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67 Cards in this Set
- Front
- Back
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What is consumers limited capacity for processing information? |
Bounded rationality |
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What is returned after an internal search and is a very limited preliminary search? |
Evoked set |
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What are decisions we make based on feelings, that we then work backwards to rationalize? |
Affective choices |
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What are the two motives of affective choices? |
-consummatory motives: joy of consuming -instrumental motive: to achieve another goal (hammer to build a chair) |
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What are choices made with specific traits or goals in mind? |
Attribute choices |
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What is it when we give a large number of choices and ask people to rank them? |
Cojointive analysis |
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Compensatory Decision rule |
to average out some very goodfeatures with some less attractive features of a product in determining overall brand preference the brand that rates highest on the sum ofthe consumer’s judgments of the relevant evaluative criteria will be chosen. |
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Conjunctive decision rule |
establishes minimum required performance standards foreach evaluative criterion and selects the first or all brands that meet or exceed these minimumstandards -"I'll buy the first brands that are acceptable on the attributes I think are important" |
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Disjunctive decision rule |
establishes a minimum level of performance for each importantattribute (often a fairly high level). All brands that meet or exceed the performancelevel for any key attribute are considered acceptable. Using this rule, you would say, “I’llconsider all (or buy the fi rst) brands that perform really well on any attribute I considerimportant.” |
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Elimination-by-Aspects Decision rule |
requires the consumer to rank the evaluativecriteria in terms of their importance and to establish a cutoff point for each criterion. Allbrands are first considered on the most important criterion. Those that do not meet or exceedthe cutoff point are dropped from consideration. If more than one brand remains in the setafter this fi rst elimination phase, the process is repeated on those brands for the second mostimportant criterion. This continues until only one brand remains. Thus, the consumer’slogic is, “I want to buy the brand that has a high level of an important attribute that otherbrands do not have.” |
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Lexicographic Decision Rule |
requires the consumer to rank the criteria in order ofimportance. The consumer then selects the brand that performs best on the most importantattribute. If two or more brands tie on this attribute, they are evaluated on the second mostimportant attribute. This continues through the attributes until one brand outperforms theothers. The consumer’s thinking is something like this: “I want to get the brand that doesbest on the attribute of most importance to me. If there is a tie, I’ll break it by choosing theone that does best on my second most important criterion.” |
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Advantages of Brick and Mortar Stores |
1) touch/try 2) greater upsell potential 3) use environment to help sell |
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Advantages of selling online |
1) larger geographic market 2) less middlemen 3) wider inventory 4) less state sales tax |
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Why would manufacturers encourage e-commerce? |
-save on cost of operating stores -reduce inventory costs -reach rural customers |
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What percent of the US population has access to broadband at home or at work? |
70%, the other 30% are either old, very young, or poor |
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What is "show-rooming"? |
Looking at a product in a store and then buying it online |
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High involvement vs. Low involvement purchasing |
High: Buying a car/house Low: Buying a candy bar |
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3 points with "involvement with the brand" |
-nominal: no decision (always buy tide, go buy more tide) -brand loyal: actively prefer it, will wait or drive to another store -repeat purchases: I always get the store brand unless it's out of stock |
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What is a limited decision? |
-internal information search -limited external search |
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What is an extended decision? |
-extensive external search -example: kitchen remodel -if not researched well, customer may experience post purchase cognitive dissonance |
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Active vs. Inactive problems |
Active: flat tire, computer won't turn on, friend has a new purse that you want Inactive: we're not aware it is a problem, marketers make us aware of it. (chocolate sundae effect) (if someone offered you a chocolate sundae during class you might want it, even though you didn't think you wanted one) |
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awareness set |
all the possibilities we were aware of |
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inept set |
brands that we know won't work for us |
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inert set |
brands that we have no knowledge or opinion of |
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evoked set |
brands that we think might work |
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How to become part of the evoked set: Maintenance |
-product quality -distributed widely -develop and improve the product |
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How to become part of the evoked set: Disrupt |
-major product improvement -attention getting ads -samples/coupons |
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How to become part of the evoked set: Intercept |
-local ads -coupons |
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How to become part of the evoked set: Preference |
-become the first choice not a choice -emphasize attributes you excel in -advertise to people who influence purchases |
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How to become part of the evoked set: acceptance |
-get customer's attention -long term ads to increase low involvement -provide incentives |
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How does something move from short term to long term memory? |
-repetition -rehearsal: making a conscious effort -conditioning: associating term with an emotion -put info in a meaningful context -mnemonic device |
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Definition of consumer behavior |
study of individuals, groups, and the process they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy need, as well as the impacts those needs have on the consumer and society |
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5 stages of marketing strategy |
-analysis -segmentation -strategy -consumer decision (problem recognition, alternative evaluation, purchase, post purchase) -outcomes at individual, firm and societal level |
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Total Product |
-price -communications -distribution -services -used with marketing mix |
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Marketing mix |
business tool used in marketing, often associated with the four p's price product promotion and place |
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Need set |
idea that most products satisfy more than one need |
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injurious consumption |
consumption decisions that have poor long term consequences (cigarettes, cheap clothes) |
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3 components of attitude |
1) cognitive component- thinking 2) affective component- feeling 3) behavioral component - acting |
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class to mass |
the idea of marketing high end goods to the masses rather than to the high class |
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Psychographics |
is the primary way that lifestyle ismade useful to marketing managers. Thisis a way of describing the psychological makeup or lifestyleof consumers by assessing such lifestyle dimensionsas activities, interests, opinions, values, and demographics. |
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Firmographics |
-Firm "demographics" -locations -size -activities and objectives -industry category -organization composition |
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Product repositioning |
deliberatedecision to signifi cantly alter the way the market views a product |
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Brand leverage/brand extension |
refers to marketers capitalizing on brand equity by using an existing brand namefor new products |
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Product positioning |
is a decisionby a marketer to attempt to attain a defi ned and differentiatedbrand image, generally in relation to specifi ccompetitors. |
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Physical surroundings |
include decor, sounds, aromas, lighting, weather, and confi gurationsof merchandise or other materials surrounding the stimulus object. |
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storeatmosphere |
The sum of all the physical features of a retail environment |
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servicescape |
Atmosphere is referred to as servicescape when describing a service business such asa hospital, bank, or restaurant |
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Social surroundings |
the other individuals present in the particular situation |
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Temporal perspectives |
situational characteristics that deal with the effect of time onconsumer behavior . |
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Outlet selection |
-chose the closest -prefer larger |
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Inference |
goes beyond whatis directly stated or presented . Consumers use available data and their own ideas to drawconclusions about information that is not provided. |
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Proximity |
refers to the fact that stimuli positioned close together are perceived asbelonging to the same category . |
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Ambush marketing |
any communication or activity that impliesthat an organization is associated withan event, when in fact it is not. |
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Figure-ground |
involves presenting the stimulus in such a way that it is perceived asthe focal object to be attended to and all other stimuli are perceived as the background. |
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Closure |
involves presenting an incomplete stimulus with the goal of getting consumers to complete it and thus become more engaged and involved |
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Repeat purchasers |
continue to buy the same brand even though they do not have an emotional attachment |
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Committed customer |
-a consumer who is loyal to a brand -brand is similar to a friendship -"I believe in this firm" |
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Internal Influences |
-organizational values -perception -learning -memory -motives -emotions -personality and lifestyle |
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aspiration reference groups |
Individuals frequently purchase products thought to be used by a desired group inorder to achieve actual or symbolic membership in the group. |
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dissociative reference groups |
Groups with negative desirability— dissociativereference groups —can infl uence behavior just as do those with positive desirability. 2 Forexample, teenagers tend to avoid clothing styles associated with older consumers |
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Extended self |
consists of the self plus possessions |
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Churn |
Churn is a term used to refer to turnover in a fi rm’s customer base. If a fi rm has a base of100 customers and 20 leave each year and 20 new ones become customers, it has a churnrate of 20 percent |
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acquisition costs |
include such expenses as advertising, establishing the account, mailingthe card, and so forth |
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cohort analysis |
the process of describing and explaining the attitudes, values, andbehaviors of an age group as well as predicting its future attitudes, values, and behaviors |
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stockouts |
store being temporarily out of a particular brand |
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Brand equity |
is the value consumers assign to a brand above and beyond the functionalcharacteristics of the product. |
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Price premium |
refers to the fact that repeat and particularly committed customers tend to buy thebrand consistently rather than waiting for a sale or continually negotiating price |
