MKT 325 Final Exam

Virtual Reference Group

Virtual Reference Group

Group that individuals interact with virtually/online (Subreddits, Facebook community groups)

Secondary Reference Group

Surrounds the degree-of-involvement an individual has and is more impersonal and formal but can still share values among its members (union, political party, professional fraternity)

Primary Reference Group

Surrounds the degree-of-involvement an individual has, more face-to-face and intimate and involves closer connections and meetings (family, roommates)

Culture

“collective identity” of all learned ideas, beliefs, values, knowledge, and customs that characterize and regulate the behavior of members of a particular society; is acquired

Acculturation

How an outsider adapts to new culture

Assimilation

Abandoning one’s own culture in favor of the new culture

Enculturation

the process by which individuals learn about their own culture

Ethnic

A social division based on national origin, religion, language, and often race

Cognitive Age

A self-concept of how old you feel and present yourself as

Balance Theory

In a consumer context, people seek balance between themselves, an endorser, and brand. If there are unbalanced perceptions, the consumer will adjust their perceptions to bring them back into balance

Cognitive Dissonance Theory

People need consistency between their behavior and attitudes and will act to reduce the discomfort felt when there is inconsistency

Adjustment function

Based on the idea that consumers seek maximum utility and value from their consumption; draws upon maximizing rewards and minimizing punishments (flu medicine, reusable water bottle)

Ego-defensive function

attitudes perform the function of defending or enhancing a consumer’s self-image (acne treatment, suit-and-tie)

Knowledge function

Driven by the human need to have accurate, meaningful, stable, and organized view of the world; make it easier for consumers to evaluate any new information encountered (MasterCard services, Duolingo)

Value expressive function

Concerned with the drive to project important aspects of the actual self and possible selves; intrinsic (tattoo, musician merch)

Maslow’s Drive Theory

A model for understanding a person’s motivations based on the idea that there is an ordering of needs starting at basic physical needs and going to higher level self-actualization needs, and people satisfy their needs one level at a time

Self-determination theory

Intrinsic and extrinsic motivation; people tend to be more creative and hardworking when going after their intrinsic goals

Intrinsic motivations

Internal drive in all humans (food/water/shelter and emotional needs). Strongest when we feel autonomous, have a sense of belonging, and are confident in our skills

Extrinsic motivations

Drive for some kind of external recognition or external reward

Motivation

The driving force that entices us to take action

Emotions

Our affect; how we are feeling- motivators can affect emotions and emotions can affect buying behavior

Attitude

a learned predisposition to respond in a consistently favorable or unfavorable manner in relation to some object, affect (emotions), behavioral, cognitive (knowledge)

Affective Component

All of the emotional connections the consumer has with the attitude object; includes all of the positive and negative feelings; how our actions/behaviors influence our product usage choices

Compensatory Decision Rule

When a consumer is willing to trade off certain positive and negative attributes of a product/brand, allowing for a more nuanced evaluation of what products/brands can offer (high-involvement purchasing decisions)

Conjunctive Decision Rule

When a consumer establishes a minimum acceptable threshold for important attributes of a product that it must meet before they consider purchasing (associated with cautious consumer)

Lexicographic Decision Rule

When a consumer bases their buying decision of a particular product by ranking its specific attributes

Brand Addiction

Mental and behavioral preoccupation with a brand that causes positive emotions once the brand is acquired

Brand affinity

When a strong emotional tie occurs between brand and consumer (the friendship phase)

Brand relationship

When a deeper level of connection is forged between the self and the brand

Aspirational Group

Individual(s) we admire and would like to be loke in some way

Contactual or associative group

Close membership groups with which we interact regularly (family, friends, classmates, coworkers)

Formal group

Has a highly defined structure, a set of rules, a hierarchy for membership (sororities, places of worshop)

Informal group

Formed by individuals who share a common set of interests or goals (clubs, causal sports team)

Components of social class

Status, income, education, profession/occupation, homogeneity

customs

Common practices followed by people of a particular group or region

Subculture

Smaller cohesive group of people

High involvement decision model

decisions that are important to the consumer; requires lots of preparation before purchase

Low involvement decision model

Decisions that are not important to the consumer; requires little preparation before purchase

Maslow’s Hierarchy of Needs

Physiological needs (food, water, shelter)
Safety needs (safety, security)
Social needs (social connections, affiliations, love)
Esteem needs (recognition, prestige)
Self-actualization (emotional, cognitive, and creative fulfillment)