Consumer Behavior - Exam 1
What type of consumer has technology created?
"Always on"
What things can be influenced by market access?
- Disabilities - Food deserts - Literacy
When are consumers likely to respond to dissatisfaction?
- Dissatisfied with expensive products - Consumers satisfied with a store in general are more likely to complain if they experience something negative and feel better if the company resolves the problem
What are factors that can influence effects of color?
- Learned associations - Gender - Age
Greater Connectedness to Nature has been linked to:
- Positive affect - Psychological well-being - Meaningfulness - Vitality - Better ability to reflect on personal problems
What should organizations encourage people to complain?
- They get the chance to correct the situation - They can avoid escalating the problem that results when consumers take to social media - They collect valuable insights about customers' experiences - If consumers don't believe the store will respond to their complaint, they're more likely to switch than fight
The way organizations approach being environmentally conscious is based on maximizing return in what 3 ways?
1. Financial Bottom Line 2. Social Bottom Line 3. Environmental Bottom Line
While consumers want to choose green products, what are two reasons why consumers may be less likely to purchase?
1. Green products are more expensive 2. Distrust from greenwashing
80/20 Rule
20% of users account for 80% of sales
Sensory Thresholds
Dual issues of if and when consumers will notice a difference between two stimuli
When can connecting with nature have a lasting effect?
During childhood
Sensory Marketing (5 of them) 4. Touch - Endowment Effect
Endowment Effect: Touching a product encourages a consumer to imagine owning the product
Sustainability
Everything we need for our survival and wellbeing
Perceptual Process (3-Stages) Stage 1: Exposure
Exposure occurs when a stimulus comes within range of one's sensory receptors
Meaningfulness concerns activities that _____ oneself and _____ others in a positive way
Express and Impact
Sensory Inputs
External stimuli that are the raw data to begin the perceptual process Ex: Hearing a jingle, feeling a sweater, sampling ice cream
Business ethics are the standards against which most people in a culture judge what?
Judge what is right and wrong
The minimum difference we can detect between two stimuli is the _________
Just noticeable difference
Which system do humans process fragrance cues through?
Limbic system - Most primitive part of the brain and where we experience emotions
What is a Want?
Manifestation of a need determined by personal and cultural factors
Do marketers create artificial needs?
Marketers provide particular solutions to satisfy these needs
5 Types of Consumer-Brand Relationships - Love
Product elicits emotional bonds of warmth, passion, or other strong emotion **Our relationships with brands evolve overtime
5 Types of Consumer-Brand Relationships - Self-Concept Attachment
Product helps to establish user's identity
5 Types of Consumer-Brand Relationships - Interdependence
Product is a part of the user's daily routine
5 Types of Consumer-Brand Relationships - Nostalgic Attachment
Product serves as a link with past self
Transformative Consumer Research
Promotes research for which the goal is to help people or bring about social change
Financial Bottom Line
Provide profits to stakeholders
Transformative Consumer Research can ultimately influence _____ to make sure consumers are protected
Public policies
Social Bottom Line
Return benefits to the communities where the organization operates
Business Ethics
Rules of conduct that guide actions in the marketplace
Materialists link more of their _____ to products
Self-identity
Context Effects
Sensations experienced that subtly influence how one thinks about products encountered
Provenance
Shoppers are willing to pay more for an items when they know where it comes from and are assured that real people have through fully selected the things from which they choose
What is a Need?
Something you need to live or achieve a goal - Utilitarian-Functional - Hedonic-Emotional or Experiential
What can having a greater Connectedness to Nature in turn have positive effects on?
Sustainable consumer behavior
Sensory Thresholds
The point at which stimuli is strong enough to make a conscious impact in an individual's awareness -- Dual issues of if and when consumers will notice a difference between two stimuli
What is a basic objective of marketing?
To create awareness that needs exist, not to create needs
Database Marketing
Tracks specific consumers' buying habits closely and crafts products and messages tailored precisely to people's wants and needs
T/F Cause marketing is a popular strategy that aligns a company with a cause to generate business and societal benefits
True
T/F Building loyalty with existing consumers is sometimes better than trying to gain new consumers
True
T/F We value items more when they are curated
True
Many consumers believe that marketers design ad messages so that they'll be perceived _______
Unconsciously
3 Personal Selection Factors 2. Perceptual Defense
We see what we want to see
Sensory Overload
Were exposed to far more info than we can process
Need For Touch
Individual difference scale, high on the haptic dimension
Perception
Process by which people select, organize, interpret sensations
Color Palette
A key issue in package design
Subliminal Perception
A stimulus below the level of the consumer's awareness - Controversial - Largely ineffective
Green Marketing
A strategy that involves the development and promotion of environmentally friendly products and stressing this attribute when communicating with consumers
Do markets promise miracles?
Advertising functions as mythology does by producing simple, anxiety-reducing answers to complex problems
Sensory Marketing (5 of them) 1. Vision
Advertising, store design, packaging - Allows for communication on the visual channel through a product's color, size, and styling
Perceptual Process (3-Stages) Stage 2: Attention
Allocation of attention varies depending on both the characteristics of the stimulus and the recipient
Sensory Marketing (5 of them) 3. Sound - Audio Watermark - Sound Symbolism
Audio Watermark: A musical or audio sound that a brand uses as a signature watermark Example: Taco Bell dinging sound Sound Symbolism: The way a word sounds influences our assumptions about what it describe and attributes
Perceptual Selection
Because of our brain's capacity to process information is limited, consumers are selective about what they pay attention to
Relationship Marketing
Building relationships between brands and customers is key to success and interaction is frequent
B2C E-Commerce
Businesses selling to consumers
Humanizing nature can _____ feelings of connectedness to nature
Increase
Big Data
Collection and analysis of extremely large data sets - Consumers create 2.5 quintillion buses of data a day
Trade Dress
Color combinations that are very strongly associated with a corporation
Sensory Marketing (5 of them) Taste
Companies are using the electronic mouth to test new and improved flavors, even for formulating better tasting medicine
Heavy Consumers
Company's most faithful users and use the product most heavily (Brand loyalists) - Don't need to communicate a lot (B to C) in order to get the consumer to purchase new products, recommend products to others, etc.
Consumers need to make tough tradeoffs between convenience and ?
Constant surveillance
5 Types of Consumer-Brand Relationships - Role Theory
Consumers act out many roles and make consumption decisions depending on the play they're in
Conscientous Consumerism
Consumers focus on personal health merging with a growing interest in global health
C2C E-Commerce
Consumers selling to other consumers
Digital Native
Consumers that have grown up "wired" in an always-on world where digital technology has always existed
When an organization behaves ethically, how does this affect how consumers think of the firm?
Consumers think better of the products the firm sells
What can determine what tastes we find desirable?
Cultural factors
What do social media platforms enable?
Culture of participation
The _____ of a product is often a key driver of its success or failure
Design
Asynchronous Interactions
Do not happen in real time, do not require immediate response
Light Consumers
Do not use a brand often (Not loyal) - Can switch (Take it or Leave it)
T/F Sustainability is the same as Green Marketing
False
T/F External sensory cannot trigger internal sensory experiences
False External sensory CAN trigger internal sensory experiences
T/F Markets know enough about people to manipulate them
False Marketers simply don't know enough about people to manipulate them
Connectedness to Nature
Feeling close to nature and including nature in one's own self-concept - An individual difference
Materialists are more likely to value possessions for their what?
For their status and appearance related meanings
Synchronous Interactions
Happen in real time
What are universal values in business ethics?
Honest, trustworthiness, fairness, respect, justice, integrity, concern for others, accountability, loyalty
Sensation
Immediate response of our sensory receptors (5 senses) to basic stimuli like light, color, sound, odor, and texture
Environmental Bottom Line
Minimize damage to the environment or even improving natural conditions
3 Personal Selection Factors 1. Personal Vigilance
More likely to be aware of stimuli that relate to our current needs
Hedonic Consumption
Multisensory, fantasy, and emotional aspects of consumers' interactions with products
What is happiness linked to satisfying?
Needs and Wants
Greenwashing
Occurs when companies make false or exaggerated claims about how green their products are
Identity Theft
Occurs when someone steals your personal information and uses it without your permission
Sensory Marketing (5 of them) 2. Smell
Odors and aromas can stir emotions, invoke memories, or relieve stress - Smells can increase the length of time consumers spend processing product information
What does sustainability depend on?
On our natural environment
Non-materialists prize products that connect them to _____
Others
Non-materialists cherish items that provide what?
Personal significance
Consumers are interested in choosing brands that support causes they find _____
Personally relevant
Experience of touch is like a _____
Primal language
Humanizing nature ultimately increases consumers willingness for what?
Pro-environmental behavior - e.g. willingness to choose and use green products
Differential Threshold
The ability of a sensory system to detect changes in or differences between two stimuli
Market Access
The ability to find and purchase goods and services
Weber's Law
The amount of change required for a perceiver to notice a change systematically relates to the intensity of the original stimulus
Absolute Threshold
The minimum amount of stimulation a person can detect on a given sensory channel Example: A billboard with too small of print to read when driving by
Consumers have 3 options when dissatisfied with a product/service - Voice Response
You can appeal directly to the retailer for the redress example: a refund
Consumers have 3 options when dissatisfied with a product/service - Private Response
You can express your dissatisfaction to friends and boycott the product or store where you bought it
Consumers have 3 options when dissatisfied with a product/service - Third-Party Response
You can take legal action against the merchant, register a complaint with the Better Business Bureau, or write a letter to the newspaper