Term
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Definition
| Perception is a process that uses previous knowledge to compile and interpret the stimuli that are registered by our senses. |
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Term
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Definition
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Term
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Definition
| Exposure occurs when a stimulus is placed within a person’s relevant environment and comes with range of their sensory receptor nerves |
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Term
| What are types of exposure? |
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Definition
1. Selective Exposure
- The highly selective nature of consumer exposure is a major concern for marketers, since failure to gain exposure results in lost communication and sales opportunities.
2. Voluntary Exposure
- Although consumers often avoid commercials and other marketing stimuli, sometimes they actively seek them out for various reasons including purchase goals, entertainment, and information. |
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Term
| What are types of exposure? |
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Definition
1. Selective Exposure
- The highly selective nature of consumer exposure is a major concern for marketers, since failure to gain exposure results in lost communication and sales opportunities.
2. Voluntary Exposure
- Although consumers often avoid commercials and other marketing stimuli, sometimes they actively seek them out for various reasons including purchase goals, entertainment, and information. |
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Term
| What are the factors determine attention? Know each in detail |
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Definition
Attention occurs when the stimulus activates one or more sensory receptor nerves and the resulting sensations go to brain for processing.
Consumer attention is selective
Attention is determined by three factors:
Stimulus Factors
Are physical characteristics of the stimulus itself
Such as: Ad size and color, shelf space ( slotting fees)
Individual Factors
Are characteristics which distinguish one individual from another
Motivation: drive state created by interest and needs
Smart banners: the words that you typed to search engines show up as banners
3. Situational Factors
Include stimuli in the environment other than the focal stimulus (such as package or ad) and temporary characteristics of the individual that are induced by the environment
Such as a crowded store, or time pressure
Clutter: # of displays make you confused, less attention
Program involvement: how interested in you are |
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Term
| What is adaptation level theory? |
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Definition
| Adaptation level theory suggests that if a stimulus doesn’t change over time we habituate to it and begin to notice it less. |
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Term
| What are the general stimulus factors? |
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Definition
Size
Intensity
Attractive Visuals
Color and Movement
Position
Isolation
Format
Contrast and Expectations
Interestingness
Information Quantity |
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Term
| What are the three characteristics of interpretation? Know each in detail and give some examples. |
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Definition
Individual Characteristics
Traits
Physiological and psychological traits drive our needs and desires. These traits influence how a stimulus is interpreted
Situational Characteristics
The situation provides a context within which the focal stimulus is interpreted.
Such as time pressure and mood.
The Contextual cues present in the situation play a role in consumer interpretation independent of the actual stimulus. Such as colors.
Stimulus Characteristics
Consumers react and interpret the stimulus such as : Traits: color, shape, size. “Red is a Coca Cola color!”
Organization: Physical arrangement of the stimulus objects
Proximity: stimuli positioned close together, so perceived as belonging the same category.
Ambush marketing: implies that an association is related with an event, when it is not. Ex: heavy advertising during the event. |
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Term
| What is the difference between cognitive interpretation and affective interpretation? |
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Definition
Cognitive interpretation is a process whereby stimuli are placed into existing categories of meaning.
Affective interpretation is the emotional or feeling response triggered by a stimulus such as an ad. |
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Term
| Why marketers are so interested in knowing consumer perception? Why is perception process very important? |
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Definition
Retail Strategy
Brand Name and Logo Development
Linguistic Consideration
Branding Strategies
Logo Design and Typographics
Media Strategy
Advertisements
Package Design and Labeling |
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Term
| Imagine that you are a marketing manager in a firm. How would you try to influence your consumer by using tools perception process (exposure-attention-interpretation) |
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Definition
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Term
| What is short term memory and what are the characteristics? |
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Definition
Short-term Memory (STM) a.k.a. working memory
is that portion of total memory that is currently activated
People use their STM to hold information while they analyze and interpret it.
STM is Short Lived
Consumers must constantly refresh information through maintenance rehearsal or it will be lost.
STM has Limited Capacity
Consumers can only hold so much information in current memory.
Elaborative Activities Occur in STM
Elaborative activities are the use of previously stored experiences, values, attitudes and beliefs to interpret and evaluate information in working memory.
Serve to redefine or add new elements to memory and can involve both
Concepts: abstractions of reality that capture the meaning of an item
Imagery: sensory representations of ideas, feeling and objects. Such as recall of the taste, smell |
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Term
| Why marketers are very interested in influencing short term memory of the consumers? |
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Definition
| Products and brands have to get into consumer’s memory and they have to be recalled when needed in order to be successful. |
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Term
| What are the two different types of long term memory? |
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Definition
Semantic memory is the basic knowledge and feelings an individual has about a concept.
Such as Acura in consumer's memory is a luxury car.
Episodic memory is the memory of a sequence of events in which a person participated.
Such as first date, graduation
Marketers are interested in what information in the memory is stored also HOW!! |
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Term
| Why marketers are very interested in influencing short term memory of the consumers? |
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Definition
| Products and brands have to get into consumer’s memory and they have to be recalled when needed in order to be successful. |
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Term
| What are the two different types of long term memory? |
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Definition
Semantic memory is the basic knowledge and feelings an individual has about a concept.
Such as Acura in consumer's memory is a luxury car.
Episodic memory is the memory of a sequence of events in which a person participated.
Such as first date, graduation
Marketers are interested in what information in the memory is stored also HOW!! |
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Term
| Compare and contrast operant conditioning and classical conditioning? Explain in detail. Give some examples. |
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Definition
Classical conditioning is the process of using an established relationship between one stimulus (music) and response (pleasant feelings) to bring about the learning of the same response (pleasant feelings) to a different stimulus (the brand).
Operant conditioning (or instrumental learning) involves rewarding desirable behaviors such as brand purchases with a positive outcome that serves to reinforce the behavior. |
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Term
| Define the two different levels of involvement. |
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Definition
High Involvement - consumer purchases with much caution and weighs alternatives heavily
Low Involvement - consumer puts little effort and time into making a purchase decision because of the low risk. |
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Term
| What are the types of cognitive learning? |
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Definition
Iconic Rote Learning: Learning a concept or the association between two or more concepts in the absence of conditioning
Vicarious Learning/Modeling: Observing others’ behavior outcomes. Ex: Suit-New Job
Analytical Reasoning |
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Term
| Define the two different levels of involvement. |
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Definition
High Involvement - consumer purchases with much caution and weighs alternatives heavily
Low Involvement - consumer puts little effort and time into making a purchase decision because of the low risk. |
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Term
| What are the types of cognitive learning? |
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Definition
| Iconic Rote Learning: Learning a concept or the association between two or more concepts in the absence of conditioning Vicarious Learning/Modeling: Observing others’ behavior outcomes. Ex: Suit-New Job Analytical Reasoning |
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Term
| Evaluate the different types of learning in high involvement and low involvement. Give some examples. |
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Definition
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Term
| How marketers can increase the strength of consumer learning |
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Definition
Strength of learning is enhanced by six factors:
Importance
Message Involvement
Mood
Reinforcement
Repetition
Dual Coding |
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Term
| What is comparative advertising? |
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Definition
| Comparative advertising is an advertisement in which a particular product, or service, specifically mentions a competitor by name for the express purpose of showing why the competitor is inferior to the product naming it. |
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Term
| What is the brand image? Explain the components of brand image. |
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Definition
Brand image refers to the schematic memory of a brand.
Components:
Perceived Product Attributes
Benefits
Usage Situations
Users
Manufacturer Marketer Characteristics |
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Term
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Definition
| is a decision by a marketer to try to achieve a defined brand image relative to competition within a market segment. |
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Term
| Why product positioning is very critical for firms? |
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Definition
Product repositioning refers to a deliberate decision to significantly alter the way the market views a product. This can involve
level of performance
the feelings it evokes
the situations in which it should be used, or
who uses the product |
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Term
| What is motivation? Define the two different types of motivation. |
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Definition
Motivation is the reason for behavior.
A motive is a construct representing an unobservable inner force that stimulates and compels a behavioral response and provides specific direction to that response.
Manifest
Latent |
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Term
| There are two different theories of motivation. Explain each in detail. |
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Definition
Maslow’s Hierarchy of Needs
A macro theory designed
to account for most human
behavior in general terms.
McGuire’s Psychological Motives
A fairly detailed set of motives used to account for specific aspects of consumer behavior. |
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Term
| Maslows hierarchy of needs |
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Definition
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Term
| McGuire’s Psychological Motives |
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Definition
Divide motivation to 4 Categories:
Cognitive preservation (ex. categorizing/attribution).
Cognitive growth (ex. problem-solving/individualize)
Affective preservation (ex. Ego defense/comfort)
Affective growth (ex. Belonging)
Each category varies on:
External-internal
Active-passive
Maintaining status quo vs. growth / improvement |
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Term
| What is cognitive dissonance? Explain in detail and give examples. How and why does cognitive dissonance occur? How people justify the cognitive dissonance? |
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Definition
The theory states that people have a natural motivational drive to reduce dissonance by changing their attitudes beliefs, and actions. By bettering understanding cognitive dissonance marketers can help the consumers shift their attitudes, beliefs, and actions in a companies favor.
Cognitive dissonance is when people have a contradicting thoughts or cognitions and typically change their attitude or behavior to justify and/or avoid the unpleasantness of a problem.
I experience cognitive dissonance after receiving a bad grade on a test because I like to think I studied enough but the test proves otherwise. I justify that by blaming the teacher or my roommates and feel better about it. |
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Term
| What are the two different types of personality approaches? |
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Definition
Multitrait Approach
The Five-Factor Model is the most commonly used by marketers and identifies five basic traits that are formed by genetics and early learning.
Single Trait Approach
Consumer Ethnocentrism
Need for Cognition
Consumers’ Need for Uniqueness |
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Term
| State the five personality factors in multitrait approach |
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Definition
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Term
| Explain consumer ethnocentrism need for cognition and consumers’ need for uniqueness, give examples. |
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Definition
Three example single personality traits:
Consumer Ethnocentrism
Reflects an individual difference in consumers’ propensity to be biased against the purchase of foreign products.
Need for Cognition (NFC)
Reflects an individual difference in consumers’ propensity to engage in and enjoy thinking.
Consumers’ Need for Uniqueness
Reflects an individual difference in consumers’ propensity to pursue differentness relative to others through the acquisition, utilization, and disposition of consumer goods. |
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Term
| What is locus of control? |
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Definition
Locus of control is a theory in personality psychology referring to the extent to which individuals believe that they can control events that affect them. Understanding of the concept was developed by Julian B. Rotter in 1954, and has since become an important aspect of personality studies.
Externally high means you can’t control the things around you
Internally high locus of control means you can control what you do |
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Term
| What are the characteristics of emotions? |
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Definition
Emotion is the identifiable specific feeling, and affect is the liking/disliking aspect of the specific feeling.
Emotions are strong, relatively uncontrolled feelings that affect behavior.
They are strongly linked to needs, motivation, and personality.
Unmet needs create motivation which is related to the arousal component of emotion.
Personality also plays a role, e.g., some people are more emotional than others, a consumer trait referred to as affect intensity. |
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Term
| Explain the dimensions of emotions. |
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Definition
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Term
| How marketing and consumer emotions are related? |
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Definition
Emotion in Advertising
Emotional content in ads can enhance attention, attraction, and maintenance capabilities.
Emotional messages may be processed more thoroughly due to their enhanced level of arousal.
Emotional ads may enhance liking of the ad itself.
Repeated exposure to positive-emotion-eliciting ads may increase brand preference through classical conditioning.
Emotion may operate via high-involvement processes especially if emotion is decision relevant. |
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Term
| What are the three components of attitudes? Define each in detail. Also, give examples. |
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Definition
1. Cognitive: Consumer’s beliefs about the product
CB is the most useful marketing class ever; CB is taught by competent instructors; CB covers a lot of material; CB tests are difficult.
A consumer may hold both positive beliefs toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled and stains papers). In addition, some beliefs may be neutral (coffee is black)
2. Affective : feelings or emotional reactions
CB makes me all warm and fuzzy; CB makes me happy from my head to my toes
Consumers also hold certain feelings toward brands or other objects.
3. Behavioral : what the consumer plans to do with respect to the object (e.g.buy or not buy the brand)
Tendency to respond in a certain manner toward an object or activity. |
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Term
| What are the differences between utilitarian and hedonic benefits of the products? Give examples for each. |
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Definition
Utilitarian benefits: functional, instrumental and practical benefits of consumption offerings.
Hedonic benefits: aesthetic, experiential, and enjoyment related benefits
Ex: Cell phone
Battery life , sound volume = utilitarian
Shape and color = Hedonic
Ex: Car
Fuel economy, safety = utilitarian
sunroof = Hedonic |
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Term
| What are the three components of attitudes? Define each in detail. Also, give examples. |
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Definition
1. Cognitive: Consumer’s beliefs about the product
CB is the most useful marketing class ever; CB is taught by competent instructors; CB covers a lot of material; CB tests are difficult.
A consumer may hold both positive beliefs toward an object (e.g., coffee tastes good) as well as negative beliefs (e.g., coffee is easily spilled and stains papers). In addition, some beliefs may be neutral (coffee is black)
2. Affective : feelings or emotional reactions
CB makes me all warm and fuzzy; CB makes me happy from my head to my toes
Consumers also hold certain feelings toward brands or other objects.
3. Behavioral : what the consumer plans to do with respect to the object (e.g.buy or not buy the brand)
Tendency to respond in a certain manner toward an object or activity. |
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Term
| What are the differences between utilitarian and hedonic benefits of the products? Give examples for each. |
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Definition
Utilitarian benefits: functional, instrumental and practical benefits of consumption offerings.
Hedonic benefits: aesthetic, experiential, and enjoyment related benefits
Ex: Cell phone
Battery life , sound volume = utilitarian
Shape and color = Hedonic
Ex: Car
Fuel economy, safety = utilitarian
sunroof = Hedonic |
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Term
| State some factors of inconsistency. Explain them |
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Definition
Eight factors may account for inconsistencies:
Lack of Need: Attitude requires a need or motive before the action. Ex: you do not need an i-pad.
Lack of Ability: No sufficient funds to purchase I-Pad
Failure to Consider Relative Attitudes: Attitude toward I-Pad vs Kindle fire
Attitude Ambivalence: Holding mix beliefs and/or feelings about an attitude object. – Less stable , less predictive
- Firms want to avoid these ambivalence OR they can create ambivalence among consumers of competing brands.
Weakly Held Beliefs and Affect: lack of experience of the brand. Ex: Free samples
Repetition, Reinforcement, Importance, ATTITUDE STRENGTH
Failure to Consider Interpersonal Influence: in order to meet the needs of others consumer can purchase a netbook instead of I-pad.
Failure to Consider Situational Factors: Social norms
Measurement Issues |
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Term
| What are the differences between high involvement and low involvement customers? |
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Definition
Highly involved customers:
Will be more receptive to learning
Persuasion can be more complex and time-consuming
Have strong emotional connection
Can use emotion-based arguments
Emotion vs. reason
Best to use a mix
Consumers vary on “need for cognition”
Some consumers enjoy thinking more than others
Consumer vary on ability to comprehend
Low involvement customers:
Hard to get attention
Simple arguments or provide basic information
Less related with the product |
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Term
| What are the strategies to change different types of attitudes? |
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Definition
Change the Cognitive Component
Change beliefs: Shifting beliefs about a product or brand performance. Ex: Almonds=> lower cholesterol
Shift importance: Some product attributes to be more important than others
Add Beliefs
Change Ideal: Changing perception of ideal brand or situation
Change the Affective Component
Classical Conditioning
Affect toward the ad or Website: liking the advertisement increases the tendency to like the brand
Mere exposure: Presenting a brand to an individual on large number of occasions might make the individual’s ATB more positive. (familiarity increases, liking increases, Not always!!)
Change the Behavioral Component
Operant conditioning : Coupons, samples, price reductions |
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Term
| What does ELM model explain? |
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Definition
high elaboration = high involvement
low elaboration = low involvement |
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Term
| State peripheral and central routes of ELM. What are the differences? Explain in detail. |
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Definition
Consider both cognitions/beliefs and feelings/emotions in attitude change
Central route processes that require a great deal of thought, and therefore are likely to predominate under conditions that promote high elaboration
Peripheral route processes do not involve elaboration of the message through extensive cognitive processing of the merits of the actual argument presented |
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Term
| How does involvement take place in peripheral and central routes of ELM? |
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Definition
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Term
| How do consumers resist persuasion and brand attacks? |
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Definition
Consumer Resistance to Persuasion
Consumers are not passive to persuasion attempts
Consumers are often skeptical (an individual characteristic) and resist persuasion
Consumers frequently infer an advertiser’s intent and respond in light of that presumed selling intent. |
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Term
| What are the three types of communication characteristics? |
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Definition
Three types of communication characteristics:
Source Characteristics
Represents “who” delivers the message
Appeal Characteristics
Represents “how” the message is communicated
Message Structure Characteristics
Represents “how” the message is presented |
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Term
| What are the differences between value expressive and utilitarian appeals? |
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Definition
Value-expressive appeals attempt to build a personality for the product or create an image of the product user.
-Most effective for products designed to enhance self-image or provide other intangible benefits
Utilitarian appeals involve informing the consumer of one or more functional benefits that are important to the target market.
-Most effective for functional products |
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Term
| How nonverbal components influence attitudes? |
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Definition
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Term
| What are the levels of purchasing process? |
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Definition
Problem
Recognition
Search
Evaluation/ Choice
Actual Purchase
Consumption/ Evaluation
Disposition |
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Term
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Definition
| The totality of the individuals thoughts and feelings having reference to himself or herself as an object. What someone thinks of them self |
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Term
| Define the difference between actual self and ideal self. Why marketers are interested in the gap between these two? |
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Definition
Actual self is who you are and ideal self is who you want to be.
Evoking comparisons between the “selves” allows marketers to suggest product-related solutions
Extended self = self + possessions
Hence, the notion of the “Extended Self” – possessions can help confirm or extend self image |
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Term
| Why we are interested in self-esteem in consumer behavior? What is the importance to know? How marketers target low self-esteem people? |
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Definition
Self monitoring
Being more sensitive to image communicated to others
More concern w/
“social appropriateness” of goods
Individuals differ a lot
Example: self-monitoring people tend to use cosmetics, have more interest in clothes.
For example, intentionally lowering a teenager’s self image and overstressing attractiveness just to sell products.
Need to show off products that are serving as symbols -- to appear cool, competent, successful etc.
Thus, products being used as symbols provide insight to areas of low self-esteem
(self esteem = the positiveness of self concept)
e.g., car show exhibitors
Anger, or worse, depression evident when people don’t notice your “new” product |
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Term
| What are the some lifestyle determinants and why marketers are interested in lifestyle of consumers? |
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Definition
Influences all aspects of one’s consumption behavior.
Is determined by the person’s past experiences, innate characteristics, and current situation
Lifestyle choices determine how we live and what we buy. |
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Term
| What are the 4 types of situations? |
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Definition
Situational influence includes all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior.
The Communications Situation
The Purchase Situation
The Usage Situation, and
The Disposition Situation |
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Term
| What are the differences between hedonic shopper and utilitarian shopper? |
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Definition
Utilitarian benefits: functional, instrumental and practical benefits of consumption offerings.
•Hedonic beliefs: aesthetic, experiential, and enjoyment related benefits |
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Term
| Give some examples on different dimensions of situational characteristics. |
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Definition
Physical surroundings
-Atmospherics is the sum of all the physical features of a retail environment.
Atmospherics influences consumer judgments of the quality of the store and the store’s image.
Atmosphere is referred to as servicescape when describing a service business such as a hospital, bank or restaurant.
Temporal perspectives
-Temporal perspectives deal with the effect of time on consumer behavior.
Limited purchase time often limits search
Internet shopping is growing rapidly as a result of the time pressures felt by consumers.
Task definition
-Task definition is the reason the consumption activity is occurring.
Major distinction between purchases for self versus gift.
Antecedent states
-Moods
--Transient feeling states that are generally not tied to a specific event of object.
-Momentary Conditions
--Temporary states of being |
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Term
| How can mood influence someone’s purchasing behavior? Why is it important for retail stores to keep customer in a good mood or change the customer’s mood? |
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Definition
the retail environment can help shape mood
Ever walked into a store happy but walked out angry?
managing mood
-Store atmospherics
Space
Time expectations
Stock-keeping |
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Term
| How do rituals influence the purchasing behavior? Give an example. |
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Definition
A ritual situation is a socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning. Critical to marketers because they often involve prescribed consumption behaviors.
However, ritual behavior can involve injurious consumption, such as binge drinking.The Bigelow tea ad is a great example of presenting a product as a ritual. |
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Term
| Explain the role of involvement in purchasing |
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Definition
Purchase involvement is the level of concern for, or interest in, the purchase process.
Triggered by need to consider a particular purchase. |
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Term
| Explain the types of decision making based on high involvement and low involvement |
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Definition
| Customers care about high involvement purchases and may consider alternatives, and end of with remorse or doubt post-purchase. |
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Term
| What is desired state and actual state? |
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Definition
ex. your hungry, actual state
the desired state is to be full |
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Term
| State some factors that affect problem recognition (Such as culture) |
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Definition
culture/subculture
social status
reference group
household characteristics
financial status/expectation
previous decisions |
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Term
| Define the awareness set, evoked set, inert set, inept set. (Chapter 15) |
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Definition
Awarness set - includes alternatives the consumer is aware of
Evoked set - alternatitves given consideration
Inert set - backup alternatives
Inept set - Avoided alternatives |
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Term
| Explain all five sources of information (Chapter 15). |
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Definition
Memory of past searches, personal experiences, and low-involvement learning
Personal sources, such as friends, family, and others.
Independent sources, such as magazines, consumer groups, and government agencies
Marketing sources, such as sales personnel, websites, and advertising
Experiential sources, such as inspection or product trial |
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Term
| What is bounded rationality? |
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Definition
| A limited capacity for processing information. |
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Term
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Definition
Consumers also often have goals that are different from, or in addition to, selecting the optimal alternative.
A metagoal refers to the general nature of the outcome being sought |
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Term
| What are the three types of consumer choice process? State the differences. |
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Definition
Affective Choices
-Affective choices tend to be more holistic. Brand not decomposed into distinct components for separate evaluation.
Evaluations generally focus on how they will make the user feel as they are used.
Attitude-Based Choice
-Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice.
Attribute-Based Choice
-Requires the knowledge of specific attributes at the time the choice is made
it involves attribute-by-attribute comparisons across brands. |
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Term
| What are the 5 types of decision rules for attribute based choices? (just know the main differences between them) |
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Definition
Conjunctive Rule
- Establishes minimum required performance for each evaluative criterion.
Selects the first (or all) brand(s) that meet or exceed these minimum standard
Disjunctive Rule
-Establishes a minimum required performance for each important attribute (often a high level).
All brands that meet or exceed the performance level for any key attribute are acceptable.
Elimination-by-Aspects Rule
-First, evaluative criteria ranked in terms of importance
Second, cutoff point for each criterion is established.
Finally (in order of attribute importance) brands are eliminated if they fail to meet or exceed the cutoff.
Lexicographic Rule
-Consumer ranks the criteria in order of importance.
If two or more brands tie, they are evaluated on the second most important attribute. This continues through the attributes until one brand outperforms the others.
Compensatory Rule
-The compensatory decision rule states that the brand that rates highest on the sum of the consumer’s judgments of the relevant evaluative criteria will be chosen.
Consumers can average out some very good features with some less attractive features of a production determining overall brand preference |
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Term
| What are the stages of the PLC curve? Explain with an example. Also mention the adopter categories. |
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Definition
| Innovators, early adoptors, early majority, late majority, laggards. |
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Term
| What is postpurchase dissonance? Give an example. |
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Definition
Postpurchase Dissonance occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made and is a function of the following:
The degree of commitment or irrevocability of the decision
The importance of the decision to the consumer
The difficulty of choosing among the alternatives
The individual’s tendency to experience anxiety |
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Term
| How do marketers use consumption guilt? |
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Definition
Consumption guilt - when guilt feelings are aroused by the product/service use.
Marketers need to focus on validating the consumption for “high guilt” products |
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Term
| Why customer loyalty and commitment is very critical for firms? |
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Definition
| It typically costs more to obtain a new customer than to retain an existing one, and new customers generally are not as profitable as longer-term customers! |
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Term
| What is relationship marketing? Why is it important to develop relationship marketing for the firms? |
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Definition
Relationship Marketing- focused on customer retention and satisfaction nor directly on sales
Five key elements to Relationship marketing:
Developing a core service or product around which to build a customer relationship
Customizing the relationship to the individual customer
Augmenting the core service or product with extra benefits
Pricing in a manner to encourage loyalty
Marketing to employees so that they will perform well for customers |
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