Mark 4100 Exam 3 Whitley

Regret

perceiving that the option/action you chose was inferior to its alternatives

Regret Theory

proposes that the utility of an option also

depends on the feelings evoked by the outcomes of

rejected option

Anticipated Regret

the feeling that we will strongly look back on our decision with negative emotion

Experienced Regret

Feeling that one should have purchased a different

option (or should have purchased when they chose

not to)

Post-Decision Dissonance

a feeling of anxiety over whether the correct decision was made

Cognitive Dissonance

an aversive motivational state that

produces efforts to reduce it

Probability and Magnitude of Dissonance depends on:

Degree of commitment and/or whether the decision can be

revoked

• Importance of the decision to the consumer

• Difficulty of choosing among the alternatives

• Individual's tendency to experience anxiety

• Perceived risk

Expectancy disconfirmation

occurs when there is a

difference between expectation and actual performanc

Simple confirmation

occurs when the expectation and actual

performance are equal, resulting in satisfaction.

Equity Theory

We want fair exchanges

• Judge exchanges based on their fairness

• Inputs should equal outputs

Sustainable behavior

Actions that minimize environmental impact and promote

social equity

• Using only what you need without compromising future

generations

Sustainable Behaviors - Consumption

Use items for longer periods

Sustainable Behaviors - Anti-Consumption

Taking public transportation

• Eating less meat/dairy

• Eliminating single-use items

• Use less electricity/wate

Sustainable Behaviors - Disposal

Disposing

• Recycling/Composting/Zero Waste

• Donate

• Resell

Sustainable Behaviors - Not Disposing

Repair/Upcycle

Social Norms

you will do it if others are also doing it

Social Identity

You will do it if certain others are also doing it

Social desirability

you will do it because others will view you positively

Habit formation

Use mechanisms that can encourage repetition to make a

one-time action become more of a habi

Self Concept

People want to view themselves positively

Self Consistency

Sustainable actions in one context can spillover into other contexts

Self-Interest

highlight the self-benefits of sustainable products/behaviors

self-efficacy

People are more likely to engage in a sustainable behavior if they believe it will make a difference

Negative Emotions

can prompt action

• Fear appeals can highlight the significance of consequences

• Guilt - people don't like feeling responsible for unsustainable

outcomes

Positive Emotions

People more likely to do when behavior provides positive emotion/pleasure "warm glow"

Tangibility

Sustainable outcomes seem abstract (distant) and hard for

people to imagine or track, so they don't feel compelled to

Future on Focus

encourage people to focus on the future/future benefits of action

Focus on Present

Discuss immediate consequences felt by certain communities

Discourage Focus on Material Goods

highlight

intangibles (experiences, services, digital products,

sharing economy, minimalism)

Automatic Social Influence

we are often influenced by stimuli outside our conscious awareness.

Informational Social Influence

Consumers accept information obtained from another as evidence about reality. Conform because they believe others interpretation of an ambiguous situation is more accurate than their own

Normative Social Influence

Beliefs about what constitutes appropriate behavior (e.g.,

clothing/personal items, gift-giving, sex/gender roles,

personal space, and hygiene)

Implies consumers will be sanctioned, punished, or

ridiculed if they do not follow norm

Pluralistic Ignorance

No one appears upset or concerned, because of this there must not be an emergency

Reference group

Person or group of people that significantly influences an individual's behavior

Aspirational Groups

Groups of which we are not

members, but we admire and desire

to emulate

Associative Groups

▪ Groups to which we belong

▪ Brand community - associative group

organized around a brand

Dissociative Groups

Groups we do not wish to emulate

Admirational Strategies

Concentrate on highly visible, widely admired figures (athletes or performers)

Associative Strategies

show "ordinary people" you relate to

Brand communities

formal or informal groups of people united by their interest in and ownership of particular products

Avoidance strategies

focus on undesirable people using competitor's product

Personal Marketing Source

Salespeople, service representatives, customer service agents, and telemarketing

Personal Non-marketing source

Family, Friends, Neighbors, Classmates, Coworkers

Impersonal Marketing Source

Advertising, Sales Promotions, Publicity, and Special Events

Impersonal Non-marketing Source

News, Reviews, program content, cultural icons, and clubs/organizations

Advantages of Sources of Influences

• Tailor message to individuals

• Gauge their comprehension

• Answer questions

• Less reactance

Disadvantages of Sources of Influence

Expensive and time consuming

the most

Product recommendations from friends and family are trusted ____ ______

Increases; decreases

The presence of peers ___________ impulse purchases, while the presence of family ____________impulse purchases

Increases

Someone purchasing next to you ___________ your likelihood to purchase

Conformity

Changing one's behaviors to match the responses of others

Compliance

Acquiescence to a request. Doing what others want us to do

Reciprocity

One should be more willing to comply with a request from someone who has previously provided a favor or concession

Motives to reciprocate

helps build trust, alleviate discomfort and aversion from unpaid debt, creation of obligation

Door-in-the-face technique

Moving from a large request to a

smaller request prompts

acceptance

• Small follow-up request seems like

a favor

That's-not-all technique

Before consumer has a chance to decide on initial offer, requester adds an additional offer

Consistency Principle

After committing yourself to a position,

you should be more willing to comply with requests

for behaviors that are consistent with that positi

Foot-in-the-door technique

Start by asking something small, and once subject agrees to small request, make a larger request. EX: signing petitions, honor codes, etc

Social Validation

We should be more willing to comply

with a request for behavior if it is consistent with

what similar others are thinking and doin

Liking

We should be more willing to comply

with requests of friends or other liked individua

Authority

We should be more willing to follow the suggestions of someone who is a legitimate authority

Scarcity

We should try to secure those opportunities that are scarce or dwindling. Ex: Deadlines or prompt limited time availability

Persuasion Knowledge

When consumers become aware that persuasion tactics

are being used on them, they might resist the persuasion

or marketing efforts

Marketing Tactics that Raise Suspicion

• Flattery

• Rhetorical questions

• Incongruent placement of brands

• Negative comparisons

• Expensive defaults

Rhetorical Questions

Questions where the answer is implicit within the question. Asked in order to make a statement. Putting "thoughts into your head"

Incongruent Brand Placement

Product placement in media can be perceived as good or bad.

Teens

Put a high value on price and convenience

• Easily switch brand preferences

• Very susceptible to peer/social influences

• Consumption is social (physical and online

Millennials

• Tech savy

• First to grow up with in-home computers

• Multitaskers with smart phones, social media,

streaming/apps

• Socially conscious

• Delaying independence (living with parents)

• More likely to buy electronics or cars rather than

homes or necessity-related things

Baby Boomers

Value Individualism and Freedom, high spending power, high brand loyalty

Gen X

Value driven, informed buyers, and interested in health

Elderly

• 65+

• Proportion growing strongly in industrialized nations

• Cognitive/perceived age often different from actual age

• Want ads to appeal to them, but not too obvious

• Have a lot of discretionary income, but:

• Often don't need to spend and careful spenders

• Have more time (use coupons, buy during off-peak)

• Declining sensory abilitie

Men

• Use heuristics to simplify decisions

• Focus on personally relevant information

• Attentive to positive emotions during consumption

(enthusiasm and strength

Women

• Use high effort decision making rules

• Focus on all types of information

• Attentive to negative emotions during consumption

(anxious or scared)

• Enjoy shopping more

Agency

tendency to define yourself by what makes you an individual. High in this means you focus on your individual accomplishments and what separates them from others

Communion

tendency to focus on other people and your relationship to them. These goals stress affiliation, fostering relationships with others, and submissiveness

Agentic, Communal

Men tend to be more ___________, and women more ___________

Culture

Accumulation of shared meanings, rituals, norms, and

traditions among members of an organization or soci

Socialization

Culture is transferred through ___________________

Individualism

Focus on differentiation, the need to be unique

Collectivism

Focus on similarity, greater need to blend in

Low Uncertainty Avoidance

Risk seeking, high

tolerance of ambiguity, few well-

defined rules

High Uncertainty Avoidance

Risk averse, low tolerance

of ambiguity, many rituals to guide

behavior

Low Power Distance

Open organizations, a lot of interaction between people of different status

High Power Distance

hierarchical

organizations, respect for authority,

acceptance of unequal reward

Masculine Cultures

Assertive, materialistic, focused on achievement

Feminine Cultures

Nurturing, high environmental concern

Psychographics

Describing customers based on their psychological and behavioral characteristics

Conspicuous Consumption

Buying luxurious things to achieve and display social status, rather than for the quality or value of the item

Materialism

Placing importance on money and material goods

Values

Abstract, enduring beliefs about the world regarding what is important, right/wrong, or good/bad

Personality

Internal characteristic that determines how individuals behave

State

temporary reaction to stimuli

Trait

enduring/stable characteristic

Need for Uniqueness

An individual's pursuit of differentness relative to

others that is achieved through the acquisition,

utilization, and disposition of goods to help

define/enhance identit

Need for Cognition

tendency for an individual to engage in and enjoy thinking

High Need for Cognition

like thinking and evaluating

Low Need for Cognition

Take shortcuts and rely on affect

Self Monitoring

Tendency to notice visual, vocal, and verbal cues for socially appropriate behavior and to modify one's behavior accordingly

High Self Monitors

• Emphasize the "public self"; socially flexible and adaptable

• React more favorably to image-oriented advertisements and

products

Low Self Monitors

• Honest with themselves; project true self and values

• React more favorably to product-quality oriented

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