Twenty adult males between the ages of 30 and 40 participated in a study to evaluate the eect of a specic health regimen involving diet and exercise on the blood cholesterol. Ten were randomly selected to be a control group, and ten others were assigned to take part in the regimen as the treatment group for a period of 6 months. The following data show the reduction in cholesterol experienced for the time period for the 20 subjects: Control group: 7 3 4 14 2 5 227 9 5Treatment group: 6 5 9 4 4 12 37 5 3 3 (a) Do a dot plot of the data for both groups on the same graph. (b) Compute the mean, median, and 10% trimmed mean for both groups. (c) Explain why the dierence in means suggests one conclusion about the eect of the regimen, while the dierence in medians or trimmed means suggests a dierent conclusion.
MKTG 315 – Exam 1 Study Guide This review identifies concepts with which you should be familiar at this point at this point in the course. This list is not meant to be comprehensive; other concepts may be included on the exam. However, understanding the concepts included here is an essential first step toward an excellent exam score. The format of the exam will be multiple choice (around 40 questions) and essay (23 questions). Exam questions may come from the text, lectures, assignments, and classroom discussion. This study guide focuses on the lecture material. I suggest that you also see the textbook review cards for the key points in each chapter. Study hints: Quiz yourself or another student on the items listed here. Make sure that you know more than just the definition of each concept. How does it apply to consumer behavior and marketing (Think of examples!) If you have not yet acquired the PowerPoint slides for this course, I highly recommend doing so. The slides provide an outline of what I consider to be most important in each unit. If you missed any lectures, or wish to review lecture material, listen to the “old lectures” posted to Blackboard. (Past students have said they found this to be very helpful.) The bulk of the exam material will come from the lecture material covered in class. However, some material from the text will be included. For an excellent exam score, you must read the text. Visit me in office hours if there are concepts that you do not understand. Self Concept and Consumption (Ch 6, 11619) What is meant by the term selfconcept Refers to the totality of thoughts and feelings that an individual has about him or herself This includes: traits, values, selfesteem, feelings, goals, narratives, relationships, body image, gender identity and lifestyle What is the difference between an actual self and an ideal self Actual social self and ideal social self Selfconcept is multifaceted: Actual self how I see myself Ideal self how I would like to be Actual social self how others see me The difference between the actual self and ideal self are that the actual self is how I see myself whereas the ideal self is how I would like to be. For example, when filling out a roommate survey for college roommates, it is often a problem when people fill them out for how they would like to be in college versus how they actually are, therefore they find that they often conflict with their roommates. The difference between actual social self and ideal social self is how people actually see you versus how you would like people to see you. How are consumption objects or brands used to communicate with others Products will be chosen when their attributes match some aspect of the self. For example, a study has found that store loyalty is influenced by the congruency between selfimage and store image. Intro to Consumer Behavior (Ch. 1, 2, 5* ) What is consumer behavior The dynamic interaction of affect, cognition, behavior and environmental events in the exchange process. What is value What are the two types of value that consumers may derive from consumption Value could be anything (money, time, effort, products, services, good feelings, etc.) Customers give up something of value (time, money) to obtain something of value (product, service) What are the three types of consumer responses (Know your ACB’s and how to apply to either an advertising example or a purchase decision.) The three types of consumer responses are 1) affect how consumers feel 2) cognition what consumers think 3) behavior what consumers do Describe several characteristics of the affective system. includes emotions, moods of varying intensity, and valence (positive/ negative) physiological as well as psychological system (responses vary in level of arousal produced) reactive system (automatic) What does the cognitive system do includes the mental stuctures and processes involved in thinking, understanding, evaluating, planning and deciding (thoughts, beliefs, ideas, plans, etc) a major function of cognitive systems is to interpret, make sense of and understand significant aspects of personal experience What is the marketing concept The social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives. *** THE FOCUS IS ON THE CONSUMER*** How is the focus of marketing different from other business disciplines The focus of marketing is surrounding the customer’s needs being satisfied and a byproduct of that being a profit, rather than the focus being a profit by way of satisfying customer’s needs. ***THE FOCUS IS ON THE CONSUMER*** Does consumer behavior only involve product purchase What other consumer decisions/actions are relevant to the study of consumer behavior *Treat these 2 chapters as a general review of concepts that you should be familiar with after MKTG 310, and that may appear on the exam. In addition, these chapters set the context for the course. *You do not need to know how to calculate price elasticity (p. 34), though you should have already learned this in MKTG 310 (so review it if you don’t remember what it is!). *You do not need to know how to calculate customer lifetime value (p. 38) but understand the general principle behind it. Ethics and Consumer Behavior (Ch 16) What are some of the criticisms of marketing Why does marketing have such a poor reputation when it comes to ethics and honesty Criticisms of marketing: it is untruthful/ deceptive it is offensive it encourages stereotypes it influence/controls the media Marketing has such a poor reputation when it comes to ethics and honesty because people believe that marketers try to deceive customers in order to make a profit. People believe marketers: intentionally discontinue products and support to force people to buy new ones marketers charge higher than reasonable prices when consumers have no choice marketers use manipulative sales tactics to unfairly influence people sometime consumers are completely unaware that they are being marketed to What are the 3 dimensions of the CST Be able to apply these to an example. 1) Consumer capability are there any vulnerable factors that may limit decision making (age, income, education) a. 3 kinds of vulnerability: 1) chronic you have to worry about these people all the time 2) product category specific lack of education/ knowledge (ex. College kids and credit card) 3) situation you need to make a decision but youre not in a good place (ex. Death) 2) Information does the consumer have adequate information to make a good decision or to judge whether expectations will be met And misleading or withheld info 3) Choice does the consumer have a choice *You should be familiar with the variety of areas of ethical concern identified in Ch 16 (both consumer and marketer misbehavior) *We will cover “manipulative sales tactics” at another point in the course (p. 324325) *You do not need to know the various motivations of consumer misbehavior (p. 309310) *You do not need to know the specific legislation regulating commerce and consumer safety (i.e., don’t memorize the name of each act) but you should have a sense of the types of regulations that exist and the domains in which regulation has occurred (p. 322) Memory (Ch. 3* , 4* ) What are the characteristics of short term memory holds 59 pieces of information lasts 1830 seconds has sensory based inputs (echoic/ iconic memory) Information loss (forgetting stuff) is due to rehearsal/ encoding failure Rehearsal and encoding move information from STM to LRM o Rehearsal= mental repetition o Encoding= assigning something meaning to establish connections to previously stores concepts. What is the primacy effect The recency effect How can they be applied to marketing practice primacy effect: first items into memory have a better chance of being remembered recency effect: last things into memory have a better chance of being remembered When showing a commercial, you should have the first and last things be the most important, for example, the first scene should show the product and the last thing should show the brand. In a billboard, the top left will most likely be the first thing read since we read from left to right and top to bottom. The brand should most likely be placed in the bottom right. What are the characteristics of long term memory How can they be applied to marketing practice Unlimited capacity Items are permanent Semantic (meaning based) Information is never lost, we just fail to retrieve it o Decay not being able to remember because you haven’t used that path in a long time o Interference when something else in the network is getting in the way of what you’re trying to remember Discuss 3 principles of LTM. Be able to give an example of how a marketer could use each principle. 1) Organizational principle: organization facilitates memory performance a. If you are systematic about learning things, you will have a better chance of remembering it 2) EncodingSpecificity principle: contextual or background cues present during learning and during retrieval influence memory performance. a. Ex. Figuring out what you had for dinner last Thursday would require the context of the day. 3) Association principle: pieces of info stored in memory are connected to other related pieces of info a. This is how our memory works. Explain the associative network model of memory (structure, how it works). eache piece of information stored in memory is represented by a node. Each node is linked to other nodes through association Closely related nodes may have a direct link; others may be connected through a series of associations. Some links are strong while others are weak Activation is the transfer of information from inactive LTM to STM Retrieving info from memory begins with activation of a node Continued activation (cognitive energy) spreads from this node with decreasing strength through the associative network, activating other concepts and priming other concepts to be activated. o When we activate, we light up a node and this lights up the other associated nodes (most strongly connected nodes) What is associative interference When might you want to encourage/discourage it How this is the failure to retrieve/activate desire nodes due to activation of other nodes. This can occur when too many links have been activated in an associative network Marketers try to discourage this so that you can clearly remember their ads You might want to use this to combat rumors ex. Worms in McDonald’s burgers What are schemas and scripts Schema: is organized general knowledge structures around a particular subject o Like memory maps, all of your ideas around a topic Script: organized procedural knowledge structures containing sequences of actions appropriate for a particular situation o Ex how to get ready in the morning, how to move through a grocery store What is the difference between implicit memory and explicit memory implicit memory: subconscious explicit memory: conscious Perception (Ch. 3 [p. 4760], 4 [p. 6574]) List the stages of perception. Why is it important for a marketer to understand these Environmental stimuli > exposure > attention > comprehension > acceptance > retention What’s the difference between intentional, accidental, and selective exposure What are some ways marketers can facilitate intentional exposure and maximize accidental exposure (Examples) intentional exposure: when a person purposely searched for information relevant to a goal or problem o ex. Going to a store, talking to a salesperson accidental exposure: occurs when a person unexpectedly encounters marketing or other information in the environments o ex. Running into a sample table at Costco selective exposure: ways that we weed out exposure o ex. Facebook filters, following things on twitter, etc. Marketers should facilitate intentional exposure by making information easily accessible Marketers should maximize accidental exposure by making people run into your ads so that when they need a product, your company is what comes to mind. Be able to identify and/or explain the personal determinants of attention and give examples. Motivation: o Need: if you’re hungry you will pay attention more to food signs. o Personal interest: if you like golf you will pay attention to golf ads. o Attitudes we usually look for information that confirms what we believe. Ability: o Expertise: if you encounter a highly technical car ad, you will screen it out because you just aren’t getting it. o Adaption level: you get used to things in your environment o Attention span: you only have so long of an attention span Opportunity: o Arousal: the level of stimulation in the body o Situational influences: what’s going on around you, are you distracted Be able to identify and/or explain the stimulus determinants of attention and give examples. size color contrast directionality movement/ scene changes intensity novelty vividness learned response What is the difference between a novel stimulus and a vivid one Novel something we would not expect to see. It’s new, creative. This grabs us because it is unusual or different. Superbowl ads are known for their novelty. Ex. Rocking out Mic Jagger Pepsi commercial, or Budweiser commercials with puppy Vividness something that grabs our attention because it has some sort of sensory proximity to us. Grabs you emotionally, easy to imagine, put you in that scenario, etc. Ex. Benetton heart ads. Social message that no matter what color you are on the outside we all have the same heart. This is vivid because it is hard to ignore and novel but the vividness is drawn because it kind of grabs you and it appeals to the emotion. It leaves nothing to the imagination. Ex. Tattoo parlor video the needle going in is painful. If something gets you to wince, it is pretty vivid. Why is the concept of just noticeable differences important to marketers In what situation might a marketer want to cross the differential threshold When would a marketer not wish to cross it (from the book) JND: condition in which one stimulus is sufficiently stronger than another so that someone can actually notice that the two are not the same. o When marketers make a positive change, they should make sure that the difference is noticeable but when making a negative change, implement it in small increments so that each difference is not distinguished from what existed previously. Ex. $24.49 is not seen as that different from $24.99 therefore price reductions should be made more obvious whereas price increases should be less obvious. Quantity is the same way. 284 isn’t seen as that different from 296 Describe the comprehension process. How does it relate to what we learned about memory Processing: highly automatic, little conscious awareness to more controlled, greater awareness Level: shallow, concrete meanings: blue nIkes;;; deep abstract meaning: these shoes will help me become a better athelte Elaboration: low, few connections to high, many connections We comprehend things based on what we remember. We take in something new and figure out how to deal with it based on what we have stored in memory. Similar to encoding because you are relating new information to already stored things, but comprehension continually relates information based on memory as well as new information. It is a continual process. Elaboration is the process of adding on information to old information. A lot of time comprehension involves inferences. How may message design characteristics influence comprehension color font figure/ground simplicity congruity What factors influence message acceptance depends upon the persuasiveness of the stimulus cognitive responses support arguments—he’s a doctor we can trust him counterarguments she’s getting paid to say that affective response: if we have a positive one, we will be more likely to accept it. How do message sources influence acceptance If we trust the source of the information then we will be more likely to accept it. likeability attractiveness expertise trustworthiness