Consumer Behavior Exam One

Consumer Behavior

Consumer Behavior

a set of value-seeking activities that take place as people go about addressing their real needs

Want

a specific desire tat spells out a way consumer can go about addressing a recognized need

Exchange

acting out of the decision to give something up in return for something perceived to be of greater value

Cost

negative result of consumption

Benefits

positive result of consumption

Consumption

process by which consumers use and transform goods, services, or ideas into value

Consumer Value Framework (CVF)

consumer behavior theory, illustrating factors that shape consumption-related behaviors and ultimately determine the values associated with consumption

Internal Influences

things that go inside the mind and heart of the consumer or that are truly apart of the consumers psychologically

Cognitive Processes

mental processes that go on as we process and store things that can become knowledge

Affective Processes

the feelings associated with objects and activities

Individual Differences

characteristics and traits that help define an individual. includes demographics, personality and lifestyle

External Influences

social and cultural aspects of life as a consumer

Social Environment

elements that specifically deal with the way other people influence consumer decision making and value

Situational Influences

temporary factors unique to a time or place that can affect consumers decision making and the value received from consumption

Value

a personal assessment of the net worth a consumer obtains from an activity

Utilitarian Value

gratification derived from something that helps a consumer solve a problem or accomplish some task

ex: tires, textbooks, car insurance

Hedonic Value

value derived from immediate gratification that comes from some activity

ex: New watch, designer handbag, vacation

Value co-creation

the realization that a consumer is necessary and must play a part in order to produce value

Marketing Strategy

way a company goes about creating value for customers

Marketing Myopia

company views itself in a product business rather than in a value- or benefits-producing business

Marketing Segmentation

Separation of a market into groups based on the different demand curves associated with each group

Product differentiation

marketplace condition in which consumers do not view all competing products as identical to one another

perception

consumers awareness and interpretation of reality

Perceptual Process

Exposure

Attention

Comprehension

Grounded Cognition

Theory that suggest that bodily sensations influence thoughts and meaning independent of effortful thinking

Cognitive Organization

process by which the human brain assembles sensory evidence into something recognizable

Assimilation

product characteristics fit category easy

Accommodation

an adjustment allows product to fit category

Contrast

The product characteristics are too different to fit category

Anthropomorphism

a design that gives humanlike characteristics to inanimate objects

Selective Exposure

exposing oneself to certain stimuli and screening out the rest

Selective attention

paying attention to only certain stimuli

Selective distortion

Interpreting of information in ways that are biased by previously held beliefs

Subliminal Processing

the way in which the human brain senses low-strength stimuli that occurs below the level of conscious awareness

Absolute Threshold

Minimum strength of a stimulus that can be perceived

Just Noticeable Differences (JND)

represents how much stronger one stimulus has to be relative to another so that someone can notice that the two are not the same

Weber’s Law

A consumer’s ability to detect differences between two levels of a stimulus decreases as the intensity of the initial stimulus increases

Just Meaningful Differences (JMD)

smallest amount of change in a stimulus that would influence consumer consumption and choice

Implicit Memory

represents stored information concerning stimuli one is exposed to but does not pay attention to

Explicit Memory

represents memory for information one is exposed to, attends to, and applies effort to remmber

Mere Association Effect (MAE)

occurs when meaning transfers between to unrelated stimuli that a consumer gets exposed to simultaneously

Preattentive Affect

learning that occurs without attention

Product Placements

intentional insertions of branded products within media content not otherwise seen as advertising

Attention

purposeful allocation of cognitive capacity toward understanding some stimulus

Comprehension

the interpretation or understanding a consumer develops about some attended stimulus based on the way meaning is assigned

Signal Theory

explains ways in which communications convey meaning beyond the explicit or obvious interpretation

Figure

object that is intended to capture a person’s attention, the focal part of any message

Ground

Background in a message

Figure-Ground Distinction

The contrast between the figure and the ground

Expectations

beliefs about what will happen in some future situation

Physical Limits

limits in terms of our ability to hear, see, smell, taste, and think

Brain Dominance

refers to the phenomenon of hemispheric lateralization. Some people tend to be more right brain dominant while others are left brain dominant

Information Intensity

Amount of information available for a consumer to process within a given environment

Framing

A phenomenon in which the meaning of something is influenced by the information environment

Prospect Theory

suggest that a decision or argument can be framed in different ways and that the framing affects risk assessments consumers make

Construal Level Theory

information environment can cause individuals to think about things in different ways

Construal Level

whether or not people are thinking about something using a concrete or an abstract mindset

Timing

the amount of time a consumer has to process a message and the point in time at which the consumer receives the message

Sensory Memory

are where a consumer stores encounters exposed to one of the five senses

Iconic Storage

storage of visual information as an exact representation of the scene

Echoic Storage

storage of auditory information as an exact representation of the sound

Haptic Perception

refers to specifically interpretations created by the way some object feels

Encoding

process by which information is transferred from workbench memory to long-term memory for permanent storage

Retrieval

Process by which information is transferred back into workbench memory for additional processing when needed

Sematic Coding

Stimulus can be converted to a meaning that can be expressed verbally

Declarative Knowledge

cognitive components that represents facts

repetition

a process in which a thought is held in short-term memory by mentally repeating the thought

Dual Coding

a process in which two different sensory traces are available to remember something

Meaningful Encoding

A process that occurs when pre-existing knowledge is used to assist in storing new information

Chunking

a process of grouping stimuli by meaning so that multiple stimuli become a single memory unit