cb marketing exam 1 key terms !! chapter 1-6

consumption
process by which goods, services, or ideas are used and transformed into value
consumption process
need
want
exchange
costs and benefits
reaction
value
consumer behavior as a field of study
study of consumers as they go about the consumption process; the science of studying how consumers seek value in an effort to address real needs
relationship marketing
activites based on the belief that the firms performance is enhanced through repeated business
interpretive research
approach the seeks to explain the inner meanings and motivations associated with specific consumption experiences
quantitative research
approach that addresses questions about consumer behavior using numerical measurement and analysis tools
internal influences
things that go on inside of the mind and heart of the consumer
external influences
social and cultural aspects of life as a consumer
utilitarian value
value derived from a product that helps the consumer with some task
hedonic value
value derived from the immediate gratification that comes from some activity
marketing strategy
way a company goes about creating value for customers
total value concept
business practice wherein companies operate with the understanding that products provide value in multiple ways
market segmentation
separation of a market into groups based on the different demand curves associated with each group
elasticity
reflects how sensitive a consumer is to change in some product characteristics
product positioning
way a product is perceived by a consumer
perceptual map
tool used to depict graphically the positioning of competing products
ideal points
combination of product characteristics that provide the most value to an individual consumer or market segment
customer lifetime value
approximate worth of a customer to a company in economic terms; overall profitability of an individual consumer
exposure
process of bringing some stimulus within proximity of a consumer so that the consumer can sense it with one of the five human senses
attention
purposeful allocation of information-processing capacity toward developing an understanding of some stimulus
assimilation
state that results when a stimulus has characteristics such that consumers steadily recognize it as belonging to some specific category
accommodation
state that results when a stimulus shares some but not all of the characteristics that would lead it to fit neatly in an existing category and consumers must process exceptions to rules about the category
contrast
state that results when a stimulus does not share enough in common with existing categories to allow categorization
mere exposure effect
effect that leads consumer to prefer a stimulus to which they’ve previously been exposed
product placement
products that have been placed conspicuously in movies or television shows
behaviorists approach to learning
theory of learning that focuses on changes in behavior due to association without great concern for the cognitive mechanics of the learning process
information process (or cognitive) perspective learning
perspective that focuses on the cognitive processes associated with comprehension and how these precipitate behavioral changes
classical conditioning
change in behavior that occurs simply through associating some stimulus with another stimulus that naturally causes some reaction; a type of unintentional learning
instrumental conditioning
type of learning in which a behavioral response can be conditioned through reinforcement – either punishment or rewards associated with good or bad behavior
message congruity
extent to which a message in internally consistent and fits surrounding information
figure
object that is intended to capture a persons attention
ground
background in a message
figure ground distinction
notion that each message can be separated into the focal point and the background
adaptation level
level of a stimulus to which a consumer has become accustomed
information intensity
amount if information available for a consumer to process within a given environment
framing
is a phenomenon in which the meaning of something is influenced by the information environment
priming
cognitive process in which context or environment activates concepts and frames thoughts and therefore affects not value and meaning
multiple store theory of memory
theory that explains memory as utilizing three different storage areas within the human brain; sensory, workbench, and long term
sensory memory
area in memory where a consumer stores things exposed to one of the 5 senses
iconic storage
storage of visual information in sensory memory and the idea that things are stored with a one to one representation of reality
echoic storage
storage of auditory information is in sensory memory
workbench memory
storage area in the memory system where information is stored while it is being processed and encoded for later recall
encoding
process by which information is transferred from workbench memory to long term memory to permanent storage
retrieval
process by which information is transferred back into workbench memory for additional processing when needed
repetition
simple mechanism in which a thought is kept alive in short term memory by mentally repeating the thought
dual coding
coding that occurs when two different sensory traces are available to remember something
meaningful coding
coding that occurs when information from long term memory is placed on the workbench and attached to the information on the workbench in a way that the information can be recalled and used later
chunking
process of grouping stimuli by meaning so that multiple stimuli can become one memory unit`
product differentiation
marketplace condition in which consumers do not view all competing products as identical to one another
semantic memory
type of coding where a certain stimuli are converted to meaning that can be expressed verbally
episodic memory
memory for past events in one life
long term
repository for all information a person has encountered
perception
consumers awareness and interpretation of reality
value framework
illustrates factors that shape consumption related behaviors and ultimately determine the value associated with consumption
self congruency theory
much of consumer behavior can be explained by the congruence of a consumer self concept with the image of typical users of a focal product
self concept types
thoughts and feelings an individual has about themselves
brand personalities
collection of human characteristics that can be associated with a brand
demographics
observable, statistical aspects of population such as age, gender, and income
psychographics
quantitative investigation of consumer lifestyles
self monitoring
tendency for consumers to observe and control behavior in a way that agrees with social cues and influence
competitiveness
tendency to strive to be better than others
need for cognition
degree to which consumers enjoy in engaging in effortful cognitive information processing
innovativeness
degree to which an individual is open to new ideas and tends to be relatively early in adopting new products, services, experiences
materialism
extent to which material goods have importance in a consumers life
value consciousness
the extent to which consumers tend to maximize what they receive from a transaction as compared to what they give
idiographic perspective
focuses on understanding the complexity of each individual consumer
nomothetic perspective
focuses on particular traits that exist across a number of people
trait approach to personality
focus on specific consumers traits as motivators of various consumer behaviors
super ego
works against the ID by motivating behavior that matches the expectations and norms of society
ego
attempts to balance the struggle between the super ego and the ID
ID
focuses on the pleasure-seeking motives and immediate gratification
psychoanalytic approach to personality
advocated by Sigmund Freud.

suggests personality results from a struggle between the inner motives and societal pressure to follow rules and expectations

flow
extremely high emotional involvement in which a consumer is engrossed in an activity
associative network
network of mental pathways linking knowledge within memory; sometimes referred to as semantic network
elaboration
extent to which a consumer continues processing a message even after an initial understanding is achieved
schema
cognitive representation that gives a specific type of person meaning
homeostasis
state of equilibrium wherein the body naturally reacts in a way so as to maintain a constant, normal bloodstream
regulatory flows
puts forward the notion that consumers orient their behavior either though a prevention or promotion focus
Maslows hierarchy of needs
a theory of human motivation which describes consumers as addressing a finite set of prioritized needs
involvement
the personal relevance toward, or interest in a particular product
cognitive appraisal theory
school of thought proposing that specific types of appraisal thoughts can be linked to specific types of emotions
utilitarian motivation
drive to acquire products that can be used to accomplish something
hedonic motivation
drive to experience something emotionally gratifying
disciplines related to consumer behavior
CB research and marketing research overlap with each other more than they do with any other discipline.

CB shares much in common with psychological research approaches and shared theories.

sociology
focuses on the study of groups of people within a society. this has relevance for consumer behavior because consumption often takes place within group settings or is affected by group behavior
anthropology
has contributed to consumer bheavior for research by allowing researchers to interpret the relationships between consumers and the things they purchase, the products they own, and the activities in which they participate
neuroscience
the study of the central nervous system inducing the brain, and CB share interest in how the consumers brain functions during the consumption process
firm orientation
profitable firms are usually market oriented
consumer orientation
is way of doing business in which the actions and decision making of the institution prioritize customer value and satisfaction above all other concerns
market orientation
an organizational culture that embodies the importance of creating value for customers among all employees

*in addition to understanding customers a market orientation stresses the need to monitor and understand competitor actions in the marketplace and the need to communicate information about customers and competitors*

stakeholder marketing
under this orientation firms recognize that more than just the buyer and seller are involved in the marketing process
ways of doing business
undifferentiated marketing

production orientation

differentiated marketers

undifferentiated marketing
the same basic product is offered to all customers
production orientation
used by undifferentiated marketers where innovation is geared towards making the production process as efficient and economical as possible

emphasizes serving customer while incurring minimal costs

differentiated marketers
serve multiple market segments, each with a unique offering

the emphasis here is on matching a product with a segment

CB’s role in society
the things that people buy and consume end up determining the type of society in which we live. things like customs, manners, and rituals all involve consumption — value producing activities

Cb creates society and serves an important source of input to public policy in a free society

example: publics opinion and acceptance of smoking has drastically changed. use of mobile phones as well

CB and personal growth
we face many important decisions as consumers.

for individuals decisions that lead to high levels of debt do not seem wise, as bankruptcy, financial stress, and lower self esteem often result. decisions about household budget is very relevant to CB

how to make better decisions as a consumer
1. consequences associated with poor budget allocation
2. the role of emotions in consumer decision making
3. avenues for seeking redress for unsatisfactory purchases
4. social influences on decision making, including peer pressure
5. the effect of the environment on consumer behavior
technology and communication in CB
-a consumer now has 24/7 access to purchasing almost any product.
-the internet has made distance a nonissue.
– the consumer is able to shop on their own schedule.
– the entire world is now truly the market for consumers in free countries
comprehension
occurs when consumers attempt to derive meaning from information they receive. marketers hope that consumers comprehend and interpret information in the intended way but that is not always the case
3 factors of comprehension
1. internal factors
2. cognitive and affective elements- includes both thoughts and feelings
3. signal theory: explains ways in which communication convey meaning beyond obvious interpretation
subliminal
a subliminal message is one presented below the threshold of perception in other words if you are aware of it then it is *NOT* subliminal
attention factors
1. intensity of stimuli- a consumer is likely to pay more attention to a strong stimuli … vivid colors, loud sounds

2. contrast- black and white image in a colorful magazine, period of silence in an otherwise noisy environment

3. movement- electronic billboards, moving items, flashing lights or signs

4. surprising stimuli- unexpected stimuli, like replacing a mannequin with an actual person

5. size of stimuli- larger items gain more attention than smaller ones

6. involvement- personal relevance a consumer feels towards a product

automaticity
ability to do something without thinking, automatic response pattern or habit
supraliminial
existing above the threshold of consciousness
confabulation
a disturbance of memory, distorted or misinterpreted memories about oneself or the world
information processing model
exposure
attention
comprehension
elaboration
receiver characteristics
1. intelligence/ability
2. prior knowledge
3. involvement
4. familiarity/habituation
5. expectations
6. physical limits
7. brain dominance
intelligence/ability
marketers should communicate information pertaining to product warning , usage instructions, etc in a way that people with low intelligence can understand
prior knowledge
the human brain matches incoming info with preexisting knowledge. prior knowledge provides resources or a way through which other stimuli can be comprehended even consumers with high knowledge must lack prior knowledge to understand certain things
involvement
marketers began to use simpler summary info on their labels
familiarity/habituation
consumers tend to like the familiar
dostats
russian word that means “acquiring things with great difficulty”
expectations
what consumers expect to experience has an impact on their comprehension of the environment
physical limits
consumers may have a limit in their ability to hear, see, smell, taste, and think

example: deaf or color blind

brain dominance
right and left brain dominant. consumers may respond better to images or verbal processes
metaphor
“you’re in good hands allstate”

metaphors can increase ones ability to remember an ad

spreading activation
way cognitive activation spreads from one concept (or node) to another

marketers want their brand names to cause cognitive activation to spread to favorable

measuring emotion
autonomic measures

self report measures

autonomic measures
recording responses based on automatic reactions such as facial expressions, or a physical response like sweating

-more intrusive

self report measure
less intrusive

require consumers to recall their affect state from a recent experience or to state the affect they are feeling at a given point in time

involves a questionnaire

means end hierarchy
hierarchy of goals that represents potential identities of the actions necessary for the person to reach his or her goal