Consumer Analysis and Behavior Essay Questions (midterm)
Terms in this set (41)
1.1 Define the term marketing concept. Why are companies changing their focus to improved customer service? Provide an example.
marketing concept: the correct philosophy or concept for conducting business. This philosophy is that a company should aim to satisfy customers in order to make money. To carry this philosophy out, a company needs to be aware of consumer wants and needs so that they can be satisfied.
1) many of the worlds leading businesses have adopted this concept. Other companies are noticing that this strategy leads to success.
2) the quality of consumer and marketing research is increasing. In the past, companies didn't always have access to detailed, high quality consumer information. Since this information is becoming more and more available, companies with lower research budgets are able to gather better information.
3) the development of the internet. The internet has become a major source of information for businesses. Companies can more easily share and gather information on the internet.
(tire company, mistakes, loose long-term customers)
1.2 Discuss the three major approaches to studying consumer behavior.
* interpretive approach- more recent method that is becoming popular. tends to involve long interviews and focus groups. emphasis on meanings and uses cultural anthropology methods. An example would be a researcher gathering a smaller focus group for a long interview regarding their company that sells makeup. In the interviews, their goal may be to learn more about the meaning behind the consumption of makeup.
*traditional approach: been used for many years. used more surveys and experiments. focusses on psychology and sociology. The goal is to discover the buying process and how the consumer makes their buying decisions. Surveys and experiments are used to study the behavior of the consumer. An example would be a researcher conducting a survey regarding their company that sells makeup. They may ask a question like "How do you choose your makeup brand?" Questions like this will help them better understand consumer decision-making.
* marketing science approach: uses math-modeling and simulation to study consumer behavior. focusses on how different marketing strategies can affect consumer decisions and behavior. seeks to predict consumer choice. An example of the marketing science approach would be a researcher conducting math-modeling test. They may use statistics and math in order to predict consumer choice in the future.
1.3 Discuss the following three statements:
Consumer behavior is dynamic.
Consumer behavior involves interactions.
Consumer behavior involves exchanges.
1) dynamic. There are many factors that influence consumer behavior and it is important for marketers to be aware of this. Consumer behavior involves things such as thoughts, feelings, actions and all the potential factors that influence these things. A marketer also needs to be aware of things such as the environment, advertising, opinions, and product appearance.
2) interactions. Behavior easily influenced by interactions between the consumer and the environment, the product, the advertising, and the company. It is important for marketers to study how their target market interacts with all these factors. For example, in certain cultures, people will interact differently.
3) exchanges. To be more specific, it involves exchanges between the business and the consumer. business and consumer have something of value to exchange, both hopefully benefiting from this exchange. A typical exchange would be the customer giving a business money in order to receive a product that the consumer is in need of.
2.1 Discuss the three elements of consumer analysis. Why is it referred to as the Wheel of Consumer Analysis?
1) consumer affect and cognition. Affect refers to feelings whereas cognition refers to thinking. An example of studying consumer affect would be a marketer asking respondents how they feel about a certain product or their emotions towards a company. An example of a researcher studying consumer cognition would be a researcher asking a respondent their opinion of a product or if they agree with the structure of a certain company.
2) consumer behavior. Consumer behavior is not the feelings or thinking of a consumer but the physical actions of a consumer. Studying consumer behavior is different from studying mental activities and is often referred to as overt behavior. An example of studying consumer behavior would be a researcher observing what products people buy while shopping in Walmart. Buying products is a physical activity that marketers can study.
3) Consumer environment is related to the previous two elements because it focusses on how outside factors influence both the thoughts and actions of the consumer. Environmental influencers include family, friends, culture, advertisements, and even products. An example of a consumer environment study would be a researcher watching how a consumers family may affect their buying habits. For instance, a consumer coming from a more strict family may be more cautious when it comes to spending money.
2.2 Discuss the concept of reciprocal determinism. Explain the implications to viewing consumer processes as a reciprocal system.
Reciprocal determinism or the reciprocal system refers to how any of the consumer analysis elements can change at any time and any element may or may not be the cause of that change. For example, a consumer may want to buy a dog but later they may change their mind and decide not to purchase one. Their change of mind could've been due to an environmental factor such as family. A family member may've advised them not to purchase a dog. A consumer may've also changed their mind because a consumer cognition factor. The consumer may've used their mind and thought about purchasing a dog, eventually deciding they weren't ready to own a dog. Lastly, they could've decided not to buy a dog because they just had a bad feeling about it. This would be because of a consumer affect factor. This is just one example of how all these factors influence each other in a reciprocal system.
A researcher needs to be very aware of the reciprocal system while analyzing consumers. There are five different implications when it comes to the reciprocal system.
1)a researcher needs to be aware of all three consumer analysis elements and how they can affect each other.
2)a marketer must know, since these elements form a wheel, any element can be the starting point.
3) a marketers need to realize that the consumer can continuously change at any time, due to any factor.
4) the elements can refer to not just one consumer, but a segment of consumers or a certain focus group of consumers. In other words, there are several layers a marketer can analyze.
5) important to remember the point of consumer analysis, which is to develop a marketing strategy.
2.3 Explain the four levels at which consumer analysis can be conducted.
1) societies - very broad segment often including a large amount of people. An example would be an overall belief or behavioral study of the society. More specifically, for instance, it is believed that people in the mid-west tend to be more conservative whereas people in the west tend to be more liberal.
2) industries, refers to relationships between companies, competitors, and consumers. For example, Starbucks made coffee increasingly popular in the US, as a result changing consumer behavior and consumer feelings towards coffee.
3) market segments: groups of consumers who have certain similarities. very important level that many marketers chose to analyze. For example a tea company may choose to analyze tea connoisseurs or tea reviewers living in Colorado. tea connoisseurs living in Colorado would be considered a certain market segment. Another example of a market segment would be 30-35 year old women living in the mid-west
4) individual consumer: the individual consumer is one specific person. A researcher may study one purchase a consumer makes or a whole consumption history of a consumer. An example of this would be a company sending a survey to one of their customers who purchases from them regularly.
2.4 Provide three examples of changes in marketing strategy that led to changes in your cognition and behavior.
1) when I saw that a certain tea company sends free samples if you spend $30 or more, I decided to buy more tea than I originally planned in order to get the free sample.
2) when I saw a certain models wearing animal print clothing. I didn't favor or really like animal print clothing but, since I saw a person I liked wearing animal prints, my opinion and feelings changed towards animal print
3) when Starbucks chose to openly support gay marriage. I am not a supporter of gay marriage so when I saw that Starbucks supported it, I decided to go to Starbuck less.
2.5 Discuss the marketing strategy at Starbucks.
Starbucks, one the most popular coffee shops in the world, has very successfully carried out a smart marketing strategy. Starbucks focusses on creating an enjoyable experience for the consumer and serving good quality coffee. Like discussed in the previous chapter, Starbucks puts the consumer first and has, as a result, become very financially successful. The CEO of Starbucks also claims their success if due to their employees. Starbucks has over 40,000 employees worldwide who carefully train and encourage. In conclusion, Starbucks doesn't put money first, but puts people first. They aim to satisfy both the customer and the employees which has lead to their major success. This is a marketing strategy that other companies should use as a model.
3.1 Discuss the five basic characteristics of the affective system.
1) largely reactive. persons reactive system responds immediately and no one can fully predict or plan these responses. For example, person A may meet person B and immediately comment saying they like person B's shirt. No one would've been able to know for sure that this would happen since the response was instant.
2) people can have little direct control over the affective system. For example, person A may be rude to person B but is person A is in a good mood, rude comments may not affect them. If person A was in a bad mood, on the other hand, they may have negative feelings after the rude comment.
3) affective responses can be felt not just emotionally but physically. For example, if someone decides to buy a house, they may not just have nervous feelings but they may feel physically sick since it is such an important decision.
4) affective system can respond virtually to any type of stimulus. For example, a consumer can react to a product or a salesperson. A consumer could react to the atmosphere of a shop or the decor of a shop.
5) most affective responses are learned. For example, if a consumer knows they are allergic to gluten, they may automatically have negative feelings towards someone who tried to feed them gluten.
3.2 Discuss the relationship between affect and cognition.
relationship between affect and cognition - disagreed upon by many researchers.
-some say they are independent factors, other argue that they are very much related. They also argue as to whether affect influences cognition or cognition influences affect.
-It is the most common belief though that these factors both continuously influence each other. The environment is the starting point for both the affective system and the cognitive system. The environment influences these factors. The affective system leads to affective responses such as emotions, feelings, and moods. The cognitive system leads to cognitive responses such as knowledge, meanings, and beliefs. It is then thought that the affective response can influence the cognitive system and the cognitive responses can influence the affective system.
An example of this relationship would be a consumer learning that a makeup company tests their products on animals. A consumers cognitive system would take this in and respond by thinking of the company as bad. If the consumer was against testing on animals, the cognitive response could then influence the affective system by causing negative feelings towards the makeup company.
3.3 Explain the model of consumer decision making (Peter and Olson, exhibit 3.5, page 52).
The model of consumer decision making explains the process of interpretation, integration, and product knowledge in memory. The model of consumer decision making also focusses on the cognitive process. At the top of the model is the environment which can influence the interpretation process and attention comprehension. The interpretation process and comprehension then affects new knowledge, meanings, and beliefs. The chart then shows the integration process and attitudes and intentions decision making. This then all influences behavior. This chart also shows how all these factors interact with memory and stored knowledge, meanings, and beliefs. All of these factors are interrelated and influence each other.
One example of how these can all affect each other is a consumer deciding to buy a house. The outside environment might influence her decision because outside factors could tell her the house is ugly. A relator, on the other hand, could tell her that the house is very in style which could give the consumer new knowledge a new opinion. Previously stored knowledge and memory on the other hand could remind her that houses are very expensive. If she was very careful with spending large amount of money, she may decide not the purchase the house.
3.5 Discuss the three types of cognitive learning.
1) Accretion: most common type of cognitive learning. when a consumer adds new knowledge, meanings, and beliefs to their knowledge structure.
example: a consumer learning about a brand new product. Since they had no previously knowledge of this product, it is considered accretion.
2) tuning: when different parts of knowledge structure are combined to create a new meaning or concept. also makes certain information more accurate.
example: a consumer may know that a certain perfume company sells perfume for a high cost and uses organic products. They may combine this knowledge to determine that the perfume is high quality.
3) Restructuring: either the reorganization of old knowledge or creation of completely new meanings.
differentiated from accretion because accretion typically occurs without cognitive awareness. Unlike accretion, a person is very aware when restructuring takes place since it takes cognitive effort, reasoning, and extensive thinking. example: when a brand new product is introduced that changes a consumers way of thinking. For example, when touch screen phones were first innovated, the consumer had to change their original thoughts and beliefs about phones. The consumer was used to having a physical keyboard on their phone rather than a touchscreen. The adoption process of touch screens involved restructuring.
4.1 Define the four levels of product knowledge. Outline these four levels for the product potato chips.
1) product class: the most broad level of product knowledge and is also the most abstract. (examples are tea, mascara, and ice cream)
2) product form. This level, though broad, is a little more specific than product class. (Examples are loose-leaf tea, long-lash mascara, and soft-serve ice cream)
3) brand. This is a less abstract level. Some products may bring many brands to a consumer's mind while others may bring little. It is the goal of many companies for their brand to be associated with the product class and product form. (Examples include Canton Tea Co., Maybelline, and McDonald's)
4) model/features. This level is when consumers can recall certain characteristics of products. Companies aim to have consumers remember their brand's features and characteristics. (Examples of Canton Tea Co.'s features would be high quality and organic. or Maybelline mascara characteristics would be black and water-proof)
4.2 Explain the three types of product knowledge using the product Coca-Cola.
1) knowledge about the attributes or characteristics of products. (bundle of attributes) Marketers can alter product attributes in order to make them memorable and appealing to consumers. (Coca-Cola some attributes of characteristics I remember are: $2.50, red label, different sized bottles)
2) positive consequences or benefits of using products. Along with the benefits, consequences are also taken into account. There can be both functional consequences and psychosocial consequences. Perceived risks, a part of potential undesirable consequences can also occur. (Coca-Cola: Energy boost from caffeine and weight gain from sugar)
3) values the product helps consumers satisfy or achieve. (value satisfaction) Values are a persons life goals or needs. Values have to do with emotion and are more intangible than the other types of product knowledge. (Coca-Cola: someone drinking it in order to look cool and fit in with their friends who drink Coca-Cola.)
4.4 Explain the influences on a person�s level of involvement.
1) Intrinsic self-relevance (the first influence) based on what consumers store in their memory. Past experiences with a product and influence a consumer's level of involvement. (example, if a consumer had a positive past experience with potato chips, the means-end chain will more likely have positive points listed)
2) Situational self-relevance: is determined not by memory but by the physical and social environment. Since environmental factors are often changing, the links in the means-end chain are also often changing. (examples of environmental factors would be shopping in a busy store rather than an empty one. A customer may feel more self-conscious about what they buy when the store is busy since people will see them. Because of this, a person may be less likely to buy a lot of junk food)
5.1 Describe the four important aspects of the cognitive system that influence how consumers interpret information.
1) exposure to information: involves interactions. These interactions are between knowledge already stored in memory and new information from the environment. Exposure can also be intentional or accidental.
2) marketing implications: the goal of companies to have consumers exposed to and aware of their products. Marketers should set objectives in order to facilitate intentional exposure.
3) variations in attention: There are different levels of attention and these levels can also differ from person to person. Preconscious attention is an automatic, unconscious attention whereas focal attention is a controlled attention.
4) factors influencing attention. three major influences: the consumers' affective state, involvement, environmental prominence
5.2 Discuss the three factors influencing consumers' attention to marketing information.
1) affective states: consumers amount of arousal or their mood can affect their attention marketing information. (example, if a consumer is in a bad mood, they may be less inclined to pay attention to marketing information around them such as radio commercials or billboards. A marketer may aim to overcome this situation by making their marketing information as prominent and noticeable as possible)
2) involvement: the more a consumer is involved with a certain product, the more likely they will notice that product. if a consumer is wanting to buy a new dress, they will be more likely to notice advertisements for dresses or women's clothing stores. Marketers can take advantage of situations such as this by attempting to predict future needs and then catering towards them. (example, if the weather man predicts the next week to be extremely hot, a store could place ads for their tank tops. They could also make their tank tops on sale to cater towards the consumers living in the area)
3) environmental prominence: consumers are far more likely to pay attention to ads that are prominent and stand out from the rest. Marketers should make it their goal to make their marketing information prominent. If someone is looking at products on Pinterest, for example, they will be more likely to notice big, eye catching pictures. Marketers need to evaluate the best way to catch a consumers attention in every channel they are using.
5.3 Discuss the factors that influence comprehension.
1) the knowledge that is already in the consumers memory: A consumers ability to comprehend new information is highly depended on the knowledge they already have in their memory.
2 different levels of consumers based on their knowledge: 1) there are expert consumers who are very familiar with the product category, form, and brands. For example, a tea reviewer would be considered an expert consumer by tea companies. 2) novice consumers who have little familiarity with the product or brand. These aren't always the best consumers to target.
2) involvement: consumer who is more involved tends to process marketing information in a deeper more abstract way. (example, a consumer who is passionate about pandas will be more likely to pay attention to a commercial about stuffed animal pandas. This consumer is more involved with pandas and is therefore more likely to comprehend the marketing information. A consumer who, on the other hand, doesn't care much for pandas may not pay as close attention to the commercial)
3) exposure environment: the less a consumer is exposed to marketing information, the less likely they are to comprehend and process that information. Consumers who are in a hurry are also less likely to notice advertisements if they do not stand out. Marketers can overcomes problems like this by making sure their product is highly exposed and easy to process quickly. For example, ads with eye-catching pictures are more likely to comprehended quickly in comparison to small, wordy ads.
5.4 Discuss the different types of knowledge and meanings that shallow and deep comprehension processes create.
*Deep comprehension: abstract meanings that are less tangible and often more subjective. (example, a deep comprehension of lip stick would be that it makes me feel pretty when I wear it)
*Shallow comprehension, on the other hand, creates more tangible, functional meanings. (example, a shallow comprehension of lipstick is that is is a bright shade and comes in a gold tube)
*marketer should want to consumer to have both a positive, deep comprehension of their product. Though it is important for the consumer to have knowledge regarding the product attributes, they are probably more likely to buy a product is they have formed abstract meanings. It is also important that these meanings are positive. A consumer could think that they look awful in Converse shoes. Though this is a deep meaning, it is negative and won't lead to Converse sales.
5.5 Give an example of automatic attention and contrast it with an example of controlled attention. What implications does this distinction have for marketing strategy?
Automatic attention and controlled attention are two very different types of attention.
Familiarity and frequent exposure tend to lead to automatic attention. (example: when I see Starbucks, I automatically know this is a coffee shop that I like)
Controlled attention, on the other hand, is when a consumer has to consciously process information and look for meaning. (example: if I walked by a coffee shop I didn't know about. I would have to consciously look at signs or the decor to interpret what kind of coffee shop it is and what they sell. Marketers can use this information in a few ways. First, they could attempt to target consumers who automatically recognize their brand and favor them. A marketer could also try to provide easy and quick to process information that the consumer can observe)
6.2 Explain the four possible attitude change strategies. Provide an example of each, and make sure they are different from the examples in the textbook.
1) add a new salient belief about the attitude object: A marketer should aim to make this a positive new belief that will stick with the consumer. (This is the most common attitude change strategy). An example would be a makeup company beginning to make all their makeup water-proof. Consumers may then adopt the belief that all their products are water-proof. This would typically be a positive new belief that marketers would be happy about.
2) change the strength of already existing salient beliefs: A company may attempt to do this by further promoting already existing, positive characteristics. (example if a company is known for having good gluten-free products, they may seek to specifically promote this quality. If the company wasn't certified gluten-free, they may proceed to do so in order to solidify this belief in consumer's minds)
3) change the evaluative aspect of an existing, strong belief about a salient attitude: For example, if a company sold a cereal that was believed by many consumers to be healthy, the company may try to show how the cereal is healthy and what makes it healthy. For example, they may say certain ingredients, such as nuts, make the cereal healthy.
4) make an existing favorable belief more salient: done by making the consumer believe the attribute is more self-relevant then they originally thought. Though this strategy is very similar to the previous one, it has a few differences. One example would be the cereal company linking their product to a healthy liver. If they linked their product to a decrease in liver cancer, consumers may begin to believe this in a stronger way.
6.3 Summarize the theory of reasoned action.
Fishbein also created another model called the theory of reasoned action. This model assumes that consumers consciously think about the consequences of the alternative actions under consideration. The consumer will then choose the action that leads to the most desirable outcome or consequence. This theory only applies to voluntary behavior that is intended. It cannot be applied to involuntary or simple behaviors. An example of this theory would be a consumer considering whether or not to buy an ice cream cone. They think about how much they will enjoy the ice cream. They also think about how they are on a diet and eating ice cream would be cheating. In the end, the consumer may decide the benefits of the ice cream outweigh the costs. This is called a reasoned action.
The theory of reasoned action also includes a formula to calculate a behavior and the consumers intention to carry out that action. This formula uses the consumer's attitude and whether or not other people want the consumer to engage in the behavior. This theory also states that people are more likely to engage in an activity if it is popular and other people are in favor of it. For example, if a consumer's friends are buying ice cream and they encourage other to buy ice cream, the consumer will be far more likely to buy the ice cream.
6.4 Define attitude and describe the two main ways that consumers can acquire attitudes.
Attitude: a consumer's overall evaluation of a concept. Marketers look at how consumers acquire attitudes and attempt to strengthen or change these attitudes. For example, if the attitude towards a product is very positive, a consumer may aim to strengthen and solidify this attitude in a consumer's mind. If the attitude is negative, the marketer may aim to change or erase this attitude through different methods and strategies.
1) consumers can acquire attitudes through the affective system such as emotions, feelings, and moods. For example, if ice cream makes a consumer feel very happy, it is likely that they will have a positive attitude towards ice cream.
2) consumer can acquire attitudes through the cognitive system such as thinking and evaluating. For example, if a consumer thinks about the benefits of ice cream and concludes they are good, that consumer will likely have a positive attitude towards ice cream.
6.5 Discuss the problems in measuring behavioral intentions to (a) buy a new car; (b) buy a soda from a vending machine; (c) save $250 per month toward the eventual purchase of a house. What factors could occur in each situation to make the measured intentions poor predictors of actual behavior?
Behaviors are defined as specific actions directed towards a target object. Measuring behavioral intentions can be a challenge in certain situations. Typically these intentions are measured on a scale of 1 to 10, 1 being extremely unlikely and 10 being extremely likely. It can be hard to measure behavioral intentions according to attitudes since a person could have positive feelings towards something but could have no intention of acting upon that feeling or belief. Despite this, behavior intentions are often measured by attitude towards the behavior or action and the subjective or social norm.
a) it would be hard to determine a consumers intention to buy a new car. The consumer could really love cars and everyone could be in favor of them buying a car but there are too many other influencing factors. The consumer may not have enough money for a car or they may not want to buy one until next year.
b) soda from a vending machine. This can be hard to predict due to an unforeseen situational context and potential unforeseen environmental events.
c) saving $250 per month toward the eventual purchase of a house is also very hard to predict. Many things could potentially occur causing the consumer not to want a house. If the consumer changed their mind on buying a house, they likely won't save $250 a month. In order to predict behavioral intentions most accurately, a marketer needs to measure consumers' intentions at the same level of abstraction and specificity as the action, target, and time.
7.1 Distinguish between compensatory and noncompensatory integration strategies and offer an example of each.
*Integration strategies include two tasks; choice alternatives are evaluated and then one the alternatives is selected. In order to perform these tasks, a marketer can choose compensatory or noncompensatory integration strategy.
*Compensatory integration processes use all of the salient beliefs about consequences in order to form an overall evaluation or attitude towards each behavioral alternative. An example of a compensatory model would be the multiattribute attitude model discussed earlier.
(An example would be a girl wanting to buy eye shadow. She looks at all the positive and negative consequences of buying a certain eye shadow pack. If all the positive benefits outweigh the negative, she may decide to buy the eyeshadow. This is an example of the multiattribute model)
*Noncompensatory integration processes include several types; conjunctive, disjunctive, lexicographic, and elimination by aspects. These are all noncompensatory because the salient beliefs about the consequences of the alternative do not balance or compensate for each other. (An example would be a girl wanting to buy makeup. She may find the perfect color of eye shadow to match her eyes so she may decide to buy that eye shadow. Despite the perfect color, the makeup may have some consequences such as being expensive and non-waterproof. Since the girl only considered one aspect of the product, she used a lexicographic integration strategy)
7.2 List the four types of interrupts discussed in the text. Give an example of each from your own experiences.
1) when unexpected information is encountered in the environment. When this occurs, the consumer is often forced to take conscious control of the problem-solving process. I have had this occur when I was shopping for shampoo. I was about to buy my favorite brand when I realized they changed the scents of the shampoo. I then had to consciously decide whether I still wanted this brand of shampoo or a different brand.
2) when prominent environmental stimuli interrupt a problem-solving process. Many marketers aim to do this in order the change consumer habits. For example, I was once going to buy the brand of juice I normally get. I noticed due to a large sign that there was another brand of juice that was on sale. Because of this, I ended up buying the juice that was on sale.
3) when affective states such as moods or feelings and physiological events interrupt an ongoing problem-solving process. An example of this is when I was shopping while I was hungry and really craving chocolate. Though I didn't originally plan to buy chocolate, my craving for it caused me to change my mind and purchase chocolate.
4) when conflicts arise during the course of purchase decision making. This can interrupt the problem-solving process. An example of this would be when I wanted to buy milk and cheese. I found I only had enough money for one of these items but neither would satisfy all of my needs. In the end, I had to choose to satisfy only one of my needs by buying milk.
7.3 Discuss the generic model of consumer problem solving and why it is often described as an "imperfect example of actual problem-solving processes."
The generic model of consumer problem solving is comprised of problem recognition, alternative solutions, evaluation of alternatives, purchase, and post-purchase use. This model is often described as an "imperfect example of actual problem-solving processes."
There are three main reason for this description.
1) the actual consumer problem solving seldom proceeds in the linear sequences which is portrayed in the generic model. (example: people seldom wait to evaluate the alternatives after finding every single one. They will typically evaluate them as they find them)
2) actual problem-solving processes involve multiple, continuous interactions among consumers' cognitive processes. (example, things such as environmental information can drastically change a consumer's beliefs. This is not included in the generic model)
3) most problem-solving processes actually involve multiple problems and multiple decisions. A consumer typically makes far more decisions throughout the decision-making process than what is included in the generic model. Because of all these problems, the cognitive processing model of consumer decision making is often used in place of the generic model.
7.4 Discuss the three categories of consumer heuristics and provide specific examples of each.
*Heuristics connect events with appropriate actions are are know as "if....then...." productions. Heuristics are also highly adaptive.
1) search heuristics: include seeking important information that is relative to a goal. (example, if a girl was seeking to buy makeup, she may looks at the ingredients on different makeup brands. If she prefers certain ingredients, this will help her make decisions. In other words, if the make up has certain ingredients, then she will purchase it)
2) evaluation heuristics. These include evaluation and weighting beliefs in terms of the current goal being addressed in the problem solving process. (example, if a consumer is very green and eco-friendly, they may evaluate all the products in order to choose the one which is most eco-friendly)
3) choice heuristics. This includes comparing evaluations of alternative actions in order to choose one. (example, a consumer may use past experiences to determine what they buy or they may take the advice of someone whose knowledgable. For example, when purchasing groceries, I ask my mother if what I'm purchasing is a good deal financially since she has been grocery shopping a lot)
7.5 Discuss the three levels of problem-solving activity and provide examples of each.
1) Problem representation: can include different things such as an end goal or relevant product knowledge. A problem representation also serves as a decision frame or a reference through which problems and alternatives can be evaluated. For example, if a consumer's end goal is so make spaghetti, they will use problem representation to find the ingredients that are necessary to make spaghetti.
2) integration processes: involves evaluating the choice alternatives and then selecting one of those alternatives. For example, if a consumer was wanting spaghetti, they may consider buying all the ingredients or simply going to an Italian restaurant. They may, in the end, find that it's cheaper to go to a restaurant and decide to go there.
3) Decision plan is the process of identifiying, evaluating and choosing among alternatives. This is the most complex level or problem-solving activity. Some decision plans involve a simple process of performing one behavior or a more complex process of performing a series of behaviors. For example, a consumer may plan to go to five different grocery stores and browse in order to purchase the best bottle of pasta sauce.
List the three empirical rules that marketing strategists can use to determine the extent of a consumer's search for information.
1) consumers tend to engage in more search when purchasing higher-priced, more complex products. In other words, the higher the risk, the higher the search for information. An example of this would be a consumer buying an expensive car. Since the consumer will be spending so much money, they are far more likely to do extensive car research,
2) search is influenced by individual factors such as the perceived benefits of search, demographic aspects of the consumer, and product knowledge already possessed. For example, if a consumer knows research is beneficial, they will be more likely do do so. If the consumer lives far away and is driving far to purchase a product, they are more likely to search for information since there is more risk.
3) search efforts tend to be further influenced by factors in the market place and by situational factors. For example, if there are multiple stores near a consumer, they may seek out information to discover which store is closest to them,
Discuss what is meant by store contact and how it can be facilitated by a retail organization.
A majority of products are purchased in retail stores. The process of doing this is referred to as store contact. It is the goal of marketers to attract consumers to their outlet. Store contact includes three major tasks; locating the outlet, traveling to the outlet, and entering the outlet. Amount or probability of store contact is highly influenced by consumer nature. Some consumers may dislike shopping and will locate the closest and fastest outlet. Others love shopping and will seek out an outlet in which they can spend lots of time.
As stated before, many marketers seek out strategies to increase store contact. They can do this by seeking to affect each major task. A marketer could, for example, make their store easy to locate by including directions online. A marketer could also include all their locations on a website, this way people know their outlet is easy to travel to. A marketer could also make their outlet entrance very noticeable by having large signs. This would increase the amount of people who enter the outlet. Overall, these are some strategies to increase store contact.
Discuss the objectives marketing managers use to increase post-transaction communication behaviors.
1) the marketer wants the consumer to provide the company with marketing information
2) the marketer wants the consumer to tell other potential consumers about the product.
To obtain the first goal of receiving marketing information, marketers use a few objectives. First, if they wanted names of other potential consumers, they may offer rewards to the buyer if they give them name suggestions. Second, they may use warranty cards which gather marketing information from buyers right after the purchase. These cards often ask demographic questions and how the consumer decided to purchase the product.
Marketers also have tactics to increase consumer to consumer actions. Consumers often respond well to information from their friends rather then strangers. One common tactic is to have a consumer host a party for a specific product. The consumer hosting the party will often be given a discount or gift as incentive. Companies will also give consumers discounts or credit towards their store when they recommend a friend. For example, I once was given $10 of credit in a book store when I recommended a friend and they purchased something.
Compare and contrast operant and classical conditioning.
1) Operant conditioning is the process of altering the probability of behavior by changing the consequences.
2) Classical conditioning is the process by which a neutral stimulus becomes capable of causing a response because it was repeatedly paired with the stimulus that causes the response.
- First, classical conditioning typically is concerned with involuntary responses whereas operant conditioning is concerned with conscious responses.
-Classical conditioning can be accomplished through unconditioned stimuli and previously conditioned stimuli. (For example, most people have been previously conditioned to the sound of a microwave beep and will automatically know their food is done. A company may use this to their advantage by using it in commercials to attract consumer attention)
- Another important point about classical conditioned behaviors is that they are controlled by stimuli that occur before the behavior rather than after.
- behaviors influenced by classical conditioning are under the control of the automatic nervous system.
-operant conditioning is believed to by controlled by the skeletal nervous system.
-Another major difference is that, even though behaviors are elicited by stimuli that occur before the response, operant behaviors often occur because of the consequences that come after the behavior.
-Another difference between operant conditioning and classical conditioning, is that operant includes both positive and negative reinforcement that can control behaviors.
Discuss the concept of shaping, and explain why it is an essential part of many marketing conditioning strategies.
-shaping: an operant conditioning concept that involves arranging conditions that change the probabilities of certain behaviors.
-shaping is typically a positive reinforcement of desired behavior or of behaviors that must be performed before the desired response can be emitted.
-shaping is a very essential part of marketing conditioning strategies for a few reasons.
1) shaping can greatly increase the probability of a desired behavior, if carried out strategically. (For example, if a company offers a free trial to a group of potential consumers, they are increasingly the likelihood of those consumers coming in contact with their product. This would be increasing the chances of a desired behavior)
2) it can influence several stages in a purchase sequence. (For example, a marketer could use a shaping strategy such as free donut in order to get people into their donut shop. The marketer could then use more shaping by offering a 15% off coupon to those who come and get a free donut. This is a strategy to get people to buy donuts once they are in the store. In the two examples, a marketer used shaping to both bring customers in and encourage them to buy)
Discuss the three major uses of modeling in marketing strategy.
Modeling is when a consumer watches a model perform a behavior in order to learn about that behavior.
1) modeling helps observers acquire one or sometimes more new response patterns. These patterns are ones that did not previously exist. modeling helps develop information contact behaviors.
(For example, if a commercial may show a model calling a particular restaurant to order food. If the consumer was unaware of this process, they will now know how the procedure of ordering food is carried out)
2) modeling can be used to decrease or stop undesired behaviors.
(For example, if a commercial may show a family spending time together in a donut shop. If the commercial makes the donut shop very appealing, a consumer watching may desire to go to the donut shop. This will cause a consumer to go to the donut shop rather than another treat shop, which would be an undesired behavior)
3) modeling can cause response facilitation. This is a when a consumer is merely reminded of a behavior they already know how to do. Though they already know, the model could encourage them to engage in this activity.
(For example, if a commercial shows a model going to McDonald's for an ice cream cone, a consumer watching may be encouraged to do so. Even though this is a familiar behavior the consumer is reminded of that behavior.)
Discuss the three factors that increase the likelihood of vicarious learning.
1) certain model and modeled behavior characteristics can increase vicarious learning.
-Some common characteristics that businesses aim to achieve in their models is attractiveness and successfulness. Good-looking and celebrity models are very common. Model behavior is also important. A detailed and careful model is more likely to make an impact and encourage vicarious learning.
2) observer characteristics.
-Certain consumers will relate and learning more from different models due to their own different characteristics. For example, someone who has low-self esteem may be prone to learn more from attractive, confident models. Since the consumer may wish to be more like that, they will likely want to do what that model is doing. Another example would be someone with red hair. If they see a shampoo commercial with another redhead, they may be more likely to buy that shampoo since they see another redhead using that product.
3) characteristics of modeled consequences.
-Even though the consumer watching the commercial can't directly experience the consequences, they can observe the consequences of a behavior. For example, if a consumer watched a commercial advising people not to smoke, the consumer may see all the negative consequences of smoking. Though they don't experience those consequences, they can observe and realize that smoking is not healthy. Another example would be a commercial with a model eating ice cream. Though the consumer doesn't directly experience the ice cream, they can observe the model as they eat the ice cream. If the model is happy, they will assume that ice cream has positive consequences.
Provide one example of each of the seven types of sales promotions listed in the text. Discuss how many have influenced your consumer behavior? Identify your preferences and explain.
1) sampling - when a product is offered for free in order to encourage future purchases.
( Bath & Body Works where there are lotions and body spray samples customers can try. I like this because I can find the scent I like the best and then purchase it)
2) price deals - consist of discounts from the products regular price.
(a sign saying that the lotions in Bath & Body Works are all $10 off regular price. I like this strategy as well because if doesn't involve bringing in a physical coupon to receive a discount)
3) bonus packs - when a package contains more for the same price. In other words, it's just additional amount of the product.
(Bath & Body Works may have a package of lotions that come with a bonus container of lotion)
4) rebates and refunds- when a customer is given cash reimbursements after a purchase. This often occurs during large purchases such as cars or homes.
(consumer buying a Ford car in a dealership and then receiving a $50 rebate)
5) Sweepstakes and contests - when a consumer is entered into a drawing or competition to win a prize. Common prizes are cash and products.
(Bath & Body Works having a competition and asking consumers to come up with a creative name for a new lotion. The best name will win the contest and that winner may win a life-time supply of lotion)
6) Premiums - rewards or gifts that are given with the purchase of a product.
(consumer may be given a free lotion with every $50 purchase.)
7) coupons (most popular) used by consumers to get percentages of dollar amounts off a purchase.
(shop at Michael's, I use a 40% off any regular price item coupon.)
Discuss the various strategies designed to influence overt consumer behaviors.
1) affective strategy - designed to target consumer feelings, moods, and emotions. The overall goal is to change or influence a consumers affective responses.
2) cognitive strategies : targets consumer knowledge, meanings, and beliefs. The goal is to influence cognitive responses.
3) Behavioral strategies- targets consumers' overt behaviors and seeks to influence behavioral responses. For example, it focusses not on how consumers feel or think, but how they act or behave.
4) combined strategies - consists of a mix of any previously explained strategies. For example, a marketer may combine affective and behavioral strategies to create a combined strategy.
Discuss the concept of social marketing
Social marketing is known as the application of commercial marketing technologies to the analysis, planning, execution, and evaluation of programs. These programs are designed to change or influence voluntary behavior or a target audience. The programs are also designed to improve personal welfare and the welfare of the society as a whole. Unlike commercial marketing, the end goal of social marketing is to benefit the target market or society rather then the business itself. Social marketing can also be applied to individuals, households, target markets, or societies.
An example of social marketing would be a company hosting a town fair. The company would cover all the costs of the fair and give free admission to the people in the town. This would be beneficial to the society by providing free, fun activities. Though the main goal would be to benefit the town, it would also help promote the business. People attending the fair would see that the company hosted the free fair and they may even choose to purchase their products in the future.
Discuss the steps in developing consumer-behavior influence strategies.
1) measure current levels of consumer affect, cognition, and behavior.
A marketer needs to be familiar with consumer thoughts and feelings in order to create an effective strategy. For example, if a marketer knows how consumers feel about strawberry ice cream, they will better know how to market strawberry ice cream.
2) analyze consumers and markets.
Once marketers have collected data from consumers and markets, they need to analyze and interpret that data to get the most out of it. For example, a marketer might send out free samples in order to discover how a target market feels about that sample. Once they get the data on the free samples, they will analyze it to see the results.
3) select and implement influence strategies.
Influence strategies are used to influence consumer feeling, knowledge, or behaviors. Strategies can be either long-term or short-term. For example, a marketer may choose to use a short-term price deal in order to influence behavior and increase sales.
4) measure strategic effects.
For example, if a marketer used price deals, they may measure and see if that strategy increased sales. Some strategies may not be successful for reasons such as faulty objectives.
5) ask if the desired influenced occurred.
For example, if the marketer desired increased sales from a sales promotion, they will check and see if the consumers were influenced in the appropriate way.
6) evaluate for performance improvement.
Even if a sales promotion is successful and sales increase, a marketer may look for improvement in order to increase sales more drastically.
How do marketers measure overt consumer behaviors? Discuss and provide examples.
It is important for marketers to measure overt consumer behaviors in order to gauge success.
1) through feedback often in the form if consumer research data. For example, if a marketer uses a commercial attempting to influence consumer behaviors, they may then ask the target market for feedback. This may include a survey asking the consumer if the commercial led them to purchase a certain product.
2) through sales and market share information. For example, if a marketer used a commercial promoting a new microwave model, they may check their sales information. If the commercial was a success, it is likely that there were many sales of the new microwave model.
By evaluating these two sources, a marketer can measure success and can see where they can improve their strategies.