MKT-382 Final Exam Review

It is true that some people tend to be more price sensitive than others. However, what does the slide titled "These Occasions Vary Significantly in relation to Their Price Sensitivity and Drivers of Satisfaction" suggest might be a problem with seeing people as being consistently more or less price sensitive?

The slide suggests that price sensitivity is not a fixed characteristic of individuals but varies depending on the specific occasion and context. People who are highly price-sensitive in one situation may be less so in another, depending on factors such as the importance of the purchase, emotional involvement, or perceived value. This challenges the idea that consumers can be categorized as consistently price-sensitive or insensitive across all buying decisions.

What is the point of the story about All-Bran Cereal?

The story about All-Bran cereal highlights how childhood exposure shapes long-term taste preferences, even for seemingly unappealing foods. It shows that what we grow up eating can become familiar and comforting, influencing our choices later in life. From a college student's perspective, it's a reminder that our preferences aren't entirely random—they're shaped by past experiences, even if we don't consciously realize it.

What makes a brand truth good?

A good brand truth is something that feels authentic, relatable, and meaningful to the audience. It has to reflect what the brand genuinely stands for, not just what it wants people to believe. As a college student, a good brand truth should be simple, consistent, and easy to connect with emotionally. If it feels forced, overly polished, or disconnected from real experiences, it won't stick. The best brand truths also allow for some flexibility, so they stay relevant as the brand evolves while still holding onto its core identity.

What makes a consumer insight good?

A good consumer insight is one that is deep, specific, and actionable. It goes beyond surface-level observations and reveals a meaningful truth about why consumers think, feel, or behave a certain way. From a college student's perspective, a strong insight should be relatable and reflect real experiences, like how students prioritize convenience over cost when buying food on campus or how social validation influences their brand choices. It should also be something marketers can act on—if the insight just states the obvious, it won't lead to innovation or better engagement. The best insights feel almost obvious in hindsight, yet they uncover something that wasn't immediately clear before.

What defines a market? That is to say, how do you know if a consumer is in a particular market?

A market is defined by consumers who share a common need or desire that a specific product or service can fulfill. A consumer is in a particular market if they have the willingness and ability to purchase the product or service being offered.

What is the relationship between a market and a market segment? Can a consumer who is not in the market be part of a market segment?

A market segment is a subgroup within a market, defined by shared characteristics such as needs, preferences, or behaviors. A consumer who is not in the market cannot be part of a market segment because market segments are subsets of the broader market.

What is a norm?

A norm is a shared expectation or rule within a group or society that guides behavior, defining what is considered acceptable or appropriate in a given context.

How does a person's skill level at some activity relate go what is considered good or bad taste?

A person's skill level in an activity influences their perception of good or bad taste because expertise shapes their ability to recognize quality, complexity, and nuance. Beginners may have simpler preferences, relying on mainstream or widely accepted standards, while more skilled individuals develop refined tastes based on deeper understanding and experience. For example, a novice in painting might appreciate bold colors and obvious subjects, whereas a skilled artist may value subtle techniques and composition. As skill increases, so does the ability to distinguish between surface-level appeal and deeper artistic or technical mastery, leading to a more sophisticated sense of taste.

Definition: Enhanced Corporate Image, Attracting Talent

A powerful brand can enhance the overall corporate image, helping to attract and retain top talent which contributes to the company's profitability.

What is the difference between a scale and a single-item measure? 1. Which is usually more accurate? 2. Which is more expensive to implement? 3. Which is used more in academic research and which is used more in

A scale is a set of multiple items or questions designed to measure a concept or construct (e.g., customer satisfaction, personality traits). These items work together to capture different dimensions of the concept, providing a more comprehensive and nuanced understanding. Scales often involve aggregating or averaging responses to provide a final score. A single-item measure, on the other hand, uses one question or item to assess the concept. For example, a single question asking, "How satisfied are you with our service?" on a 1-10 scale is a single-item measure. 1. Scales are usually more accurate because they reduce measurement error by averaging responses across multiple items. They capture the complexity of a concept better than a single-item measure, which may oversimplify or fail to account for different dimensions of the construct. 2. Scales are more expensive to implement because they require more time to design, test, and administer. They often involve multiple questions, which take longer to complete and analyze. Single-item measures are quicker and cheaper since they involve only one question. 3. - Academic Research: Scales are more commonly used because of their greater reliability and validity, critical for rigorous, replicable studies. - Industry Research: Single-item measures are more common due to their cost-effectiveness and simplicity. They are often sufficient for practical decision-making, especially when quick insights are needed. - In summary, the choice between a scale and a single-item measure often depends on the research goals, budget, and need for precision.

Definition: Resilience to Negative Publicity

A strong brand can better withstand negative publicity and bounce back more quickly from public relations issues.

What is the consumer surplus? What happens to the consumer surplus when companies use price discrimination?

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. When companies use price discrimination, they reduce consumer surplus by capturing more of it as producer surplus. By charging different prices based on willingness to pay, firms extract additional revenue from consumers, decreasing the overall consumer surplus and increasing their own profits.

Why is marketing shifting away from demographics as a basis for segmentation?

Demographics alone often fail to capture the complexity of consumer behavior and preferences. Marketing is shifting towards psychographics, behavioral data, and needs-based segmentation to better understand motivations and purchasing decisions.

With regard to how many different segments a consumer is in, what is the key difference between (a) lifestyle or demographically based segments, (b) product-specific segments, and (c) situation-based segments

Lifestyle or demographically based segments categorize consumers broadly based on personal characteristics, meaning a consumer belongs to relatively few such segments. Product-specific segments focus on preferences or behaviors related to particular products, so a consumer can belong to multiple segments depending on the products they use. Situation-based segments depend on the context in which a purchase or consumption occurs, meaning a consumer can move between many different segments based on changing circumstances.

On the slide titled "How NOT to Segment Markets," what did the person who made the graph do wrong?

Likely errors could include: - Using overly broad or vague criteria. - Overlapping segments without clear distinctions. - Focusing on irrelevant or unhelpful variables. - Ignoring actionable insights.

Do people stop needing to define their identity as they get older?

No, people do not stop needing to define their identity as they get older; rather, their identity continues to evolve based on new experiences, relationships, and personal growth. While younger individuals may focus on establishing a core sense of self, older adults often refine or redefine their identity in response to life changes such as career shifts, family dynamics, aging, and personal interests. Identity is a lifelong process influenced by both internal and external factors.

Can price discrimination occur if different products are sold to two people at different prices?

No, price discrimination occurs when the same product is sold at different prices to different consumers, not when different products are sold at different prices.

Why is a brand insight also called a brand truth?

A brand insight is also called a brand truth because it reveals a deep, authentic understanding of what a brand means to its audience. It's not just a marketing claim but a reality that resonates with consumers on an emotional and psychological level. College students, who are constantly exposed to brands trying to capture their attention, can recognize when a brand genuinely aligns with their values and experiences versus when it's just empty advertising. A brand truth feels real, relevant, and undeniable—it's something consumers already sense but may not have articulated until the brand brings it to light.

What is the cultural identity crises?

A cultural identity crisis occurs when individuals or groups struggle to define their sense of self due to conflicting cultural influences, shifts in societal norms, or changes in personal experiences. This crisis often arises in multicultural environments where people feel torn between different traditions, values, and expectations, leading to uncertainty about their identity and place in society. It can affect consumer behavior, brand perception, and marketing strategies, as individuals seek products and messages that align with their evolving sense of self.

What is a dominant alternative?

A dominant alternative is the option that clearly stands out as the best choice among competing alternatives because it offers greater benefits or fewer drawbacks. In decision-making, this means that one option is objectively better than the others based on key factors like price, quality, convenience, or personal preference. For example, if two streaming services offer the same content but one is cheaper and has better features, it becomes the dominant alternative. Unlike choices that involve trade-offs, where pros and cons must be weighed, a dominant alternative makes the decision easier because it outperforms the competition in every relevant way.

What are the situations in which a brand can succeed without being consumers' first choice?

A brand can succeed without being the first choice in situations where: - It dominates an underserved niche. - The first-choice product is unavailable or too expensive. - It positions itself as a strong alternative with unique benefits. - Consumers use multiple brands interchangeably.

Why do ads that hit a consumer's sweet spot gain the consumer's attention?

Ads that hit a consumer's sweet spot gain attention because they align with personal interests, needs, or emotions, making them feel relevant and engaging. As a college student, you're constantly bombarded with ads, so the ones that stand out are the ones that feel personally tailored—whether it's an ad for a product you've been thinking about, a meme-style post that fits your humor, or something that connects to your lifestyle and aspirations. When an ad resonates on that level, it doesn't feel like just another sales pitch; it feels like something worth paying attention to.

What advantage does sales orientation offer, and what issue often accompanies it?

Advantage: Can drive short-term revenue through aggressive promotion and selling techniques. Problem: Risk of alienating customers or damaging the brand due to high-pressure tactics or mismatched offerings.

What is artistic/product orientation, and how does it compare to marketing orientation?

Artistic/product orientation focuses on creating high-quality or aesthetically superior products, assuming customers will value and seek them out. In contrast, marketing orientation centers on understanding customer needs and tailoring offerings to those preferences, even if the product itself isn't the most innovative or artistic.

Why is marketing orientation beneficial, and what challenges might it face?

Benefit: Builds customer loyalty and drives long-term profitability by meeting customer needs. Challenge: Requires ongoing market research, which can be time-consuming and expensive.

What is the main benefit of production orientation? What is its biggest problem?

Benefit: High efficiency and cost-effective production, making products widely accessible. Problem: It overlooks customer preferences and market demand, leading to potential mismatches between production and consumer needs.

How are Bobos different from Yuppies?

Bobos (short for "bourgeois bohemians") and Yuppies (young urban professionals) are both urban, affluent groups, but they differ in values, lifestyle, and social priorities. Yuppies, who emerged in the 1980s, are typically characterized by their focus on career advancement, material success, and a desire for high-status symbols. They prioritize traditional markers of wealth and social mobility, such as luxury goods, expensive brands, and a polished professional image. In contrast, Bobos, a term coined by journalist David Brooks in the early 2000s, represent a blend of bourgeois (middle-class) values with bohemian (artistic, countercultural) ideals. While Bobos also seek success and comfort, they prioritize experiences, authenticity, and intellectual pursuits over materialism. Bobos are likely to embrace organic food, sustainable fashion, and alternative lifestyles while maintaining professional careers. The key distinction lies in their approach to status: Yuppies seek recognition through wealth and outward symbols of success, while Bobos blend traditional success with a more progressive, cultural, and sometimes unconventional outlook on life.

The curse of knowledge and the false consensus effect are problems for marketers because...

Both biases can lead marketers to misjudge their audience. The curse of knowledge may cause them to use language or ideas their audience doesn't understand, while the false consensus effect may lead them to incorrectly assume their audience shares their preferences or values.

How is brand equity related to net present value?

Brand equity and net present value (NPV) are closely related as both involve the assessment of a brand's financial impact on a company's long-term profitability. Brand equity represents the value a brand adds to a product or service beyond its functional benefits, often leading to higher customer loyalty, premium pricing, and stronger market presence. These advantages translate into predictable and enhanced cash flows over time. NPV, on the other hand, measures the present value of future cash flows generated by an investment, discounted to account for the time value of money. A strong brand with high equity typically contributes to higher and more consistent cash flows, which, when calculated in NPV terms, can significantly increase the valuation of a business. Essentially, brand equity is an intangible asset that influences the quality and quantity of future revenues, which are integral to determining a company's NPV and overall financial health.

What is the relationship between brand meanings and the mental connections our brain makes between ideas?

Brand meanings are deeply intertwined with the mental connections our brain makes between ideas, as our brain continuously processes and categorizes information to make sense of the world. When we encounter a brand, our brain links it to a set of associations formed by past experiences, emotions, values, and societal influences. These associations help shape the meaning we assign to a brand, influencing how we perceive it and interact with it. For example, a luxury car brand may evoke thoughts of wealth, status, and sophistication, while a fast-food chain might trigger associations of convenience and comfort. These mental connections are often influenced by repeated exposure, advertising, and personal experiences, which reinforce certain ideas and emotions. Over time, these associations become so embedded in our minds that they shape our perceptions, attitudes, and behaviors toward the brand, demonstrating how brand meanings are constructed through complex networks of mental connections.

Definition: Expanded Brand Extension Opportunities

Brands with equity can more easily introduce new products under the same brand name, reducing the cost and risk associated with launching new products

Definition: Higher Price Premiums

Brands with strong equity can charge higher prices because consumers perceive them as higher quality or more desirable.

Definition: Licensing Opportunities

Brands with strong equity can license their brand name, enabling profits with little to no additional expense.

Definition: Attracting Better Partnerships and Alliances

Companies with well-established brands are more attractive to potential partners looking to co-brand or enter into agreements.

How can a marketing orientation be applied when you cannot change the product?

By focusing on how the product is positioned, marketed, and sold. This might include emphasizing the product's unique benefits, improving customer service, and tailoring communication to highlight how the product meets customer needs.

What is a balanced orientation, and why is it so effective?

Combines elements of marketing, societal, and production orientations to meet customer needs while considering efficiency and social responsibility. It works well because it provides a comprehensive approach that balances short-term profitability with long-term brand sustainability and customer loyalty.

How are cultural and economic capital related to the size of logos on luxury goods?

Cultural and economic capital are deeply intertwined in the branding strategies of luxury goods, particularly when it comes to the size of logos. Economic capital refers to the wealth and purchasing power of consumers, which allows them to afford luxury items, while cultural capital is associated with the symbolic value and social status that these goods convey. Luxury brands often use logo size as a strategic tool to reflect both cultural and economic values. A larger logo on a luxury item can signal a high status, catering to individuals with the economic means to display their wealth openly. This type of branding appeals to consumers who want to flaunt their social standing, aligning with the concept of economic capital. On the other hand, subtle or smaller logos cater to those who possess cultural capital, valuing the exclusivity and understated nature of luxury. For these consumers, luxury is not about overt display but about being part of a select group that understands the value of the brand without the need for conspicuous signage. In essence, the size of logos on luxury goods plays a significant role in signaling both economic and cultural capital, shaping consumer identity and their connection to wealth and status.

How does cultural capital relate to education, taste, politics and where people live?

Cultural capital refers to the non-financial social assets that influence an individual's ability to navigate and succeed in society, often including knowledge, skills, education, and cultural awareness. In terms of education, cultural capital plays a significant role in shaping a person's academic success. Individuals who have access to higher levels of cultural capital—such as being raised in an environment that values education, language, and intellectual pursuits—tend to perform better academically. Taste, in the context of cultural capital, relates to the preferences and values individuals develop through exposure to certain cultural activities (like art, music, or literature), which often reflect social class and upbringing. Politics is also influenced by cultural capital, as it helps determine the level of political engagement or awareness an individual may have, as well as their ability to advocate for particular ideologies or causes. Finally, where people live is closely linked to cultural capital because certain areas, often based on socioeconomic status, provide access to better educational resources, cultural activities, and social networks, all of which contribute to the development and perpetuation of cultural capital. Thus, cultural capital is a key factor that influences not only individual opportunities but also the broader social structures that determine life chances.

This deck contains many self-study slides with examples of the false consensus effect. Why is each of them an example of this effect?

Each example demonstrates how people overestimate the extent to which others agree with their beliefs, opinions, or behaviors, showcasing a misalignment between personal assumptions and actual consensus.

In what ways are economic and cultural capital both displays of skill and achievement?

Economic and cultural capital are both integral to demonstrating skill and achievement, though they manifest in different ways. Economic capital, often measured in terms of wealth or income, is a clear indicator of financial success and the ability to access resources and opportunities. It reflects not just the ability to earn or accumulate wealth but also how effectively one can manage, invest, or leverage financial resources in ways that result in tangible achievements, such as business success, property ownership, or investment growth. Cultural capital, on the other hand, refers to the non-financial assets that influence social mobility, such as education, cultural knowledge, language, and social networks. This form of capital reflects the skill of navigating social and cultural norms, as well as the achievement of social prestige through cultural proficiency and intellectual pursuits. Both types of capital require investment and effort to acquire, and they act as symbols of skillful mastery within their respective spheres—whether it's economic success through resource management or cultural accomplishment through intellectual or social engagement.

What is economic and cultural capital?

Economic capital refers to the financial resources and assets that individuals, businesses, or organizations possess, such as money, property, or investments. It plays a crucial role in shaping one's ability to access opportunities, generate wealth, and influence economic outcomes. Cultural capital, on the other hand, refers to the intangible assets that individuals hold in terms of knowledge, skills, education, and cultural awareness. It encompasses factors such as familiarity with cultural norms, social networks, and language proficiency that can influence one's success in social and professional settings. While economic capital is measurable through financial means, cultural capital is more qualitative and relates to the social and cultural resources that can enhance an individual's status and influence within society. Together, economic and cultural capital interact to shape the opportunities available to individuals, influencing their social mobility and ability to navigate various social and economic systems.

What is the main difference in the considerations that established brands vs new brands must take into account when choosing a target market? How is this related to your celebrity in the project?

Established brands have the advantage of existing brand recognition and a loyal customer base, so they often focus on refining their target market by expanding to new demographics or strengthening relationships with current consumers. They rely on brand reputation, customer data, and market positioning to maintain their competitive edge. In contrast, new brands must carefully define their target market from scratch, identifying unmet needs and differentiating themselves from competitors. They typically experiment more with branding, messaging, and positioning to attract attention and establish credibility. This connects to my celebrity in the project because their existing audience influences how a brand markets itself. If the celebrity is associated with a well-known brand, the focus is on reinforcing trust and aligning with the brand's image. However, if they are endorsing a new brand, the strategy revolves around building awareness and using their influence to attract an initial customer base.

Be able to define ethnography and describe its strengths and weaknesses.

Ethnography is a qualitative research method used to study and understand the social behaviors, cultural practices, and daily lives of people within their natural environments. It often involves prolonged observation, participation, and interviews to gather in-depth insights. One of its primary strengths is the ability to provide a detailed, holistic understanding of a group's culture and context, capturing nuances that quantitative methods might overlook. It fosters empathy and a deeper connection to the subject matter. However, ethnography has its weaknesses: it is time-consuming, labor-intensive, and can be subject to researcher bias. Additionally, findings may not always be generalizable due to the focus on specific groups or communities. Despite these challenges, ethnography is invaluable for gaining rich, contextualized knowledge of human behavior and societal dynamics.

How is experts' taste in clothing, food, music, etc. different from more mainstream taste?

Experts' taste in clothing, food, music, and other areas tends to be more refined, specialized, and influenced by deeper knowledge or experience in their field. Unlike mainstream taste, which is shaped by popular culture, social norms, and accessibility, experts develop preferences based on technical skill, historical context, and nuanced appreciation. For example, a fashion expert may prefer avant-garde designs that challenge conventional styles, while the average consumer might gravitate toward trendy, mass-produced clothing. Similarly, a music critic might favor complex compositions or underground artists, whereas mainstream listeners often enjoy widely played, catchy tunes. This distinction arises because expertise allows for a greater understanding of subtle details, leading to a more discerning and sometimes unconventional taste.

What does it mean for a product or brand to become part of someone's self?

For a product or brand to become part of someone's self, it means that the individual identifies with it on a deep, personal level, integrating it into their sense of who they are. This connection can manifest emotionally, symbolically, or through habitual use, making the brand or product an extension of their identity. It influences how they see themselves and how they want to be perceived by others, often shaping their choices, behaviors, and even social interactions.

How does the naïve marketing orientation differ from the enlightened marketing orientation?

Naïve marketing orientation focuses solely on customer desires without considering feasibility, sustainability, or profitability. Enlightened marketing orientation balances customer needs with long-term business and societal goals, ensuring practical and ethical strategies.

Definition: Enhanced Company Valuation

High brand equity can increase a company's stock price and investment appeal, as it often signifies stable future earnings.

Definition: Customer Trust and Confidence

High brand equity results from trust, often leading to customer preference

Suppose you wanted to encourage people to eat more vegetables. And assume there were people who ate more vegetables than average, but still not as many as they needed. What problem might occur if you told these people that they were eating more vegetables than the average person. How could using the injunctive norm solve this problem.

If you tell people who eat more vegetables than average that they are already ahead of others, they might feel satisfied with their current intake and reduce their consumption rather than increasing it. This is because they may interpret the message as validation that they are doing well enough. Using the injunctive norm, which emphasizes what people should do rather than what others are doing, can solve this problem. By reinforcing the idea that eating more vegetables is the right and beneficial choice, you encourage them to continue improving their habits rather than settling for being above average.

Why is it important to go beyond summarizing what consumers say and provide consumer insights?

It's important to go beyond simply summarizing what consumers say because consumer insights offer a deeper understanding of their motivations, preferences, and behaviors. While summarizing provides basic data, insights uncover the "why" behind consumer actions, which can help businesses anticipate needs, create more targeted products, and craft effective marketing strategies. Consumers may not always express their true feelings or may be influenced by subconscious factors, and insights help to reveal these hidden drivers. By analyzing patterns, context, and underlying emotions, companies can form a more accurate picture of their customers and make data-driven decisions that foster stronger, long-term relationships and greater customer loyalty. This nuanced approach allows businesses to stay competitive and innovative in meeting consumer demands.

What does the word "capital" mean?

In the context of marketing and business, the word "capital" generally refers to financial resources or assets used by an organization to fund its operations, growth, and investments. It can also extend to other forms of value, such as human capital, which involves the skills and knowledge of employees, or intellectual capital, which refers to the intangible assets like patents, trademarks, and brand reputation. Capital is essential for acquiring the necessary resources, funding innovations, and expanding market presence. In terms of marketing, capital allows businesses to invest in advertising, research and development, and other strategic initiatives that drive long-term success. Essentially, capital is the foundational element that enables organizations to execute their plans, sustain operations, and create value in the marketplace.

What does it mean to make something part of who you are?

Making something part of who you are means integrating it into your identity, beliefs, values, and daily actions. This process often involves a deep emotional connection or personal resonance with the object, brand, or experience. In marketing, this concept is vital because it explains how consumers develop brand loyalty or attachment. When a product, service, or brand becomes intertwined with someone's self-image, it goes beyond being a mere purchase—it represents a facet of their personality, lifestyle, or social status. This transformation occurs through consistent use, positive experiences, and the alignment of the brand's message with the individual's core values, making it an integral aspect of how they define themselves and interact with the world around them.

What does market segmentation have to do with the need to have your product be a consumer's first choice?

Market segmentation helps businesses understand what specific groups value, enabling them to position their products to meet those needs more precisely, increasing the likelihood of becoming the consumer's first choice.

What is the relationship between market segments and product categories?

Market segments are groups of consumers with similar needs within a broader market, while product categories represent groups of related products that fulfill those needs. Products are developed to meet the specific demands of market segments.

Which orientation is typically the most profitable in high-wage economies like North America and Europe? Why?

Marketing orientation is generally the most profitable because it aligns products and services with customer needs, leading to higher satisfaction, loyalty, and repeat business. This is particularly important in high-wage economies where customers demand value and customization.

How can you distinguish between marketing orientation and societal marketing orientation?

Marketing orientation prioritizes understanding and meeting customer needs to drive satisfaction and profitability. Societal marketing orientation builds on this by also considering the long-term welfare of society and the environment, balancing customer satisfaction with social responsibility.

Definition: Increased Customer Loyalty

Strong brand equity fosters loyalty, leading to repeat purchases and lower sensitivity to price changes.

Definition: Greater Retailer Support and Shelf Space

Strong brands are given more prominence in stores because retailers expect them to sell well, enhancing visibility and sales.

What is tacit knowledge? How is it related to project questions?

Tacit knowledge refers to the kind of knowledge that is personal, experiential, and difficult to formalize or communicate. It encompasses insights, intuitions, and know-how that individuals gain over time through experience, often without being fully aware of it. This type of knowledge is typically learned by doing rather than being taught in a formal setting. In the context of project questions, tacit knowledge plays a significant role as it shapes the way team members approach problem-solving, decision-making, and execution. For example, a project manager may intuitively understand the best way to motivate a team or troubleshoot an unexpected issue based on past experiences, even though they may struggle to articulate exactly how they arrived at that solution. Since tacit knowledge is often not easily shared or written down, it can be challenging to transfer to others, making it a critical asset that influences the success of projects and requires effective collaboration and communication to leverage fully.

How does the relationship between challenges presented by an activity and a person's skills, predict how they will experience the activity?

The relationship between the challenges of an activity and a person's skills determines whether they experience enjoyment, frustration, or boredom. According to the concept of flow, developed by psychologist Mihaly Csikszentmihalyi, individuals experience the highest level of engagement when the challenge of an activity is balanced with their skill level. If an activity is too difficult relative to a person's abilities, they may feel anxious or frustrated. Conversely, if an activity is too easy, they are likely to feel bored or disengaged. When challenges and skills are well-matched, individuals enter a state of flow, where they become fully immersed, lose track of time, and find the experience deeply rewarding. This balance is crucial in marketing and consumer behavior, as products, services, and experiences that create a flow state can enhance customer satisfaction and brand loyalty.

Which is a better predictor of a person's future behavior, their past behavior or their intentions?

Past behavior is generally a better predictor of future actions because it reflects established patterns and real-life decision-making, whereas intentions often reflect aspirations that may not translate into action.

When is price discrimination legal or illegal when selling to consumers? How about when selling to businesses? Is price discrimination more likely illegal when selling to consumers or businesses?

Price discrimination is legal when selling to consumers as long as it does not involve deception, fraud, or discrimination based on protected characteristics (e.g., race, gender). It is generally illegal if it violates antitrust laws, such as engaging in predatory pricing or unfair trade practices. When selling to businesses, price discrimination is regulated under the Robinson-Patman Act, which prohibits charging different prices to competing businesses if it harms competition, unless justified by cost differences, changing market conditions, or competitive matching. Price discrimination is more likely to be illegal when selling to businesses due to stricter antitrust regulations.

What is the definition of price discrimination?

Price discrimination is the practice of charging different prices to different consumers for the same good or service based on factors such as willingness to pay, location, or purchase quantity, rather than differences in production costs.

What is production orientation, and how does it differ from sales orientation?

Production orientation focuses on producing goods efficiently and at a low cost, assuming that customers will buy whatever is available. Sales orientation, on the other hand, emphasizes actively persuading customers to buy through aggressive sales tactics, regardless of whether the product fits their needs.

What are projective questions, and why do we use them?

Projective questions are a type of open-ended inquiry used to encourage deeper exploration of a person's thoughts, feelings, and perceptions. These questions are designed to reveal insights about a person's internal world, often by asking them to project their feelings or experiences onto a situation, object, or hypothetical scenario. For example, asking someone, "If you were an animal, what would you be?" or "What would you do if you could change the world?" allows the individual to project aspects of their own identity, values, or desires onto their responses. The primary purpose of using projective questions is to uncover hidden emotions, motivations, and attitudes that may not be immediately accessible through more straightforward or direct questioning. They are commonly used in psychology, marketing, and research to gather more nuanced and candid responses, offering a window into unconscious or less articulated aspects of a person's personality or perspective.

How does repeated experience impact our level of liking for something?

Repeated experience with something generally increases our level of liking due to the mere exposure effect, which suggests that familiarity leads to preference. When we encounter something multiple times, our brain processes it more easily, creating a sense of comfort and enjoyment. This is why songs, foods, or brands that initially seem unremarkable can become favorites over time. However, this effect has limits—overexposure can lead to boredom or annoyance. Overall, repeated experience helps shape our tastes by reinforcing positive associations and making the unfamiliar feel more familiar and appealing.

Understand the differences between self-report, observational, and experiential data.

Self-report, observational, and experiential data are three distinct methods of gathering information, each with unique strengths and limitations. Self-report data involves individuals providing information about themselves, typically through surveys, interviews, or questionnaires. This method is valuable for capturing subjective experiences, attitudes, and opinions, but it can be prone to biases such as social desirability or inaccurate recall. Observational data, on the other hand, is collected by researchers watching and recording behaviors or events in real-time or through video recordings. It provides objective insights into actions and interactions but may lack context about the underlying thoughts or feelings driving the behavior. Finally, experiential data captures firsthand, moment-to-moment experiences, often using methods like diary entries, experience sampling, or wearable sensors. This approach focuses on real-time emotional or sensory input, offering rich detail but requiring participants' active engagement, which can influence natural behaviors. Together, these methods complement one another, providing a comprehensive understanding of human behavior and experiences.

Why is it sometimes said that social norms are "secret persuaders"?

Social norms are called "secret persuaders" because they subtly influence behavior and decision-making without individuals consciously realizing it. People tend to conform to societal expectations, often internalizing norms as their own beliefs, which shapes their preferences, actions, and even emotions in ways that feel natural rather than imposed.

In what situations do social norms have the greatest influence on our behavior?

Social norms have the greatest influence on our behavior in situations where there is strong social pressure, high uncertainty, or a desire for social acceptance. They are especially powerful in unfamiliar environments, when the behavior is publicly visible, when group identity is important, and when there are clear consequences for nonconformity. Norms also shape behavior more strongly when they align with personal values or when influential individuals reinforce them.

What is the societal marketing orientation's primary strength and potential downside?

Strength: Aligns with increasing consumer demand for ethical and sustainable practices, enhancing brand reputation. Downside: Balancing profitability with societal goals can be difficult and may lead to higher costs.

How is the UM-D's message to faculty about the percentage who give to the university likely to influence future giving?

The University of Michigan-Dearborn's message to faculty about the percentage who give to the university is likely to influence future giving through social proof. If the percentage is high, it can create a sense of collective participation and encourage more faculty to contribute, as people are more likely to give when they believe others like them are doing the same. Conversely, if the percentage is low, it may discourage giving by implying that donating is not the norm. The effectiveness of the message depends on how the statistic is framed and whether it reinforces a positive social expectation.

What is the basic 2-step process behind price discrimination?

The basic 2-step process behind price discrimination involves first identifying different customer segments based on their willingness to pay and then charging each segment a different price to maximize revenue.

What is the difference between the curse of knowledge and the false consensus effect?

The curse of knowledge occurs when someone assumes others have the same level of knowledge or expertise they do. The false consensus effect is when people overestimate how much others share their opinions, beliefs, or behaviors.

What is the difference between emic and etic understandings of an interview?

The difference between emic and etic understandings of an interview lies in the perspective from which the interview is analyzed. An emic approach focuses on understanding the subject's experience from within their own cultural context. It involves interpreting their thoughts, behaviors, and beliefs from their own point of view, often using language and concepts familiar to them. On the other hand, an etic approach looks at the interview through an external, often more objective lens. It seeks to apply universal or comparative frameworks to analyze the responses, focusing on patterns and structures that can be observed across different cultures or groups. In essence, emic emphasizes insider perspectives, while etic emphasizes outsider analysis. Both approaches are valuable, but they offer distinct insights depending on whether the goal is to understand a culture from within or to compare it with others.

Some symbolic meanings are largely arbitrary, but others are not. Why is this important? Why are non-arbitrary symbols powerful?

The distinction between arbitrary and non-arbitrary symbols is crucial because it influences how meaning is conveyed and interpreted in communication. Arbitrary symbols, like words or signs, derive meaning from cultural or social conventions rather than any intrinsic connection to what they represent. For instance, the word "dog" has no inherent connection to the animal it describes; it's simply a convention that speakers of a certain language agree upon. However, non-arbitrary symbols are tied more directly to the essence of what they represent, often evoking a deeper, more universal understanding. For example, a red stop sign is universally associated with the action to halt, and its color and shape are not random but designed to elicit immediate recognition and response. Non-arbitrary symbols are powerful because they can communicate messages more directly and viscerally, tapping into universal human experiences or biological instincts. Their ability to bypass complex interpretation makes them particularly effective in contexts like safety, emotions, and cultural rituals, where clarity and immediate impact are essential.

How is the distinction between cultural and economic capital related to current politics and the "culture war".

The distinction between cultural and economic capital is deeply intertwined with the current political landscape and the ongoing "culture war." Economic capital refers to tangible resources, such as wealth and property, that allow individuals or groups to exert influence in society. Cultural capital, on the other hand, encompasses intangible assets such as education, social networks, and cultural knowledge that provide individuals with status and power within specific social contexts. In the context of the "culture war," political debates often center around cultural values—issues like identity, social justice, and traditional norms—while economic capital plays a significant role in determining access to power and influence in shaping these debates. As political divides deepen, groups with significant economic capital may attempt to preserve traditional cultural values that support their economic interests, while others use cultural capital to challenge these values in the pursuit of greater equality and social change. This dynamic fuels the "culture war" by pitting different groups against each other, with economic capital helping to solidify the positions of those with greater wealth, while cultural capital enables others to contest prevailing power structures. The result is a complex relationship where both types of capital influence political outcomes, and where debates over cultural identity often reflect deeper economic struggles.

What is the point of the example about gross candy for kids?

The example illustrates how children might find value or appeal in things adults view as unappealing. It highlights the importance of understanding the target audience's unique preferences instead of assuming they align with one's own.

How is the flow model related to cultural capital?

The flow model and cultural capital are intricately connected in the context of understanding how individuals and groups engage with resources, particularly in social and economic exchanges. The flow model, which emphasizes the continuous movement of resources, information, and energy, can be related to cultural capital by viewing cultural knowledge, practices, and symbols as key assets that flow between individuals and communities. Cultural capital, as defined by Pierre Bourdieu, includes elements like education, taste, language, and cultural knowledge that individuals can use to gain social advantage. In the flow model, these forms of cultural capital circulate within society, influencing how people interact with each other, access opportunities, and establish social networks. The flow of cultural capital enables individuals to navigate social structures and contribute to shaping collective identity, while the dynamics of the flow model highlight how these resources are exchanged and transformed across different contexts. Thus, the flow model provides a framework to understand how cultural capital is mobilized and distributed, ultimately impacting social stratification and access to various forms of power and privilege.

What is the core, most fundamental reason why we segment markets?

The fundamental reason for market segmentation is to identify and target groups of consumers with specific needs and preferences, allowing businesses to tailor their marketing efforts and offerings for greater efficiency and effectiveness.

What consumers buy is influenced both by what they can afford and what they want. Which has more of an impact on what consumers want, economic or cultural capital?

The impact of economic and cultural capital on what consumers want is deeply interconnected, but cultural capital tends to have a more profound influence on shaping consumer desires. Economic capital, or the financial resources that a consumer possesses, sets the boundaries for what is affordable, but it does not necessarily dictate what is desired. Cultural capital, on the other hand, refers to the values, norms, and practices that individuals learn from their social environment, which can significantly influence tastes, preferences, and lifestyle choices. For instance, a consumer may have the financial means to purchase luxury goods, but their desire to own such items may be shaped by cultural influences such as social status, peer groups, and media representations. These cultural elements can drive consumer behavior even in the absence of the immediate financial means to afford those desires. Thus, while economic capital determines what is possible, cultural capital often dictates what consumers perceive as desirable, making it a more influential factor in shaping consumer wants.

How does the norm of reciprocity help explain why ending emails with "thanks in advance" gets more positive responses than using other closings?

The norm of reciprocity suggests that people feel compelled to return favors or positive actions. When an email ends with "thanks in advance," it implies that the recipient's help is already expected and appreciated, creating a subtle obligation to comply. This makes them more likely to respond positively compared to other closings that do not invoke this sense of reciprocity.

When evaluating potential target markets, what is the difference between the potential profitability of that target market and your competitive strength in serving that target market?

The potential profitability of a target market refers to how much revenue and long-term value a company can generate from that specific group of consumers. This depends on factors like market size, customer spending habits, demand for the product, and overall industry growth. On the other hand, competitive strength in serving that market is about how well a company can meet the needs of that audience compared to competitors. This includes factors like brand reputation, unique product advantages, pricing power, and distribution capabilities. A market may be highly profitable, but if a company lacks the resources, differentiation, or strategic advantage to compete effectively, it may struggle to succeed.

Why do you need to be cautious when interpreting self-report data?

When interpreting self-report data, it is essential to be cautious because such data is prone to several biases and inaccuracies that can affect its reliability. Respondents might provide socially desirable answers instead of truthful ones, especially when the questions involve sensitive topics. Memory recall issues can also lead to inaccurate reporting, as individuals may unintentionally misremember past events or details.

What are three ways that the things we love become part of who we are?

The things we love often become part of who we are in several profound ways. First, they shape our identity through the emotional connections we develop with them. Whether it's a favorite brand, a cherished hobby, or a beloved product, these items evoke feelings of joy, nostalgia, or fulfillment, and we begin to associate these emotions with our sense of self. Second, they influence our social relationships and how we express ourselves to others. For example, the brands or experiences we gravitate toward can signal our values, tastes, and beliefs to the people around us, thus shaping how we are perceived and how we connect with others who share similar interests. Lastly, the things we love become part of our routines and lifestyle, reinforcing their role in defining who we are. These objects or activities often become ingrained in our daily habits, contributing to our sense of purpose and routine, and providing us with a source of comfort, stability, and even a sense of belonging. Together, these factors make the things we love integral to our personal identity.

What are the three types of consumer insights

The three types of consumer insights are behavioral, attitudinal, and demographic. Behavioral insights focus on what consumers do, like their purchasing habits, website interactions, and brand engagement. Attitudinal insights dive into why consumers make decisions, including their motivations, values, and emotional connections to products or brands. Demographic insights cover who the consumers are, including age, gender, income, education, and other personal characteristics that influence their buying behavior.

What are the three types of social norms?

The three types of social norms are folkways, mores, and laws.

What are the two ways discussed in this lecture by which situations influence behavior?

The two ways situations influence behavior are by guiding perception, attention, and interpretation of events, and by shaping the incentives and constraints that determine the choices people make.

How can you word messages to make the descriptive norm even more powerful?

To make the descriptive norm more powerful, emphasize how common and widespread the behavior is, use vivid language to create a sense of momentum, highlight recent trends or growth, and include social proof or credible sources to reinforce the message.

How is understanding data like being a detective?

Understanding data is similar to being a detective because both require critical thinking, pattern recognition, and the ability to piece together pieces of information to uncover the truth. Just like a detective examines clues, interviews witnesses, and follows leads to solve a case, a data analyst scrutinizes numbers, identifies trends, and tests hypotheses to make sense of the data. In both cases, there's often no clear answer at the beginning, and the investigator must piece together the various elements, sometimes using intuition and experience, to form a coherent story or conclusion. Additionally, both detectives and data analysts must remain open-minded, as initial assumptions may be incorrect, and new evidence or data may shift their direction. Ultimately, the goal is to draw meaningful conclusions, whether solving a crime or identifying actionable insights from data.

How can understanding flow help us gamify activities that wouldn't otherwise be considered fun?

Understanding flow can help us gamify activities by making them more engaging, immersive, and rewarding. Flow occurs when someone is fully absorbed in a task that balances challenge and skill, providing clear goals and immediate feedback. By applying these principles to mundane activities, we can make them feel more like a game. For example, fitness apps use progress tracking, badges, and competition to turn exercise into an enjoyable challenge. Similarly, workplace productivity tools integrate point systems and rewards to motivate employees. By designing activities to foster flow, we can make even routine or difficult tasks feel more enjoyable and intrinsically motivating.

When conducting an ethnography, where is the data collected?

When conducting an ethnography, data is typically collected in the natural environment of the group or community being studied. This involves immersing oneself in the daily lives and routines of the participants to gain a deep understanding of their behaviors, customs, and social interactions. Ethnographers gather data through various methods such as participant observation, in-depth interviews, and informal conversations. These settings can range from workplaces, schools, and homes to public spaces or cultural events, depending on the focus of the study. The goal is to observe and document the context in which social phenomena occur, providing a holistic and nuanced perspective of the group or culture being studied.

Definition: Lower Marketing Costs

When consumers see an ad from a brand they know and trust, that ad has more impact, allowing them to spend less on advertising

When talking about things they love people often say "I couldn't live without it." What do they really mean by that?

When people say, "I couldn't live without it," they are expressing a deep emotional attachment to something they value highly, often a product, brand, or experience that has become integral to their lives. This phrase signifies more than just necessity—it reflects the personal significance and satisfaction derived from the object in question. In marketing, such statements can highlight the strong emotional connections consumers form with brands or products. These connections may stem from the benefits the product provides, whether functional, emotional, or social. By understanding this language of passion, marketers can recognize the power of brand loyalty and create strategies that tap into consumers' desires, making their offerings feel indispensable in their daily lives. The phrase thus serves as a reflection of consumer behavior that blends need, want, and emotional fulfillment.

What are the special considerations when considering targeting highly price sensitive segments?

When targeting highly price-sensitive consumers, businesses need to focus on offering the best value while keeping costs low. These customers are quick to switch brands for better deals, so pricing strategies like discounts, promotions, and loyalty rewards are essential to keep them engaged. Companies should also emphasize affordability in their messaging, making it clear why their product is the best option for the price. At the same time, they must be careful not to sacrifice too much quality, as even price-sensitive buyers expect a certain level of reliability. Additionally, operational efficiency is crucial—cutting unnecessary costs without hurting the customer experience helps maintain profitability. Brands that succeed with this segment often use strategies like bundling products, offering limited-time deals, and leveraging digital marketing to maximize reach while keeping advertising expenses low.

Definition: Increased Bargaining Power

With a strong brand, a company can negotiate more favorable terms with suppliers and distributors.

Can salespeople adopt a marketing orientation in their work? If so, how?

Yes, by focusing on understanding the customer's needs and offering solutions that genuinely address those needs rather than pushing for a sale at any cost. This approach builds trust and fosters long-term customer relationships.

Hitting the sweet spot occurs when what two types of insights connect?

Yes, hitting the sweet spot occurs when cultural insights and psychological insights connect.