MKT 313 Test 2

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Hofstede Framework

Assesses and differentiates different cultures and found that people differ based on where they fall on 6 different dimensions

Power Distance

One of Hofstede's six dimensions of culture. How much the less powerful members of institutions and organizations expect and accept that power is distributed unequally. Hierarchy of people (ex: military)

Individualism vs. Collectivism

One of Hofstede's six dimensions of culture. The degree to which individuals are integrated into groups. Do you care more about the individual (yourself) or the group (org or family). Does the culture emphasize and reward individual initiative, or are cooperation with and conformity to a group more highly valued? U.S. closer to individualism, Asian cultures closer to collectivism

Masculinity vs. Femininity

One of Hofstede's six dimensions of culture. Quantity of Life vs. Quality of Life.

Individualism

Culture emphasizes and rewards individual initiative. Cares more about the individual (yourself)

Collectivism

Culture emphasizes cooperation and conformity to a group. Values the group (organization or family)

Masculinity

Assertive, competitive, power, ambition

Femininity

Relationships, modesty, caring

Uncertainty Avoidance

One of Hofstede's six dimensions of culture. How much members of a society tolerate uncertainty or ambiguity. Ex: If a meeting starts at 10:30; high uncertainty avoidance is showing up to the meeting at 10:15

Long Term

One of Hofstede's six dimensions of culture. Care about the future; care about saving, rewards, adaptation

Short Term

One of Hofstede's six dimensions of culture. Care about past and present; respect tradition, steadiness; social obligations

Indulgence vs. Restraint

One of Hofstede's six dimensions of culture. How much a society allows relatively free gratification of basic and natural human desires related to enjoying life and having fun

Indulgence

Hedonistic behaviors; Pursuit of self-gratification and pleasure

Restraint

Strict social norms.

Monochronic Time Perspective

Believing that a person does one thing at a time, and a strong orientation toward the present and the short-term future. Concentrate on the job; Take deadlines and schedules seriously; Are committed to the job or task; Emphasize promptness; Are accustomed to short-term relationships

Polychronic Time Perspective

View simultaneous involvement in many activities as natural. People and relationships take priority over schedules, and activities occur at their own pace rather than according to a predetermined timetable. Do many things at once; Are highly distractible and subject to interruptions; consider deadlines and schedules secondary; Are committed to people and relationships; base promptness on the relationship; prefer long-term relationships

Relationships as non-verbal Communication

How quickly and easily do cultures form relationships and make friends? Americans tend to form relationships and friendships quickly and easily. Chinese relationships are much more complex and take longer to form (Called Guanxi)

Guanxi

Chinese concept that describes Chinese relationships. Literally translated as personal connections/relationships on which an individual can draw to secure resources or advantages when doing business as well as in the course of social life. Main characteristics are 1) notion of continuing a reciprocal relationship over an indefinite period of time 2) favors are banked 3) extends beyond the relationship between two parties to include other parties within the social network (it can be transferred) 4) the relationship network is built among individuals not organizations 5) Status matters-relationships with a senior will extend to his subordinates but not vice versa 6) the social relationship is prior to and a prerequisite to the business relationship

Self-concept

Totality of the individual's thoughts and feelings one has towards oneself. Individual's perception of and feelings toward himself. Divided into four basic parts: Actual self-concept, Ideal self-concept, Private self-concept, and Social self-concept.

Interdependent self-concept

Fundamental connectedness of human beings. These people tend to be obedient, sociocentric (tending to regard one's own social group as superior to others or socially oriented), holistic, connected and relation oriented. Emphasizes family, cultural, professional, and social relationships. These individuals define themselves in terms of social roles, family relationships, and commonalities with other members of their groups. Women across cultures tend to have more of this type of self-concept than do men.

Independent self-concept

Based on the predominant Western cultural belief that individuals are inherently separate. These individuals tend to be individualistic, egocentric, autonomous, self-reliant, and self-contained. Emphasizes personal goals, characteristics, achievements, and desires. They define themselves in terms of what they have done, what they have, and their personal characteristics.

Possessions and the Extended self

Consists of the self plus possessions. People tend to define themselves in part by their possessions (ex: tattoos, souvenirs, meaningful photographs, pets, etc.). Some possessions are not just a manifestation of a person's self-concept; they are an integral part of that person's self-identity. To some extent, people are what they possess. These possessions have meaning to the individual beyond their market value.

peak experience

an experience that surpasses the usual level of intensity, richness, and meaningfulness and produces feelings of joy and self-fulfillment

Mere ownership effect

also known as the endowment effect. The tendency of an owner to evaluate an object more favorably than a non-owner. People tend to value an object more after acquiring it than before, and they continue to place value on it the longer it is owned

The Nature of Lifestyle

When comparing the relationships between lifestyle and self-concept a study found that: Independents were more likely to seek adventure and excitement through travel, sports and entertainment; to be opinion leaders; and prefer magazines over TV. Interdependents were more likely to engage in home and domestic-related activities and entertainment, and were more likely to engage in social activities revolving around family and community. There are two general lifestyle schemes: The VALS System and the PRIZM System

Lifestyle

Basically how a person lives. It is how one enacts his or her self-concept. It influences all aspects of one's consumer behavior. It is determined by the person's past experiences, innate characteristics, and current situation. It drives your purchase decisions, which in turn, reinforce your lifestyle. Shaped through social interaction as the person has evolved through the life cycle. How we live: activities, interests, likes/dislikes, attitudes, consumption, expectations, and feelings.

Lifestyle Determinants

Demographics, subculture, social class, motives, personality, emotions, values, household life cycle, culture, and past experiences

Lifestyle Impact on behavior

Purchases: How, When, Where, What, With whom. Consumption: Where, With whom, How, When, What

Measurement of Lifestyle

Studies usually involve learning individual's: attitudes, values, activities and interests, demographics, media patterns, and usage rates. These are all psychographics.

Psychographics

Attempts to develop quantitative measures of lifestyle.

Attitudes

Study of psychographics. evaluative statements about other people, places, ideas, products, and so forth

Values

Study of psychographics. Widely held beliefs about what is acceptable or desirable.

Activities and Interests

Study of psychographics. nonoccupational behaviors to which consumers devote time and effort, such as hobbies, sports, public service, and church

Demographics

Study of psychographics. Age, education, income, occupation, family structure, ethnic background, gender, and geographic location

Media Patterns

Study of psychographics. The specific media the consumers utilize

Usage Rates

Study of psychographics. measurements of consumption within a specified product category; often consumers are categorized as heavy, medium, or light users or as nonusers

The VALS System

Provides a systematic classification of U.S. adults into eight distinct consumer segments. Based on enduring psychological characteristics that correlate with purchase patterns. First dimension is primary motivation, determines goals and behaviors. Secondary dimension is resources, or a person's ability to pursue their dominant self-orientation.

Ideals Motivation

One of three primary motivations in the VALS System. These consumers are guided by their beliefs and principles rather than by feelings or desire for social approval. They purchase functionality and reliability.

Achievement Motivation

One of three primary motivations in the VALS System. These consumers strive for a clear social position and are strongly influenced by the actions, approval, and opinions of others. They purchase status symbols.

Self-Expression Motivation

One of three primary motivations in the VALS System. These consumers strive to express their individuality though their choices. They purchase experiences

Innovators

Segment in the VALS System. Successful, sophisticated, active, take-charge people, with high self-esteem and abundant resources. Motivated by a blend of ideas, achievement, and self-expression. Image is important, not as evidence of status or power but as an expression of their taste, independence, and character. They often see brands and products as extensions of their personalities. Most receptive to new products, ideas, and technologies.

Thinkers

Segment in the VALS System. Ideals motivated. Mature, satisfied, comfortable, reflective people who value oreder, knowledge, and responsibility. Most are well educated, and are in or recently retired from professional occupations. Well informed about world and national events and are alert to opportunities to broaden their knowledge. Have a more moderate respect for status quo but are open-minded about new ideas and social change. Tend to base their decisions on strongly held principles and consequently appear calm and self-assured. Content with career, family, and station in life. They plan their purchases carefully and are particularly cautious concerning big-ticket items; they look for functionality, value, and durability in products.

Believers

Segment in the VALS System. Ideals motivated. Conservative, conventional people with concrete beliefs based on traditional, established codes: family, church, community, and the nation. Many express moral codes that are deeply rooted and literally interpreted. As consumers they are conservative, predictable, and highly loyal. Favor American products and established brands, and are averse to change and new technology.

Achievers

Segment in the VALS System. Achievement motivated. Successful career- and work-oriented people who like to, and generally do, feel in control of their lives. They value consensus, predictability, and stability over risk, intimacy, and self-discovery. Deeply committed to work and family. They live conventional lives, tend to be politically conservative, and respect authority and the status quo. Image is important; they favor established, prestige products and services that demonstrate success to their peers. Convenience and time-saving products and services are favorable.

Strivers

Segment in the VALS System. Achievement motivated. Conscious and trendy. They have limited education and tend to have narrow interests. Money defines success for them, but they usually don't have enough of it. They favor stylish products that emulate the purchases of people with greater material wealth. They have less self-confidence, and often feel as though life has given them a raw deal

Experiencers

Segment in the VALS System. Self-expression motivated. Young, vital, enthusiastic, impulsive, and rebellious. They seek variety and excitement, savoring the new, the offbeat, and the risky. Enthusiastic about new possibilities but are equally quick to cool. Politically uncommitted, uninformed, and highly ambivalent about what they believe. Combine an abstract disdain for conformity with an outsider's awe for others' wealth, prestige, and power. Avid consumers and spend much of their income on clothing, fast food, music, movies, and videos and technology.

Makers

Segment in the VALS System. Self-expression motivated. Practical people who have constructive skills and value self-sufficiency. They live within a traditional context of family, practical work, and physical recreation and have little interest in what lies outside the context. Politically conservative, suspicious of new ideas, respectful of government authority and organized labor, but resentful of government intrusion on individual rights. They are unimpressed by material possessions other than those with practical or functional purpose

Survivors

Segment in the VALS System. Their lives are constricted. They live simply on limited incomes but are relatively satisfied. Frequently elderly and concerned with their health, they are not active in the marketplace. They buy familiar, trusted products. Chief concerns are for security and safety and for being with family. They are cautious consumers who look for low prices.

The PRIZM System

a set of geo-demographic segments for the United States, developed by Claritas Inc. It was a widely used customer segmentation system for marketing in the United States in the 1990s and continues to be used today.

Geo-demographic analysis

People with similar cultural backgrounds, means and perspectives naturally gravitate toward one another. They choose to live amongst their peers in neighborhoods offering affordable advantages and compatible lifestyles. Once settled in, people naturally emulate their neighbors. They exhibit shared patterns of consumer behavior toward products, services, media, and promotions. The geographic regions can range from large to small. Use census data as well as Nielson ratings and other information to classify Americans from states down to households. YAWYL= "You Are Where You Live"

Urbanicity

Social groupings determined by population density, relates to where people live and is strongly related to the lifestyles people lead. Divided into four major social groups: Urban, Suburban, Second City, and Town and Country

Urban

Major cities with high population density

Suburban

Moderately dense areas surrounding metropolitan area

Second City

Smaller, less densely populated cities or satellites to major cities

Town and Country

Low-density towns and rural communities

Life Stage Group

based on age and the presence of children. Divided into three major groups: Younger Years, Family Life, and Mature Years

Younger Years

Singles and couples under 45 years of age with no children

Family Life

Middle ages (25-54) families with children

Mature Years

Singles and couples over 45 years of age

The Usage Situation

When are you actually going to use the product? A marketers understanding of this allows them to communicate how their products create consumer satisfaction in each relevant usage situation.

Expanded Usage situation

Strategies that companies use to expand consumers knowledge when it comes to all of the various things that their products can be used for. The goal is to get customers more attuned to various usage situations available in which to accessorize and then create bags to fit the situation (ex:Billy Mays Arm and Hammer commercial)

Physical Surroundings

Key situational characteristic. Include decor, sounds, aromas, lighting, weather, how the merchandise is laid out, etc.

Store atmosphere

The sum of all physical features of a retail environment. Influences consumer judgements of the quality of the store and the store's image.

Atmospherics

The process managers use to manipulate the physical retail environment to create specific mood responses in customers

Service Scape

What atmosphere is referred to as when describing a service business such as a hospital, bank, or restaurant. As you shift from Utilitarian (functional/practical) to Hedonic (pleasure driven), service scape becomes more important. (ex: dry cleaner versus a Starbucks)

Color

Component of physical surrounding. Certain colors and color characteristics create feelings of excitement and arousal that are related to attention. Bright colors are more arousing than dull. Warm colors, such as reds and yellows, are more arousing than cool colors, such as blues and greys. Red is often seen as stimulating which leads to impulse buying. Blue is seen as satisfying. For the dominant interior color, cool colors (ex:blue) should probably be used since they increase sales and customer satisfaction. Attention-getting, warm colors can be used effectively as an accent color in areas where the retailer wants to attract attention and drive impulse purchases. Cool colors appear to be capable of reducing wait time perceptions by including feelings of relaxation.

Aromas

Component of physical surrounding. Odors can affect consumer shopping. Scented environments produce a greater intent to revisit the store, higher purchase intention for some items, and a reduced sense of time spent shopping. Scent preferences are highly individualized; a pleasant scent to one individual may be repulsive to another.

Music

Component of physical surrounding. This can influence consumers' moods, which influences a variety of consumer behaviors. Proper fitting music can increases shopping time, word-of-mouth, and spending amount.

Crowding

Component of physical surrounding. Consumers generally dislike crowds, but shop at the same times. Retailers must balance the expense of a large store versus dissatisfied customers.

Social Surroundings

Key situational characteristic. Other individuals present in the particular situation. People's actions are frequently influenced by those around them.

Embarrassment

A negative emotion influenced by both the product and the situation. Certain products are more embarrassing than others and embarrassment is driven by the presence of others in the purchase or usage situation. Marketers get around this by offering delivery of the product, place product in inconspicuous locations in the store, or try advertisements that show the purchase of a potentially embarrassing product in which no awkwardness or embarrassment occurs.

Temporal Perspectives

Key situational characteristic. Deal with the effect of time on consumer behavior. The amount of time available for the purchase has a substantial impact on the consumer decision process. Limited purchase time often limits search. Internet shopping is growing rapidly as a result of the time pressures felt by consumers

Task Definition

Key situational characteristic. The reason consumption is occuring. Purchases for self-use versus gift giving. Both the general task definition (gift giving) and the specific task definition (the specific occasion for the gift giving ex: wedding, birthday) influence purchase behavior, as does the relationship between the giver and the recipient

Antecedent States

Key situational characteristic. Features of the individual person that are not lasting characteristics, such as momentary moods or conditions.

Moods

Type of antecedent state. Transient feeling states that are generally not tied to a specific event or object. Tend to be less intense than emotions and may operate without the individual's awareness. Influence decision processes, the purchase and consumption of various products, and perceptions of service.

Momentary Conditions

Type of antecedent state. Reflect temporary states of being. For example: being tired, being ill, having extra money, being broke.

Ritual situations

A socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning. Important to marketers because they often involve prescribed consumption behaviors. Ex: weddings, a private toast or prayer on a special occasion, national and global holidays, "Black Friday"

Types of information sought

A consumer decision requires information on the following: 1) The appropriate evaluative criteria for the solution of a problem 2) The existence of various alternative solutions 3) The performance level or characteristic of each alternative solution on each evaluative criterion

Evaluative Criteria

Type of information sought. Engaging in internal and/or external search to determine the features or characteristics required to meet your needs. "Which features do I want?"

Appropriate Alternatives/Various Alternatives

Type of information sought. Possible alternatives such as different brands or different stores. "Which alternatives are available?"

Awareness set

Those brands or products one is aware of

Evoked set (consideration set)

Those brands or products one will evaluate for the solution of a particular consumer problem. Varies depending on the usage situation. Brands or products that you will consider.

Inept set

Brands that are actively disliked or avoided by the consumer. The brand that you found completely unworthy of further consideration

Inert set

Brands you were aware but were basically indifferent toward. No further consideration.

Alternative Characteristics

Gather information about each brand on each pertinent evaluative criterion. Characteristics of potential solutions.

Nature of Information Search

Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes.

Internal Search

Search of long-term memory to determine if a satisfactory solution is known.

External Search

If a resolution is not reached through internal search, then the search process is focused on relevant external information.

Ongoing Search

Type of decision-making. Done to acquire information for possible later use and because the process itself is pleasurable. You might find the search pleasurable and want to use the information for later use

Nominal Decision Making

Type of decision-making. Consumer uses only previously stored information to solve a problem. In response to a problem, a consumer recalls a single, satisfactory solution (brand or store), no further information search or evaluation may occur. "It worked before, it'll work again."

Limited Decision Making

Type of decision-making. You notice a new product at the store because of the attracting power of a point-of-purchase display. You recall unresolved problems that its attributes would resolve so you buy it. Involves mainly internal information.

Extended Decision Making

Type of decision-making. You notice a new product at the store because of the attracting power of a point-of-purchase display. You recall unresolved problems that its attributes would resolve. Instead of purchasing that product right then, you go to another store to look for a lower price for that product or some sort of alternative. The relative importance of external information search tends to increase.

Memory

One of the five primary sources of information. Past searches, personal experiences, and low-involvement learning

Personal Sources

One of the five primary sources of information. Friends, family, and others

Independent Sources

One of the five primary sources of information. Magazines, consumer groups, and government agencies

Marketing Sources

One of the five primary sources of information. Sales personnel, websites, and advertising

Experiential Sources

One of the five primary sources of information. Inspection or product trial.

Information search on the Internet

Fast, efficient, unprecedented access to information and highly beneficial. However, information overload can occur.

Rational Choice Theory

All things being equal, we choose to maximize utility. Given an option we will choose the option that benefits us the most. Task is to identify or discover the one optimal choice for the decision confronting the decision maker.

Bounded rationality

Consumers have a limited capacity for processing information. Consumers often have goals that are different from, or in addition to, selecting the optimal alternative.

Affective choice

The evaluation of products is generally focused on the way they will make the user feel as they are used. The evaluation itself is often based exclusively or primarily on the immediate emotional response to the product or service. Tend to be more holistic in nature. "How do I feel about it?"

Consummatory Motives

Underlie behaviors that are intrinsically rewarding to the individual involved (ex: reading a book for the pleasure of reading a book)

Instrumental Motives

Activate behaviors designed to achieve a second goal (ex: reading a book for the appearance of reading a book to friends)

Attribute-based Choice

Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands. More time-consuming and takes more effort.

Attitude-based Choice

involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice.

Evaluative criteria

Various dimensions, features, or benefits a consumer looks for in response to a specific problem.

Measurement of Evaluative criteria

Before a marketing manager or public policy decision maker can develop a sound strategy to affect consumer decisions, he or she must determine: 1) Which evaluative criteria are used by the consumer 2) How the consumer perceives the various alternatives on each criterion 3) The relative importance of each criterion

Direct method

Method of determining which evaluative criteria are used. Asking consumers what criteria they use in a particular purchase, or in a focus group setting

Indirect method

Method of determining which evaluative criteria are used. Assume consumers will not or cannot state their evaluative criteria

Projective Techniques

Indirect method which allows the respondent to indicate the criteria someone else might use. The "someone else" will likely be a projection of the respondent

Perceptual Mapping

Indirect technique that generally involves having the consumer look at possible pairs of brands and indicate which pair is most similar, which is second most similar, and so forth until all pairs are ranked. These similarity judgements are processed via computer to derive a perceptual map of the brands

Measuring consumers' judgements of brand performance on specific evaluation criteria

Rank ordering scales, semantic differential scales, and Likert scales. Semantic differential scale is probably the most widely used technique. None of these techniques are very effective at measuring emotional responses to products or brands.

Conjoint analysis

Popular indirect method where the consumer is presented with a set of products or product descriptions in which the evaluation criteria vary. Ex: Consumer is presented with the desciption of 24 different notebook computers that vary on four criteria.

Surrogate Indicators

An attribute used to stand for or indicate another attribute. Ex: Indicators of quality are- price, advertising intensity, warranties, brand, country-of-origin, packaging

Rank Ordering Scales

Ex: rank four brands from 1-4 with 1 being the highest and 4 being the lowest

Semantic Differential Scales

Ex: Rate the Honda Accord on the following attributes: Fast_ _ _ _ _Slow

Likert Scales

Ex: Mugshots has the best food in town:
Strongly Agree__ Agree__ Neither Agree nor disagree__ Disagree__ Strongly Disagree__

Constant Sum Scales

Ex: What weights do you put on each of these soft drink attributes? (values must add up to 100): Price( ) Taste( ) Status( ) Calories( )

Conjunctive Decision Rule

Establishes minimum required performance for each evaluative criterion and selects the first or all brands that meet or exceed these minimum standards.

Disjunctive Decision Rule

Establishes a minimum required performance for each important attribute (often a high level). All brands that meet or exceed the performance level for any key attribute are acceptable

Elimination-by-Aspects Rule

Requires the consumer to rank the evaluative criteria in terms of their importance and to establish a cutoff point for each criterion. Then (in order of attribute importance) brands are eliminated if they fail to meet or exceed the cutoff

Lexicographic Decision Rule

Requires the consumer to rank the criteria in order of importance. The consumer then selects the brand that performs the best on the most important attribute. If two or more brands tie, they are evaluated on the second most important attribute. This continues through the attribute until one brand outperforms the others.

Compensatory Decision Rule

States that the brand that rates highest on the sum of the consumer's judgements of the the relevant evaluative criteria will be chosen. Good performance on one evaluative criteria can compensate for poor performance on other evaluative criteria. Don't rule anything out

Irrational Behavior

Consumers often have goals that are different from, or in addition to, selecting the optimal alternative. We try to minimize the cognitive effort required for a decision. (ex: the chocolate experiment- the power of freebies). The "Marshmallow Test"

Loss Aversion

people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies suggest that losses are twice as powerful, psychologically, as gains

Sunk Cost Dilemma

Retrospective (past) costs that have already been incurred and cannot be recovered (ex: paying to see a movie and it's a terrible movie)

Predictably Irrational

Everything is relative. We tend to overweight certainty, however, we also tend to overweight low percentages.

Internet retailing

Research suggests that products and services can be categorized into three groups based on their purchase characteristics relative to Internet shopping: 1) replenishment goods 2) researched items 3)convenience items

Replenishment goods

Kind of product consumers buy on the Internet. moderate cost, high-frequency purchases. Items that are relatively expensive and easy to ship will be most successful. Ex: health care items such as vitamins, beauty aids, and gourmet foods

Researched Items

Kind of product consumers buy on the Internet. High-information, big-ticket, planned purchases. Internet sales will be led by items with low style content and those for which "touch" is not important. Ex: leisure travel, computer hardware, and consumer electronics

Convenience Items

Kind of product consumers buy on the Internet. Low-risk discretionary items. Internet sales will be most successful for those where huge selection and deep discounts are important and easy shipping is available. Ex: books, CDs, flowers, and event tickets

Advantages of online shopping

Good selection, convenience, price, unique merchandise, having product delivered, no time to go to the store, don't have to wait in line, easy to find things, don't have to deal with crowds, don't have to deal with poor customer service, saves time, don't have to deal with parking or traffic, for people who don't like shopping

Disadvantages of online shopping

Credit card security concern, lack of "touch", don't have credit/debit card, delivery costs, don't want to wait for delivery, bad online buying experiences, don't always know exactly what you're getting (ex:patch on the side of a shirt that was not shown online)

Store-based retailing

For many people, in-store shopping is perceived as neither fun nor an efficient use of time. However, retailers are trying to improve in-store experiences with store-based retailing activities and technologies. Lifestyle centers are emerging to generate excitement and adapt to the changing shopping habits of consumers. Brand stores are emerging as major sales volume outlets as well as promotional devices for brands. Other approaches are being tried, including kiosks, ministores, and stores within stores.

Point-of-Purchase Materials

Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located in the checkout area or other locations where the purchase decision is made.

Price Reductions and Promotional Deals

Generally accompanied by the use of some point-of-purchase materials. Affect decision making and choice. There is a sharp increase in sales when the price is first reduced, followed by a return to near-normal sales over time or after the price reduction ends. High-quality brands tend to benefit more when prices are reduced, and they suffer less when prices are raised.

Stockpiling

Current brand users may buy ahead of their anticipated needs. Often leads to increased consumption of the brand, since it is readily available

Stockouts

The store being temporarily out of a particular brand. Results in consumer purchasing a substitute, forgoing purchase entirely, negative word-of-mouth about store, and negative attitude towards store.

Substitution costs

Refers to the reduction in satisfaction the consumer believes a replacement size, brand, or product will provide.

Transaction costs

Refers to the mental, physical, time, and financial costs of purchasing a substitute product or brand

Opportunity costs

The reduction in satisfaction associated with forgoing or reducing consumption of the product

Reference price

A price with which other prices are compared.

External reference price

A price presented by a marketer for the consumer to use to compare with the current price

Internal reference price

A price or price range that a consumer retrieves from memory to compare with a price in the market

E-waste

discarded electrical or electronic devices. Exploding demand and short product life spans for high-tech gadgets such as cell phones, personal computers, and various other personal electronics devices is causing concern for e-waste

Store choice

All else equal, consumers generally select the closest and biggest store.

Store image

a given consumer's or target market's perception of all the attributes associated with a retail outlet. "Bricks and Mortar" image versus online image

Retail gravitation model

Used to calculate the level of store attraction based on store size and distance from the customer

Spillover sales

sale of additional items to customers who came to purchase an advertised item

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