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91 Cards in this Set

  • Front
  • Back
Consumer Behavior
-Responses to products, services and promotions.
-Keep focus on consumers (talk to them like theyre your friends)
3 types of Consumer Responses to Ads, Products and Services
-Affective
-Cognitive
-Conative
Affective
Feelings, moods, attitudes we experience in response to products
Cognitive
Beliefs, opinions attitudes and intentions pertaining to products and services
Conative
Actions involved in obtaining, using, and disposing of products or services
Personal Variables
Dimensions that are internal to a specific individual. (intelligence, personality, interests, hobbies, opinions and preferences)
Situational Variables
External, environmental variables that provide the context in which behaviors are performed.
-Include the 4 p's - Product, Price, Place and Promotion.
Positive Correlation Relationship
As one variable increases, the other also increases. (advertising increases, sales increases)
Negative Correlation Relationship
As one variable increases, the other decreases (as advertising decreases, sales increase)
Zero Correlation Relationship
There is no systematic relationship between two variables. Anything can happen.
Causal Relationship
There is a correlation between two variables and one variable influences the other, but not vice versa.
(an increase in advertising may influence an increase in sales but sales does not directly produce a change in advertising).
If there is a Causal Relationship between two variables...
(1) the two variables must be correlated, (2) the cause must precede the effect, and (3) the effects of other variables must be controlled or ruled out.
Confounding Variables
Two variables do not always exist in isolation. A large number of other variables always impinge on any two variables in which we happen to be interested, such as advertising and sales.
Independent Variable
The antecedent or causal variable.
Dependent Variable
The consequence of effect, (it is dependent on the independent variable)
Random Assignment
-In an experiment, subjects conditions ensure that individual differences among subjects (personalities, different levels of knowledge on the product, different beliefs and attitudes) do not influence results.
-Randomization cancels the differences out.
-This experiment only has two conditions (ad or no ad)
Attention
Bringing information into conscious awareness through perception (seeing, hearing, smelling, tasting, and feeling).
Comprehension
The ability to learn the meaning of new information by relation it to old information stored in memory.
What must occur in order for memorization to occur?
Comprehension and Attention
Limits of Attention
Consumers attend to a very small fraction of the marketing communications to which they are exposed and that is available in the marketplace.
Miller's Magic Number 7
People can attend to seven (+/- 2) units, or pieces of information at one time. Units can very in size.
-Small units can be letters, words, numbers, ideas.
-Large units can be a string of letters, words or ideas.
Attention Intensity
The amount of information people can attend to, can vary from five to nine units.
-Amount can vary at a particular moment if prior knowledge or expertise is exists.
-Larger chunks leads to a huge process advantage.
Arousal
-Another factor that influences attention intensity.
-It is defined as a state of wakefulness or alertness.
Low levels of Arousal
People are drowsy or nearly asleep.
Moderate Levels of Arousal
The normal levels of alertness that occur during a normal course of a day.
High Levels of Arousal
Occur when viewing an exciting event, such as movies, concerts, and sports games or the consumption of caffeine roller-coasters etc...
Inverted U shape related to Attention and Arousal
When arousal is low or high we are less attentive, when arousal is moderate is when we are most attentive.
Selective Attention
The allocation (distribution) of cognitive capacity (is limited).
Cognitive Capacity
The ability to attend and thing about information.
Salient stimuli
Draw attention involuntary.

(ex.) A quiet commercial during the superbowl. Everythings loud then all of the sudden, all attention is directed towards the tv's lack of sound.

-Grab the attention of all people some of the time.
Vivid stimuli
-Emotionally interesting
-Concrete and imagery provoking
-Proximate in sensory, temporal, or spatial way.

-Grab the attention of some people all of the time.
Sensory Proximity
-Firsthand (proximal) verses second hand distand infomation.

-Information perceived by our own senses is more vivid than when relayed by another person.
Temporal Proximity
Refers to how recently an event occured.

-Information that occurred recently is more vivid than past occurrences.
Spatial Proximity
Refers to the location of the events.

-Events that occur where we live now are much more vivid than events that occur overseas.
Comprehension and Belief
The two are inseparable, initially we believe everything we see and hear. Rejecting an idea comes later, maybe seconds later.

-Believing is as easy and automatic as comprehension.
Pragmatic Inferences
Everyday assumptions about claims that are literally true but figuratively false.

-"Brand X pills may relieve pain" is true because "may" means "maybe yes" or "maybe no."
Comparison Omission
Misleading procedure

-Brand X gives you greater gas mileage, is literally true because it gives greater gas mileage than other substances (sugar, water)

-Potentially misleading because many consumers are likely to assume that Brand X gives you greater mileage than many other brands of gasoline, even though its not stated
Piecemeal Data
(ex.) - "Brand X has more headroom than Mercedes, more leg room than Cadillac, and more trunk space than a BMW."

Even if these are true, the overall impression made by the individual statements can be misleading.
Juxtaposition of Imperatives
(ex.) "Be popular! Brush with Ultra Brite!"

-This implies that you will be more popular if you use this brand even though it is not stated directly.
Affirmation of the Consequent
"if p, then q" are often misinterpreted as meaning "if q, then p."

(ex.) "Women who look younger use Oil of Olay" is misconstrued as "If women use Oil of Olay, then they will look younger."
Short Term Memory
(Capacity, Duration, Information Loss, Coding)
7 +/- units
18 seconds
rehearsal failure
acoustic (sound related)
Long Term Memory
(Capacity, Duration, Information Loss, Coding)
Unlimited
permanents
retrieval failure
semantic (meaning related)
Encoding-Specificity Principle of LTM
Memory performance is better when the contextual cues present during encoding and during retrieval are the same (as apposed to different).
Encoding Process
The process of storing STM information into LTM.
Node
A concept, idea or piece of information stored in memory.
Associations
A node or idea is connected to other nodes by links.
Associative Network
All pieces of general knowledge are interrelated with other pieces.
Unaided Recall
Nothing is provided, all information must be retrieved by the student
Aided Recall
Clues are giving, both retrieval of memory and choosing the correct information is necessary.
Recognition
One step, deciding if the answer is correct.
Associative Interference
It takes more time for activation to spread as the number of nodes in a network path increases. The rate at which activation spreads across a particular node increases as the number of related concepts linked to that node increases.
Priming Concept
When a target and the primed concept are similar, perceived similarities are exaggerated if the target is ambiguous. When the targer is unambiguous or when the primed concept is extreme or unusual, perceived differences are exaggerated.

After a movie with attractive actors, one may look at their spouse as less attractive in comparison.
Negative Brand Association and Rumor Control
When consumers get a negative idea in their head about a company they become primed and they associate the product with a negative attribute.

Surveys are used to change the outlooks of the consumers.

(ex.) McDonalds uses worm meat for their burgers. Consumers associate worms with McDonalds and business plummeted.
Media Clutter
As consumers are exposed to large amounts of negative mass-media advertising, attention in the product decreases.
Explicit Memory
Memory serves as an object of attention. Recognition, aided recall, or free recall are used.
Implicit Memory
Memory is used as a tool. We are not aware that we are using memory, and we do not realize that we are being influenced by prior experiences and memories.
Source Amnesia
When we are unaware of where a feeling or belief comes from.
Non Evaluative Judgement
Beliefs that consumers have about a product.

Belief scales are continuous,because belief dimensions in peoples heads are also continuous.

A Belief implies a perceived relationship between two concepts or ideas.
Descriptive Beliefs
Based on direct firsthand experience with a product (what we see and hear with our own eyes).
Inferential Beliefs
Beliefs that go beyond the information giving or the information that is available from firsthand or secondhand sources.
Evaluative Judgement and its two main components.
An attitude.

Direction - good/bad, positive/negative.

Extremity - slightly good, somewhat good, fairly good, very good, or extremely good
Zanna and Rempel's Model
Attitudes can be formed on the basis of Beliefs (cognitions), Affect (feelings, moods, and emotions), Behaviors (actions), or some combination of beliefs, affects, and behaviors.
Representativeness Heuristic
A common fallacy wherein people determine the probability or frequency of an event based on assumptions or past experience.

(ex.) Since I've only met wealthy people from Connecticut, I make the false assumption that all people from Connecticut are wealthy.
Availability Heuristic
To judge frequency and the probability of events

(ex.) People view an incident where a boy managed to get his shoe lace caught in a escalator and breaks his leg, since this is repeatedly brought to the attention of the public, people think that the probability of this happening to them is very high.
Satisfaction Judgements
Comparison between two products, the one that was chosen and the one which was rejected, if the consumer feels he got a better deal he is then satisfied.
Attributions
Causal inferences concerning why a product performed worse than expected.
Consideration Set, # of brands available, # in the consideration set, and choice
A group of products considered when making a purchase.

Ofter 12 brands available

1 (Loyal) to 9 (7+2)

1 brand
Part list Cueing
When consumers are making a decision, make a list (including your brand) of partial brands to reduce the number retrieved from memory. Consumers are more likely to buy your product if your brand is brought to attention.
Attraction Effect
Adding a similar but inferior product of the same brand to a product line increases the attractiveness of the original. It highlights the price/quality relationship.
Compromise Effect
Middle brands are chosen because the competition are to the extremes. Super low price - not good
Middle price - safe
High price - too intense
Trade-off Contrast Effect
Similar to the attraction effect except that trade offs (as opposed to single attributes) are compared across brands.

Computer example
Heuristics
Enable consumers to make decisions quickly and easily
The Attitude Heuristic
Consumers already hold an attitude toward all brands in a consideration set.

(ex.) "I like sony, so ill buy sony."

Attitudes need to be stored in memory
Frequency of Good and Bad Features Heuristics
Counting the number of good features and then bad features and choosing the product with the most good features
Preference Judgements
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Expectancy Disconfirmation
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Attribute Based Heuristics and 2 kinds
Consumer is very specific when researching and choosing a new product.

Between Alternatives and With-in Alternatives
Between Alternatives
Attribute based.

Many brands are compared one attribute at a time.

(ex.) Laptops with Microsoft word include Dell, HP, Mac...
With-in Alternative Heuristic
Attribute Heuristic

When many attributes are examined one brand at a time.

(ex.) Brand 1 offers all of this and Brand 2 offers all of this.
Attitude Based Heuristics
Involves consumers overall impressions on a product
Lexicographic Heuristic and which alternative
Choose a brand based on most important attribute (price, reliability, brand, safety...). If the two attributes are the same between two brands, the next attribute is then examined.

Between Alternative and it is Attribute based.
Elimination by Aspect and which alternative
Choose an attribute and eliminate brands that don't meet a minimum cut off point. Process is repeated until one choice remains (design, safety,...).

(ex.) When buying a car, cars less than $20k are not even considered.

Between Alternative
Conjunctive Heuristic and which alternative
Set a minimum acceptable standard for all attributes and choose the first product that meets the standard of all. One bad attribute can eliminate an alternative.

Within Alternative

(ex.) When choosing an airliner, consumers make their decisions based on layovers, meal offerings, aisle seat,...).
Disjunctive Heuristic and which alternative
Opposite to Conjunctive, A fairly high cut off value for each attribute (location, price, variety) is set. One good attribute can save an alternative.

Within Alternative
Choice Strategy Determinants
Motivation and Opportunity

Both have to be high to invoke effort.
Exposure Control
Avoiding unwanted messages, most people do not want to be exposed to ads.
Message Learning Approach
Effective persuasive communications.
(Advertisements, point-of-purchase displays, salesperson claims, telemarketing messages, propaganda films and leaflets, or any message designed to persuade.)