Consumer Behavior Exam 1 StudyGuide
Consumer Behavior Exam 1 StudyGuide MKTG 3553
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This 0 page Study Guide was uploaded by Alicia Turman on Wednesday February 17, 2016. The Study Guide belongs to MKTG 3553 at University of Arkansas taught by Chris Tompkins in Winter 2016. Since its upload, it has received 73 views. For similar materials see Consumer Behavior in Marketing at University of Arkansas.
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Date Created: 02/17/16
gonsumer Behavior Exam 1 Study iuide Chapters 4 Chapter 1 What Is Consumer Behavior and Why Should I Care 0 Set of valueseeking activities that take place as people go about addressing and attempting to address realized needs 0 A process kicks in as the consumer sets out to nd ways to feel the need thinking feeling behaving culminating in value 0 set of value seeking activities that take place as people go about addressing their real needs 0 Consumers who understand consumer behavior can make better decisions concerning how they allocate scarce resources Meaning they become better consumers process by which goods services or ideas are used and transformed into value 0 Marketer and the consumer interact to produce value Need Want Exchange Costs a nd Bene ts Reaction Value 0 a speci c desire representing a way a consumer may go about addressing a recognized need 0 current state vs ideal state acting out of the decision to give something up in return for something perceived to be of greater value negative results of consumption experiences positive results of consumption experiences 0 Study of consumers as they go about the consumption process o The science of studying how consumers seek value in an effort to address real needs 0 Understanding consumer behavior means better business for companies better public policy for governments and a better life for individuals and households study of production and consumption study of human reactions to their environment study that focuses on the thoughts feelings and behaviors that people have as they interact with other people Group Behavior study of the intricacies of mental reactions involved in information processing the study of the central nervous system including brain mechanisms associated with emotion the study of groups of people within a society with relevance for consumer behavior because a great deal of consumption takes place within group settings or is affected by group behavior y field of study involving interpretation of relationships between consumers and the things they purchase the products they own and the activities in which they participate multitude of valueproducing seller activities that facilitate exchanges between buyers and sellers including production pricing promotion distribution and retailing 0 Marketing actions are targeted at and affect consumers while consumer actions affect marketers 0 Marketing activities are aimed at creating value 0 Competitive pressures motivate marketers to provide good service way of doing business in which the actions and decision making of the institution prioritize consumer value and satisfaction above all other concerns 0 A consumer orientation is a key component of a rm with a marketoriented culture organizational culture that embodies the importance of creating value for customers among all employees 0 Also stresses the need to monitor and understand competitor actions in the marketplace and the need to communicate information about customers and competitors throughout the organization an orientation in which rms recognize that more than just the buyer and seller are involved in the marketing process and a host of primary and secondary entities affect and are affected by the value creation process activities based on the belief that the rms performance is enhanced through repeat business direct contacts between the rm and the customer 0 Multiple channels or ways of making this contact exist including phone email text messaging online social networking and especially facetoface contact theory that explains why companies succeed or fail o The rm goes about obtaining resources from consumers in return for the value the resources create a part or tangible feature of a product that potentially delivers a bene t of consumption t potentiay valuable bundle of bene ts 0 An innovation has to produce value for consumer s to be successful 0 Overtime successful innovations exhibit all or some of these characteristics 1 Relative Advantage makes things better than before 2 Simplicity all things equal a simpler innovation is better than a complex innovation 3 Observable things that are observable tend to get adopted faster 4 Trialability things that can be tried with little or no risk get adopted faster 5 Consistency consumers are more likely to adopt things that are congruent with existing values and knowledge pan wherein the same basic product is offered to all costumers 0 Generally adopt a product orientation approach where innovation is geared primarily toward making the product process as ef cient and economic as possible 0 Basically the emphasis is on serving customers while incurring minimum costs 0 Q WalMart typi es this approach with their Supercenters and their stateof theart distribution network which ships massive quantities of products to stores around the world and the lowest possible cost rms that serve multiple market segments each with a unique product offering 0 The emphasis here is on matching a product with a segment plan wherein a different product is offered for each individual customer so that each customer is treated as a segment of one 0 Q a custom homebuilder practices onetoone marketing plan wherein a rm specializes in serving one market segment with particularly unique demand characteristics 0 May be consumer oriented but also some niche marketers are product oriented and produce a product that has a unique appeal within a segment Q the gol ng company Bobby Gracequot that specializes in one product the putter approach that seeks to explain the underlying meanings and motivations associated with speci c consumption experiences 0 Consumer researchers interpret these meanings through the words that consumers use to describe events or through observation of social interactions means for gathering data in a relatively unstructured way including case analysis clinical interviews and focus group interviews 0 Words interpretive research underlying meanings and motivations o Researcher is not dependent from study subjective data that requires a researcher to interpret the meaning qualitative approach to studying consumers that relies on interpretation of the lived experience associated with some aspect of consumption qualitative approach to studying consumers that relies on interpretation of artifacts to draw conclusions about consumption 0 First hand observation of daily participation 0 Participation is key a branch of ethnography that studies the behavior of online cultures and communities 0 Similar to ethnography but its conducted by observing and participating with groups online o approach that addresses questions about consumer behavior using numerical measurement and analysis tools 0 Numbers numerical data 0 Enables researchers to test hypothesis 0 Researcher is dependent from study 0 Types of Quantitative Research Surveys experiments database mining structural equation modeling Consumer Behavior is Dynamic Different types of consumer situations call for different types of research approaches 0 term used to represent the massive amounts of data available to companies that can potentially be used to predict consumer behaviors o The data includes internal records of consumer behavior like Scanner purchase data survey responses and web traf c records as well as data from social network interactions and even things like GPS tracking 0 the application of statistical tools in an effort to discover patterns in data that allows predictions of consumer behavior 0 learn about hidden emotions about something 0 Q look at a scene and say what happened afterward or draw a person that wears this brand Current Consumer Behavior Trends Internationalization Technological Changes Changing Communications Changing Demographics Changing economy Gives input to business marketing strategy 0 Can be a force that shapes society Gives input to making responsible decisions as a consumer Chapter 2Value and the Consumer Behavior Value Framework o consumer behavior theory that illustrates factors that shape consumptionrelated behaviors and ultimately determine the value associated with consumption Relationship Quality CSD Switching Behavior 0 Customer Share 0 Customer PAMMIIlMAII II systematic information management system that collects maintains and reports detailed information about customers to enable a more customeroriented managerial approach degree of connectedness between a consumer and a retailer brand or service provider An organizations effort applied toward value creation Internal in uences things that go on inside the mind and heart of consumer or that are truly part of the consumer psychology 0 Can be thought of as part of the consumer thinking or mental processes that g on as we process and store things that can become knowledge feelings associated with speci c objects or consumption activities characteristic traits of individuals including demographics personality and lifestyle social and cultural aspects of life as a consumer 0 Social environment and situational in uences eements that speci cally deal with the way other people in uence consumer decisionmaking and value things unique to a time or place that can affect consumer decisionmaking and the value received from consumption a personal assessment of the net worth obtained from an activity grati cation derived because something helps a consumer solve a problem or accomplish some task value derived from the immediate grati cation that comes from some activity a planned way of doing something to accomplish some goal way a company goes about creating value for customers a common condition in which a shortsighted company views itself in a product business rather than in a valueorbene ts producing bene ts way a rm is de ned and its general goals ways marketing management is implemented 0 lnvolves price promotion product and distribution decisions actual physical product purchased plus any services such as installation and warranties necessary to use the product and obtain its bene ts business practice wherein companies operate with the understanding that products provide value in multiple ways the realization that a consumer is necessary and must play a part in order to produce value combination of product pricing promotion and distribution strategies used to implement a marketing strategy identi es segment or segments of a market that a company serves 0 Marketers determine which target segments have similar wantsneeds that can be satis ed separation of a market into groups based on the different demand curves associated with each group 0 Subsets of consumers who share common needs characteristics behaviors 0 We segment the market because consumer s preferences vary and we can create better value for each segment than as a whole mass market 0 Who bene ts from market segmentation Firms more ef cient use of resources when targeting speci c subgroups than trying to mass market avoid direct competition by selecting an underserved market Consumers specialized needs met reduced search costs Society new better innovative products more options increased standard of living Re ects how sensitive a consumer is to changes in some product characteristic marketplace condition which consumers do not view all competing products as identical to one another way a product is perceived by a consumer tool used to depict graphically the positioning of competing products positioning a rm from far away from competitor s positions so that it creates an industry of its own and at least for a time isolates itself from competitors combination of product characteristics that provide the most value to an individual consumer or market segment approximate worth of a customer to a company in economic terms 0 Overall pro tability of an individual consumer Chapter 3 Consumer Learning Starts Here Perception change in behavior resulting from some interaction between a person and a stimulus 0 Q we know that the swoosh stands for Nike 0 Q We know there s an arrow in the FedEx logo 0 Can be intentional or unintentional Consumer s awareness and interpretation of reality 0 Consumer learning begins with perception o Represents a subjective reality 0 Steps in the Perceptual Process Exposure Attention and Comprehension process of brining some stimulus within proximity of a consumer so that the consumer so that the consumer can sense it with one of the ve human senses consumers immediate response to a stimulus actively seeking to engage customers senses as the primary aspect of the value proposition purposeful allocation of information processing capacity toward developing an understanding of some stimulus 0 Basically it s the learning that one thing represents or signi es another 0 process by which the human brain assembles sensory evidence into something recognizable state that results when a stimulus has characteristics such that consumers readily recognize it as belonging to some speci c category 0 Q picture of a coffee gets put into the quotmorning beveragequot section of our brain state that results when a stimulus shares some but not all of the characteristic that would lead it to t neatly in an existing category and consumers must process exceptions to rules about the category 0 Q iced coffee may require some adjustment for a consumer used to hot coffee as morning beverage state that results when stimulus does not share enough in common with existing categories to allow categorization 0 Q a lime green margarita with sugar around rim of glass shares very little in common with the morning beverage category giving humanlike characteristics to inanimate objects process of screening out certain stimuli and purposively exposing oneself to other stimuli o Clutter too much information o On average we encounter about 2500 advertising messages each day process of paying attention to only certain stimuli 0 Only messages that address a speci c need or interest process by which consumers interpret information in ways that are biased by their previously held beliefs 0 You remember what you want to remember 0 Q Cigs we know the harmful effects of smoking but don t think it will happen to us ways that the human brain deals with very lowstrength stimuli so low that the person has no conscious awareness minimum strength of a stimulus that can be perceived behavior changed induced by subliminal processing just noticeable difference condition in which one stimulus is suf ciently stronger than another so that someone can actually notice that the two are not the same Q Coke changed formula Pepsi took advantage of it you must know how and when to change 0 jND in Pricing small increase in price is okay but a large change in price is bad 0 JND in Quantity small decrease in quantity is okay but large change in quantity is bad 0 jND in Addon Purchases small addon is okay but if you try to sell a large addon its bad 0 JND in Quality small improvement in quality is bad but a large change can be good law that states that a consumers ability to detect differences between two levels of a stimulus decreases as the intensity of the initial stimulus increases just meaningful difference smallest amount of change in a stimulus that would in uence consumer consumption and choice 0 20prime offer that will attract people and cause them to purchase memory that develops when a person is exposed to attends and tries to remember information 0 Q studying for an exam memory for things that a person did not try to remember learning that occurs without attention effect that leads consumers to prefer a stimulus to which they ve previously been exposed o Represents another way that consumers can learn unintentionally 0 Once exposed to an object a consumer exhibits a preference for the familiar object over something unfamiliar that transfer of meaning between objects that are similar only by accidental association products that have been placed conspicuously in movies or television shows 0 Through which promotions can impact implicit memory among consumers attention that is autonomic meaning beyond the conscious control of a consumer 6 ways to Enhance Attention 1 Intense Stimuli Loud ashing in your face vivid colors 2 Contrast take something that s normal and change it make it unique 3 Movement neon lights electronic billboards animated web ads 4 Surprise advertising vehicleslive displays or human models instead of mannequins 5 m larger items get more attention 6 Involvement g a bus stop tanning ad with a darkness sliderit gets people involved natural re ex that occurs as a response to something threatening the personal relevance toward or interest in a particular product earning that occurs when behavior is modi ed through a consumerstimulus interaction without any effortful allocation of cognitive processing capacity toward that stimulus 0 Basically consumers simply sense and reactrespond to environment process by which consumers set out to speci cally learn information devoted to a certain subject 0 Q Car facts we are purposely trying to learn about a cars history theory of learning that focuses on changed in behavior due to association without great concern for the cognitive mechanics of the learning process 0 More focused on impulses and re exes Ieaming perspective that focuses on the cognitive processes associated with comprehension and how these precipitate behavioral changes change in behavior that occurs simply though association some stimulus with another stimulus that actually causes some reaction 0 A type of unintentional learning 0 Q Pavlov s dog stimulus with which a behavioral response is already associated 0 Something that evokes emotional response object or event that does not cause the desired response naturally but that can be conditioned to do so by pairing with an unconditioned stimulus response that occurs naturally as a result of exposure to an unconditioned stimulus response that results from exposure to a conditioned stimulus that was originally associated with the unconditioned stimulus 0 We buy and feel good type of leaning in which a behavioral response can be conditioned through reinforcementeither punishment or rewards associated with undesirable or desirable behavior 0 Q using chocolates to change someone s behavior reinforces that tae the form of a reward stimuli that occur solely in the presence of a reinforce Process through which a desired behavior is altered over time in small increments 0 Q premiums stimuli that decrease the likelihood that a behavior will persist 0 Q Food poison 0 Q when a child behaves bad they get grounded process though which behaviors cease due to lack of reinforcement 0 Q costumers may become accustomed to receiving free tea and cookies at local nail salon every time they go get nails done If salon stops offering free tea and cookies the consumers may take their business elsewhere Chapter 4 Comprehension Memory and Cognitive Learning 0 the way people cognitively assign meaning to Le understand things they encounter O O O Comprehension varies based on Likeability Attractiveness Expertise Trustworthiness and Congruence Internal factors within the consumer powerfully in uence the comprehension process Comprehension includes both cognitive and affective elements Every message sends signals Message Characteristics that Affect Consumer Comprehension Physical Characteristics SimplicityComplexity CongruityIncongruity FigureGround message sources shape Message Receiver Characteristics that Affect Consumer Comprehension Intelligence prior knowledge ability involvement familiarityhabituation expectations physical limits brain dominance Environmental Characteristics that Affect Consumer Comprehension Information intensity framing timing 0 explains ways in which communications convey meaning beyond the explicit or obvious interpretation price matching guarantee 0 When a retailer promises to match competitor s prices o tangibe elements or the parts of a message that can be sensed o Intensity g speaking louder bigger picture larger letters color font signals meaning numbers spacing repeat messages to increase comprehension shape golden section a preferred ratio of objects equal to 162 to 100 extent to which a message is internally consistent and ts surrounding information 0 Q Peyton Manning doing an athletic commercial is congruent but it would be inconsistent if he did it with products like personal computers or heart medicine 0 Not always true that congruent content leads to improved comprehension object that is intended to capture a person s attention the focal part of any message background in a message 0 In a message everything besides the gure should be less important and simply represent the ground Supporting the gure notion that each message can be separated into the focal point gure and the background ground use of expressions that sends a nonliteral meaning amount of knowledge that a source is perceived to have about a subject how honest and unbiased the source is perceived to be extent to which a source is considered to be both an expert in a given area and trustworthy thoughts that contradict a message thoughts that further support a message process by which continuous exposure to a stimulus affects the comprehension of and response to the stimulus level of a stimulus to which a consumer has become accustomed oRussian word that can be roughly translated as quotacquiring things with great dif culty beiefs about what will happen in some suture situation refers to the phenomenon of hemispheric lateralzation 0 Some people tend t be either rightbrain or leftbrain dominate in a consumer context an ad claim that is not literally true but guratively communicates a message amount of information available for a consumer to process within a given environment a phenomenon in which the messaging of something is in uenced perceived differently by the information environment 0 The same event can product multiple meanings depending on how the information is presented theory that suggests that a decision or argument can be framed in different ways and that the framing affects risk assessments consumers make cognitive process in which context or environment activates concepts and frames thoughts and therefore affects both value and meaning 0 Negative framed information primes losses and cause avoidance form the consumer whether or not we are thinking about using a concrete or abstract mindset psychological process by which knowledge is recorded theory that explains memory as utilizing three different storage areas within the human brain 0 1 Sensory 2 Workbench 3 Longterm area in memory where a consumer stores things expose to one of the ve senses 0 Pick things out and stores them even though the consumer has yet allocated attention to any sensations Unlimited capacity very limited duration iconic memory echoic storage storage of visual information in sensory memory and the idea that things are stored with a onetoone representation with reality storage of auditory information in sensory memory interpretations created but he way some object feels 0 Q a felt packaging storage area in the memory system where information is stored while it is being processed and encoded for later recall 0 Works closely with longterm memory Limited capacity limited duration coding takes place there 0 process by which information is transferred from workbench memory to longterm memory for permanent storage 0 process by which information is transferred back into workbench memory for additional processing when needed 0 simple mechanism in which a thought is kept alive in shortterm memory by mentally repeating the thought 0 coding that occurs when two different sensory traces are available to remember something Coding that occurs when information from longterm memory is placed on the workbench and attached to the information on the workbench in a way that the information can be recalled and used later Process that occurs when preexisting knowledge is used to assist in storing new information 0 process of grouping stimuli by meaning so that multiple stimuli can become one memory unit By separating disparate individual elements into larger blocks information becomes easier to retain and recall 0 notion that everything else that the consumer is exposed to while trying to remember something is also trying to remember something is also vying for processing capacity and thus interfering with memory and comprehension 0 Doing something while someone else is distracting you 0 Q counting single memory unit 0 Taking a list of numbers and chunking them to years for easy remembering reconstruction of memory traces into a formed recollection of information o Exposing consumers to concepts with shared meanings repository for all information that a person has encountered 0 Unlimited capacity unlimited duration semantic meaning semanticassociated network 0 type of coding wherein stimuli are converted to meaning that can be expressed verbally O mental path by which some thought becomes ache way cognitive activation spreads from one concept or node to another small piece of coded information that helps with the retrieval of knowledge unintentional but recurrent memory of longago events that are spontaneously not evoked by the environment triggered 0 Consumption related activities a yearning to relive the past that can produce lingering emotions extent to which a consumer continues processing a message even after an initial understanding is achieved process by which people imagine themselves somehow associating with a stimulus that is being processed o This provides the deepest comprehension and greatest chance of accurate recall network of mental pathways linking knowledge within memory 0 Sometimes refereed to as a semantic network cognitive components that represent facts 0 Represented in an associative network when two nodes are linked by a path concepts found in an associative network representations of the association between nodes in associative network a portion of an associative network that represents a speci c entity and thereby provides it with meaning 0 Brand Schema part within ones total associative network responsible for de ning a marketing entity 0 Product Schema each time a consumer encounters a snack food the mind compares all associations to see if the thought is correct concept within a schema that is the single best representative of some category 0 Differs based on consumer s unique experiences 0 Provide consumers a basis of comparison for judging whether something belongs to a category 0 Schema for something that really exists 0 Q Motorcycle gt Harley Davidson schema that is the best representative of some category but that is not represented by an existing entity 0 Conglomeration of the most associated characteristics of a category schema representing an event memory for past events or episodes in ones life 0 Stores brands associated with positive events and tend to be preferred by consumers cognitive representation that gives a speci c type of person meaning 0 Can be based on a person s occupation age sex ethnicity religion and product ownership 0 Social Stereotype another word for social schema the idea that ones individual identity is denied in part by the social groups to which one belongs
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