Marketing 4220 – Flashcards

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Consumer Behavior
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The behavior that consumers display in searching for, evaluating, purchasing, using and disposing of products and services that they expect will satisfy their needs.
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Production Concept - Assumption
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Consumers are interested primarily in product availability at low prices
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Production Concept - Marketing Objectives
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Cheap, efficient production Intensive distribution Market Expansion
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Product Concept - Assumption
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Consumers will buy the product that offers them: Highest quality Best features Best performance
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Product Concept - Marketing Objectives
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Quality Improvement Addition of Features Tendency toward Marketing Myopia
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Selling Concept - Assumption
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Consumers are unlikely to buy a product unless they are aggressively persuaded to do so
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Selling Concept - Marketing Objectives
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Sell, Sell, Sell -Lacks concern of consumer needs/satisfaction
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Marketing Concept - Assumption
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A company must determine the needs and wants of specific target markets Deliver the desired satisfactions better than the competition
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Marketing Concept - Marketing Objectives
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Make what you can sell, Focus on buyers' needs
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Need-Definition
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A discomforting human condition
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Want - Definition
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A desire for a specific product or object
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Motivation - Definition
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Human drive to attain a goal object
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The Motivational Process
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Desired State Actual state -> Tension -> Drive -> Goal Object
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Biogenic Needs
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Primary needs or motives (innate)
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Psychogenic Needs
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Learned, psychological, secondary needs (acquired)
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Utilitarian Needs
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Need for some functional or practical benefit...something that helps achieve a goal. Solves a problem
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Hedonic Needs
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An experiential need, appealing to the senses, involving emotional responses Feelings
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Maslow's Hierarchy of Needs
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Self-Actualization Ego Needs Social Needs Safety and Security Needs Physiological Needs
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Critique of Maslow's Model
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Lower level needs can become active while pursuing higher level needs A need does not have to be satisfied fully before a higher level need arises
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Consumer Involvement
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The degree of interest a consumer finds in an object/product or activity
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Types of Involvement
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-Enduring Involvement -Deep Involvement -Situational Involvement -Purchase Decision Involvement
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Enduring Involvement
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Degree of involvement in an object on an ongoing basis -Fashion, video games, etc
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Deep Involvement
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Extreme interest in an object on an ongoing basis, borderline obsession
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Situational Involvement
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Degree of involvement in a specific situation or specific occation
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Purchase Decision Involvement
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Degree of concern you experience in making a choice
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MOA Model of Action
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Motivation, Ability, Opportunity Motivation - drive to achieve the goal Ability - To undertake the task to achieve the goal Opportunity - To engage in behavior to achieve the goal
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Values
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Enduring beliefs that guide life Help us see one way of life is better than another
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Terminal Value
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Desired end-states of existence or the ultimate goals of life -Comfortable life, an exciting life, accomplishment
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Instrumental Value
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Modes of behavior, the means, the paths that will help in achieving the desired end-states or terminal values -How will you get to your end-states? --Honest, courageous, broad-minded
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The Means-End Chain Model
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-Explains how a product facilitiates achievement of desired end states -Connects the Means (Products) to Ends (Values)
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Common Representation of Means-End Chain Model
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Attributes --Concrete --Abstract Consequences --Functional --Psychosocial Values --Instrumental --Terminal
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Product Attributes
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Characteristics of the product -Concrete - tangible, physical characteristics -Abstract - subjective intangible characteristics
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Product Benefits
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Functional Benefits - Tangible outcomes of using a product that consumers experience directly, what the product offers Psychosocial - Psychological and social outcomes of product use...how product makes you feel
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Identifying Consumers' Means-End Chain Model
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Measured by one-on-one personal interviews -Involves 2 steps ---Identify/elicit the product attriutes most important to each consumer ---Laddering-interview (asking a series of whys) - Find consumer links of product attributes to consequences and values
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Means-End Chain Model - Marketing Implications
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Identify the basic ends consumersseek when they buy and use certain products and brands Gives insight into consumers' deeper purchase motivations Identify the consumer-product relationship
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Self-Concept
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The totality of the individual's thoughts and feelings having reference to himself/herself as an object Includes: values, personality traits, competence and success, social roles, body
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How is self concept developed?
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Through background, experience and interaction with others
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Actual Self Concept
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How you actually see yourself
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Ideal Self Concept
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What you are not and what you would like to be
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Private Self Concept
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How would others describe you?
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Marketing Implication
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People's attempts to obtain their ideal self-concept People attempt to maintain their actual self-concept
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Image Congruity Theory
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We like to associate ourselves with objects that have an image of ourselves
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Relationship between Self Concept and Brand Image Influence
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Behavior - seek products and brands that imrpove/maintain self-concept Satisfaction - purchase contributes to desired self-concept
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Multiple Selves
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A single consumer will act differently in different situations or with different people -Marketers can target products to a particular self Supports the idea of segmentation by usage situations/occasions
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Body Self-Image
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Refers to the subjective evaluation of physical self
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The Extended Self
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We are what we possess Comprises all external entities and objects that we consider as part of ourselves --Work organizations, family, social networks, our possessions, etc
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How possessions becomes one's extended self
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By self-concept congruence based choice By resource investment in acquisition By bonding through use By memories
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Why study consumers' age?
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Consumer behavior differs sharply across different age groups Age is a factor that changes with passage of time
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What is age distribution affected by?
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Birth rate, life expectancy and migration.
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Baby Boomers - Demographics
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-Educated...narrow gender gap -$75-200K -High employment rate -60% married couples -25% single-parent households, mostly female headed -Older baby boomers=empty nesters
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Baby Boomers - Psychographics
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Optimistic, confident Preoccupied with career and material success Driven by needs of children and parents (sandwich generation_ Desire to defy age, obsession with youthful looks
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Baby Boomers - Consumption
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Convenient, time saving products --Single parents, managing parents and kids Defying age by: --Exercising --Dieting --Nutrients --Cosmetics --Surgical/medical procedures
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Gen X - Demographics
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Highly educated Greater % self-employed 63% households are families
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Gen X - Psychographics
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Financially less secure than BB Cynicism toward boomers Aspire to raise children in two-parent families, dual careers less important Men involved in child rearing Technology savvy
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Gen X - Consumption
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Cars, appliances, home furnishing, children's products, indoor games
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Gen Y - Demographics
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Students/employed in workforce Half of those unmarried live with parents
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Gen Y - Psychographics
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Strong sense of independence and autonomy Assertive, self-reliant, emotionally and intellectually expressive, innovative and curious Big on social issues Unlikely to repsond to marketing "hype" Most tech savvy of all generations
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Gen Y - Consumption
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Major market for automobiles Music and fashion centric Spend more on apparel Appreciate humor w/ element of truth Appreciate customization Brand names=important
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From what three sources do gender differences in consumer behavior arise?
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Biology Motivation and psychology Socialization and cultural norms
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Gender Role Identity
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How society thinks of a person simply by virtue of that person's gender
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Two Components of Gender Role Identity
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Work and career --Traditional sex role attitude --Egalitarian sex role attitude Personality and behavior --men=masculine --women=feminine
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Perception - Definition
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Process by which humans become aware of and interpret a stimulus Process by which we see the world around us and make sense of it
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Importance of Perception to the marketer
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Consumers make decisions based on what they perceive rather than on objective reality
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Absolute Threshold
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The lowest level at which an individual can experience a sensation
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Just Noticeable Difference
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Minimal difference that can be detected between two similar stimuli
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Weber's Law
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The j.n.d. between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus. The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different
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Marketing Applications of JND
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Marketers need to deterine the relevant j.n.d. for their products... -so negative changes are not readily discernible to the public -so that product improvements are very apparent to consumers
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Perceptual Selection
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Consumers subcounsciously are selective as to what they perceive
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How do consumers selectively perceive info?
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By selective exposure By selective attention
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Selective Exposure - Definition
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Consumers seek out messages which -are pleasant -reassure them of good decision making
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Selective Exposure - Marketing Implications (How to increase product/message exposure?)
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Position of an ad within a medium Product distribution Shelf Placement Time spent at store
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Selective Attention - Definition
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Consumers show heightened awareness when stimuli meet their needs
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Selective Attention - Marketing Implications (How do marketers try to attract consumers' attention?)
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Need-based - make stimuli personally relevant Stimuli-based - make stimuli --pleasant --surprising --easier to process
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Gestalt Psychology
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Gestalt Perception means a general, overall impression is made in the mind
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Figure and Ground Principle
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Figure - prominent and focal Ground - Indefinite, hazy, continuous (background) Principle - When we look at something, we're able to separate it into figure and ground
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Grouping Principle
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Individuals tend to group stimuli to form a unified picture
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Closure Principle
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Consumers have a need to organize info so that they form a complete picture
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How close a person's interpretation is to reality depends on...
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Clarity of the stimulus Past experiences Motives and interests at the time of perception
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Stages of Perception
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Sensation Selection Organization Interpretation
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Perceptual Distorition
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Physical Appearances Stereotypes Halo Effect
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Physical Appearances
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Positive attributes of peopl ehtey know to those who resemeble them Attractive modles are more persuasive for some products
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When to use real people v. using models
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Real - problem solving products Attractive models - enhancement products
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Stereotypes
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People carry pictures in their mind of the meanings of various kinds of stimuli Stereotypes influence how stimul are perceived
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Halo Effect
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A phenomenon that occurs when people react to other, similar stimuli in much the same way they responded to the original stimuls (helps Adidas break into new product categories)
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Perception - Marketing Implications
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Psychology of Price Perceptions Country of Origin Brand Image and Brand Extension Positioning
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Psychology of Price Perceptions
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Reference price - what consumers expect to pay Price as quality que
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Country of Origin
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The bias in consumer perceptions of products and services due to the country in which these are made
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Brand Image and Brand Extension (Assimilation vs. Contrast Effect)
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-Accept what falls within the zones of acceptance and reject what falls outside the zone of acceptance
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Ways of Positioning
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By: Functional benefits Symbolic image Competition Category
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Memory - Definition
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Memory is the process of acquiring information and storing it over time in order to use this knowledge when needed
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What happens in Short Term Store?
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Encoding
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What happens in Long Term Store
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Storage and Retrieval
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Types of Decision Making and Memory
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Stimulus-based choice Memory-based choice Mixed choice
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How can things be remembered?
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Transferring infor from STM to LTm
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Storage
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Deliberately attending to info -Rehearsal Elaborative rehearsal Spacing Effects
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Rehearsal
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Repeated recitation of the item/stimulus
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Elaborative rehearsal
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Process of thinking about the meaning of the stimulus and relating it to stored info
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Spacing Effects
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Greater recall for distributed learning -Distributed Practice - learning sessions are spaced over time -Massed Practice - When sessions are crammed together
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Associative Networks
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Organiztion of memory as Nodes and Links Weak links and strong links
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What affects retrieval?
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Trace strength or strength of links or associations Spreading activation (Downstream elements will also get activated)
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Categorization
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Using prior knowledge to label and classify something new
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Types of categorization
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Taxonomic -Orderly classification of objects with similar objects in the same category (soft drinks) Goal-derived Categories -Contain things that consumers view serve the same goal (diet products)
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Role of Categorization in Marketing
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Influences consumers' -Inferences about the brand -Evaluation of the brand -Consideration set and choice -Satisfaction levels
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Learning - Definition
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The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior
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What must marketers teach consumers?
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Where to buy, how to use, how to maintain, how to dispose of products What the brand related info is, the desired brand association
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Behavioral Learning
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Learning involves the formation of associations between specific actions and specific stimuli in the environment
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Cognitive Learning
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Learning takes place in the mind, not in behavior Learniing based on mental info processing Often in response to problem solving
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Behavioral Learning theories
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Classical Conditioning - Pavlov's dog Instrumental Conditioning - producing positive outcomes/avoiding negative outcomes
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Negative reinforcement
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Insurance ads
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Types of Cognitive Learning
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Low involvement High involvement
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Low involvement learning
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Learn only very few features of the product, such as brand name, price, key benefit Low risk, low-priced items used routinely
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High involvement learning
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Learn as much as you can about product For high priced/high risk products or products for which you have enduring involvement
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Principle of Graded Structure
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Category members are graded on how well they represent the category. PROTOTYPE is the best representative of a category
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Stimulus Generalization Effect
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Having the same response to a slightly different stimuli Useful in product extensions Helps store brands succeed
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