Marketing 360 Exam 2

Front 1

Elaboration Likelihood Model (ELM)

Back 1

KNUGGET - consumers need a certain amount of information. that information is dependent upon their amount of involvement
(Central and Peripheral Route to persuasion)

Front 2

ELM - Central Route to persuasion

Back 2

high involvement (facts and information) / cognition/beliefs

Front 3

ELM - peripheral route to persuasion

Back 3

low involvement (music, pictures), majority of ads today, attracted by shiny objects (squirrel!) / behavioral/feelings

Front 4

Stimulus generalization
*KNUGGET*

Back 4

exisiting S-R relationship "generalizes" to a new stimulus.
ex: family brands and product line extensions

Front 5

consistency

Back 5

foot in the door

Front 6

Cocktail Party Phenomenon
*KNUGGET*

Back 6

don't really hear what else is being talked about around you until you hear something personally relevant (your name)
Resource allocation

Front 7

stages of adoption

Back 7

1. awareness, advertising
2. interest, create a buzz
3. evaluation, provide information
4. trial, experience the product
5. adoption, choose the product
6. confirmation, determine costs and benefits

Front 8

Puffery
*KNUGGET*

Back 8

Making a statement in marketing that is clearly false, but gets the point across - exaggeration.

Front 9

Heider's Balance Theory

Back 9

Ex: Carrie Underwood and Proactive
You like Carrie Underwood but you don't like proactive; theory says this is out of balance so you must change your opinion about one of them in order to get the balance back.

Front 10

Stimulus generalization

Back 10

generalize a stimulus from one stimulus to a new and similar stimuli.
"me too" branding strategies = look similar to another brand, family brands and product-line extensions.
Halo effect

Front 11

Me too products

Back 11

a product very similar to one that is already produced by other companies and already on the marekt
ex: vitamin water looks similar to gatorade
*halo effect - all products of that brand must be good or bad.

Front 12

Evoked Set/Consideration set

Back 12

personal set of brands that we'd consider buying. The acceptable choices.
ex: when we're going to buy a candy bar - which ones are our go-to options (snickers, m&ms)

Front 13

who talks more? has more influence? (satisfied/dissatisfied customers)

Back 13

dissatisfied customers tell more people than satisfied customers
ex: director who got kicked off plane, went to twitter and complained about airlines, reached millions - probably wouldn't have been like southwest is great if he hadn't been kicked off.

Front 14

post-purchase dissonance

Back 14

unsettling feeling about whether we made the right decision or not. rationalizing the dcision we made to confirm ourselves of making the right decision.

Front 15

enculturation

Back 15

learning from your own culture

Front 16

acculturation

Back 16

learning from other cultures

Front 17

how would you describe the relationship between the time spend deciding which product to buy and the amount of experience or knowledge the person has about the product?

Back 17

inverted U relationship

Front 18

VALS - 8 adult mindsets

Back 18

innovators
thinkers
believers
achievers
strivers
experiencers
makers
survivors

Front 19

VALS - innovators

Back 19

successful, sophisticated, take-charge people. high self-esteem. abundant resources
three primary motivations - change leaders, most receptive to new ideas and technologies.
very active consumers, purchases reflect cultivated tastes for upscale, niche products and services.
established and emerging leaders in business and government, continue to seek challenges.

Front 20

VALS - thinkers

Back 20

motivated by ideas. mature, satisfied, comfortable, reflective people - value order, knowledge, and responsibility.
well-educated and actively seeking information in decision-making process.
well informed about the world and national events and are alert to opportunities to broaden knowledge.
moderate respect for institutions of authority and social decorum but are open to consider new ideas.
conservative, practical consumers; look for durability, functionality, and value in products that they buy.

Front 21

VALS - believers

Back 21

motivated by ideals. conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation.
express moral codes that have deep roots and literal interpretation.
follow established routines, organized in large part around home, family, community, and social or religious organizations to which they belong.
predictable consumers, choose familiar products and established brands. favor u.s. products and generally are loyal customers.

Front 22

VALS - Achievers

Back 22

Motivated by desire for achievement - goal oriented lifestyles and a deep commitment to career and family. social l ives reflect this focus and are structured around family, place of worship, and work.
live conventional lives, politically conservative, respect authority and status quo.
value consensus, predictability, and stability over risk, intimacy, and self-discovery
Active in consumer market place. image is important, favor established, prestige products and services that demonstrate success to peers.

Front 23

VALS - strivers

Back 23

trendy and fun loving, motivated by achievement, concerned about opinions and approval of others.
success is defined by money, don't have enough of it to meet desires.
favor stylish products that emulate the purchases of people with greater material wealth. see themselves as having a job rather than a career, lack of skills and focus often prevent them from moving ahead.
active consumers because shopping is both social and an opportunity to demonstrate to peers the ability to buy.
impulsive consumers as their financial circumstances will allow.

Front 24

VALS - experiencers

Back 24

motivated by self-expression, young, enthusiastic, and impulsive consumers
quickly become enthusiastic about new possibilities but are equally quick to cool.
they seek variety and excitement, savoring the new, the offbeat, and the risky. their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.
avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socialization. their purchases reflect the emphasis that they place on looking good and having "cool" stuff

Front 25

VALS - Makers

Back 25

motivated by self-expression. they express themselves and experience the world by working on it - building a house, raising children, fixing a car, or canning vegetables - have enough skill and energy to carry out their projects successfully. practical people who have constructive skills and value self-sufficiency.
live within traditional context of family, practical work, and physical recreation and have little interest in what lies outside of that context.
suspicious of new ideas and large institutions such as large businesses. respectful of government authority and organized labor but resentful of government intrusion on individual rights.
unimpressed by material possessions other than those with a practical or functional purpose.
prefer value to luxury. they buy basic products.

Front 26

VALS - survivors

Back 26

live narrowly focused lives. few resources with which to cope, they often believe the world is changing too quickly. they are comfortable with the familiar and are primarily concerned with safety and security. because they must focus on meeting needs rather than fulfilling desires - do not show a strong primary motivation
cautious consumers. represent modest market for most products and services. loyal to favorite brands, especially at a discount.

Front 27

New task buying is consistent wit which type of problem solving?

Back 27

extended problem solving

Front 28

Classical conditioning
ex: jim giving dwight altoid

Back 28

unconditioned stimulus - altoid
conditioned stimulus - sound of computer turning on

Front 29

cognitive learning

Back 29

central route of information - most consistent with cognitive learning
peripheral - behavior

Front 30

slotting allowance - empirical research

Back 30

two survey based studies - shows limited consensus between manufacturers and retailers on the reasons for the use of slotting allowances - due to the survey method not accurately reflecting reality - distorts opinions about slotting fees

Front 31

correlational analysis - slotting allowance empirical research
sullivan 1997

Back 31

an objective time-series data at market level
ex: number of new products supplied by manufacturers, number of stock-keeping units (SKUs) kept at retailers, quantities sold by retailers, prices charged by manufacturers.
argues that use of slotting allowances RESULTS in equilibrium

Front 32

equilibrium

Back 32

number of products the manufacturer offers equals the number of products the retailer demands.

Front 33

Efficiency arguments in FAVOR of slotting allowances

Back 33

1 - efficiently allocate scarce retailer shelf space to the most valuable (profitable) new products
2 - they allocate risk of new prodcut failure in balanced manner between manufacturers and retailers
3 - they signal private information that manufacturers may have about the potential success of teh new product to the retailer
4 - manufacturers use them to induce retailers acceptance for product to increase distribution by mitigating effects of retail competition.

Front 34

ANTICOMPETITIVE explanations for slotting allowances

Back 34

1. they are a means for retailers to mitigate retail competition to increase their own profits by facilitating retail collision.
2. result of retailers exercising retail power - adversely affects smaller manufacturers and reduces consumer access to these prodcuts

Front 35

retail-power argument

Back 35

in many local markets, high retail concentration results in few retailers controlling retail shelf space - enables them to demand slotting allowances.

Front 36

SLOTTING ALLOWANCES

Back 36

lump sum payment by manufacturers to retailers for stocking new products - increasing prominence over past two decades - major share of new product development costs.

Front 37

Deloitte and Touche
Slotting allowances

Back 37

1990
slotting allowances = more than 16% of a new product's introductory costs.

research and development and market analysis expenditures = 14%

Front 38

Bureau of Alcohol, Tobacco, Firearms, and Explosive
Slotting allowances

Back 38

banned slotting allowances in alcohol trade - 1995

Front 39

Federal Trade Commission (FTC)
Slotting Allowances

Back 39

no guidelines on slotting - slotting allowances can have both efficiency and anticompetitive effects

Front 40

Types of Demand

Back 40

Inelastic demand - demands for products does not change with price changes. *can become elastic - gas*
fluctuating demand - changing consumer demand creates large increases/decreases in business demand. (causes of fluctuating demand: life expectancy - how long product lasts, company's inventory policy
joint demand - demand for 2 or more goods used together to create product, sales of one product partially dependent on availability of another product (ex: red cups and ping pong balls)