Marketing 305 Ch 2 Decision Making & Consumer Behavior

Constructive processing
A thought process where we evaluate the effort we’ll need to make a particular choice and then tailor the amount of cognitive “effort” we expend to get the job done
Mental budget
Helps us to estimate what we will consume over time so that we can regulate what we do in the present
Self-regulation
A person’s deliberate efforts to change or maintain his actions over time
Counteractive construal
Exaggerating the negative aspects of behaviors that will impede the attainment of a goal as a strategy to avoid them and reach the goal
Involvement
A person’s perceived relevance of the object based on their inherent needs, values, and interests
Inertia
Describes consumption at the low end of involvement, where we make decisions out of habit b/c we lack the motivation to consider alternatives `
Cult products
Items that command fierce customer loyalty and devotion (Apple, Harley-Davidson)
Product involvement
A consumer’s level of interest in a particular product
Perceived risk
When a person believes there may be negative consequences if he or she chooses the wrong option
Brand loyalty
Repeat purchasing behavior that reflects a conscious decision to continue buying the same brand
Mass customization
Describes the personalization of products and services for individual customers at a mass-production price
Message involvement
Media vehicles possess different qualities that influence our motivation to pay attention to what they tell us
Narrative transportation
The result of a highly involving message where people become immersed in the storyline
Variety seeking
The desire to choose new alternatives over more familiar ones
Information-processing perspective
A view where people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision
Economics of information
A perspective that assumes that we collect just as much data as we need to make an informed decision
Problem recognition
Occurs when we experience a significant difference between our current state of affairs and some state we desire
Information search
The process by which we survey the environment for appropriate data to make a reasonable decision
Cybermediary
Describes a Web site or app that helps to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently
Intelligent agents
Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior in order to recommend new purchases
Long tail
The idea that we no longer need to rely solely on big hits (such as block-buster movies or best-selling books) to find profits; companies can also make money if they sell small amounts of items that only a few people want-if they sell enough different items
Evoked set
The alternatives a consumer knows about
Consideration set
The alternatives a consumer seriously considers
Knowledge structure
Refers to a set of beliefs and the way we organize these beliefs in our minds
Neuromarketing
Uses functional magnetic resonance imaging (or fMRI), a brain-scanning device that tracks blood flow as we perform mental tasks
Category exemplars
Brands that are particularly relevant examples of a broader classification
Evaluative criteria
The dimensions we use to judge the merits of competing options
Determinant attributes
The features we actually use to differentiate among our choices
Noncompensatory rule
A rule that means that if an option doesn’t suit us on one dimension, we just reject it out of hand and move on to something else rather than think about how it might meet our needs in other ways
Feature creep
The tendency of manufacturers to add layers of complexity to products that make them harder to understand and use
Expectancy disconfirmation model
States that we form beliefs about product performance based on prior experience with the product and/or communications about the product that imply certain level of quality
Postpurchase evaluation
This occurs when we experience the product or service we selected and decide whether it meets (or maybe even exceeds) our expectations
Customer satisfaction/dissatisfaction (CS/D)
Our overall reactions to a product after we’ve bought it
Purchase momentum
Occurs when our initial impulse purchases actually increase the likelihood that we will buy even more (instead of less as we satisfy our needs)
Habitual decision making
Describes the choices we make with little or no conscious effort
Priming
Cues in the environment that make us more likely to react in a certain way even though we’re unaware of these influences
Nudge
A subtle change in a consumer’s environment that can change behavior
Default bias
Where we are more likely to comply with a requirement than to make the effort not to comply
Maximizing solution
The extensive cognitive decision strategies we use when we want to identify the best possible choice
Satisficing solution
A decision strategy that aims to yield an adequate solution (rather than the best solution) in order to reduce the costs of the decision-making process
Bounded rationality
A concept in behavioral economics that states since we rarely have the resources (especially the time) to weigh every possible factor into a decision, we settle for a solution that is just good enough
Framing
A concept in behavioral economics that the way a problem is posed to consumers (especially in terms of gains or losses) influences the decision they make
Behavioral economics
The study of the behavioral determinants of economic decisions
Mental accounting
A principle that states that decisions are influenced by the way a problem is posed
Prospect theory
Describes how people make choices; it defines utility in terms of gains and losses
Heuristics
The mental rules of thumb that lead to a speedy decision
Covariation
Our associations among events that may or may not actually influence one another
Ethnocentrism
Refers to the tendency to prefer products (or people) of one’s own culture to those of other countries
Emotional oracle effect
People who trusted their feelings were able to predict future events better than those who did not
Affect
The way a consumer feels about an attitude object
Lovemark
A passionate commitment to one brand
Sentiment analysis (opinion mining)
A process that scours the social media universe to collect and analyze the words people use when they describe a specific product or company
Word-phrase dictionary (library)
In sentiment analysis, a library that codes data so that the program can scan the text to identify whether the words in the dictionary appear