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by: Allie S

MKT 302_ FINAL MKT 3020

Allie S
GPA 3.46

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Final review
Consumer Behavior
Dr. Siemens
Study Guide
Marketing, MKT302, Clemson, Clemson University
50 ?




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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.


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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… 


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