Consumer Behavior Final Exam

absolute mobility

upward and downward changes in income over time

analogy

human social behavior is like a never ending play

anchoring effect

tendency to be influenced by a suggested reference point, pulling our response toward that point

aspirational reference groups

a group that we admire and desire to be like

associative reference group

a group to which we currently belong

back stage behavior

behaviors we engage in when no audience is present

collectivism

* eastern cultures
* emphasis on connections to others rather than their own individuality

compensatory consumption

the consumer behavior of buying products or services to offset frustrations or difficulties in life

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people cope with an identity threat through identity-symbolic consumption

connected function

symbolic consumer and connection to a group

conspicuous consumption

the acquisition and display of goods and services to show off one's status

decision

making a selection amount options or courses of action

dissociative reference group

a group we do not want to emulate

downward mobility

a lowering of one's social standing

dramaturgical perspective

the perspective that much of social interaction can be thought of as a play, with actors, performances, settings, scripts, props, roles, and so forth

effects of identity-symbolic consumption

1. increased loyalty
2. positive WOM
3. price premiums

endowment effect

the tendency of people to be unwilling to sell a good they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it

extended self

external objects that we consider a part of us

front stage behavior

behavior we know that others are watching that reflects internalized norms and expectations

Gambler's Fallacy

individual believes that a certain random event is less likely or more likely to happen based on the outcome of a previous even

Heuristics are

shortcuts in decision making that save mental activity

high/low pricing

a pricing strategy that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases

hot hand fallacy

a person who has experienced success with a random event has a greater chance of further success in additional attempts

Identity Salience

the likelihood the identity will be invoked in diverse situations

identity-based motivation

people engage in behaviors on perceptions of what we do shifts understanding of identity definition can be associated with both good and bad behaviors

identity-symbolic consumption

Consumption motivated by the belief that the behavior will convey particular identity information about the individual to the self or to others

impression management

a process by which people attempt to control how others perceive them

income inequality

the extent to which resources are distributed unevenly within a population

individualism

* western cultures
* emphasis on themselves rather than as a part of the group

informational influence

the extent to which sources influence consumers simply by providing information

judgement

evaluation of an object or estimate of likelihood of an outcome or event

Low Effort Decision Making

Automatic - Resource saving

* Heuristics
* Price
* Habit
* Normative
* More is better…

market maven

a consumer on whom others rely for information about the marketplace in general

mental accounting

categorizing spending and saving decisions into "accounts" mentally designated for specific consumption transactions, goals, or situations

normative influence

being a choice on others options

nudge

Any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or changing their economic incentives

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ex:

* changing location of products
* asking people to pre-commit to a goal
* changing visual guides or aids

offerings are often...

used as props to help us with impression management

opinion leader

an individual who acts as an information broker between the mass media and the opinions and behaviors of an individual or group

outgroup

a group that one does not belong to or identify with

price-related tactics

"buy the cheapest"

“use a coupon”

reference group

set of people with whom individuals compare themselves for guidance in developing their own attitudes, knowledge and/or behaviors

relative mobility

changes in rank in income distribution

role aquisition function

1. separation from old role
2. transition
3. incorporation

self importance

an exaggerated sense of one's own value or importance

self-concept

what comes to mind when one thinks on ones self; what one believes is true of oneself

social class

a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

social dilema

deciding whether to put own interests of others first

Social Influence

implicit of explicit pressures from individuals, groups and the mass media that affects how a person behaves

social mobility

passage of individuals from one social class to another

social status derives from...

occupational differentiation rather than income

status signal consumption

product or service that tells others about someones social status

System 1 thinking

Automatic, fast, little or no effort, no sense of voluntary control

System 2 thinking

slower, more conscious, logical and critical

temporal dilemma

deciding wether to put immediate interests or long term interests first

Threat Condition

disrupts their own self view, telling something negative about themselves

upper mobility

increased in social class