Marketing 330 - Flashcards

Q: Myths about Marketing

- primary objective is to make people buy things they don\'t need - marketing adds little value to the product - marketing leads to higher prices - marketing is propaganda for a materialistic life

Q: Consumer Behavior

the science behind marketing and consumption - \"The set of value seeking activities that take place as people go about addressing and attempting to address real needs\" - Explaining, rather than predicting, consumer behavior - Helping us understand the needs of consumers and how to create value for them

Q: What is consumer behavior?

\"The study of human thought and action involved in consumption\" Anne\'s definition: 1. CB is more than just buying - acquiring, using, dispensing 2. CB is more than just products and services - offerings and ideas 3. CB involves more than just one person

question

Myths about Marketing

answer

- primary objective is to make people buy things they don't need - marketing adds little value to the product - marketing leads to higher prices - marketing is propaganda for a materialistic life

question

Truths about Marketing

answer

- centered around building CONSUMER VALUE - the consumer is the reason why marketers exist - you fulfill consumer needs by developing products, pricing, and promoting them - is an academic discipline

question

Consumer Behavior

answer

the science behind marketing and consumption - "The set of value seeking activities that take place as people go about addressing and attempting to address real needs" - Explaining, rather than predicting, consumer behavior - Helping us understand the needs of consumers and how to create value for them

question

Marketing stems from different studies

answer

- Cognitive Psychology - Marketing - Anthropology - Social Psychology - Sociology - Economics

question

Who benefits CB

answer

- Marketing managers - Advocacy and consumer welfare groups - Public policy makers - Consumers

question

Segment 1

answer

General Marketing + Psychology (Internal Influences)

question

Segment 2

answer

External Influences

question

Segment 3

answer

Decision Making Process: Problem Recognition --> Information Search --> Evaluation of Alternatives --> Decision Implementation --> Post-purchase Evaluation

question

What is a consumer?

answer

1. Purchaser 2. User 3. Influencer

question

What is consumer behavior?

answer

"The study of human thought and action involved in consumption" Anne's definition: 1. CB is more than just buying - acquiring, using, dispensing 2. CB is more than just products and services - offerings and ideas 3. CB involves more than just one person

question

Who benefits from CB?

answer

- Marketing managers - Advocacy and consumer welfare groups - Public policy makers and regulators - Consumers

question

Key Questions

answer

1. Why do people consume - because they have needs and wants 2. How do they decide what/when/where/how to address these needs - value judgements

question

Consumption

answer

the process by which goods, services, or ideas are used and transformed into value

question

Consumer behavior is a behavioral science

answer

behavioral sciences vs. physical sciences: - Dynamic vs Static - Physical is more controllable (behavioral is more uncertain) - Closed system where work is within a particular framework - Revolves around humans and societies

question

Why do we marketers need to know consumer behaviors?

answer

- understand the consumer - "Fit" our products to the needs (and desires) of the consumer - Develop better marketing strategies In sum, create VALUE - personal assessment of the net worth obtained from an activity

question

Value

answer

Personal assessment of the net worth obtained from an activity. Captures how much gratification a consumer receives from consumption.

question

What is Value?

answer

Benefits - Costs

question

What influences value?

answer

Internal - psychology and personality, Cognition and affect External - situation, social

question

Consumer Value Framework

answer

http://i.imgur.com/pwCTokI.png

question

Examples of Value

answer

Can vary depend on the product: - Value of fast food - Value of Walmart - Value of facebook

question

Utilitarian Value

answer

Gratification derived because something helps a consumer solve a problem or accomplish some tasks Consumers provide a rational explanation for their purchases Value is provided because the object or activity allows something good to happen or be accomplished e.g. FRUIT

question

Hedonic Value

answer

Value derived from immediate gratification that comes from some activity. Value is provided by the actual experience and emotions associated with consumption. e.g. CHOCOLATE CAKE

question

Differences between Hedonic and Utilitartian

answer

Hedonic is an end in itself rather than a means to an end. It is emotional in nature.

question

Marketing Strategy

answer

Way a company goes about creating value for customers. Provides an effective way of dealing with competition. Firms that fail to realize how their products provide value develop marketing myopia.

question

Marketing Myopia

answer

condition where a company views itself in a product business rather than in a value or benefits-producing business.

question

Marketing Tactics

answer

Way by which marketing management is implemented (involves price, promotion, product, distribution)

question

Marketing Strategy and Consumer Value BOTTOM LINE

answer

Marketing strategy and tactics should maximize the total value received by customers

question

What does value influence

answer

Value influences the quality of the relationship - switching behaviors - customer loyalty - customer share

question

CB Research and Segmenting, Targeting, and Positioning

answer

Developing a Customer-Oriented strategy - Marketing activities are designed to fulfill customer needs - Consumers can be segmented based on differing needs and wants - CB research identifies segments and helps determine which to select as target market

question

Segmenting

answer

Market segmentation separates a market into groups based on the different demand curves associated with each group. Requires marketing researchers to identify segments and describe its members

question

Product Differentiation

answer

Marketplace condition in which consumers do not view all competing products as identical to one another

question

Marketing Mix

answer

Combination of product, pricing, promotion, and distribution strategies used to implement a marketing strategy

question

Target Market

answer

Identified segment or segments of a market that a company serves

question

Perceptual maps

answer

develops an idea of a new product's likely success as compared to other competing products

question

Customer Lifetime Value CLV

answer

Calculates long term profitability of a single customer. It is the approximate worth of a customer to a company in economic terms. CLV = npv (sales-costs) + npv (equity)

question

Market Research Segmentation Strategies

answer

4 basic strategies

question

Geographic Segmentation

answer

is based on regional variables, climate, population density, population growth rate

question

Demographic Segmentation

answer

is based on variables such as age, gender, ethnicity, occupation, income, and family status

question

Psychographic Segmentation

answer

is based on variables such as values, attitudes, and lifestyle

question

Behavioral Segmentation

answer

is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought

question

The Global Consumer

answer

Pressure to understand similarities and differences of customers in various countries.

question

Intuition Versus Research

answer

- People are overconfident - We like to have our beliefs and intuitions confirmed (confirmation bias) - Tend to base decisions on intuition/vivid information - Research plays an important role in testing our intuitions

question

Qualitative

answer

Interpretive (phenomenology, ethnography, netnography) Pros: - can help identify patterns of consumer behavior that the researcher was not necessarily aware of beforehand - allows for a richer exploration of consumer experiences Cons: - somewhat subjective - unstructured

question

Quantitative

answer

Numbers driven (experiments, analysis of pre-existing datasets, surveys) Pros: - statistically validated - allows for replication, findings are often generalizable Cons: - answers are restrictive - may suffer from confirmation bias

question

Focus Group (Qual)

answer

Group of people asked about their perceptions, opinions, beliefs, and attitudes

question

Consumer Panels (Quant)

answer

Pre-recruited group of people who agree to participate, selected from a segment of interest Provides generalizable data for companies and researcher

question

Observational Research (Qual)

answer

Draws inferences about the possible effect of a treatment on subject

question

Experiments (Quant)

answer

Investigator has control over assigning subjects to a treatment group and control group

question

Market Testing (Both)

answer

to test multiple marketing scenarios and select the most promising for expansion

question

Test Market (Field Experiment)

answer

Studies the effectiveness of one or more elements of the marketing mix evaluating sales of the product in an actual city

question

Primary Data

answer

- Collected for the current purpose. - Could be internal or external

question

Secondary Data

answer

- Collected for some other purpose

question

General Rule of Thumb

answer

Collect secondary data first, then turn to primary data. Secondary data is cheaper and quicker to get. Disadvantages of Secondary Data - may be out of data or might not be specific enough

question

3 Factors Necessary for Causation

answer

1. Correlation 2. Temporal Antecedence 3. No third factor driving both

question

Spurious Correlation

answer

Spurious = artificial Danger of data mining Lots of things are correlated, but not all are related

question

Perception Chart

answer

http://i.imgur.com/BYrvue6.png

question

Learning

answer

The change in behavior resulting from interaction between a person and a stimulus

question

Perception

answer

Consumer's awareness and interpretation of reality Value is based on perception, not reality. Learning, intentional or unintentional, depends on perceptions

question

Exposure

answer

Consumer comes into physical contact with a stimulus - possibility of noticing the information

question

Ad Competition

answer

We see over 5000 messages per day. Only a small number are remembered. 30% are remembered negatively

question

Selective Exposure

answer

have to pick a medium to send your messages

question

Selective Attention

answer

have to do something to get your message noticed

question

Selective Perception

answer

have to make sure they understand your message

question

Selective Retention

answer

have to make sure the message makes it to the memory

question

Influencing exposure

answer

Select the correct medium Positioning within a medium - magazine - tv - in store Choose product distribution and placement - selective exposure

question

Intentional Exposure

answer

Consumer Reports

question

Intentional Avoidance

answer

- Junk mail - Fast-forward through commercials - Switching channels during commercials - Blocking senders

question

So we are exposed

answer

Now we have to get consumers to pay attention

question

Attention = Gateway to Perception

answer

Markers need to break through the clutter to get people to pay attention to ads (e.g. orkin ad)

question

Ways to Enhance Attention

answer

- Intensity - Contrast - Movement - Surprise - Size - Involvement

question

Selective

answer

at a party, but you can still hear your name mentioned across a room

question

Divided

answer

Talk on the phone and clean house

question

Limited

answer

Turn down radio when we are looking fora particular address

question

Pre-attentive Processing

answer

Can we attend to something in or peripheral vision even if we are already focusing on something else?

question

Hemispheric Lateralization

answer

Left - numbers, words Right - music, pictures

question

Habituation

answer

Novelty can wear off When a stimulus is too familiar it loses attention-getting ability e.g. aqua pods

question

Exposure and Attention Summary

answer

Exposure is necessary but not sufficient Attention is the gateway - and there are many ways get through the gate BUT once you are in, you must convey something substantive and lasting

question

Phases of the Consumer Perceptions Process (Sensing)

answer

Sensing - immediate response to stimuli that have come into contract with one of the consumer's five senses

question

Phases of the Consumer Perceptions Process (Organizing)

answer

Organizing - cognitive organization is the process by which the human brain assembles sensory evidence into something recognizable

question

Phases of the Consumer Perceptions Process (Reacting)

answer

Reacting - end of the perceptual process. Occurs as a response to behavior. Includes physical and mental responses to the stimuli encountered

question

Perception/Comprehension

answer

Interpretation or understanding that a consumer develops about some attended stimulus in order to assign meaning. Perception is constructive. People construct interpretations on the fly.

question

Perception is crucial in CB

answer

Perception IS Reality What customers perceive is what affects their actions What is perceived is not necessarily what is "true".

question

Subliminal Messages

answer

below the sensory threshold. We cannot articulate what we have seen because we are not consciously aware that we have seen it Supraliminal is not paying attention... conscious that something is changing, but can't put your finger on how or what

question

Mere Exposure

answer

The more we are exposed to a stimulus, the more familiar it becomes and the more we like it.

question

What do we perceive? (JND)

answer

JND (Just Noticeable Difference) - condition in which one stimulus is stronger than another so that one can notice that the two are not the same

question

What do we perceive? (Weber's Law)

answer

Weber's Law - consumer's ability to detect differences between two levels of a stimulus decreases as the intensity of the initial stimulus increases

question

What do we perceive? (JMD)

answer

JMD (Just Meaningful Difference) - smallest amount of change in a stimulus that would influence consumer consumption and choice

question

JND Marketing Implications

answer

- Pricing - Quality - Quantity - Add On Purchases

question

Gradual Change

answer

Campbells soup cans

question

Change Takeaway

answer

- Less change made at a time may be unnoticed by a consumer - Change a lot at once and it will be noticed - Not all noticeable changes may be meaningful and impact choice

question

The Perceptual Process

answer

Interpretation is constructed as needed and is based on: - The ACTUAL stimulus or event - Prior expectations What we see depends on what we expect to see. What we hear depends on what we expect to hear.

question

Perceptual Biases

answer

- Figure and Ground - Proximity - Similarity - Closure - Continuation

question

Gestalt Principle

answer

Seeing things as wholes rather than parts. People desire perceptions that are simple, complete, and meaningful

question

Perceptual Constancy

answer

People strive to perceive the world as relatively unchanging

question

Intentional Learning

answer

Process by which consumers set out to specifically learn information devoted to a certain subject

question

Unintentional Learning

answer

Occurs when behavior is modified through a consumer-stimulus interaction without any effortful allocation of cognitive processing capacity toward that stimulus Consumers in unintentional learning - sense and react to the environment - learn without trying to learn - do not attempt to comprehend the information presented - exposed to stimuli and respond in the same way

question

Types of Memory

answer

- Sensory Memory (registers) - Short term (workbench) Memory - Long term memory

question

Sensory Memory

answer

Information that comes in through our senses - echoic memory - very brief memory of things we hear - iconic memory - very brief memory for things that we see If it is not processed, we lose it.

question

Short Term Memory (STM)

answer

Portion of Memory where incoming information is encoded and interpreted - Limited capacity - increased for higher involvement Short-lived duration - working memory

question

Repetition/Rehearsal

answer

Holding a thought in short-term memory by mentally repeating the thought

question

Dual Coding

answer

Two different sensory "traces" are available to remember something

question

Meaningful encoding

answer

Occurs when preexisting knowledge is used to store new information e.g. phone number with words

question

Chunking

answer

Grouping stimuli by meaning so that multiple stimuli becomes a single memory unit. e.g. SSN

question

Long Term Memory

answer

Permanently stored knowledge - autobiographical memory - semantic memory - knowledge about the world

question

Implicit Memory

answer

Unintentional learning (without conscious recall)

question

Explicit Memory

answer

Intentional learning (with conscious recall)

question

Associative Networks Organize Memory

answer

Network of mental pathways linking knowledge within memory

question

Declarative Knowledge

answer

Cognitive components that represent facts. Nodes - Concepts found in an associative network Paths - Representations of the association between nodes

question

Associative Network Influence Retrieval

answer

- Stronger links are more accessible - marketers try to strengthen links between brands and associations - Spreading activation - explains our seemingly random thoughts - Responsible for false recall - can't retrieve when link fades - Sleeper effect - source decays faster than message

question

Cognitive Schema

answer

Schema - a type of associative network that works as a cognitive representation of a phenomenon that provides meaning to that entity

question

Taxonomic Categorizing

answer

Similar objects in the same category Objects can have the same features (lots of sharing within, little sharing across) 3 Levels: - Superordinate - Basic - Subordinate

question

Feature Identification

answer

We tend to group things based on common features because that is the way the world is usually organized. When we don't know how to interpret something new, we look for common features that will help us identify the concept.

question

Prototype (Prototypicality)

answer

Graded structure - some members represent category better than others

question

Membership Classification

answer

Cognitive categories appear to have graded membership. Some objects are better members of the category than others Prototype - compare stimulus in each group ( classify it as belong to the group with the most similar prototype) Exemplar - compare stimulus to all existing brands in each category (classify it as belonging to the group which is it is on average most similar)

question

Why does categorization matter

answer

Determines competition among products and brands. Categorization affects the consideration set. Category structure affects retrieval and evaluation of alternatives Categorization influences inference making and elaboration about alternatives

question

First Mover Advantage

answer

Allows you to be the prototype Easier recall increases sales

question

Positioning

answer

Position close to or away from the prototype Position relevant to the goal Repositioning - can we use placement to change categorization

question

Brand Image

answer

refers to the schematic memory of a brand

question

Brand Equity

answer

the value consumers assign to a brand above and beyond the functional characteristics of the product

question

Brand Leverage

answer

marketers capitalizing on brand equity by using an existing brand name for new products (brand extensions, family branding, umbrella branding)

question

Strong Brand

answer

- make clear promises that are kept over time - have rich unique brand equity - dependable

question

Weak Brands

answer

- make vague promises over time - low brand equity - create doubt

question

Objective Comprehension

answer

- whether the meaning that the consumer extracts from a message is consistent with what the message actually stated

question

Subjective Comprehension

answer

the different or additional meaning consumers attach to the message, whether or not these meanings were intended

question

Miscomprehension

answer

Occurs when consumers inaccurately receive the meaning contained in a message. Greater chance of occurring when messages are complex, only shown for a few seconds, or only scene once or twice.

question

Memory Takeaway

answer

Few consumer decisions are based on just the information in the environment. Almost all consumer decisions include some memory component.

question

Motivation

answer

Driving forces behind human actions that push consumers to address real needs

question

Homeostasis

answer

Maintaining a current acceptable state

question

Self Improvement

answer

Changing from current to ideal

question

Drive

answer

a gap between where you are creates arousal or tension

question

Drive Theory

answer

proposes that consumers seek only to achieve homeostasis, an elimination of biological needs

question

Expectancy Theory

answer

proposes that consumers consider whether their behavior will tend to result in desirable or undesirable outcomes (a cognitive approach). These goals have positive and negative valence, respectively. Goal pursuit can result in change (not just homeostasis).

question

Promotion Focus

answer

Driving towards positive outcomes; pursuing ideals or aspirations

question

Prevention Focus

answer

focus on avoiding negative consequences

question

Maslow Hierarchy

answer

Physiological Needs --> Safety Needs --> Social Needs --> Esteem Needs --> Self Actualization Needs

question

Utilitarian Motivations

answer

usually regard functionality

question

Hedonic Motivations

answer

Usually provide emotional satisfaction, desires

question

Motivational Conflict

answer

consumers have multiple needs/goals/values, which leads to conflict

question

Approach-Approach

answer

a conflict between 2 desirable alternatives

question

Approach-Avoidance

answer

a conflict between the desirable and the undesirable aspects of a single item

question

Avoidance-Avoidance

answer

a conflict in that each alternative is predominantly negative

question

Marketing Theory and Strategy

answer

Consumers do not buy products, they buy the motive satisfaction or problem solutions. Managers must discover the motives their product and brands can satisfy and develop their marketing mixes

question

Manifest Motives

answer

1. known to the individual 2. AND are freely admitted

question

Latent Motives

answer

1. Unknown to the individual 2. OR individual reluctant to admit them

question

Measuring Latent Motives

answer

Requires projective techniques or other indirect approaches - association techniques, completion techniques

question

Measuring Manifest Motives

answer

Can be measured by direct questions

question

Is motivation enough?

answer

NO - to promote ACTION, all three of motivation, ability, and opportunity, must be in place

question

Ability to Act

answer

Depends on: - Knowledge/Experience - Intelligence - Education - Age - Money - Cognitive Style (learning style = visual vs verbal)

question

Opportunity

answer

Marketers must give consumers opportunity to engage in behavior. Determined by: - Time - Distractions - Amount of info - Complexity of info - Repetition of info

question

Motivation is enhanced when something is

answer

1. Consistent with needs 2. Risky 3. Moderately inconsistent with our attitudes 3. Personally relevant (involving)

question

Involvement

answer

the level of perceived importance and interest evoked by a stimulus (such as a product) Based on needs, situations, and personality factors BEWARE: marketers tend to over estimate consumer involvement

question

Involvement Examples

answer

high personal relevance from pursuing a particular consumption category

question

Product Involvement

answer

leads to product enthusiasts

question

Shopping Involvement

answer

leads to higher information processing when shopping

question

Emotional Involvement

answer

deep personal interest, invokes strong feelings associated with some object

question

Situational Involvement

answer

temporarily involved in a category, utilitarian, temporarily involved

question

Enduring Involvement

answer

Personally gratifying, hedonic, ongoing interest in a product or behavior

question

Consumer Involvement

answer

a moderating variable that changes the nature of the relationship between other variables

question

Involvement and Segmentation

answer

Strategic Options - concentrate on high or low involvement segment - attempt to build involvement (how!)

question

Emotions

answer

Provide meaning to a product or brand. Psychobehavioral reactions to appraisals Measured by self report and autonomic measures

question

Mood

answer

General valenced affective state. Influences judgements.

question

Autonomic Measures

answer

Automatically records responses based on automatic reactions or brain activity. Can be intrusive, but is good at assessing emotional activity

question

Self Report Measures

answer

Less obtrusive, but requires consumers to recall their affect state from a recent experience.

question

PANAS (self report)

answer

Positive Affect Negative Affect Scale

question

PAD (self report)

answer

Pleasure Arousal Dominance, represents emotional experience

question

Cognitive Appraisal Theory

answer

Thoughts (Appraisals) elicit emotions. Distinct from positive vs. negative

question

Cognitive Appraisals

answer

Anticipation - thoughts of future Agency - thoughts of responsibility Equity - thoughts of fairness Outcomes - thoughts of outcomes relative to goals

question

Flow

answer

Leads to extremely high emotional involvement e.g. Candy Crush

question

Emotional Expressiveness

answer

extent to which a consumer shows outward behavioral signs and otherwise reacts obviously to emotional experiences

question

Emotional Intelligence

answer

Awareness of the emotions experienced in a given situation and the ability to control reactions to these emotions

question

Self Conscious Emotions

answer

Specific emotions that result from some evaluation or reflection of one's behavior

question

Emotional Contagion

answer

Extent to which an emotional display by one person influences the emotional state of a bystander

question

Mood-Congruent Recall

answer

Consumer's mood can be controlled and memories and evaluations can be influenced

question

Emotional effect on memory

answer

Superior recall for information presented with mild affective content compared to similar information presented in an neutral way

question

Emotion/Motivation Takeaway

answer

Advertisers leverage motivation and emotion to involve and engage target customers

Marketing 330 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards