MKT 320 Final Exam

MKT 320 (Consumer Behavior at Canisius College)

Purchase momentum

occurs when our initial impulse purchases actually increase the likelihood that we buy even more

Consumer hyper choice

Forces us to make repeated decisions that may drain psychological energy while decreasing our abilities to make smart choices

Constructive procession

we evaluate the effort we’ll need to make a particular choice and then tailor the amount of cognitive effort we expand to get the job done

Mental Budget

helps us estimate what we will consumer over time so that we can regulate what we in the present

Self-regualtion

a person efforts to change or maintain his or her act over time

implementation intentions

Self-regulatory strategy, meaning that we specify in advance how we want to respond in certain situations

counteractive construal

They exaggerate the negative aspects of behavior that whit interfere with the ultimate goal

2 Types of Motivation

1. Promotion: encourages people to focus on hopes


2. Prevention: instead focuses on responsibilities and duties as it prompt people to think about avoiding something negative

Rational perspective

people calmly and carefully integrate as much information as possible with what they already know about a product, weigh the pluses and negatives of each alternative, and arrive at a satisfactory decision

Cognitive Decision Making Process Step 1:

**Problem recognition:** when we decide that there is a problem, this requires a solution

Cognitive Decision Making Process Step 2:

**Criteria generation**: what is important for your decision

Cognitive Decision Making Process Step 3:

**Option Generation:** pick options you should look at

Cognitive Decision Making Process Step 4:

**Information Search**: search the marketplace for options that meet your criteria

Cognitive Decision Making Process Step 5:

**Alternative's Evaluation**: compare a product from several alternatives

Cognitive Decision Making Process Step 6:

**Conviction:** decide on an option and actually choose a product from several alternatives

Cognitive Decision Making Process Step 7:

**Product Purchase:** we choose one product and purchase it

Cognitive Decision Making Process Step 8:

**Post-purchase Evaluation:** see if we are happy with the choice we made and if the product or service we selected met our expectations

Filter Bubble

Occurs when the broadcast media, websites, and social media platforms we consult serve up answers based upon what they “think” we want to see

Social Scoring

Both customers and services providers increasingly rate one another performance

Neuromarketing

Uses functional magnetic resonance imaging (fMRI), a brain scanning device that tracks blood flow as we perform mental tasks to take an up-close look at how our brains respond to marketing messages and product design features

Neuromarketing Principles

a. Don’t use We

b. Get To The Point

c. Be Visual: don't just tell them about a product, show it

d. Keep it concrete: facial expressions will help decode people’s intentions

e. Close strong: people pay most attention at the beginning and end of an ad

f. Use Emotion: emotions call for disruptions and result in a trigger memory

Cybermediary

a website or app that helps to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently

Intelligent agents

sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases

Search Engine Optimization (SEO)

the procedures companies use to design content of websites and post to maximize the likelihood that their content will show up when someone search for relevant term

Knowledge structure

a set of beliefs and the way we organize these beliefs in our mind

Levels of categorization of the Knowledge Structure

1. Superordinate level: more abstract


2. basic level: the most useful for classifying products. the items we group together tend to have a lot in common
3. subordinate level: more specific, often includes individual brands

Hybrid products

features characteristics from two distinct domains

Strategic implications of product categorization

a. position the product: the success of positioning strategy hinges on the marketers ability to convince the consumer to consider its product

b. identify competitors: at the superordinate level, many different products forms compete for membership

c. create an exemplar product: if the product is really good in its category, then its more familiar to consumers

d. locate products in a store: product categorization also can affect consumers expectations regarding the places where they can locate a desired product

Decision rules: Compensatory rule

More likely to apply in high-involvement situations. Allows a product to make up for its shortcomings on one dimension by excelling on another

Compensatory rule: Simple additive rule

leads to the option that has the larger number of positive attributes. adds up all the in the row.

Compensatory rule: Complex (Weighted) rule

allows the consumer to take into account the relative importance of the attributes by weighting each other. (importance x attribute)

Decision rules: Non-compensatory rule

Eliminates alternatives that are deficient on any criteria we’ve chosen and move on to something else. We reject it quickly rather than think about how it might meet our needs in other ways

Non-Compensatory Rule: Lexicographic rule

If a decision maker feels that 2 or more brands are equally good on that attribute. the selection process goes on until the tie is broken. Pick the brand that performs the best on the most important attribute.

Non-compensatory rule: elimination by aspect rule

the buyer also evaluates brands on the most important attribute. consumers eliminate products until only one good remains. eliminate brands that don’t meet the minimum.

None-compensatory rule: Conjunctive rule

The decision maker establishes cut-offs for each attribute, if none of the brands meet all the cutoffs, they may delay the choice, change the decision rule, or modify the cutoffs they choose to apply. select the first brand that meets your minimum in all attributes.

Habitual decision making

the choice we make with little or no conscious effort. make purchase decisions are so routine we may not realize you’ve made them

Heuristics

“Mental rule of thumb” that lead to a speedy decision. range from the general “I’ll buy the same brand I bought last time) to the specific (i’ll buy the brand of sugar my mother always bought)

Market Belief: Brand

all brands are basically the same, generic products are just name brands sold under a different label at a lower price, the beast brands are the ones that are purchased the most

Market Belief: Store

a store character is reflected in its window display, large stores offer better prices than smaller ones, locally owned stores give the best service

Market Belief: price/discounts

sales are typically run to get rid of slow-moving merchandise, stares are constantly having sales that don't really save you money

Market Belief: advertising & promotion

coupons represent real savings for customers because they are not offered by the store, when you buy heavily advertised products you're paying for the label, not for higher quality

Market Belief: product/packaging

new products are more expensive when they are first introduced

Covariation

our associations among events that may or may not actually influence one another

Country of origin

consumers strongly associate certain items with specific countries, and products from these countries often attempt to benefit from these linkages

Ethnocentrism

The belief that products from other places are inferior to local versions

5 Primary Sources of Information

1. memory: past searches, personal experiences, and low-invovlement learning
2. Personal Sources: friends, family, and others
3. Independent Sources: magazines, consumer groups, and government agencies
4. Marketing Sources: sales personnel, websites, and advertising
5. Experiential Sources: inspection or product trial

Types of Decision Making: Nominal

Involvement is low, something they buy regularly and are familiar with the product (Milk)

Types of Decision Making: Limited

encourages consumers to do more than nominal. long-term, expensive, complexity (t-shirt)

Types of Decision Making: Extended

takes long time to make decision. only time this is used is when you have more to loose (television set)

Problem Recognition

a problem between consumers perceived and the consumers desired state, as well as the importance of the problem

Stages of Problem Recognition Influences

1. change consumers desired state
2. change the consumers perceived reality
3. change the perceived importance of the problem

Purchase Involvement

the level of concern for, or interest in, the purchase process. triggered by need to consider a particular purchase

Criteria Generation

identify the characteristics, attributes, or features that define an optimal solution

option generation

identifying the potential solutions to a problem

information search

a. internal: scanning memory to assemble product alternative information

b. external: obtaining information from ads, friends, family, or websites

Behavioral intention

a predisposition to act in a certain manner

Sales promotion

the primary marketing strategy for influencing the timing of purchase

3 Levels of Consumer Involvement

1. extensive decision making
2. limited decision making
3. nominal or routine decision making

Framing Decisions

when people make decisions under conditions of uncertainty, their choices are influence by how the decision is "framed" or positioned

Findings of Framing Decisions

People are “risk-averse” they are most likely to take chances to avoid loss

Judgmental Heuristic

"short-cut" decision rules that people use to minimize the work required to arrive at a choice. decision rules are often the result of learning process (classical and operant conditioning)

Judgmental Heuristic: Reciprocity

people are more likely to comply with someone who has given them something. we punish people who dont adhere to reciprocity

Judgmental Heuristic: Commitment & Consistency

Previous behavior influences the likelihood of future behavior. people reflect on their prior behavior when determine their future behavior

Judgmental Heuristic: Social Proof

in ambiguous situations, people consult others behaviors to determine correct action

Judgmental Heuristic: Authority

There is a strong tendency to obey directives from authority figures. we were taught from an early age to obey authority

Judgmental Heuristic: Scarcity

the less available something is, the more valuable it is perceived to be. (baseball cards, alcohol)

Judgmental Heuristic: Liking

there is a higher probability that we will comply with a request from someone we like. (physical attractiveness, similarity, familiarity, compliments)

Judgmental Heuristic: Conditioning & Association

our effectiveness as persuaders is influenced by those things we are associated with

Other Heuristic: Because heuristic

even a poor reason increases compliance rates. (buy the cheapest/buy the most expensive)

Types of Judgmental Heuristics

Reciprocity, Commitment & consistency, Social proof, Authority, Scarcity, Liking, Conditioning

Other Heuristics: Because Heuristic

even a poor reason increases compliance rates. (buy the cheapest/buy the most expensive)

Culture

A society’s personality. it includes abstract ideas (values and ethics) and material objects and services (clothing and food)

Culture System

a. **Ecology**: the way a system adapts to its habitat

b. **Social Structure**: the way people maintain an orderly social life

c. **Ideology:** the mental characteristics of people and the way they relate to their environment and social groups

Cooptation

when outsiders modify symbols from "cutting-edge" to mainstream for a larger audience to consume

Locavore

a lifestyle that emphasizes the purchase of locally produced meat and vegetables

Culture Production System (CPS)

The set of individuals and organizations that create and market a cultural product

Culture Production Sytem

1. **Creative Subsystem:** generate symbols and products (Beyonce)
2. **A managerial Subsystem:** Select, make tangible, produce, and manage the distribution of new symbols and products (Columbian records)
3. **A communications Subsystem**: give meaning to the new product and provide it with a symbolic set of attributes (cds and vinyl)

Conditioned Superstition

consumers who don't feel they have control over their outcome, come to associate a product that is paired with a reward with the outcome itself

Myths Functions in Culture: Metaphysical

They help explain the origins of existence

Myths Functions in Culture: Cosmological

they emphasize that all components of the universe are apart of a single picture

Myths Functions in Culture: Sociological

they maintain social order because they authorize a social code for members of a culture to follow

Myths Functions in Culture: Psychological

They provide models for personal conduct

Binary Opposition

represents two opposing ends of some dimension. often a mediating figure resolves the conflict between mythical opposing forces

Ritual

a set of multiple, symbolic behaviors that occurs in a fixed sequence and is related periodically

Gift-giving Rituals

1. Gestation: the giver procures an item to mark some event
2. Presentation: the process of gift exchange
3. Reformation: the giver and receiver evaluate their bond after the exchange

Sacred Consumption

when we "set apart" objects and events from normal activities and treat them with respect and awe (rite of passages, the Super Bowl)

Profane Consumption

Describes objects and events that are ordinary or everyday; they don’t share the “specialness” of sacred ones (trip to grocery store)

Sacarlization

Occurs when ordinary objects events, and even people take on sacred meaning

Desacralization

Occurs when we remove a sacred item or symbol from its special place or duplicate it in mass quantities so that it loses its “specialness” and becomes profane

Diffusion of Innovations

The process when a new product, service, or idea spreads through a population

Technology Acceptance Model (TAM)

The likelihood of change based on two factors: the perceived usefulness of the new option and its perceived ease of use

Gartner Hype Cycle

Widely used approach to help analysts chart the progress of technological innovation

Key phases of Technology Life: Innovation trigger

A potential technology breakthrough, often no usable products exist and commercial viability is unproven

Key phases of Technology Life: Peak of Inflated Expectations

early publicity produces success stories

Key phases of Technology Life: Trough of Disillusionment

Interest wanes as experiments and implementations fail to deliver. Investment continue only if surviving providers improve their product

Key phases of Technology Life: Slope of Enlightenment

Second and third generation products appear from technology providers

Key phases of Technology Life: Plateau of Productivity

Mainstream adoption takes off. criteria for assessing provider volatility are more clearly defined

Key phases of Technology Life: Continuous Innovation

Modification of an existing product the company makes to position the product. add line extensions, make small changes, or merely alleviate consumer boredom

Major types of Innovations: Dynamically Continuous Innovation

A significant change to an existing product, a new way to use an existing product

Major Types of Innovations: Discontinuous Innovation

Major inventions that radically change modern lifestyles. such as airplanes, cars, and televisions