MKTG 3730 Chp 7

Who are market mavens?

generalized market influencers

Individuals sharing information with each other in a verbal form, including face-to-face, phone, and the Internet is referred to as

word-of-mouth communications

Place the steps of the adoption process in order with the first step at the top of your list and the last step at the bottom of your list

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

What are the three forms of reference group influence?

1. normative 2. identification 3. informational

True/False: Most people only belong to one group at a time

False

Which person is most likely to conform to group norms?

Jayla meets with a business professional group without fail every week and always dresses appropriately

Match the ways advertising uses word-of-mouth and opinion leadership to their correct descriptions

Stimulation = This involves themes that encourage current owners of a brand to talk about their impressions of the brand, preferable to prospective owners Simulation = This involves having widely acknowledged opinion leaders recommending a product or a brand in an advertisement

The process individual consumers go through when purchasing an innovation is known as the _____ process

adoption

Even though consumption subcultures based on activities are markets for those activities, they

also develop rituals and symbols involving other products or services

Reference group influence is strong when

an item is not a necessary purchase

The first person to adopt an innovation is a(n) _______, while the last person to adopt an innovation is a(n) ________

innovator; laggard

Percy is considered to be an opinion leader. He searches for information from the mass media as well as from other people and then passes the information on through social media channels to his friends and groups to which he belongs. This represents a ______ flow of communication.

multistep

What percentage of consumer purchases are estimated to be influenced by word-of-mouth communications?

over 80 percent

Viral marketing often involves

social media

In the diffusion process, purchase behavior that involves a product being purchased with some degree of regularity is referred to by the term

spread

What 4 variables does your text use to classify groups?

1. type of contract 2. strength of social tie 3. attraction 4. membership

Which is an example of dynamically continuous innovation?

A new window cleaner does not require customers to wipe the cleaner dry once applied.

What happens in the Asch phenomenon?

A person becomes most likely to agree with the judgment of others due to social pressure

Which is an example of discontinuous innovation?

An auto manufacturer has chosen to make all of its SUVs into electric vehicles

What is the main reason for firms employing a moving target market approach to marketing innovations?

An innovation's earlier purchasers differ from its later purchasers

Match each reference group to its proper description

Dissociative reference groups = These are nonmembership groups with negative desirability Aspiration reference groups = These are nonmembership groups with positive desirability

What effect do referral reward programs, used by retailers, have on consumers?

They are effective in generating positive word-of-mouth

How do brand communities add value to a brand?

Through activities that create brand engagement

True/False: A consumer's negative experience with a brand can motivate that person to engage in word-of-mouth communications

True

Match the communication flow to its correct description

Two-step flow of communication = The process by which one person receives information from the mass media or other sources and passes it on to other members of a group Multistep flow of communication = The process by which members of a group as well as opinion leaders receive information from the mass media, opinion leaders, and even from group members who aren't opinion leaders

Word-of-mouth marketing is important to marketers because

consumers are more likely to trust the opinions of people

Adoption of this type of innovation requires relatively minor changes in consumer behavior.

continuous innovation

Unlike non-opinion leaders, opinion leaders in a group are known for their _____ with a product

enduring involvement

In the context of characteristics of groups, primary groups ______ than secondary groups

influence an individual's behavior more

Both dissociative reference groups and aspiration reference groups

influence people's behavior

Debra recently visited a friend's house where she noticed a lot of beauty products belonging to a brand she had never heard of—Shimmer. The next time she went to a store, she decided to buy Shimmer products, just to try them out. What kind of reference group influence does this scenario most likely depict?

informational influence

Special Fx, a gaming company, created a fake account on a social networking website, through which it gives rave reviews of its own products. Which guiding principle for using social media has Special Fx not followed in this scenario?

maintaining transparency

Nathan's company recently hired a new sales representative. In order to welcome and impress his new colleague, Nathan has extended a dinner invitation to the fanciest and priciest restaurant in town. What kind of reference group influence does this scenario most likely depict?

normative influence

A community that interacts over time around a topic of interest on the Internet is known as a(n)

online community

Goodreads is a website devoted to book lovers. Members can converse with each other, offering book reviews and book recommendations. For its members, Goodreads is an example of a(n)

online community

What determines the degree of innovation of a product?

the changes required in the behavior of a consumer

The manner in which innovations spread throughout a market is known as

the diffusion process

Which of the following slows down the process of diffusion for an innovation?

the innovation being risky to try and difficult to understand and use

Reference group influence is strongest when

the use of a product is highly visible to a group

Why do marketers often position products as appropriate for group activities?

to use reference group influence to target consumers

When can product sampling become a potent WOM (word-of-mouth) tool?

when it involves known opinion leaders

Clarissa just wrote a glowing review on Yelp about her visit to a new restaurant in town. She also posted pictures of the meals she and her friends ate on her Instagram page with the hashtag #yummy. This best exemplifies

word-of-mouth communication

In advertising, simulation is primarily used to simulate opinion leadership, whereas stimulation is primarily used to stimulate

word-of-mouth communication

Rank the adopter categories in the process of diffusion in the order in which they adopt an innovation, beginning with the first to adopt an innovation. Place the first category at the top and the last category at the bottom

1. Innovators 2. Early adopters 3. Early majority 4. Late majority 5. Laggards

How do marketers create buzz?

1. by using product placement 2. by limiting the supply of a product 3. by providing opinion leaders product samples in advance 4. by sponsoring popular events tied to a product

Which of the following are guiding principles for marketers who wish to effectively utilize online social media?

1. maintaining transparency 2. taking advantage of the unique capabilities of each venue 3. being a part of the community

Which of the following make the diffusion process for an innovation faster?

1. the innovation being perceived to meet a need better than existing methods 2. the innovation easily having a low-cost trial 3. the innovation's positive effects being easy to observe

Which of the following speed up the process of diffusion for an innovation?

1. the innovation having fewer individuals involved in the purchase decision 2. the innovation's use being consistent with an individual's values 3. the innovation satisfying an obvious need

When is an individual most likely to conform to the norms of a reference group?

1. when the individual engages in an activity relevant to the group's functioning 2. when the individual lacks personal decision confidence 3. when the individual feels a high level of commitment to the group

Which retailer is capitalizing on word-of-mouth and opinion leadership?

A health club offers its loyal customers a month of free personal training for bringing new members into the club

What is an example of continuous innovation?

A household cleaning product is now offered in a lemon scent

Match the categories of innovations to their descriptions

Continuous innovation = Adopting this kind of innovation requires small changes in behaviors that are unimportant to a consumer Dynamically continuous innovation = Adopting this kind of innovation requires moderate changes in important behaviors or major changes in behaviors of moderate importance to a consumer Discontinuous innovation = Adopting this kind of innovation requires huge changes in behaviors of significant importance to a consumer

________ is the most salient characteristic of opinion leaders as it leads to enhanced experience with and knowledge about a product category or activity

Enduring involvement

True/False: A product is known as innovation after it has passed an objective measure of technological change

False

True/False: E-fluentials never actively use the Internet to gather and disseminate information through numerous online avenues, including social media.

False

_____ are generalized market influencers that are well-versed in technology and electronics, use multiple media devices at the same time, seek out and write online reviews and have influence in areas other than technology.

Influentials

Match the forms of reference group influence to their correct descriptions

Information influence = This occurs when a person utilizes the opinions and behaviors of a reference group as the most probable pieces of information Normative influence = This occurs when a person fulfills group expectations in order to either obtain a direct reward or to avoid from a sanction, and it is also called utilitarian influence Identification influence = This occurs when a person incorporates a group's values and norms, and it is also known as value-expressive influence

Match the adopter categories to their correct descriptions?

Innovators = They are venturesome risk takers who are capable of absorbing the social and financial costs of adopting an unsuccessful Early adopter = They are often opinion leaders who are willing to take a calculated risk on an innovation but are worried about failure Early majority = They tend to be cautious about innovations and adopt them soon, but only after they have been proved successful with others Late majority = They tend to be skeptical about innovations and adopt them mostly in response to decreased availability of a previous product or social pressures Laggards = They are usually dogmatic and oriented toward the past, engaging in limited social interaction and adopting innovations with reluctance

Match the group to the description that best depicts its relationship to social ties

Primary groups = They involve strong social ties and frequent interaction and include friends and family Secondary groups = They involve weak social ties and infrequent interaction and include professional and neighborhood associations

What often happens to the consumption patterns and symbols adopted by a consumption subculture to affirm its unique identity?

They get appropriated by the larger market for a time as a style

Why would a salesperson use the Asch phenomenon in personal selling?

To ensure maximum positive responses from potential customers

A nongeographically bound community that is based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm is known as a(n) _______ ________

brand community

People who own Harley-Davidson motorcycles are passionate about the brand. To them it represents a way of life. Owners connect with other riders from around the country, wear certain types of clothing, and participate in group rides. Thus, Harley Davidson can be thought of as a

brand community

Brand communities are important to marketers because they

build intense loyalty and add value to the ownership of their product

Creating _____ refers to the exponential expansion of word-of-mouth that occurs when "word spreads like wildfire" with limited mass media support.

buzz or buzz marketing

A distinctive subgroup of society that self-selects on the basis of a shared commitment to a specific product class, brand, or consumption activity is known as a(n)

consumption subculture

A market maven is a type of opinion leader who provides

crucial amounts of information to members of his or her group across an extensive range of products

What do marketers use to overcome diffusion inhibitors?

diffusion enhancement strategies

An analysis of an innovation from the perspective of a target market indicates potential obstacles called

diffusion inhibitors

Adoption of this type of innovation requires major changes in behavior of significant importance to the individual.

discontinuous innovation

Adoption of this type of innovation requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.

dynamically continuous innovation

Which adopter groups should a moving target market approach focus on first?

early adopters and innovators

In the context of marketing strategies, one of the key aspects of _____ is creating buzz.

guerrilla marketing

A product, idea, or practice that is perceived to be new by a relevant individual or group is known as a(n)

innovation

Which type of reference group influence usage, while creating advertisements, has raised the most ethical concerns since it plays on people's insecurities and fears?

normative influence

A web-based service that allows individuals to construct a public or semipublic profile within a bounded system, articulate a list of other individuals with whom they share a connection, and view and traverse their list of connections and those made by others within the system is known as a(n)

online social network site

Facebook, Twitter, and LinkeIn are all forms of

online social network sites

An individual who actively interprets, filters, or provides product and brand-relevant information to that person's friends, family, and colleagues is known as a(n)

opinion leader

Dylan knows all things "technology-related." He is constantly up on the latest products and researches product information all the time. Because of this, his family and friends go to him when they seek advice on technology products. Dylan would be considered a(n)

opinion leader

Consumption subcultures have a set of shared values or beliefs; an identifiable, hierarchical social structure; and unique rituals, jargon, and modes of symbolic expression. Therefore, they act as ______ for their members.

reference groups

Product sampling is also referred to as __________

seeding

Generally speaking, from a marketing standpoint, dissatisfied consumers are

twice as likely to tell people about their negative experience

An online strategy that uses electronic communications to trigger brand messages throughout a widespread network of buyers is known as

viral marketing