MKT 351 Final Study

Consumer Behavior - final exam study

Consumer Behavior

the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society

Norms

Specify ranges of appropriate behavior

Values

widely held beliefs that affirm what is desirable

Sanctions

Penalties for violating norms

Cause-related marketing (CRM)

ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause

Social marketing

influence people’s behavior in ways that benefit individuals and society as a whole

Ex: quitting smoking/smoking kills ads

Demographics

describe a population in terms of its size, distribution, and structure

Acculturation

the degree to which an immigrant has adapted to his or her new culture

Household Life Cycle (HLC)

the classification of a household into stages over time based on adult age, marital status, and the presence and age of children

HLC/occupational matrix

• Executive/Elite/Professional

• Administrative/Professional

• Technical/Sales/Clerical

• Service/Trade/Craft

• Unskilled/Manual

Reference groups

a group whose presumed perspectives or values are being used by an individual as the basis for his/her current behavior

Associative reference group

people who more realistically represent the individuals’ current equals or near-equals—e.g., coworkers, neighbors, or members of churches, clubs, and organizations

Aspiration reference group

others against whom one would like to compare oneself. For example, many firms use athletes as spokespeople, and these represent what many people would ideally like to be.

Dissociative reference groups

social groups that an individual does not want to associate with, due to various reasons such as differing values, social status, or behavioral patterns

Opinion leaders

the “go-to person” for certain types of information

• they have enduring involvement for specific product categories

• greater knowledge and expertise

What is the likehood of seeking an opinion leader

Perception

how consumers sense, organize, interpret, and provide meaning to marketing stimuli

Information processing

a series of activities by which stimuli are perceived, transformed into information, and stored

Short term memory (STM)

The portion of total memory that is currently activated or in use – working memory

Long term memory

The portion of total memory dedicated to permanent information storage

Schema

the cognitive framework that helps individuals organize and interpret information based on their prior knowledge and experiences

Personality

reflects the relatively stable behavioral tendencies that individuals display across a variety of situations

Brand personality

the way a brand is personified; the sum of its emotional, psychological and behavioral patterns that remain unique over the course of its lifespan

Attitude

an enduring organization of motivational, emotional, perceptual, and cognitive processes with respect to some aspect of our environment...it is a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object

Attitude components

• Cognitive

• Affective

• Behavioral

Cognitive attitude

Beliefs: “I believe spiders are dangerous”

Affective attitude

Feelings: “I am scared of spiders!”

Behavioral attitude

Response tendencies: “If I see a spider, you better believe I will scream!”

Self-concept

the totality of the individual’s thoughts and feelings having reference to himself or herself as an object

Extended self

Self + Possessions, What product is part of your identity

Psychographics

classifying population groups according to psychological variables such as values, activities/ interests, demographics, media patterns, and usage rates

Situational influence

all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior

What does situational influence NOT include

• Characteristics of the consumer

• Characteristics of the product

Decision making types

• Nominal decision making

• Limited decision making

• Extended decision making

The process stages

• Problem recognition

• Information search

• Alternative evaluation

• Purchase

• Post-purchase

Evaluative criteria

the criteria based on which consumers decide what makes it into their consideration and choice sets and what they end up purchasing

Post-purchase dissonance

doubt or anxiety following a difficult, relatively permanent purchase decision

Disposition

physical separation a consumer undergoes with an unwanted or no longed needed product

Evaluation

We start with expectations and compare it to actual performance

Satisfaction

measurement that determines how happy customers are with a company’s products, services, and capabilities

Dissatisfaction

lack of satisfaction

Instrumental performance

The physical functioning of the product

Symbolic performance

Aesthetic or image-enhancement performance of the product

Affective performance

The emotional response that owning or using the product provides

Repeat purchasers

continue to buy the same brand even though they do not have an emotional attachment to it

Committed customers

ability of brands to keep people loyal to their products or services by delivering value

Brand loyalty

involves commitment to the brand– it is a biased behavioral response expressed over time

Switching costs

the costs of finding, evaluating, and adopting another solution

Churn

turnover in a firm’s customer base

CRM

customer relationship management

General Data Protection Regulation (GDPR)

• EU protection for personal data (Name, IP, Cookies)

• Provides consumers with control over their data

• Promotes pseudonymization, anonymization and encryption

• Third party non-compliances means your org. is not compliant

Native advertising

Ads that are designed to look like organic (unpaid) content

Children’s Online Privacy Protection Act (COPPA)

imposes certain requirements on operators of websites or online services directed to children under the age of 13; online privacy relates to collection and use of information from websites

FTC best practices for native advertising disclosures

An ad is deceptive if there is a material misrepresentation or omission of information that is likely to mislead the consumer

PSA

free ad space on TV and radio