BUSI 332 Chapter 13, BUSI 332 Chapter 14, BUSI 332 Chapter 15, BUSI 332 Chapter 16
switching
times when a consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion
consumers tend to make simple and good decisions because
too much variety actually contributes to feelings of discontent and unhappiness
financial switching costs
total ecnomic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice
Choice does not mean that a particular alternative will be chosen, as consumers may simply choose to delay a choice until a future date or to forgo a selection indefinitely
true
Companies spend a great deal of time and money on improving the objective quality of their products. These efforts are limited, however, by consuemr perceptions of quality
true
Complaining is a relatively mild way of coping with anger
true
Consumer behavior may be viewed as a subset of the human deviance topic
true
Consumer misbehavior not only results from negative behaviors, but can sometimes stem from the intention of doing good
true
Consumers are often able to make good choices when considering only a single attribute
true
Consumers most often infer the existence of underlying attributes through perceptual attributes
true
Disgusted customers don't usually complain, but just go away, which can be of harm to the company
true
Even though all types of functional costs can prevent switching, evidence suggests that relational batteries may be the most resistant to influence
true
Evidence suggests that the imposition of rent controls (restricting rent prices below market equilibrium price) actually increases homelessness in urban areas
true
For firms that perform compensation not as quickly, consumers may reduce their spending by a total of $1 million per year
true
For problems regarding piracy of movies, musics, games, if the motivation is primarily based on utilitarian values, consumers will feel less morally unethical
true
In 2013, IKEA faced potentially damaging negative publicity when a problem surfaced with one of its bestselling products - Swedish meatballs (contains horsemeat)
true
In the US, loyalty programs more often work by offering on-the-spot discounts on selected items
true
Levitt's work brought about a new perspective that argued that businesses should defined themselves in terms of the consumer needs that they satisfy rather than in terms of the products they make
true
Managers acknowledge that initiatives that increase customer satisfaction do not always improve top-line performance
true
Noncompensatory rules are also used in high-involvement (eg. buying cars)
true
One study indicated that over 80% of respondents who reported alcohol-impaired driving also reporte engaging in binge drinking behaviors
true
One study shows that when a shopper has a reversal in orientation from a browser to a buyer within a retail store, she becomes highly likely to tell others about the great experience
true
Research indicates that unexpected and novel names can lead to increased product preference and choice
true
Research shows that consumers can handle a surprisingly high number of comparisons before overload sets in. A study revealed that consumers can evaluate as many as 10 product alternatives and 15 attributes before overload occurs
true
Research shows that improvements in objective quality may take as many as six years to be fully recognized consumers
true
Research shows that over 20% of the comments about feedback are fake
true
The accuracy of a consumer's evaluation depends heavily on the quality of judgements that they make
true
The consumption of authentic things add value over the consumption of synthetic experiences, particularly when the consumption environment contains high degrees of symbolism or consumers are highly involved in some activity
true
The key difference between compulsive shopping and buying is the buying process itself
true
True consumer loyalty consists of both a pattern of repeated behavior as evidenced by high customer share and a strong feeling of attachment, dedication, and sense of identification with a brand
true
We distinguish misbehavior and problem behavior by looking at the issue of self-control
true
When competitive intensity is high and switching costs are low, company is vulnerable to consumers who will switch providers even when satisfied
true
When consumers think a refund is too difficult, but still think the refund is fair, procedural justice contributes to inequity, but distributive fairness contributes to equity, since the consumer believes the refund was just
true
When expectations are held with a strong degree of confidence, both disconfirmation and performance perceptions affect satisfaction
true
With low involvement, high expectations will be associated directly with increased dissatisfaction, and low expectations will be associated directly with increased dissatisfaction
true
antiloyal consumers often are former customers who switched and treat the former marketing firm as a jilted partner
true
as of mid-2014, thirteen US states prohibit all drivers from using handheld cell phones and while no states completely bans cell phone use
true
compulsive shoppers tend to focus on the mental highs associated with "the hunt" whereas compulsive buyers feel the need to buy
true
confirmatory bias is particularly present when consumers receive recommendations from the marketer, and return policies are lenient
true
consumers are not always rational when they are evaluating and choosing from possible solutions to a problem
true
consumers have gradually become less brand-loyal and more store-loyal
true
consumers in a good mood tend to have good evaluation even though the information about the product might not be a lot; consumers seek variety to combat the feeling of boredom
true
consumers often make judgments about features based on their perceived relationship with other features
true
dissonance is sometimes known as a buyer's regret
true
equity judgments, in particular perceptions of unfair treatment, are particularly prone to lead consumers to switch
true
estimates reveal that as many as 2 million consumers meet the criteria of pathological gambling and another four to six million could be considered problem gamblers
true
expectations can have a direct impact on satisfaction when the consumer has very little involvement
true
features are often referred as attributes
true
for functional types of services, such as banking, utilitarian value is more strongly related to customer share (and therefore preventing switching) than is hedonic value
true
for more experiential types of services, such as mall shopping, hedonic value is more strongly related to customer share
true
one study by Partnership for a Drug-free America revealed that nearly one in five teenagers report using prescription drugs to get high, and nearly one in ten report abusing cough medicine
true
perceptions are not always in line with reality. One issue that pertains to consumer judgments is the difference between objective quality and perceived quality
true
self-ascribed causes are referred to as internal attributions
true
the ability of consumers to make accurate judgments when evaluating alternatives is influenced by their ability to perceive differences in levels of stimuli between two options
true
waiting ranks second only to rude service when it comes to complaining behavior
true
when consumer purchases something, part of the cost is for liability exposure
true
When information is missing, consumers tend to weigh the criteria that are common to both alternatives quite heavily in the evaluation. They also tend to discount information that is missing for the option that performs better on the common criteria
true (eg. TV A is rated good, B is rated excellent, but B lacks warranty. Consumer still chooses B because of the rating)
consumers don't always reveal, or may not even know, the criteria that truly are determinant
true (eg. airline safety - hard to visualize - need data to make it as determinant)
the promotion and place elements of the marketing mix can also be questioned (Eg. consumers may question about tickets to major events being made available only in selected channels)
true (eg. an incident about Bruce Springsteen fans in 2009, 2012 Olympic games' ticket scandals)
the number of levels and details within each level is influenced by familiarity and expertise with products
true (eg. can be understood as distinctions: snack - sweet snacks - mix, etc)
which criteria are determinant can depend largely on the situation
true (eg. consumer considers gas mileage as a determinant criterion when buying a car for himself; however, the safety of a car would likely be determinant factor if he were buying a car for his daughter)
Marketers also increase the amount of product consumed per occasion
true (eg. size of soft drink's bottle)
Coke-life appeals to not just diet-conscious but health0conscious consumers
true, because it contains about half the sugar of a typical Coke and shuns sweeteners typically used in diet soft drinks
examplars are first thought of within any category
true. From there, consumers will consider other things and use the first one as a benchmark. Brand comparison also occurs
Consumers display the tendency to jump to negative conclusions about service providers who promote themselves positively on one feature but omit information on another feature
true. It's called INNUENDO EFFECT
the shoplifting intentions of adolescents appear to be more heavily influenced by emotions than by moral beliefs
true. Older generations are opposite
if an event is attributed to a product or company, an external attribution is made
true; eg. I exercised just like my PT said and I've still gained weight
nondurable goods
typically inexpensive and usually consumed quickly (eg. soft drinks, pencils, and Kleenex, etc)
oniomania
used to describe compulsive shopping
branded variants
used to describe the practice of offering essentially identical products with different model numbers or names
conjoint analysis
used to understand the attributes that guide preferences by having consumers compare products across levels of evaluative criteria and the expected utility associated with the alternatives
abusive consumer behavior
verbally or physically abusive customers, uncooperative customers, drunken customers, and customers who break company policy
perceptual attributes
visually apparent and easily recognizable (size, shape, color, etc.);
SERVQUAL
way of measuring service quality that captures consumers' disconfirmation of service expectations
rancorous revenge
when a consumer yells insults and makes a public scene in an effort to hardm the business in response to an unsatisfactory experience
factors influencing expectations
word of mouth communication, consumer's experience, explicit promises (ads, promotions), personal factors, etc.
an increased demand for waters, teas, and juices in the recent year arouses because
young consumers seek healthy alternatives when they consider which type of beverage to buy: they seek low sugar content and few additives
cognitive dissonance
"lack of agreement" : an uncomfortable feeling that occurs when a consumer has lingering doubts bout a decision that has occurred
Consumer personality
- Highly impulsive consumers often make poor judgments, while consumers with a high need for cognition can overthink their decisions and sometimes regret the judgments that they've made - High self - monitors can also ruminate on their judgments by focusing too intensely on the consequences associated with various attributes
Tablets
- feature: screen size - benefit: ease of viewing
examples of superordinate and subordinate
- superordinate: beverages - subordinate: colas, sports drinks, juices, etc.
ways to measure consumer satisfaction
1. Direct, global measures 2. Attribute-specific 3. Disconfirmation
Ways of handling negative publicity
1. Do nothing; the news will eventually go away 2. Deny responsibility for any negative event 3. Take responsibility for any negative events and be visible in the public eye 4. Release information allowing the public to draw its own conclusion
organizations that responsible for monitoring marketing activities
1. Federal Trade Commission (FTC) 2. Food and Drug Administration (FDA) 3. Better Business Bureau (BBB) 4. Association of Advertising Agencies (AAAA)
Some examples of rating authorities
1. Financial Times: ranks business schools and graduate business programs 2. US News and World Report: ranks universities and programs, ranks hospitals 3. Consumer Reports: rates the latest consumer products from soap to automobiles 4. Wine Spectator and Wine Advocate: rate wines based on blind taste tests by editors on a scale of 50 to 100 5. JD Power: rates autos and many other industries 6. CNET: rates many consumer products, with an emphasis on electronics
Binge eating disorder consists of
1. Frequent eating episodes that include large quantities of food in short time periods 2. A felt loss of control over eating behavior 3. Feelings of shame, guilt, and/or digust about the amount of food consumed 4. The consumption of food when one is not hungry 5. The consumption of food in secret
Forms of third - party endorsement
1. Makes recommendations based on cumulative consumer ratings (eg. TripAdvisor) 2. Makes recommendations from subject experts
During the evaluation process. consumers make judgements about the following
1. Presence of features (eg. Does this car stereo store music?) 2. Feature levels (eg. how many songs does it store?) 3. Benefits associated with features (eg. I won't have to carry my MP3 player or CDs with me) 4. Value associated with the benefit (eg. both utilitarian and hedonic value are derived) 5. How objects differ from each other (eg. the other stereos don't offer this attribute)
Categories of switching costs
1. Procedural 2. Financial 3. Relational
How do marketers determine which criteria consumers use?
1. Surveys 2. Warranty registrations (asks consumers to indicate the specific criteria that were used in arriving at a purchase decision) 3. Perceptual mapping 4. Conjoint analysis
Handling consumer complaints effectively
1. Thank the customer for providing the information 2. Ask questions to clarify the issue 3. Apologize sincerely 4. Show empathy for the customer's situation 5. Explain the corrective action that will take place 6. Act quickly 7. Follow up with the customer after the corrective action
disposal decisions
1. Trashing 2. Recycling 3. Converting 4. Trading 5. Donating 6. Reselling
Characteristics of relationship quality
1. competence 2. communication 3. trust 4. equity 5. personalization 5. gratifying 6. customer oriented
4 major categories of noncompensatory decision rules
1. conjunctive rule 2. disjunctive rule 3. lexicographic rule 4. elimination-by-aspects (EBA) rule
conjunctive rule
1. consumer sets a minimum mental cutoff point for various features and rejects any product that fails to meet or exceed this cutoff point across all features 2. noncompensatory decision rule where the option selected must surpass a minumum cutoff across all relevant attributes (eg. all features must meet or surpass a mental cutoff of 5 to be selected. For ex, only the Ford Fiesta has performance ratings at or above 5 on all features)
Exchange between a business and a consumer constitutes a relationship with the help of two factors
1. customer have a lifetime value to the firm 2. true loyalty involved both a continuing series of interactions and feelings of attachment between the customer and the firm
categories of products
1. deficient products 2. salutary products 3. pleasing products 4. desirable products
consumer problem behavior examples
1. eating disorders 2. binge drinking 3. problem gambling 4. drug abuse
categories of CSR
1. ethical duties 2. altruistic duties 3. strategic initiatives
Components of moral beliefs
1. moral equity 2. contractualism 3. relativism
consumer misbehavior examples
1. shoplifting 2. illegal sharing of softwares and music 3. attacks 4. consumer fraud 5. abusive consumer behavior 6. illegitimate complaining 7. product misue 8. aggressive driving 9. drunk driving 10. cellphone use and driving 11. sexting
conditions that made dissonance exist
1. the consumer is aware that there are many attractive alternatives that may offer comparable value relative to the product/brand purchased. 2. the decision is difficult to reverse 3. the decision is important and involves risk 4. the consumer ha slow self-confidence
Components of expectations
1. the probability that something will occur 2. an evaluation of that potential occurrence
Reasons that Ronald Fullerton gives for consumer misbehavior
1. unfulfilled aspirations 2. thrill seeking 3. lack of moral constraints 4. differential association 5. pathological socialization 6. provocative situational factors 7. opportunism
on average across many service settings, consumers get impatient with waits over ________ minutes
10
Most laws prohibit sellers from increasing prices from anywhere between _________ % or more over a thirty - day period after a disaster
10-25
Gatorade's own Twitter site has over ________ followers
125,000
Research suggests that about _______ customers had something to complain about but chose not to voice that complaint to management
20
how many percents different a product need to be in order for the consumers to notice?
20% JND
approximately ___% of shoplifters are children
25
What is true about satisfaction? A. Consumer satisfaction is a post-consumption phenomenon because it is a reaction to an outcome B. Like other emotions, satisfaction results from a cognitive appraisal. Some refer to this appraisal as the satisfaction judgment; however, the appraisal and the emotional reaction are distinct events C. Satisfaction as an emotion is relatively mild and does not create strong behavioral motivations
All are correct
an example of denying responsibility
Facebook's case in 2014: Facebook denied conducting experiments involving manipulating information presented in consumer newsfeed
direct, global measures
How do you rate your overall satisfaction?
an example of doing nothing
KFC changed their names to emphasize fried chicken as its only product, not because using genetically modified non-chickens to produce the meat sold in restaurants. However, KFC issued no articles for clarification
Immanuel Kant categorical imperative
One should act in a way that would be considered a universal law for all people facing the same situation (Is this action right?)
an example of releasing information
Pepsi released the assembly line of the Pepsi when rumors go around that people find needles in their bottles
Situational influences
Situations influence shopping decisions: buy as a gift, or buy for yourself, what occasions, etc.
customer perks
Starbucks Gold Card apps, Gold-Platinum-Diamond in Airlines, etc.
Values and satisfaction relate somehow, but value is the most important!!!
TRUE
The best-known third-party product endorsement
The Academy of Motion Pictures Oscar Award
The case of _____________ started tamperproof packaging for over-the-counter medications and now practically all food products
Tylenol medicine
an example of taking responsibility
Tylenol's pain medicine's case in the fall of 1982: over half a dozen consumer deaths in the Chicago area were attributed to cyanide traces in Tylenol capsules. Tylenol removed all the capsule from market and investigated how this happened and ensured that it would not happen again
deceptive advertising is covered under
Wheeler-Lea Act (1938)
signal
a characteristic that allows a consumer to diagnose something distinction about an alternative
example of attribute correlation
a consumer waits at the bank for so long -> he/she thinks that the bank offers poor service, which could be a faulty assumption; because it might mean consumers get individualized attention and really good service
a loyalty card/ program
a device that keeps track of the amount of purchasing a consumer has had with a given marketer once some level is reached
bulimia
a disorder that includes binge-eating episodes followed by self-induced vomiting
Example of innuendo effect
a doctor promotes himself as highly competent but doesn't include information about his personality may be perceived by consumers as being relatively uncaring
hope
a fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a potentially positive outcome
benefit
a perceived favorable result that is derived from the presence of a particular feature
positive disconfirmation
a perceived state wherein performance perceptions exceed expectations
negative disconfirmation
a perceived state wherein performance perceptions fall short of expectations
neutral disconfirmation
a perceived state wherein performance perceptions fit exactly with expectations
Words such as ____________ are used to describe consumer misbehavior
aberrant, illicit, dysfunctional, and deviant
dysfunctional fan behavior
abnormal functioning relating to sporting event consumption (eg. Vietnamese get angry when Vietnamese soccer team lost)
superordinate categories
abstract in nature and represent the highest level of categorization (eg. beverages)
planned obsolescence
act of planning the premature discontinuance of product models that perform adequately (eg. video game manufacturers are criticized for releasing new and seemingly "improved" gaming consoles even when older models haven't been on the market very long)
ethical duties
acting within expected ethical boundaries
complaining behavior
action that occurs when a consumer actively seeks out someone (supervisor, service provider, etc.) with whom to share an opinion regarding a negative consumption event
Positive word-of-mouth
action that occurs when consumers spread information from one to another about positive consumption experiences with companies
negative public publicity
action that occurs when negative WOM spreads on a relatively large scale, possibly even involving media coverage
Negative word-of-mouth
action that takes place when consumers pass on negative information about a company from one to another
consumerism
activities of various groups to voice concern for, and to protect, basic consumer rights
kleptomania
addiction to shoplifting -> problem behavior
Compensatory rules
allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute
existing schemata
allows consumers to provide meaning to objects; within this, both product categories and brand categories are found
attribute - based evaluation
alternatives are evaluated across a set of attributes that are considered relevant to the purchase situation
procedural justice
an equity-based cognition representing the extent that consumers believe the processes involved in processing a transaction, performing a service, or handling any complaint are fair
an important thing about unfulfilled aspirations
anomie
consumer refuse
any packaging that is no longer necessary for consumption to take place, or in some cases, the actual good that is nolonger providing value to the consumer
attribute-specific
assess a consumer's satisfaction with various components, or attributes, of a product, service, etc.: How satisfied are you with the following attribute of your stove?
culture jamming
attempts to disrupt marketing campaigns by altering messages in some meaningful way (eg. billboards are often altered in a way that delivers messages that conflict with those originally intended)
evaluative criteria
attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem
Perceived quality
based on consumer perceptions (eg. customers may still feel the phone is not as good)
consumer misbehavior
behaviors that are in some way unethical and that potentially harm the self or others
moral beliefs
beliefs about the perceived ethicality or morality of behaviors
relativism
beliefs about the social acceptability of an act in a culture (Is this action culturally acceptable?)
contractualism
beliefs about the violation of written or unwritten laws (Does this action break a law?)
moral equity
beliefs regarding an act's fairness or justness (Is it fair for me to illegally download music?)
anomie
both a response to rapid cultural change and an explanation for deviance - an explanation for deviance: consider goals that are generally accepted in a culture (US emphasis on attaining material possession and get ahead -> some people cannot reach that -> do wrong things to catch up)
Expert opinions
brand experts; lapidary guide consumers in the types of evaluative criteria to consider buying a diamond ring; or market mavens
top-line performance
business term referring to sales growth (sales being at the top of an earnings statement)
Product knowledge
buying shoes requires knowledge about shoes: athletic - what sports, etc.
examples of signal
color an texture of fruits and vegetables (eg. green banana will taste bitter)
price gouging mostly aims at
commodity goods (gasoline)
disconfirmation
compares the difference between expectations and performance perceptions. This measure can be taken in a direct, subjective fashion: Compared to my expectations, this product performs...
2 major rules that consumers use when selecting products
compensatory rules and noncompensatory rules
compulsive consumption consists of
compulsive buying and compulsive shopping
retaliatory revenge
consumer becomes violent with employees and/or tries to vandalize a business in response to an unsatisfactory experience
consumer problem behavior
consumer behavior that is deemed to be unacceptable but that is seemingly beyond the control of the consumer (eg. consumers compulsively shop; consumers addicted to drugs or alcohol)
customer commitment vs consumer inertia
consumer inertia: I live next to Starbucks so I buy Starbucks everyday customer commitment: I drink Starbucks because I love it
self-perception theory
consumers are motivated to act in accordance with their attitudes and behaviors
retail borrowing
consumers buy stuffs, use them, and refund
equity theory
consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange
affect - based evaluation
consumers evaluate products based on the overall feeling that is evoked by the alternative
packrats
consumers possessing high levels of a lifestyle trait leading to a strong tendency toward retaining consumption - related possessions
foot in the door is based on self-perception theory, which means that
consumers use perceptions of their own actions when forming attitudes
Studies show that lexicographic rules is very common because
consumers usually know what features are most important, and they simply select the product that offers the best performance on that feature
pathological socialization
consumers view misbehavior as a way of getting revenge against companies
antiloyal consumers
consumers who will do everything possible to avoid doing business with a particular marketer
teleological evaluations
consumers' assessment of the goodness or badness of the consequences of actions (How much good will result from this action?)
binge drinking
consumption of five or more drinks in a single drinking session for men and four or more drnkes for women
binge eating
consumption of large amounts of food while feeling a general loss of control over food intake
switching costs
costs associated with changing from one choice (brand/retailer/ service provider) to another
provocative situational factors
crowding, wait times, excessive heat, and noise can contribute to consumer misbehavior
compensatory damages
damages that are intended to cover costs incurred by a consumer due to an injury
punitive damages
damages that are sought to punish a company for behavior associated with an injury
relationship quality
degree of connectedness between a consumer and a retailer, including CS/D, complaining behavior, switching, customer share, and commitment
left-skewed
distribution of responses consistent with most respondents choosing responses so the distribution is clustered toward the positive end of the scale
relational switching costs
emotional and psychological consequences of changing from one brand/retailer/service provider to another (eg. change of hairstylist?)
hedonic criteria include
emotional, symbolic, and subjective attributes or benefits that are associated with an alternative (eg. prestige of an BMW)
National Advertising Review Council (NARC)
ensure that advertisements are truthful
I'm working for you relies on
equity theory, because the consumer thinks that the salesperson is working hard, therefore potentially purchase likelihood
deontological evaluations
evaluations regarding the inherent rightness or wrongness of specific actions (focuses on how people accomplish their goals)
critical incident
exchange between consumers and businesses that the consumer views as unusually negative with implications for the relationship
ideal expectations
expectations about what a consumer really wants to happen during an experience if everything were ideal
normative expectations
expectations of what a consumer thinks should happen given past experiences with a product or service
equitable expectations
expectations that a consumer forms regaring what she thinks should or ought to happen given the level of work that she has put into the experience
predictive expectations
expectations that form about what a consumer thinks will actually occur during an experience
attribution theory
explaining on why a certain event has occurred - proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments
products liability
extent to which businesses are held responsible for product-related injuries
Compulsive shopping is present in women only
false
Marketing cannot produce pollution
false
Satisfaction close relates to quality, loyalty, and cognitive disonance
false
Social influences
friends, family members, and reference groups also have an impact. extremely useful for automobiles or clothing
utilitarian criteria include
functional or economic aspects associated with an alternative (eg. safety of a BMW)
altruistic duties
giving back to communities through philanthropic activities
durable goods
goods that are typically expensive and usually consumed over a long period of time (eg. dishwashers, furniture, automobiles, and most electronic)
differential association
groups of people replace one set of acceptable norms with another set that others view as unacceptable (eg. prospective gang members may assault innocent bystanders to gain acceptance into their groups)
The concept of value extracted from experience matches with
hedonic value
interactional fairness
how fairly a consumer believes he is treated when dealing with service personnel in resolving some issue
consumer fraud might include
identity theft, fraudulently obtain credit cards, open bank accounts, and turn in insurance claims, etc.
puffery vs. deceptive advertising
in puffery, there is no overt attempt to deceive a targeted consumer
reciprocity norm
individuals are motivated to give back to those who have given them something
even a penny will help
ingratiation technique in which a marketing message is sent that suggests that even the smallest donation, such as a penny or a dollar, will help a cause
door in the face
ingratiation technique used in personal selling in which a salesperson begins with a major request and then follows with a series of smaller request (eg. Can I get you to buy this car today?)
foot in the door
ingratiation technique used in personal selling in which a salesperson begins with a small request and slowly leads up to one major request (eg. May I have a few minutes of your time? May I have your order? etc.)
consumer bill of rights
introduced by President JFK in 1962, list of rights that include the right to safety, the right to be informed, the right to redress and to be heard, and the right to choice
Locus
judgments of who is responsible for an event
strict liability
legal action against a firm whereby a consumer demonstrates in court than an injury occurred and that the product associated with the injury was faulty in some way
desire
level of a particular benefit that will lead to a valued end state
Firms face higher liability costs in the US than in most other countries, one of which is because
liability lawsuits that actually reach a courtroom often involve jury trials
key elements of the attribution theory approach
locus, control, and stability
procedural switching costs
lost time and extended effort spent in learning ways of using some product offering
Marketing communications
marketers assist consumers in deciding what features to consider when buying a particular product
societal marketing concept
marketing concept that states that marketers should consider not only the wants and needs of consumers but aso the needs of society
judgements
mental assessments of the presence of attributes and the benefits associated with those attributes; affected by the amount of knowledge or experience a consumer has with a particular object
product categories
mental representations of stored knowledge about groups of products
deceptive advertising
message that omits information that is important in influencing a consumer's buying behavior and is likely to mislead consumers acting reasonably.
consumer dissatisfaction
mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome
Consumer satisfaction
mild, positive, emotion resulting from a favorable appraisal of a consumption outcome
normal consumers like shop-lifting
misbehavior
opportunism
misbehavior can be the outcome of a deliberate decision - making process that weighs the risks and rewards of the behavior (eg. consumers might feel that the rewards associated with stealing outweigh the risks of getting caught)
subordinate categories
more detailed. Consumers examine the knowledge that she has stored about various options.
lexicographic rule
noncompensatory decision rule where the option selected is thought to perform best on the most important attribute (eg. the product that is thought to perform best on the most important attribute will be chosen)
disjunctive rule
noncompensatory decision rule where the option selected surpasses a relatively high curoff point on any attribute (eg. consumers want a car that excels at any of the features - mental cutoff: 10) -> consider performance ratings, not importance of attributes)
EBA rule
noncompensatory rules where the consumer begins evaluating options by first looking at the most important attribute and eliminating any option that does not meet a minimum cutoff point for that attribute, and where subsequent evaluations proceed in order of importance until only one option remains (eg. minimum cutoff :5 and consumer begins with the most important feature: gas mileage; any product that not surpass this will fail. Next the consumer looks at next important: price, etc.)
Services and experiences are usually classified as
nondurable
underlying attributes
not readily apparent and can only be learned through experience with the product (eg. product quality)
competitive intensity
number of firms competing for business within a specific category
Colors signal
nutritional content (eg. red fruits and vegetables are thought to reduce the risk of some cancers; blue fruits: blue berries, have been shown to reduce the risk of stroke and heart disease)
third - party endorsement
one form of publicity in which an ostensibly objective outsider (neither the customer nor the business) provides publicly available purchase recommendations or evaluations
Online sources
online websites
corporate social responsibility (CSR)
organization's activities and status related to its societal obligations
service quality
overall goodness or badness of a service experience, which is often measured by SERVQUAL
attribute correlation
perceived relationship between attributes of products
feature
performance characteristics of an object
morals
personal standards and beliefs used to guide individual actions
addictive consumption
physiological dependency on the consumption of a consumer product
customer share
portion of resources allocated to one brand from among the set of competing brands
puffery
practice of making exaggerated claims about a product and its superiority
sales orientation
practice of using sales techniques that are aimed at satisfying the salesperson's own needs and motives for short-term sales success
customer orientation
practice of using sales techniques that focus on customer needs
expectations
preconsumption beliefs of what will occur during an exchange and consumption of a product
equitable expectations can be referred to _____ in regulatory focus
prevention-based expectations
consumption
process that converts time, goods, ideas, or services into value
meaning transference
process through which cultural meaning is transferred to a product and onto the consumer
important issues to consider when discussing marketing ethics
product harmfulness and consumer vulnerability
salutary products
products that are good for both consumers and society in the long run (air bags). -> offer high utilitarian values, but no hedonic values
desirable products
products that deliver high utilitarian and hedonic value and that benefit both consumers and society in the long run (pleasant-tasting weight-loss products)
deficient products
products that have little to no potential to create value of any type (faulty appliances)
pleasing products
products that provide hedonic value to consumers but may be harmful in the long run (energy drinking)
ideal expectations can be referred to _________ in regulatory focus theory
promotion-based expectations
marketing concept
proposes that all the functions of the organization should work together in satisfying its customers' wants and needs
Marketing myopia
published early in the 1960s by Theodore Levitt
What does Walmart do to raise customer satisfaction?
reduced crowding of aisles and floor space, increased availability of higher quality brands, and an increased emphasis on sustainability
distributive fairness
refers to the way a consumer judges the outcomes of an exchange (eg. Did I get what I paid for?)
compulsive consumption
repetitive, excessive, and purposeful consumer behaviors that are performed as a response to tension, anxiety, or obtrusive thoughts
Just Noticeable Difference
represents how much stronger one stimulus must be compared to another if someone is to notice that the two are not the same
expectancy/ disconfirmation theory
satisfaction formation theory that proposes that consumers use expectations as a benchmark aginst which performance perceptions are judged
difference between dissonance and satisfaction
satisfaction is generally felt after a consumption experience, but dissonance may be experienced even before consumption begins (eg consumer may think immediately after the purchase: I should have bought the other one)
customer commitment
sense of attachment, dedication, and identification
customer share can also be referred to as
share of wallet
consumer inertia
situation in which a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change
negligence
situation whereby an injured consumer attempts to show that a firm could foresee a potential injury might occur and then decided not to act on that knowledgge
What determines the type of evaluative criteria that consumers use?
situational influences, product knowledge, social influences, expert opinions, online sources, and marketing communications
Hyperchoice
situations where too many choices are available
marketing ethics
societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies
thrill seeking
some consumers get thrilled from defacing the property of companies
lack of moral constraints
some people that sell illegal drugs don't see a problem with the behavior
ethics
standards or moral codes of conduct to which a person, group, or organization adheres
anorexia
starving of one's body in the pursuit of thinness
strategic initiatives
strategically engaging in socially responsible activities in order to increase the value of the firm
Noncompensatory rules
strict guidelines are set prior to selection and any option that does not meet the specifications is eliminated from consideration
Brand name association
studies have found that brand names are even stronger signals of quality than is PRICE (eg. Energizer batteries, or Gillette razors, etc)
evaluations are generally more relevant and meaningful at
subordinate levels
I'm working for you
technique used by salespeople to create the perception that they are working as hard as possible to close a sale when they really are not doing so
ingratiation
techniques such as foot-in-the-door, the door-in-the-face, the even-a-penny-will-help and the "I'm working for you"
For ____________ evaluations, consumers consider the perceived consequnces of the actions for various stakeholders, the probability that the consequence will occur, the desirability of the consequences for the stakeholders, and the importance of the stakeholder groups to the consumer
teleological
confirmatory bias
tendency for expectations to guide performance perceptions
a famous consumer incident regarding strict liability and negligence is
the McDonald's case (a customer spill hot coffee and burnt her leg -> she sued McDonald. Under strict liability, the consumer needs to demonstrate that an injury occurred and that product was faulty, but under negligence, the consumer can say that McDonald this "could happen" but do nothing to prevent the mishap -> the woman ended up winning the lawsuit)
price gouging
the act of charging a higher than reasonable price for a god, following some kind of natural disaster or event
Objective quality
the actual quality of a product that can be assessed through industry specification or expert rating (eg. cell phone provider may advertise its service has been proven tho have the fewest dropped calls in the industry)
cyber-bullying
the attack of young consumers on the internet
Fishbein model
the attitude-toward-the-object model represents a compensatory approach
authenticity
the degree to which an object, person, or experience seems real, genuine, unique, and part of history or tradition
determinant criteria
the evaluative criteria that are related to the actual choice that is made
control
the extent to which an outcome was controllable or not
bounded rationality
the idea that perfectly rational decisions are not always feasible due to constraints found in information processing
stability
the likelihood that an event will occur again in the future
consumption frequency
the number of times a product or service is consumed in a given time period
Noncompensatory rules are often used in low-involvement situations because
these rules allow consumers to simplify their thought processes
underlying attributes are usually referred to as experience qualities because
they are often perceived only during consumption
perceptual attributes are usually referred to as search - qualities because
they can easily be evaluated prior to actual purchase
