Study Guide for Midterm #1
Study Guide for Midterm #1 MKT310
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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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