and priciest restaurant in town. What kind of reference group influence does this scenario most likely depict?
normative influence
A community that interacts over time around a topic of interest on the Internet is known as a(n)
online community
Goodreads is a website devoted to book lovers. Members can converse with each other, offering book reviews and book recommendations. For its members, Goodreads is an example of a(n)
online community
What determines the degree of innovation of a product?
the changes required in the behavior of a consumer
The manner in which innovations spread throughout a market is known as
the diffusion process
Which of the following slows down the process of diffusion for an innovation?
the innovation being risky to try and difficult to understand and use
Reference group influence is strongest when
the use of a product is highly visible to a group
Why do marketers often position products as appropriate for group activities?
to use reference group influence to target consumers
When can product sampling become a potent WOM (word-of-mouth) tool?
when it involves known opinion leaders
Clarissa just wrote a glowing review on Yelp about her visit to a new restaurant in town. She also posted pictures of the meals she and her friends ate on her Instagram page with the hashtag #yummy. This best exemplifies
word-of-mouth communication
In advertising, simulation is primarily used to simulate opinion leadership, whereas stimulation is primarily used to stimulate
word-of-mouth communication
Rank the adopter categories in the process of diffusion in the order in which they adopt an innovation, beginning with the first to adopt an innovation. Place the first category at the top and the last category at the bottom
1. Innovators 2. Early adopters 3. Early majority 4. Late majority 5. Laggards
How do marketers create buzz?
1. by using product placement 2. by limiting the supply of a product 3. by providing opinion leaders product samples in advance 4. by sponsoring popular events tied to a product
Which of the following are guiding principles for marketers who wish to effectively utilize online social media?
1. maintaining transparency 2. taking advantage of the unique capabilities of each venue 3. being a part of the community
Which of the following make the diffusion process for an innovation faster?
1. the innovation being perceived to meet a need better than existing methods 2. the innovation easily having a low-cost trial 3. the innovation's positive effects being easy to observe
Which of the following speed up the process of diffusion for an innovation?
1. the innovation having fewer individuals involved in the purchase decision 2. the innovation's use being consistent with an individual's values 3. the innovation satisfying an obvious need
When is an individual most likely to conform to the norms of a reference group?
1. when the individual engages in an activity relevant to the group's functioning 2. when the individual lacks personal decision confidence 3. when the individual feels a high level of commitment to the group
Which retailer is capitalizing on word-of-mouth and opinion leadership?
A health club offers its loyal customers a month of free personal training for bringing new members into the club
What is an example of continuous innovation?
A household cleaning product is now offered in a lemon scent
Match the categories of innovations to their descriptions
Continuous innovation = Adopting this kind of innovation requires small changes in behaviors that are unimportant to a consumer Dynamically continuous innovation = Adopting this kind of innovation requires moderate changes in important behaviors or major changes in behaviors of moderate importance to a consumer Discontinuous innovation = Adopting this kind of innovation requires huge changes in behaviors of significant importance to a consumer
________ is the most salient characteristic of opinion leaders as it leads to enhanced experience with and knowledge about a product category or activity
Enduring involvement
True/False: A product is known as innovation after it has passed an objective measure of technological change
False
True/False: E-fluentials never actively use the Internet to gather and disseminate information through numerous online avenues, including social media.
False
_____ are generalized market influencers that are well-versed in technology and electronics, use multiple media devices at the same time, seek out and write online reviews and have influence in areas other than technology.
Influentials
Match the forms of reference group influence to their correct descriptions
Information influence = This occurs when a person utilizes the opinions and behaviors of a reference group as the most probable pieces of information Normative influence = This occurs when a person fulfills group expectations in order to either obtain a direct reward or to avoid from a sanction, and it is also called utilitarian influence Identification influence = This occurs when a person incorporates a group's values and norms, and it is also known as value-expressive influence
Match the adopter categories to their correct descriptions?
Innovators = They are venturesome risk takers who are capable of absorbing the social and financial costs of adopting an unsuccessful Early adopter = They are often opinion leaders who are willing to take a calculated risk on an innovation but are worried about failure Early majority = They tend to be cautious about innovations and adopt them soon, but only after they have been proved successful with others Late majority = They tend to be skeptical about innovations and adopt them mostly in response to decreased availability of a previous product or social pressures Laggards = They are usually dogmatic and oriented toward the past, engaging in limited social interaction and adopting innovations with reluctance
Match the group to the description that best depicts its relationship to social ties
Primary groups = They involve strong social ties and frequent interaction and include friends and family Secondary groups = They involve weak social ties and infrequent interaction and include professional and neighborhood associations
What often happens to the consumption patterns and symbols adopted by a consumption subculture to affirm its unique identity?
They get appropriated by the larger market for a time as a style
Why would a salesperson use the Asch phenomenon in personal selling?
To ensure maximum positive responses from potential customers
A nongeographically bound community that is based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm is known as a(n) _______ ________
brand community
People who own Harley-Davidson motorcycles are passionate about the brand. To them it represents a way of life. Owners connect with other riders from around the country, wear certain types of clothing, and participate in group rides. Thus, Harley Davidson can be thought of as a
brand community
Brand communities are important to marketers because they
build intense loyalty and add value to the ownership of their product
Creating _____ refers to the exponential expansion of word-of-mouth that occurs when "word spreads like wildfire" with limited mass media support.
buzz or buzz marketing
A distinctive subgroup of society that self-selects on the basis of a shared commitment to a specific product class, brand, or consumption activity is known as a(n)
consumption subculture
A market maven is a type of opinion leader who provides
crucial amounts of information to members of his or her group across an extensive range of products
What do marketers use to overcome diffusion inhibitors?
diffusion enhancement strategies
An analysis of an innovation from the perspective of a target market indicates potential obstacles called
diffusion inhibitors
Adoption of this type of innovation requires major changes in behavior of significant importance to the individual.
discontinuous innovation
Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.
dynamically continuous innovation
Which adopter groups should a moving target market approach focus on first?
early adopters and innovators
In the context of marketing strategies, one of the key aspects of _____ is creating buzz.
guerrilla marketing
A product, idea, or practice that is perceived to be new by a relevant individual or group is known as a(n)
innovation
Which type of reference group influence usage, while creating advertisements, has raised the most ethical concerns since it plays on people's insecurities and fears?
normative influence
A web-based service that allows individuals to construct a public or semipublic profile within a bounded system, articulate a list of other individuals with whom they share a connection, and view and traverse their list of connections and those made by others within the system is known as a(n)
online social network site
Facebook, Twitter, and LinkeIn are all forms of
online social network sites
An individual who actively interprets, filters, or provides product and brand-relevant information to that person's friends, family, and colleagues is known as a(n)
opinion leader
Dylan knows all things "technology-related." He is constantly up on the latest products and researches product information all the time. Because of this, his family and friends go to him when they seek advice on technology products. Dylan would be considered a(n)
opinion leader
Consumption subcultures have a set of shared values or beliefs; an identifiable, hierarchical social structure; and unique rituals, jargon, and modes of symbolic expression. Therefore, they act as ______ for their members.
reference groups
Product sampling is also referred to as __________
seeding
Generally speaking, from a marketing standpoint, dissatisfied consumers are
twice as likely to tell people about their negative experience
An online strategy that uses electronic communications to trigger brand messages throughout a widespread network of buyers is known as
viral marketing
