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94 Cards in this Set

  • Front
  • Back
Culture
the sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society
Theoretical Model of Culture's Influence on Behavior
W. Says- Focus on the term theoretical- means nobody has proven this model- but it represents what researchers in consumer behavior would feel would be the impact of elements of subjective culture on consumer behavior buying
Personality
IS NOT learned, you have your personality when you are born
Lifestyle Matrix for Global Youth
The In-Crowd
Network Intelligentsia
Thrill Renegades
Pop Mavericks
Enculturation
the learning of one's own culture
Acculturation
the learning of a new or foreign culture
How do U.S. marketers target consumers who live outside the U.S. and are adopting parts of the U.S. culture?
Foreign domestic investment used to be the way to transfer U.S. good foreign- Increasingly export is a tool- it's a growth market to get good over seas.
Language and Symbols
-Without a common language, shared meaning could not exist
-Marketers must choose appropriate symbols in advertising
-Marketers can use "known" symbols for associations
Formal Learning
Where parents, grandparents, etc teach you
Informal Learning
Where you learn through the influence of other kids
Technical Learning
Where you learn through the influence of teachers and professors
Ritual
A ritual is a type of symbolic activity consisting of a series of steps
-Rituals extend over the human life cycle
-Marketers realize that rituals often involve products (artifacts)
Sharing of Culture
-the be a cultural characteristic, a belief, value or practice must be shared by a significant portion of the society
-culture is transferred through family, schools, houses of worship, and media
Culture is Dynamic
-Evolves because it fills needs
Factors changing culture
-Technology
-Populations Shifts
-Resource shortages
-Wars
-Changing values
-Customs from other countries
Moores Law
-Developed in the middle 1960s, says that the cost per thousand computations for an information-processing device is cut in half every 18 months
Measurement of Culture
W. is working on a device to measure this
-content analysis
Consumer Fieldwork
when examining a specific society, anthropologists frequently immerse themselves in the environment under study
Content Analysis
A method for systematically analyzing the content of verbal and/or pictorial communication- frequently used to determine prevailing social values of a society
Field Observation
1. it takes place within a natural environment; 2. it is performed sometimes without the subjects awareness; and 3. it focuses on observation of behavior
Participant Observation
they become active members of the environment that they are studying
Rokeach Value Survey (RVS)
a self-administered inventory consisting of 18 "terminal" values (i.e., personal goals) and 18 "instrumental"values (i.e., ways of reaching personal goals)
List of Values
asks consumers to identify their 2 most importnat values from a 9-value list (such as, warm relationships with others, sense of belonging, etc)- based on the "terminal" values of rokeach
VALS
Values and Lifestyles
American Core Values
Building blocks of the American character- achievement and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, external conformity, humanitarianism, youthfulness and fitness and health
Subculture
a distinct cultural group that exists as an identifiable segment within a larger, more complex society
Examples of Major Subcultural Categories
nationality, religion, race, age, gender, occupation, social class
Religious Subcultures
-200+ organized religious groups in the U.S.
-Primary organized faiths include: protestant denominations, roman catholicism, islam, judaism
Regional Subcultures
Many regional difference exist in consumption behavior- example: westerns=black coffee, easterners=coffee with milk and sugar
Major Racial Subcultures African American
13% of the U.S. population
Major Racial Subcultures Asian American
-fastest growing racial segment in terms of % growth
-diverse group including 6 major ethnicities
-95% live in metropolitan areas and business ownership is high
Major Age Subcultures
Gen Y, Gen X, Baby Boomers, Seniors
Gen Y
Three Groups
- Adults 19-28
- Teens 13-18
- Tweens 8-12
Gen X
Mom- 31-43 years old
Also referred to as Xers, busters, or slackers
Baby Boomers
Dad- 45-63 years old
Not anxious to retire...
how seniors use the internet
like 68% use it to stay in touch with friend and relatives
Subcultural Interaction
suggests that marketers should stive to understand how multiple subcultural memberships interact to influences target consumers relevant consumption behavior
Multinational Firm
was one that makes a foreign direct investment in a foreign country to produce good for buyers in the foreign country
Global Trade Agreements
EU- 27 members
NAFTA- US, Canada, & Mexico
WInning Emerging Markets
you dont' WIN an emergine market- you successfully penetrate it and if there were any winning right now it's be the BRIC- Brazil, RUssia, India & China
The best Global Brands
Nokia dropped out and Apple took it's place- 1.Coke, 2.IBM, 3.Microsoft, 4.GE, 5.APPLE 6.Toyota 7.Intel 8.Mcdonalds 9.Disney, 10.Google
Country of Origin Effects: Positive
Many consumers may take into consideration the country of origin of a product
Country of Origin Effects: Negative
Some consumers have animosity toward a country-
example- peoples republic of china has some animosity to japon, jewish consumers avoid german product
Country-of-Design (COD)
W. Very important in the U.S.
Country-of-Assembly (COA)
W. only of secondary importance- there's a derogatory term in international business- where the only thing that takes place in this given country- "screwdrive plants= where only assembly is taken place in a country and nothing else- this is a negative thing!
Country-of-Part (COP)
W. the most important factor in driving this where the parts come from! For the US in order for a product to be a US made product-75% of parts must be from the US
Cross-Cultural Consumer Analysis
the effort to determine to what extent the consumers of two or more nations are similar and different
The growing global middle class
W. What is middle class in china is DRASTICALLY different than that of the US- there is not a unified global middle class- there are different middle classes
The global teen market
-there has been growth in an affluent global teenage and young adult market
-they appear to have similar interest, desires and consumption behavior no matter where they live
W. text talks about "creatives"="cool group" for teens
"creatives"
tend to values honesty, freedom, and other and do not value wealth, status and other such stuff
Acculturation- issues dealing with cross-cultural marketing
-marketers must learn everything that is relevant about the suage of their product and product categories in foreign countries
- Not good advice to advocate that if you become an internatinoal marketer to cause customers to change their traditions-doesn't do any good- cause you're not gonna make any money and you'll offend people on the way
World Brand
Products that are manufacturer packages, and positioned the same way regardless of the country in which they are sold- W. Coke is NOT a world brand- Ikea would be a good example of a world brand
Diffusion Process
The process by which the acceptance of an innovation is spread by communication to members of a social system over a period of time
W. Replace social system with market segment
Element of the Diffusion Process
1. the innovation 2. the channel of communication 3. the social system 4. time
Firm-Oriented
product is "new" to the company
Product-Oriented
approach focuses on the features in-herent in the product itself and on the effects these features are likely to have on consumers' established usage patterns
Continuous Innovation
has the least disruptive influence on established patterns- W. product modification that does not involve any change in behavior at all- toothbrush that serves also as a flossing device
Dynamically Continuous
W. Still does not change behavior patterns of the buyer but it is more disruptive than the continuous- MP3 player
Discontinuous
W. calls a change in buyers behavior- fax machines and internet
Market-Oriented
Based on consumer exposure- W. actually how long the product has been on the market
Consumer-Oriented
Consumer judges is as "new"- W. Consumers are the ultimate guide- if we say it's a new product, then it is.
Relative Advantage
degree to which consumers consider it superior to existing substitutes
Compatibility
degree to which consumers feel it is consistent with their present needs, values and practices
Complexity
the degree to which it is difficult to understand or use
Observability
the degree to which its benefits can be observed, imagined, or described-
W. Ads on TV that have a device to test you for your diabetes- where its using a small amount of blood to where ou can't even feel it
Channels of Communication
-marketer to consumer
-consumer to consumer
-influential impersonal sources
Purchase Time
amount of time that passes between when consumers become aware of a product and when they buy or reject it
Adopter Categories
-innovator 10%
-early adopters 15%
-early majority 30%
-late majority 30%
-laggards 15%
Rate of Adoption
W. Differs so dramatically from different product types- UK data- it took 38 years for the telephone to fully diffuse through the country
Adaption Process
-the stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product
Importance of Information Sources
graph- the relative importance of different types of information sources in the adoption process
-awareness, interest, evaluation, trial, and adoption
Extensive Problem Solving
A lot of information needed, must establish a set of criteria for evaluation
Limited Problem Solving
Criteria for evaluation established, fine tuning with additional information
Routinized Response Behavior
usually review what they already know
Economic View
W. Oldest view in consumer decision making- decision making is rational, all alternative are known to the buyer and the buyer con correctly rank the alternatives in desirability
Passive View
W. Submissive to the marketer- just needs to extend a few more ads and they are eating out of your hands- Compulsive and Irrational- very manipulative
Cognitive View
W. views the consumer as a thinking problem solver- someone who uses explicit decision rules- and is frequently beset by information overload- satisfying behavior-where they make a decision that is good enough
Emotional View
W. Emphasis is placed on the consumer current view and mood- so if they see an advertisement and are in a buying mood then that starts up all kinds of buying activity
Consumer Decision Making- Getting tested on this!
Overall diagram of consumer decision making- in this model there's three basic segments input, output and process- but there's a mistake in input- it says Firm's Marketing Efforts- it should be Firms'--- it's not just your firm that's influencing the four P's its ALL firms'
Process- Need Recognition
-Usually occurs when consumer has a "problem"
-need recognition styles- actual state and desired state
-W. there is a problem whenever there's a difference between the desired state and the actual state- operational definition of a problem
Process- Pre-Purchase Search
-Begins with internal search and then moves to external search
-The impact of the internet
-There are many factors that increase search-know these-W. these tend to increase pre-purchase product activity---Product factors, situational factor- when a consumer is buying a new product, social acceptability-when a consumer is buying a gift for someone, Consumer factors- when a consumer is well educated and has high income then that individual is going to engage in more pre-purchase search
Conjunctive, disjunctive, or lexicographic
Conjunctive- where the consumer establishes a min. performance level on each attribute- if a given brand falls below any one min. performance level on any one attribute then the brand is out!
Disjunctive- on the other hand, the disjunctive is kinda the opposite you've got multiple brand and attributes- if a brand scores above on any 1 attribute then it wins
Lexicographic- consumer decides on THE most importance attribute- such as price, performance, color- then secondly the consumer then evaluates all available brands based on that attribute ONLY- and which brand scores the highest on that attribute then that's the one that's chosen
The Evoked Set
-For a given consumer the known brands that are acceptable to the consumer would be classified as or known as the evoked set
-Example: when cars would come to mind where you would when you have the income you would realistically thinking about purchasing? So you then list the cars lik honda fit, toyota and they would be your evoked set.
Compensatory
-evaluates each brand in terms of each relevant attribute an then selects the brand with the highest weighted score
-W. where they add up all the attributes and the one with more wins
Non-Compensatory
-Positive eval. of a brand attribute does not compensate for a negative evaluation of the same brand on some other attribute
Evoked Set- Inept and Inert
Inept- you know about the brands and they are unacceptable-
Inert-with the inert set it's different- with this you dont have a negative view of the brands in the inert set youre just indifferent- you're inert about it
Affect Referral Rule
someone's says what kind of netbook do you think is the most desirable- you say Dell, and then they say why, is price, performance,a nd tehy say it's just dell- I don't know why, it's just dell- no necessary emphasis on attributes- there's just a global assessment- very widely used!
Functionally Illiterate Population
W. the decision process for functionally illiterate consumer- decision heurisitics- that functionally illiterate consumers use- they almost always use a single attribute- just as, i chose the one that cost the least or the one with the biggest can
Output of Consumer Decision Making
Purchase Behavior
- trial purchases W. Relate to brand loyalty, will stick with a brand through thick and thin
-Repeat Purchases
-Long-term commitment-
Post-purchase Evaluation
Acutal performacne matches expectation- neutral feeling
Actual performance exceeds expectation- W. known as consumer delights, positive disconfirmation of expectations
Gifting Behavior
gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congrats, love to regret
Gifting Relationships
Intergroup-a group giving a gift to one another
Inter-category-W. relationships between groups and individuals
Intragroup-a group giving a gift to itself or its members
Interpersonal-an individual giving a gift to another individual
Intrapersonal-self gift
Relationship Marketing
marketing aimed at creating strong, lasting relationships with a core group of customers by making them feel good about the company and by giving them kind of personal connection with the business
Relationship Marketing---
assess the values of the relationships with an individual by assessing the net present value of the stream of profits attached to that individual- you take a stream of profits over time- like over ten years- and there's a way to analyze this stream and come up with one value