CB Final Ch 9-14

The availability heuristic is a shortcut/rule-of-thumb/ bias in which a consumer relies on most easily-recalled information (as a consequence, often recent information) when making a decision. Also, as a consequence, the person ignores less-easily recalled information even if it is statistically (and obviously) more important.

True

One unifying factor that helps to describe the Asian American subculture is an emphasis on family

True

The social identity theory argues that each consumer has several "selves" that relate to groups. These linkages are so important that we think of ourselves not just as "I," but also as "we."

True

The term "Asian" refers to 20 ethnic groups, the largest of which is Chinese

True

The store literally named 'The Gap' came about because many younger people wanted to actively distance themselves from parents and other older and "uncool" people. The uncool people is an example of a(n) __________ group in this case.

avoidance

Arianna Sande is an analytical planner with a present focus. She views time as something that allows her to enjoy her life...for this reason, she tends to seek out opportunities for hedonic consumption. Arianna has a ____________ perspective on time

feast

Minimal Group Paradigm

People tend to favor their group members, even if they are randomly, arbitrarily, or superficially assigned E.g., in an experiment, participants are divided into groups A and B for an arbitrary reason such as shirt type or color preference. After being distributed into arbitrary groups, individuals begin to show favoritism to members of their group and prejudice towards members of other groups. This shows that there doesn't need to be an ideological justification, benefits, or personal factors in group biases. Simply being a member of a group is enough for biases to occur

Global consumer culture, such as the success of McDonald's, unites consumers around the world by their common devotion to brand-name consumer goods, movie stars, celebrities, and leisure activities

True

It would be difficult to sell consumers life insurance if their notion of time is like a mirror

True

Muslims will make up more than one-quarter of the earth's population by the year 2030, and during that same period analysts expect the number of U.S. Muslims to more than double

True

difference between inertia and brand loyalty

Inertia is NOT Brand Loyalty. One is laziness, the other is conscious, committed Decision Making.

Components of Social Class

Occupational prestige •Is stable over time and similar across cultures •Single best indicator of social class Income •Wealth not distributed evenly across classes (top fifth controls 75% of all assets) •How money is spent is more influential on class than income

Most Americans will state that they are busy and always rushed for time. This perception is referred to as

time poverty

Types of Heuristics

•Covariation (what is observed = all of the product; e.g., we judge a used car by how clean it is and how good it smells) •Country of Origin (COO) Effect (where a product/service/brand comes from determines its quality; e.g., we equate French wine to good wine) ▪Ethnocentrism (belief that foreign products are inferior vis-à-vis local) ▪Xenocentrism (belief that foreign products are superior vis-à-vis local) •Familiar Brand Names Higher Prices ^last 2 immediately assume higher quality

How do marketers measure social class

•Education •Occupation •Income •Zip Code? •Race? •Neighborhood? •Ownership? •Credit score?

Person who conducts the information search and controls the flow of information; identifies possible vendors and products for group consumption

Gatekeeper

is an umbrella term that describes people of many different backgrounds. About 60% are from Mexico with the next largest group (from Puerto Rico) making up less than 10%. It also captures Central Americans, Dominicans, South Americans, and Cubans. The segment is relatively easy to find with more than 50% living in the major metropolitan areas of Los Angeles, New York, Miami, San Antonio, San Francisco, and Chicago

Hispanic Americans

Brandon Daniels loves flea markets and garage sales. He spends most of his Saturday mornings going from one to another. About once a month, he holds his own garage sale just to get rid of some of the items he purchases during the month. Brandon is actively engaged in ________.

lateral cycling

If a firefighter told you to leave your apartment, you would comply because the firefighter has ________ power.

legitimate

People tend to favor their group members, even if they are randomly, arbitrarily, or superficially assigned

minimal group paradigm

Mr. Mukesh Ambani, an Indian industrialist, and a billionaire, loves making overt statements and loud signals about his social class. He drives a $350,000 2020 Ferrari GTC4Lusso, and his need for status is very high. Mr. Ambani is a

parvenu

Sandra decided to become a nurse after several years as an elementary teacher. She still wanted to help people but in a different manner. Sandra's case is an example of which of the following

Horizontal mobility

culture production system (CPS)

A culture production system is the set of individuals and organizations that create and market a cultural product. It has three major subsystems: •Creative •Managerial •Communications

Brand Community

A group of consumers who share a set of social relationships based upon usage or interest in a product •Brand communities go beyond buzz - they create actual value (Collective Value Creation) •E.g., "Bangers" - fans of the show Big Bang Theory; HOG; Xbox Halo Players; Mini owners, Starbucks, Red Bull, Apple, etc.

A component of a person's subculture is

All age race ethnic background

Name and describe the most significant brand community that you belong to

Apple I am the initiator (person who brings up the idea or identifies the need) The person who always sees a smartphone other than an iPhone and insists its inferior, even jokingly gagging when I see a Samsung. Sometimes I will jokingly turn my head and ignore/disregard someone when they're talking right after making fun of them for not having an iPhone to signify that we iPhone users are above them and I do not care to hear what they have to say, even if it's not about the phones anymore. I bring up the topic of them not having an iPhone and go to extreme lengths to show them that their phone is not adequate and not accepted unless it's an iPhone.

Pitfall/potential danger/dark side of de-ethnicization

Cultural Appropriation - the unacknowledged or inappropriate adoption of the customs, practices, ideas, etc. of one people or society by members of another and typically more dominant people or society. (Redskins, cornrow wigs, Mahjong chinese game, Gucci turban)

heuristics

Mental Shortcuts or Rules-of-Thumb

income based marketing

Two factors contribute to an (overall) upward income trajectory: •A shift in women's roles •Increases in educational attainment -College Wage Premium = (what workers with college degrees earn) - (what workers without college degrees earn)

My Subculture

athletes? Gamers? Partier?

social class

the overall rank of people in a society •"Haves" versus "have-nots" •Social class is determined by income, family background, and occupation •Universal pecking order: relative standing in society •Social class affects access to resources

De-ethnicization

the process occurs when a product formerly associated with a specific ethnic group is detached from its roots and is marketed to (and appeals to) other subcultures or groups. E.g., the bagel becomes mainstream, pizza, Taco Bell, yoga, Cinco de Mayo, St. Patrick's Day, etc.

Consensual Purchase Decisions

those decisions for which members agree on the desired purchase, differing only in terms of how it will be achieved

In 1965, the CEO Pay Ratio in the US was 140. In 2018, it was 20

False 1965 - 20 2018 - 278

represent a significant racial subculture, making up about 12.3% of the U.S. population in the last census. They feel misrepresented and underrepresented in media. They allocate about two-thirds of their incomes to housing, transportation, and food

African Americans

Social class remains an important way to categorize consumers. However, marketers fail to use social class information as effectively as they could because of which of the following reasons? Social class

All ignores intergenerational mobility ignores status inconsistencies ignores subjective social class is non-standardized across countries and cultures ignores consumers' aspirations to change class standing ignores the social status of working wives

Defining/targeting an ethnic group is easy, because it is stable and not a moving target

False

Social Identity Theory

Each of us has multiple selves that relate to groups. We think of ourselves as not just "I," but "we."

Pocari Sweat learned that in an Islamic culture such as in Thailand, they could not use promotions used in Japan focusing on replenishing sweat after a sauna bath or after a hangover, because of lack of sauna/bath culture as well as absence of a word for hangover in an alcohol-forbidding culture

False Countries swapped

A teacher loses her job post-pandemic and is forced to join the welfare rolls. This is an example of upward social mobility.

False Downward Mobility

Gemba

Japanese term for the one true source of information Vick's Vaporizer - The case of Gurcharan Das, and his approach to P&G's Vicks Vaporub - knowing the needs and pulse of the market, going to the source of the facts, going to the Gemba

one brand that personifies you the most. Name one (of 5) dimension of this brand, in particular, that personifies you. List at least 6 personality traits that you and this brand have in common

New Amsterdam Extroversion 1. Impulsiveness 2. Need For Uniqueness 3. Need for Affect 4. Willingness to spend money (YOLO) 5. Susceptibility to interpersonal influence 6. Need for Control

refers to the creation of artificial divisions among people such that some members get more resources than others by virtue of their relative standing, power, or control in the group

Social Stratification

Conjoint analysis is a versatile marketing research technique that can provide valuable information on the hierarchy of consumers' needs for a product that helps to understand the preference consumers accord to the attributes of a product

True

Discretionary income is the money available to a household over and above that required for a comfortable standard of living

True

Gemba, in Japanese, means "the one true source of information." For marketers, it equates to going to the source of the facts

True

Groups

We belong to groups. We crave acceptance and desire to fit in. Groups possess social power and influence our consumer decisions.

Zeth Pyan wants to be "just like Mike" (basketball star Michael Jordan) and has for many years. Zeth has purchased Jordan gear, follows Jordan's career, and he has often thought about how to give back to his community the way MJ has. Which of the following reference group terms would apply to Zeth Pyan and his relationship with Michael Jordan?

aspirational reference group

Person who actually makes the purchase

buyer

Shannon Reeves and Tish Phillips remember their days as student protesters in the 1960s. Shannon remembers seeing Jim Hendrix at Woodstock and Tish remembers burning her bra in front of the central administration building at Yale. These memories about cultural heroes and events are one of the chief characteristics of an age

cohort

When online posts that are really negative may make the writer look harsh and judgmental, people sometimes soften them by couching them by including phrases such as, "I'll be honest," "God bless it," or "I don't want to be mean, but ..."

disperferred marker effect

We form beliefs about product performance based on our prior experience with the product or communications about the product that imply a certain level of quality

expectancty disconfirmation model

Mr. Ratan Tata, an Indian industrialist, own the Tata Group (valued at $100 bil.). His net worth is more than $1 bil. However, Mr. Tata does not make overt statements and signals about his social class. He is down-to-earth, drives a $20,000 car, and his need for status is low. Mr. Tata is a

patrician

Culture is best described as a society's

personality

Noah Jones: "I found out yesterday during the lecture that my girlfriend's sister was coming to visit, so I had to hurry up and do the dishes. I had my computer set up on the counter and was paying more attention to the lecture than I was to the dishes, which resulted in cutting my hand on a knife!" Noah, on his own admission, is analytical and monochronic (does not like to multitask). He usually feels time poor and under pressure. He has a __________ perspective on time. Noah's friend, Arianna Sanders, on the other hand, is an analytical planner with a present focus. She views time as something that allows her to enjoy her life. For this reason, she tends to seek out opportunities for hedonic consumption. Arianna has a ____________ perspective on time

pressure cooker, feast

Keely Skluzacek has a tough assignment. She is to live in Japan for the next five years and successfully introduce her company's line of cosmetics to Japanese women. Her company's management hopes that living with a Japanese host family in an average neighborhood, commuting to work every day, eating native food, and speaking Japanese will help Keely involve herself in the society more quickly than if she lived separate from her hosts. The company's management wants Keely to use the ______________ model

progressive learning

A(n) ________ is an actual or imaginary individual or group conceived of having significant relevance upon an individual's evaluations, aspirations, or behavior

reference group

Culture

society's personality Culture is the accumulation of shared meanings, rituals, norms, and traditions the fundamental determinant of a person's wants and behaviors acquired through socialization processes with family and other key institutions. E.g., religion, nationality, sexual orientation, organizational culture, etc.

A ________ is defined as a group whose members share beliefs and common experiences that set them apart from others

subculture

Accommodative Purchase Decisions

those decisions for which members have different preferences or priorities and they cannot agree on a purchase to satisfy the minimum expectations of all involved

problems associated with social class segmentation

•Ignores status inconsistencies •Ignores intergenerational mobility •Ignores subjective social class •Ignores consumers' aspirations to change class standing •Ignores the social status of working wives •Non-standardized across countries and cultures (It's becoming more difficult to identify social class from product choices. Think about how many college students you know who have a Coach purse but eat ramen noodles for dinner)

5 Roles in Collective Decision Making

•Initiator: person who brings up the idea or identifies the need •Gatekeeper: the person who conducts the information search and controls the flow of information; identifies possible vendors and products for group consumption •Influencer: the person who tries to sway the outcome of a decision •Buyer: the person who actually makes the purchase •User: the person who actually consumes the product/service

Digital Opinion Leaders

•Power users (online opinion leaders) •Influence impressions (brand-specific online activity) •Mass connectors (6.2% users à 80% influence impressions)

How does social class help marketers predict consumer behavior?

•Social class is a better predictor of lower to moderately priced symbolic purchases (e.g., football tickets) •Income is better predictor of major nonstatus/nonsymbolic expenditures (e.g., food) •Need both social class and income to predict expensive, symbolic products (e.g., sports car)

subculture

•Social identity is that part of the self that our group memberships define. The categories that matter in establishing our consumer identity are subcultures (Goths, Gamers, Hipsters)

Which American ethnic subculture is the fastest-growing racial group

Asian American

Consumers communicate the information vigorously to one another and they also participate in a two-way dialogue with the opinion leader as part of a/an

influence network

have higher incomes, are more educated, and have technical jobs. This is a group that has a great deal of marketing potential but it is also difficult to target. This is because it is made up of many culturally diverse subgroups that use different languages and dialects

Asian Americans

the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help consumers make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives

Decision Making

Person who tries to sway the outcome of a decision

influencer

5 Characteristics of Decision Making

1. Controlled (direct awareness, use of STM, careful, conscious evaluations), e.g., moving to a new town. 2. Effortful (information search & evaluation leads to energy/resource expenditure), e.g., subscription to Consumer Reports, paid membership on an informative blog. 3. Objective (based on object-related information), e.g., 12 oz of Cherry Coke has 150 calories. 4. Adaptive (a mental process of effectively reacting to a change in situation/stimuli), e.g., now that I am type-2 diabetic, Cherry Coke is not for me. 5. Scarce(STM capacity and duration are limited, leading to a perpetual bottleneck), e.g., infomercial ads elicit buying behavior past midnight

Steps in Psychological Processes that align with steps in (or elements of) the decision-making process?

1. Motivation 2. Learning, memory, beliefs 3. beliefs, values, feelings 4. Integration 5. Learning, Satidfaction

Steps in the decision making process

1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Product choice 5. Feedback

3 types of opinion leaders

1. The Market Maven: Change through info and ideas: Actively involved in transmitting marketplace information of all types. Into shopping and aware of what's happening in the marketplace. Overall knowledge of how and where to get products. (Vaseline found an influencer in Kodiak, Alaska.) 2. The Connector: Change through (knowing) people: Natural hubs that galvanize people. They know people. They're all about connecting with people. (Oprah Winfrey and her book club; your friend that has thousands of "friends" and connections on social media) 3. The Salesperson: Change through persuasion: They take an idea, make it sticky and accessible, and position it to get a tribe behind it. They are storytellers. E.g., door-to-door salesperson with the Kirby Co. (vacuum cleaners)

Opinion Leadership

A person whose opinions about something such as a product or issue have a big influence on the opinions of others. They are widely known and trusted. Therefore, they have the power to influence opinion and behavior. Companies try building partnerships with opinion leaders. E.g., a computer repair technician.

is the process of movement and adaptation to one country's cultural environment by a person from another country. It is the process of transitioning from one culture to another that contains components of both the old and new culture

Acculturation

is the conscious designing of retail space and its various dimensions to evoke certain effects in buyers

Atmospherics

People born between 1946 and 1964 belong to

Baby Boomer Generation

Role of marketing in this change of idea of family

Chase the "American Dream," hire help

3 types of decision making

Cognitive - deliberate, rational, sequential (buying house) Habitual - behavioral, unconscious, automatic (Brand Loyalty) Affective - emotional, instantaneous (Framing Effect, where you'd choose 80% fat free over 20% fat)

Those decisions for which members agree on the desired purchase, differing only in terms of how it will be achieved

Consensual Purchase Decisions

refers to the set of individuals and organizations (such as Disney) that create and market cultural products

Culture production system (CPS)

Old/Archaic Idea of family

Family as an economic unit; extended families; social support system; all hands on deck. "It takes a village."

Sacred consumption involves consumer objects and events that are ordinary

False

An aspirational membership reference group consists of people we actually know. In contrast, although we don't know those in a membership reference group, we admire them anyway

False Membership-people the consumer actually knows Aspirational-people the consumer doesn't know but admires

According to sunken-cost fallacy, risk differs when we face gains versus losses

False That's the prospect theory •Sunk-cost fallacy: We are reluctant to waste something we have paid for (e.g., snowed out football game - paid for vs. won for free)

People born between World War I and World War II belong to the Baby Boomer Generation

False The baby boomer cohort consists of people whose parents established families following the end of World War II and during the 1950s

Product disposal is a typical antecedent state

False it's a postpurchase process

Sara admires the qualities of the Alpha Phi group on her college campus. Since she has decided to try and pledge this group, she begins to imitate the qualities that she perceives the group has. The fraternity seems to be displaying information power with respect to Sara and her behavior

False referent power

Brand loyalty is related to cognitive decision-making

False related to habitual decision-making

Which of the following is FALSE about B2B/organizational decision making? -It involves one or just a few people -It places more emphasis on personal selling -It requires precise, technical specifications -It involves substantial dollar volume -It is based on past experience and careful weighing of alternatives

It involves one or just a few people

How is the COVID-19 pandemic changing family structures in the USA?

Lost jobs, furloughs, working remotely, role sharing, role switching, role reversal, "inner circles," caretaking, caregiving, tussle between independence and dependence. Stronger bonds, falling divorce rates, a mini baby boom? "Way too much time to think..."

The Weeknd, a Canadian hip hop singer, recently sang 'Starboy,' which featured the 530 horsepower, 190 mph, 0-60 mph in 4.8 seconds, $335,600 USD luxury sedan Bentley Mulsanne. The Weeknd's lifestyle is lavish. He likes to express his individuality. Fans describe him as emotional and expressive. What do you think is his view of luxury goods

Luxury is indulgence

How would businesses, marketing managers, and consumer behaviorists need to change as family structures, roles, and consumer behaviors go through another transformation post-pandemic

Managing and talking to the intersection of (and possible clash between) chosen families and biological families. Understanding roles & buying power better

household decision making

Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

Membership vs Aspirational vs Avoidance Groups

Membership reference groups -People the consumer actually knows -Advertisers use "ordinary people Aspirational reference groups (celebs) •People the consumer doesn't know but admire •Advertisers use celebrity spokespeople Avoidance/disassociative groups: motivation to distance oneself from other people/groups (e.g., NRA, a political party, anti-vaxxers, GAP)

Marketers are aware of one specific self-regulation concept in decision-making. So, they rely on post-morning telemarketing campaigns, afternoon food promotions, and evening online shopping promotions. What concept are we talking about?

Morning Morality Effect

Marketers must know the needs and wants of their customers. Which of the following presents the most accurate picture of the typical elderly consumer today

Most are active, interested in what life has to offer, and are enthusiastic consumers with the means and willingness to buy many goods and services.

has become Generation Z's endlessly repeated retort to the problem of older people who just don't get it, a rallying cry for millions of fed up kids. Teenagers use it to reply to cringey YouTube videos, Donald Trump tweets, and basically any person over 30 who says something condescending about young people — and the issues that matter to them. BMW recently used it on Twitter

OK Boomer

Person who brings up the idea or identifies the need

initiator

5 perspectives on time

Time is a ____________. •Pressure Cooker (analytical and monochronic; I usually feel like I am under pressure and I shop in a methodical manner). •Map (analytical but focus on the future and tend to multitask; I tend to engage in extensive information search and comparison shopping). •Mirror (analytical and polychronic, but I have a past temporal orientation -- as opposed to the time as a map people; I am risk averse and I stick to brands I trust). ***Me, I am weary of the chance I buy something I don't already know I like and end up not liking it in turn wasting my time and money. •River (very spontaneous with a focus on the present; I go shopping on the spur of the moment.). •Feast (analytical planner with a present focus; I view time as something that allows me to enjoy my life...for this reason, I tend to seek out opportunities for hedonic consumption). ***Could be me after covid

Allison uses her money to buy things that will last and have enduring value. She conducts extensive pre-purchase research and makes logical decisions rather than emotional or impulsive choices. Allison is considered part of the "luxury is functional' group

True

In an example of social gaming highlighted in class, Dave Nesvacil classified his social gaming behavior as immersive, social, an escape mechanism, and something that gave him a sense of accomplishment. He also said that he would be devastated if gaming was taken away from him

True

Kosher and Halal food forbid pork, both require similar rituals for butchering meat

True

Person who actually consumes the product/service

User

Modern Idea of Family

We two, ours two (or three...2.5, actually); nuclear families (a freak anamoly/accident lasting 15 years).

A consumer thinking, "Now that I am type-2 diabetic, Cherry Coke is not for me" is a decision based on which of the following characteristics of decision-making

adaptive

reference group

an actual or imaginary individual or group conceived of as having significant relevance upon an individual's evaluations, aspirations, or behavior

In the process of ________, new immigrants adopt products, habits, and values they identify with the mainstream culture

assimilation

An Instapage article shared by your instructor detailed 5 authentic brands. Dove, Patagonia, Chobani, and Zappos were four of them. What was the fifth brand

buffer

Definition and 6 Sources of Social Power

capacity to alter the actions of others •Referent power: someone consumers admire (e.g., Zachary & HOG RUBs, Lady Gaga & Polaroid, Kim Kardashian & designer clothing, Brad Pitt & UNICEF, etc.) •Information power: someone who knows something consumers would like to know (e.g., editors of specialty magazines, sports bookies, astrologers, fortune tellers, religious leaders, etc.) •Legitimate power: power by virtue of social agreements (e.g., police officers, soldiers, professors, etc.) •Expert power: power by virtue of knowledge about content area (e.g., restaurant and movie critics, Stephen Hawking endorsing U.S. Robotics, doctors, scientists, etc.) •Reward power: a person or group with the means to provide reinforcement (e.g., pay raises, LinkedIn recommendations, etc.) •Coercive power: social or physical intimidation (e.g., aggressive salespeople, telemarketers, etc.)

You have a friend who is constantly referring people to the right expert or service to solve their problem. This friend of yours loves networking and talking with people just for the sake of doing it. When they're talking to people, people say, "Wow — your friend knows everyone!" Your friend has reached the limit for the number of friends on Facebook. Your friend is always focused on people. What kind of an opinion leader is your friend?

connector

The process whereby a product formerly associated with a specific ethnic group is detached from its roots and marketed to other subcultures (e.g., bagels) is called

deethnicization

Home shopping parties may activate ________, in which the individual at the party may get so caught up in the party spirit that he or she orders products that would normally not be purchased.

deindividuation

This occurs when our individual identities are submerged in the group. In other words, we don't stay out alone so we may behave differently

deindividuation

Thomas and his family recently toured the Gettysburg Battlefield on their vacation. The area was rich in history. While walking, Thomas remembered all the accounts of the battle that he had read in school. He finally understood why this place had such a special meaning in American history and to Americans in general. Gettysburg Battlefield is best classified as

sacred

scarcity of resources available to human beings leads to

shortcuts, automation, subjectivity, and maladaptive behaviors

Ellie is planning her wedding and wants everything to be just right. 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. Ellie's wedding planner is best described as a(n)

surrogate consumer

A small group of influencers disseminates information because they can modify the opinions of a large number of other people

two step flow model of influence

Why is decision making such a difficult process

•A lot of options and information overload •A lot of uncertainty, COVID-19 & beyond -Uncertain attributes (beliefs) -Uncertain values -Changing sense of self •Need to trade-off attributes

What are temporal factors/influences in consumer behavior?

•Social -- individuals' categorization of time as either "time for me" or "time with/for others." •Temporal Orientation -- depicts the relative significance individuals attach to past, present, or future. •Planning Orientation -- alludes to different time management styles varying on a continuum from analytic to spontaneous. Polychronic -- distinguishes between people who prefer to do one thing at a time (monochronic) from those who multitask (polychronic). We may change what we want to buy based on temporal influences like what time it is or how much time is left before we need the product. Economic time points out that time is an economic variable - think "time is money." People's priorities determine their timestyle. Your timestyle determines how you spend your time resource.