MKT 325 FINAL EXAM

virtual reference group

- web-based reference group

-influence an individual's opinions, behaviors, or purchasing decisions through online interactions, primarily on social media platforms or online communities

- reference group that exists solely in the digital space

secondary reference groups

composed of people whom you have impersonal relationships with (more formal)

Acquaintance whom you rarely see

primary reference group

composed of people whom you have a personal relationship with (EX: friend, romantic partner, family member, roommate)

Aspirational Group

composed of individuals with whom the consumers can identify or admire (often from afar) and whom they aspire to be like in some way

Culture

the total of all learned ideas, beliefs, values, knowledge, and customs that regulate the behavior of members of a particular society

Acculturation

process of learning the beliefs and behaviors endorsed by another culture

Enculturation

the process of learning OWN culture

Ethnicity

- a social group that a person identifies with or is identified with by others based on a shared cultural background

- refers to a variety of cultural factors, such as nationality, ancestry, shared customs, and language

cognitive age

age you act, feel, think VS chronological age

balance theory

refers to how consumers react to a referent who is endorsing a brand

cognitive dissonance theory

refers to a situation involving conflicting attitudes, beliefs, or behaviors

Based on the belief that people need consistency or consonance between their behavior and their attitudes

adjustment function

directs people toward pleasurable or rewarding objects and away from unpleasant undesirable ones

ego defensive function

helps consumers justify their purchases by aligning them with their self-image, allowing them to feel better about their choices.

Performs the function of defending or enhancing a consumers self image

knowledge function

more knowledge someone has the more likely they are to buy and more comfortable they feel buying

value expressive function

role an attitude can play in expression of core value

how a consumer uses a product or service to express their personal values, beliefs, and self-image to others

stages of Maslow hierarchy

psychological

saftey

belonging

self esteem

self actualization

self determination theory- intrinsic/extrinsic motivation:

a theory of motivation that is concerned with the beneficial effects of intrinsic motivation and the harmful effects of extrinsic motivation

intrinsic motivation

doing something because you enjoy or makes you feel god

extrinsic motivation

a desire to perform a behavior to receive promised rewards or avoid threatened punishment

motivation

a drive that causes an individual to behave in a particular way

emotions

natural instincitive state of mind deriving from one circumstances mood or relationship with others

attitude

your overall opinion or evaluation of something

affective component

the emotional or feeling segment of an attitude

compensatory decision rule

made up of a number of components and are calculated in such a way that a low score on one component is compensated by a higher score on another

rational decision making that helps people choose between options by weighing positives and negatives

conjunctive decision rule

a person sets a minimum acceptable level for each attribute of a product and only considered options that meet or exceed that minimum level of every single attribute

lexicographic decision rule

customers rank the product attributes by their importance, select the most important attribute and then pick the brand that scores highest on that attribute

Ex: if the most important consideration is gas mileage, our consumer would pick the car with the best gas mileage.

brand addiction

is an unhealthy mental and behavioral preoccupation with the brand in which the consumer experiences almost uncontrollable urges to possess any new product from the brand, and once the brand is acquired, the consumer experiences positive emotions.

brand affinity

occurs when there is a strong emotional tie between the brand and the consumer

brand relationship

occurs when a deeper level of connection is forged between the self and the brand, such that the relation grows and develops in a way that is similar to a personal relationship

social class

a group of people with similar backgrounds, incomes, and ways of living

components of social class

Income: The money earned from employment or investments.

Wealth: The total value of assets owned, including property and savings.

Education: Level of formal schooling attained.

Occupation: The type of job a person holds, which often reflects their social status.

Social network: The people a person is connected to, which can influence their social class

subculture

smaller, cohesive groups of people who share similar values, beliefs, tastes, and behavioral patterns

Baby Boomers

- Born between 1946 and 1964, they are aged 60-78 in 2024.

large events (civil rights movement)

-traditionalists

gen X

1965-1976

Focus on children

"helicopter parents"

Biggest spenders at mass merchandisers

Value education

Convenience is important

Millenials (Generation Y)

- dual income households

- strong sense of autonomy and individualism

- little brand loyalty

- more acceptance

Gen Z

-individualistic

- grown up with tech

- disposable income

-global persepctive

- sustainability and concern of envrionment

To effectively advertise to Black consumers:

- Highlight diversity, inclusion, and social justice, aligning with their values.

- Showcase brand commitment to Black communities, through partnerships or initiatives.

- Use authentic representation in ads, reflecting real-life diversity.

- Focus on empowerment and uplift, as they value brands that support their economic and social well-being.

To effectively advertise to Hispanic consumers, focus on:

- Tailor your messaging to reflect cultural values and heritage.

- Highlight benefits that appeal to family needs and collective decisions.

- Offer both English and Spanish-language options to ensure accessibility.

- Utilize social media and online platforms where they are highly active.

- Demonstrate commitment to diversity and social issues important to the community.