Term
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Definition
Problem Recognition
Information Search
Evaluation of alternatives
Product choice
Post purchase evaluation |
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Term
| Extended, Limited, Routine/habitual problem solving |
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Definition
• Extended Problem solving requires high involvement
o When your product IS NOT being selected
• Limited Problem solving requires a medium involvement
• Habitual or routine Problem solving requires little to no involvement
o When your product IS being selected |
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Term
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Definition
Question of did I make the right purchases?
• Alleviate in 3 ways
o Focus on the positive
o Focus on why the choice was bad
o Acknowledge that the choice was bad |
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Term
| Internal influences: Perception |
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Definition
| people select and interpret information from outside world. Exposure: stimulus must be within sensory reception to notice. Perceptual selection: consumers will pay attention to some stimulus and not others. Interpretation- consumers assign meaning to stimuli |
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Term
| Internal influences: Motivation |
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Definition
| is an internal state that drives us to satisfy needs |
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Term
| Internal influences: Learning |
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Definition
| process by which experience(s) leads to changes in knowledge, attitudes, and/or behavior. |
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Term
| Internal influences: Attitudes |
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Definition
An attitude is a lasting evaluation of a person, object, or issue
3 components of attitudes (1) affect (feelings), (2) cognition (beliefs), and (3) behavior |
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Term
| Internal influences: Personality |
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Definition
| is the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment |
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Term
| Internal influences: Lifestyle |
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Definition
| A lifestyle is a pattern of living that determines how people choose to spend their time, money, energy and reflects their values, tastes, and preferences |
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Term
| Internal influences: Self |
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Definition
| consumers have a picture of themselves and seek products or brands that exemplify this depiction |
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Term
| Group Influences: Cultural |
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Definition
| values, beliefs, customs, and tastes valued by group of people |
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Term
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Definition
| overall rank of people in society measures: occupation, income, wealth, education, common tastes in clothing, décor style. family |
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Term
| Group Influences: Rituals |
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Definition
| symbolic activities consisting of a series of steps occurring in a fixed sequence and repeated over time. e.g. brushing teeth, sing nation anthem before sports… and artifacts-with every ritual comes artifacts (products) that needed to perform the ritual or enhance performance of ritual. |
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Term
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Definition
person who influences others attitudes or behaviors.
Valuable information sources because:
• knowledgeable about product category,
• among first to buy new products,
• likely to tell both positive and negative information about product performance. |
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Term
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Definition
| is the segmentation tool used to group consumers according to AIOs. |
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Term
| AIOs (attitudes, interests and opinons) |
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Definition
| measures of consumer activities, interests and opinions used to place consumers into dimensions. |
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Term
| Maslow’s hierarchy of needs |
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Definition
• Self Actualization – self fulfillment, enriching experiences (hobbies, travel, education)
• Ego Needs - Prestige, status, accomplishment (cars, furniture, country clubs, wine)
• Belongingness - Love, friendship, acceptance by others (clothing, grooming, clubs)
• Safety - Security, shelter, protection (insurance, alarms, retirement invs.)
• Physiological - Water, sleep, food (medicines, staple items) |
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Term
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Definition
developed from hemispherical lateralization aka split brain.
Right: nonverbal pictorial information emotional, impulsive, intuitive.
Left: cognitive activities e.g. reading, speaking, rational, active realistic |
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Term
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Definition
TV is right side brain activity
TV considered a passive activity
Passive learning occurs through repeated exposure |
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Term
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Definition
Newspapers, magazines and internet
Print advertising is processed |
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Term
| Hemispheral lateralization |
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Definition
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Term
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Definition
| is the tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned. For example, if a child has been conditioned to fear a stuffed white rabbit, the child will exhibit fear of objects similar to the conditioned stimulus. |
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Term
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Definition
| A product very similar to one that is already produced by other companies and already on the market. ex: Vitamin water looks similar to gatorade |
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Term
Halo Effect• learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on it’s own but will cause a similar response over time because of it’s association with the first stimulus.
E.g Pavlov's dogs (salivating)
*me too products, halo effect |
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Definition
| all products of that brand must be good or bad |
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Term
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Definition
learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on it’s own but will cause a similar response over time because of it’s association with the first stimulus.
E.g Pavlov's dogs (salivating)
*me too products, halo effect |
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Term
| Substantive variation/Cosmetic variations |
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Definition
Substantive variation – change in message
Cosmetic variations – change in look |
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Term
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Definition
| also instrumental learning. Consequences of the behavior again. Positive negative reinforcement (+behavior) punishment (-behavior). Reinforcement of product consumption e.g. punchcards, mileplans |
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Term
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Definition
| must decide when to offer rewards (product needs to be high in quality every time). Total (continuous) reinforcement- free after dinner drink, tortilla treats. Fixed ratio reinforcement- every nth time there is a payout e.g. AK miles, Safeway |
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Term
| Evoked set (consideration set) |
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Definition
| set of brands YOU will consider buying |
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Term
| Elaboration Likelihood Model |
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Definition
Central route to persuasion= high involvement
Peripheral route to persuasion= low involvement music etc.
ELM→ Feelings→ peripheral route-people having fun
ELM→ Beliefs → central route- facts info, how healthy ingredients |
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Term
| Enculturation/acculturation |
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Definition
Enculturation- learning from own culture
Acculturation- learning from another culture |
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Term
| Social influences: Authority |
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Definition
| We listen to authority figures, Milgrim video of shocking patients |
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Term
| Social influences: Reciprocity |
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Definition
You scratch my back ill scratch yours, obligation to return the favor
E.g Costco Samples -> Obligation to buy, Dwight buying bagels for the office |
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Term
| Social influences: Consistency and Commitment |
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Definition
people like consistency, if you say you're going to do it then it better happen
Foot in the door (start small and work your way up) |
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Term
| Social influences: Social proof |
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Definition
o Pluralistic ignorance (girl stabbed in NY)
o Works under uncertainty
o Doing things that others are doing, seek similarity |
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Term
| Social influences: Scarcity |
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Definition
o Joy is in possession not consumption
o Makes us want to have it as a consumer because of limited quantity. |
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Term
| Social influences: Liking |
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Definition
o Association principal
o Sales persons that we like, we are more likely to buy from them |
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Term
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Definition
| ask someone for a huge favor expecting them to say no way!, then come back with a second smaller request in hopes of getting what you want |
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Term
| Memory, resource allocation |
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Definition
Increased retention when associated with attributes already in our brain.
Attention- resource allocation
Cocktail phenomenon- hear name at party, commit resources to hear that and ignore the conversation you already are having |
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Term
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Definition
| idea that there is a bottleneck in information that we receive. Only limited information gets to our short term memory through the bottleneck. |
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Term
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Definition
Sensory memory- temporary storage of things from our senses e.g. Cinnabon
Short term memory- stores limited period of time
Long memory- information stored for lengthy periods. –more effort it takes to process the more likely it will go to LTM |
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Term
| Associated network/spreading activation |
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Definition
| if you prime/activate something, it will help you recall info |
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Term
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Definition
| look at how others respond to what we are doing. Consumers pick product that are consistent to who we think we are. |
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Term
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Definition
| a person will act differently when surrounded by different people e.g. friends vs. work. -Ideal self –actual self. Marketers should focus their products within the context of particular “self” |
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Term
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Definition
| consumers have a picture of themselves and seek products or brands that exemplify this depiction. |
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Term
| Characteristics of B2B purchases |
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Definition
- Multiple buyers (w/in one organization)
- Geographic concentrated
- Small # of customers
- Large scale of purchases |
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Term
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Definition
• Group of people who buy stuff/make purchasing decisions
o Initiator – identify the issue
o User – who actually needs the products
o Gate keeper – control the flow of info
o Influencer – affects the buying decision
o Decider – who makes the final decision
o Buyer – execute the decision |
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Term
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Definition
| demand for products does not change because of increases/ decreases in price * at some point if price gets too high product can become elastic (Gas prices) |
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Term
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Definition
| changing consumer demand can create large increases/ decreases in business demand. Causes of fluctuating demand: Life expectancy (how long product lasts), company’s inventory policy |
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Term
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Definition
| demand for 2 or more goods used together to create product, sales of one product partially dependent on availability of another product. (ex. red cups and ping pong balls) |
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Term
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Definition
| purchase products for the production of other goods and services that they in turn sell to make a profit |
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Term
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Definition
| buy finished goods for the purpose of reselling, renting, or leasing to consumers and other businesses |
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Term
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Definition
| government markets, not-for-profit |
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Term
| NAICS: (North American Industry Classification System) |
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Definition
-every business w/ license has a #, identifies different types of businesses
-helps producers narrow focus for reselling options
-ex. from class: producer makes shoe strings and wants to find a place that will sell them |
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Term
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Definition
a buying situation in which business buyers make routine purchases that require minimal decision making
e.g. doesn’t think twice about just buying the same product every time I run low.
(busch light) |
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Term
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Definition
buying situation classification used by business buyers to categorize
previously made purchase that involves some change and that requires limited decision making |
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Term
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Definition
| new b2b purchase that is complex or risky and that requires extensive decision making |
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Term
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Definition
| practice in which firms outsource marketing activities to a community of users (e.g. companies find that it’s both cost-efficient and productive to call on outsiders from around the world to solve problems their own scientists can’t) |
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Term
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Definition
| when businesses use outside vendors to provide goods/services that otherwise might be supplied in-house |
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Term
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Definition
A product is everything a customer receives – the basic benefits, the physical product and its packaging, and the “extras” that come with the product
Bundle of attributes |
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Term
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Definition
low priced, widely available and purchased frequently with a
minimum of comparison and effort |
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Term
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Definition
| basic or necessary items that are available almost everywhere |
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Term
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Definition
| a product people often buy on the spur of the moment |
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Term
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Definition
| products we purchase when we’re in dire need |
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Term
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Definition
| goods/services which consumers spend considerable time and effort gathering info and comparing alternatives before purchasing |
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Term
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Definition
| goods/services that has unique characteristics and is important to the buyer and for which he/she will devote significant effort to acquire |
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Term
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Definition
| goods/services which a consumer doesn’t know about until they need it or it is brought to their attention |
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Term
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Definition
| products that provide benefits over a long period of time (e.g. cars, furniture) |
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Term
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Definition
| products that provide benefits for a short time because they are consumed or no longer useful (newspapers or food) |
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Term
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Definition
| benefits products will provide to the customer |
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Term
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Definition
| physical good or deliver service |
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Term
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Definition
| actual product plus supporting features *warranty |
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Term
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Definition
how the use of a product spreads throughout a population
Tipping Point: when a product’s sales spike from a slow climb to an unprecedented new level (often accompanied by a steep price decline) |
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Term
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Definition
a modification to an existing product that sets one brand
apart from its competitors |
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Term
| Dynamically Continuous Innovations |
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Definition
| a change in an existing product that requires a moderate amount of learning or behavior change |
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Term
| Discontinuous Innovations |
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Definition
a totally new product that creates major changes in the
way we live |
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Term
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Definition
| process in which customer begins to buy and use a new good, service or idea |
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Term
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Definition
-Introduction Stage: no profits because the company is recovering R&D costs
-Growth Stage: profits increase and peak
-Maturity Stage: sales peak; profit margins narrow
-Decline Stage: market shrinks: sales fall; profits fall |
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Term
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Definition
| testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter into |
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Term
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Definition
| marketers can evaluate and improve the marketing program, if test indicates failure it saves the firm millions of dollars by “pulling the plug” |
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Term
| Test markets Disadvantages |
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Definition
| extremely expensive, gives the competition a free look at the new product |
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Term
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Definition
| legal term for a brand name, brand mark, or trade character; trademarks legally registered by a government for exclusive use in that country |
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Term
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Definition
| measures a brand’s success. –the differential effect of brand knowledge on consumer response to the marketing of a brand |
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Term
| Keller’s model of brand knowledge |
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Definition
explains how what consumers know about a brand leads to success. Consumer based equity is the differential effect of brand knowledge on consumer response to the marketing of a brand.
According to Keller develop brand that consumers are familiar with and have some favorable strong and unique brand memory associations |
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Term
| Branding strategies: Manufacture Brand |
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Definition
multi product (blanket/family) brand: we use a brand name to associate a variety of products (Toro, Heinz)
multi brand (individual) brand made by same company (Tide, Cheer) made by same company P&G |
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Term
| Branding strategies: Dealer/private label/strore brand |
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Definition
| E.g Safeway private selection |
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Term
| Branding strategies: Generic |
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Definition
| plain label, black and white |
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Term
| Branding strategies: Licensed brand |
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Definition
| e.g. Donald Duck orange juice, sports teams logo on products |
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Term
| Branding strategies: Co-branding |
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Definition
| e.g. Ford and Eddie Bauer. Ingredient branding- Ben & Jerry w/ Reese’s |
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Term
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Definition
| short film made up of trademarks |
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