Consumer Behavior Final

what are 3 types of decision making?

cognitive, habitual, affective

what is cognitive decision making?

high involvment- expensive (house, car) deliberate, rational, sequential

what is habitual decision making?

out of habit (few seconds on a decision)- behavioral, unconcious, automatic: grocery shopping

what is affective decision making?

emotions, experiential, instantaneous- "I see ice cream, I want it"

Steps in decision making

problem recognition, information search, evaluation of alternaties, product choice, post purchase evaluations

problem recognition

Sally realizes they don't want a black and white tv that has bad sound reproduction

information search

sally searches the web to learn more about tvs

evaluation of alternatives

sally compares several different tvs in store in terms of reputation and available features

product choice

sally chooses one model because it has a feature that she really likes

post purchase evaluations

sally brings home her new tv and enjoys her new purchase

ideal state

what we expect to experience

actual state

what we actually experience

opportunity recognition

when our ideal state goes up because we want something new even though we do not need it

need recognition

when actual state drops because our computer is too old and now we need a new one

3 Sets Of Evaluation of Alternatives

evaluative criteria, evoked set, and consideration set

what is evaluative criteria?

filters on websites (price, brand, style, size)

what is evoked set?

the number of brands that a consumer actually considers

what is consideration set?

the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware

what are Levels of categorization?

Consumers often initially categorize products at the basic level and then may move to more specific subordinate levels depending on their need for information- relying on how product is potioned in your mind

what are heuristics?

mental shortcuts and making decisions in a short time

what is covariation?

If a consumer's income increases, their spending on luxury items might also increase, demonstrating a positive covariation between income and luxury spending.

country of origin

thinking companies are international when in reailty they aren't so they charge high prices

what is mental accounting?

the tendency to treat money differently depending on how it is acquired and the mental category to which it is attached

what is sunk-cost fallacy?

reluctant to waste something we have paid for whether or not you like it

what is loss aversion?

how we feel about finding $10 vs. losing $10

what is prospect theory?

the theory that people choose to take on risk when evaluating potential losses and avoid risks when evaluating potential gains

what is personality?

an individual's unique set of characteristics, traits, and behavioral patterns that influence how they interact with the marketplace, shaping their purchasing decisions, brand preferences, and overall consumption habits

what are the 3 building blocks of personality?

id, superego, ego

what is ID?

immediate graitifcation- the part of our personailty that lives in the moment, doesnt think into the future

what is ego?

critical thinking/ rational self- the planner, tries to figure out to get stuff done and also have fun

superego

the mental system that reflects the internalization of cultural rules, mainly learned as parents exercise their authority

what is the collective unconscious?

Carl Jung's concept of a shared, inherited reservoir of memory traces from our species' history

what are archetypes?

people have similar stories across the world throughout centuries and memories that are coded into our genes

personailty traits

identifiable characteristics that define a person

trait theory

A theory of personality that focuses on identifying, describing, and measuring individual differences in behavioral predispositions

traits relevant to consumer behavior

Innovativeness
Materialism
Self-consciousness
Need for cognition
Frugality

what does innovativeness trait mean?

how much risk people are willing to take in general in life, some people more than others

what does materialism trait mean?

person places a significant value on acquiring and possessing material goods, often believing that these possessions contribute significantly to their happiness and self-worth, leading them to prioritize buying and owning things over other aspects of life

what does self-consciousness (self-monitoring theory) trait mean?

personality trait where an individual is highly aware of how they are perceived by others and actively adjusts their behavior and self-presentation to fit the social situation

what does need for cognition trait mean?

being curious about something, having a natural sense of curiosity, not how smart but how likely they are to get new info and learn new things

what does frugality trait mean?

how value concious people are, not that they want the cheaptest thing but want the most out of their money

what are the Big Five Personality dimensions?

extroversion, agreeableness, conscientiousness, neuroticism (emotional stability), openness to experience

what does extroversion mean?

how well a person tolerates stimulation from other people

What does agreeableness mean?

the degree to which we defer to other people

example of extroversion

talking to many people at a party

example of agreeableness

taking time out of your day for others

example of neuroticism

when something goes wrong, they tend to make a scene and cannot control emotions (gets upset easily)

what does neuroticism mean?

how well a person copes with stress

what does openness to experience mean?

the degree to which a person is open to new ways of doing things

what does conscientiousness mean?

a personality trait where individuals tend to be organized, thoughtful, and careful in their decision-making

what is brand personailty?

set of traits people attribute to a product as if it were a person

What is anthropomorphism?

giving human like traits to non human things

what is reader response theory?

reader will respond to a work of literature based on his/her previous experiences. To a point the meaning of the text is dependent upon the interpretation of the reader.

what is underdog biography?

brands use this to get consumers to buy their products by saying we work hard as a brand and we might not always be the best

what is doppelgänger brand image?

someone who is similar to us and culture jamming by creating brand image and personailty that makes fun of the original brand personailty

what does AIO demension stand for?

activites, interests, and opinions

co-branding strategies

companies team up to promote 2 or more products

product complementarity

occurs when the symbolic meanings of different products relate to one another

consumption constellation

brands promoting their products together to get consumers to buy both products

what is a lifestyle?

patterns of consumptions that reflects a persons choices of how to spend money and time. these choices are essential to defining consumer identity

Freud's theory

basic principles include the unconscious mind, early childhood experiences, and influence of sexual drives, includes id/ego/superego and psychosexual stages

what do pyschogrpahics refer to?

personailty, values, and lifestyle

What is the VALS2?

example of pyschographic segementation- method that puts people into eight groups like thinkers, innovators, and strugglers

pyschographic studies

define target market, create a new view of market, position the product, better communicate product attributes, develop product strategy, market social and political issues

what are american core values?

freedom of choice, youthfulness, achievement, materialism

What is enculturation?

learning about your own culture from family, peers, teachers

What is acculturation?

learning about others cultures

what is attitude?

a lasting, general evaluation of people, objects, advertisements, or issues

what is attitude object (AO)?

anything toward which one has an attitude- any person, brand, thing that you have an attitude towards

what are the four functions of attitudes?

Utilitarian function
Ego-defensive function
Value-expressive function
Knowledge-expressive function

what is utilitarian function?

relates to rewards and punishments

what is value-expressive function?

expresses consumer's values or self-concept

what is ego-defensive function?

getting defensive about someone saying something bad about something you like

what is knowledge function?

need for order, structure, or meaning- helps us feel better about quick judgements on things that gives us the illusion that we are in control

what is the ABC model of attitudes?

a multidimensional perspective stating that attitudes are jointly defined by affect, behavior, and cognition

what are the three levels of hierarchies of effects?

high involvement, low involvement, and experiential

what is the high involvement process?

cognition-> affect-> behaivor
attitude based on cognitive information processing

what is low involvement process?

cognition-> behavior-> affect
attitude based on behavioral learning processes

what is experiential process?

affect-> behavior-> cognition
attitude based on hedonic consumption

what are the attitude commitment levels?

internalization, idenfitication, and compliance

what is interalization?

deep seeded attitudes become part of consumers value system (highest level)

what is identification?

attitudes formed in order to conform to another person or group, if everyone has an iphone you are more likely to get one (mid-level)

what is compliance?

consumer forms attitude because it gains rewards or avoids punishment- if you eat somewhere a couple times and its bad eah time you r attitude towards it will change (lowest level)

theory of cognitive dissonance

we take action to resolve dissonance when our attitudes and behaviors are inconsistent

what is balance theory?

Considers how a person might perceive relations among different attitude objects and how he might alter attitudes to maintain consistency

what are the triad attitude structures?

Person
Perception of attitude object
Perception of other person/object

what is the social judgement theory?

a psychological theory explaining how people evaluate and perceive new ideas or messages by comparing them to their existing attitudes

what are assimilation effects?

Judging something as more similar than it really is (toward the anchor). Messages within the latitude of acceptance are assimilated.

what are contrast effects?

A salesperson shows you a very expensive luxury car first, then presents a more affordable car which suddenly seems like a great deal in comparison

what is self perception theory?

The theory that when our attitudes and feelings are uncertain or ambiguous, we infer these states by observing our behavior and the situation in which it occurs

What is the foot-in-the-door technique?

Consumer is more likely to comply with a request if he has first agreed to comply with a smaller request

what is low-ball technique?

an item is initially offered at a lower price than one expects in order to get the buyer to commit; then, the price is suddenly increased

What is the door-in-the-face technique?

Person is first asked to do something extreme (which he refuses), then asked to do something smaller.

what is consistency theory?

we value/seek harmony among thoughts, feelings, and behaviors and we will change components to make them consistent

what is latitude of acceptance?

the range of opinions or positions on a particular issue that a consumer finds acceptable

what is lattitude of rejection?

the range of opinions or beliefs about a product or service that a consumer finds completely unacceptable or objectionable

what is latitude od non commitment?

the range of attitudes or opinions within Social Judgment Theory where a consumer does not strongly favor or reject a particular message or product

attitude models

identify specific components and combine them to predict a consumer's overall attitude toward a product or brand

What is the Fishbein model?

Formula that calculates attitude toward an object based on:
-Relationship to the product/attribute
-How important that attribute is

what are salient beliefs?

beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude