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69 Cards in this Set

  • Front
  • Back
reference group
group of people that significantly influence one's behavior
personal influence
often exceeds the influence that a company's own promotional efforts might have
informational influence
people accept the opinion of others as a means to gaining information to evaluate products or brands
Word of Mouth WOM influence
referrals from other consumers account for three times as many purchases as did ads
twice as effective as radio
four times as personal selling and
seven times as print ads
can be either positive or negative in its implications for a brand
normative influences
consumers choices are often affected by their beliefs about how important others will react to them as a function of product ownership and or product usage
-are we behaving the way others who are important to us think we should?
-implications: our product choices might be influenced by what others think and the choices of others
normative social influences used to marketers advantage
-unfavorable social consequences that can occur when the product is not used
-favorable social consequences that can occur when the product is used
-integrating the previous two strategies together
value-expressive influence
this occurs when individuals want to be identified with a particular reference group without being a member because they:
-many not have a desire for actual group membership
-may not possess the ability to gain membership into the reference group
Value expressive influence occurs because people wish to:
-identify with members of the reference group who are admired and respected in society
-enhance the image of oneself in the eyes of the others
culture
information processing style that is set into the social structure of a group reflected in many things clothes lang. food customs decision making process
independent cultures
USA UK France
focus on salient features of stimuli on individuating information
interdependent cultures
China Japan
focus on relationship between features rather than the features themselves
values
general beliefs shared by a group what is right vs. wrong
culture influences values
perception
influenced by culture
our culture is the lens through which we interpret objects
consumption norms
culture prescribes consumption norms
defined as-shared beliefs regarding rules of behavior i.e. what behaviors are appropriate or not in a give context
ex: wearing ties to work
standardization
standardize the marketing mix across markets to enhance efficiency
adaptation
adapt the marketing mix to specific markets to enhance effectiveness
how does culture influence consumer behavior
dynamic and subject to change over time
exposure
occurs when the opportunity exists for one or more of the five senses to be activated by the stimulus
-process by which we come into physical contact with things through our sensory modalities
-referred to as OTS or opportunity to see an ad
attaining exposure
media ads
product placement
point of purchase
packaging
point of purchase
simulated store choice-brands on a store shelf
easily seen options more likely to be chosen
not a coincidence that cereal for kids is located on bottom row
measuring exposure
depends upon how many people within target segments are exposed and how often they are exposed
measures of reach and frequency
attention
is the allocation of processing resources to the incoming stimulus
consists of two dimensions
-direction and intensity
attentions limited nature
amt of information we can process at any one time is limited
importance of gaining attention
for marketers if consumers do not attend to the ad it can't possible generate sales
attentions selective nature
processing capacity constraints prevent attending to all incoming stimuli therefore certain stimuli are selected for attention and some stimuli are not attended to
Weber's Law and JND
recognizes that perceptions of change depend on both the amt. of change and the initial starting point prior to change
-relationship b/w a change in teh intensity and a change in sensation
Weber's Law
used to address the question will a change in a marketing stimulus be perceived by consumers?
suggests that the amount of change needed for someone to notice a change depends on the initial starting point
comprehension
how consumers organize and perceive information presented in an ad how consumers interpret the information the meaning consumers develop for products and brands involves:
organization interpretation and perceptions categorization and integration into existing knowledge
figure and ground
a process of determining what aspects of stimuli to focus on
-company's tend to place important stimuli in the foreground and move less important stimuli to the background
closure
use of partial cues to complete a mental image
grouping
proximity similar things go together
birds of a feather
perception
idea of reference points is key
-basic idea more attuned to making comparisons and detecting differences
-reference points become important to understand how stimuli are interpreted and perceived
categorize
categories principle similar objects belong together for ex. a product category
-formed by repeated encounters with ex. of certain class of objects or repeated activation of features over time leads to formation of a category
role of categorization in comprehension
categorization can influence how a product is viewed which in turn influences consumer demand and perceived competitions
use categorization to create a better unique position for brands
two strategies
1.) encourage consumers to form new categories or subcategories
2.) choice for a brand can also be enhanced if consumers place it in a different category
benefits and risks when using a brand extension strategy
benefits-reduce the cost of educating consumers about the new product and creating favorable attitudes
risks- brand dilution and consumer confusion
expectations
a persons prior beliefs about an object
-once formed these expectations can influence a persons interpretation of information presented about the object
acceptance
the degree to which the stimulus influences a persons knowledge and pr attitudes
-persuasion may not occur unless there is acceptance
cognitive responses
the thoughts that occur while processing a stimulus nature of these thoughts will determine the acceptance of the ad claims
counter arguments CA
thoughts that run counter to or oppose the message claims
support arguments SA
thoughts that support or are favorable to the claim
source derogation SD
negative thoughts about the source
source bolstering SB
positive thoughts about the source
index of acceptance
#SAs - #CAs + #SBs - #SDs = acceptance/persuasion
affective responses
the feeling and emotions that occur while processing a stimulus
retention
the transfer of information into long term memory
understand consumer knowledge helps marketers to:
understand the products competitive strengths and weaknesses verify whether position is working id usage issues and purchase barriers
re-positioning brands
changing perception about well known brands to update or improve the brand image, create clearer brand image, enhance value and profitabiltiy
usage knowledge
information in memory regarding how a product is used and what is required to use the product
image analysis using semantic differential measures
id the attributes that consumers use in deciding b/w brands in the product category asses consumer beliefs
perceptual map
a way to assess market structure collects perceptions of the brand and constructs a map
distance between brands allows us to: id potential recruits, asses competitive advantage and id the potential threats
constructing a perceptual map
id key attributes ensure consumers are familiar with the product category have consumers evaluate various brands on each attribute then compute avg. ratings on each brand
perceptual maps with ideal points
ideal point represents a brand that has ideal levels of the attributes of interest ideal points may vary for different segments
upscale vs. downscale moves
downscale- stretches present a problem with cannibalization sales of lower priced, low margin products can take away sales of higher priced/margin products
upward-stretches can also be risky can a low end company produce high quality products?
short term memory STM
where we encode or interpret incoming information in light of existing knowledge process of understanding used for information processing
limits: can only hold a certain # recall is limited, unless transferred to long term its lost
long term memory LTM
part of memory where information is permanently stored for later use
learning
is the process of changing or updating knowledge primarily by facilitating transfer from STM to LTM
cognitive learning
more complex form of learning
-recycling
-repetition
-elaboration
recycling
recycling information through STM two main functions maintenance of information and transfer of information
repetition
can involve repeating elements within the ad or generating mult. exposures of the same ad
-repeated exposure enhances future recall or recognition
advertising wearout
when too much repetition reduces ads effectiveness
-repetition with variation of a central theme using different ad executions that carry the same message reduces ad wear out
elaboration
amount of integration between the stimulus and existing knowledge
-integrating new information about a brand into the existing information already in memory
dual coding
one implication of dual coding is two coding systems verbal and imaginal (non verbal or visual) that information held in both systems should be more accessible than information held in just one
concrete words vs abstract words
concrete- tree party can be represented either visually or verbally
abstract- justice equality can be represented only verbally
easier to remember concrete words
classical conditioning
learning through assoications focuses on stimulus response associations
-Pavlovian dog
operant conditioning
involves how the consequences of a behavior affect the frequency with which the behavior is performed again
reinforcement
positive- the probability of the behavior being performed is increased through rewards
negative- probability of a given behavior being performed is also increased but this time by removing something negative
punishment
outcomes of a behavior are undesireable decreasing probability of performing the behavior again
retrieval
the process of remembering features of the associative network