Chapter 1: Compare and contrast the concepts of consumption and consumer behavior.
Consumer behavior is the search for value of goods or services.
Consumption behavior is the transformation of goods or services into value
Chapter 1: Explain why consumers get treated differently in different types of exchange environments.
There are two reasons:
1. There is no competition for the firm.
2. There is no need for repeat service.
Example: The DMV.
Chapter 1: Describe two common interpretive orientations in the study of consumer behavior.
Phenomenology: The study of what the experience as the consumer is like.
Ethnography: The study of the past in order to understand the consumer.
Chapter 2: Define consumer value. Compare and contrast utilitarian and hedonic value.
Definition: A personal assessment of net worth gained from an activity of object. It is the ultimate goal of the consumer to find value.
Utilitarian: Helps the consumer solve problems and accomplish tasks.
Hedonic: The immediate gratification that comes from an experience.
They differ in two ways:
1. Hedonic value is an end in and of itself, and utilitarian value is a means to and end.
2. Hedonic is emotional, utilitarian is not.
Chapter 2: Define market segmentation, and explain how it is a marketplace condition.
Its the separation of a market into groups based on the different demand curves.
It is a condition because there may be many segments in one market, but very few in another.
Chapter 2: Describe the Consumer Value Framework including its basic components.
It is a theory that determines the value that is associated with consumption. It involves a lot of decision making, both internal and external.
Chapter 3: Explain the JND concept and how it can be applied in marketing practice.
It represents how much stronger one stimulus is to another so that it is apparent that two nodes are not the same.
There are four implications for marketing:
1. Pricing – Small prices differences do not matter to consumers. Therefore, prices increases should be small in order not to be seen badly, and prices decreases should be large enough to be noticed.
2. Quantity – Small differences in quantity go unnoticed.
3. Quality – Small improvements in quality go unnoticed, therefore they need to be substantial enough.
4. Add-on Purchases – A small additional purchase tacked onto a large one may not be seen as increased spending.
Chapter 3: Compare and contrast implicit and explicit memory.
Implicit memory: Memory for things we do not intend to remember. Example: Product placement in a TV show.
Explicit memory: Memory for things we intend to remember. Example: Studying for an exam.
Chapter 3: Explain the difference between punishers and negative reinforcers in shaping behavior. Give an example of how each can be used in marketing.
Punishers represent stimuli that decrease repeat behavior. Example: Consumer getting arrested for shoplifting.
Negative reinforcement is the removal of bad stimuli to encourage specific behavior. Example: Having bad breath if not using a specific mouth wash.