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Consumer Behavior Final ExamChapter 1Consumer behavior perspectives:2 main perspectivesHuman thought and actions: actions, reactions, consequences decision making and product use Human behaviorField of study: body of knowledge accumulated in explaining the actions, reactions, and consequencesAcademic side of thingsConsumer behavior as human behavior:Human behavior with an element of consumptionSet of value-seeking activities that take place as people go about addressing and attempting to address realized needsA process kicks in as the consumer sets out to find ways to fill the need – thinking, feeling, behaving, culminating in valueConsumptionProcess by which goods, services, or ideas are used and transformed into valueMarketer and the consumer interact to produce valueWhat/who defines value?The consumer defines valueWho the f*** is Jackson Pollock documentary exampleSame painting worth dramatically more because of valueThe basic consumption processUnderstand consumer behavior as a field of study, and give an example:Is the science of studying how consumers seek value in an effort to address real needsAs a field of study, consumer behavior is a very young field – books on consumer behavior date from the 1960sConsumer behavior researchers continue to expand the knowledge base at a fast paceExamples:Calories on menus in recent yearsNapsterBurning manQuestions to consider when looking at competition in the marketplace:How competitive is the marketing environment? (More competition better treatment)How dependent is the marketer on repeat business? (More dependent we’ll get better treatment)Examples:Example of good treatment: ZapposA lot of competition, business depends on return customersExample of bad treatment: DMVBecause they don’t have competition, they don’t care if we come back or notSome terminology:Consumer orientationA business’s priority is consumer value and satisfactionMore focused than market orientationMarket orientationOrganizational culture emphasizing consumer valueWhole companyStakeholder marketingRecognizes that all stakeholders are involved in and/or affected by the firm’s marketing in some wayRelationship marketingA firm’s marketing activities aim to increase repeat businessAim to get to know you, etc.Example: Chic-Fil-A, NordstromTouchpointsDirect contacts between the firm and a customerWhy study consumer behavior?Input to business/marketing strategyForce that shapes societyInput to making responsible decisions as a consumerIn your opinion, why do people buy? (Goes along with first reason to study CB) To buy something, a consumer gives up resources in the form of time, money, and energy in return for the product/serviceA product is a potentially valuable bundle of benefitsEmphasis lies in the value the customer receives rather than the product itselfConsumer behavior and society (goes along with second reason to study CB)Consumer behavior creates the society in which we liveServes as an important source of input to public policyConsumer behavior and personal growth (goes along with third reason to study CB)Studying consumer behavior helps consumers make better decisions by understanding:Consequences of poor budgetingEnvironmental effectsRole of emotionsSocial influencesDifferent approaches to studying CB (and exhibit 1.5):Qualitative research“Interpretive research”Underlying meanings and motivationsResearcher is dependent on studyInvolves interpretations of WORDSEx: interviewsQuantitative researchNumerical dataEnables researchers to test hypothesesResearcher is independent from studyNUMBERS as dateEx: surveysTypes of qualitative researchIn-depth interviewsOne on one interview between researcher and informantDetailed information about a person’s thoughts and behaviorFocus groupsSimilar to an interview but with several people at a timeEthnographyFirst hand observation of daily participationParticipation is keyThyroff’s favoriteEx: Moen watching people shower exampleAssociation testsA measure within social psychology designed to detect the strength of a person’s automatic association between mental representation of objects (concepts) in memoryProjective techniquesLearn about hidden emotions about somethingFor example, look at a scene and say what happened afterwardOr draw a person that wears this brandNetnographySimilar to ethnography, only it is conducted by observing and participating with groups onlineTypes of quantitative researchSurveysExperimentsSame as survey, but has some type of manipulationDatabase miningStructural equation modelingUnderstand some of the current trends in CB that make it dynamic:InternationalizationTechnological changesChanging communicationsChanging demographicsChanging economyChapter 2The Consumer Value Framework Represents consumer behavior theory illustrating factors that shape consumption-related behaviors and ultimately determine the value associated with consumptionBreaking down the components of the theory:Relationship quality and customer relationship management:Reflects connectedness between a consumer and a retailer brand or serviceEx: Chic-Fil-AConsumption process (and factors that influence this process):Deciding Failures influencing process internal & externalInternal influencesThings that go on inside of the consumer or that can be thought of as a part of the consumerThe psychology of the consumer:CognitionThe thinking or mental processes that go on as we process and store things that can become knowledgeAffectThe feelings experienced during consumption activities or associated with specific objectsThe personality of the consumer:Individual differencesIncludes things like personality and lifestylesExternal influencesSocial environmentThe people and groups who help shape a consumer’s everyday experiencesSituational influencesUnique to a time or place that can affect consumer decision making and the value received from consumptionDefine value and relevant value and understand the value equation:Value: personal assessment of the net worth of a consumer obtaining from an activityRelevant value: received from activities involving infractions between consumers and the firm or its productsTypes of valueUtilitarian valueDerived from a product that helps the consumer solve problems and accomplish tasks that are part of being a consumerHedonic valueThe immediate gratification that comes from experience of some activityTotal value conceptPractices when companies operate with the understanding that products provide value in multiple waysChapter 3Describe learning and how it relates to value. Additionally, define the two different types of learning:Learning: a change in behavior resulting from the interaction between a person and a stimulusConsumer learning begins with perceptionTwo types of learning:Intentional learning – set out to specifically learn about a certain subjectExample: taking consumer behavior marketing classUnintentional learning (2 types)Classical conditioning: a change in behavior that occurs simply through associating some stimulus with another stimulus that naturally causes a reactionExample: when a consumer simply reacts/responds to the marketing environment Unconditioned stimulus: something that evokes an emotional response (we don’t train ourselves to be hungry)Unconditioned response: emotional response elicited by an unconditioned stimulus (stimulus: sex, response: desire)Neutral stimulus: in general = brand (package, colors, logo, product) Pairing: what we want associated (unconditioned stimulus and neutral stimulus)Conditioned stimulus: neutral stimulus is how a sign (or symbol of something) – result of pairing the unconditioned stimulus and neutral stimulusConditioned response: the feeling evoked by conditioned stimulus (we buy the product and feel good) Instrumental/operant conditioning: behavior that is conditioned through reinforcement Positive reinforcers come in many forms in the consumer environmentEx: getting coupons with your receiptSkinner BoxDefinitions for instrumental/operant conditioning:Shaping behaviorProcess through which the desired behavior is altered over time in small increments Ex: Big Bang Theory – feeding Penny chocolatePunishersStimuli that decreases the likelihood that a behavior will occur againEx: bbt: spray bottleNegative reinforcementRemoval of bad stimulus as a way of encouraging behaviorEx: if I don’t argue = no spray in the face = I won’t want to argueDefine perception:In marketing, perception is more important than realityPerception: a consumers awareness and interpretation of realityExample: a cat looks in mirror and sees a lionElements of consumer perceptionExposureThe process of bringing some stimulus within the proximity of a consumer so that it can be sensed by one of the five human sensesSensation is the consumer’s immediate response to this informationEx: we see at least 5,000 advertisements a dayAttentionThe purposeful allocation of information-processing capacity toward developing an understanding of some stimulusComprehension When consumers attempt to derive meaning from information they receiveEx: we comprehend a lot less than the 5,000 advertisements we see a day List and define the phases of the consumer perception processSensing, organizing, reactingSensing:Consumer senses stimuli to which he is exposedEx: trying on clothesOrganizing: (cognitive)Human brain assembles the sensory evidence into something recognizableSimilar to sorting tasksPossible reactions:Assimilation: readily recognize the stimulation Accommodation: when stimulus some but not all characteristics you are used toContrast: when you don’t recognize the stimulus at allReacting If an object is successfully recognized, chances are some nearly automatic reaction takes placeExample: see brake lights and you immediately slow downSelective perception:Selective exposureInvolves screening out most stimuli and exposing oneself to only a small portion of stimuliSelective attentionInvolves paying attention to only certain stimuliSelective distortionProcess by which consumers interpret information in ways that are biased by their previous held beliefsDefine and explain subliminal processing and persuasion:Subliminal processingThe way in which the human brain senses low-strength stimuliStimuli that occur below the level of conscious awarenessSubliminal persuasionBehavior change induced or brought about based on subliminally processing a messageMovie theater “eat popcorn” flashed on screen for example BUT subliminal persuasion has never actually been provenIf something is above your JND, then it can’t be subliminalJust Noticeable Difference (JND)Represents how much stronger one stimulus has to be relative to another so that someone can notice that the two are not the sameJND: marketing implicationsPricingQuantityQualityAdd-on purchasesWeber’s Law: the ability to detect difference between two levels of a stimulus is affected by the original intensity of the stimulusJust Meaningful Difference (JMD): represents the smallest amount of change in a stimulus that would influence consumer consumption and choiceNeed to know the consumer’s threshold where JND, Weber’s Law, and JMD come inBe able to define and contrast the two different types of memoryExplicit memoryMemory for information one is exposed to, attends to, and applies effort to rememberOne we’re most familiar withImplicit memoryRepresents stored information concerning stimuli one is exposed to but does not pay attention toCreates pre-attentive effectsOften still store this memoryEx: keyboard – know where keys are but can’t recall them Mere exposure effectKey with implicit memoryRepresents another way that consumers can learn unintentionallyConsumers will prefer stimuli to which they have been exposedThat is, once exposed to an object, a consumer exhibits a preference for the familiar object over something unfamiliarRestaurant name exampleTeacher exposed students to it twice in a semester – preferred the only repeated name because they had been exposed to it beforeMere association effectOccurs when meaning transfers between two unrelated stimuli that a consumer gets exposed to simultaneously Example: baking soda – very powerful cleaning agent, but now also used in toothpaste, laundry detergent, cat litter, etc. Associate it with being very clean Product placementsThrough which promotions van impact implicit memory among consumersInvolves branded products placed conspicuously in movies or TV shows Ex: Absolut Vodka in Sex & the City episodeChapter 4Factors affecting consumer comprehension Characteristics of the messagePhysical characteristics: the elements of a message that one senses directly Intensity Volume on commercials louder than TV showsColorComprehend meaning . . . red power/erotic; yellow happiness, etc.Font Helvetica happy/trustworthy imageGoogle changed fontNumbersSignify technology/advancement iPhone 5, 6, etc.SpacingBetter to show 3 ads (30 seconds each) over a 3 hour period than 1 90 second adPistachio 15 second ads spaced out during the Super Bowl“Golden ratio” perfect spacing found in natureShapeSimple – complexity The simpler the message, the more likely a consumer develops meaningful comprehensionMac desktop vs. Dell desktopLow (green), medium (orange), high (red)Coloring for salt, sugar, etc. Message congruityRepresents the extent to which a message is internally consistent and fits surrounding informationCoke Zero diet drink for menBlack/red color, coke zero ad at sporting events, etc.Dr. Pepper tried to copy Example: Red Bull would use upbeat musicFigure The focal image of the object intended to capture a person’s attentionGround In a message, everything besides the figure should be less important and simply represent the groundMessage sourceCan influence comprehensionSource influences comprehension to vary degrees based upon:Likability AttractivenessExpertiseTrustworthiness (credibility) UnbiasedMessage receiver (person intended to hear the message) characteristicsIntelligence/ability How well educated they are increase education, increase comprehensionPrior knowledgeMessages comprehended if you have prior knowledgeInvolvementThe more attention we give somethingFamiliarity/habituationThe process by which continuous exposure to a stimulus affects the comprehension of and response to some stimulusMultiple exposures = higher comprehensionBut overexposure = ignoring the messageExpectationsBeliefs of what will happen in a future situationPhysical limitsIf you can’t hear you won’t be able to interpret an auditory message . . . same goes with visual limitationsBrain dominanceThe phenomena of hemispheric laterizationRight brain dominant: visual processor comprehend better when you see a visualLeft brain dominant: verbal processing auditory Songs and jingles Environmental characteristicsInformation intensity The amount of information available for a consumer to process within a given environment Ex: tons of salad dressing options at a grocery store With high information intensity we experience lower price sensitivity FramingA phenomenon in which the meaning of something is influenced (perceived differently) by the information environment Outside environment can change how we perceive infoThe way we frame something is how we perceive itEx: reframe of hotel water use in Australia – “other countries use less water than us, let’s be better” Priming: seeing something that brings up other related thoughtsTimingBoth the amount of time a consumer has to process a message and the point in time at which the consumer receives the messageEx: billboards with a lot of information hard to comprehend on a quick passAlso think of as a coffee ad in morning time of day or time of yearAnother example: soup ads in winterUse internet/magazines for longer information processingMemory Process by which knowledge is recorded Mental processes assisting learningRepetitionA process in which a thought is held in short term memory by mentally repeating the thoughtWeakest form of assisted learning really easy to mess upDual codingA process in which two different sensory “traces” are available to remember somethingThink cow ads chic-fil-a or McDonalds ads jingleMeaningful encodingA process that occurs when preexisting knowledge is used to assist in storing new information8675309 license plate associate with songChunkingA process of grouping stimuli by meaning so that multiple stimuli can become a single memory unitBy separating disparate individual elements into larger blocks, information becomes easier to retain and recall (phone #, social security #, pill color when taking antibiotics last 6 a different color)Define and describe elaborationExtent to which one continues processing a message even after he/she develops an initial understanding in the comprehension stagePersonal elaborationWhen a person imagines himself or herself associating with a stimulus being processedThis provides the deepest comprehension and greatest chance of accurate recallRemember a time when . . .Associative networkA network of mental pathways linking knowledge within memoryThink of as a family treeSouthwest Airlines bags fly free, no assigned seats, nice/friendly flight attendants (schema)Declarative knowledgeRefers to cognitive components that represent factsRepresented in an associative network when two nodes are linked by a pathNodes: represent concepts in the network (circles)Paths: show the association between nodes in a network (lines)Cognitive schemasSchemaA type of associative network that works as a cognitive representation of a phenomenon that provides meaning to that entityExemplarA concept within a schema that is the single beset representative of some categoryFast food: McDonaldsPrototypeCharacteristics more associated with a conceptAdditional definitionsScriptA schema representing an eventEpisodic memoryThe memory for past events, or episodes, in one’s lifeNostalgic things stored here get glorified over timeSocial schema Aka social stereotypeCognitive representation that gives a specific type of person meaningChapter 5MotivationsThe inner reasons or driving forces behind human action as consumers are drive to address real needsDescribe Maslow’s Hierarchy of Needs and how it affects motivation:Utilitarian motivationA drive to acquire products that consumers can use to accomplish thingsEx: grocery shopping to cross things off a list, check-list mentalityUtilitarian benefits in marketing:Obtaining monetary savings (ex: couponing)Reducing search and decision costs (ex: Kayak)Obtaining improved product quality made possible by a price reduction that allows consumers to buy superior brands they may not otherwise purchaseHedonic motivationInvolves a drive to experience something personally gratifyingEx: shopping for pleasureHedonic benefits in marketing:Accomplishing a sense of being a wise shopper when taking advantage of sales promotionsAchieving a need for stimulation and variety when trying a brand that might not be purchased . . .Explain consumer involvementDegree of personal relevance a consumer finds in pursuing value from a given consumption actTypes of consumer involvement:ProductsTime thingShopping Situation Don’t care about unless it is affecting you at the momentEx: don’t care about cars, car breaks down now you care a lot about learning about carsEnduringSomething we likeLong-term relevanceSome hedonic value usually associated with itEmotionalMost fuzzy/hard to explainRepresents how emotional we get during a consumption activityBeing broken down over next couple slidesEmotional involvementThe type of deep personal interest that evokes strongly felt feelings associated with some object or activity Example: being attached to your hairdresser Emotional expressiveness Extent to which a consumer shows outward behavioral signs and otherwise reacts obviously to emotional experiencesDegree to which we outwardly show our emotionsEmotional intelligenceCapture one’s awareness of the emotions experienced in a situation, and an ability to control reactions to these emotionsAbility to control reactionsExplain the multiple elements that emotional intelligence consists of:Explain semantic wiringConsumers link concepts for memory retrieval The active process and storage of knowledge is influenced by emotionsWhen marketing presents a product that evokes emotions, consumer recall is likely to increaseMood-congruent recallEvents are associated with moodsWhen a mood can be controlled by marketing, consumers evaluations of a product can be influencedNostalgiaEvents in the past may be remembered more positively than they were in realityConsumers can make purchases based on nostalgic feelings brought up about the past by the productEx: child of the 90s Internet Explorer commercialExplain the schema-based affectEmotions become stored as a part of the meaning for a categorySelf-conscious emotionsSpecific emotions that result from some evaluation or reflection of one’s own behaviorInclude pride, shame, guilt, and embarrassmentProduct contaminationThe diminished positive feelings someone has about a product because another consumer has handled the productChapter 6: Personality, Lifestyle, and Self-ConceptPersonalityTotality of thoughts, emotions, intentions, and behaviors that a person exhibits consistently as he or she adapts to his or her environmentSome personality qualities include: Unique to individualCan be conceptualized as a combination of specific traitsTraits are relatively stable and interact with situations to influence behaviorsSpecific behaviors can vary across timeWhat is the psychoanalytic approach?Applicable to both motivation and personality inquiryId Focuses on pleasure-seeking and immediate gratificationDevil side of personalitySuperegoMotivates behavior that matches societal norms and expectationsPerfect side of us, focus on long-term goalsAngel side of personalityEgoFocuses on resolving conflictsSettle conflicts between superego and idWhat is the trait approach?A distinguishable characteristics that describes one’s tendency to act in a relatively consistent mannerDiscuss important traits studied in marketing:Value consciousness Tendency for consumers to focus on maximizing what is received from a transaction as compared to what is givenUtilitarian benefits Ex: extreme couponingMaterialism Extent to which material goods are important in a consumer’s lifeMore money, more problemsInnovativenessDegree to which consumers are open to new ideasHow quickly consumers adopt to buying a new product or service, or experiences early in their introduction Need for cognitionDegree to which consumers tend to engage in effortful cognitive information processingNeed information, pay attention to products and problems search on AmazonCompetitivenessDefined as an enduring tendency to strive to be better than othersSelf monitoringTendency for consumers observe and control behavior in ways that agree with social cues and influenceSensitive to other people’s opinionsAlter their own behavior to fit inDefine demographicsObservable statistical aspects of populations including such factors as age, gender, income, race, etc. Can be used in conjunction with psychographic analysisDefine psychographics and lifestyles:Way consumer lifestyles are measuredLifestyles = way consumers live and spend their time and moneyUseful in identifying viable market segmentVALSStands for “Values and Lifestyles”Survey consumers using AIO statements, which are used to gain an understanding od consumer’s activities, interests, and opinionsClassifies consumers into eight distinct segments based on resources available to the consumer primary motivationsPRIZMStands for Potential Ratings Index by ZIP marketPeople with similar backgrounds tend to live close to one another You are where you liveBirds of a feather flock togetherPeople with similar backgrounds tend to live in the same areaDefine self concept and understand what it is composed of:Totality of thoughts and feelingsActual self:How we see ourselvesIdeal selfWhat we’d like to becomePerceptionSocial selfHow others think of youIdeal social selfHow we wish others perceived usPossible selfWhat we think we are capable ofLong term ideal image of one’s selfWhat we can become one dayExtended selfMost important in marketingPossessions that we own that help usFrom our self perceptions**ADD GRAPH (not really graph just little things in margins)**Self-esteemPositivity of an individual’s self-conceptBody esteemPositivity with which one holds their body imageSelf conceptProposes that much of the consumer behavior can be explained by the congruence (match) between a consumer’s self-concept and the image of typical users of a focal productChapter 7: Attitudes and Attitude ChangeAttitudesRelatively enduring overall evaluations of objects, products, services, issues, or peopleAdditional definitions:Attitude trackingThe extent to which a company actively monitors its customers’ attitudes over timeEx: Clemson social media centerAttitude-behavior consistency The extent to which a strong relationship exists between attitudes and actual behaviorDescribe the functions that attitudes perform:Attitudes perform 4 functionsUtilitarian functionBased on function of reward and punishmentDo things that make you happy more oftenMaximize benefits, minimize harmKnowledge functionStored attitudes to simplify decision making processHelps save time, helps find things we like quicklyValue-expressive functionThings that enable us to express our core values or our self-concept to othersEx: TomsSay something about who we areSimilar to idea of bumper stickers or what we like on FacebookEgo-defensive functionPositive attitude toward things that help our egoNegative attitude toward things we don’t likeAttitudes work as a defense mechanism for the consumerDescribe several attitude theoriesAttitude-Toward-the-Object (ATO) approach (aka Fishbein model)Proposes that three key elements be assessed to understand and predict consumer behavior:Consumer beliefs about attributesStrength of the consumer beliefHow strongly we feel about a brand having those attributes we wantEvaluation of the attribute Gym exampleAttitude Toward the Object approachChanging attribute beliefsChanging the evaluationsAdding beliefs about the new attributesBehavioral influence approachDirectly changing behaviors without first attempting to change either beliefs or feelingsBehavior change can precede belief and attitude changeChanging schema-based affectSchema-based effect refers to the idea that schemas contain affective and emotional meaningsIf the affect found in a schema can be changed, then attitude toward a brand or product will change as wellElaboration Likelihood Model (ELM)Illustrates how attitudes are changed based on differing levels of consumer involvement According to ELM, a consumer begins to process a message as soon as its receivedSocial Judgment TheoryConsumers compare incoming information with existing attitudes about a particular object or issue AssimilationMessage falls within the latitude of acceptanceContrast effectMessage is perceived as falling in latitude of rejectionMessage appealsHumor appealsCan hurt credibility if done too much or done poorlyWhen ads are humorous it usually aids persuasionSometimes distracting from the messageLeaves positive attitudeSex appealsYou want this to be subtle – if not subtle is can create negative feelingsIf done too much it can become humorous (ex: Axe or Paris Hilton burger commercial) Fear/guilt appealsTug at our heart stringsUsually good if they’re subtleIneffective if the brand lacks credibility or if they seem manipulativeMost effective when give a problem and then a way to prevent it, or a solution Ex: Sara McLaughlin dog commercialsViolence appealsShown to have the same effect as violence itself Message constructionConclusion drawing Gives you a moment to draw your own conclusions and then tells you the conclusionComparative advertisementsSome of the most effective forms of advertising if you can show credibility Needs to be believable Creates stronger purchase intentionsCreates stronger brand recollectionMessage structureWhere your ad is placed makes a big deal, saying beginning would be the best . . .But people more often believe being at the end is best Primacy effectPresenting the strongest arguments at the beginning of the message, whereby information presented first is most effectiveRecency effectPutting the strong points at the end, whereby the last arguments are the most persuasive Middle gets lost Chapter 8: Group and Interpersonal InfluenceReference groupA group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behaviorGroup influenceRefers to the ways in which group members influence the attitudes, opinions, and behaviors of others within the groupTypes of groups:Primary groupIncludes members who have frequent, direct contact with one anotherEx: fraternities, sororities, familySecondary groupInteraction within the group is much less frequent than in a primary groupEx: Brand communityIE: Harley Davidson, Apple, JeepFormal groupA group that has no membership or application requirementsEx: group you tailgate withAspirational groupA group in which a consumer desires to become a memberAppeals to our ideal self – what we want to beDissociative groupA group to which a consumer does not want to belongOpposite of aspirational groupWhat is conformity?Occurs when an individual yields to the attitudes and behaviors of other consumers Similar in some ways to the concept of persuasionPeer pressurePressure an individual feels to behave in accordance with group expectations Social powerRefers to the ability of an individual or a group to alter the actions of others5 different types of social power we can haveReferent powerAbility for a leader to influence followers because the followers have a lot of love/respect for the leaderEx: celebrities have referent powerEx: Thyroff learning about NFL to fit in with neighborsLegitimate powerAssociated with individuals in an actual position of authority and power In levels sometimesEx: coach, bossExpert powerWhen individuals (or even group) have power by using their expertiseReward powerWhen you have influence over a group because you have the ability to reward peopleCoercive powerExerted when members fail to meet expectations or rulesSomeone who can fire you or kick you off team (if you aren’t doing well) has this powerBe able to describe social media and social networks Social media Media through which communication occursSocial networks Networks of consumers that are formed based on common interest, association, or goals Ex: LinkedIn, Facebook, Instagram, TwitterWhen it comes to making a purchase decision:Study done by Amazon40% of people are influenced by advertising70% of people are influenced by Amazon reviews93% of people are influenced by friends on social mediaUnderstand how Social Media has impacted breaking news and revolutionsSocial media, faster than the news Fastest news is now out of social mediaEx: Boston Marathon bombing videoSocial media to organize revolutionsEx: Egyptian revolutionsWord of mouthInformation about products, services, and experiences that is transmitted from consumer to consumerSatisfied word of mouth = more likely to share positive word of mouthNegative word of mouth stays with someone longer (United Airlines broke guitar example)Two types:OrganicNaturally, genuinely want to share with friends because you liked it and want to shareAmplifiedForced, incentive to do this, marketer somewhere encouraging you to do it (ex: include a hash tag)Buzz marketingIncludes marketing efforts that focus on generating excitement that is spread from consumer to consumerEx: Ikea, 3 billboards in 1Stealth marketingConsumers are completely unaware that they are being marketed toIn movies, music festivalsHousehold decision-makingThe process by which household units choose between alternative courses of actionDictate what can an cannot consumeWhat is traditional family household composed of?At least two people who are related by blood or marriage who occupy a housing unitNuclear family: mom & dad & kids individualistic familiesExtended family: grandparents & grandchildren included collectivist countriesEmerging trends in family structureNontraditional household arrangementsBlended familiesConsist of previously married spouses and their childrenSame-sex marriagesWomen are making more money less dependence on menLost of unmarried women with babies27% single parent householdYoung adults have more purchasing powerConsumer doppelganger effect – parents matching clothes with their kidsUS marriage average age26.5 for women29 for menHousehold purchase rolesInfluencerThe person in the household who recognizes a needProvides information about a potential purchase to othersGate keeperThe person who controls information flow into the householdMom doesn’t allow kids to put certain food in the cartPrivacy controls on TVDecision-makerThe person who makes the final decision regarding product purchase or non-purchaseDiscussion, solution made by both partiesPurchaserThe person who actually buys the product under considerationTED talk we watched in classJames SurowieckiTsunami videosTalked about groups being smarter together vs. groups being dumb togetherStronger collectively as a group? Or worse off collectively as a group?Chapter 9: Consumer CultureWhat is consumer culture and consumer culture theory?Consumer culture: social arrangement in which the relations between lived culture and social resources are mediated through marketsConsumer culture theory: marketing school of thought interested in studying consumer culture Culture performs the following functions to shape the value of consumer activities:Gives meaning to objectsDiamonds on engagement rings not a huge thing before WWIIGives meaning to activitiesWhen you eat dinner?Average work weekFacilitate communicationMeeting someone for the first time (handshake, kiss on the cheek, small gift)Cultural normsRule that specifies the appropriate behaviors in a given situation with a specific cultureWear clothes/shoes to class, Miley Cyrus breaks normsCultural sanctionsPenalty associated with performing a non-gratifying or culturally inconsistent behaviorDescribe where culture comes from Ecological factorsTraditionTalked about Clemson traditionsDescribe the five main dimensions of cultural values:IndividualismThe extent to which people are expected to take care of themselves and their immediate familyMasculinityCaptures the distinctions existing in societies based on mannerism typically associated with male traits (ex: valuing assertiveness and control) over traditional feminine traits (ex: caring, conciliation, and community)Power distanceIs the extent to which authority and privilege are divided among different groups within society Ex: India – high power distance, USA – low power distance “American Dream”Uncertainty avoidanceDescribes the degree of which a consumer is uncomfortable with things that are ambiguous or unknown, and prefer to play it safe Ex: Iceland ranks high in this – they believe in elves and fairies, etc. Long-term orientationReflects values consistent with Confucian philosophy and prioritization of future rewards over short-term benefitsDescribe the different ways that culture is learnedSocialization/enculturationSocialization: learning through observation and the active processing fo information about everyday experienceEnculturation: the way a person learns his or her native cultureAcculturationProcess by which consumers come to learn a culture other than their native cultureEthnic identificationThe degree to which consumers feel a sense of belonging to their cultureConsumer ethnocentrism The belief among consumers that the products that come from their native land are superior to other productsPeople who acculturate quickly:Female Young Low ethnocentrism Low ethnicPeople who acculturate slowly:MaleOlderHigh ethnocentrismLow ethnic identificationWhat comprises the quartet of institutions and what are they responsible for communicating?Family Table mannersSchoolStudy habits, can teach us about a culture (ex: blue laws aka don’t party on Sundays)ReligionObserve and learn, how to live your lifeMedia – learn about slang, media, fashionModeling Process of imitating others’ behaviorShapingConsumers’ behaviors slowly adapt to a culture through a series of rewards and sanctions Verbal communication Transfer of information through either the literal spoken or written wordDialects A particular form of a language that is peculiar to a specific region or social groupEx: English in US isn’t the same as English in UKTranslational equivalenceExists when two phrases share the same precise meaning in two different culturesMetric equivalenceUse of numbers to represent quantities uniformly across culturesGlobishReduces the English vocabulary to around 1500 wordsBut need to be careful in translationEx: clip from the officeNon-verbal communication:Information passed through some nonverbal act or communication that does not involve the literal spoken or written world TimeEx: in US on time is like 10 minutes early, Mexico on time is like 20 minutes lateMannerisms/body languageFacial expressions, posture, etc.SpaceEx: we have a lot of space in US, Hong Kong very little space and talk very close to each otherEtiquette/mannersEx: in some Asian countries you are expected to bring a gift to meetingsAgreement Ex: head nod and thumbs up in USBut this means thumbs up means F off in Middle EastRelationshipsPower distance and what is appropriateSymbolsEmerging cultures:BRIC marketsBrazil, Russia, India, and ChinaVery large middle class and emerging economies ChindiaCombined market and business potential of China and IndiaGlocalizationRepresents the idea that marketing strategy may be global but the implementation of that strategy at the marketing tactics level should be localEx: McDonald’sLocations all over the world and they blend to fit into the local areaAlso menus are different around the worldBut, always know its McD’s because of the M archesChapter 10: MicroculturesMicrocultureA group of people who share similar values and taste that are subsumed within a larger cultureDescribe how microculture plays a role in culture and consumer behavior:Culture is a universal phenomenonIndividuals may belong to many cultural groups at once (these groups may fluctuate) Culture is hierarchical smaller culture groups (microcultures) leak to one larger cultural groupMicroculture roles and valueEach microculture has certain role expectations for its membersRole conflictA situation where a consumer experiences conflicting expectations based on cultural expectationsDivergenceA situation in which consumers choose membership in microcultures in order to stand out or define themselvesWhat is the nine-nation approach to segmentation?Consumer preferences vary by regionIdentifies 9 geographical regions that share similar consumer value PRIZM is better and more updatedSex roles & microcultureRefers to the societal expectations for men and women among members of a cultural groupMarketers must be aware of theses since they are linked to purchasing behaviorWill differ from culture to culture and changes over time (US is very masculine)Describe age-based microculture:People of the same age tend to share similar values and consumer preferencesEspecially true if it seems to apply across nationalities leading to a world teen cultureGeneration microcultureCohortA group of people who have lived the same major experience, which end up shaping their core valuesMarketers pay close attention to generational effects in order to successfully promote products to earn cohort (Millennials)Religious microcultureRepresents one of the key institutions that shape consumer cultureAffiliation with a religion provides a basis for microculture within national or regional culturesParts of microculture than can impact daily lifeWeekend daysSunday vs. Friday – Saturday nightMaterial acquisitionsBible vs. Torrah vs. anything (Christmas trees) Food and beverage consumptionAlcohol/beef/cultureBudget allocationsClothing choicesDay to day clothing / clothing for worshipEthnic microcultureHispanic cultureRepresents over 15% of US population African American cultureRepresents about 13% of US populationAsian cultureRepresents 4.4% of the US populationIncreasing cultural diversityBicultural: many people don’t have just one raceStreet microculturesMicrocultures that group around any minor phenomenon such as sports or musicThey can grow out of any consumer activity that brings consumers together with something in commonTrends affecting consumer behavior:Declining birth rates:Contributes to the imbalance in the number of men and women in a countryIncreasing consumer affluence:Combination of working couples and lower birth rates has led to greater levels of thisIncreasing life expectancyBaby population is expected to dramatically affect business practices for many years to comeIncreasing cultural diversity Through immigration and the growth of microcultures“Do it for Denmark” campaignNegative birth ratePredicted the first person to live to 200 has already been bornChapter 11: Consumer SituationsDefine situational influence and list the three situational influence categoriesSituational influences: contextual effects independent of enduring consumer, brand, or product characteristicsSituational influence categories:TimePlaceConditionsTime and consumer behaviorTime pressureAn act based on some real or self imposed deadlineSense of urgencyChange from hedonic utilitarianSeasonalityRefers to regularly occurring conditions that vary with the time of the yearCircadian cycleRefers to the rhythm of our bodies that vary with the time of dayAdvertiming The running of advertisements primarily at times when consumers will be most receptive to the messageWhat is shopping and what are some examples of shopping activities?Do you have to buy to shop?Is a store necessary for shopping?What motivates consumer shopping?AcquisitionalActivities oriented toward a specific intended purchase or purchasesEx: I have a headache . . . I am going to buy Advil EpistemicActivities oriented toward acquiring knowledge about productsEx: AmazonExperiential Recreational oriented activities designed to provide interest, excitement, relaxation, fun, or some other desired feelingHedonicEx: window shoppingImpulsiveSpontaneous activities characterized by a diminished regard for consequences and a desire for immediate self-fulfillmentWalmart $5 video binsShopping valueDefine PSV: Personal Shopping ValueOverall subjective worth of a shopping activity considering all associated costs and benefitsUtilitarian PSV:Acquisitional Hedonic PSV:Experiential valuesRetail personalityThe way a retail store is defined in the mind of a shopperFunctional qualityWhen quality is emphasized by a store using things such as a wide selection of goods, low prices, guarantees, and knowledgeable employeesFunctional quality WalmartAffective quality When quality is emphasized by store using a unique environment Affective quality Whole FoodsDefine impulsivityRepresents how sensitive a consumer is to immediate rewardsConsumer self-regulationTendency for consumers to inhibit outside, or situation influences from interfering with shopping intentionsAction-orientedConsumers that have a high capacity to self-regulate their behaviorState-orientedConsumers that have a low capacity to self regulateImpulse buy very often Understand the three things that make compulsive behavior different from impulsive behaviorCompulsive CB is:HarmfulDoesn’t lead to any rewardFinancial issuesUncontrollableDriven by chronic depressionEx: hoarders, gambling (addictive)Servicescope Physical environment in which consumer services are performedAtmospherics Feelings created by the total aura of physical attributes that comprise the physical environmentElements: odors, music, social settingFit:Appropriateness of an element for a given environmentCongruity:Congruity of elementsCan include elements such as:OdorsSmell citrus makes us want to buy moreMusic Abercrombie/HollisterIncreases perception of qualityPop music gives us perceptions of discountsColorBlue and warm colors influence people to want to buy moreMerchandisingProduct placement shelving in super marketsSocial settingDensity of people has a nonlinear effectWhen a store is empty or crowded people are uncomfortableSource attractivenessDegree to which a source’s physical appearance matches a prototype for beauty and elicits a favorable or desirable responseSocial comparisonNaturally occurring mental personal comparison of the self with a target individualDescribe antecedent conditions and understand the four main types of antecedent conditions:Antecedent conditions are what we bring to the shopping environmentFour main types: economic resources, orientation, mood, & security and fearfulnessEconomic resources: how much money do you have to spend?Buying power: how much money do you have to spend?Consumer budgeting: how do you plan to spend what you have?Orientation: what are you shopping to do?For fun, for work, for something specific?MoodExaggerating everything if you’re in a rush and the check out line is really longSecurity and fearfulness:Crime, vandalism, etc. Chapter 12: Decision Making: Need, Recognition, & SearchUnderstand the activities involved in the consumer decision-making process:Understand the three main things associated with decision making and choice:ValueUtilitarian (get from point A to point B) and hedonic (shiny, pretty, and fast)Motivation Driving forces behind human actions How motivated are you?EmotionGoing with your gutUnderstand the three perspectives of decision-makingRational perspectiveAssumes that consumers diligently gather information about purchases, carefully compare options and make informed decisionsWhat is rational for someone may be irrational for others . . . would you pay $1,000 for football tickets?Experiential perspectiveAssumes that consumers often make purchases and research decision based on affect, or feeling attached to the product or behaviorGo to spa because it feels good or go sailing because its fun?Behavioral influence perspectiveAssumes that many decisions are actually learned responses to environmental influencesEverything is people reacting to what is given to themInvolvementThe degree of personal relevance that a consumer finds in pursing value from a given actUnderstand the 5 types of risk:Financial Is it worth the $$$?PerformanceRisk or performing as expecting?Physical Think cars: safety, etc. Time Time given up teaching/maintainingSocialEx: what will my friends think of me if I drive this car or live in this apartment?Understand the three types of decision-making approaches:**ADD GRAPH (jk need definitions for next three things)Extended decision makingLimited decision makingHabitual decision makingBrand loyaltyDefined as deeply held commitment to rebuy a product or service regardless of situation influences that could lead to switching behavior Brand inertiaIs present when a consumer simply buys a product repeatedly without any real attachment Need recognitionWhen a consumer perceives a difference between an actual state and a desired stateWhen there is a difference between actual and desired stateChapter 13: Decision Making 2: Alternative Evaluation & ChoiceEvaluate criteriaThe attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem What made us choose to come to Clemson Attributes/features can be used interchangeably Determinant criteria The evaluative criteria that are most carefully considered and are directly related to the actual choice that is madeMost carefully consideredSeals the dealUnderstand how the two types of value affect the evaluation of alternatives:Hedonic criteriaEmotional, symbolic, and subjective attributesA teenagers emotional attachment to his game consoleUtilitarian criteriaFunctional or economic aspectsLow cost for a gaming consoleClemson example: grew up going to Clemson football games (hedonic criteria) vs. scholarships (utilitarian criteria)Understand bounded rationalityPerfectly rational decisions are not always feasibleTwo much variety actually contributes to feelings of discontent and unhappiness Too many choices and difficult to make a decisionEcon tells us that options are good, but bounded rationality tells us the statement aboveReviews help us make good choices and other servicesTwo types of evaluation processesAffect-based evaluation Evaluate products based on the overall feeling that is evoked by the alternativeAttribute-based evaluationEvaluate alternatives across a set of attributes that are considered relevant to the purchase situationEx: buying a new phone based on affect Her husband tried a SamsungWent right back to AppleKnow the difference between perceptual attributes and underlying attributes Perceptual attributes everything visually and readily available to us about the product (ex: color)Underlying attributes things not obvious without trying (ex: quality)Signals When collecting information about product qualityA characteristic that allows a consumer to diagnose something distinctive about an alternative‘Signals’ something to you about a productBrand name (ex: Nike vs. Reebok)Price (? price, ? quality)AppearanceAppearance of perfume is more important than the actual smellRetailer reputationEx: Target vs. WalmartConsumer judgmentMental assessments of the presence of attributes and the benefits associated with those attributesConsumer sucks in a lot of information . . . our ultimate choice is a ‘consumer judgment’What happens when information is missing?Consumers tend to weigh the criteria that are common to both alternatives heavier (focus on common criteria)Tend to discount information that is missing for the option that performs better on the common criteriaDiscredit things we can’t find for both (lack ability to compare the two)What does “seeing green” in marketing mean?Green marketing: offering products that satisfy both the needs of the consumer and society in a sustainable wayReally difficult for green marketing to reach its potential people are skeptical “green washing”Think green products are inferiorConsumers are interested, but not if they cost moreIn 2010, 95% guilty of green washing Green washing in hotels: signs about towels they still bleach & damage waterCost cut down on personal costLooks good to consumersExample: Mrs. Meyer’s Clean Day brandActually green, good product, do their job, etc. **ADD GRAPH (just add arrows) **ParadigmA commonly accepted way of viewing the worldParadigm shiftA change in the basic assumptions, or paradigms within societyBill says:We need a paradigm shift of marketing to include our planet (water, air pollution, etc.)Need less consumption“What is a watershed” video everything we put in our own water leads back to the oceanChapter 14: Consumption to SatisfactionUnderstand the difference between durable and nondurable goodsDurable goodsConsumed over long periods of time may not know if we’ve satisfied until a long period of timeNondurable goodsConsumed quickly know if you’re satisfied right awayConsumption frequencyThe number of times a product or service is consumed in a given time periodDurable goods consumed lessAuthenticityExperience which is real, genuine, unique or has a history of traditionDrindle dress exampleWhat is meaning transference and can you give an example?Process through which cultural meaning is transferred to a product and onto the consumer Ex: diamondsThe relationship between value and satisfaction:List the three ways consumer satisfaction differs from other CB concepts:A post consumption phenomenonResults from a cognitive appraisalSatisfaction judgmentA relatively mild emotion that does not create strong behavioral reactionsSatisfaction:A mild, positive, emotional state resulting from a favorable appraisal of a consumption outcome “Thumbs up”Dissatisfaction:A mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome“Thumbs down”Understand the three ways to measure satisfaction/dissatisfaction Direct, global measureAsks consumers to assess their overall satisfaction on a scaleHow do you rate overall experience?Attribute specificAssesses a consumer’s satisfaction with various components or attributes of a product, service, or experienceGetting more specific than global measureDisconfirmationCompares the difference between expectations and performance perceptionsThis measure can be taken in a direct, subjective fashionEx: compared to my expectations, my Clemson experience has been . . . Other post-consumption reactions:Delight, disgust, surprise, exhilaration, anger, etc. BUT – study satisfaction the most 3 theories of post-consumption reactionsExpectancy/disconfirmationEquityAttribution Expectancy/disconfirmationWe have expectations going in to a situation no matter what and if our expectations are exceeded we have positive disconfirmation and are satisfiedConsumers enter into a consumption experience with predetermined cognitive expectationsPositive disconfirmationPerformance exceed expectationsNegative disconfirmationIf performance is less than expectedSources of expectationsWord-of-mouthExperienceAdvertisementsPersonal factorsEquity theoryProposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchangeIf outcomesA/inputsA ÷ outcomesB/inputsB, then satisfaction will be positively affectedAttribution theoryFocuses on explaining why a certain event has occurred ElementsLocus – judgments of who is responsible for an eventControl – the extent to which an outcome was controllable or notStability – the likelihood that an event will occur againChapter 15: Consumer RelationshipsComplaining behaviorOccurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption eventUnderstand the difference between complainers and non-complainersComplainersTell others when company’s perform poorlyPotentially valuable source of informationMore likely to become satisfied with company interventionMore likely to return following exchangeNon-complainersMay tell others (friends/family) when company performs poorlyNot as valuable to firm because they don’t complainUnlikely to return Firm must take preemptive action to create satisfactionNon-complainers are the problem because the company knows nothingNon-complainers don’t complain to the companyCOMPLAINERS ARE VALUABLEList a couple of ways that companies can handle service complaints effectively:Thank the customer for providing the informationAsk questions to clarify the issueApologize sincerelyShow empathy for the customers situationExplain the corrective action that will take placeAct quicklyFollow up with the customer after the corrective actionPositive Word of Mouth (WOM)Occurs when consumers spread information from one to another about positive consumption experiences with companiesNegative Word of Mouth (WOM)Takes place when consumers pass on negative information about a company from one to anotherMore powerfulWhat are the three implications of negative WOM?Prevents others from falling victim to a companyDamages the image of the firmCreates effects that spill over to an entire industryHow can firms respond to negative WOM?Doing nothingDenying responsibilityTaking responsibilityReleasing informationParticipating in negative WOMExamples:Applebee’s and Chelsea WelchKitchen Nightmare’s Inside Amy’s Baking CompanyAlso kind of shows “no publicity is bad publicity”Because now the business is boomingStarbucks cup controversy this yearSwitching behaviorRefers to the times when a consumer choose a competing choice, rather than the previously purchased choice, on the next purchase occasion Categories of switching costs:Procedural Involves lost time and effortFinancial Consists of the total economic resources that must be spent or invested Won’t switch because costs to break contract earlyEx: apartment or cell companyRelational Emotional and psychological consequences of changing from one brand/retailer/service provider to anotherCustomer shareThe portion of resources allocated to one brand from among the set of competing brandsSome marketers use the term “share of wallet”Anti-loyal consumersThose who will do everything possible to avoid doing business with a particular marketerChapter 16: Marketing MisbehaviorConsumer misbehavior“The dark side of marketing”Behavior that is unethical and potentially harmful to the self or othersThis can disrupt the exchange processValue is a central component for understanding thisCan disrupt the exchange process and cause costs for all consumers to increase Retail borrowingWhat do misbehaving consumers seek?Value a central component for understanding consumer behaviorMisbehaving consumers seek to:Maximize the benefits that they receive from an actionWhat are some of the motivations of consumer misbehavior?Unfulfilled aspirationsThrill-seekingLack of moral constraintsDifferential association (what does the group you’re associated with believe/how do they act)Pathological association (act a certain way about a company revenge)Provocative situational factors (instead of waiting orderly in line hopping fence, etc.)’Opportunism (risks vs. reward)The role of morals and ethics in behaviorMoral beliefsPerceived ethicality or morality of behaviorsMoral belief components:Moral equityBeliefs regarding an act’s fairness or justnessContractualism Beliefs about the violation of written (or unwritten) lawsSyllabusRelativismBeliefs about the social acceptability of an actWhat will other professors think if I do/don’t do thisEthical evaluationsDeontological evaluationsFocus on specific actionsDo what you know is right stop @ red lightTeleological evaluationsFocus on the consequences of the behaviors and the individual’s assessment of those consequencesThink about consequences, not if it is right or wrongExamples of consumer misbehaviorShoplifting:Sometimes diagnosed as kleptomaniaEmotions play a large role in shopliftingShoplifting behavior appears to peak during adolescence What is the difference between shoplifting and kleptomania?Upper and middle class women who can’t control themselves from stealing in stores because of a neurological disability “Psychiatric concept exploited in legal defenses of wealthy lady shoplifters”Linked with social class and freedom . . . policy implications?Poor people shoplift, rich people are kleptosComputer-mediated behaviorsIllegal sharing of software and musicComputer viruses and cyber bullyingConsumer fraudsCredit cards, open bank accounts, insurance claims, identity theftIllegitimate complainingMotivated by:Desire for monetary gainDesire to evade personal responsibility Desire to enhance consumer’s egoDesire to look good to othersDysfunctional fan behaviorAbnormal functioning related to sporting event consumptionEx: UGA fans pushing over porta potties on Tennessee fansCultural jammingAttempts to disrupt marketing campaigns by altering the messages in some meaningful wayProduct misuseUsing products in ways that were clearly not intendedHappens by: not paying attention, enjoying risky behavior, being error prone, and/or being focused on the thrill of misuseConsumer problem behaviorRefers to the behaviors that are seemingly outside of a consumer’s controlCompulsive shoppingAddiction to drugs and alcohol Marketing environmentPolitical/legal: laws, regulationsTechnological: innovations, developmentsSociocultural: social media, trends, microculturesEconomic: what is going on in the economy recession?Natural: sustainabilityCompetitive: what can we beat them at/be better at than themAll of these are constantly changingCocky’s funeral & application of all of this**ADD GRAPH (jk just add whatever notes were here)TED talks we watched in class will be on exam:Rory Sutherland – Perspective is everythingPhilosopherStanding in the corner with a cigaretteProducts help frame usSeth Godin – Tribes we leadThe internet was supposed to make us all the same (what people were afraid of)But he said that instead people were just really able to connectBarry Schwartz – paradox of choiceEcon has taught us that having more choices leads to more competition and ultimately should make us happierBut Barry says we have hit a limit with that and that we have too many choices and it totally stresses us outDan Areily – are we in control of our own decisions Predictable rationality (?)James Surowiecki – the power and danger of online crowdsOne with circular middle?Review worksheet in review class:What is difference between qualitative and quantitative research? Can you name a few examples of each? (Ch. 1 lecture)Can you describe the difference between internal and external influences in the consumer value framework? (Ch. 2 lecture)Can you describe the steps of classical conditioning? (Ch. 3 lecture)What are the differences between demographics and psychographics? (Ch. 6 lecture)Tools to measure psychographics:PRIZMVALS ................
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