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144 Cards in this Set
- Front
- Back
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What is CB?
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Study of how people select, purchase, use and/or dispose products, services, etc. to fulfill needs & desires
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cognition (thought)
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product-related knowledge, beliefs, opinions, intentions
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affect (feeling)
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product-related emotions
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observable behaviors
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product-related decisions & actions
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Loss leaders
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help to attract customers. ex. CDs at Walmart
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relationship marketing
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interact with customers regularly; give them reasons to
maintain a bond with the company |
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exploratory research
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no explicit hypothesis, utilize association techniques (word association, emotionality) projective techniques (storytelling), focus group. helps evaluate postion, helpful to look @ speed of response & whether it is pos or neg
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problem-solving research
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specific hypothesis. Descriptive/Correlational research (e.g., consumer panel, survey, observation). what ppl say: survey. what ppl do: observation.
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correlation
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measure the relationship b/t 2 variables (causation not implied)
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dangers of what people say...
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introspection cannot always be counted on. most meaning is conveyed through non-verbal cues.
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1940s
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economic man; rational
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1950s-60s
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irrational consumer; vulnerable to external influences
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1970s
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problem solver; try to make the best decision given certain limitations (Miller's chunk, 5-9 chunks)
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1980s-90s
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cognitive miser; use heuristics to simplify decisions
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2000s-10s
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constructive processor.
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Consumer Decision Process
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need/problem recognition -> info search ->alternative eval -> purchase -> consumption -> post-purchase behavior
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pros & cons to CDP model?
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adv: can be applied to wide range of situations
dis: can be very complex, complications of hyperchoice |
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extended problem solving (EPS)
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All stages in the process are followed.
More expensive products, infrequently purchased, high consumer involvement , unfamiliar products |
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limited problem solving (LPS)
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No time, resources, or motivation to engage in EPS
Less expensive products, frequently purchased, low consumer involvement, familiar products |
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mid-range problem solving
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between EPS & LPS
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Habitual Decision Making
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for repeat purchases, lowest difficulty of decision making
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problem/need recognition
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1st stage of decision making, there is a perceived diff b/t an ideal and actual state
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opportunity recognition
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ideal state changes
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need recognition
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actual state cahnges
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how are needs activated
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Time
Changed circumstances Product acquisition Product consumption Product innovation Marketing influence |
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information search
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2nd stage of CDM process, motivated action of knowledge either independent (memory) or experiential (environment)
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familiarity effects
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amt of search differs depending on level of product knowledge
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searching by brand
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used by experts, used in the later stages of a search
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searching by attribute
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used by novices, used in early stages of search
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confirmation bias
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Seek out information that confirms our existing beliefs and weight this information more than information that disconfirms our belief
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mood bias
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Positive mood makes us evaluate options more favorably
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negative bias
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_________
Negative information is perceived to be more salient, diagnostic and weighted more heavily in judgment |
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Alternative Evaluation
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determining evaluation criteria and choice alternatives, assessing alternatives, and applying decision rules
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evaluative criteria
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dimensions used in judging choice alternatives. can be utilitarian (practical) or hedonic (pleasurable, emotional)
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evoked set
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A subset of available alternatives that we know about
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Consideration set
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A subset of available alternatives that we consider when making a choice
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Cutoffs
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Restrictions or requirements for acceptable attribute values that customers employ in judging performance of alternatives
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Cues or Signals
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Brand name, warranty, or price as a quality signal
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compensatory decision rule
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A perceived weakness of one attribute may be offset or compensated for by the perceived strength of another attribute. Requires explicit trade-offs among alternatives.
-Simple additive rule -Weighted additive rule |
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non-compensatory decision rule
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A product’s weakness on one attribute cannot be offset by its strong performance on anther attribute Decision making process proceeds in a simple and sequential manner.
-Conjunctive rule -Disjunctive rule -Lexicographic rule -Elimination-by-aspects (EBA) rule |
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weighted additive
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assumes rational consumer, brand-based processing (aka overall not attribute by attribute)
-attribute x weight and add all up |
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equal weight
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Considering all of the alternatives and all of the attribute values for each alternative
brand-based processing |
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additive difference
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Alternatives are processed in pairs with the values of the two alternatives compared on each attribute.
-attribute-based processing |
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conjunctive
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Consumers set up minimum cutoffs for each attribute that represent the absolute lowest value the consumer would accept.
-brand-based processing |
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disjunctive
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Similar to conjunctive rule with two important exceptions:
-Consumers set up acceptable levels for the cutoffs, levels that are more desirable. -Evaluations are made on several (rather than all) of the most important attributes (choose first brand that meets cutoff on one attribute or small subset) |
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lexicographic
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Determines the most important attribute, and then examines the values of all alternatives on that attribute.
The alternative with the best value on the most important attribute is selected. -attribute-based processing |
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elimination-by-aspects (EBA)
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Similar to the lexicographic rule except that EBA
incorporates the notion of an acceptable cutoff -After attributes are ordered in terms of importance, alternatives are compared on the most important attribute -attribute-based processing |
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what leads to store loyalty?
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store image: location, merchandise suitability, knowledge of staff.
interior design, types of patrons, return policies, credit availability |
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cognitive dissonance
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regret; can lead to abortion of the consumption process. post-purchase effect. consumers will seek balance in the psychological set by seeking supporting info or distorting contradictory info
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marketing implications of cognitive dissonance?
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-make claims that accurately depict product performance
-contact buyers post purchase -depict satisfied buyers in advertising |
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80% of sales come from __% of your customers
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20%
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why is customer satisfaction important?
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-influences repeat buying
-shapes word-of-mouth communication -dissatisfaction can lead to complaints |
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customer lifetime value
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how much money a customer spends over a lifetime at a given retailer
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dissatisfaction leads to...
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-voice responses: seeking redress from the seller
-private responses: negative word-of-mouth -third-party responses: taking legal action |
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satisfaction
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when performance = expectations
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dissatisfaction
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when performance < expectations
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delight
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when performance > expectations
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negative disconfirmation
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performance is less than expected
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positive disconfirmation
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performance is greater than expected
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confirmation
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performance matches expectations
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divestment
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outright disposal, recycling, remarketing
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"satisficing" strategy
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picking something that is just good enough. use of heuristics
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use of heuristics leads to biases which are...
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systematic errors
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types of heuristics
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performance, habit, brand loyalty, price
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impulse purchases
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unplanned urge to buy that results from additional info in store
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Normative Model
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how should ppl make decisions? (rational, optimizing).
statistician/economist |
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Prescriptive Model
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how can we help people make better decisions? (debiasing, correcting)
people make relative judgments consultant |
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Descriptive Model
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how do people actually make decisions?
(bounded rational, heuristics, satisficing) -psychologist |
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framing effects:
____ loom larger than equivalent _____ |
losses, gains
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Category membership
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if A is highly similar to B, A seems to belong to B
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Causal judgments
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if A is highly similar to B, A seems to cause B
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representative heuristic
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Judge the probability that an item is a member
of a class by the degree to which the item is representative of (resembles) the class |
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Availability Heuristic
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Focus on the ease with which instances can be brought to mind
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Anchoring & Adjustment
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adjustment often insufficient
anchors often irrelevant |
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For any marketing stimulus to
have an impact, consumers should be ____ to it, pay ____ to it, and ____ it in the way marketers intend |
exposed, attention, perceive
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sensation
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the immediate response of our sensory receptors (eyes, ears, nose, mouth, and fingers) to basic stimuli (light, color, sound, odor, and texture)
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perception
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the process by which sensations are selected, organized, and interpreted
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exposure
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occurs when there is physical
proximity to a stimulus that allows one or more of our five senses the opportunity to be activated |
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Activation happens when a stimulus meets or exceeds _______
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the lower threshold
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zipping
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fast forwarding past commercials
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zapping
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switching to other channel during a commercial w/ remote
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flipping (ignoring)
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moving from one channel to another
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marketing tactics to get consumers' attention?
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road blocking, repetition, message placement (beg. vs. end), distribution, non-traditional routes (sponsorships)
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product placement pros and cons?
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realism, efficient, endorsement effect
con: lacks control |
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attention
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the extent to wich processing activity is devoted to a particular stimulus
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attention intensity
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the amt of info ppl can attend to (5-9 units)
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Why do consumers pay
attention? |
novelty(context-dependent), unexpected stimuli, vividness(not context-dependent)
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personal selection factors: vigilance
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more aware of stimuli that relate to current needs
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personal selection factors: defense
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see what you want to see
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personal selection factors: adaptation
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degree to which stimuli noticed over time
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How can marketing managers
grab consumers’ attention? |
isolation, big size, intensity, surprise, human attraction, less clutter, easy to process, attention grabbing stimuli, connect w/ consumer needs
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auditory intensity
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determines whether sound will be perceived
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sonic identity
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using songs to support brand image
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absolute threshold
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minimum amount of stimulus
intensity needed for detection |
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Just-noticeable difference (JND)
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differential threshold; The amount by which two stimuli must differ before a person can perceive that they are different
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Weber's Law
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the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different
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subliminal perception
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the activation of sensory receptors by stimuli presented below the threshold level of awareness
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mere exposure effect
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subliminal presentation of a stimulus can lead to increased liking for the stimulus (caveat: has to be neutral. no preconceived notions)
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gestalt psychology
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When we see an item, we evaluate it as a “whole thing,” not as a collection of its tiny part
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closure
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perceive incomplete picture as complete
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perceptual confirmation
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We perceive and interpret ambiguous data to be in line with our expectations & beliefs
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interpretation
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the meaning we assign to stimuli
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Comprehension
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The process of understanding and giving meaning to that which we have just perceived; prior knowledge plays an integral role
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schema
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a set of associations linked to a concept
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Managing brand schemas
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Salient associations should be favorable, unique
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Extending schemas
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Brand extensions
Brand alliances |
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Changing
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repositioning - very difficult task
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Comparison omission
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omitting info in a claim to mislead
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Piecemeal data
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overall impression of individ statements misleading
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Incidental learning
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learning by accident
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conditioning
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a form of learning based on association of a stimulus (info) and response (behavior or feeling)
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classical conditioning
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a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own
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instrumental (operant) conditioning
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the individual learns to perform
behaviors that produce positive outcomes and to avoid those that yield negative outcomes |
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determinants of classical conditioning?
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-strength of conditioning
-contiguity (seen close together) -blocking (UCS not associated w/ other stimuli) -fit -ordering of CS and UCS -forward conditioning most effective (CS precedes UCS) |
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higher order conditioning, stimulus generalization
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CS now becomes UCS...
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extinction
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when a positive outcome is removed
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reinforcement schedules
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fixed-interval reinforcement
variable-interval reinforcement, fixed-ratio reinforcement, variable-ratio reinforcement |
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utilitarian reinforcement
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consistent good quality, rebates & coupons
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hedonic reinforcement
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store atmosphere, toy in a cereal box,
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social reinforcement
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reinforcement from reference group
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encoding
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sens -> STM
info enters in a way the the system will recognize (can be acoustic, visual, or semantic) |
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storage
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ST -> LT
integrate knowledge into memory Can store episodic, procedural, or semantic memories |
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retrieval
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LT -> ST
access desired information can be done via recognition or recall |
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sensory memory types
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fleeting (1/4th -> several seconds), echoic (3-4 sec, and iconic (250 msec)
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duration in STM is ___ seconds
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18
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2 types of LTM
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episodic (autobiographical and semantic (meaning)
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serial position of ad
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1st 5: semantic LTM
last 6: acoustic STM |
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serial position matters b/c of ____ and _____ effects
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primacy, recency
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Organizing Principle
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Categorization facilitates memory performance
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Encoding-Specificity Principle
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Contextual cue (match between encoding and retrieval of
information) |
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Association Principle
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Information nodes sharing a direct link (interrelated pieces of knowledge)
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priming
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Activating a node in memory, often outside of awareness
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Cognitive Learning
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Occurs when information from STM stored in LTM
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Rehearsal
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Repetition
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Elaboration
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Integration between stimulus and knowledge
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Retrieval
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transfer of information from inactive LTM to active STM
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Retrieval influenced by?
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-strength of memory trace
-retrieval cues -spreading activation |
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Strength of Elaboration influenced by?
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-Motivation
-intentional learning (spelling list) -incidental learning (reading book) -Ability -individual factors (knowledge) -environmental factors -distractions -age |
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Forgetting
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failure to retrieve something from memory
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Reasons for Failure to retrieve from LTM?
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-decay theory (mem. grows weaker)
-inaccessibility -interference |
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retroactive interference
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learning new interferes with the memory of old
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proactive interference
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old knowledge interferes with ability to learn something new
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part-list cueing effect
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a partial list impedes ability to think of new items in that list
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factors effecting retrieval?
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-salience (von Restorff effect) (uniqueness - like Pringles can)
-prototypicality -redundant cues/repetition -retrieval cues (brand names) -mood -pics vs. words |
