305 Exam Study Guide 1 PDF

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Marketing 305 Exam 1 Study Guide (Chapters 1-4) The exam will consist of 50 multiple-choice questions.] Chapter 1: Buying, Having & Being: An Introduction to Consumer Behavior (9 Questions) ♦ Consumers are different! How we divide them up (p. 8-13; project lecture notes on segmentation) 

Demographics – age, gender, family structure, social class and income, race and ethnicity, geography

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Lifestyles – Psychographics (the way we feel about ourselves, the things we value, the things we do in our spare time)

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Benefits Sought – all the benefits sought after by consumers

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Behavior/Usage – markets can be segmented by how often or how heavily consumers use a specific product o 80/20 principle = 80% of revenue generated by 20% of customers 

Light users (80%) – generate 20% revenue

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Heavy users (20%) – generate 80% of revenue

♦ Consumer Behavior is a Process (p. 7; Figure 1.1; lecture notes)

♦ All the World’s a Stage (types of relationships people might have with products, p.15-16)  

People often buy products not for what they do, but for what they mean Consumers can develop relationships with brands: o Self-Attachment o Interdependence o Nostalgic Attachment o Love

♦ Research methods (lecture notes—basic tools and uses) Tools 

Qualitative o Ethnography o In-Depth Interviews o Focus Groups o Projective Techniques

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Quantitative o Surveys o Data mining – tracking specific consumers’ buying habits and crafting products and messages tailored precisely to people’s wants o Experiments

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Both Qualitative and Quantitative o Observation o Video-mining – tracking real-time shopping data using technology that can analyze video images (typically using a hidden camera) o Online listening o Opinion panels o Cell phone tracking o Test markets

♦ Problem with self-report methods (lecture notes) 

Will they tell us the truth?

♦ Consumer Behavior as a Field of Study (p. 22-24, Figure 1.2)

Disciplinary Focus

Product Role

Experimental Psychology

Perception, learning, and memory processes

Clinical Psychology

Psychological adjustment

Microeconomics/Human Ecology

Allocation of individual or family resources

Social Psychology

Behavior of individuals as members of social groups

Sociology

Social institutions and group relationships

Macroeconomics

Consumers’ relations with the marketplace

Semiotics/Literary Criticism

Verbal and visual communication of meaning

Demography

Measurable characteristics of a population

History

Societal changes over time

Cultural Anthropology

Society’s beliefs and practices

♦ Two Perspectives on Consumer Research (Table 1.2—comparisons of positivist vs. interpretivist approaches; lecture notes) Positivist Vs. Interpretivist Approaches: Assumptions

Positivist Approach

Interpretivist Approach

Nature of reality Objective, tangible Single

Socially constructed Multiple

Goal

Prediction

Understanding

Knowledge granted

Time free Context-independent

Time-bound Context dependent

View of Causality

Existence of Real Causes

Multiple, simultaneous shaping events

Research Relationship

Separation between researcher and subject

Interactive, cooperative with researcher being part of phenomenon under study

Chapter 2: Consumer and Social Well-Being (13 Questions) ♦ Do marketers promise miracles? (p. 39-40) 

Advertising leads us to believe that products have magical properties

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The things we buy will transform our lives o We will be beautiful, successful, perhaps even live forever

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In this respect, advertising functions as mythology does in primitive societies: it provides simple, anxiety-reducing answers to complex problems

♦ Materialism (lecture notes on intergenerational influence) Materialism – the importance people attach to worldly possessions 

Intergenerational Influence

o Materialism as learned value from parents (sometimes inadvertent) o Warm and Supportive parents -> Material Rewards -> Materialism in Adulthood

♦ Consumerism (p. 44-46) 

Culture jamming – a strategy to disrupt efforts by the corporate world to dominate our cultural landscape o The movement believes that jamming will change the way information flows, the way institutions yield power, the way TV stations are run, and the way industries set their agendas

♦ Market Access (p. 50-51; lecture notes) 

Coping with or managing marketplace marginalization

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Shifting norms – once deviant practices becoming commonplace or fashionable

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Mobilizing for greater mainstream marketplace inclusion

♦ Sustainability and Environmental Stewardship (p. 51-55; lecture notes) The Conscientious Consumer Movement: a social movement that based around increased awareness of the impact of purchasing decisions on the environment and the consumers health and life in general. It is also concerned with the effects of media and advertising on consumers. 

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Triple Bottom-Line Orientation o Financial o Social o Environmental Is this a wide-spread shift or a trend among a small group?

♦ Product disposal (lecture notes)  

Strong product attachment = painful disposal process Divestment rituals: o Iconic transfer - taking photos of objects before selling them o Transition-place - putting items in an out-of-the-way location before disposing of them o Ritual cleansing - washing, ironing, and/or meticulously wrapping the item

♦ The Dark Side of Consumer Behavior (p. 56-61; lecture notes) 

Consumer terrorism

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Compulsive consumption

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Illegal activities

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Addictive consumption

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Consumed consumers

♦ Procter & Gamble (guest speaker) Insight - an observation of human behavior or attitude that can be translated into profitable business action. Not to be confused with a fact (ex. Consumers are choosing the competition over us in blinded tests) Strong insights trigger an obvious "aha" moment Observation vs. Insight  Market share is declining  On average, people take 3.5 doses per day when the recommended dosing is 5  Consumers under-dose the most during the evening  Our latest consumer survery shoes people are satisfied with new child-safety caps. The caps are not the problem

Innovation Process:  What are the fundamental elements of successful early-stage innovation? o Consumer (target market or trend) o Problem (tension) o Solution (believable and on equity) Writing an Innovation Brief:  Consumer o Who they are o What they do o Why they do it  Problem o Why it occurs o When it happens o How do people currently solve it Most product innovation sustains the status quo Tactics:    

Identify a human problem (not a business problem o Know your customer Fix value equation: Pricing, Distribution, Promotion, and Channels Reinforce biggest reason why people buy Expand innovation into new areas of category

Chapter 3: Perception (12 Questions) ♦ Sensory marketing (p. 77-85; lecture notes on visual stimuli) Sensory Marketing – where companies think carefully about the impact of sensatiions on our product experiences Augmented Reality – media that superimpose one or more digial layers of data, images, or video over a physical object Virtual Reality – driving integration between physical sensations and digital information

Trade Dress – color combinations come to be so strongly associated with an organization Sound symbolism – the process by which the way a word sounds influences our assumptions about what it describes and attributes, such as size Endowment Effect – encouraging shoppers to touch a product encourages them to imagine they own it Kansei Engineering – philosophy that translates customers’ feelings into design elements Visual Stimuli – which line is longer – horizontal or vertical? If you’re given two 24oz. glasses, you will pour more into the shorter, wider glass than the taller glass because you focus more on height than width

Scent:  

Odors create mood and promote memories: o Coffee = comfort, home Marketers use scents: o Inside products o In promotions (e.g., scratch'n sniff) o In store environments

Sound:  

Sound affects people's feelings and behaviors Mood Media uses sound and music to create mood o High tempo = more stimulation o Slower tempo = more relaxing

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Haptic senses - or "touch" - is the most basic of senses; we learn this before vision and smell Haptic senses affect product experience and judgment

Touch:

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♦ Stage 1: Exposure (p. 86-88, lecture notes on thresholds)   

Exposure occurs when a stimulus comes within range of someone's sensory receptors We can concentrate, ignore, or completely miss stimuli We can choose NOT to be exposed to some marketing messages

♦ Stage 2: Attention 

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The extent to which processing activity is devoted to a particular stimulus o Competition for our attention  3000-5000 ad info pieces per day Marketers need to break through the clutter

o How do marketers get our attention? (personal and stimulus selection factors, p. 93-95) Personal Selection:  Perceptual selection: people attend to only a small portion of the stimuli to which they are exposed  Personal selection factors: o Perceptual vigilance o Perceptual defense o Adaptation

♦ Stage 3: Interpretation (p. 95-102; lecture notes on stimulus organization, semiotics, hyperreality, perceptual maps; positioning) Stimulus Organization  We interpret sensations using others already in memory  Gestalt Principle: we derive meaning from the whole rather than from its parts  Explains how stimuli are organized: o Similarity: consumers group together objects that share similar physical characteristics o Closure: people perceive an incomplete picture as complete o Figure-ground: one part of the stimulus will dominate (the figure) while the other parts recede into the background (ground)

Semiotics:  

Semiotics is the correspondence between signs and symbols and their role in the assignment of meaning Marketing messages have three basic components:

o o o

Object: product that is the focus of the message Sign: sensory image that represents the intended meaning of the object Interpretation: meaning derived

 Hyperreality: process of making real what is initially simulation or hype What is experienced momentarily becomes the real… o Tourists visit the IMAX theater next to the Grand Canyon to watch it on film to "really experience it" o Simulated volcano in front of the Mirage Hotel o The "Forum" at Caesar's Palace that simulates a Roman marketplace o Fossil Rim in Texas that recreates an African Safari o Widespread "Disneyfication" and/or thematization of shopping malls

Perceptual Positioning:  Perceptual map: map of where brands are perceived in consumers' minds Writing Positioning Statements:  To (target segment and need) our (brand) is a (concept) that (point-of-difference)

Chapter 4: Learning and Memory (16 Questions) o

♦ Behavioral learning theories and marketing applications (p. 109-118, including Figure 4.1)

Behavioral Learning Theories:  Behavioral learning theories: assume that learning takes place as the result of responses to external events o Stimulus -> consumer -> response Types of Behavioral Learning Theories:  Classical conditioning o a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own  Instrumental conditioning (Operant conditioning)

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The individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes

Marketing Applications of Classical Conditioning:  Stimulus generalization: tendency for stimuli similar to a conditioned stimulus to evoke similar responses o Product line extensions (coke zero, diet coke) o Family branding o Look-alike packaging

♦ Role of memory in learning (lecture notes)  

Memory: acquiring information and storing it over time so that it will be available when needed External inputs -> encoding (information is placed in memory) -> Storage (information is retained in memory) -> Retrieval (information stored in memory is found as needed

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♦ Memory (p. 128-139) o How our brains encode information, memory systems (p. 129130; lecture notes on moving from short-term to long-term memory)

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Memory systems

 Types of memory (semantic, episodic, and implicit) (p. 129; lecture notes) o How our memories store information (p. 130133; lecture notes on associative networks, spreading activation, and levels of knowledge) o o o

Semantic memory: general-accumulated knowledge (e.g. vocabulary) Episodic memories: relate to specific events that are personally relevant Implicit memories (procedural): relate to skills one exercises automatically (e.g. driving a car, cooking a familiar recipe)

How is long-term memory organized? Levels of Knowledge  Associative Networks o Individual nodes = meaning concepts (concepts, feelings, events) o Two (or more) connected nodes = proposition (complex meaning) o Two or more propositions = schema (knowledge structure)  Schemas: organized collections of beliefs and feelings that a person has about objects, ideas, people, situations, etc.  Scripts: sequences of actions associated with objects, ideas, people, situations, etc.

Spreading Activation:  As one node is activated, other nodes associated with it also begin to be triggered  We store memories in different ways… o Brand-specific o Ad-specific o Brand identification

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Product category Evaluate reactions

♦ How associative networks influence retrieval of memories (lecture notes)

Stronger links are more accessible o Marketers try to strengthen links between brands and positive associations Spreading activation o Explains our seemingly random thoughts Responsible for false recall Can't retrieve when links fade Source amnesia o Source decays faster than message

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♦ What makes us forget? (p. 135-137)  Decay  Interference – retroactive vs. proactive...