Consumer Behavior Lecture Flashcards

Vocabulary terms and definitions from the consumer behavior and perception lecture notes.

Stimulus

A unit of input into the senses, such as light, color, sound, or odor.

Sensations

The response of sensory receptors to stimuli.

Perception

The process by which an individual selects stimuli, organizes information about those stimuli, and interprets the information.

Selective exposure

The process where individuals avoid certain stimuli, such as advertisements, by switching TV or radio channels.

Attention

Reflects how much mental activity individuals devote to a stimulus; it is selective, can be divided, and is limited.

Absolute threshold

The minimum amount of stimulation that can be detected on a given sensory channel.

Differential threshold (J.N.D)

Also known as the just noticeable difference, it is the amount of change in stimulus necessary for a change to be perceived.

Subliminal message

A signal or message embedded in another object, designed to pass below the normal limits of perception.

Grouping

A Gestalt perceptual law of interpretation where stimuli are organized based on similarity and proximity.

Figure/ground principle

A Gestalt principle determining whether a stimulus is seen as the main focal point or the background; often seen in optical illusions.

Closure principle

A Gestalt principle where individuals finish incomplete information with prior knowledge and forced participation or recall.

Perceived risk

The nature and amount of risk perceived by a consumer in a particular purchase decision, consisting of consequence and uncertainty.

Consequence

One of the two factors of perceived risk, referring to the importance of the loss.

Uncertainty

One of the two factors of perceived risk, referring to the probability of the loss.

Negative publicity

Adverse publicity that a firm may incur due to a particular reason, which may lead to potentially disastrous consequences.

Product Placement

A form of advertisement where branded goods or services are placed in a context, such as movies or television shows.

Perceived quality

The consumer's judgment about a product's overall excellence, influenced by extrinsic and intrinsic cues.

Extrinsic cues

External indicators of quality such as price, brand, reviews, store, and origin.

Intrinsic cues

Internal characteristics of a product such as fit, comfort, material, and durability.

Learning

The process by which memory and behavior are changed as a result of conscious and nonconscious information processing.

Nonconscious information processing

A gradual process that subtly enhances brand awareness and familiarity, shaping consumer preferences and attitudes over time.

Classical conditioning

The process of using an established relationship between a stimulus and response to bring about the learning of the same response to a different stimulus.

Operant (Instrumental) conditioning

A learning process developed by BF Skinner involving rewarding desired behavior with a positive outcome to reinforce the behavior.

Positive reinforcement

A scenario where a behavior is followed by a desired consequence, leading to the repetition of that behavior.

Shaping

A process in which a desired behavior is learned by rewarding intermediate actions along the way.

Fixed interval reinforcement

An instrumental learning application where reinforcement is provided at set times, such as 'Dollar Tuesday'.

Variable interval reinforcement

Reinforcement provided after unpredictable time periods, such as a 'Flash sale'.

Fixed ratio reinforcement

Reinforcement offered after a specific number of responses, such as a loyalty card program.

Variable ratio reinforcement

Reinforcement provided after an unpredictable number of responses, such as random acts of generosity or unexpected discounts.

Stimulus generalization

Occurs when a response to one stimulus is elicited by a similar but distinct stimulus; also known as the 'rub off effect'.

Stimulus Discrimination

The process of learning to respond differently to similar but distinct stimuli, often used in positioning and individual branding.

Individual branding

A marketing strategy, used by companies like P&G, of giving each product in a brand portfolio its own unique brand name.

Memory

The processes of acquiring (encoding), storing (storage), and later retrieving information (retrieval).

Nostalgia marketing

A strategy involving the use of evocative elements from the past to promote a brand.

Fishbein's attitude theory

Proposes that evaluations of salient beliefs cause the overall attitude an individual has toward an object.

Salient beliefs

The specific beliefs associated with an object that individuals consider when forming an attitude.

Multiattribute model

A mathematical model where attitude is calculated as $$A = ext{Brand A} imes ext{Weight}$, representative of several weighted attributes.

Compensatory model

A type of attitude model where a high score on one attribute can offset a low score on another.

Elaboration Likelihood Model (ELM)

A theory suggesting that persuasion occurs via two paths: the central route (high involvement) or the peripheral route (low involvement).

Central route

An ELM pathway for high involvement products focusing on providing substantial information and strong arguments.

Peripheral route

An ELM pathway for low involvement products focusing on peripheral cues like visual elements and influencers.

Cognitive dissonance theory

A theory by Festinger (1957) stating that dissonance occurs when information conflicts with existing beliefs, motivating people to reduce discomfort.

Mere exposure theory

The concept that the more frequently people encounter something, the more they tend to like it, regardless of active analysis.

Likert scale

An attitude measurement scale that asks respondents to indicate their level of agreement with a statement from 'Strongly disagree' to 'Strongly agree'.

Semantic Differential scale

An attitude scale presenting pairs of bipolar adjectives or statements to measure positions between opposites.

Ideal point scale

A scale capturing the distance between the actual performance of a brand and the consumer's ideal level of an attribute: $\text{A} = \text{brandA } \text{W}_i \times \text{X}_{ibrandA}$.

Social desirability basis

A limitation of attitude measurement where respondents provide answers they believe are socially acceptable rather than their true feelings.

Attitude-behavior gap

The discrepancy that occurs when a consumer's stated preference for a brand does not result in the actual purchase of that brand.

Self-Concept

An individual's perception of and feelings toward himself or herself.

Actual Self concept

How an individual actually sees themselves.

Ideal self concept

How an individual would like to see themselves.

Actual public concept

How others actually see the individual.

Ideal public concept

How an individual would like others to see them.

Brand engagement

The extent to which an individual includes brands as part of their self-concept.

Brand community

A group of consumers connected through a shared affinity for a brand, characterized by loyalty and regular member interaction.

VALS

A framework that divides consumers into eight segments based on primary motivation (Ideals, Achievement, Self-expression) and resources.

Ideals motivation

A VALS primary motivation where consumers purchase based on functionality.

Achievement motivation

A VALS primary motivation where the approval of others matters to the consumer.

Self expression motivation

A VALS primary motivation where consumers pursue experiences.

Resources (VALS)

The ability of individuals to pursue their dominant self-orientation based on psychological, physical, and material means.

Innovators

A VALS segment characterized by high resources and high innovation.

Survivors

A VALS segment characterized by low resources and low innovation.

Motive

The reason why an individual does something.

Manifest motives

Motives that individuals are aware of and freely admit.

Latent motives

Motives that individuals are reluctant to admit, reveal, or are not aware of.

Projective Technique

A method designed to uncover thoughts and feelings people are reluctant to expose via straightforward questioning.

Sentence Completion test

A projective technique where subjects are asked to finish phrases to reveal underlying feelings (e.g., 'Someone who drives a Prius is…').

Thematic Apperception Test (TAT)

A projective technique providing subjects with ambiguous pictures and asking them to tell a story about what is happening.

Word Association test (WAT)

A projective technique requiring subjects to respond to a prompt word with the first word that comes to mind.

Approach goal

A goal involving the effort to reach or maintain a desired outcome.

Avoidance goal

A goal focused on avoiding or eliminating an undesired outcome.

Regulatory focus theory

Proposes that individuals have two main motivational orientations: prevention focus and promotion focus.

Prevention focus orientation

Orientation sensitive to losses and non-losses, emphasizing safety, protection, and avoiding negative outcomes.

Promotion focus orientation

Orientation sensitive to gains and non-gains, emphasizing needs for growth and development.

Psychological reactance

A motivational state that drives people to restore their autonomy when they feel their freedom is restricted.

Reactance theory

Suggests consumers increase desire for a product when freedom to choose is restricted, such as 'only 10 left in stock' notifications.

Innate (primary) needs

Basic physiological needs required for survival, such as food, water, and warmth.

Acquired (secondary) needs

Needs learned in response to one's culture or environment, such as the need for prestige or esteem.

Physiological needs

The base of Maslow's hierarchy, including food, water, warmth, and rest.

Safety needs

The second level of Maslow's hierarchy, including security and safety.

Belongingness and love needs

The third level of Maslow's hierarchy, involving intimate relationships and friends.

Esteem needs

The fourth level of Maslow's hierarchy, involving prestige and a feeling of accomplishment.

Self-actualization

The top level of Maslow's hierarchy, referring to achieving one's full potential.

Generic problem recognition

A discrepancy that a variety of brands or any brand within a product category can solve.

Selective problem recognition

A discrepancy that only one specific brand can solve.

Internal search

The process of searching for relevant information from long-term memory.

Disjunctive model

A non-compensatory rule where a brand is acceptable if it meets or exceeds the minimum level for at least one attribute.

Conjunctive model

A decision rule requiring a brand to meet or exceed minimum levels for all attributes; stricter than the disjunctive model.

Lexicographic model

A rule where consumers rank criteria by importance and choose the brand that performs best on the highest-ranked attribute.

Elimination by aspects model

A rule where consumers rank criteria and eliminate brands that do not meet cutoff points attribute by attribute until one remains.

Conjoint analysis

A research technique used to determine how consumers value different attributes of a product.

Compromise effect

The tendency for consumers to select a middle option when presented with extreme alternatives.

Attraction effect

The phenomenon where adding a 'decoy' alternative increases the attractiveness of a 'target' option.

Prospect Theory

A theory by Daniel Kahneman describing decision-making under risk, stating that losses loom larger than gains.

Loss aversion

The concept that consumers are more motivated by the fear of loss than the prospect of gain.

System 1

A mode of decision making that is fast, intuitive, automatic, and often unconscious.

System 2

A mode of decision making that is slow, effortful, and deliberate.

Service recovery paradox

Occurs when a highly effective recovery after a failure results in higher customer loyalty than if no failure occurred.

Spurious loyalty

When a customer appears loyal due to lack of alternatives rather than genuine preference.

Customer affection

An emotional bond formed through storytelling, shared values, and favorable experiences.