consumer behavior book terms

Acculturation

The process of driving cultural change, often the result of trying to convince consumers to adopt new products within a new environment (13)

acquired needs

needs learned in response to our culture or environment (2)

Acquisition Marketing

The process of driving customers into a company’s purchase funnel, pushing them through that funnel until they make a purchase, and doing so in a cost-effective way (1)

Activities

The actions or tasks that consumers take to achieve their goals (12)

Advertising Appeal

The creative glue that hooks the reader or viewer of an advertisement by trying to connect the brand to the consumer’s wants and needs (9)

Affective Component

Represents the consumer’s emotions and feelings regarding the product or service in question (component of the tri-component attitude model) (6)

Affiliates

Independent companies that aggregate information about various product options in a category (11)

Antecedent States

The overall impact of both external and internal influences on a consumer's emotional state.(10)

Aspirational Group

A group that an individual strives to be part of, even if they are not currently members or may never achieve belonging. (8)

Attitude Toward Behavior Model

A model that reflects an individual's intention to act regarding a particular product, rather than just their general attitude toward it. (6)

Attitude Toward Object Model

A framework that helps to understand how consumers form positive attitudes about brands based on the attributes they find most significant. (6)

Behavioral Learning Theories

Theories that suggest consumer learning happens as a direct response to external stimuli, also known as stimulus-response theories. (4)

Behavioral Tendency

The range of actions performed by consumers when searching for the right product, shopping, and interacting with online or physical stores. (11)

Big 5 Personality Traits

Five major domains of personality types commonly utilized by marketers to inform design and target understanding. (5)

Agreeableness

This trait is about the degree of cooperation tactfulness, and compassion one has towards someone else (5)

Conscientiousness

This trait is about self discipline, ambition, reliability, and careful thought (5)

Extroversion

This trait is about drawing energy from social connections or interaction and is embodied by folks who are outgoing (5)

Neuroticism

this trait is about the pessimism, instability, anxiety, and often, emotional instability and elf-destructive thinking (5)

Openness to experience

this trait is about willingness to try new things, innovativeness, originality, and curiosity (5)

brand

“a name, term, design, symbol, or any other feature that identifies one seller’s god or service as distinct from those of other sellers” (AMA) critical for marketers as it conveys the intangible value and differentiation customers receive from choosing a good or service vs its competitors (1)

brand health

awareness and consideration of and affinity for a brand (1)

brand loyalty

the consumer’s affect-laden (or emotional) decision to make repeat purchases of the same brand within a specific product category (11)

brand marketing

the concept of building a differentiated, recognizable identity for your company (1)

buying process

time when the consumer considers buying a product: the process in influenced by a number of factors that impact consumer decisions, including consumer moods, reference groups, store environments, and the internet (10)

Children’s Advertising Review Unit (CARU)

a special unit of the national advertising division of the better business bureau to review advertising to children (15)

classical conditioning

focuses on the automatic response that humans develop through repeated exposure and reinforcement (4)

cognitive component

consists of a person’s knowledge and perceptions of the features of a product or service (component of the tri-component attitude model) (6)

cognitive effort

the amount of effort consumers are willing to invest in learning about a product (4)

cognitive learning

primarily concerned with how information is processed by the human mind: how it is stored, retained, and retrieved (4)

cognitive structure

the way consumers internalize information about a product (4)

communication noise

influence that can have a profound impact on marketing communication perceptions: includes psychological noise, environmental noise, physiological noise, and semantic noise (9)

conative conponent

reflects behavior, or the likelihood that and individual will take a specific action regarding the product or service in question (component of the tri-component attitude model) (6)

Conformity

one acting in a way that is similiar to those around him or her in order to gain acceptance (9)

Conspicous product

one that is consumer or used in public, so it is noticed by others (8)

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 neds, and the impacts that these processes have on the consumer and society (1)

Consumer Product Safety Commission (CPSC)

protects consumers from injury or death associated with the use of the products and works with businesses to modify the manufacturing of or to simply discontinue the use of these products (15)

consumer socialization

the providing of children with the skills, knowledge, attitudes, and experiences necessary to function as consumers (8)

culture

a group identity by shared factors such as knowledge, belief, law, morals, customs, values, norms, language, religion, cuisine, and social habits: likely the most significant external influence ona consumer’s behavior (an external influence) (13)

customer engagement numbers

tangible customer metrics gathered from observation and that are correlated with revenue and profits (11)

customer lifetime value (CLV)

a measure of how valuable a customer will be to a company over hos or her lifetime (11)

customer loyalty index (CLI)

tracks customer loyalty over time, incorporating Net Promoter Score alongside consumers’ intentions to repurchase a particular product or service as well as their receptivity to upselling (11)

Deglobalization

the process of reversing globalization- reducing the interdependence among countries on trade and investment, ultimately resulting in a reduction of interconnected consumer behavior (13)

demand landscape

a map that outlines consumers’ conscious and unconscious purchase motivations (12)

demand-first innovation

a framework that provides companies with insight into consumers’ perspective of a market category so game-changing innovation can be developed with that consumer perspective in mind (12)

Dichter’s theory of motivation

states consumer’s unconscious desires drive purchase decisions, and therefore, when making marketing products and services, companies should appeal to those desires (2)

display ads (banner ads)

often run along the top or side of a computer screen, are targeted advertisements that align with information searched for or websites visited (7)

dissociative group

a group that individuals avoid or deny connections with (8)

ego

in Freudian theory, the internal monitor that balances the impulsive needs of the id and the conservative constraints of the superego (5)

ego-defensive function

maintains that consumers’ attitudes are formed in order to protect their self-esteem or to justify taking actions that might otherwise make them feel guilty (6)

elaboration

the process by which analyzed data is structured, stored, and integrated into a consumer’s memory (4)

elaboration likelihood model (ELM)

seeks to explain how human processes stimuli (ex marketing materials) and how doing so may lead to effective attitude change (6)

emotional appeals

use imagery, copy, music, or other tactics to appeal to a consumer’s feelings about a product, service, or issue at hand (9)

emotive tendency

a consumer’s feelings toward a brand (11)

Environmental Protection Agency (EPA)

writes regulations to enforce environmental laws to ensure that the US has clean air, land, and water (15)

Ethnographies

the output of ethnographic research; ethnographic research is a type of qualitative research where researchers observe interact with consumers in their real-life environment to get a more realistic sense of how they think, act, and behave (12)

evaluative tendency

the consumers’ assessment of a brand based on a set of criteria that helps the customer understand the value the brand drives (11)

evoked set

the set of products that you already know about the options that are stored in your memory (7)

Federal Trade Commission (FTC)

the governing body that reviews and regulates advertising materials to ensure that content is true and doesn’t overpromise; established to enforce the Federal Trade Commission Act (15)

Food and Drug Administration (FDA)

responsible for ensuring the safety and efficacy of medications, medical products, and medical devices as well as for regulating the manufacturing and marketing of tobacco (15)

General Data Protection Regulation (GDRP)

sweeping legislation enacted by the European union with the goal of protecting EU citizens from privacy and data breaches in our increasingly connected digital world (15)

Gestalt Psychology

discipline in which principles attempt to understand how humans create meaningful perceptions in a world where they are often bombarded by visual stimuli (3)

goal

an ojective a consumer strives to achieve (12)

halo effect

humans’ tendency to evaluate an object, person, or place based simply on a cursory evaluation of just one or a few of its dimensions (3)

id

in Freudian theory, a human’s basic primitive and impulsive drives that we typically seek to gratify immediately (4)

inept set

essentially, the brands that the consumer would not consider for purchase because they dislike these brands or products (7)

inert set

comprised of those product options that the consumer is aware of but feels indifferent toward (2)

information analysis

represents the actions the consumer takes to select and interpret the relevant information from stimuli come across in an environment (7)

innate needs

biological needs, such as food, water, air, clothing, and shelter (2)

instrumental conditioning

based on the notion that learning occurs through a trial-and- error process (also called operant conditioning)

knowledge function

maintains that people form attitudes based on their ability to process and consume facts about the products and services they come across (6)

learning

in consumer behavior terms, the process by which consumers acquire the consumption information they apply to future purchase behavior ( an internal influence) (1)

licensing

an arrangement in which one company gives another company permission to use its brand name on products that the company itself doesn’t manufacture (3)

loyalty

a measure of how often consumers buy a given brand and the extent of their commitment ot that brand (4)

loyalty program

a structured system used to reward consumers in exchange for consumers acting in a certain way (11)

marketing communications

messages that highlight a product’s value proposition and differentiating factors; the communications consumers are inundated with on a daily basis (an external influence) (1)

marketing innovation

creating new products and services that appeal to these motives, needs, and goals (2)

marketing messages

the communications consumers are inundated with on a daily basis (an external influence) (1)

marketing mix (4 Ps)

price, product, promotion, and place (1)

Maslow’s hierarchy of needs

a pyramid model that presents 5 levels, each containing a different type of need that humans strive to achieve (2)

biological needs

the most basic needs that we, as humans, cannot live without (needs for food, water, clothing, and shelter); the first level (2)

safety needs

needs for safety and security (humans crave environments that feel safe and secure, whether that involves physical safety, financial safety, or another type of safety); 2nd level (2)

social needs

needs for connection, love, and belonging (involves making and staying connected to friends); the third level (2)

esteem needs

focus on the need to be respected by one’s self as well as others (self-esteem and a feeling of accomplishment); the 4th level (2)

self- actualization

when humans have reached their full potential; the highest level (2)

McClelland’s human motivation theory

states that people’s actions stem from one of three types of motivations: achievement, affiliation, power (2)

membership group

a group that an individual belong to; there are primary and secondary membership groups (8)

message

the thought, idea, attitude, image, or other information that a company creates to convey to the consumer how the company’s product or service can solve a consumer’s problem (9)

minimum viable product (MVP)

a new product introduced to the market with just the features needed to satisfy early adopters (3)

motivations

consumers’ internal drive to satisfy their physiological; and psychological needs and wants (1)

motives

the driving forces that compel people to act (2)

multi-attribute model

portrays consumers’ attitudes as a function of their assessments of the attributes a product has (or doesn’t have) (6)

needs

circumstances that are required to live your life; accordingly, needs direct motivations (2)

Net Promoter Score (NPS)

a measure of a customer’s likelihood of referring a brand to a friend (11)

object

in the context of marketing and consumer behavior, can be a product, brand, service, price, package, advertisement, or any other aspect of consumption (6)

observational learning

the process by which humans learn by observing the behavior of others (4)

omni-channel experience

a shopping experience available throughout multiple options including physical stores, a robust shopping experience on a company-owned website, and even through third-party retailers (10)

one-to-all communication

focuses on sharing a single message to the masses (9)

one-to-many communication

focuses on circulating a more targeted message to a small group of customers (9)

opinion leadership

the process by which an influencer, or an opinion leader, influences his or her peers, who are often referred to as opinion leaders (8)

preceptions

how consumers think of a company or product; formed through processes by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world (an internal influence) (1)