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CONSUMER BEHAVIOR FINAL EXAM
Attitude - A lasting, general evaluation of people (including oneself), objects, advertisements, or issues; tends to endure over time, applies more than a momentary event Attitude object (Ao) - Anything toward which one has an attitude Functional Theory of Attitudes - Developed by psychologist Daniel Katz to explain how attitudes facilitate social behavior; explains that attitudes exist because they serve some function for the person and shows the different attitude functions Utilitarian Function - Attitudes that relate to the basic principles of reward and punishment; we develop some attitudes toward products simply because they provide pleasure or pain; ex: ads that stress straightforward product benefits such as drinking Diet Coke "just for the taste of it" Value-Expressive Function - Attitudes that relate to the consumer's self-concept or central values; a person forms a product attitude in this case because of what the product says about him or her as a person; relevant to the psychographic analyses that consider how consumers cultivate a cluster of activities, interests, and opinions to express a particular social identity Ego-Defensive Function - Attitudes we form to protect ourself from external threats or internal feelings; ex: housewives resisting the use of instant coffee because it threatens their conception of themselves as capable homemakers, products that promise to help a man project a macho image appeal to his insecurities about his masculinity, or deodorant ads that stress the dire, embarrassing consequences when you're caught with underarm odor in public Knowledge Function - Attitudes that relate to the need of order, structure, or meaning; applies when a person is in an ambiguous situation or when he or she confronts a new product; ex: "its OK to wear casual pants to work, but only on Friday", or "Bayer wants you to know about pain relievers" ABC Model of Attributes - Includes the three components of an attitude: affect, behaviors, and cognition Affect - Describes how a consumer feels about an attitude object Behavior - Refers to the actions he or she takes toward the object or in some cases at least his or her intentions to take action about it (however an intention does not always result in an actual behavior)
Cognition - What he or she believes to be true about the attitude object; emphasizes the interrelationships among knowing, feelings, and doing Hierarchy of Effects - A concept to explain the relative impact of the three components of an attitude; each hierarchy specifies that a fixed sequence of steps occur en route to an attitude High-Involvement Hierarchy - Assumes that a person approaches a product decision as a problem-solving process; assumes that a consumer is highly involved when he or she makes a purchase decision and seeks out a lot of info, carefully weighing the alternatives to come to a thoughtful decision Low-Involvement Hierarchy - Assumes that the consumer initially doesn't have a strong preference for one brand over another; he/she acts on the basis of limited knowledge and forms an evaluation only after he/she has bought the product; attitude is likely to come about through behavioral learning, as good or bad experiences reinforce his/her initial choice Experimental Hierarchy - We act on the basis of our emotional reactions; highlights the idea that intangible product attributes, such as package design, advertising, brand names, and the nature of the setting in which the experience occurs, can help shape our attitudes toward a brand; we may base these reactions on hedonic motivations; emotions the communicator expresses has an impact as well (emotional contagion) Cognitive-affective model - Proposes that an emotional reaction is just the last step in a series of cognitive processes that follows sensory recognition of a stimulus and retrieval of information from memory that helps to categorize it Independence hypothesis - Argues that affect and cognition are separate systems so that it's not always necessary to have a cognition to elicit an emotional response; focuses more on the impact of aesthetic experiences as opposed to the consumption of products that provide primarily functional benefits Compliance - The lowest level of involvement where we form an attitude because it helps us to gain rewards or avoid punishment; superficial and is likely to change when other uno longer monitor our behavior or when another option becomes available Identification - Middle level of involvement when we form an attitude to conform to another person's or groups expectations; advertising that depicts the dire social consequences when we choose some products over others relies on the tendency of consumers to imitate the behavior of desirable models Internalization - Highest level of involvement where deep-seated attitudes becomes part of our value system; difficult to change because they are so important to us
Theory of reasoned action - Contains several important additions to the Fishbein Model of predicting behavior; focuses on behavioral intentions, acknowledges the power of other people in purchasing decisions, and measures the attitude toward the act of buying rather than only the attitude toward the product itself Communications model - Specifies the elements they need to control to communicate with their customers; source, message, medium, receiver(s) and feedback Source effects - The same words by different people can have very different meanings; credibility and attractiveness are two particularly important source characteristics Source credibility - Refers to a communicator's expertise, objectivity, or trustworthiness Sleeper effect - In some instances the differences in attitude change between positive sources and less-positive sources become erased over time; people appeal to "forget" about the negative source and change their attitudes anyway Native advertising - Digital messages designed to blend into the editorial content of the publications in which they appear; may look a lot like a regular article but they often link to a sponsors content Match-up Hypothesis - A celebrity's image and that of product are similar Source attractiveness - Refers to the social value recipients attribute to a communicator; this value relates to a person's physical appearance, personality, social status, or similarity to the receiver; shared endorsements and use of halo effect Two-factor theory - Explains the fine line between familiarity and boredom; it proposes that two separate psychological processes operate when we repeatedly show an ad to a viewer; implies that advertisers can overcome this problem by limiting the amount of exposure per repetition Refutation arguments - First raise a negative issue and then dismiss it can be quite effective; increases source credibility because it reduces reporting bias; most effective when the audience is well educated Comparative advertising - Refers to a message that compares two or more recognizable brands and weighs them in terms of one or more specific attributes; may stir up source derogation (consumer may doubt the credibility of a biased presentation) Martyrdom Effect - People tend to donate more money when they have to suffer a bit for the cause; Reality Engineering - Occurs when marketers appropriate elements of popular culture and use them as promotional vehicles; jeans with holes in them or washed out
Guerrilla marketing - Promotional strategies that use unconventional means and venues to encourage word of mouth about products; the marketer "ambushes" the unsuspecting recipient because the message pops up in a place where he wasn't expecting to see it Product placement - The insertion of real products in fictional movies, TV shows, books, and plays; creation of advergaming and plinking Emotional versus Rational appeals - Many companies use an emotional strategy when consumers do not find differences among brands; especially brands in well-established, mature categories(e.g., cars and greeting cards); recall of ad content tends to be better for "thinking"ads, although conventional ad effectiveness measures may not be entirely valid to assess emotional ads Sex appeals - These appeals vary by country; there are gender differences in reactions due to females being more liberal toward sex; erotic ads draw attention, but strong sexual imagery may make consumers less likely to buy a product or even process or recall the ad's content Humor appeals - These ads do get attention but may be a source of distraction; inhibits counter-arguing, thus increasing message acceptance; humor works when it clearly identifies the brand and doesn't swamp the message, is appropriate, and doesn't make fun of a potential customer; different cultures have different senses of humor Fear appeals - Emphasize the negative consequences that can occur unless the consumer changes a behavior or an attitude; common in social marketing contexts in which organizations encourage people to convert to healthier lifestyles; successful when the threat is moderate, the solution is presented, and the source is highly credible Elaboration Likelihood Model (ELM) - Assumes that, under conditions of high involvement, we take the central route to persuasion; under conditions of low involvement, we take a peripheral route instead Central Route to Persuasion - Requires effort and thought, predicts behavior, forms an opinion based on central cues: important, diagnostic information such as facts, evidence, examples, and reasoning Peripheral Route to Persuasion - Little effort, temporary and doesn't predict behavior; forms an opinion based on peripheral cues: Easy-to-process information such as source attractiveness, mood/positive feelings, message length/number of features/arguments (quantity over quality) Purchase momentum - Occurs when our initial impulse purchases actually increase the likelihood that we will buy even more (instead of less as we satisfy our needs)
Evaluate Alternatives (Step 3) - Consists of alternatives a consumer knows about (evoked set) and the ones he/she seriously considers (consideration set) Product Choice (Step 4) - Range from simple and quick strategies to complicated processes that require a lot of attention and cognitive processing; cause of feature creep causing consumers to give up before figuring out how to use a product Post purchase Evaluation (Step 5) - Occurs when we experience the product or service we selected and decide whether it meets or maybe even exceeds our expectations Neuromarketing - Uses functional magnetic resonance imaging (fMRI) which is a brain- scanning device that tracks blood flow as we perform mental tasks to take an up-close look at how our brains respond to marketing messages and product design features Cybermediary - Describes a Web site or app that helps to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently Intelligent agents - Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases Search Engine Optimization - The procedures companies use to design the content of Web sites and posts to maximize the likelihood that their content will show up when someone searches for a relevant term Long tail - The idea that we no longer need to rely solely on big hits to find profits; companies can also make money if they sell small amounts of items that only a few people want -- if they sell enough different items Hybrid products - Products that feature characteristics from two distinct domains Knowledge structure - A set of beliefs and the way we organize these beliefs in our minds; one of three levels: superordinate level, basic level, and subordinate level Category exemplars - Characteristics that tend to exert a disproportionate influence on how people think of the category in general; some brands that we strongly associate with a category define the criteria we sue to evaluate all category members Evaluative criteria - The dimensions we use to judge the merits of competing options Determinant attributes - The features we actually use to differentiate among our choices; criteria on which products carry more weight; marketers educate consumers about which criteria they should use
Compensatory rule - Allows a product to make up for its shortcomings on the one dimension by excelling on another; cost/benefit analysis two types include simple additive rule and weighted additive rule Simple additive rule - Leads to the option that has the largest number of positive attributes; used when its difficult to get more information; ex: pro/con list Weighted additive rule - Allows the consumer to take into account the relative importance of the attributes by weighting each one; strongly resembled the multi attribute attitude model Non compensatory rule - Making habitual or emotional decisions; if an option doesn't suit us on one dimension, we just reject it out of hand and move on to something else rather than think about how it might meet our needs in other ways Lexicographic rule - Says "select the brain that is the best on the most important attribute"; if a decision maker feels that two or more brans are equally good on that attribute, he or she then compares them on the second-most important attribute Elimination-by-aspects rule - Also evaluates brands on the most important attribute, but he/she imposes specific cut-offs Conjunctive rule - Entails processing the brand; the decision maker establishes cut-offs for each attribute and he chooses a brand if it meets all the cut-offs and rejects a brand that fails to meet any one cut-off Habitual decision making - Describes the choices we make with little or no conscious effort; routine purchase decisions that may be quite efficient in some cases Inertia - It involves less effort to throw a familiar package into the cart Brand loyalty - A pattern of repeat purchasing behavior that involves a conscious decision to continue buying the same brand Framing - How we pose the question to people or what exactly we ask them to do; people hate losing things more than they like getting things (loss aversion) Prospect theory - Where researchers analyze how the value of a decision depends on gains or losses; identify principles of mental accounts that relate to the way we frame the question as well as external issues that shouldn't influence our choices, but do anyway Sunk-cost fallacy - If we've paid for something, we're more reluctant to waste it
Buyclass theory of purchasing - Explains that organizational buying decisions depend on:
- Level of information required
- Seriousness of the decision
- Familiarity with purchase Straight rebuy - Habitual decision or automatic choice; most organizations maintain an approved vendor list, and as long as the experience with a supplier is satisfactory, there is little or no ongoing information search or evaluation Modified rebuy - Involves limited decision making; occurs when an organization wants to repurchase a product or service but also wants to make some minor modifications; involves a limited search for info among a few vendors New task - Involves extensive problem solving; used when the company hasn't made a similar decision already and there's serious risk with the purchase; the organization designates a buying center with assorted specialists to evaluate the purchase Loss aversion - People hate losing things more than they like getting things; how a message is framed affect peoples perception of gains/losses; making choices for others reduces this because participants become more risk-seeking Prediction market - One of the hottest trends in organizational decision making techniques; asserts that groups of people with knowledge about an industry are better predictors of the futures than are any of them as individuals Crowdsourcing - Describes the growing practice of soliciting ideas for new products and even advertising campaigns from a user community; under this model, companies no longer market to customers, they market WITH them Wisdom of crowds - A perspective that argues that under the right circumstances, groups are smarter than the smartest people in them; implies that large numbers of consumers can predict successful products Consensual purchase decision - Members agree on the desires purchase, differing only in terms of how it will be achieved Accommodative purchase decision - Group members have different preferences or priorities and can't agree on a purchase that satisfies everyone's needs; use of bargaining, coercion, and compromise to achieve agreement on what to buy or who gets to use it Interpersonal need - A persons level of investment in the group; a teenager may care more about what her family buys for the house than a college student who lives in a dorm
Product involvement and utility - The degree to which a person will use the product to satisfy a need; a mother who is an avid coffee drinker will be more interested in a coffee maker than her teenage son Responsibility - For procurement, maintenance, payment, and so on; people are more likely to have disagreements about a decision if it entails a long-term consequences and commitments; ex: buying a dog and who will feed/walk it Power - The degree to which one family member exerts influence over the others; husband vs. wife or oldest child vs. youngest; role of financial family officer Synoptic ideal - Spouses take a common view and act as joint decision makers; however, couples seem to reach decisions rather than make them (muddling through); the use of heuristics help simplify decision making Autonomic decision - When one family member chooses a product; men selecting the car while women select the home decor Syncretic decisions - Decision that involve both partners; family vacations, homes, appliances, etc.; increases with education as well as being more common with newly weds Family identity - Qualities and attributes that make it a particular family and differentiate it from other families; family rituals, narratives, and everyday interactions that help maintain their family character, and clarify members' relationships to one another Juggling Lifestyle - A frenzied, guilt-ridden compromise between conflicting cultural ideals of motherhood and professionalism Kin-network system - Rituals intended to maintain ties among family members, both immediate and extended; women are more likely to visit relatives, stay in touch with family members, send greeting cards, etc. Dadvertising - Advertising depicting fathers who are involved in activities with children Consumption situation - Includes a buyer, seller, and a product or service -- but also many other factors, such as the reason we want to make the purchase an dhow the physical environment makes us feel Situational self-image - The role he or she plays at any one time; helps determine what he or she wants to buy or consume Timestyle - Consumers try to maximize satisfaction by dividing time among tasks; determined by an individuals priorities
Information power - If a person knows something others would like to know; able to influence consumer opinion by virtue of their access to the knowledge that provides some kind of competitive advantage Legitimate power - Power by virtue of social agreements, such as the authority we give to police officers, soldiers, and professors; uniforms Expert power - Derives from the knowledge one may possess about some type of content; professional critics' reviews of restaurants, books, movies, cars, etc. Reward power - A person or group with the means to provide positive reinforcement; can be tangible or intangible Coercive power - When we influence someone because of social or physical intimidation; rarely used by marketers, but is sometimes used in fear appeals Reference group - An actual or imaginary individual or group that significantly influences an individual's evaluations, aspirations, or behavior Membership reference group - Consists of people we actually know Aspirational reference group - People we do not know, but admire anyway; athletes, performers, celebrities, etc. Avoidance groups - Negative reference groups; those who you don't want to be like; consumers do the opposite if they want to distance themselves from these groups Conformity - A change in beliefs or actions as a reaction to real or imagined group pressure; gift giving, sex roles, personal hygiene, as well; due to cultural pressures, fear of deviance, commitment, etc. Red Sneakers Effect - When people approve of others who exhibit nonconforming behavior; some assume someone who makes unconventional choices to be more powerful or competent Brand communities - A group of consumers who share a set of social relationships based on usage of or interest in a product; shared consciousness, rituals/traditions, and a sense of moral responsibility; creation of brandfests (Harley) Word-of-mouth communication - Product information that individuals transmit to other individuals; more reliable and trustworthy and comes with social pressure to conform to these recommendations; powerful when the consumer is relatively unfamiliar with the product category
Negative word of mouth - Weighed more heavily than positive comments about a product or service; reduces the credibility of a firm's advertising and influences a consumers' attitudes toward a product as well as their intention to buy it; can be a result of serial reproduction Opinion leader - Frequently able to influence others' attitudes and behaviors; knowledgable about products and give advice that people take seriously; valuable information sources because they may be experts, provide unbiased evaluation, socially active, have similarities (homophily), and are among the first to buy the product or service Generalized opinion leader - Whose recommendations we seek for all types of purchases; rare Monomorphic opinion leader - An expert in a limited field Polymorphic opinion leader - An expert in several fields; concentrate on one brand domain, such as electronics or fashion Market maven - One who accumulates knowledge and is actively involved in collecting and transmitting marketplace information for all types; they are aware of whats happening in the marketplace and have an overall knowledge of how and where to get products Surrogate consumer - A marketing intermediary hired to provide input into purchase decisions; a third party we retain to input our purchase decisions; interior decorators, consultants, professional shoppers, etc. Self-designating method - The most commonly used technique to identify opinion leaders is simply to ask individual consumers whether they consider themselves to be opinion leaders; use of opinion leader scale; view with skepticism Sociometric methods - Trace communication patterns among members of a group; allow researchers to systematically map out the interactions among group members; most precise method of identifying product information sources, but is very difficult and expensive to implement Tie strength - The nature of the bond between Strength of weak ties - The use of weak ties as a bridging function that allows a consumer access between subgroups Social network - A set of socially relevant nodes (members of the network who are connected to each other) connected by one or more relation; flows occur between the nodes (sharing of posts, updates)
Luxury is functional - These consumers buy things that will last and with enduring value Luxury is a reward - These consumers buy goods that tell them "I've made it" Luxury is indulgence - An emotional approach that illustrates their individuality; extremely lavish and self-indulgent Affluenza - Many well-off consumers seem to be stressed or unhappy despite or even because of their wealth Cosmopolitanism - Someone who tries to be open to the world and who strives for diverse experiences; used to be linked to the wealthy, but now isn't necessary; more likely to engage in social media activities Taste culture - Describes consumers in terms of their aesthetic and intellectual preferences; helps illuminate the important, yet sometimes subtle, distinctions in consumption choices among the social classes Occupational prestige - The single best indicator of social class; we define people to a great extent by what they do for a living; tend to be stable over time and similar across cultures; linked to use of leisure time, allocation of family resources, etc. Status symbols - Motivation to buy for signaling to others, not enjoyment of the product; let others know that you "made it"; keeping up with the Jones's Mass class - The hundred of millions of global consumers who now enjoy a level of purchasing power thats sufficient to let them afford high-quality products-- expect for big ticket items such as college, housing, or luxury cars Social capital - Resources that accrue by virtue of social connections and relationships; value depends on the size of the network of connections and require much time for maintenance Cultural capital - A set of distinctive and socially rare tastes and practices -- knowledge of refined behavior that admits a person into the realm of the upper class; embodied (practices), objectified (objects), and institutionalized (formally certify) Conspicuous consumption - Peoples desire to provide prominent visible evidence of their ability to afford luxury goods Invidious distinction - We buy things to inspire envy in others through our display of wealth or power Subculture - Group whose members share beliefs and common experiences that set them apart from others; consumers' lifestyles, identities, and consumption are effected by group memberships within society; function of age, race/ethnicity, place of residence
High-context culture - Group members tend to be tightly knit, and they infer meanings that go beyond the spoken word; symbols and gestures are used Low-context culture - Group members take words literally Acculturation - The process of movement and adaptation to one country's cultural environment by a person from another country; issue for marketers; use of acculturation agents De-ethnicization - Occurs when a product we link to a specific ethnic group detaches itself from its roots and appeals to other groups as well Microcultures - Freely identify with an activity, art form, lifestyle; smaller than subcultures and have a unique set of norms, vocabulary, and product insignias Fertility rate - The number of births per year 1000 women of childbearing age; marketers keep a close on on this to gauge how the pattern of births will affect demand for products in the future Multigenerational family living - Defines as a household that includes two or more adult generations, or one that includes grandparents and grandchildren Boomerand kids - Adult children who return to live with their parents; spend less on household items and more on entertainment Sandwich generation - Adults who care for their parents as well as their own children Age cohort - Consists of people of similar ages who have similar experiences; the Interbellum generation, Silent generation, War baby generation, Baby boom generation, generations X,Y and Z Family life cycle - Models that take into account the following variables in describing longitudinal changes in priorities and demand for product categories: age, marital status, presence/absense of children in home, and ages of children; allow use to identify categories of family-situation types Autonomy versus belonging - Break from family but attach to peers; teens acquire independence Rebellion versus conformity - Teens revel against social standards but want to be accepted by society; in your face product that cultivate a rebellious image Idealism versus pragmatism - Teens view adults as hypocrites and see themselves as sincere
Ritual - A set of multiple, symbolic behaviors that occurs in a fixed sequence and is repeated periodically; trips to starbucks, tailgating, etc. Ritual artifacts - Items we need to perform rituals, such as wedding rice, birthday candles, diplomas, trophies, etc. Ritual script - Followed to identify the artifacts we need, the sequence in which we should use them and who uses them; graduation programs, fraternity manuals and etiquette books Rites of passage - Rituals we perform to mark a change in social status; part of life cycle: birth, puberty, death or socially constructed" dating drivers license, pledging with a sorority/fraternity Three phases of Rites of passage - 1. Separation: individual is detached from his original group
- Liminality: person is literally between statuses
- Aggregation: person re-enter society after rite of passage is complete Grooming rituals - Ceremonies that help us transition from our private self to our public self; inspire confidence before we face the world, and they "cleanse" us of impurities; express two kinds of binary opposition: private/public and work/leisure Holiday rituals - Rituals that often involve consumerism; when we invent new occasions to capitalize our need for cards/ritual artifacts; retailers evaluate minor holidays to major ones to provide merchandising opportunities Gift-giving rituals - A ritual where we procure the perfect object, meticulously remove the price tag, carefully wrap the object, and deliver it to the recipient; form of economic and symbolic exchange; stages of gestation, presentation, and reformulation Gestation stage - The giver procures an item to mark some event; may be structural, or emergent events Presentation stage - The process of the gift exchange; recipient responds to the fits and donor evaluates the responce Reformulation stage - Giver and receiver adjust the bond between them; cause of reciprocity norm which oblige people to return the gesture of a gift with one of equal value Global consumer culture - Unites people around the world by their common devotion to brand-name consumer goods, movie stars, celebrities, and leisure activities Etic perspective - Focuses on commonalities across cultures; approach is objective and analytical and reflects impressions of a culture as outsiders view it
Emic perspective - Stresses variations across cultures; they feel that each culture is unique, with its own value system, conventions, and regulations; argues that each culture has a national character, a distinctive set of behavior and personality characteristics; must be tailored to each specific culture to make products acceptable to local tastes
