Exam 2 Study Guide PDF

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Vocab Credence claims: ad claims that the consumer cannot independently verify for themselves so must trust the seller Cross-cultural analysis: comparing similarities and diffs in behavioral and physical aspects of culture Cued recall: retrieval of memory with the help of cues Cultural artifacts: material components of a culture Cultural empathy: ability to understand without judgement other cultures Culture: the ideas, customs, and social behaviour of a particular people or society Customer-centricity: focus every resource of firm on serving and pleasing customers Customer intimacy: detailed understanding and focus on customers’ needs, lifestyles, and behaviors in order to create deep cultural connection with them Customer lifetime value (CLV): value to company of a customer over the whole time the customer interacts with company Cutoff: restriction or requirement for acceptable performance on a product attribute Data mining: creation of databases of names for developing continuous communications and relationship with customers Day-after recall (DARC) measure: assesses consumers’ ability to recall advertised brand 24 hrs after being exposed to an ad Decay theory: memories grow weaker with passage of time Demographics: size, structure, and distribution of population Desired image: image that company seeks to create in marketplace for its product Determinant attributes: features or characteristics that determine which brand/store consumers choose Differential threshold: threshold reflecting smallest change in stimulus intensity that will be noticed Diffusion: process by which an innovation is communicated through certain channels over time among members of a social system Direct marketing: strategies marketers use to reach consumers somewhere other than a store Direct selling: any form of face-to-face contact btwn salesperson and customer away from a fixed retail location Discontinuous innovation: act of introducing an entirely new product that significantly alters consumers’ behavior patterns and lifestyles Discretionary time: time during which consumers are not constrained by economic, legal, moral, or physical compulsion or obligation Disposing: how consumers get rid of products and packaging Dissatisfaction: negative post-consumption evaluation that occurs when consumption experience doesnt meet expectations Dissociative group: groups that indiv doesn’t want to be associated with Dominance: primary type of emotional response representing feelings of being in control Dual coding: says info can be stored in both semantic and visual forms Dyadic exchanges: exchange of resources btwn 2 indivs that influence these indivs’ behaviors/beliefs

Dynamically continuous innovation: development of new products that are different from previously available products but that do not strikingly change buying or usage patterns Early adopters: opinion leaders and role models; a person who starts using a product or technology as soon as it becomes available Early majority: majority group of population which (after innovators and early adopters but before late majority and laggards) tries new ideas, processes, goods and services ● Deliberate extensively before buying new product Economic demographics: econ characteristics of nation’s population Elaboration: degree of integration btwn stimulus and existing knowledge Elimination by aspects strategy: consumer self imposes cutoff Emotional advertising appeals: ethos Emotional elements: brand characteristics that create emotional connection btwn customer and brand Endorsements: celebrity lending their name to product w/out being expert in the area Ethnography: description of peoples and cultures with their customs, habits, and mutual differences THROUGH OBSERVATION ● Shadowing, behavioral mapping, consumer journey, camera journals, extreme user interviews, storytelling, unfocus groups Evaluative criteria: standards and specifications used to compare Expectancy disconfirmation model: satisfaction depends on comparison of pre-purchase expectations w/ consumption outcomes Expectations: beliefs about future Experience claims: advertising claims that can be verified following product consumption Experimentation: attempts to understand cause-effect relationships through trials Expert: spokesperson w/ unique info/skills to help consumers make better buying decisions Exposure: 1st stage of info processing -- physical proximity to stimulus activates our senses Expressive roles: support of other family members in decision making process and expression of family’s aesthetic or emotional needs Extended family: immediate family + others such as grandparents and cousins Extended problem solving: more complex problem solving that influences consumers’ actions External research: collecting info from one’s environment External search set: choice alternatives that consumers gather info about during pre-purchase search Exurbs: areas beyond suburbs at which consumption may occur and at which pop growth is rapidly increasing Family: people related to you Family life cycle: stages that a family passes through and that change them over time Family marketing: based on relationships btwn family members and their roles in the family Family of orientation: family your born into Family of procreation: family created by marriage Feelings: affective state or reaction that can be +/- and from which attitudes develop Fertility rate: number of live births

Field experiment: experiment occurring in a natural setting (ex: home or store) Focus groups: groups consisting of 8-12 people involved in a discussion led by a moderator skilled in persuading consumers to discuss as subject thoroughly Forgetting: failure to retrieve something from memory Formal groups: social aggregations characterized by a defined structure and a known list of members and requirements for membership Free recall: recall measure that does not use any retrieval cues Fully planned purchase: brand and product are chosen in advance Partially Planned purchase: intent to buy the product exists but brand choice is deferred until shopping Unplanned purchase: both product and brand are chosen at point of sale Functional elements: characteristics of brand that solve consumer´s problem “Funnel” search strategy: begin internet search with generic terms then refine search with focusing words Gain-frame messages: emphasize what is attained by following message´s recommendation Generational change: younger generations (“leading” generation) gradually replace older customs set by older generations Generic need recognition: need for an entire product category is stimulated Geodemography: socioeconomic factors affecting consumption and purchase Habitual decision making: decision to buy based on past purchase; LEAST complex decision process Habituation: stimulus becomes so familiar/ordinary that it loses its attention-getting ability Haptic information: info acquired by touch Household: all persons who occupy a housing unit Household life cycle: series of stages that a household passes through and that change it over time Hypermarket: incorporates breakthrough technology in handling materials from warehouseoperating profile; provides warehouse feel for customers and strong price appeal Image advertising: using visual components and words to help consumers form expectations about future experiences with particular product/organization/store Image analysis: examines current brand associations that exist in market Impulse buying: unplanned buying that occurs when customer unexpectedly experiences sudden, powerful urge to buy something now. Inbound telemarketing: toll-free number to place orders directly Incidental learning: learning without intent to do so Income: money from wages, salaries, welfare, interest Inferential belief: using info about one thing to form beliefs about something else Informal groups: less structure than formal groups; usually based on friendship or common interest Information advertising: provide details about products, prices, hours of store operation, locations, etc -- influences purchasing decision informational advertising appeals: type of ad appeal that attempts to influence consumer’s belief about advertised product

Informational influence: accepting recommendations or usage by others as to make product or brand decisions In-home observation: getting inside ppl’s homes to examine exactly how products are consumed Information processing: retrieving, processing, and storing information Innovation: any idea or product perceived by potential adopter to be new Innovativeness: degree to which indiv adopts an innovation earlier than other people Innovators: first consumer group to adopt products Instrumental roles: functional or econ roles involving finance, performance, and other functions performed by group members Integrated marketing communications (IMC): systematic, cross-organizational marketing communication process that is customer-centric, data driven, technically anchored, and branding effective Intentional learning: deliberate learning w/ intent to remember Intentions: subjective judgements by indivs about how they will behave in future Interface theory: proposes that chances of retrieving a particular piece of info becomes smaller as interference from other info becomes larger Intermarket segmentation: identification of group of customers that are similar in a variety of characteristics that transcend geographic boundaries Internal search: scanning and retrieval of decision-relevant knowledge from memory Interview bias: potential for interviewer to affect responses of the interviewee Involvement: degree to which an object or behavior is personally relevant or of interest, evoked by a stimulus within a specific situation Isolation: avoiding clutter and noise in advertising to eliminate other objects that may compete for attention Knowledge gaps: absence of info in an indivs memory

Chapter 5 Define store image and explain why it is important as a concept for retail management. Choose one retailer and evaluate its image and how that image is portrayed in its advertising. Store image: consumers’ overall perception of a store, which they rely on when choosing a store ● Location (perceived and real) ● Services offered ● Depth/breadth/quality of assortment ● Physical store attributes ● Price ● Store clientele ● Ads and promotion ● point-of -purchase displays ● Sales personnel ● Consumer logistics Many contend that interactive electronic media will revolutionize consumer buying patterns. What is your opinion? What advantages are offered? Will traditional retail shopping become obsolete? Types:

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E-Theater: playing games, shows, concerts on in store TV systems d-Pop (digital point of purchase): 1+ digital plat-panel displays that communicated through moving text, images, video, sound effects. Computer-Enhanced Merchandising: computers dispay Digital Self-Service: self checkouts and kiosks

How might the relationship between time budgets and economic budgets affect the marketing strategy of a major retailer? The money an individual earns, the more valuable their time is ● as econ budget ↑, time budget ↓ What are some of the trends affecting time budgets for most Americans? How do you think these trends will be changing in the future? Time budget has three parts: Paid time: work Non discretionary time: physical obligation (sleeping, eating), social obligation (increases with urbanization), and moral obligation ● As income ↑, so do physical and social obligations Discretionary time: leisure time ● Create an IMC strategy for a specific brand of clothing. What promotional elements would you include, and what would bethe look and feel and message?

Chapter 6 In the chapter, we discussed how one rice manufacturer discovered that many of its customers switched to a lower-priced competitor when using the rice as an ingredient rather than as a side dish. What suggestions do you have for this manufacturer concerning how it could encourage consumers to buy its brand when using rice as an ingredient. Consider the company who seeks to increase consumption of its product. What options are available to the company for achieving this objective? Satisfaction may depend on consumers’ expectations of product performance and the feelings experienced during consumption. How important do you believe each of these factors might be in determining satisfaction with the following products: scissors, an amusement ride, vitamin pills. Satisfaction lowers consumers’ price sensitivity. A business is interested in thoroughly understanding the opinions held by its customers following product consumption. Given this objective, what suggestions do you have

about what should be examined? Why are consumers’ expectations important?

Chapter 7 Analyze this statement: Maturity markets are growing in number very rapidly, but they are of little interest to marketers because they have little money compared with younger markets. How do you reconcile the belief that India represents an attractive market when reports indicate such a low per-capita GNP? Clearly distinguish between the following terms: Lifestyles: patterns in which people live and spend time and money Psychographics: opertational technique to measure lifestyles; provides quaant measures and can be used w/ large samples (AIO measures): measure operational form of lifestyles ● Activities, Interests, Opinions Personality: consistent responses to environmental stimuli Values: Describe the trait-factor theory of personality and assess its importance in past and future marketing research. Trait-factor Theory: an indiv’s personality is composed of pre dispositional attributes called traits ● Traits watched by analysts: risk taking, self-consciousness, need for cognition ● Personality traits, personal concerns, life stories How might personal values be used to segment markets for financial services? Could similar approaches be used in less-developed countries as well as industrialized markets?

Chapter 8 Why is it important for companies to understand consumer motivation? Beyond understanding consumer motivation, what else does a company need to know to fully appreciate the reasons that consumers buy specific products and brands? What is Maslow’s hierarchy of needs? How do differences in need priorities influence consumer behaviors? Some suggest that it is important to distinguish between need and want. From this

perspective, a need is something we must have, and a want represents something we desire but can live without. Do you think this is a meaningful distinction? Why or why not? It has been suggested that products represent “symbols for sale.? What does this mean to you?...