consumer behavior exam

What is marketing?

A process by which companies create value for customers and build strong customer relationships to capture value from customers in return.

What is consumer behavior?

Study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and wants.

Why is it increasingly difficult to target audiences?

Consumers are no longer passive, they demand more than information, and they get it from many sources.

What are business ethics?

Rules of conduct that guide actions in the marketplace; cultural differences in what is considered ethical.

Objective of marketing?

Create awareness that needs exist, not to create needs.

What is a want?

One way society taught us that the need can be satisfied.

What are the three consumer responses when brands fail?

1) Voice response (complaining vocally), 2) Private response (sharing with friends), 3) Third-party response (legal action, BBB).

What is cause marketing?

Marketing by a for-profit business to increase profits and better society (CSR).

Does subliminal advertising work?

FALSE – no it doesn’t.

What are the stages in the consumption process?

Prepurchase issues, purchase issues, postpurchase issues.

What is extensive problem solving?

High risk, expensive, infrequent purchases, extensive thought/search/time, unfamiliar products.

What is limited problem solving?

Lower motivation/effort, lower risk, some prior knowledge but need more information.

What is routine problem solving?

Little/no conscious effort, little/no risk, low-cost frequent purchases, familiar brands.

What are the 3 types of decision-making?

Cognitive (deliberate, rational, sequential), Habitual (behavioral, unconscious, automatic), Affective (emotional, instantaneous).

What are the steps in the decision-making process?

Problem recognition, Information search, Evaluation of alternatives, Product choice, Outcomes.

What is the endowment effect?

People value things they own more than things they don’t.
Example: Selling an item for more than a buyer will pay.

What is the endowment effect?

People value things they own more than things they don’t.
Example: Selling an item for more than a buyer will pay.

What factors increase brand recall?

Prototypicality, Brand familiarity, Brand preferences, Retrieval cues.

What is confirmation bias?

Tendency to seek info that supports prior beliefs.

What is availability bias?

Overestimating events based on vivid/easy recall.

What is a prepurchase search?

Goal-oriented info search before buying.

What is an ongoing search?

Regular search driven by interest/curiosity with no urgency to buy.

What are choice criteria?

Attributes used to evaluate alternatives.

What are determinant attributes?

Features that actually determine the consumer’s choice.

What is the evoked set?

Brands that come to mind when thinking of a product category.

What is the consideration set?

Subset of brands from the evoked set that meet choice criteria.

What are integration processes?

1) Evaluate choice alternatives in terms of criteria, 2) Select one alternative.

What is the multiattribute model?

Formal evaluation where each attribute is weighted and brands are scored.

What are heuristics?

Mental shortcuts for easier decision-making.

What are the 3 heuristic types (with examples)?

• Search: only first page of Google, only Amazon reviews.

• Evaluation: “higher price = better quality” or star ratings.

• Choice: brand loyalty, cheapest option, or last used option.

What is prospect theory?

Risk differs when facing gains vs. losses.

What is loss aversion?

We emphasize losses more than gains.

What is a reference group?

One or more people used as a basis for comparison in forming responses/behaviors.

What is a brand community?

Consumers sharing social relationships based on a product.
Example: Harley Davidson riders.

Types of reference groups?

Formal/Informal, Primary/Secondary, Membership, Aspirational, Dissociative.

What are the 3 types of reference group influence?

Informational, Utilitarian (reward/punishment), Value-expressive (image improvement).

What is compliance vs reactance?

Compliance = aligning with expectations. Reactance = resisting restrictions.
Example: Limited-time offer (compliance) vs. banned item (reactance).

What is motivation?

Produced by tension; drives consumer behavior.

What are utilitarian vs hedonic needs?

Utilitarian = practical/functional. Hedonic = emotional/pleasure-driven

What are Maslow’s 5 needs?

Physiological, Safety, Belongingness, Esteem, Self-Actualization.

What are motivational needs (with examples)?

• Achievement: value success (luxury brands, tech).

• Affiliation: want to belong (alcohol, sports bars).

• Power: control environment (muscle cars, boom boxes).

• Uniqueness: assert identity (perfume, clothing).

What is drive theory?

Motivation from unmet biological needs.
Example: Hungry? Grab a Snickers.

What is expectancy theory?

Motivation depends on expected positive outcomes.
Example: “Feel confident all day.”

What are motivational conflicts (with examples)?

• Approach–Approach: Two desirable options (Beach vs. mountain trip).

• Approach–Avoidance: One option with pros/cons (Luxury car vs. cost).

• Avoidance–Avoidance: Two unattractive options (Repair vs. replace).

What is high vs low involvement?

High = flow state, strong motivation. Low = inertia, habitual.

How do marketers increase involvement?

Appeal to hedonic needs, novel stimuli, celebrity endorsements, consumer bonds.

What are terminal vs instrumental values?

Terminal = end-states (happiness, freedom). Instrumental = means to achieve them (honest, ambitious).

What is the means-end chain?

Attributes → Functional Consequences → Psychosocial Consequences → Values.
Example: Organic → healthier body → feel proud → admired by peers.

What is laddering?

Semi-structured interview that uncovers links between attributes, consequences, and values

What is manufactured demand?

When companies create/amplify desire for something not truly needed.