Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/79

Click to flip

79 Cards in this Set

  • Front
  • Back
• 2 Types of Goal Hierarchies –
o Life themes
 Basic concerns that consumers address in everyday life (e.g., being educated, being cosmopolitan, showing good taste)
o Life projects
 The construction and maintenance of key life roles and identities (e.g., being a responsible mother, a loyal employee, a successful teacher)
o Current Concerns (lower level goals)
 Product preferences
2. Freud’s Theory –
o The human psyche is broadly divided into the conscious and the unconscious.
o The ego - conscious mind (human consciousness; composed of perceptions, thoughts, memories, and feelings.)
o The id - unconscious mind (all the instincts and psychic energies; biological forces)
o The superego represents the traditional ideas and values of society (conscience).
Implications of Freud’s Theory for Marketing
o New product managers may try to create brands that fulfill needs of the id, ego, or superego.
o Advertising managers can use Freud’s concepts to inspire creative copy, promotional themes can be used to appeal to consumer’s unconscious motivations
o Marketing researchers use Rorschach test (ink-blot test) to study consumers’ reactions to visual images.
3. Maslow’s Needs
o Needs are arranged in a sequence from lower-level to higher-level.
o Physiological
o Safety and security
o Social
o Ego
o Self-actualization
.Self-actualization:
This involves the desire for self-fulfillment, to become all that one is capable of becoming.
Esteem
: Desires for status, superiority, self-respect, and prestige are examples of esteem needs. These needs relate to the individual’s feelings of usefulness and accomplishment.
Belongingness
: Belongingness motives are reflected in a desire for love, friendship, affiliation, and group acceptance.
Safety:
: Feeling physical safety and security, stability, familiar surroundings, and so forth are manifestations of safety needs. They are aroused after physiological motives are minimally satisfied, and before other motives.
Physiological:
: Food, water, sleep, and to a limited extent, sex, are physiological motives. Unless they are minimally satisfied, other motives are not activated.
o Maslow’s Hierarchy of Needs
o Criticisms:
 overly simplistic
 ignores the intensity of needs
 ordering of needs may not be consistent across cultures
Implications of Maslow’s Theory of Marketing
 Provides useful summary of human needs that may guide marketing managers to understand consumer behavior and needs.
 List of needs can serve as a key input for product design.
 Marketing communications can be designed to appeal to one or more of the needs.
5. 5 Consumer Motives - Five Consumer Needs in Cultural Perspective
• The Achievement Motive -
• The Power Motive - Power Motive
o Defined as, the drive to have control or influence over another person, group, or the world at large.
• “Pinky and the Brain”.
• The Uniqueness/Novelty Motive - Uniqueness/Novelty
o The greater the need to be unique, the greater the attraction for scarce, new, or different products
• The Affiliation Motive -
• The Self Esteem Motive - Self-Esteem
o Self-enhancing bias- take credit for successes, explain away failures, and see themselves as better than most others
• The Power Motive - Power Motive
o Defined as, the drive to have control or influence over another person, group, or the world at large.
• “Pinky and the Brain”.
• The Uniqueness/Novelty Motive - Uniqueness/Novelty
o The greater the need to be unique, the greater the attraction for scarce, new, or different products
• The Self Esteem Motive - Self-Esteem
o Self-enhancing bias- take credit for successes, explain away failures, and see themselves as better than most others
1. Balance Theory - Balance theory
i. balancing your attitudes with your relationships
ii. describes how consumers evaluate elements that belong together.
iii. consumer perceptions are classified as either positive or negative.
iv. perceptions are altered to make them consistent
• Element triad:
i. a consumer and her perceptions
ii. an attitude object
iii. some other person
• Expands behaviors encompassed in TORA
o Mirrors the TORA except that it recognizes that behavioral intentions and behavior sometimes depend on perceived behavioral control – consumers’ perception of how easy or difficult it is to perform the behavior.
o Self-control depends on standards, a monitoring process, and the capacity to alter one’s behavior.
o Behavioral monitoring is a key to self-control
o Exercising self-control seems to deplete a crucial resource that is then no longer available to help a consumer exert self-control on other tasks – ego depletion.
• The Elaboration Likelihood Model
i. Persuasion refers to an active attempt to change individual attitudes.
• The ELM has been proposed to explain how persuasion works
• The ELM describes how individual consumers process new information via different routes, depending on the personal relevance of the information
 message-processing involvement (high or low)
 argument strength (strong or weak)
ii. Central
• high involvement with product/message/decision
• strong attention focused on factual information and central, product-related features
iii. Peripheral
• low involvement with product/message/decision
• limited attention focused on peripheral, nonproduct-related features and feelings
i. Persuasion
refers to an active attempt to change individual attitudes.
• The ELM has been proposed to explain how persuasion works
• The ELM describes how individual consumers process new information via different routes, depending on the personal relevance of the information
 message-processing involvement (high or low)
 argument strength (strong or weak)
ii. Central
• high involvement with product/message/decision
• strong attention focused on factual information and central, product-related features
iii. Peripheral
• low involvement with product/message/decision
• limited attention focused on peripheral, nonproduct-related features and feelings
5. Three Hierarchy of Effects Model -
The Standard Hierarchy
The Low-Involvement Hierarchy
The Experiential Hierarchy
• The Standard Hierarchy
o emphasizes a problem-solving process based on need-act upon knowledge and feelings
o order of consumer responses:
 cognition, affect, then behavior (learn-feel-do)
• components of cognition:
o awareness
o knowledge
• components of affect:
o liking
o preference
• behavior: intention to buy and actual behavior.
• The Low-Involvement Hierarchy
o applies to low-involvement purchase situations were both motivation and received risk are low
o order of consumer responses:
 cognition
 behavior
 affect (learn-do-feel)
• most common when the product is inexpensive
o Quick-Choice Model
 No role for emotion or affect
 Impulse purchases
• The Experiential Hierarchy
o stresses the importance of consumers’ emotions
o applies to situations in which consumer are often highly involved in decision making
o order of consumer responses:
 affect
 Behavior
 cognition (feel-do-learn)
• 4 Choice Models
i. Consumer Heuristics:
ii. Satisfying Decisions
iii. Elimination by Aspects
iv. Prospect Theory
i. Consumer Heuristics:
a. A heuristic is a general rule of thumb that consumers use to simplify a decision task.
b. In one variety of heuristics, a low rating on a single attribute can eliminate a brand from consideration.
c. High ratings on other attributes do not compensate for low ratings on the first attribute
d. Shortens evaluation process
ii. Satisfying Decisions
a. Consumers often make purchase decisions in situations in which information about some alternatives is not available.
b. Consumers choose an alternative that satisfies their most important goals. Other goals might be sacrificed.
c. Compared to the expected utility theory, the satisfying theory is more descriptive of how consumers actually make choices.
d. Trying to satisfy the most imp goal
iii. Elimination by Aspects
a. Consumers could reject alternatives by starting with the most important attribute first, but this does not have to be the case. A consumer could also start with any random attribute.
b. Elimination is a consumer choice strategy that is adopted to deal with the information overload that exists in many markets.
c. The car example..jaguar and Mercedes..price and option/design
iv. Prospect Theory
a. Builds on the notion that consumers have to give up something in order to get something back in the marketplace; proposes that people’s decisions are based on how they value the potential gains and losses that result from making choices.
b. Losses are more effective then gain, segregation and integration, diminishing marginal utility
c. Examines how consumers value potential gains and losses that result from making choices :
i. Individual’s value function – reflects consumers’ anticipation of the pleasure/pain associated with a specific decision outcome
ii. Gains/losses are calculated with respect to some reference point
iii. value function for gains is quite different than that for losses
d. Consumers resist giving up things that they already own – endowment effect
e. Decision framing – the manner in which the task is defined or represented
1. Risk averse versus Risk seekers
• List 5 Classes of Situational Influences –
1. Physical surroundings
2. Social surrounding
3. Temporal perspective
4. Task definition
5. Antecedent states
1. Physical surroundings
1. Physical surroundings include geographical and institutional location, decor, sounds, aromas, lighting, weather, and visible configurations of merchandise or other material surrounding the stimulus object.
a. Physical
situation
b. Shopper
perceptions
c. Adaptive
strategies
d. Postpurchase
responses
2. Social surrounding
2. Social surroundings considers examples like other persons present, their characteristics, their apparent roles, and interpersonal interactions occurring.
3. Temporal perspective
3. Temporal perspective may be specified in units ranging from time of day to seasons of the year.
4. Task definition
4. Task definition includes an intent or requirement to select, shop for, or obtain information about a general or specific purchase.
5. Antecedent states
5. Antecedent states are momentary moods or momentary conditions
• 3 Types of Decision Making -
i. Low Involvement
ii. Limited Decision Making
iii. Extended Decision Making
 Internal vs. External Search –
1) Internal Search: relevant information from long-term memory
2) External Search: external information relevant to solving the problem.
• 3 Types of Awareness Set –
1. Evoked Set – Alternatives given consideration
2. Inert Set – Backup Alternatives
3. Inept Set – Avoided Alternatives
• Five Types of Decision Rules Used by Consumers –
o Conjunctive:
o Disjunctive:
o Elimination:
o Lexicographic:
o Compensatory:
o Conjunctive:
o Conjunctive: Select all (or any or first) brands that surpass a minimum level on each relevant evaluative criterion
Disjunctive:
o Disjunctive: Select all (or any or first) brands that surpass a satisfactory level on any relevant evaluative criterion.
o Elimination:
o Elimination: Rank the evaluative criteria in terms of importance and establish by-aspects satisfactory levels for each. Start with the most important attribute and eliminate all brands that do not meet the satisfactory level. Continue through the attributes in order of importance until only one brand is left.
o Lexicographic:
o Lexicographic: Rank the evaluative criteria in terms of importance. Start with the most important criterion and select the brand that scores highest on that dimension. If two or more brands tie, continue through the attributes in order of importance until one of the remaining brands outperforms the others.
o Compensatory:
Select the brand that provides the highest total score when the performance ratings for all the relevant attributes are added (with or without importance weights) together for each brand.
• Satisfaction Disconfirmation Model
 Satisfaction is a judgment of a pleasurable level of consumption-related fulfillment --
 Overfulfillment - results in unexpected pleasure
 Underfulfillment - results in “ it wasn’t so bad”

 Dissatisfaction is a judgement of unpleasant level of consumption-related fulfillment.
• Expectancy-Disconfirmation Model of Satisfaction
1) disconfirmation of pre-consumption expectations is the key influence on consumer satisfaction.
 Positive disconfirmation: performances exceed expectations
 Negative disconfirmation: expectations are not met
• Assimilation & Contrast
1) Assimilation effect – individuals are reluctant to acknowledge discrepancies from previously held position, and therefore rationalize away discrepancies (from expectations).
2) Contrast effect – exaggerate differences between expectations and performances.
• Ceiling floor effect:
 Very high expectations (ceiling) are more likely to result in negative disconfirmation and very low expectations (floor) in positive disconfirmation.
1) Profiles of Disposal –
 Discard it:
 Sell it:
 Donate it:
 Gift it:
 preinheritance:
 Store it:
 Recycle it:
Discard it:
 Discard it: simply throwing something away
• waste-making society: one in which people’s first thought is to discard rather than reuse or recycle unwanted possession.
 Sell it:
 Sell it:
• swap meets: consumers get together in informal markets to buy or trade their used goods
• Electronic flea markets: Internet auction sites
 Donate it:
 Donate it: giving things away
 Gift it:
 Gift it: form of consumer acquisition
 preinheritance:
 preinheritance: living bequests of household resources
 Store it:
 Store it: storage is a basic consumer necessity
• time-marked goods remind people who they once were, invite comparison with who they are now, and highlight how they have changed
 Recycle it:
 Recycle it:
• close-loop manufacturing, where simplified recycling is built into products from the design phase on
• Types of Innovation –
o Continuous innovations:
o Dynamically continuous innovations
o Discontinuous innovations:
Continuous innovations:
o Continuous innovations:
 require minor changes in user behaviors (presumably in an area of behavior that is unimportant)
o Dynamically continuous innovations:
o Dynamically continuous innovations:
 require either a major change in an area of behavior that is relatively unimportant to the individual or a minor change in an area of behavior that is very important to the user
o Discontinuous innovations:
 entail major changes in behavior in an area of importance to individual or group
• Trickle Down Theory –
o Suggests that status rivalry between social groups acts as a force for innovation
 Imitation - low-status groups seek to establish new status claims by adopting the products, services, and ideas of higher-status groups.
 Differentiation - high-status groups embrace new products, services, and ideas to distinguish themselves from the low-status groups.
• Multi-Step Model –
o New ideas flow from the mass media to influential consumers who, in turn, pass these ideas on to others who are more passive in information seeking.

Mass Media--> Influential Consumers --> Passive Consumers
• Adopter Categories
o Lead Users
o Innovators
o Early Adopters
o Early Majority
o Late Majority
o Laggards
Lead Users
o Lead Users are users whose current needs become general in a market in the future.
Innovators
o Innovators are the first to adopt an innovation and are characterized as venturesome, less risk averse, younger, have higher incomes and are better educated.
Early Adopters
o Early Adopters are opinion leaders within local reference groups.
Early Majority
o Early Majority are deliberative decision makers.
Late Majority
o Late Majority are skeptical consumers, doubtful of the benefits of adoption.
Laggards
o Laggards are traditionalists, locally oriented in terms of networks and social horizons, and relatively dogmatic in beliefs and values
• Factors Influencing the Diffusion Process
o Innovation characteristics –
o Personal characteristics –
o Environmental factors
o Cultural and social context factors –
o Social influence factors –
o Innovation characteristics –
• Relative advantage
• Compatibility
• Trialability
• Observability
• Complexity
o Personal characteristics
 Pro-innovation bias
• predisposition to consume new and novel products, services, experiences, and the like.
 Innovation resistance
• a preference for existing, familiar products, and behaviors over novel ones.
 Psychological equilibrium
• reflects the human desire for balance, order, and consistency between beliefs and behaviors
o Environmental factors –
 Ecology - e.g., terrain, climate, and population density
 Economic conditions and market structures
 Demand density - the distribution and number of consumers who desire and can afford a product.
o Cultural and social context factors –
 Social system values and traditions
• Openness to innovation.
• Attitudes toward variety and newness
• Value of ideas.
 Innovation’s characteristics (e.g., compatibility) with social system values.
 Interdependent-communitarian vs. individualistic traditions
o Social influence factors –
 Trickle down theory
 Two-step flow model of communications
 Multi-step media flow model of communications
• CARU -
CARU = Children’s Advertising Review Unit
• COPPA
The Protection Act (COPPA): Children’s Online Privacy Protection Act