Consumer Behavior Lecture Review

Flashcards to help review key concepts from Consumer Behavior lectures.

What does Brand Extension entail?

Leveraging a known brand to enter a new brand category, where the core brand becomes the new brand, transferring attitude.

Define Loss Aversion.

The concept that humans hate losing things, and losing something has a different effect than gaining something of equal value.

What are the two important functions of a theory?

Explains something and predicts something.

In consumer psychology, what colors draw attention and what colors are calming?

Red draws attention, while blue, white, and pink are more calming.

What did Steve Jobs say marketing starts with?

The consumer experience.

According to the lecture notes, what do customers buy?

Benefits, not attributes.

Define Consumer Behavior.

The study of the process of individuals selecting a product to satisfy their needs.

What is the Consumer Centric Approach?

An approach where customer expectations are very important.

How is 'value' defined in consumer behavior?

Value equals perceived benefits divided by price (value = p. benefits/price).

Define the Marketing Concept.

Meeting the needs and wants of a consumer profitably.

Describe the three stages of Market Orientation.

1. Get marketplace info, 2. Bring it into the firm and disseminate it, 3. React to it.

What must be understood to formulate a marketing strategy?

Consumer psychology.

What are components of a marketing strategy?

Objectives, consumer targets, competitor targets, core strategy, and implementation through the marketing mix (production, promotion, price, place, CRM).

Where do our consumers come from?

The past, present, future, and from our competitors.

What is segmentation?

Breaking down the mass market into identifiable groups, tailoring marketing after selecting a group (target marketing) for efficiency and effectiveness.

What are the 4 major groups of segmentation?

Geographical (location), demographic (age, gender, etc.), psychographic (personality and life), and behavioral (frequency of purchase).

What are the requirements of effective segmentation?

Distinctive, measurable, substantial, and accessible.

Name some criteria satisfied by segmentation.

Homo (within), hetero (between), size, growth, competitive position, identifiable and accessible, cost & compatibility.

What are the alternative targeting strategies?

Unfocused and focused.

What is the trigger for why consumers buy?

Need: the difference between an ideal state and an actual state.

What are consumers motivated by?

Benefits

What is the first step in the consumer purchase decision process?

Need recognition.

Where do consumers search for info when making purchase decisions?

Internal or external sources.

What happens after a consumer makes a purchase?

Post-purchase evaluation, which can result in cognitive dissonance or satisfaction.

According to the lecture, what happens during post-purchase evaluation?

Consumers compare the outcome with expectations.

What is research?

The function which links the consumer and the public to the marketer through the use of information.

What does market research do?

Gives information, reduces uncertainty/risk, and enhances the probability of success.

What are reasons for market research?

Forecasting trends, new product ideas, strategy adaption, knowing your competitors, effective segmentation, buying decisions, perceptions, and price points.

What are the classifications of CB research?

Function (why?) and Technique (how?).

Name the types of research based on function.

Exploratory, Descriptive, and Causal.

Briefly describe exploratory research.

Trying to better understand the domains; used when things are so complex, we don’t know what to ask.

Describe descriptive research.

Describing a specific target market along your guidelines; define and understand a specific group.

Briefly describe casual research.

Determines if X results in Y; if a change in one variable leads to change in another; be careful of spurious variables.

Name the types of research based on technique.

Surveys, Experiments, and Observations.

What are the hallmarks of good research and what must they fulfill?

Reliability and Validity; must fulfill both or everything else downstream will fail.

Define reliability in terms of good research.

The extent to which results are consistent and stable; think of consistency.

Define validity in terms of good research.

Are we measuring what we intend to measure?

Can research be reliable without being valid?

Yes, it is possible to have reliability without validity but not the other way around.

What are the steps in the Research Process?

1. Problem definition, 2. Design, 3. Collect and analyze data, 4. Draw conclusions.

Why is problem definition critical?

Because if we don’t define anything, we can’t solve anything.

What are the basic techniques for creating a research design?

Survey, experiment, and observation.

What are the survey types of approaches?

Personal interviews, online, telephone interviews, and snail mail.

What is the only technique that can be used to determine causality?

Experiments

What does conducting an experiment involve?

Independent and dependent variables; manipulate the independent and accordingly measure on the dependent; can be done in a lab or field.

What are the features of Experiments?

Manipulation and validity (internal and external).

Briefly describe an Observation

Ethnography: research by observation.

What is a benefit of observation?

Observing consumer in a naturalistic setting of consumption.

What is the Hawthorne Effect?

People act differently when they know that they are being watched.

What needs to be considered when collecting data?

Bias (e.g. non-response bias).

What are social actions in consumption?

More than just “usage,” social actions and ultimate disposal.

What are the ABC Domains of Fundamental Terminology?

Affect, Cognition, and Behavior.

Describe Affect

A broad umbrella term for feelings, emotions, topics, and mood.

Describe cognition.

Thinking, reasoning, logic; all in your mind.

Name the two major ways by which knowledge is discovered.

Deductive Approach and Inductive Approach.

Describe the Deductive Approach.

Holds that all genuine knowledge is either true by definition; most of what we do in class is deductive; Theory → Hypothesis → Observations → Generalizations.

Describe the Qualitative Research Approach

Investigate and discover knowledge, not in terms of amount/quantity, socially constructive, “holistic” and “contextual” (Socially), Researcher becomes participant in observation, Describes: Routine & Problematic Moments and Meanings

Describe the Quantitative Research Approach

Measurement, little social influence, “value free”, objective, Qualitative resistance – negative perception / criticism / “not reliable”

What are some ethical concerns of research by observation?

Ethnography =fewer subjects and sampling. Should always be hyper-focused on ethical concerns, Hawthorne Effect

Motivation's relationship to Mktg Concept

Stratifying those needs & wants

Motivational Goal Valance

Pos. = approach and neg. = avoid

Consumer Involvement Types

Product, message, and purchase

Foundation Points of Perception

Consumers are “floating in a sea of information”, and marketers operate in the “sea.”

Overload Threshold

Over 7 = overload

Classical Perception Model

Exposure, Attention (selective), and Interpretation - meanings varies

Consideration set/evoked set

Group of contenders for purchase. As marketers, our primary goal is to ‘break through the clutter.

Advertising Management

Subliminal Advertising basis is absolute threshold. Work below awareness + that will have an effect on consumer.

Perceptual Mapping

marketing tool - 2-dimensional representation of various products that are mapped or grouped together based off key attributes, allow us to understand competition wrt focal product and core marketing strategy - modify product.