MKTG Chapter 7 p. 175-190 – Flashcards

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-what happens when we buy something for ourselves or for somebody (family unit) -much less rational -cb acronym
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Consumer Behavior (CB)
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-much more logical/rational
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Contrast with business Buyer Behavior
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important to welfare of U.S. economy, purchases drive about 70% of gross domestic product
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Consumer Behavior (CB)
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said to buy stuff after terrorist attacks
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George Bush
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a lot of business purchases (demand) derived for demand for cb purchases
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Derrive Demand
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-consumers demographic characteristics (ethnicity, age, gender, income) -belief & attitude -lifestyle -personality -family life cycle status (person with baby buying more diapers) -consumer's unsatisfied wants, needs, unsolved problems
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Various factors influence CB (Consumer Behavior) decisions
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-belief -attitude characteristics (positive or negative characteristics)
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Demographic characteristics
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-economic -tecnological -political -social class -cultural or neighborhood -school -church environments -hopeful about future
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More factors influence CB (how much you will buy)
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Marketing Mix- develop unique mixes that deliver value uniquely tailored to address wants and needs and resolve problems of people targeted
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One factor Marketers can control
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-strategic tool used to develop and deliver value to targeted marketing segments -influence consumers' beliefs, attitudes, perceptions
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Marketing Mix
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Not battle of products but battle of perceptions in the mind
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Marketing
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-all consumers rational in minds but not in same way: why we need segments -make choice that best fits them
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World of CB simple
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people always think they are rational in decisions made but most people are wrong.
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Few consumers are rational but...
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anything that motivates or encourages anybody to do something or buy something
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incentive
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answer as to why airplane crashes
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Inside of our minds (black box)
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fisherman- study fish that they're able to do a better job of catching them ichthyologists: catch them to understand how better to help them
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fisherman ichtheologists- scientists who study fish
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Both- Study them but do better job of solving their problems then keeping them as customers
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Should marketers study like fisherman or ichthyologists?
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1. what do they buy 2. where 3. how 4. how much 5. when
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Marketers study consumers- 6 questions
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can choose a product or choose to not buy any product. when you choose to do nothing- still made choice
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Choices consumers can make
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Product Choice: choose product Brand choice: choose brand Dealer: where (online in store) Purchase timing: when to buy Purchase amount: how much to buy
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Decisions routinely made by consumers include:
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1. pay attention to or ignore what marketers are saying 2. like or dislike any product, value, or anything that marketers are saying or offering 3. evangelize, or spread the good or bad news, to others about their positive or negative experience with products, brands, or stores
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Consumers have to decide whether to:
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1. Problem Recognition 2. Information Search 3. alternative evaluation 4. choice 5. post-purchase processes
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5 stages consumers pass through en route to making a CB decision to buy something or what to buy?
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firms should be doing different things with their marketing mix as consumers pass through various stages
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reason to understand 5 stages?
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1. based on whether consumer is engaged in routine decision making 2. whether consumer is engaged in intensive decision making
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Broken into 2 broad classifications
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low involvement process, not worried about it, sure there's not risk of social ridicule, not much money involved
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Routine consumer decision making process (stages)
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involved in high involved decision, lots of money involved, not bought often, bad choice- out of luck, cost far more money
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Extensive decision making (consumer)
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1.order most likely to be followed, not fast rule that consumer goes through stages 2. stages unfold in order that they're shown
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Stages stated in order because
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1. Problem Recognition 2. Limited Information Search 3. Limited Alt. Evaluation 4. Choice 5. Limited Post-Purchase Eval
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Routine Consumer Decision
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1. Problem Recognition 2. Extensive Information Search 3. Extensive Alt. Eval 4. Choice 5. Extensive Post- Purchase Eval
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Extensive Consumer Decision
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Wedding dress, home, car, major appliance, jewelry, nice blouse
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Higher Involvement choice
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consumers use products to project or advance various dimensions of self identity
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Issue of personal relevance comes into play because
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realization that a purchasing need (problem) exists
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5 Stages- Consumer Decisions Stage 1: Problem Recognition
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seeking relevant information about products that potentially may satisfy or solve this need (problem)
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Stage 2: Information Search
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assessing alternative product solutions to determine which one appears most likely to do the best job of satisfying the aroused need (unresolved problem)
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Stage 3: Alternative evaluation
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subsequent purchase of one or more products based on the prior evaluation process
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Stage 4: Choice
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cognitive and behavioral responses initiated by consumers as their expectations about the value delivered by the product they selected are exceeded (buyers are delighted), met (buyers are satisfied), or unmet (buyers are disappointed or perhaps apoplectic)
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Stage 5: Post-Purchase processes
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create problem recognition, problem arises anytime we experience want or need that arises for us to become aware of
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Marketers do this-
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transformed into motives, consumers become motivated enough to engage in CB decision making process
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Wants and needs are-
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evolve slowly
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routine wants and needs
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problem recognition can be instantaneous- car breaks down
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extensive decision-making
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-promotes routine decision-making processes usually involves shallow, surface-level thinking -triggered by internal states -can be triggered through external stimuli
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problem or need recognition
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internal states such as thirsty
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Problem recognition can be triggered by
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-problem recognition -desire for problem recognition TODAY
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Marketers stimulate
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-lower personal relevance -lower cost products -more frequent buying -more familiar with product class ; brands -little thought, search or time given to purchase
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Lower involvement-Routine Decision
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-greater personal relevance -more extensive products -less frequent buying -less familiar product class ; brands -extensive thought, search ; time given to purchase
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Higher involvement-Extensive Decision
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-external stimuli -consumers experience FOMA -Facebook can contribute to this
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Consumer needs or problem recognition can be activated through exposure to
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-can contribute to need arousal -out of 18,000, 62% say social media had no influence on their purchasing decisions
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Social Media relating to consumer needs
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-advertising -promotion -personal selling -direct marketing -commentary
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Consumers need recognition can be aroused through exposure to planned marketing activities such as-
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-has apple pay feature -was not ready to buy new iPhone but bc her credit card was recently compromised she decided this offered a useful solution which offers value -her need recognition was triggered by marketing stimulus
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iPhone 6- Marketing Stimuli
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car breaks down for third time, time to get a new car- end of Stage 1 (Problem Rec.)
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Natural Stimuli
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memory scan searching for alt. solutions
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Stage 2- Info Search: Internal search
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among the first to be recalled from memory
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marketers of convenience goods should initiate measures to ensure that their brands are
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brands recalled first are generally more frequently purchased, underscoring the power of, as well as the need for, promotional strategies designed to create this
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top-of-mind brand awareness (TOMA)
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advertising even though fans know- understand their beer must remain "top of mind"
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top 3 beers budweiser, miller, coors remain top beers due to
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not much thought impulsive remain top of mind readily available doesn't take much thought
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low-involvement
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reduces likelihood and degree of external search
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brand loyalty
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brand loyalty
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one of the strongest assets any marketer could ever hope to possess
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-when consumers seek to confirm expectations -done to minimize risk -seek to avoid post-purchase cognitive dissonance (marketers worst enemy)
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Exceptions
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to reduce purchase uncertainty
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Internet valuable to consumers searches
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-particularly important for consumers who lack high level of expertise with product category -more credible bc not trying to "sell"
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non-commercial printed media and personal sources of info.
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the extent to which consumers search for information
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social or environmental pressures influence
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1. When consumers are pressured by time to make decisions, they may curtail their information search efforts, even for high-involvement decisions 2. Physical constraints such as lack of car, limited access to relevant info, or illness may limit consumers ability to engage in information search 3. marketers themselves sometimes try to constrain consumers' search efforts -be done for purposes of pressing for quick-decision-making buy-now -coercive marketing tactics may be aggressive but not ethical
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High-Involvement Search Processes Points
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-limited-time price deals -aggressive personal selling exceptional warranties -liberal return policies -point-of-sale devices -Choose me, now please. -consumers must weigh benefits and costs of continuing versus curtailing their search and buying now in order to receive the incentives and values being offered -free and fair get and give buyer-seller exchange processes
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Marketing activities reduce amount of time and effort expended on information search. They might include-
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-occurs with information search -cognitive decision algebra to aid eval. process -specific cognitive decision algebra employed by consumers for both extensive and routine decisions has been the subject of much research -research always continues bc nearly impossible to answer "why" question
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Stage 3: Alternative Evaluation
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-when consumers choose nothing at all they've still made a decision -any product chosen will always be the one that promises the highest level of expected satisfaction as perceived by the decision maker -continued...
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Stage 4: Choice
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-lower-involvement: consumers may opt for alternatives that are acceptable, but not necessarily the best choice -buyer-seller exchanges involve tradeoffs -actual brand choice may result from inertia; positive consumer responses to various in-store stimuli; a desire to variety seek; or brand familiarity stemming from exposure to promotional activities, such as advertising.
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Stage 4: Choice
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-term that emanates from the physics discipline, infers that an object at rest tends to remain at rest -often the easiest response for consumers who have purchased the same brand in the past -amounts to spurious- or pseudo-brand loyalty -no reason or incentive to switch exists
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Inertia
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-consumers will readily switch brands if marketers create or fail to create the right conditions
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Consumer Inertia not the same as brand loyalty
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-out-of-stock scenarios -point-of-sale promotions -alluring coupons -in-store stimuli
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Can induce brand switching behavior: (relationship between consumer and brand is weak)
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-desire to try something new -get bored with brands -change brands occasionally -cheerios to wheaties -low-risk nature of convenience goods makes type of decision easy
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Variety seeking
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-created by repetitive advertising experienced across time causes consumers to pull brands into baskets -consumers may select brands based on sheer familiarity created by advertising -top-of-mind brand awareness
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Brand familiarity
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-may occur virtually simultaneously for low-involvement products -paid for in a matter of minutes
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Brand choice and purchase
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-purchase may not immediately occur -a consumer may have made a decision to buy a specific brand of notebook but he still confronts decisions about financing, store or site from which to make the purchase, or what options to include before making the purchase
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Higher-involvement decisions
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-tangential to the basic brand decision, may be equally important (and read above)
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Instrumental actions
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-purchase may be delayed or not happen at all due to this -constraints typically beyond control of consumer and can effectively halt the purchase process, or cause the consumer to revisit earlier stages in the decision making process -for example, inability to obtain financing for a home or to obtain insurance for a sports car at reasonable cost may delay or prelude purchase
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External Constraints
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-consumers decide whether they are satisfied -consumers answering yes to one of three questions: have my expectations been met? exceeded? has the product fallen short of my expectations?
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Consumer Decision Stage 5: Post-Purchase Behaviors
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-satisfaction increases likelihood that a repeat purchase will occur -relative profitability associated with retaining existing satisfied customers is substantially higher than are profits associated with acquiring new customers
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Stage 5 continued...
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-each dissatisfied customer will tell 8-10 others about their dissatisfying experiences -translates into lost customers, and makes new customers that much more difficult and expensive to recruit
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Negative word-of-mouth
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-doubt or anxiety following purchases esp. high-risk -consumers question whether best choice was made or even if the purchase should have been made at all -expensive, tends to strongly reflect social group values, is functionally complex, perceptions of risk will be higher and post-purchase doubt is more likely to occur -consumers seek to avoid this -may avoid advertisements for opposite brands
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Post-purchase cognitive dissonance or buyer's remorse
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-consumers reinforce their decisions for the chosen alternative by seeking info about that brand -marketers often develop advertisements directed at recent purchases to reinforce their choice, thereby helping them reduce the likelihood of this -consumers may try to sell brand to others to reinforce their choice
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Reducing Post-Purchase Dissonance
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-psychological -sociocultural -purchase situation conditions -marketing activities
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Four discrete sets of factors that influence consumer decision-making
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-fundamental forces that cause people to act -more basic in nature
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Needs
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-can be viewed as specific satisfiers of the underlying need -ex: you need clothing but want a new pair of 7 for all mankind jeans -wants are learned
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Wants
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-motives or drives
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Aroused Needs are called:
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-schemes exist that can be used to identify the range of needs and motives that impact human behavior -Maslow proposed that people move through a series of motivational states -Consumers try to satisfy their most important needs first before moving onto higher-level needs
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****Maslow's Hierarchy of Needs/Motives
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-Physiological needs for food, warmth, rest, sex once satisfied yield to needs for safety, security -marketers can target and position food, sports drinks, pharmaceutical products, health care and fitness products to consumers who are experiencing these needs -hunger thirst rest -basic physical needs first two levels
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First Level: Basic Needs (Physiological, Safety) p. 187
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-Motives for belongingness and love eventually give way to needs for recognition, prestige, feelings of accomplishment -safety and security needs -safety in cars, home security systems, car seats for children, & insurance are examples of products targeted to these needs
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Second Level: Psychological Needs (Belongingness & Love, Self Esteem)
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-self fulfillment by achieving one's full potential -products directed at satisfying high-level needs include: travel, education, sports, professions, and hobbies -LA fit ads emphasize self-esteem, belongingness, and working together to achieve fitness goals are directed at higher-level needs -US Army's recruiting advertisements emphasize "Be all you can be." -UNT: promotes "Green Light to Greatness"
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Third Level: (Top) Self Fulfillment (Self Actualization)
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-products such as clothing, jewelry, dating services, entertainment, and personal grooming items
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Belongingness and Love needs targeted through
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-clothing, jewelry, automobiles, homes, furniture, alcoholic beverages, and fitness programs
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Products intended to fill needs for self-esteem, prestige, and/or feelings of accomplishment
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-some needs temporarily satisfied and then go wanting -rarely-fully satisfied, yawning-empty-holes, constantly yearning to be filled up as creatures
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Remember who we are as consumers:
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-investigates consumers' reasons for engaging in consumption-related behaviors and for making the decisions they make. -presumes that underlying or unconscious motives exist and influence consumer behavior -designed to get at the "hidden" motives -to reveal the inside skinny of the Why question
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Motivation Research
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-observation, focus groups, depth interviews
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Major tools of motivational research:
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-most useful, but most expensive and time consuming -this technique is long used by anthropologists (called ethnographic research) to investigate behavioral patterns driven by cultural differences, can uncover hidden human motives -this tool is equally useful for gaining insights into consumer motivations through direct personal observation or via recorded video
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Direct Observation of Human Behavior
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-perception involves process by which consumers select, organize and interpret (attempt to make sense of info) -affected by gender, ethnicity -our perceptions can be influenced by marketers -they can shape what we believe to be true
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Consumer Perception
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-to create a meaningful, useful picture of what is happening around them -Info is acquired through our five senses
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Goal of Consumer Perception
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-they consciously or unconsciously attempt to organize and attach meaning to that info.
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As consumers actively or passively acquire info...
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-exercise substancial influence on these sense or meaning-making activities
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Our cultural heritage ; social class status
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our heads explode like the Martians did in Mars Attacks when they heard Slim Whitman yodel. Humans are exposed daily to too many stimuli to process them all.
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Consumer perceptions are always selective in nature. The alternative is having-
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1. Selective Exposure 2. Selective Attention 3. Selective Interpretation 4. Selective Retention
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The vast majority of information to which consumers are exposed is selectively filtered out and discarded. These perceptual filters include:
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-occurs when consumers are exposed to some forms of information but not others -marketers attempt to overcome selective exposure by ensuring that communications are placed in media most likely to be viewed by target customers -common mistake made by many marketers targeting "Millennials" is placing their communications in traditional advertising media such as TV when these consumers acquire most information via social media and other internet sources -Fox discusses same political events daily and do so through different perspectives -exposing one self to only one network enables you to only get one side of the story (selectively expose one self) -important concept of marketers when they're targeting messages
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1. Selective Exposure
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-occurs when consumers, once exposed to information, pay attention to only part of that information -marketers attempt to gain attention by employing entertaining communications in advertising and by using physical stimuli that tend to stand out -Marketers struggle continuously to get our attention
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2. Selective Attention
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-we are prone to interpreting information that we already believe *-occurs when consumers construe information in ways to allow it to fit with existing beliefs and attitudes -marketers struggling to fight through clutter and noise in our minds -consumers misunderstand or misperceive a large proportion of the info to which they are exposed. -avg. of 30% of commercial information is misinterpreted by consumers -marketers strive to ensure that their marketing communications are interpreted as intended
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3. Selective Interpretation
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-the intended message is understood in the manner the sender intended it to be understood
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Communication never actually occurs unless...
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-more than one third of Americans would not purchase a brand due to exposure to offensive or distasteful advertising
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Media/Harris Poll suggested:
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-don't remember all of the information we are exposed to -means that only a portion of the info. that makes it through the other perceptual filters is retained in memory -essentially selective memory -Consumers tend to retain info longer that is more important to them or that scares them. continued...
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4. Selective Retention
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-forces us to pay attention
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Fear is a powerful motivator
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-sticky is usually a good thing -often affects our daily existence and is regularly accessed in memory -resulting memory is strong ; long-lived
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Information that is easily recalled or long-remembered has recently come to be known as "sticky"/more contagious
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-the stronger the reward, the more likely the info will be retained -you buy excedrin and it effectively relieves severe headaches, a strong reward therefore you will remember it
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*Consumers tend to remember info that is reinforced over time
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-the probability that information will be retained -exposed to info at least 3 times to remember it
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*Repetition simply repeating messages increases...
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-does the choice we make reduce our pain? or increase our pleasure? -pursuit of pleasure- reward -avoidance of pain- reward
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If info associated with some type of reward, comes down to this:
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-consumer learning affects consumer decision making -when child touches stove ; gets burned she learns not to touch the stove, or when she gets disciplined -any change in your beliefs, attitudes, behavior resulting from personal experience, mental interpretations, or representations of these experiences or through observing experiences of other individuals -10-12 years ago when the first cool guy with tats was surrounded by cool girls, other guys thought they should get tattoos too to fit in-learning had a curve
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Learning p. 191
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-the distinction between the two situations is important -in high involvement, consumers are motivated to learn and pay attention -magazine or tv may describe product they want, high- pay attention -low- when consumers exhibit little interest- hard to pay attention, have to do and say it over and over -most consumer situations not high involvement
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high-involvement learning low-involvement learning
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-Ian Pavlov and his dogs -natural stimulus- food creates natural response- unconditioned stimulus a naturally conditioned response elicited (naturally occurring salivation) associates bell ringing with food. -later on bell rung/metronome (conditioned stimulus and no food but he still drools -we can be learned of classical conditioning by evil marketers
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Learning Method: Classical Conditioning
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-repetition -contiguity
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Stimulating Learning Keys
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-positioned at women, didn't take off -then repositioned it & associated it with great outdoors and cowboy and every man wanted to be a cowboy at some point -cowboy image was an unconditioned stimulus -over a few years it was the dominant cigarette brand until 2000s
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Marlboro
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-because it works -if they do not work it isn't used -when strategies are proved they're used
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Why use classical conditioning?
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-unconditioned response
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Given any pleasant consumption situation, basis exists for classical conditioning to occur. The pleasant situation is the unconditioned stimulus and its ability to produce positive emotions is the
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marketer wins
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top of mind awareness evoked set game set match
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some promotional slogans that are heard so many times, they get stuck in our minds -repetition is friend for marketers
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five dollar foot long have it your way
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-explains how most consumer learning occurs for low involvement products
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passive learning p.193
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repetition link between brand name- subway- bags fly free
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key element
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-rats & pigins & us- we can learn to push certain buttons in order to obtain certain rewards or we can learn to avoid pushing a certain button bc we will get shocked- pain -avoid doing things that generate pain
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pigins and rats associated with operant conditioning-based learning
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-definition of idiocy is doing the same things over and over and somehow expecting different results
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Einstein
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-involves consumers using product, otherwise rewards cannot occur
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Operant & Instrumental Conditioning
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p.195
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Most marketing promotions are designed to stimulate trial and repeat trial and use of the product
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-tattoo story -man buns -occurs when we observe the results and pay attention to what's happening to other people and we adjust our behaviors based on what happened to them -in social media, we do a lot of vicarious learning
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Vicarious Learning
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-get products out there to people and have them use it
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Pathway to success
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p.196
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Most vicarious learning occurs in high-involvement situations
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the most complex form of learning basis by which we gather and evaluate info that is employed in making extended or complex decisions
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Reasoning
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beliefs- easy for marketers to change, thoughts we have less deeply held than attitudes, formed as consumers accumulate knowledge about product attitudes- are not easy for marketers to change, deeply held
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Consumer beliefs ; attitudes
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Key take away: marketers should align the specific product/value that they create, promote, price, and distribute such that their value propositions align with the preexisting consumer attitudes that dominate within targeted consumer segments
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Marketers should routinely attempt to change consumers attitudes is generally troubling
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-pro-life -pro-choice is democrat (woman's rights) and republicans won't budge on that -Republican Marketers should target consumers in the middle who don't yet fully possess fully formed attitudes about where a mother's rights end and a child's rights begin
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True republican- Political Party- in each political market segment
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-bundle of psychological characteristics that makes you respond in the same way to same stimuli in situations -leads consumers to respond in consistent ways to events and stimuli as each arise in a given consumer's environment
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Consumer Personality
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-brands do develop personalities over time -consumers already have personalities -likely to buy brand that will strengthen their personality -harley davidson has powerful personality brand (over weight, balding, want to ride up to sanger with leather on and terrify citizens)
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One path to success
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-personality is related to self-concept -self-concept is a multi-dimensional construct that captures how consumers feel about and see themselves -self-concept reflects consumers' personal identity
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Self-Concept
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ideal-private-self: how consumers would prefer to see themselves ideal-social-self: captures how consumers would like others to see them
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most important dimensions from marketing perspective are consumers': ideal-private-self ideal-social-self
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-change things about them to belong or fit in -marketers know we all want to love or be loved
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Consumers will
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establish brand images that align with important dimensions of consumers ideal self-concepts
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Marketers strive to
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-if you use consume, drive product it will get you closer to yourself
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Marketers know that-
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-capture our activites -capture our interests, -capture our opinions If marketer knows your preferred activities and all these things, ensure they deliver the right messages in the right way to turn you on or away -lifestyles and demographics- 2 most important demographic devices
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Consumer Lifestyles- AIO- important acromym p.198
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-something that we can't separate ourselves from -how it affects behaviors -look at it as if it were a set of lenses, view world and perceive world through these lenses -gaining understanding -set of values, beliefs, norms, symbols, and customs that we share with and learn from other members of our culture -membership of same culture leads to common behavioral acts -all americans share a common set of values -believe in equality, freedom, we are driven as americans -believe in pursuing success
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Culture
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products and will respond similarly to the same marketing message (guns)
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People with similar cultural values often prefer the same kinds of
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-leading edges of trends and movements unfolding inside any culture at a point in time
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What's important in culture?
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-nation of nations (diff. values, norms, expectations -subcultures
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U.S.
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-share values in common -subcultures can exist inside subcultures
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Subcultures
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-not homogeneous -exist as ready made subcultures and ready-made market segments -rapidly growing subcultural groups
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African, Asain ; Hispanic Americans
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homogeneous
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Market Segments
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1. Upper-upper 2.Lower-upper 3. Upper-middle 4. Middle Class 5. Working Class 6. Upper-lower 7. Lower-lower
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Social Class- 7 ordered divisions of social classes that exist in U.S. p. 202
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Consumer preferences, and their decision-making for certain product categories including clothing, home furnishings, cars, neighborhoods, activities or entertainment choices highly correlated with social class membership
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Why we study social class- Important to Marketers
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function of income, education, occupation and accumulated wealth but would never be determined by a single factor
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Social Class membership determined by multiple factors:
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-different social classes due to education but may address similar issues
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Plumbers and Physicians may make similar income
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-for us to be or remain on top, not enough for us to have finer things, we want to have things that are better than everyone else- drives economy
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Positional good- striving socially
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She wants mate with best tail
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Peacock
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-single most important buying center in the entire U.S. economy -traditional, non-traditional families -fewer than 50% of adults aged 25 and higher were not married
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Family Unit
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-group of two or more individuals whose beliefs, attitudes, values, norms of behavior, or symbols are used by another person or persons as guides to behavior
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Reference groups
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1. primary reference groups- family, significant others 2. secondary membership groups- club we belong to 3. aspirational membership groups- less likely that you'd ever belong to that group (college star basketball player) 4.dissociaive reference groups- which you do not want to be like or be a part of
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Types of Reference Groups:
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