Consumer Market Behavior Xiang OKSTATE Midterm

How to capture attention

- vividness - personal relevance - unexpectedness - scarcity - uncertainty

Why study CB?

1. Input to business/marketing strategy 2. Force that shapes society 3. Input to making responsible decisions as a consumer

Basic Consumption Process

1. Need 2. Want 3. Exchange 4. Costs and Benefits 5. Reaction 6. Value

Generally, the capacity limit for workbench memory is between _____ units of information.

5 to 9

Repositioning

A marketing strategy that involves changing the market's perception of a firm's product or brand in comparison to rival firms.

sensory memory

A type of storage that holds sensory information for a few seconds or less.

Affect

Affect refers to the feelings, emotions, and moods that consumers may experience.

Affect and Cognition

As people get older they tend to focus more on affect

self-congruency theory

Consumer behavior can be explained by congruence of a consumer's self-concept with the image of typical users of a focal product

Which two message source characteristics do consumers associate with credibility?

Expertise and trustworthiness

emotion on evaluation

Good mood often results in more favorable evaluation

Product categories with personal relevance for consumers typically have _____ product involvement.

High

instrumental learning

Learning by trial and error

self-actualization

Many middle-class Americans live a comfortable lifestyle and can devote time and effort into satisfying their need for personal fulfillment by doing things such as taking language classes, traveling, or volunteering at a local charity. Which need does this represent?

Motivation

Maslow's hierarchy of needs is a general hierarchy of motivation

retroactive interference

Occurs when later learned material interferes with the recall of information learned earlier.

Affect and memory

People are better able to recall information that has the same affective quality as their mood state.

Which theory hypothesizes that the way in which information is framed differentially affects risk assessments and any associated consumer decisions

Prospect theory

product placement

Putting products into TV shows and movies where they will be seen

lifestyles

Refers to the wats consumers live and spend their time and money

different consumer involvement

Situation involvement, enduring involvement, emotional involvement

behavioral intention model

The concept was proposed by Icek Ajzen to improve on the predictive power of the theory of reasoned action by including perceived behavioral control.

dependent variable

The measurable effect, outcome, or response in which the research is interested.

selective perception

The phenomenon that people often pay the most attention to things they already agree with and interpret them according to their own predispositions.

encoding

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

Agreeableness

The tendency to get along well with other people.

Fishbein's Multi-Attribute Model

Theory of planned behavior

Market Coverage Strategies

Undifferentiated - "one size fits all" Differentiated - offers vary based upon segment Concentrated - niche focus, larger share of smaller segment

Different positioning strategies

Unique selling proposition: emphasize a single, differentiating attribute or benefit

motivations

____ are inner reasons or driving forces behind human actions as consumers are driven to address real needs.

comprehension

_____ refers to the interpretation or understanding that a consumer develops about some attended stimulus in order to assign meaning.

utilitarian motivation

a drive to acquire products that consumers can use to accomplish things

Market Orientation

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept

Target Market

a set of buyers sharing common needs or characteristics that the company decides to serve

brand personality

a set of human characteristics associated with a brand name

relationship marketing

a strategy that focuses on keeping and improving relationships with current customers

excitation transfer theory

a theory suggesting that arousal produced in one situation can persist and intensify emotional reactions occurring in later situations (Roller coaster)

operant conditioning

a type of learning in which behavior is strengthened if followed by a reinforcer or diminished if followed by a punisher

classical conditioning

a type of learning in which one learns to link two or more stimuli and anticipate events

classification of emotion

activated/deactivated pleasant/unpleasnt

Psychoanalytic Approach

addresses internal motivations and feelings shaped by early childhood experiences

ABC model of attitudes

affect, behavior, cognition

self-concept

all our thoughts and feelings about ourselves, in answer to the question, "Who am I?"

Learning Theories

an organized set of principles explaining how individuals acquire, retain, and recall knowledge.

instrumental conditioning

another term for operant conditioning

POP (points of parity)

associations that are not unique to a certain brand like a website that can book your air, hotel, car etc.

involuntary attention

attention that is beyond the conscious control of a consumer

stability

avoids mood swings

emotional intelligence

awareness of the emotions experienced in a given situation and the ability to control reactions to these emotions

hierarchy of effects of ABC

awareness, knowledge, liking, preference,conviction and purchase.

total value concept

business practice wherein companies operate with the understanding that products provide value in multiple ways

Zipping and Zapping

commercial avoidance, flipping through channels during commercials. -Advertising responds to this through product placement.

extended self concept

comprises all the external entities and objects that we consider, with pride, part of ourselves

Correlational causation

correlation does not equal causation

right brain

creative

emotional involvement

deep personal interest that evokes strong feelings associated with some objects or activities.

Bases of Segmentation

demographic geographic psychographic behavioral

utilitarian

derived from a product that helps the consumer with some task. Laundry soap

What is positioning?

designing organizations offerings to occupy a distinct place in the target markets mind

How to overcome forgetting

determine if a behavior is reinforced after a certain number of REPETITIONS or after a certain length of time (SCHEDULE) has passed. - slot machines

Touchpoints

direct contacts between the firm and a customer

hedonic motivation

drive to experience something emotionally gratifying

Id

energy constantly striving to satisfy basic drives

Many patients believe that when they go to the dentist that the experience will be unpleasant. These thoughts that the experience will be unpleasant influence consumers' _____ and can negatively effect their comprehension and behavior regarding this vital service.

expectation

emotional expressiveness

extent to which a consumer shows outward behavioral signs and otherwise reacts obviously to emotional experiences

message congruity

extent to which a message in internally consistent and fits surrounding information

forgetting curve

graphs retention and forgetting over time

perceptual map

how consumers position various brands relative to each other on graphs with different attributes

self-esteem

how you feel about yourself

PRIZM

identifies population characteristics by zip code

projective techniques

if you tell a person the purposed of the study they are likely to respond a certain way

primary data

information collected for the specific purpose at hand

secondary data

information that already exists somewhere, having been collected for another purpose

Message receiver characteristics affecting comprehension

intelligence involvement expectation brain dominance

sensory memory

is very perishable and lasts only a very short period of time

unintentional learning

learning that occurs when behavior is modified through a consumer-stimulus interaction without any effortful allocation of cognitive processing capacity toward that stimulus

A source's effectiveness in gaining comprehension can be impacted by what factors?

likability trustworthiness attractiveness expertise

left brain

logical

sensory marketing

marketing techniques that link distinct sensory experiences such as a unique fragrance with a product or service

proactive interference

occurs when later learned material interferes with the recall of information learned earlier.

enduring involvement

ongoing interest in some product or opportunity

Big 5

openness, conscientiousness, extraversion, agreeableness, stability

Cognitive Appraisal Theory

our emotional experience depends on our interpretation of the situation we are in

Extroversion

outgoing, assertive, active

dual coding

pairing a word with a picture makes it easier to remember

Maslow's Hierarchy of Needs

physiological safety love/belonging esteem self-actualization

intentional learning

placing new information into memory in anticipation of being tested on it later

Conscientiousness

precise, efficient, organized

The value co creation concept

realization that a consumer is necessary and must plat a part in the order to produce value

Psychographics

refers to the way consumer lifestyles are measured

Consumer Value Framework

represents consumer behavior theory illustrating factors that shape consumption-related behaviors and ultimately determine the value associated with consumption

paths

show the association between nodes in the network

POD (points of difference)

something that sets you apart from other brands like Fed-Ex over night delivery

workbench memory

storage area in the memory system where info is stored while it is being processed and encoded for later recall

situational involvement

temporary interest in some imminent purchase situation.

Positioning

the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market

hedonic

the immediate gratification that comes from experiencing some activity

just noticeable difference

the minimal change in a stimulus that can just barely be detected

Weber's Law

the principle that, to be perceived as different, two stimuli must differ by a constant minimum percentage (rather than a constant amount)

emotional contagion

the process by which emotions are transferred from one person to another

Segmentation

the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics

subliminal perception

the processing of information by sensory systems without conscious awareness

long-term memory

the relatively permanent storage of information

Behaviorism

the science of behavior that focuses on observable behavior only

mere exposure effect

the tendency for liking to increase with the frequency of exposure

mood-congruent memory

the tendency to recall experiences that are consistent with one's current good or bad mood

spread activation

the way cognitive activation spreads from one concept to another in long-term memory.

social self-concept

the way others see us

What is attitude?

the way you view situations

four basic functions of attitude

utilitarian, knowledge, value-expressive, and ego-defensive

VALS

values, attitudes, lifestyles

independent variable

variable that is manipulated

Superego

voice of conscience that focuses on how we ought to behave

actual self-concept

who I am now

ideal self-concept

who I would like to be

associative network

A network of mental pathways linking knowledge within memory (also called Semantic Memory Network).

consumer orientation

business philosophy that focuses first on determining unmet consumer wants and needs and then designing products to satisfy those needs

Nodes

concepts/words

openness to experience

creative, curious, cultured

ego

seeks to gratify ID in realistic ways

absolute threshold

the minimum stimulation needed to detect a particular stimulus 50 percent of the time