Consumer Final

Sunk Cost Fallacy

the tendency of individuals to continue an action if they have invested resources into it, even if that action might make them worse off.

Anchoring Effect

the tendency of individuals to overly rely on the first piece of information given to them—the 'anchor'—used to make future decisions.

Scarcity Bias

the tendency of individuals to place a higher value on things that are scarce.

Framing Effect

the tendency of individuals to reach different decisions from the same information depending on how it is presented.

Default Effect

the tendency of individuals to stick with options that are assigned to them by default due to inertia.

Bandwagon Effect

the tendency of individuals to value something more because others seem to value it.

Describe: Sneak into basket

when you are attempting to purchase an item, somewhere along that purchasing journey the website sneaks another item into your basket without your consent, frequently through the use of an opt-out radio button or checkbox on a prior page.

Choice and Satisfaction

The expectancy disconfirmation theory holds that expectations influence______________

Occupational Prestige

The single best indicator of social class is______________.

Credibility and attractiveness

The source of a message has an impact on whether the message will be accepted or not. Two particularly important source characteristics are ________.

Whether the customers experience high or low involvement toward the product

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia?

Generation Z

What is the most diverse generational cohort in U.S. history?

Baby Boomer Generation

What is the most powerful age segment economically in the United States?

Asian American

Which American ethnic subculture is the fastest growing?

Income inequality

Which factor does NOT affect the savings rate?

African American

Which of the "Big Three" American subcultures makes up about 13% of the population?

The most diverse age cohort

Which of the following is NOT true of Generation Y?

Theory of cognitive Dissonance

Which theory of attitudes states that people are motivated to take action to resolve inconsistencies between attitudes and behaviors?

Balance theory

___________ considers how people perceive relations among different attitude objects, and how they alter their attitudes to remain consistent.

Expert Power

____________ derives from the knowledge that a consumer possesses about a content area.

Opinion Leaders

___________are frequently able to influence other's attitudes on behavior.

Consumer Confidence

__________measures how optimistic or pessimistic people are about the future health of the economy and how they will fair in the future.

Market maven

a person who often serves as a source of information about marketplace activities

subculture

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

Describe: Hidden costs

revealing previously undisclosed charges to users right before they make a purchase (hidden fees that appear after you've entered in your payment information).

Beliefs

specific beliefs about products in the marketplace. Combination of knowledge, emotions, and actual actions to purchase or not to purchase.

Attitude

A(n)__________ is a lasting, general evaluation of people (including oneself), objects, advertisements, or issues.

bottom of the pyramid

78% of the global population is low income consumers whose purchasing power is under $10,000 per year. They are referred to as_______________

brand loyalty

A consumer who buys the same brand over and over again exhibits_________.

POP Stimuli

A coupon-dispensing machine in a grocery aisle and an employee handing out free samples of a new product are both examples of ________.

Cognitive

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in_________ decision making?

Heuristic

A mental or problem-solving shortcut to make a decision is called a(n)____________

All of the above (cultural pressures, fear of deviance, commitment)

A reason why consumers conform is__________

Time Pressure

A typical antecedent state that a consumer might experience as he or she approaches the purchase environment is_________________

Surrogate Consumer

A(n)_________ is a marketing intermediary retained by a consumer to guide what that consumer buys.

Gender

All of the following are important components of social class EXCEPT for___________.

Three generations of a family

An extended family unit is characterized by ________ living together.

Impulse Buying

Anna Jeter has a sudden urge she couldn't resist to buy a new purse; she was engaging in________.

What psychological bias is associated with "hidden costs"?

Sunk cost fallacy

A person and his or her perceptions

The balance theory perspective involves relations among three elements (a triad). Which of the following is one of the elements of the triad?

What psychological bias is associated with "activity messages"?

Bandwagon effect

Habitual

Buying decisions that are made with little or no conscious effort are called___________

Which of the following is considered a post-purchase process?

Consumer Satisfaction

TRUE

Decisions are influenced by the way a problem is posed. This is called framing.

Affective

Decisions driven by our emotional responses to a product are called_____________.

What psychological bias is associated with "sneak into basket"?

Default effect

What psychological bias is associated with "confirmshaming"?

Framing Effect

TRUE

Gasoline is the only commonly purchased product that is priced down to a fraction of a cent. This is the case because buying gasoline is a low-involvement activity, which makes point-of-purchase factors more important.

all of the above

Hedonic shopping motives include_________

Legitimate

If a fireman told you to leave your apartment, you would comply because the fireman has________power.

Social capital

If you were able to pull strings and get your friends past the velvet rope and into an exclusive nightclub, you would gain some_______________

Discretionary income

Money available to a household over and above what is required to have a comfortable standard of living is called__________.

What psychological bias is associated with "countdown timer"?

Scarcity Bias

What psychological bias is associated with "low-stock messages"?

Scarcity bias

word-of-mouth communication

Sophie tells Nick about a great new restaurant. Sophie is practicing ________.

Attractiveness

Source______ refers to the perceived social value of a message source

Describe: Countdown timer

indicates to the user that a deal or discount will expire using a counting-down timer.

Describe: Low-stock message

indicating to users that limited quantities of a product are available, increasing its desirability.

Describe: Activity messages

informing the user about the activity occurring on the website (views on item, page visits, no. of purchases).

Describe confirmshaming:

on the website language and emotion (shame) is used to steer users away from making a certain choice.