MKT 302_ FINAL
Popular in Consumer Behavior
verified elite notetaker
Popular in Marketing
This 23 page Study Guide was uploaded by Allie S on Monday April 25, 2016. The Study Guide belongs to MKT 3020 at Clemson University taught by Dr. Siemens in Winter 2016. Since its upload, it has received 61 views. For similar materials see Consumer Behavior in Marketing at Clemson University.
Reviews for MKT 302_ FINAL
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 04/25/16
Final Exam Study Guide_MKT 302 The following is a list of the major topics that we have covered this semester. Please go back to your notes/topic outlines for greater detail on each of these topics. The final exam is True/False and multiplechoice, and is worth 150 points (75 questions worth 2 points each). You have ONE HOUR (60 min) to complete the exam after you start it. THE FINAL EXAM IS REQUIRED FOR ALL STUDENTS. You may study your old quizzes for general topics, but there will be new/different questions on the final. The old quizzes will be open until the evening before your final exam at 5:00 p.m. The final exam is IN PERSON, AND PAPER/PENCIL (not online). Good luck studying! Product attributes vs. benefits o Feature/attribute is what you are selling; benefits are what a consumer is looking for (sell them ON the benefit) o Product = Bundle of attributes o Benefits = what we are seeking out Durable vs. nondurable goods o Durable goods consumed over long period of time Assessment may happen multiple times or way after purchase o Nondurable goods consumed quickly; movie Recall plays a factor, need to ask a fresh mind Schemas, scripts, schemabased affect, and associative networks; CH 4 o Schema*** Organized associative network about concept Schema is a grouping; logical network All products/brands are compared to the exemplar (best example of its category) Do they fit the Schema? Need a reason to purchase Are they better or worse? Characteristics outside schema may need more explanation Improve product adoption by minimizing behavior change Influencing behavior through schema knowledge o Fries – crunchy, shape, dip…apple slices with caramel dip Scripts – timeline schema Schema of an event; ordered/timeline o What is expected of that encounter o Negotiation at a car dealership, o Schemabased affect Emotions are stored as part of the meaning for a category Consumers adopt the emotion of those surrounding them Other shoppers, workers, etc. o Associative networks – goes on forever, Sensation and perception; JND/JMD, Perceptual maps o Sensation o Perception consumer’s awareness and interpretation of a reality Influenced by internal/external fact The meaning we attach to the stimulus Drawing upon common shared experiences to induce a desired reaction/perception The aim of ads Some perceptions are selective Selective perception – not all the meanings desired are attached o Perecption: 2 types: JND, JMD JND Just noticeable difference Internal threshold represents how much stronger/different one stimulus needs to be relative to another so that someone can NOTICE a difference o How much can I change before consumers catch on Marketers often try to make subtle branding changes that are below consumer’s JND threshold Don’t want them to question the brand JMD Just meaningful difference o Smallest change in stimulus that would INFLUENCE consumer choice For pricing – is about 20% difference Small adjustments Ways to enhance attention and comprehension of an ad o Involvement’s role in comprehension o Ways to enhance attention: 1. Intensity 2. Contrast 3. Movement 4. Involvement 5. Surprise 6. Size Involvement (5 types)*** 1. product o product relevance/importance Shoes are HIGH involvement Milk is Low 2. shopping o leisure vs. purpose o related to time and occasion 3. Situational o temporary interest or will it be a recurring need? o Prom 4. Enduring o ongoing interest may relate to the social schemata you identify with o Clemson = orange products; Runners = special shoes and articles 5. Emotional o The enthusiasts/fanatics with an emotional attachment o Moves them, compels ABC model of attitudes affect, behavior, cognition ▯ What is an attitude object? Anything TOWARDS an object o Product, service, place, idea, person ▯ ▯ ABC approach to attitudes: Affect – feelings; ex: “I really like…” Behavior – doing/actions ex: “I always buy…” Cognition – Thinking/belief ex: “My car gets good mileage” ▯ ▯ Attitude formation depends on the Hierarchy of Effects, and how the attitude was learned ▯ ▯ What are the 4 possible Hierarchies of Effects? (Exhibit 7.2) ▯ ▯ 1. High Involvement = Cognition – affect behavior Ex: Car purchase ▯ 2. Low Involvement = Cognition – behavior – affect ▯ ▯ 3. Experiential = Affect – Behavior Cognition Ex: Cinnabon = smell rolls, buy, realize it’s too big ▯ 4. Behavioral Influence = Behavior – belief – affect Ex: grocery store = food sample, read/think about package, Brand communities o Develop relationships based on shared interests or product usage Ex: Harley, Jeep, Crossfit, Chubbies o Companies benefit because Consumption can BECOME Lifestyle o As it relates to subculture Interested parties create a micro culture – all brand communities ARE micro cultures But not all micro cultures are brand communities – running/non brand specific Shaping and modeling o Learning o Shaping is the result of modeling o Modeling is imitating o Culture is learned through Modeling and Shaping o Shaping = behaviors slowly adapt through series of rewards and sanctions o Modeling = process of imitating others’ behavior Causes shaping Cultural norms*** and cultural sanctions o Learn cultural norms through modeling o Violating norms = Cultural Sanction Speaking when teach asks to raise hand…won’t call on you Conformity: Normative – wanting to fit in, want to follow the norm to be accepted Informational – conforming because we feel it is “right” option Atmospherics types and fit and congruity o emotional nature of environment, feelings created by physical attributes of environment o Atmosphere Elements Two factors help create competitive advantage; 1. Fit appropriateness of elements for given environment 2. Congruity – consistency of elements with one another Elements include: 1. Odor Ex: Citrus is the most popular because it scores well with women and men Women prefer floral Men prefer food 2. Music Tempo Affects shopping pace/mood as well as patience levels Foreground – pay attention to music Background – tune 3. Color Changes the perceived value, Blue = most liked color 4. Social Crowding, volume, lines Types of power o Social Power prompts conformity The ability of another to expect influence 1. Legitimate o a person has the FORMAL right to make demands and expect compliance ex: professor, boss 2. Reward o ability to compensate another for compliance ex: MVP of a team given by coach, employee of the month given by boss 3. Expert o based on a person’s superior skill and knowledge ex: college professor, doctor 4. Referent o a person’s perceived attractiveness, worthiness, a right to respect from others ex: social group leaders 5. Coercive o belief that a person can punish others for noncompliance ex: police Classical conditioning vs instrumental conditioning o Classical – association o Instrumental – rewards and punishment o Conditioning = UNINTENTIONAL Learning Just involved in daily activities Can ENHANCE consumer comprehension of your message Encourages repeat behaviors Help promote self efficiency/navigate stimuli o Two types of conditioning: Classical Instrumental Classical conditioning Learning by Association o Unconditional stimulus – stimulus that Naturally triggers a response o Unconditional Response – natural response o Conditioned stimulus – becomes associated with an Unconditional stimulus through conditioning/pairing This will trigger the natural response via unconditioned stimulus, but over time, the conditional stimulus will also o Conditional response – learned response to conditioned stimulus Mind/body connection Natural occurring paired/manipulated with the conditioned Instrumental conditioning Behavior is conditioned through reinforcement or rewards – not just association o Positive reinforcement – rewarding desired behavior Ex: loyalty cards o Punishment – demonstrate negative results of behavior Fear Factors that determine how important customer service is for an industry (competition/dependent on repeat business) o Competition, need for repeat business… Segmentation: demographics, geographics, psychographics, geodemographics o Geographics Where are person lives o Personality OCEAN Internal factors that influence behaviors o Psychographics AIO statements (Activities, Interests, Opinions) Way consumer LIFESTYLES are measured What they want, how they want it, what do they do o Geodemographics PRIZM evaluation (Potential Ratings Index by Zip Code Market) People who are demographically similar, often live near each other Lifestyle necessitates area/similar desires Draws conclusions based on area Persuasion ELM model o ELM – Elaboration Likelihood Model Involvement is Key Measuring focus point in advertisement and how it influences them Productrelated or non All depends on level of involvement with product 2 routes to persuasion: o Central and peripheral o Central = high elaboration High Involvement// product info o Peripheral = low elaboration Low Involvement//Non product info o Attitude change is relatively enduring when it occurs in the central route. increase involvement by making the product/message highly relevant. target to motivated audiences. o Most ads are processed with low involvement processing. reliance on peripheral cues (attractive models, music, imagery). Consumer learning what is it and how does it happen? CH. 3 o Learning = a change in behavior resulting from the interaction between a person and stimulus o Stimulus can be: billboard, commercial, wordofmouth Stimulus triggers a change *** Read Ch. 3 BRQ brand relationship quality what is it made up of? Trustworthiness Expert.. Personal influences on CB age cohorts, personality, etc. o Age = a microculture People tend to share values/consumer preferences in the same age group Teens/teen culture worldwide act similar/like certain brands, celebrities and products o Cohort = Generation Micro culture group of people who have had a SHARED/SAME Major experience United by a common generational event shared major experiences end up shaping their core values o Age changes, Cohorts do not. Reference group influence (market mavens, surrogate consumers, opinion leaders; types of reference groups) o As it relates to Norms, power, involvements… o Reference Group A group you refer to Ex: peers, classmates, sorority, family o Affect perceived value of a consumption experience Remember the value equation and meaning of hedonic (emotional) value o Market maven= A consumer who spreads info about ALL TYPES of products and services Ex: Oprah Winfrey o Surrogate Consumer = Hired by another consumer to provide input into a purchase decision Ex: financial advisor, interior designer, real estate agent o Types of Groups 1. Primary/Secondary Primary = regular contact Secondary=not as regular contact 2. Formal/Informal Formal = set boundaries Informal = malleable 3. Associative/dissociative associative = want to be like them disassociate Value (types of value how is value defined; value equation; why is value important?)*** o Value = What you get – what you give Utilitarian = functional value Physiological Safety Hedonic = added value Belongingness Selfesteem Selfactualization Interpretive/qualitative research (methods, benefits, drawbacks) vs. quantitative research o Quantitative Number based o Qualitative focus on groups/indepth interviews Ethnography – living as a consumer Research dependent process Emotion affect vs. mood ways to measure emotion o Emotions are: Psychobiological reactions to appraisals Having both a psychological and physical reaction tied together Visceral Response You appraise a situation and then react emotionally accordingly Involves a Psychological component/processing AND a Physical reaction o Affect = represents feelings TOWARDS a product/action o Mood = tied to an emotion, but is TEMPORARY Transient/changing and general affective state; background Five types of risk risk and involvement in the context of decision making*** o The greater the risk, the higher the involvement o Types of risk: 1. Financial 2. Social evaluated by society/socially fashion and being fashionable a low commodity item with have a lower social risk – consumption is not visible 3. Performance if product fails, what is the effect on you? Low is easily replaced; high is huge impact 4. Physical could I be harmed? 5. Search or maintenance costs of searching – high involvement, effort/time, opportunity cost maintaining the product costs Three decision making approaches (limited, habitual, extended) o Habitual – low risk, low involvement o Limited – past experience o Extended – High risk, high involvement Extended decision making o High involvement; lengthy process, consider multiply sources Many criteria points; higher risks Ex: car Limited decision making o Usually prior experience o Somewhat knowledgeable about product o Medium risk/involvement; few brands, quicker process Ex: Shampoo, hot dogs Habitual decision making o Based on either Habit or brand loyalty Routine, buy repeatedly May have loyalty, but can’t simply be measured via repeat purchases o MUST ask the consumer… because of inertia Evaluation of alternatives (evaluative criteria, evoked set, determinant criteria) Evaluative criteria the individual attributes or elements of a product or decision that are used by consumers in making a decision. ▯ Which two are used in almost all decisions? o Price o Quality Marketers/ad can influence the evaluation criteria of a consumer Consideration set scope of consideration a person has for a particular product Evoked set – brands that come immediately to mind o Buy regularly, brand loyalty Different decision making rules (EBA, lexicographic, etc.) o Consumer choice: Decision Rules ▯ 1. Compensatory Rules – compensates Allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute. ▯ 2. Noncompensatory Rules – strict dealbreaker guidelines Strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration. ▯ Three noncompensatory decision rules: 1) Conjunctive rule – minimum mental cut off point for features used reject product if it fails to meet min cutoff (min on ALL) o ALL meet min requirements, or none are accepted ▯ 2) Lexicographic rule – choose product that performs the best on most important feature Choose the best of the feature most important to the customer ▯ 3) Elimination by Aspects rule – establish min cutoff points for each attribute start with the most important feature and eliminate until 1 product is left Steps in the decision making process o Need recognition 1. a want or a need is identified 2. Search for Info WOM, Research, internal survey 3. Evaluation of alternatives other brands 4. Choice 5. Postconsumption evaluation did I get a good value Different heuristics and heuristic processing o Heuristices = mental shortcuts o Quick, efficient… but not always the optimal choice o Bounded rationality o Heuristics: 1. Country of Origin: Where it was made – indicates quality of product/certain countries are “known” for certain products Ex: Buy Ford because it is “made in the USA” Electronics produced in Japan are better quality than those produced within the US. 2. Brand Loyalty Trust in a product based on PRIOR EXPERIENCE Ex: You like Nike shoes, so you also think you will like a Nike shirt. You like Twix candy bars, so you think you will also like Twix flavored ice cream. 3. Retail Outlet Store assumptions – the atmosphere and what you know about the store influencing the products that store sells Ex: Clothes at Banana Republic are better quality than those at Old Navy. You will always get more for your money at Sam’s. 4. Brand Names Reputation of the brand – no experience necessary May be wordofmouth, may be read somewhere Ex: Purchase a Rolex watch because that brand is reputable. Purchase a Gucci purse only because you know it is a prestigious brand. 5. Price/Quality Relationship Price dictating quality Ex: Isuzu cars must be poorer quality than Honda because they are cheaper in price. Starbucks coffee is better quality than Folgers because it is more expensive 6. Product Signal Unrelated features, but look affects quality perception Ex: Buy a product in a green package because it seems “healthy” Purchasing a magazine because of who is on the cover. GROUP INFLUENCE buzz marketing and stealth marketing Viral Marketing = having consumers spread marketing through their online conversations/communications o Is a TYPE of Buzz Marketing Buzz marketing marketing that focuses on generating excitement (buzz) o A form of guerilla marketing using unconventional means o Viral marketing: having consumers spread marketing through their online conversations/communications Stealth marketing undercover marketing o Buzz marketing but consumers are unaware that they are being marketed to o FTC Says unethical along with shilling (paying for WOM) and Infiltrating (faking online reviews) o Fosters distrust of advertising, which isn’t good for the industry as a whole amplified and organic word of mouth WOM Word of Mouth o No agenda, powerful because it is an honest opinion Organic occurs naturally o You liked the restaurant, so you tell others (WOM) Amplified marketers attempt to accelerate WOM o You take part in an online discussion on a company’s website Amplifier Types of microcultures ▯ Microculture (usually called a subculture) – a group of people who share similar values and tastes that are subsumed within a larger culture. Microcultures = subcultures of people with similar aspirations and values o Ex: Graphic Communications, ROTC, Senior class, Sports, Clubs What is a consumer touchpoint? Touchpoints Times of DIRECT contact; oneonone interactions, CSR, Personal selling – get to know consumer o Customer Service Needs: problem vs. opportunity recognition Selfconcept and different types of selfconcepts (ideal, social, ideal social, etc.) ▯ SelfConcept Refers to the totality of thoughts and feelings that an individual has about him or her self. How do I identify self internal/personal ▯ People have many selfconcepts, such as: ▯ 1. Actualself = Current perception ex: student; stressed ▯ ▯ 2. Idealself = what you Want to be/ the person you want to be employed; relaxed ▯ 3. Social/looking glass self = How you think others perceive you others think I am composed ▯ 4. Ideal social self = how I want them to see me ▯ ▯ 5. Extended self = possessions/our self concept expressed through our possessions purse – reflects lifestyle/idea of self Functional and affective atmospheric qualities of retailers or servicescapes situational influences on behavior time pressure, advertiming, time of year, place, atmospherics etc. Advertiming = Time of day/year advertising ▯ What occurs when consumers are under time pressure: o Marketers can create time urgency o Under time pressure – consumers process less info regarding a product More likely to rely on heuristics under time pressure. product categorization why does it matter? subordinate and superordinate category levels o Contrasting – able to categorize to fit schemas o Category levels 1. Superordinate level – a “rug” is a rug Broad category in which all products in the same category are viewed as being the same 2. Subordinate – “doormat” vs. “Persian Rug” More benefits evaluated o Ethnocentrism; enculturation and acculturation; Hofstede’s dimensions of cultural values, glocalization Ethnocentrism – believing YOUR culture is better than everyone else’s ▯ Hofstede’s Cultural Values: ▯ 1. Individualism or collectivism Where does your identity reside Familyoriented; use of I or we; sense of selfimportance o USA very individualistic – somewhat looking out for self; o China – communal; the common good ▯ 2. Power Distance Distance between authority/power figures and the people o USA power distance is smaller than in China/East Authority can direct or collaborate o Shapes the place a person has in hierarchy and how they can interact in the “caste” system ▯ 3. Uncertainty Avoidance The willingness to take on a risk/step out of comfort zone o USA is fairly low on UA – take a lot of risks o France/Japan very high – goes along with the collectivism ▯ 4. Masculinity or femininity Gender Role definition and assignment/duties o Shapes the idea of gender and place in society o Authority ▯ 5. Longterm or Shortterm Goals and decisions based on longevity and desired pay out Immediate vs future o USA – shortterm; quarterly/daily reports To engage in a behavior with immediate outcome o China – more longterm; benefits come later ▯ Cultural differences guanxi and wa o Japanese Wa (value of group loyalty and consensus) o Chinese Guanxi (relationships backed by reciprocity) Bounded rationality Perceptual and underlying product attributes Perceptual attributes- apparent to the consumer o Easily seen/extracted Price, flavor, derived from package, no experience necessary Underlying attributes- qualities of the experience o Taste, texture, comfort, How you interact, need experience Conformity (Asch phenomenon) Conformity- result of group influence where an individual yields to the attitudes and behavior of others Examples of Conformity: o Asch Conformity Experiment Informational vs. normative conformity Show group of people lines Line 2 is longest at first, but then switch and say line 3 is now the longest When trust in the group is established and they switch their answer, will the subject conform to the new “longest line” 36% conformed based on the groupthink Informational = looks to group of info and conform because you think they must be right Based on sheer numbers/groupthink Normative = conform to avoid standing out, but do not change actual attitude Anonymity and having a partner decrease conformity No fear in going against the group Brand switching/dissatisfaction inertia vs commitment; role of expectations, etc. Satisfaction- mild positive emotional state resulting from a favorable appraisal Dissatisfaction – mild negative reaction from an unfavorable appraisal Different types of switching costs Switching costs: Costs to consumer 1. Procedural time/effort o cost to switch brands: time, effort, convenience 2. financial sunk cost o already purchased 3. Relational o emotion/psychological/brand loyalty may already have a tie Cognitive dissonance Cognitive dissonance- lingering doubts about a decision that has already been made (buyer’s regret) o Post-purchase anxiety/regret o Gap between expectations and reality Conditions: 1. Consumer is aware that there are a lot of attractive alternatives 2. Decision is different to reverse o return policies and warranty 3. Decision is important and involves risks o higher involvement, the more risky 4. low self confidence o less we are certain of product o tests, consumer CSR, make info available Deontological vs teleological reasoning Evaluating ethical/moral beliefs: o Deontological evaluations- is the action “right” Based on INTENT o Teleological evaluations- what are the consequences? Ends justify the means Culture jamming, deshopping, consumer misbehavior Culture jamming: o attempt to disrupt ad done in a “meaningful” way o usually opposing commercialism defacing billboard, web James Retail borrowing (“deshopping”) o Premeditated return of merchandise o Increases prices, return policies stricter Complaining when is it good? ▯ Can complaints be good for a company? Yes Complaints can be good – growth area/work on, if they don't know then they can’t fix things o So we actually WANT customers to complain as long as we know how to handle the situation effectively o Build connection with customers o Can actually build brand loyalty o Reveal weaknesses Attribution theory (locus, control, stability) ▯ Attribution theory- focuses on explaining why a certain event has occurred focuses on explaining why events occur 3 attributes: ▯ 1. Locus of control – who was responsible? ▯ 2. Control – what it in their control? ▯ 3. Stability – will it happen again? Repeat occurrence Search behavior types of search and who searches most SHOPPING TYPES: Aquisitional…
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'