MKTG-301 MIDTERM 3

Brand-choice congruence

The purchase of the same brand as members of a group

Social Influence

Information by and implicit or explicit pressures from individuals, groups, and the mass media that affect how a person behaves

Marketing Sources

Those under marketers’ control

Ex. Advertising, personal selling, product packaging, website, email,

Nonmarketing Sources

Not under marketer’s control

Ex. Media, Organizations, Opinion leaders, Influencers, Market Mavens, Reviewers

Reference Groups

• Aspirational: Groups we admire and desire to be like but are not a member of

• Brand Community: Specialized group of consumers with a structured set of relationships involving a particular brand, fellow consumers of that brand, and the product

• Associative: Groups to which we currently belong 

• Dissociative: Groups we do not want to emulate

Tools of Influence

• Offline tools

  • Personal conversations

  • Event sponsorships, print and broadcast ads, promotional products, etc

• Online tools

  • SMS, Social media ads, Banner ads, Email, Websites, etc

• One-on-one tools allow for a conversation (ex. Chat agent)

• One-on-Many allows for greater reach (ex. Website)

Consumer Socialization

The process by which we learn to be consumers and know the value of money

Conformity

The tendency to behave in an expected way

Foot-In-The-Door

A persuasion strategy where securing compliance with a small, initial request increases the likelihood of agreement to a subsequent, larger request

Door-In-The-Face

A persuasion strategy where a requester makes an initially large, unreasonable request, followed by a smaller, reasonable request (the target goal) after the first is refused

Even-a-penny-will-help

A persuasion technique that increases donation compliance by reducing the perceived cost of helping, making even tiny contributions seem valuable

2 types of influence

Informational

Normative

CAP:

Cohort

Age

Period

Generational Cohort Theory

Specifies that independent of age and period, birth cohorts or generations, share similar defining life events, and therefore long-lasting values and patterns of behavior 

Silent Generation: 1928-1945

Values: Thriftiness, Respect, Loyalty, Resilience

Baby Boomers: 1946-1964

Values: Optimism, Individualism, Education, Instant Gratification

Generation X: 1965-1980

Values: Independence, Education, Work/Life Balance, Less Materialistic

Millennials: 1981-1996

Values: Immediacy, Entertainment, Self-Expression, Social Interaction, Work/Life Balance

Gen Z

Values: Immediacy, Autonomy, Work/Life Balance, Sustainability, Diversity

Gen Alpha

Sustainability, Social Cohesion, Mental Health, Connectedness

Gen Beta

• Values: ?

• Guesses: Deep Tech Integration, Sustainability, DEI, Resilience & Financial Conservatism, Borderless / Global Connectivity, Hyper-Connectivity + Personal Expression

Acculturation

The process of change in the values, beliefs, behaviors, and/or identities of cultural groups due to intercultural contact to adjust to their new or changing cultural context

What are the 4 Patterns in Decision-Making

• 1. Autonomous Decisions

• 2. Partner-Dominated decisions

• 3. Child-Dominated decisions

• 4. Syncratic Decisions

Social class hierarchy

The grouping of members of a society according to status from high to low

Trickle-down consumption

When products, services, or bands consumed by upper classes are adopted by lower classes

Trickle-up consumption

When brands, products, or services consumed by lower classes are adopted by upper classes

Trickle-across consumption

When products, services, or brands are adopted by all social classes (almost) instantaneously

Socioeconomic Status (SES)

A consumer’s relative status in society as measured by income, educational, occupational level, and area of residence

Conspicuous consumption

Acquiring and displaying goods, services, and brands to signal one’s higher social class to others

Compensatory consumption

Takes place when buying products, services, or brands to offset frustrations or difficulties in life

Fraudulent symbol

Products, services, or brands that becomes so widely adopted that they lose their status 

Parody display

When status symbols start in the lower social classes and move upward

Status symbol

A product, service, or brand that signals one’s higher social class standing to other consumers

Voluntary simplicity

Limiting acquisition and consumption to live a less material life 

Conspicuous waste

Visibly buying products and services that one never uses

Conspicuous compassion

Publicly donating to charity to signal one’s virtue 

Psychographics

Description of consumers based on their psychological and behavioral characteristics, specifically, their personal values, personality traits, and lifestyles 

What are Values, Personality, and Lifestyles?

Relatively broad and stable psychographic characteristics that influence a range of consumer behaviors over time, but usually with a modest effect on each specific behavior 

Values

• Enduring beliefs about desirable, abstract outcomes

  • Serve as standards for guiding your evaluation and selection of behaviors, people, and policies across situations over time

Value conflict

When consumers are aware that a particular behavior is consistent with one or more of their important values but inconsistent with one or more of their other important values

Core values

A person’s most enduring, strongly held, and abstract values that hold in many situations. These values are at the center of a person’s value system

Terminal values

The desired end states such as equality and pleasure

Instrumental values

Intermediate values needed to attain the desired end states such as honesty to attain equality, and cheerfulness to attain pleasure

Domain-specific values

Values that apply to a particular life domain or area of activities, such as consumption, health, work, leisure, family, technology, the environment, etc

Self-and-Growth Values

Materialism

Hedonism

Individualism

Work and Leisure Balance

Technology Attraction

Health Focus

Youth Focus

Others-and-Stability Values

Home

Family and Children

Authenticity

The Environment

4 drivers of our Values- ACES

AGE
CULTURE
ETHNICITY
SOCIAL CLASS

Personality

The broad, stable patterns of feelings, thinking, and behaviors that differentiate people from each other, and that influence their future behaviors

Big Five personality traits–CANOE

Conscientiousness

Agreeableness

Neuroticism

Openness

Extraversion

Conscientiousness

(achievement-oriented, disciplined):

• More systematic research

• Favor reliability

Agreeableness

(desire for social harmony):

• Cooperative brand choices (pro-social purchasers)

• Positive word-of-mouth

Neuroticism

(prone to stress, anxiety, mood swings):

• Stress-related consumption

• Risk aversion

Openness

(seeking new experiences, curiosity):

• Early adopters

• Variety seeking

Extraversion

(sociable, outgoing):

• Social consumption

• Impulse purchases

Locus of Control

People’s tendency to attribute the cause of events and outcomes to the self (internal) or not to the self (external)

Dogmatism

The trait that makes people hesitant to new ideas

Innovation

An offering that is perceived as new by consumers within a market segment and that has an effect on existing consumption patterns

Marketers classify innovations in terms of

• The degree of novelty

• The type of benefits it offers

• The breath of innovation

Functional innovation

A new product, service, attribute, or idea that has utilitarian benefits that are different from or better than those of alternatives

Hedonic or aesthetic innovation

An innovation that appeals to our aesthetic, pleasure-seeking, and/or sensory needs

Symbolic innovation

A product, service, attribute, or idea that has new social meaning

Adoption

A purchase of an innovation by an individual consumer or household

Resistance

A desire not to buy the innovation, even in the face of pressure to do so

Marketers are interested in 3 things regarding innovation

• Whether consumers would adopt an innovation or whether they would resist buying or using it

• How consumers adopt products and how they decide whether to buy an innovation

• When a consumer would buy an innovation generally, or in relation to when other consumers would purchase it 

High-effort hierarchy of effects

A purchase of an innovation based on considerable decision-making effort

Diffusion

The percentage of the population that has adopted an innovation at a specific point in time

Contagion

The degree to which consumers influence each other in the diffusion of a new product

S-shaped curve

Slow initial adoption, followed by a period of rapid, steep growth

Exponential diffusion curve

A diffusion curve characterized by rapid initial growth

Product life cycle

A concept that suggests that products go through an initial introductory period followed by periods of sales growth, maturity, and decline

Fad

A successful innovation that has a very short product life cycle

Fashion

A successful innovation that has a moderately long and potentially cyclical product life cycle

Classic

A successful innovation that has a lengthy product life cycle

Perceived value

Greater perceived value than existing alternatives

Perceived costs

The money, time, and effort required to adopt the product

Switching costs

The costs of changing from the current product to a new one

Consumer learning requirements affect

• Compatibility

• Trialability

• Complexity

Social factors impacting diffusion

• Modernity

• Physical distance

• Homophily

• Opinion leadership

• Individual vs collectivist cultures

• Social influence 

Innovation continuum

• Discontinuous Innovation (Radical)

• Dynamically Continuous Innovation

• Continuous Innovation (Incremental)

Product adopters

• Innovators

• Early adopters

• Early majority

• Late majority

• Laggards

Social dilemmas

When a consumer or company’s self interest conflicts with the interest of one or more or others or of society at large (who focus)

Temporal dilemmas

When a consumer or company’s immediate interest conflicts with their long-term interest (when focus)

Corporate social responsibility (CSR)

Initiatives that aim to balance the economic, social, and environmental interests

Marketing ethics

Principles or standards of what is morally right or wrong to do in marketing

Consumer ethics

Principles or standards of what is morally right or wrong to do in consumer decision making and behavior

Controversial Consumer Behavior

Breaking the rules of what is acceptable in a particular group or society

Social comparison theory

Theory which specifies that people have the natural drive to search for accurate self evaluations and seek comparison

Ethical sourcing

Obtaining supplies and making products in accordance with sustainability values 

4 functions that offerings and practices can fulfill

• Connectedness

• Role Acquisition

• Emblematic

• Expressiveness

Connectedness

The use of the products as symbols of our personal connections to significant people, events, or experiences

Role Acquisition

The use of products as symbols to help us feel more comfortable in a new role

People typically move from one role to another in three phases

Seperation —> Transition —> Incorporation

Emblematic

The use of products to symbolize membership in social groups

Expressiveness

The use of products as symbols to demonstrate our uniqueness

Symbolic value

Fulfill emblematic, role adoption, connectedness, and expressiveness functions

Mood-altering properties

Evoke feelings of pride, happiness, joy, or comfort or reduce stress

Utilitarian value

Possessions that are extremely useful value

Sacred entities

People, things, and places that are set apart, revered, worshiped, and treated with great respect

Profane things

Things that are ordinary, and hence have no special power

Gift giving often occurs over three stages

1.Gestation stage: The first stage of gift giving, when we consider what to give someone

2.Presentation stage: The second stage of gift giving, when we actually give the gift

3.Reformulation stage: The final stage of gift giving, when we reevaluate the relationship based on the gift-giving experience