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Consumer Behavior Ch. 1-6
Midterm Review
50
Marketing
Undergraduate 3
10/26/2008

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Term
consumer behavior
Definition
ongoing process; exchange; utilitarian/hedonic
the study of the processes involved when individuals or groups
Select, Purchase, Use, or Dispose of
Products-Services-Ideas-or-Experiences
to satisfy
Needs & Desires
Term
consumer
Definition
a person who identifies a need or desire,
makes a purchase, and then disposes of the product during 3 stages in the consumption process
Term
3 stages in the consumption process
Definition
1. PrePurchase Issues
2. Purchase Issues
3. PostPurchase Issues

(consumers perspective v. marketer's perspective)
Term
Domain of Consumer Behavior (Circle of consumption)
Definition
-- production -- acquisiton -- consumption -- disposal --

->time-based
->have to figure factors that influence each stage
Term
importance of consumer behavior to marketing strategy
Definition
1. satisfaction of needs and corporate sustainability
2. importance of taking a consumer focus
-----
development of marketing strategy:
1. segmentation, targeting, positiong
2. relationship marketing
Term
customer centric marketing
Definition
emphasizes understanding and satisfying the
needs,
wants,
& resources of individual consumers and customers
----
perspective -- orientation -- organization
Term
development of marketing strategy (part 1)
Definition
1. segmentation
2. targeting
3. positioning --> 4 P's (product, price, promotion, place)
Term
development of marketing straegy (part 2)
Definition
1. relationship marketing
-->consumer retention; building relationship with consumer

2. database marketing -->customer databases, CRM
Term
who benefits from the study of consumer behavior?
Definition
1. marketing managers
2. ethicists & advocacy groups
3. public policy makers & regulators
4. Consumers
Term
is marketing a necessary evil?
Definition
manipulation of consumers
a. creation of artifical needs
-->(need vs. want // biological vs. societal)
-->marketers simply recommend ways to satisfy needs; basic objectice is to create awareness that needs exist, not to create needs)
b. do we need advertisers & marketers?
-->products are designed to meet existing needs, & advertising only helps communicate their availability; advertising is important source of consumer info)
c. do marketers promise miracles?
-->advertisers simply do not know enough about ppl to manipulate them
----
public policy & marketing
--> us gov't have established many federal agencies to oversee consumer-related activities
---->The Food & Drug Administration; Securities & Exchange Commission ...
Term
perception process
Definition
stimul (5 senses)
-->sensation (sensory receptors; attention)
--->meaning (interpretation & response)
----->perception
Term
the role of the 5 senses in marketing
Definition
have to make sure the senses are in touch with the target market
--smell/sound significantly impacts a purchase
-->what effect does [x] have on [x] ...
--->how did they measure? (pace of instore traffic, sales volume, awareness)
---->results ... (influence on pase, spending, or no difference)

vision - smell - sound - touch - taste

-->invokes different emotions for different people due to symbolic meanings or individual (past/cultural) experiences
-->marketers & advertisers have to be aware of how strongly the 5 senses control a consumer behavior, thus if consumer behavior is studied-marketers are able to find out what should be honed in on
Term
absolute threshold
Definition
the smallest level that an individual is able to hear
Term
differential threshold
Definition
just noticeable difference" b/w 2 stimuli
Term
weber's law
Definition
the amt. of change required for the perceiver to notice a change is systematically related to the intensity of the original stimulus
Term
subliminal
Definition
perception occurs when the stimulus is below the level of the consumers' awareness
-->how do consumers choose what to pay attention to?
Term
why do we notice some things and not others?
Definition
1. attention
2. personal selection factors
---perceptual vigilance, perceptual defense, & adaptation
3. stimulus selection factors: how do consumers chose what to pay attention to? (weber's law)
--->size, color, position, novelty
Term
how do we interpret what we notice?
Definition
1. gestalt psycology --> totality/ overall picture
2. principle of closure -- fill in blanks based on past experiences
3. principle of similarity - group together objects of similar characteristics --- ex. brand extension
4. figure ground principle -- one part of stimulus will dominate while others recede into the background
Term
perceptual vigilance
Definition
-tend to notice things that are interest to you
-tend to ignore things that aren't
Term
perceptual defense
Definition
-if it is in line with the way we feel we tend to embrace it
-if its agasint, we tend to ignore that idea
Term
adaptation
Definition
-if u see something/are exposed to something too frequently, u tend to get used to it and not notice nemore
-advertising: have to c an advertisemetn 3 times to be able to recall/recemmeber it; the more u c it, the more u get used to it
Term
implications of perception for marketing
Definition
help us understand positioning and coming up with a positioning strategy
-----
positioning strategy
-->fundamental part of a company's marketing efforts as it uses the differen elements of the marketing mix (product-price-placement-promotion, etc) to influence consumers' interpretation of its meaning
Term
perceptual map
Definition
lays out different dimensions that underlay a product
ex: price vs. quality
-----
benefits:
1. see competition
2. status of ur advertising-good/bad? - do u want to be perceived that way?
3. market opportunities
4. helps to understand positions and consumers' perceptions
Term
relevant learning theories for marketing
Definition
classical conditioning & intrumental (operant) conditioning
Term
classical conditioning
Definition
-->pavlov
-->repetition
-->stimulus generalization (family branding, product line extension, liscensing, look-alike packaging)

pavlov - dog: learns to associate a 'bell' with 'go make' thru repition--after the conditioned & unconditioned stimuli have been paired together a number of times
Term
instrumental (operant) conditioning
Definition
we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes
-->reinforcement of consumption
----skinner & circus animals
----pos & negative reinforcement
----thank you cards
----frequency marketing

+, -, punishment, extinction
Term
cognitive learning theories
Definition
stress the importance of internal mental processes
views ppl as problem solvers who activly use the info from the world around them to master their environments
(in contrast to behavioral theories)
Term
memory process
Definition
1. encoding (info is placed in memory)
2. storing (associative networks; info is retained in memory)
3. retreiving (info stored in memory is found as needed; retrieval is influenced by age, first mover, descriptive brand names, pictures/sounds...)
Term
motivation
Definition
motivation:
1. activation of need--utilitarian, hedonic
2. satisfaction of need

strength
1. biological: drive theory (by needs)
2. learned: expectancy theory (by expectations; marketer=manages expectation
direction
1. valence
--motivational conflict:
approach-approach; approach-avoidance; avoidance-avoidance
Term
maslow's hierarchy of needs
Definition
1. self-actualization
2. ego needs
3. belongingness
4. safety
5. physiological
Term
consumer involvement
Definition
a person's perceived relevance
of the object on their inheritent needs, values, and interests
--perceived importance
--motivation to process info
--levels of involment

<------------------------------>
simple processing -- elaborative
Term
value
Definition
enduring beliefes that a specific mode of conduct or end-state of existence is personally or socialy preferable to an opposite or converse mode of conduct or end-state of existence

a belief upon which one acts by preference
Term
self-concept
Definition
components of the self:
1.its content
2. its positivity or negativity
3. its intensity
4. its stability over time
5. its accuracy


... products that shape the self
Term
types of consumer involvement
Definition
1. product involvement
2. message-response involvement (when the consumer is so involved with the product that they, freelancers or fans, process marketing communications
3. purchase-situation involement (differences in motivation when ppl buy the same product but in different contexts)
Term
brand relationships
Definition
1. interdependance
2. self-concept connection
3. nostolgic connection
4. commitment
5. love/passion (ex. harley davidson)
6. intimacy
Term
oliver's definition of loyalty
Definition
a deeply held commitment to rebuy or repatronize a preferred product-service...
Term
theory of cognitive dissonence
Definition
based on the premise that ppl have a need for order and consistency in their lives & that a state of dissonance (tension) exists when beliefs or behaviors conflict with one another
Term
body image
Definition
a consumer's subjective evaluation of his physical self
Term
body cathexis
Definition
a person's feelings about his or her body

cathexis -- emotional significance of some object or idea
Term
ideals of beauty
Definition
how we evaluate ourselves in terms of how beautiful we think we are
...impacted by whats glorified in society & media
...impacted by culture & types of ppl in a culture .. western ideal of beauty..
Term
ideals of beauty over time
Definition
changes of ideals can follow thru advertising

our culture communicates these standards subtly & not subtly
Term
Freudian Theories of Personality
Definition
much of one's adult personality stems from a fundamental conflict b/w a person's desire to gratify her physical needs and the necessity to function as a responsible member of society

we r ruled by 4 conscious levels:
1. Id
(immediate gratification)
(opeartes according to:
2. Pleasure Principle
(our basic desire to max pleasure and avoid pain guides our behavior)

3. Superego
(works to prevent the id from seeking selfish gratification)

4. Ego
(mediates/works for a balance between the Id & the SuperEgo)
Term
Neo-Freudian Theories
Definition
Karen Horney
1. compliant (agreeable with others)
-->name-brand produts
2. detached (moving away)
-->tea-drinkers
3. aggressive (moving against others)

Carl Jung
1. Analytical Psycology
(archetypes -- result of our personality)
2. collective unconscious (our past)
-->cumulative experiences of past generations shape who we are today
--->we each share a collective unconscious --> create archetypes (univerally recognized ideas and behavior patterns)


archetype approach to marketing -- use the achetype/shadow model to identify whether a brand has a sick or healthy personality (healthy-the archetypes overwhelm their corresponding shadows...sick-1 or more shadows are dominant, then it u have to take action to guide brand to a healthier personality, like an ill person)
Term
specific traits relative to consumer behavior
Definition
1. innovativeness
(degree to which a person likes to try new things)

2. materialism
(amt of emphasis he places on acquiring and owning products)

3. self-consciousness
(degree to which he deliberatly monitors and controls the image of the self that he projects to others)

4. need for cognition
(degree to which he likes to think about things and, thus, by extension, expends necessary effort to process brand info)

5. empathy
(--cause related marketing)
Term
trait theory
Definition
NEOPI-R--Big 5
-->aimed at looking at which traits define u ... extro/introverted? independent or passive?...

focuses on the quantitative measurment of personality traits
Term
VALS2 Segmentation system
Definition
"the values & lifestyles system"

certain lifestyle indicators such as "i like a lot of excitement in my life" were better predictors of purchase behaviors than the degree to which a person agreed or disagreed with a social value
Term
VALS2 Framework
Definition
vertical: resources (income, edu, energy levels, eagerness to buy)
ideals - purchase based on a belief system, not what others may think

achievment - more competitive - take into acct what peers will think about decisions and how itll reflet them

self-expression--more concerned with the emotional aspects of purchases & the satisfaction they'll receiver

horizontal: self-orientation
(ideals, achievement, self-expression)
Term
geodemography
Definition
links consumer data with geographic variables
-use clutter analysis (helps find out different groups who are similar to each other within the group)
-link purchase info with geographic info
-application:
PRIZM
---US zip code classification into 62 categories.
---ethnic, economic, product consumption & lifestlye info combined to form zip quality or clusters
--helps with:
-direct-mailing targets
-allocation
-customized advertising
-cross-selling
Term
attitude
Definition
predisposition to evaluate an object or product positively or negatively
Term
functional theory of attitude
Definition
to explain how attitudes facilitate behavior (Katz)

1. utilitarian function
(reward/punishment; we develop some attitudes twrds brands based on whether/not it provides pleasure or pain)
(ads that stress straightforward product benefits 'you should drink coke just for the taste of it' sppeals to utilitarian function

2. value-expressive function
3. ego-defensive function
4. knowledge function
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