FM 205 Final Exam

needs

the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needs; never fully satisfied; new needs emerge as old needs are satisfied

motivation

the driving force within individuals that impels them to action

innate needs

physiological or biogenic needs that are considered primary needs or motives (physiological & safety)

acquired needs

learned in response to our culture or environment. They are generally psychological and considered secondary needs

goals

sought-after results of motivated behavior

generic goals

general categories of goals that consumers see as a way to fulfill their needs

product-specific goals

specifically branded products or services that consumers select as their goals

selection of goals

the goals selected by an individual depend on their personal experiences, physical capacity, prevailing cultural norms & values, & the goal's accessibility in the physical & social environment

positive motivation

a driving force toward some object or condition

negative motivation

a driving force away from some object or condition

approach goal

a positive goal toward which behavior is directed

avoidance goal

a negative goal from which behavior is directed away

rationality

implies that consumers select goals based on totally objective criteria such as size, weight, price, or miles per gallon

emotional motives

imply the selection of goals according to personal or subjective criteria

substitute goals

are used when a consumer cannot attain a specific goal they anticipate will satisfy a need; it will dispel tension; may actually replace the primary goal over time

frustration

failure to achieve a goal may result in this; some adapt while others adopt defense mechanisms to protect their ego

perception

the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world; how we see the world around us

defense mechanisms

- methods by which people mentally redefine frustration situations to protect their self-images & their self-esteem

defense mechanisms

aggression, rationalization, regression, withdrawl, projection, identification, repression

elements of perception

sensation. absolute threshold, differential threshold, subliminal perception

sensation

the immediate and direct response of the sensory organs to stimuli

stimulus

any unit of input to any of the senses

absolute threshold

the lowest level at which an individual can experience a sensation

differential threshold

minimal difference that can be detected between two similar stimuli; aka the noticeable difference

weber's law

the j.n.d. between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus; states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different

subliminal perception

stimuli that are too weak or too brief to be consciously seen or heard may be strong enough to be perceived by one or more receptor cells

aspects of perception

selection, organization, interpretation

perceptual selection

consumers subconsciously are selective as to what they perceive; stimuli selected depends on consumers' motives & previous experience

selective exposure

consumers seek out messages that are pleasant, they can sympathize with, & that reassure them of good purchases

selective attention

heightened awareness when stimuli meet their needs; consumers prefer different messages & medium

perceptual defense

screening out of stimuli which are threatening

perceptual blocking

the subconscious blocking out stimuli that are threatening or inconsistent with one's needs, values, beliefs, or attitudes

figure and ground

people tend to organize perceptions into figure-and-ground relationships; the ground is usually hazy; marketers usually design so the figure is the noticed stimuli

Elaborate Likelihood Model (ELM)

a theory that proposes two primary cognitive processing paths we use to make decisions

grouping

people group stimuli to form a unified impression or concept. Grouping helps memory and recall

closure

people have a need for closure & organize perceptions to form a complete picture

perceptual distortion

physical appearances, stereotypes, first impressions, jumping to conclusions, halo effect

stereotypes

people hold meanings related to stimuli; stereotypes influence how stimuli are perceived

jumping to conclusions

it's important to put persuasive arguments first in advertising

halo effect

a parent brand having diffusions brands that are all under the halo of the parent brand (aka umbrella positioning)

halo effect

consumers perceive and evaluate multiple objects based on just one dimension; used in licensing of names; important with spokesperson choice

positioning

establishing a specific image for a brand in the consumer's mind; product is positioned in relation to competing brands

positioning techniques

umbrella positioning, positioning against competition, positioning based on a specific benefit, finding an "unowned" position, filling several positions, repositioning

umbrella positioning

statement of slogan that describes the universal benefit of the company's offering

positioning against competition

acknowledging competing brands

perceptual mapping

a research technique that enables marketers to plot graphically consumers' perceptions concerning product attributes of specific brands

reference prices

used as a basis for comparison in judging another price

satisfaction-based pricing

recognizing and reducing customers' perceptions of uncertainly, which the intangible nature of services magnifies implemented as service guarantees, benefit-driven pricing, flat-rate pricing

relationship pricing

encouraging long-term relationships with the company that customers view as beneficial; implemented as long-term contracts, price bundling

efficiency pricing

sharing with customers the cost savings that the company has achieved by understanding, managing, and reducing the costs of providing the service; implemented as cost-leader pricing

acquisition utility

the consumer's perceived economic gain or loss associated with the purchase; function of product utility & purchase price

transaction utility

the perceived pleasure or displeasure associated with the financial aspect of the purchase; determined by the difference between the internal reference price and the purchase price

perecieved quality of services

difficult to calculate bc they're intangible, variable, perishable, or simultaneously produced & consumed

SERVQUAL scale

used to measure gap between customers' expectation of service and perceptions of actual service

price/quality relationship

the perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product)

perceived risk

the degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision

culture needs

to be a cultural characteristic, a belief, value, or practice must be shared by a significant portion of the society, the younger generation is shopping more

hispanic consumer behavior

stronger preference for well-established brands, prefer to shop at smaller stores, grocery shopping at typical american grocery stores, fashion concious

physiological arousal

a general level of activation reflected in several physiological systems

emotional arousal

like a crisis control center, the autonomic nervous system arouses the body in a crisis and calms it when danger passes

cognitive arousal

mental awareness of deviations from expectations

environmental arousal

stimuli in your environment that motivate you to spend money

ex: retail environment cues

behaviorist school

the school of thinking that states behavior is a response to stimulus and elements of concious thoughts are to be ignored

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consumer does not act but reacts

cognitive school

behavior is directed at goal acheivement. needs & past experiences are reasonsed, categorized, & transformed into attitudes & beliefs

trio of needs

power, affiliation, achievement

segmenting the working women market

stay-at-home housewives, plan-to-work housewives, just-a-job working women, career-oriented working women

goals

the sought after results of motivated behavior

positioning & how it applies to the topics in this test

positioning based on the perception of the brand, consumer motivation, consumer attitudes, etc

selective exposure

The process through which people consciously choose to get the news from information sources that have viewpoints compatible with their own.

positioning techniques

umbrella positioning, positioning against competition, positioning based on a specific benefit, finding an unknown position, filling several positions, and repositioning

value = benefits/costs

the amount of value a product has depends on the amount of benefits of the product vs. it's costs. Is the product worth the purchase based on this equation?

- the risks in buying a product aka consumer risk

functional risk, physical risk, financial risk, psychological risk, time risk

stimulus generalization

the tendency to respond to a stimulus that is only similar to the original conditioned stimulus with the conditioned response

stimulus generalization

the tendency to respond to a stimulus that is only similar to the original conditioned stimulus with the conditioned response

stimulus differentiation

- the tendency to respond differently depending upon the situation (cues); that is, response that is made under one set of circumstances but not under others.

positioning against competition

differenciating the brand from other competitive brands

Tricomponent Attitude Model

an attitude model consisting of three parts: cognitive (knowledge) component, an affective (feeling) component, and a conative (doing) component

multiattribute attitude model

a model that combines a number of pieces of information about belief and evaluations of attributes of an object

conative

The likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object

attitude toward object model

• Attitude is function of evaluation of product specific beliefs and evaluations

attitude toward object model

attitude is function of evaluation of product specific beliefs and evaluations, Useful to measure attitudes toward

attitude toward behavior model

* is the attitude toward behaving or acting with respect to an object, rather than the attitude toward the object itself
* corresponds closely to actual behavior

theory of reasoned action model

Includes cognitive, affective, and conative components

multiattribute model

includes cognitive, affective, and conative components, Includes subjective norms in addition to attitude

theory of trying to consume

an attitude theory designed to account for the many cases where the action or outcome is not certain but instead relfects the consumer's attempt to consume

attitude toward the ad model

A model that proposes that a consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure to an advertisement, which, in turn, affect the consumer's attitude toward the ad and attitude toward the brand.

issues in attitude formation

conditioning & experience, knowledge & beliefs, personal experience, family influence, direct marketing & mass media, personality factors

strategies of attitude change

1. Changing the Basic Motivational Function
2. Associating the Product with an Admired Group or Event
3. Resolving Two Conflicting Attitudes
4. Altering Components of the Multiattribute Model
5. Changing Beliefs about Competitors' Brands

cognitive dissonance

post-purchase anxiety; when customers start to feel confliciting thoughts about the product they just bought

attribution theory

the theory that we explain someone's behavior by crediting either the situation or the person's disposition

co-branding

the practice of using the established brand names of two different companies on the same product

brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

advertorial

display advertisement created to look like an article within the publication, although most publications have the words "advertisement" or "paid advertisement" in tiny print somewhere nearby

sleeper effect

* most consumers, overtime, dont really maintain either a postive or negative credability over the brand; they forget what the brand did that was so good or bad
* think about how cancel culture doesn't work on white men

beliefs

specific ideas that people hold to be true

values

the ideas, beliefs, and attitudes about what is important that help guide the way you live

customs in cultures

weddings, holidays, religious events, etc & the specific attire that is worn that would need to be purchases (ex: India's huge party wear industry)

nonverbal communication

communication using images instead of words, ex: logos

verbal communication

expressing ideas to others by using spoken or written words