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Study Guide for Midterm #1

by: odette antabi

Study Guide for Midterm #1 MKT310

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Study Guide for midterm#1 <<<<Only all Key terms of chapter 1,3,4,5 and 6 that you need to know>>> complete definitions of all terms listed by the professor
consumer behvior
howard marmorstein
Study Guide
MKT310, marmonstein, midterm1, terms, key, study, guide, UM, complete, mideterm1, fall2016
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This 21 page Study Guide was uploaded by odette antabi on Monday September 19, 2016. The Study Guide belongs to MKT310 at University of Miami taught by howard marmorstein in Fall 2016. Since its upload, it has received 92 views. For similar materials see consumer behvior in Marketing at University of Miami.


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Date Created: 09/19/16
Study guide exam 1 Key Terms Chapters 1,3,4,5 and 6 Chapter 1)  applied research: Applied research examines many of the same variables as basic research, but within a specific context of interest to a marketer.  Applied research is more common than basic research because consumer  researchers want to solve particular business­related problems of immediate  interest.  basic research: Consumer research is divided into two broad categories   based on the goals of the research: basic research and applied research. Basic research looks for general relationships between variables, regardless of the  specific situation. For example, basic research has shown that using celebrity endorsers in advertising can increase consumers’ positive attitudes toward a  brand, especially when the celebrity is well liked and fits well with the  product  behavioral science: Behavioral science applies the scientific method,   relying on systematic, rigorous procedures to explain, control, and predict  consumer behavior. Thus, behavioral scientists study people and their  behaviors in  the same way that natural scientists study physical phenomena. Because  behavioral scientists study people, however, research findings are more  difficult to interpret. The primary methods of behavioral science include the  experimental approach—conducting controlled experiments—and the  marketing science  causal relationship: A causal relationship between two variables means that the variables are correlated and that one variable influences the other, but not vice  versa  In other words, a causal relationship exists if the following requirements are met: 1. The two variables are correlated. 2. The cause must precede the effect. 3. Other potential causes are ruled out.  causal research: is concerned with identifying and understanding cause­ and­effect relationships through experimentation. Consumer researchers are  especially interested in uncovering two special types of relationships— correlations and causal (causeand­effect). When a statistically testable and  significant relationship exists   between two variables, we say the variables are correlated. A variable is simply any factor that can potentially change.  consumer behavior: Consumer behavior: Entails all consumer activities associated with the purchase, use, and disposal of goods and services, including the consumer’s emotional, mental, and behavioral responses that precede, determine, or follow these activities  consumer insight: is a deep, profound knowledge   of the consumer that comes from integrating traditional marketing research  tools with consumer behavior theories.  correlation vs. causation  customer delight: goes a step beyond customer perceived value, suggesting  customer benefits that not only meet, but also exceed expectations in  unanticipated ways. P&G executives state that offering customers better  value when they first encounter a product in the store and purchase the  product, and then subsequently delighting customers during their usage  experience with the product, represents fundamental “moments of truth” for  the company. In other words, generating value and delight for consumers is  essential for long­term success. Likewise, L’Oréal, a French cosmetic  company, attempts to create customer delight by offering consumers  products in its line of Nutricosmetics, products that combines cosmetics and  nutrition. The company markets a “beauty pill” that reportedly firms the  skin. While both cosmetics and vitamins satisfy customer needs and wants,  the interconnection of the two creates unanticipated benefits for the consumer, and hence, customer delight.  customer perceived value: “is the consumer’s overall assessment of the  utility of a product based on perceptions  of what is received and what is given.” In other words, it is the estimated net gain customers receive from their sacrifice of time, money, and effort  expended  to purchase, use, and dispose of a product or service (i.e., benefits versus  costs).  descriptive research: More structured and rigid than exploratory research, a descriptive research study is done to  describe the characteristics of some group or their behaviors, or to make  predictions about trends or variables. For example, a study that measures the sales  trends of a product over time in relation to the economy would be a  descriptive study. A study that attempts to characterize the members of a  company’s target customer group by characteristics such as age, income, and education would be considered descriptive research. Data related to  descriptive research design are  collected with longitudinal studies or cross­sectional studies.  experiments: manipulate variables in a controlled setting to determine their  relationship  to one another. Researchers use experiments to rule out all but one  explanation for a particular observation. In designing an experiment,  researchers first  identify any variables that can possibly change.  exploratory research: is broad, qualitative research done to generate ideas  or  help further formulate problems for further research. For example, a  magazine  faced with a drop in sales may do exploratory research to generate possible  explanations. This type of research is often done when little is known about  the problem or research issue. With this type of research, the researcher is  usually not looking for a definitive solution to a problem, but guidance for  the next step. Key descriptors of this type of research are unstructured,  flexible, and general.  focus group: consists of 8 to 12 participants run by a moderator who  monitors and guides the group discussion of the research topic at hand.  Participants are usually  carefully screened so that the group members are relatively homogeneous  and  have the desired characteristics (age, gender, income, etc.) for the situation.  The moderator usually follows a very detailed but flexible script of  questions. Focus groups are conducted for a variety of reasons, including  brainstorming for ideas, generating hypotheses that can be tested further,  assessing new products, and evaluating promotional campaigns.  in­depth interview (IDI):  is a lengthy (sometimes lasting several hours), probing interview, where a carefully trained interviewer extensively questions a subject about his or her purchase motivations.  individual consumers: purchase good and services to satisfy their own personal need and want or to satisfy the needs and wants of others. Such as, satisfying household uses, family car, gift purchases.  Interpretivism: An alternative research approach to behavioral science that  relies  less on scientific and technological methodology   marketing concept: the idea that firms should discover  and satisfy customer needs and wants in an efficient and profitable manner,  while benefiting the long­term interests of the company’s  stakeholders.Today, the marketing concept is a core philosophy for many  successful organizations. As a result, these successful organizations focus on delivering customer perceived value and customer delight.  marketing research: is a systematic process of planning, collecting,  analyzing, and interpreting data and information relevant  to marketing problems and consumer behavior. Marketing research also  enables  businesses to better understand the market(s) in which they compete and the  broader environment in order to identify opportunities and threats. Finally,  consumer researchers use marketing research to analyze the effectiveness of  marketing strategies, programs, and tactics.  organizational consumers:  Organizational consumers purchase goods and services in order to:  Produce other goods or services  Resell them to other organizations or to individual consumers  Help manage and run their organization Include profit firms, and non profit  primary data: are new data collected specifically for the research purpose  at hand. If we  have to collect primary data, we must decide what method will be used to collect the information and how specific instruments will be designed  qualitative research methods: descriptive, non­empirical data are collected that describe an individual consumer’s subjective experience with the  product or service.  quantitative research methods:empirical data are collected. Empirical data are numerical, based on observation, experiment, or experience, rather than on speculation or theory. These data are used to perform sophisticated statistical analyses.  secondary data: are data that already exists and are readily accessible.  Survey: is simply a set of structured questions to which a person is asked  to respond. Chapter 2 Key Terms behavior based segmentation: Second, by tailoring a product or service to a segment’s specific needs, marketers can make the offering so appealing that the members of the segment are willing to pay a price that offsets the costs associated with catering to the specialized needs of the segment. Cannibalization: occurs when products offered by the same firm are so similar that they compete among themselves, thus creating a case of over- segmentation. heterogeneity: segmentation is the extent to which tastes and preferences differ among consumers. core benefit proposition: which relies on a single attribute or benefit that differentiates the brand from competitors’ offerings. When positioning with a core benefit, the proposition should be short and easy to remember and should sharply differentiate the product from competing brands. In others words, the benefit should be exclusively associated with the brand and strongly held in the consumers’ minds. demographic characteristics: customers’ vital population statistics. Age income, social class, occupation geo-demographic segmentation: combines geography and demographic segmentation bases; sometimes called zip-code marketing, this segmentation strategy relies on the common tendency for people who are similar along demographic dimensions to live in close proximity geographic based segmentation: marketers split the market based on physical location of potential customer majority fallacy: Because it is logical to assume that size of the potential market segment is positively correlated to profit, it is often easy for a company to focus exclusively on large average segments, where the majority of customer preferences lie, and neglect smaller, less typical segments. This tendency is called the majority market aggregation: is the opposite of market segmentation. A single products, one-size fits-all strategy in which individual differences among consumers are ignored market segmentation: is the process of dividing the large and diverse mass market into subsets of consumers who share common needs, characteristics, or behaviors, and then targeting one or more of those segments with distinct marketing mix. By identifying groups of highly similar consumers, a marketer can develop products and services specifically tailored to that group’s needs that also closely match the capabilities of the organization, thus maximizing the chances of profit and success. Two key assumptions underlie market segmentation. First, consumer preferences vary. Second, by tailoring a product or service to a segment’s specific needs, marketers can make the offering so appealing that the members of the segment are willing to pay a price that offsets the costs associated with catering to the specialized needs of the segment. perceptual mapping: measures the way products are positioned in the minds of consumers and show these perceptions on a graph whose axes are formed by product attributes. They are appealing because they provide pictorial representations of how consumers envision a brand. The maps provide a research tool to assess how multiple products in a category are positioned, how the attributes relating to the product are seen in the customers’ eyes, and whether there are any product “gaps” in the market. positioning: is the process of communicating with our target market(s) through the use of marketing mix variables- a specific product, price, distribution channel, and promotional appeal—in such a way as to help consumers differentiate a product from competitors and understand how a particular product best satisfies their needs. premium pricing: sometimes called prestige pricing, is pricing the brand at the high end of product category’s price range. Psychographics: which is a general term variously used to describe the measurement of lifestyle, attitudes, beliefs, and social values. repositioning: is the process of communicating with our target market(s) through the use of marketing mix variables- a specific product, price, distribution channel, and promotional appeal—in such a way as to help consumers differentiate a product from competitors and understand how a particular product best satisfies their needs. sale-costs trade-of target market : is simple the segment(s) toward which a firm’s markering efforts are directed. Selection of the target market(s) should be based on a thorough strategic analysis of the organization’s external environments (the mass market, competitors, and general technical, political, and sociocultural environments) and internal situations (past performance analysis and determination of future options), ultimately matching organizational strengths with market opportunities (commonly referred to as SWOT analysis). Chapter 4)  absolute threshold: The minimum level of stimuli needed for an individual  to experience a sensation  Adaptation: the process of  becoming desensitized to sensual stimuli. Over time, if a stimulus doesn’t  change,  we adapt or orient to it and notice it less. This is important to marketers  because as advertisements and other marketing stimuli become familiar, they are less likely to attract attention. \.  advertising wear­out: When an advertisement is overexposed, it loses the  ability to attract attention and interest   arousal: state of physical wakefulness or alertness, also influences  consumers’ attention. When arousal is extremely low, people are asleep. The level  of wakefulness or alertness people experience during the normal course of a  day is moderate.  attention: means focusing on one or more environmental stimuli whole  potentially ignoring others  closure: is the tendency for a person to perceive an incomplete   picture as complete, either consciously or subconsciously. People like to fill  in  missing pieces when a puzzle is incomplete  cognitive capacity: the ability to pay attention to and about information  comprehension: the ability to interpret and assign meaning to new  information by relating it to knowledge already  stored in memory  figure­and­ground principle   grouping: is the tendency to arrange stimuli together to form wellorganized  units. Thus, objects viewed in close proximity tend to be grouped  together, as do stimuli that move in the same direction together.  just noticeable difference (JND): is the amount of incremental change  required for  a person to detect a difference between two similar stimuli.   Miller’s Rule: people are able to consider approximately five to nine (seven plus/minus two) units of information at one time in working memory.  perception  phenomenal absolutism: That no two people perceive the world in the  same way is a challenging concept  because it is difficult for people to step outside their own physical senses,  i.e., to try to see things as others see them. The erroneous assumption that  everyone  else perceives the world as we do is called phenomenal absolutism.  salient stimuli: draw consumers’ attention involuntarily. Some products,  packages, and ads just “stick out” because they are different and interesting.  sensation: the body’s first and immediate response to a stimuli  sensory memory: is the preliminary, very brief recording of information  that happens  during sensation in the perceptual process. Sensory memory has a large  capacity for processing stimuli but lasts only a few seconds unless the  information  is transferred into short­term memory.    short­term memory: is the part of   memory where small bits of information are paid attention to and processed  for  short periods of time. All information that is actively and consciously  considered  is processed in short­term memory. This is why short­term memory is often  called “working memory,” “active memory,” or “conscious awareness.”   subliminal perception: is the unconscious awareness of a stimulus.  Technically, “subliminal” means beneath the absolute threshold (limen is  another word for threshold). Nevertheless, many subliminal messages are  actually supraliminal, meaning they fall above the absolute threshold, but are consciously repressed by the recipient. In other words, consumers don’t  consciously engage these messages; they process them at a subconscious  level.  vivid stimuli: like salient stimuli, draw attention automatically and  involuntarily. However, unlike salient stimuli, vivid stimuli are attention­ drawing across all contexts.   Weber’s Law: Weber discovered that the ability to sense a change in  stimulus level  depends on the original magnitude of that stimulus. The greater or stronger  the initial stimulus was, the greater was the amount of change required for it  to be  noticed. Chapter 5)  Absent­mindedness: Shallow or superficial processing of information  during  encoding or retrieval leads to poor memory performance. This type of  forgetting  Accessibility: Recently  processed information is more accessible or easy to retrieve than is  information that was processed long ago, relatively speaking.  Activation: or retrieval, refers to the transfer of information from inactive  long­term memory to active short­term memory.  Associations: or piece of information stored in memory is connected to  other nodes  that are conceptually related by links known as associations. Associations  are learned via classical conditioning and operant conditioning.   associative interference: New associations increase the complexity of  consumers’ associative networks and produce associative interference, in  which  the new associations compete with and block old associations.  associative network: Related nodes  are  connected in a complex associative network, in which closely related  nodes are connected directly by a single association, and distantly related  nodes  are connected by a chain or series of associations.  backward conditioning: the conditionied stimulus ( the advertisd brand) is  presented after the unconditioned stimulus (ex. Liakable music, people,  places) Learning still takes place, but the associations are weaker; higher  levels of repetitive advertising are needed for learning to occur.  bias: Previously viewed advertising can also influence what is learned from current product experiences. blocking: The order in which stimuli are presented has an important  influence on subsequent learning. For example, after consumers learn that a  target attribute (e.g., brand name) is useful for  predicting quality, other cues (i.e., other attributes) seem unpredictive. This  is known as blocking because the first predictive stimulus blocks or  prevents learning for other predictive stimuli encountered later. During the  learning phase of a recent study on blocking, participants received attribute  (AireCell  or closed­cell compartments) and brand name (Hypalon or Riken)  information for several products in an unfamiliar category (rafts).  classical conditioning: (or Pavlovian conditioning) is a learning theory  centered on creating associations between meaningful objects or ideas  (or what researchers call stimuli) to elicit desired responses. .  conditioned response: Over time, the pairing leads to the response, without the original unconditioned stimulus, and this response is called the  conditioned response (CR, or salivation at the sound of the bell even when  no food is presented).  conditioned stimulus: is paired with a neutral object, called a conditioned  stimulus (CS, or the bell in this example).  continuous reinforcement: The presence of punishment also decreases the  probability of a response. Learning via operant conditioning is faster under  conditions of continuous reinforcement, or  when reinforcement occurs every time the desired response occurs.  corrective advertising: that states that a previous ad was misleading, as in  the famous Listerine  case. A Listerine ad stated that Listerine kills germs that cause colds, which  simply was not true. Listerine’s corrective ad stated that Listerine does not  help prevent colds. Nevertheless, extensive research has shown that  corrective advertising is typically ineffective because consumers have  difficulty changing their beliefs dramatically, even when they realize that  those beliefs are wrong.  encoding: refers to attention, comprehension, and the transference of  information from short­term memory to long­term memory.  encoding­specificity principle: memory is context dependent. Contextual  or background cues have a surprisingly powerful influence on memory  performance. During encoding, contextual cues are encoded along with the target information one is trying to remember.  extinction: or the absence of a reward, decreases the probability of a  response. The presence  of punishment also decreases the probability of a response.  forward conditioning: Greater learning or conditioning occurs when the  conditioned stimulus is presented before the unconditioned stimulus. This is known as forward conditioning because the presence of the conditioned  stimulus can be used to predict the subsequent occurrence of the  unconditioned stimulus.  generation effect: shows that memory performance is enhanced when  people generate their own answers to questions rather than simply reading them. This occurs because  generating answers requires more effort than simply reading  answers, and memory improves as effort increases.  mere­exposure effect: The more familiar an  initially neutral product becomes, the more consumers like the product. This is known as the mere exposure effect because repeated exposure to a  product  increases familiarity and liking.  misattribution: or confusion of the CS with the US, contributes to  evaluative conditioning.  negative reinforcement: or the absence  of punishment, also increases the probability of a response.  node: idea, or piece of information stored in memory  operant conditioning: the stimulus follows the response  partial reinforcement: However,  learning via operant conditioning is more persistent under conditions of  partial reinforcement, or when reinforcement occurs only some of the times  the desired response occurs.  persistence: refers  to the inability to forget things one wants to forget.  positive reinforcement: Positive reinforcement, or the presence of a  reward, increases the probability of a response,  pre­exposure effect: many ads use unconditioned stimuli that are  ineffective because they were previously encountered alone without pairing  (the unconditioned stimulus pre­exposure effect).  priming effect: Priming occurs in situations in which consumers are subtly  led to think about a concept, such as a brand name, a product category, an  attribute, a benefit, or any idea. Can be reduced or eliminated by adding  new associations to consumers’ associative networks.  or a temporary increase in the ease with which  ideas can be retrieved from memory.  proactive interference: occurs when  information learned earlier blocks memory for information learned later.  punishment : also increases the probability of a response.  retrieval: refers to the transference of information from long­term memory  to short­term memory. Lapses of attention or effort during encoding or  retrieval can lead to forgetting.  retroactive interference: occurs when information learned later blocks  memory for information learned earlier.  shaping : or reinforcing successive approximations of the desired response,  also can be used to encourage current nonusers to buy your  product. For example, a retailer may first reward nonusers to visit the mall  where the store is located by offering a free fashion show.  spacing effect: The encoding­specificity principle also suggests that it is  better to learn  information in many different contexts and many different brief sessions  over time, rather than in one long cramming session. This effect is known as the  spacing effect. Spacing is beneficial because the context for learning is  likely  to vary over time, and because people are likely to use different encoding  strategies and different cues for encoding over time.  spreading activation: refers to the idea that when people  retrieve a particular node, they automatically think about other closely  related nodes.  suggestibility: Misleading questions and suggestions can also lead to a  form of memory distortion known as suggestibility.  tip­of­the­tongue effect: Sometimes people know they  know the answer to a question, but they cannot quite put their finger on it.  This is known as the tip­of­the­tongue effect: the  answer seems to be on the tip of your tongue, but you can’t quite retrieve it.  transience: People tend to forget details over time, and this type of  forgetting is known as transience.  truth effect : As the familiarity  of a product claim increases, the more consumers believe the claim. This is  known as the truth effect.  Simple repetition (e.g., repetitive advertising)  is one way to increase the familiarity of a product, a claim, or an idea, and  simple repetition can increase judgments of fame, confidence, liking, or  truth. Increasing the ease with which consumers can perceive, read, or  comprehend  product information also increases familiarity.  unconditioned response: The unconditioned stimulus has a known  response  called an unconditioned response (UR, or salivation in this example).  unconditioned stimulus: According to the theory, learning results when a  meaningful or important object, called an unconditioned stimulus Chapter 6)  adaptive unconscious: suggests that  the unconscious mind can be trained to perform routine mental activities.  This  is beneficial, rather than harmful, because it enables people to devote more  attention and thought to non­routine mental activities.  assimilation effect: consumers assimilated the target with the prime. The  results were very different when the ad contained an unambiguous  automobile. In this case, participants who were primed with inexpensive  brands rated  the moderately priced target (with a clearly visible brand name) as  expensive,  while participants who were primed with expensive brands rated the target  as inexpensive.  automatic information processing: refers to mental processes that  influence judgments, feelings, and behaviors, but occur without awareness  or intention.  contrast effect: because consumers contrasted   the target with the prime. In summary, priming produced assimilation effects when the target was ambiguous and contrast effects when the target was  unambiguous. The results also showed that consumers did not think that the  puzzles  influenced their judgments.  distraction effect  explicit attitudes: attitudes that consumers express consciously  explicit memories: searching for information stored in memory  habit theory: Habits are repetitive behaviors that are relatively uninfluenced by current intentions, goals, and attitudes.  Habits are cued instead by the environment. When behaviors are performed  repeatedly in the same context over time, a behavior context association is  formed in memory, and this association is surprisingly  resistant to change.  One important implication of habit theory is that the best time to break  a bad habit is when the context changes, like when a person moves to a new  apartment or a new house, or when a person starts a new job.   implementation intentions: or behavioral intentions to perform  specific actions at specific times and places.  Implicit Associations Test IAT : is a new procedure for measuring  sensitive beliefs, including those held without awareness or intention.  implicit attitudes: attitudes that consumers express unconsciously  implicit memory: memory used as a tool without awareness or intention  intuition: knowing or understanding without purposeful thinking  mindset priming effect: occurs when the cognitive activity performed  during the first session tends to be performed again in the second, even if the products considered during the two sessions are completely different  naïve theory priming effect: theories or assumptions of how the world  works  placebo effect  procedural priming effect: occurs when situations are linked to cognitive  or motor processes via “if X, then Y” linkages, where X refers to a specific  situation and Y refers  to a cognitive or behavioral activity  subliminal priming: or presenting priming stimuli below the  level of conscious awareness, can also influence consumer judgment and  choice.  thin­slice interferences: guesses made regarding a person’s personality  traits, current feelings, and goals, based on  brief observations of that person’s behavior  truth effect: as familiarity with a product claim increases, so does the  consumer’s belief that the claim is true


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