Consumer in the Market Place Exam 1

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Terms in this set (...)

Consumer behavior (definition)
the study of individuals, groups, organizations, and the processes they use to select, secure, use and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society
Application of Consumer Behavior
marketing strategy, regulatory policy, social marketing, and informed individuals.
Marketing Strategy (consumer behavior)
marketing decisions based on explicit consumer behavior theory, assumptions, and research are more likely to be successful then those based on hunches or intuitions, and thus they create a competitive advantage
Regulatory (consumer behavior)
various regulatory bodies exist to develop, interpret, and/or implement policies designed to protect and aid consumers
Social Marketing (consumer behavior)
the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole
Informed Individuals.
it is important that consumers accurately understand the strategies and tactics being used so they can become more effective consumers.
Market Analysis
requires a thorough understanding of the consumption process of potential customers, the organization's own capabilities of current and future competitors, and the economic, physical, and technological environment in which these elements will interact
4Cs
Company, Competitors, Conditions, Consumers
Consumers (4Cs)
it is not possible to anticipate and react to consumers' need and desires without a complete understanding of consumer behavior
Company (4Cs)
a firm must fully understand its own ability to meet customer needs. This involves evaluating all aspects of the firm, including its financial condition, general managerial skills, production capabilities, research and development capabilities, technological sophistication, reputation, and marketing skills
Competitors (4Cs)
It is not possible to consistently do a better job than the competition of meeting customer needs without a thorough understanding of the competition's capabilities and strategies
Conditions (4Cs)
the state of the economy, the physical environment, government regulations, and technological developments affect consumer needs and expectations as well as company and competitor capabilities
SWOT Analysis
strengths, weaknesses, opportunities, threats
Marketing 4 P's
Product, Price, Place, Promotion
Product
anything a consumer acquires or might acquire to meet a perceived need
Price
The amount of money one must pay to obtain the right to use the product
Place
The activities that make the product available to consumers
Promotion
The activities that communicate the product's features and benefits and persuade customers to purchase the product
Semiotic Relationships
correspondence between signs and symbols and their roles in the assignment of meaning
Consistency Principle
we seek harmony among thoughts, feelings, and behaviors, we will change components to make them consistent
Balance Theory
considers how a person might perceive relations among different attitude objects and how he might alter attitudes to maintain consistency
Social Judgement Theory
- We assimilate new information about attitude objects in light of what we already know/feel;
- initial attitude = frame of reference
- latitudes of acceptance and rejection: assimilation effects and contrast effects
Cognitive Component of Attitude
knowledge and beliefs about an object
Ways to change Cognitive Component of Attitude
Change Beliefs/ Shift Importance
Add Beliefs/ Change Ideal
Affective Component Of Attitude
the feelings or emotions toward an object
Ways to Change Affective Component Of Attitude
Affect Toward the Ad
Classical Conditioning
Mere Exposure
Behavioral Component of Attitude
- Predisposition to action
- Intensions
- behavioral expectations
Ways to Change Behavioral Component of Attitude
- Coupons/ Free samples/ POP displays
- Tie-in purchases/ Price reductions
- operant conditioning
Six Approaches of Persuassion
- Reciprocity
- Scarcity
- Authority
- Consistency
- Liking
- Consensus
Reciprocity
we are more likely to give if we first received
Scarcity
we tend to find things that are not readily available more desirable
Authority
we tend to believe authoritative source
Consistency
we try not to contradict what we've said before
Liking
we will agree with those we like or admire
Consensus
we will consider what others do before we decide what to do
One-sided message
- Present only the benefits of their product, or only one point of view
- Effective at reinforcing existing attitudes
two-sided message
- Present both good and bad points in their product message
- Provide little weakness after they emphasize their strength
- Effective than one-sided messages in changing a strongly held attitude and with well-educated and not-yet-loyal audiences
-- Give appearance of fairness
-- Lowers counterarguments
-- Disarms unfriendly audiences
Central Information Process
- (Product-relevant information) influence persuasion
- High involved product
Peripheral Information Process
- (Non-product relevant information) influence persuasion
- Low involved product
- Opinions that arise without thinking about relevant information
- Executional Factors
-- User Imagery
-- Tone: serious vs. quirky
-- Appeal used: fear vs. humor
-- Logo
-- Typeface characteristics
-- Pace of ad
-- Media outlet
-- Jingles
Three Dimensions of Emotions
Pleasure, arousal, dominance
Pleasure emotion
- duty
- faith
- pride
- affection
Pleasure Indicator/Feeling
- moral, virtuous, dutiful
- reverent, worship, spiritual
- proud, superior, worthy
- loving, affectionate, friendly
Arousal Emotion
- interest
- hypoactivation
- activation
- surprise
Arousal Indicator/Feeling
- attentive, curious
- bored, drowsy, sluggish
- aroused, active, excited
- surprised, annoyed, astonished
Dominance Emotion
- conflict
- guilt
- helplessness
- sadness
Dominance Indicator/Feeling
- tense, frustrated, conflictul
- guilty, remorseful, regretful
- powerless, helpless, dominated
- sad, distressed, sorrowful, dejected
Maslow's hierarchy of needs
self-actualization, esteem needs, belongingness , safety needs, physiological needs
self-actualization
involves the desire for self-fulfillment, to become all that one is capable of becoming.
Esteem
one's desires for status, superiority, self-respect, and prestige. These needs relate to the individual's feelings of usefulness and accomplishment
Belongingness
reflected in desire for love, friendship, affiliation, and group acceptance
Safety needs
involves seeking physical safety and security, stability, and familiar surroundings
Physiological Needs
include factors such as food, water, and sleep
McGuire's Psychological Motives General Categories
- cognitive preservation motives
- cognitive growth motives
- affective preservation motives
- affective growth motives
Cognitive Preservation Motives
- Need for Consistency
- Need for Attribution
- Need to Categorize
- Need for Objectification
Need for Consistency (active, internal)
- a basic desire is to have all facets of oneself consistent with one another
- These facets include attitudes, behaviors, opinions, self-images, views of others, and so forth
Need for Attribution (active, external)
- Set of motives deals with our need to determine who or what causes the things that happen to us and relates to an area of research called attribution theory
- consumers do not passively receive messages but rather attribute "selling" motives and tactics to ads and the advice of sales personnel, they do not believe or they discount many sales messages
Attribution Theory
Set of motives deals with our need to determine who or what causes the things that happen to us and relates to an area of research
Need for Categorize (passive, internal)
- People have a need to categorize and organize the vast array of information and experiences they encounter in a meaningful yet manageable way
- They establish categories or mental partitions to help them do so
Need for Objectification (passive, external)
- motives reflect needs for observable cues or symbols that enable people to infer what they feel and know
- Impressions, feelings, and attitudes are subtly established by viewing one's own behavior and that of others and drawing inferences as to what one feels and thinks
Cognitive Growth Motives
Need for Autonomy
Need for Stimulation
Teleological Need
Utilitarian Need
Need for Autonomy (active, internal)
- Owning or using products and services that are unique
-- Marketers have responded to this motive by developing limited editions of products and providing wide variety and customization options
-- Product are advertised and positioned with independence, uniqueness, or individuality themes
Need for Stimulation (active, external)
- People often seek variety and difference out of a need for stimulation
- Variety-seeking behavior may be a prime reason for brand switching and some so-called impulse purchasing
Teleological Need (passive, internal)
Consumers are pattern matchers who have images of desired outcomes or end states with which they compare their current situations
Utilitarian Need (passive, external)
- Theories view the consumer as a problem solver who approaches situations as opportunities to acquire useful information or new skills
- Consumers may approach ads and salespeople as a source of learned for future decisions as well as for the current one
Affective Preservation Motives
Need for Tension Reduction
Need for Expression
Need for Ego Defense
Need for Reinforcement
Need for Tension Reduction (active, internal)
- In order to effectively manage tension and stress, people are motived to seek ways to reduce arousal
- Recreational products and activities are often promoted in terms of tension relief
Need for Expression (active, external)
- Need to express one's identity to others
- People feel the need to let others know who and what they are by their actions, which include the purchase and use of goods
Need for Ego Defense (passive, internal)
- When one's identity is threatened, the person is motivated to protect his or her self-concept, and utilize defensive behaviors and attitudes
- A consumer who feels insecure may rely on well-known brands for socially visible products to avoid any chance of making a socially incorrect purchase
Need for Reinforcement (passive, external)
- People are often motivated to act in certain ways bc they were rewarded for behaving that way in similar situations in the past
- Basis for operant learning
Affective Growth Motives
Need for Assertion
Need for Affiliation
Need for Identification
Need for Modeling
Need for Assertion (active, internal)
- Many people are competitive achievers who seek success, admiration, and dominance.
- Important to them are power, accomplishment, and esteem
Need for Affiliation (active, external)
- Affiliation refers to the need to develop mutually helpful and satisfying relationships with others
- Relates to altruism and seeking acceptance and affection in interpersonal relations
Need for Identification (passive, internal)
- results in the consumer's playing various roles
- One gains pleasure from adding new, satisfying roles and by increasing the significance of roles already adopted
Need for Modeling (passive, external)
- Reflects a tendency to base behavior on that off others
- The tendency to model explains some of the conformity that occurs within reference groups
- Marketers use this motive by showing desirable types of individuals using their brands
Single Trait Approach of Personality
- consumer ethnocentrism
- need for cognition (NFC)
- need for uniqueness
Consumer Ethnocentrism
Reflects an individual difference in consumers' propensity to be biased against the purchase of foreign products
Need for Cognition (NFC)
Reflects an individual difference in consumers' propensity to engage in and enjoy thinking
Need for Uniqueness
Reflects an individual difference in consumers' propensity to pursue differentness relative to others through the acquisition, utilization, and disposition of consumer goods
Other Traits relevant to consumer behavior:
- Innovativeness
- Materialism
- Self-consciousness
- Frugality
Dimensions of Big-Five Model of Personality
- extroversion
- instability
- agreeableness
- openness to experience
- conscientiousness
Extroversion
prefer to be in a large group rather than alone, talkative when with others, bold
instability
moody, temperamental, touchy
Agreeableness
sympathetic, kind to others, polite with others
openness to experience
imaginative, appreciative of art, find novel solutions
conscientiousness
careful, precise, efficient
Chunking
assigning meaning, chunk of meaningful information
Learning
any change in the content or organization of long-term memory or behavior and is the result of
information processing
Short-Term Memory
- Working Memory (Where Thinking occur)
- Portion of total memory that is currently activated or in use
Long-Term Memory
- Mental Warehouse containing all of our knowledge
- Portion of total memory devoted to permanent information storage
behavorial learning theories
assume that learning takes place as the result of responses to external events
Classical Conditioning
A stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own
Operant Conditioning
The individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes
Cognitive Learning Theories
Mental activities of human to solve problems or cope with situations without direct experience or reinforcement
High-Involvement Learning
the customer is motivated to process or learn the material
Low-Involvement Learning
customer has little or no motivation to process or learn the material
Perceptual Map
- map of where brands are perceived in consumers' minds
- Used to determine how brands are currently perceived to determine future positioning