Consumer Behavior Exam 1

Social Schema

(or social stereotype) the cognitive representation that gives a specific type of person meaning. -a stereotype captures the role expectations of a person of a specific type. Ex: a nonconforming server who is too over- or underweight may cause consumers to eat more or less than they might otherwise. -can be based on practically any characteristic that can describe a person, including occupation, age, sex, ethnicity, religion, and even product ownership. (what kind of person do you think drives a Prius?)

Figure and Ground

*Figure*: object that is intended to capture a person's attention, the focal part of any message *Ground*: background in a message (should be less important than the figure) *Figure-Ground Distinction*: Ex: T chart with the word "Here" at the bottom. Most consumers would comprehend the word "Here" and put the T-shaped image in the background. However, if that becomes the figure, then the message may easily become "there"' and not "here"

Factors Affecting Attention

*Intensity of Stimuli* -a consumer is more likely to pay attention to stronger stimuli than weaker stimuli (vivid colors to capture attention) *Contrast* -a black and white photo in a colored newspaper *Movement* -electronic billboards, animated web ads, flashing lights and "pointing" are effective *Surprising Stimuli* -retailers replacing mannequins with real people *Size of Stimuli* -larger items garner more attention than smaller ones *Involvement* -refers to the personal relevance a consumer feels towards a particular product. -the more personally relevant (and thus more involving) the greater the chance it will be attended to

JND

*Just Noticeable Difference* -represents how much stronger one stimulus has to be relative to another so that someone can notice that the two are not the same. (minimum amount of change needed) Ex: How do people pick out one sound over another? For consumers to be able to physically discern two sounds that originate from the same source, the two sounds must be separated by at least 0.3 seconds. Separating the sounds by only 0.1 seconds is likely to produce the perception of one sound. Separating them by 0.3 second or more likely produces the perception of two different sounds.

Negative Reinforcement

*The *removal* of a stimulus following a response that *increases* the probability of that response occurring again in the future.*

Marketing (ppt definitions)

-"development and efficient distribution of goods and services for chosen consumer markets" -"marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large"

Thresholds

-Absolute -Difference (JND) -Terminal

Depending on the extent to which a stimulus can be categorized, the following reactions may occur....

-Assimilation -Accommodation -Contrast

Distribution

-Channels -Exclusive -Mass

Weber's Law

-the ability to detect differences between two levels of a stimulus is affected by the original intensity of the stimulus. -the law states that as the intensity of the initial stimulus increases, a consumer's ability to detect differences between two levels of the stimulus decreases. -marketers need to understand that change made a little at a time may be unnoticed by a consumer. > Price (small differences in price) >Quantity (small differences in quantity) >Quality (small improvements in quality) >Add-on Purchases (small add-on to a large purchase) >Change in Product Design (small changes in product design)

The Five C's

1. Competitors 2. Company 3. Channels 4. Conditions -economic -technological -political -legal -cultural/social 5. Customers

How does Hedonic Value differ from Utilitarian Value?

1. Hedonic Value is an end in and of itself rather than a means to an end. 2. Hedonic value is very emotional and subjective in nature. 3. When a consumer does something to obtain hedonic value, the action can sometimes be very difficult to explain objectively. -the two types of value are not mutually exclusive. The same act of consumption can provide both utilitarian and hedonic value. Ex: dining at Hard Rock is an event. You don't have to go to Hard Rock to eat, but dining there is an experience bc it is a lot of fun. However, the Hard Rock consumer also accomplished the task of having something to eat--getting nourished. (the very best consumer experiences are those that provide both high utilitarian value and high hedonic value)

Factors related to consumer comprehension

1. internal factors within the consumer powerfully influence the comprehension process. 2. comprehension includes both cognitive and affective elements. That is, the process of comprehension involves both thoughts and feelings. 3. Every message sends signals.

Promotion

> Implicit > Explicit -advertising -personal selling -sales promotion -publicity/public relations -direct

Price

> Transactional > Informational -when consumers have little information or experience -complex product, high risk, high time pressure -social prestige -special situations of people -absolute difference in price is low

Workbench, or working, memory

Short-term memory. the storage area in the memory system where information is stored and encoded for placement in long-term memory and eventually retrieved for future use. -limited capacity -limited duration -coding takes place here

The Value Equation

Value = What you get - What you give *"What you get"*: benefits such as -quality -convenience -emotions -prestige -experience or other factors like: -scarcity -nostalgia *"What you give"*: sacrifice of -time -money -effort -opportunity -emotions -image

Customer Relationship Management (CRM)

a basic CRM premise is that customers form relationships with companies as opposed to companies conducting individual transactions with customers. -systematic information system that collects, maintains and reports detailed information about customers so marketers can make more customer-oriented decisions that hopefully lead to longer-lasting relationships -CRM means each customer represents a potential stream of resources rather than just a single sale.

Exemplar

a concept within a schema that is the single best representative of some category. -can differ from one person to another based on their unique experiences. Ex: in a snack food schema, potato chips may be the exemplar. Adele may be the category exemplar for female pop star

Marketing Myopia

a condition in which a company views itself competing in a product business rather than in a value-or-benefits-producing business. -when firms fail to realize how their products provide value, they run the risk of developing marketing myopia. Ex: when technology makes a good or service obsolete, the myopic business goes out of business. In contrast, the company that focuses on value creation builds innovative solutions around consumer needs and wants, not the physical product.

Nostalgia

a mental yearning to relive the past, produces emotions of longing. -often product and brand associations can generate nostalgia. Ex: Cracker barrel stores sell moon pies, mallo cups and pixie sticks; simulate well with childhood memories

Orientation Reflex

a natural response to a threat from the environment. -represents a protective behavior Ex: when you cut your finger, you would automatically direct your attention to the injury due to its pain -when attention is devoted to a stimulus in this way an orientation reflex occurs.

Value

a personal assessment of the net worth a consumer obtains from an activity. -from a marketing perspective, the firm serves consumers well when consumers realize value from activities involving interactions with the firm or its products. -value is what consumers ultimately pursue because valuable actions address motivations the manifest themselves in needs and desires. -value captures how much gratification a consumer receives from consumption. In return, the firm receives value from consumers as they make purchases

Framing

a phenomenon in which the meaning of something is influenced (perceived differently) by the information environment. -the same event can produce multiple meanings depending on how the information is presented. -framing and consumer adaptation level (habituation) often work together) Ex: would you like an ice cream sundae? most would say yes, but if the consumer just ate 2 sundaes before that, they would probably frame the third one as not as tasty.

Schema

a portion of an associate network that represents a specific entity and thereby provides it with meaning. -consumers' knowledge for a brand or product is contained in a schema Ex: each time a consumer encounters something that could be a snack food, the mind quickly compares all the associations in the schema to see if indeed the thought is correct.

Selective Distortion

a process by which consumers interpret information in ways that are biased by their previously held beliefs. -this process can be the result of either a conscious or unconscious effort. Ex: Sports fans from one team may be enraged when a "bad call" goes against their team. Fans for the other team are unlikely to comprehend the controversial play in the same way. Both groups of fans observe the same thing but comprehend and react differently

Chunking

a process of grouping stimuli by meaning so that multiple stimuli can becomes a single memory unit. -a chunk is a single memory unit

Resource Advantage Theory

a prominent theory that explains why companies succeed or fail. (surviving is not a trivial goal, and the companies that do survive long term do so by finding ways to continuously obtain resources from consumers in return for the value they offer) -companies succeed by acquiring more resources from consumers and in turn using those resources to gain advantages in physical and intellectual capital. -ultimately, consumers give up resources in the pursuit of value.

Script

a schema representing an event. -consumer derive expectations for service encounters from these scripts. Ex: when a consumer dines in a fine Italian restaurant, the script probanlty contains things such as valet parking, a greeting by a well-dressed maitre d', a linen-covered table, and perhaps music by Dean Martin.

Mental Tagging

a tag-- is a small piece of coded data that helps us get that particular piece of knowledge onto the workbench. -the tags function much like the bar-coded information on checked luggage. when everything works right, the information on the tag allows thee luggage to be located and directed toward the correct destination.

Consumer (Customer) Orientation

a way of doing business in which the actions and decision making of the institutions prioritize consumer value and satisfaction above all other concerns. -a consumer orientation is a key component of a firm with a market-oriented culture

Relationship Marketing

activities based on the belief that the firms performance is enhanced through repeat business

Quantitative Research

addresses questions about consumer behavior using numerical measurement and analysis tools. -the measurement is usually structured, meaning that the consumer will simply choose a response from among alternatives supplied by the researcher. -(aka) structured questionaries typically involve multiple-choice questions. -alternatively, quantitative research might analyze sales data tracked via the Internet or with point-of-sale scanners. -unlike qualitative research, the data is not researcher dependent to the extent that the numbers are the same no matter who the researcher may be.

Marketing Mix

an organization's strategic combination of product, price, distribution, and promotion. -Product -Price -Distribution -Promotion

Market Orientation

an organizational culture that embodies the importance of creating value for customers among all employees. -in addition to understanding customer, a market-orientation stresses the need to monitor and understand competitor actions in the marketplace and the need to communicate information about customers and competitors throughout the organization. -market-oriented firms develop effective ways of listening to consumers, and these skills usually, but not always, lead to better performance -represents a less narrow focus than a strategic orientation that focuses more solely on production.

Subliminal Persuasion

behavior change induced or brought about based on subliminally processing a message. -the belief is that communication can influence consumers through mere exposure to subliminal stimuli. Ex: "Vicary Experiment" a researcher for an ad firm claimed he had embedded subliminal frames within a movie in New Jersey. Very brief embeds of this phrases "Drink Coke" and "Eat Popcorn" were supposedly placed in the movie. the researcher claimed that Coke sales rose nearly 20% and popcorn sales nearly 60%. -marketers sometimes make light of subliminal persuasion by presenting images in advertisements that they know consumers will see.

Instrumental/Operational Conditioning

behavior is conditioned through reinforcement -reinforcers are stimuli that strengthen a desired response. -the focus is on behavior and behavioral change--not on mental processes that lead to learning. -the likelihood that a behavior will increase is influenced by the reinforcers (consequences) of the behavior. -the reinforcers are presented after the initial behavior occurs Ex: parents potty training their kids and the kids receivers hugs, praises, toys, etc. for performing the desired behavior.

Extinction

behaviors often cease when reinforcers are no longer present. *The *removal* of a stimulus following a response that *decreases* the probability of that response occurring again in the future.* Ex: consumers may become accustomed to receiving free tea and cookies at a local nail salon every time they go. If the salon decides to stop offering the free food and drink, the consumers may take their business elsewhere.

Ideal Points

combination of product characteristics that provide the most value to an individual consumer or market segment. -Ex:

Marketing (textbook definition)

consists of the multitude of value-producing seller activities that facilitate exchanges between buyers and sellers. -the value-producing activities include the production, promotion, pricing, distribution, and retailing of goods, services, ideas, and experiences, all with the potential to create value for consumers and other stakeholders.

Consumer Value Framework (CVF)

consumer behavior theory that illustrates factors that shape consumption-related behaviors and ultimately determine the value associated with consumption. -value is the heart of experiencing and understanding consumer behavior

Sensation

describes a consumer's immediate response to this information

Discriminative Stimuli

differentiate one stimulus from other stimuli because they signal the presence of a reinforcer. -essentially signal that a type of reward will occur if the consumer performs a specific behavior. Ex: special promotions ad's; the ad informs consumers that they will receive some type of reward (10% off a purchase) if they perform the desirable behavior (shop at a store) -the stimulus serves as a signal presented before the behavior occurs, and the behavior must occur in order for the reinforcements to be delivered.

Credibility

extent to which a source is considered to be both an expert in a given area and trustworthy -consumers associate expertise and trustworthiness with credibility -like likability, credibility sources to tend to lower the chances that consumers will develop counterarguments

Niche Marketing

firms that specialize in serving one market segment with particularly unique demand characteristics -niche marketers may be consumer oriented, however some are product oriented and price a product that has unique appeal within a segment. Ex: many companies serve the golf market one way or another, and some of them are huge differentiated marketers like Tailor-made or Callaway, offering many products aimed at multiple markets. However, the Bobby Grace company specializes in one product: the putter.

Utilitarian Value

gratification derived from something that helps the consumer solve problems or accomplish tasks that are a part of being a consumer. (What I Need) -when consumers buy something in pursuit of utilitarian value, they can typically provide a clearly rational explanation for the purchase. -actions that provide utilitarian value are worthwhile because they provide a means to an end. The actions provide value because the object or activity allows something else good to happen or be accomplished.

Right vs. Left Brain

hemisphere lateralization--some people tend to be either right-brain or left-brain dominant

Trustworthiness

how honest and unbiased a source is perceived to be.

Prospect Theory

hypothesizes that the way in which information is framed differentially affects risk assessments and associated consumer decisions. Ex: -failing to use sunscreen leaves one vulnerable to skin cancer. (negative) -using sunscreen helps avoid cancer (positive) -the frame within consumers receive information causes concepts associated with it to become available for processing

Qualitative Research

include things such as case analysis, clinical interview, focus group interview, and other means by which data are gathered in a relatively unstructured way. -(aka) consumer respondents are usually free to respond in their own words or simply their own behavior

Product Orientation

innovation is geared primarily toward making the production process as efficient and economical as possible. -(aka) the emphasis is on serving cutters while incurring minimum costs. -Walmart typifies this approach with their Supercenters and their state-of-the-art distribution network, which ships massive quantities of products to stores around the world at the lowest possible cost.

Product Placement

intentional insertions of branded products within media content not otherwise seen as advertising. -an effective means of enhancing consumer attitudes.

Selective Exposure

involves screening out most stimuli and exposing oneself to only a small portion of stimuli. -consumers are selective in what they expose themselves to, what they attend to, and what (and how) they comprehend.

Adaptation Level

level of stimulus to which a consumer has become accustomed

Explicit Memory

memory that develops when a person is exposed to, attends, and tries to remember information.

Absolute Threshold

minimum* strength of a stimulus that can be perceived.

Product

not a collection of attributes but rather a potentially valuable bundle of benefits -Functional Benefits -Surrogate Cues >Brand Name >Package Design >Incidental Physical Characteristics

Cognitive Interference

notion that everything else that the consumer is exposed to while trying to remember something is also vying for processing capacity and thus interfering with memory and comprehension Ex: try counting backwards from 1000 by 3. it seems easy until someone is calling out random numbers at the same time, it becomes more difficult.

Conditioned Stimulus

object or event that does not cause the desired response naturally but that can be conditioned to do so by pairing with an unconditioned stimulus. Ex: the bell (it did not lead to the response before it was paired with the powder) -to be effective, the conditioned stimulus is presented to people before the unconditioned stimuli, and the pairing of the two should be done consistently (and with repetition)

Contrast

occurs when a stimulus does not share enough in common with existing categories to allow categorization. Ex: an icy, bright red, alcoholic, sweet beverage served in a salt-rimmed glass shares very little common with the "morning beverage" category. The differences are so great that the consumer cannot even force a fit through accommodation. As a result, the product contrasts with the relevant category.

Accommodation

occurs when a stimulus shares some, but not at all, of the characteristics that allow it to fit nearly in an existing category. -At this point, the consumer will begin processing, which allows exceptions to rules about the category. Ex: an iced coffee may require some adjustment for a consumer used to hot coffee as a morning beverage. In this case, the consumer may relax the category rule that the code must be hot to accommodate iced coffee in the category. -Mild incongruence is not a bad thing when selling products. New products that are mildly incongruent with expectations can sometimes be preferred to perfect matches.

Subliminal Message

one presented below the threshold of perception. -if you are aware of the stimulus or message, then the process is not subliminal

Marketers can take differentiated marketing to the extreme with a practice known as....

one-to-one marketing. *the company offers a unique product to each individual customer and thereby treats each customer as a segment of one.* Ex: a custom home builder practices one-to-one marketing.

Interpretative Researchers adopt one of several orientations. Two common interpretative orientations are....

phenomenology and ethnography.

Total Value Concept

practiced when companies operate with the understanding that products provide value in multiple ways. -a company must try to understand all the ways a product offers value to its customers

Repetition

process in which a thought is held in short-term memory by mentally repeating the thought. -the weakest form of learning

Dual Coding

process in which two different sensory "traces" are available to remember something. -a trace is a mental path by which some thought becomes active Ex: marketing messages often combine an image with a description in attempt to promote dual coding Ex: associating products with rhythm helps consumers remember information (consumer is able to retrieve the information in 2 ways--by the content of the message and by the rhythmic sound that makes up the music.)

Selective Attention

process of paying attention to only certain stimuli. Ex: a tourist walking through downtown Tokyo, Japan. How can she possibly pay attention to all of this information? Consumers can't possibly pay attention to all of the "clutter" around them. Instead, they will choose something that stands out, or is personally relevant, and devote attention to that object.

Phenomenology

qualitative approach to studying consumers that relies on interpretation of "lived experience" -represents the the study of consumption as a "lived experience" -the phenomenological researcher relies on casual interviews with consumers from whom the research has won confidence and trust.

Ethnography

qualitative approach to studying consumers that relies on interpretation of artifacts to draw conclusions about consumption. has roots in anthropology and often involves analyzing the artifacts associated with consumption. -an ethnographer may decide to go through trash or ask to see the inside of a consumer's refrigerator in an effort to learn about a consumer.

Learning

refers to a change in behavior resulting from the interaction between a person and a stimulus -marketers cannot help create value for consumers unless they can effectively communicate the value proposition to consumers in a way that they perceive and learn about the potential benefits

Classical Conditioning

refers to a change in behavior that occurs simply through associating some stimulus with another stimulus that naturally causes a reaction. -Ivan Pavlov Experiment (using dogs, meat powder (an unconditioned stimulus that naturally led to a salivation response), and a bell (a conditioned stimulus that did not lead to the response before it was paired with the bell). Revealed that the bell eventually evoked the same behavior that the meat powder naturally caused

Elaboration

refers to the extent to which a person continues processing a message even after she develops an initial understanding in the comprehension stage. -increased information is retrieved from long-term memory and attached to the new information and understanding. This means more and richer tags and a better chance of recall.

Affect

refers to the feelings experienced during consumption activities or feelings associated with specific objects. Ex: if the child continues to receive negative information about smoking, the belief that it's nasty may result in feelings of disgust.

Episodic Memory

refers to the memory for past events, or episodes, in one's life. Ex: a consumer may have fond memories of childhood holiday celebrations. etc. -brands associated with positive events stored in episodic memory receive something of a halo tend to be preferred by consumers. -episodic memory and scripts both can include knowledge necessary for consumers to use products

Cognition

refers to the thinking or mental processes that go on as we process and store things can become knowledge. Ex: a child hears parents talking about smoking being a nasty thing to do. Smoking becomes associated with nastiness and the child may develop a dislike of smoking. -the psychology of a consumer involves both cognitive and affective processes.

Subliminal Processing

refers to they way in which the human brain senses low-strength stimuli, that is, stimuli that occur below the level of conscious awareness. (stimuli strength lower than the absolute threshold of perception, the minimum strength needed for a consumer to perceive a stimulus.) -this type of "learning" is unintentional, because the stimuli fall below the absolute threshold. Ex: when a mosquito lands on your arm, chances are the mosquito is so small that you will not be consciously aware of the sensation without seeing it

Priming

refers to this cognitive process in which active concepts activate other closely associated concepts, thereby affecting both value perceptions and meaning. Ex: negatively framed information primes losses, which consumers wish to avoid, and encourages consumers to be more willing to take a chance on a product.

Rumination

refers to unintentional, spontaneous, recurrent memory of past and sometimes long-ago events that are not necessarily triggered by anything in the environment. Ex: consumers who have had a bad experience with a brand ruminate about the bad experience. the rumination can climate in attempts to sabotage the brand through malicious online behavior or intentional acts aimed at harming the brand

Positive Reinforcement

reinforcers that take the form of a reward. *The *addition* of a stimulus following a response that *increases* the probability of that response occurring again in the future.* -the effects can be seen in marketing efforts that encourage repeat purchase behavior. Ex: casinos have players' cards that accumulate points the more a customer plays, as the points accumulate, various offers are provided to the consumer like free hotel rooms, meals and other things

Mere Exposure Effect

represents another way that consumers can learn unintentionally. -the idea that consumers will prefer stimuli they have been previously exposed to over stimuli they have not seen before. -this effect occurs even when there is no recall of the previous stimulus. -all things equal, consumers prefer the familiar to the unfamiliar. Once exposed to an object, a consumer exhibits a preferences for the familiar object over something unfamiliar

Elasticity

represents market sensitivity to changes in price or other characteristics. (reflects how sensitive a consumer is to changes in some product characteristic)

Implicit Memory

represents stored information concerning stimuli one is exposed to but does not pay attention to. (memory for things that a person did not try to remember)

Message Congruity

represents the extent to which a message is internally consistent and fits surrounding information. -is image consistent with copy meaning (inspiring business)? the conventional wisdom is that congruent content would lead to improved comprehension (not always the case). -moderate levels of incongruity motivate deeper processing than when everything in a string of messages is highly congruent. Ex: L'Oreal hair care products. The consumer will comprehend and remember more when presented with only one hair care message in any three-menage sequence. Congruent Messages: -head and shoulders shampoo -L'Oreal Preference -PM Kids Shampoo (consumer comprehends less about L'Oreal) Incongruent Messages: -The Sak -L'Oreal Preference -Lipton Tea (consumer comprehends more about L'oreal)

Unconditioned Response

response that occurs naturally as a result of exposure to an unconditioned stimulus Ex: the salivation (that resulted from the meat powder)

Conditioned Response

response that results from exposure to a conditioned stimulus that was originally associated with the unconditioned stimulus Ex: the dogs would eventually respond in the same way to the exposure to the bell -this response became conditioned by the consistent pairing of the unconditioned and conditioned stimuli

Prototypes

schema that is the best representative of some category but that is not represented by an existing entity; conglomeration of the most associated characteristics of a category. Ex: a pharm. sales rep category likely does not evoke a specific person who best represents that category. However, an image is associated in one's mind with the category. That image contains the characteristics most associated with a pharma rep. Several characteristics may come to mind and they are active in your own mind as this moment.

Interpretative Research

seeks to explain the inner meanings and motivations associated with specific consumption experiences. -consumer researchers interpret these meanings through the words that consumers use to describe events or through observation of social interactions. -with this approach, researchers interpret meaning rather than analyze data -usually falls into the broader category of qualitative research

Differentiated Marketing

serve multiple market segments each with a unique product offering. -a market orientation usually serves a differentiated marketer well. -the emphasis here is on matching a product with a segment. -heterogeneous demand

Unconditioned Stimulus

stimulus with which a behavioral response is already associated. Ex: the meat powder (that naturally led to a salivation response

Signal Theory

tells us that communications provide information in ways beyond the explicit or obvious content. Ex: a retailer promises to match competitors' prices (PMG price match guarantee) as a signal to consumers that prices are indeed low. Consumers don't always comprehend messages or get the desired signal, and to this extent, consumer comprehension is not always "correct" -consumers sometimes just don't get it; however, they act on what they do get.

Situational Influences

temporary factors unique to a time or place that can change the value seen in a decision and received from consumption. -include the effect that the physical environment has on consumer behavior.

Declarative Knowledge

term used in psychology to refer to cognitive components that represent facts. -represented in an associative network by two nodes linked together by a path. *Nodes*: concepts in the network *Paths*: association between nodes. Ex: champagne is bubbly and is something for celebrating, particularly during the holidays. Dom Perignon is a brand of champagne. Parties go well with champagne. Jay Z pours champagne in his rap videos

Quantitative research better enables researchers to....

test hypotheses as compared to interpretative research. -quantitative research is more likely to stand on its own and does not require deep interpretation.

Exchange

the acting out of a decision to give something up in return for something perceived to be of greater value. Ex: having made a choice, the consumer completes an exchange in which he gives up resources in return for ownership and the potential to use the product.

Expertise

the amount of knowledge that a source is perceived to have about a subject.

Customer Lifetime Value (CLV)

the approximate worth of a customer to a company in economic terms -CLV is the overall long-term profitability of an individual consumer. -Firms increasingly want to know the customer lifetime value associated with a customer or customer segment. CLV = npc (sales-costs) +npv (equity) -the CLV is equal to the net present value (npc) of the stream of profits over a customer's lifetime plus the worth attributed to the equity a good customer can bring in the form of positive referrals and word of mouth

Sensory Memory

the area in memory where we store what we encounter with out five human senses. -unlimited capacity -very limited duration -iconic memory -echoic storage Ex: when we hear something, sensory memory is responsible for storing the sounds. All senses are stored even though the consumer has not yet located attention to any sensations

Shaping

the desired behavior is altered over time, in small increments. -the focus is on rewarding small behaviors that lead to the big behavior ultimately desired. Ex: universities invite prospective employers to come to career day events. the employers hope that students who come by their booth will pick up some free promotional goods and have a good time interacting with company reps. The small rewards along the way help shape the desired behavior--which is getting the students interested in a career.

Hedonic Value

the immediate gratification that comes from experiencing some activity. (What I Want) Ex: seldom does one go to a scary movie or play Face Swap Online in an effort to get a job done. -with hedonic value, the value is provided entirely by the actual experience and emotions associated with consumption, not because some other end is or will be accomplished.

Comprehension

the interpretation or understanding a consumer develops about some attended stimulus based on the way meaning is assigned. Ex: what happens when a consumer sees a "some assembly required" sticker on a product? Of course, this means that the consumers will likely have to master a set of detailed instructions before consumption can begin. An easy-to-comprehend set of instructions would certainly contribute to the total value equation for the product. -marketers must teach us things so that we realize the most value from consumption.

Augmented Product

the original product plus the extra things needed to increase the value from consumption. (the actual physical product purchased plus any services such as installation and warranties necessary to use the product and obtain its benefits) Ex: Nike is more than a rubber sole with leather and nylon uppers and laces: the swoosh matters. -Every product's value proposition is made up of the basic benefits, plus the augmented product, plus the "feel" benefits.

Benefits

the positive results of the consumption experiences. Ex: (SmartWatch) potentially better job performance, easier text, email, and social network access, and benefits from other smart watch apps that do things like monitor heart rate and calories consumed. -ultimately, the process results in a perception of value

Consumption

the process by which consumers use goods, services, or ideas and transform the experience into value. -Consumption is a value-producing process in which the marketer and the consumer interact to produce value. -when the consumer fails to realize value from the process, something has broken down in the process; perhaps bad performance from the marketer or a bad decision by the customer. -consumption outcomes affect consumer well-being by affecting quality of life.

Habituation

the process by which continuous exposure to a stimulus affects the comprehension of and response to some stimulus. Ex: group A asked to immerse arms in 2 degree C water for 60 seconds. group B asked to do the very same thing, except after the first immersion they are asked to immediately immerse their arms into slightly less frigid water (6 degree C) for an additional 30 seconds. At the end, the group that immersed their arms for 90 seconds rated the task more favorably than the other group. -habituation theory explains that the first 60 seances of exposure to the extremely cold water habituated the subjects and created an adaptation level. As a result, when the second group was exposed to water that was still unpleasant but slightly less cold than the first, a more favorable evaluation was obtained because the entire experience was framed by the relatively more valuable (less painful) last 30 seconds.

Retrieval

the process by which information is transferred back into work bench memory for additional processing when needed.

Encoding

the process by which information is transferred from workbench memory to long-term memory for permanent storage.

Value Co-Creation

the realization that a consumer is necessary and must play a part in order to produce value -alone, a marketer can only propose a way of creating value to consumers (the marketer can't create value alone) -consumers add resources in the form of knowledge and skills to do their own part in the consumption process. -the marketer serves its customer by making potentially beneficial outcomes of consumption available, but the customer plays a role in whether or not the offering's attributes actually do prove beneficial, and therefore valuable.

Undifferentiated Marketing

the same basic product is offered to all customers. -mass-merchandisers typify undifferentiated marketers in that they rely on selling a high volume to be successful. -they focus on serving very large segments in which consumers do not have specific desires (are not picky). -undifferentiated marketers generally adopt a product orientation. -mass market; homogeneous

Consumer Behavior

the set of value-seeking activities that take place as people go about addressing and attempting to address real needs. -(aka) when a consumer is motivated by a need, a process kicks in as the consumer sets out to find desirable ways to fill this need.

Echoic Memory

the storage of auditory information as an exact representation of the sound. -all sights, sounds, smells, tactile sensations, and tastes are recorded as exact replicas in the mind of the consumer

Iconic Memory

the storage of visual information in sensory memory as an exact representation of the scene. -the idea that things are stored with a one-to-one representation with reality

Counterarguments

thoughts that contradict a message

Support Arguments

thoughts that further support a message.

Perceptual Maps

used to depict graphically the positioning of competing products. -when marketing analysts examine perceptual maps, they can identify competitors, identify opportunities for doing more business, and diagnose potential problems in the marketing mix. -Ex: the analyst may realize that by changing the amount of some product characteristic, they can move closer to some segment's ideal point, and thus increase the competitiveness of the product.

The realization of a need creates a......

want. -a want is *a specific desire that spells out a way a consumer can go about addressing a recognized need.* Ex: consumer realized a need to more conveniently access outside media, such as snapchat, email, etc. via the internet. The realization of this need may be motivated by a desire to do better on a job, to have better access to friends and family, to more quickly post news about personal activities or some combination of reasons. This realization of a need creates a want.

Spreading Activation

way cognitive activation spreads from one concept (or node) to another. Ex: marketers want their brand names to use cognitive activation to spread to favorable, rather than unfavorable, thoughts.

Assimilation

when a stimulus has characteristics such that individuals readily recognize it as an example of a specific category. Ex: a hot, brown coffee served in a ceramic mug fits the "morning beverage" category easily.