Reflects the totality of consumers' decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, and idea by (human) decision-making units over time
Ways of obtaining products and services such as buying, leasing, trading, borrowing
how consumers get rid of an offering they previously acquired
Primary Data vs. Secondary Data
Primary- data collected for its own purpose Secondary- data collected by an entity for one purpose and subsequently used by another entity for a different purpose
a written instrument that
asks consumers to respond to a predetermined set of research questions
Can be used to gauge media usage and product purchase
group of 6 to 12 consumers to discuss an issue or and offering. Led by a trained moderator, the people in the group express their opinions about a given product or topic. Can be used when identifying and testing new product ideas
Like focus groups, interviews involve direct contact with consumers. Interviews are often more appropriate than focus groups when the topic is sensitive, embarrassing, confidential, or emotionally charged.
Consumers tell researchers stories about their experiences with a product.
Can provide insights in their behavior including product purchasing and media usage.
Researchers randomly assign consumers to received different "treatments" and then observe the effect of these treatment. The treatment would be considered the independent variable. Reaction would be the dependent variable.
Conducted in the "real world" One type is MARKET TEST- reveals whether an offering is likely to sell in a given market and which marketing mix elements most effectively enhance sales.
Used to determine the relative importance and appeal of different levels of an offering's attributes. 1.Res. s identify the attributes of the offering2.They determine the levels to be tested for each attribute -such as large or small size3.ask cons. to react
Researchers observe and perhaps videotape how consumers behave in real world surroundings. In contrast to focus groups and interviews, it does not involve interaction between researchers and consumers, only OBSERVATION.
Motivation, Ability, Opportunity
inner state of arousal with aroused energy directed to achieving a goal. The motivated consumer is energized, ready, and willing to engage in a goal related activity
the extent to which consumers have the necessary resources to make the outcome happen. If our ability to process information is high, we may engage in active decision making.
Even when motivation and ability are high, someone may not take action because of lack of time, distractions, and other factors that impede the ability to act.
beliefs that guide what people regard as important or good.
A particular end state or outcome that a person would like to achieve
an internal state if tension caused by disequilibrium from an ideal or desired state.
externally directed and relate to other individuals. Fulfilling these needs thus requires the presence or actions of other people. Example: the need for status drives our desire to have other hold us in high regard
achievement is not based on other people. Example : sleep, novelty, control , uniqueness
motivate the search for that solve consumption-related problems. Example you may buy a car with side airbags because it appeals to your safety needs (a functional, non social need)
affect how we perceive ourselves and how we are perceived by others. They are connected with our sense of self
Include needs for sensory stimulation, cognitive stimulation, and novelty (nonsocial) and reinforcement, sex, and play (social) They reflect our inherent desires for sensory pleasure.
Performance- uncertainty about whether the product or service will perform as expected Financial- is higher if an offering is expensive Physical (safety) potential harm it might pose to one's safety Social harm social standing Psychological fits the way they perceive themselves Time invested into getting product
reflects the process by which the consumer comes into physical contact with a stimulus (during radio or tv commercial break exposure is greatest at the beginning or end/ in store - end of aisle or placed at waist to eye level
is the process by which we devote mental activity to a stimulus
Reflects the knowledge reflects the set of things we have learned in the past and may consist of many facts i.e. random facts such as: car's oil needs to be changed every 5,000 miles and that bananas have 100 calories ** schemas and scripts
Knowledge content vs. Knowledge Knowledge structure
Although schemas and scripts reflect the content of what we know, our lives would be utter chaos if we did not have some way of organizing or structuring our knowledge
- Objects are organized into different taxonomic categories. When objects are in the same category, what do we expect of them?
Things that are in the same taxonomic category share similar features they share are different from the features of objects in other categories. (put taxonomical chart on cheat sheet)
set of associations linked to a concept i.e. A schema for the concept banana has many associations such as yellow, slippery, easily bruised. A schema is elaborated when we have many associations linked to the concept.
An inference commonly made from advertising. The statement "nobody gives you more" could be technically true if all brands offered equal performance benefits. Nobody gives you more what? Another example "This brand is the best"
An inference commonly made from advertising. When brands make comparisons with multiple brands
Ads sometimes provide a comparison but leave the object or basis of comparison either incomplete or ambiguous which can lead to incorrect inferences. i.e. an ad saying it is less expensive...well what is more expensive?...it may be less but more than others.
an overall evaluation that expresses how much we like or dislike and object, issue, person, or action
1. cognitive function: guide our thoughts 2. affective function: influence our feelings 3. connative function: affect our behavior
What are the three different types of cognitive responses?
Counterarguments (CAs) Support arguments (SAs) Source derogations (SDs)
are thoughts that express disagreement with the message "this produce will never work" or "this product will not cure my problem"
are thoughts that express agreement with the message "this sounds great" or "i really need a product like this"
Support derogations (SDs)
are thoughts that discount or attack the source of the message "the guy is lying" or "the guy in the ad was paid to say this"
containing both positive and negative information about an offering i.e. medicine ad; it tastes awful but it works
only presenting positive information
indirect comparison messages
the offering is compared with unnamed competitors such as "other leading brands" or "brand x"
advertisers explicitly name and attack competitor or set of competitors on the basis of an attribute or benefit.
Theory of Reasoned Action- provides an expanded picture of how, when, and why attitudes predict consumer behavior. (put chart on cheat sheet)
group of items that is processed as a unit (i.e. 1800-flowers) Most individuals can process in short term memory at any one
time is three to four chunks.
Used because it enhances memory
represent objects or concepts
strong semantic links between concepts (or nodes)
The process of remembering
retrieval cues-stimulus that facilitates a node's activities in memory
The ability to store sensory
experiences temporarily as they are produced
echoic memory: memory of things we hear iconic memory: sensory memory of things we see
the portion of memory where we encode or interpret incoming information in light of existing knowledge.
where information is permanently stored for later use
autobiographical: (or episodic) represents knowledge we have about ourselves and our
past(mainly involving images)
semantic: knowledge about the world that is detached from specific episodes
the process of determining whether a stimulus has or has not been encountered before
the ability to retrieve the information from memory
information can also be transferred to long term-memory through this process. Unlike rehearsal we make no active attempt to remember the information
actively and consciously interact with the material we are trying to remember
gatekeepers- collects and controls info important to the decision influencer-try to express their opinions and influence the decision decider- determines which product or service will be chosen buyer- physically acquires product user-consumes product
Middle class looks for guidance from
the upper class especially clothing, dining etiquette
Is does more money mean higher social standing?
Income is not strongly related to social class
Parody Display vs. Status Symbol
Status symbol: goods or services that indicate their owners' place in the social hierarchy Parody display: status symbols that move in a reverse direction i.e. lobster used to be lower class and now is seen has an upper class dish
What are the different ways social class can affect consumption?
- (a) conspicuous consumption, (b) acquisition of status symbols, (c) compensatory consumption, and (d) the meaning of money.
is an attempt to offset deficiencies or a lack of esteem by devoting attention to consumption. Conspicuously consumed items are important to their owner because of what they tell others. CONSPICUOUS WASTE- buying houses or i.e. pianos you never use
acquisition of status symbols
consumers may acquire items that reflect not only their current social class but also their class aspirations. i.e. buying the lowest-priced mercedes or buying a house in a respectable community so that others will judge them in a positive manner
an attempt to offset deficiencies or a lack of esteem by devoting attention to consumption. A consumer who is experiencing difficulties, in terms of status level, may compensate purchasing status symbols to restore self esteem
fulfills a very functional or utilitarian purpose, enabling people to acquire items needed for everyday living.
What is a reference group and what are the different types?
A Reference group is a set of people with whom individuals compare themselves as a guide to developing their own attitudes, knowledge, and/ or behaviors
Three types: aspirational, associative, dissociative
Aspirational Reference Groups
groups we admire and wish to be like but are currently not a member of
i.e. using celebrities to represent products
Associative Reference Groups
groups to which we actually belong, i.e. a clique of friends, an extended family, etc. Also gender, ethnic, geographic, and age groups. Some
groups from around a brand i.e. Harley community
appropriately represent group i.e. hairstyles, accessories,etc
Dissociative Reference Groups
groups whose attitudes, values, and behaviors we disapprove of and do not wish to emulate. i.e. gangsta rap groups that promote violence
social
pressure designed to encourage conformity to the expectations of others
Normative influence is high when buying a product that is a luxury and that will be seen in public i.e. digital camera, jewelry, etc.
- Why do marketers target opinion leaders and market mavens?
They are knowledgeable and credible sources
Characteristics of Special Possessions
1. Consumers will not sell them at market value 2. They have few or no substitutes 3. They are not always used for their original purpose 4. Consumers frequently personify special possessions i.e. naming their car
Cultural Principles v. Cultural Categories
Cultural Categories: TIME(work&leisure time)SPACE(home,office,safe&unsafe places)OCCASIONS(festive/somber events) Cultural Principles: ideas/values that specify how aspects of our culture are organized&how they should be perceived/evaluated
How do cultural principles & cultural categories differ
Cultural principles give meaning to category related products which is why the clothing we associate with work time is also more structured, organized, and precise than the clothing we associate with leisure time
Is a symbolic function that expresses our membership in a group and serves as a symbol of personal connections to significant people, events. or experiences in our lives. i.e. you may like a certain hat because it was a gift from a close friend
Is a symbolic function that reflects how unique we are, not how me relate to other people. i.e. we express our unique personalities through clothing, home decoration, music, art, etc.
proposes that we evaluate brands in terms of their consistency with our individual identities. According to this theory, our self-concept can be decomposed into many separate identities which are called actual identity schemas (i.e.daughter, student, etc)
What are the 4 types of deception
False objective claim Puffery Missing information Allowing Incorrect Inferences to Be Made
False advertising i.e. When Listerene advertised that it killed germs that causes cold.
False or unsubstantiated claims that fall outside the realm of regulation (exaggeration) "the world's best" -- this cannot be proven
Missing Information-More likely to happen when MAO is low
Even when everything stated in the ad is true, consumers can be left with a false impression because information has been left out, or qualifications have been presented in an inconspicuous place where consumers may not see them
Allowing Incorrect Inferences to Be Made
Everything in the ad can be accurate but may still be deceptive if consumers develop an incorrect inference from it. This situation occurs when consumers infer unrealistically high levels of attribute performance.
The set of activities of government, business, independent organization, and concerned consumers that are designed to protect the rights of consumers. The key focus is on consumer rights.
What are consumer rights?
1. Right to safety 2. Right to be informed 3. Right to choose 4. Right to be heard 5. Right to consumer education 6. Right to recourse and redress (right to fair settlement of problems encountered) 7.Right to an environment that enhances the quality of life
satisfied customers are more likely to:
- pay higher prices
- make repeat purchases
- be brand loyal
- tell others
- it costs much more to acquire a new customer, than it does to keep an existing customer
satisfaction is linked to:
loyalty and repetitive buying
feeling that results when consumers make a positive evaluation or feel happy with their decision.
What drives satisfaction:
1. The Disconfirmation Paradigm 2. Equity Theory 3. Attribution Theory
Can we predict satisfaction?
Post-decision Dissonance:
feeling of anxiety concerning whether the correct decision was made
find reasons to justify choices
downsize choices of the other
Feeling that one should have decided the other option (Buying the wrong car for example)
Disconfirmation Paradigm:
Feelings, Performance, Expectations
_____ can also affect satisfaction/dissatisfaction
- focuses on the nature of exchanges b/n entities and their perceptions of these exchanges
- compare inputs and outputs for consumers and firms
For equity to occur, the buyer must perceive
fairness in the exchange
- perception that their inputs are equal to their outputs
- inputs: info search, anxiety, money, decision making effort
- outputs: satisfactory car that does what you expect
- equity: fair exchange= desirable car at the right place
individuals take credit for successes and deny responsibility for failures.
- results: consumers almost always blame firm when things go wrong
Fundamental Attribution Error:
People tend to attribute another person's negative behavior to his/her disposition (stable personality)
Actor Observer Asymmetry:
- People tend to attribute to the cause of their own negative behavior to the situation
- Observers tend to attribute the cause of another person's negative behavior to their stable disposition
- Explains how individuals find explanations for events.
- when product does not fulfill needs, consumers will attempt to explain why
- Stability
- Locus of Causality
- Controllability
Summary of satisfaction driver:
- satisfaction is about performance and disconfirmation
- for certain people though, satisfaction is more about equity
- attributions influence disconfirmation paradigm and equity theory
- DP and ET can occur simultaneously, complementing one another
- positive disconfirmation: performance>expectations
- make repeat purchases
- increase profitability
- have had their expectations met
- stop purchasing
- spread negative WOM
- average dissatisfied customer tells 9 or 10 people
- if complaint is resolved effectively, 95% of dissatisfied customers will do business again.
2/3 of customers defect they feel like the company doesn't care about them.
- remember customers b/n sales
- build trusting relationship
- monitor delivery and satisfaction
- be there when needed
- always go the extra mile listen!
- Variations among consumers according to specific traits that influence patterns of behavior.
- measure stable traits and temporarily elevated states.
extent to which people engage in and enjoy effortful cognitive activities
our capacity to reason, plan, save problems, think abstractly, and learn.
our belief in our ability to succeed in specific situations.
internals believe things are under their control, externals believe its fate or luck.
Important individual differences:
1. Self-Monitoring 2. Machiavellianism 3. Regulatory focus 4. Self-construal 5. cognitive Style (we did this test)
Machiavelli's Best known book:
"The prince" Prince can retain control over his realm
self observation and self control are guided by situational cues to assess social appropriateness.
- concerned with self-presentation
- pay attention to social comparison info as cues for appropriate self-expression
- control and modify self-presentation and expressive behavior to match others
- exhibit chameleon like behaviors (teacher orientation)
- have limited ability to monitor their behavior to fit different situations
- find it hard to identify/imitate the behavior of other people
- do not say or do things that others will like (seinfeld-woman)
- represents the tendency to deceive and manipulate others for personal gain
- high machs: take more detached, calculating approach in their interactions with others (ex: house)
- low machs: take more personal, empathetic approach in their interaction with others (tend to be more trusting/honest)
to attain goals, there are 2 strategies:
- promotion focus
- prevention focus
- consumers are motivated to act in ways to achieve positive outcomes
- focus on hopes, wants, advancement, accomplishment
- primed by thinking about goals and aspirations
- consumers are motivated to act in ways to prevent negative outcomes
- focus on caution, safety, responsibility, protection
- primed by thinking about duties and obligation
According, to RFT, Regulatory Fit Theory:
consumers attitude toward a product/service depends on:
- the fit b/n the consumer's goal and the strategies available to achieve the goal.
Promotion and Prevention examples:
promotion: sees an ad and shows how great it feels to drive a Volvo
prevention: sees an ad and
shows how safe it is to drive a Volvo
What is the Meyers Briggs test?
Early 1950's development to test personality patterns.
16 types (MBTI) Four scales with opposite poles: 1.
E = extraverted or I = introverted
2.
S = sensory or N = intuitive
3.
T = thinking or F = feeling
4.
J = judging or P = perceiving