Marketing 305 Exam 1 (Chapters 1-4)

alternate reality games
an application that blends online and offline clues and encourages players to collaborate to solve a puzzle
asynchronous interactions
message posts that don’t require all participants to respond immediately
B2C e-commerce
businesses selling to consumers through electronic marketing
Big Data
the collection and analysis of extremely large data sets to identify patterns of behavior in a group of consumers
C2C e-commerce
consumer to consumer activity through the internet
consumer
a person who identifies a need or desire, makes a purchase, and/or disposes of the product
consumer behavior
Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
consumption communities
Web groups where members share views and product recommendations online
culture of participation
the driving philosophy behind social media that includes belief in democracy; the ability to freely interact with other people, companies, and organizations; open access to venues that allow users to share content from simple comments to reviews, ratings, photos, stories, and more; and the power to build on the content of others from your own unique point of view
database marketing
tracking consumers’ buying habits very closely, and then crafting products and messages to tailored precisely to people’s wants and needs based on this information
demographics
observable measurments of a population’s characteristics such as age, sex, income, location, education, and religion
digital natives
young people who have grown up with computers and mobile technology; multitaskers with cell phones, music downloads, and instant messaging on the Internet; people who are comfortable communicating online and by text and IM rather than by voice
drive
the desire to satisfy a biological need in order to reduce physiological arousal
drive theory
concept that focuses on biological needs that produce unpleasant states of arousal
80/20 rule
A marketing rule of thumb that 20 percent of purchasers account for 80 percent of a product’s sales.
exchange
a transaction in which two or more organizations or people give and receive something of value
expectancy theory
the perspective that behavior is largely “pulled” by expectations of achieving desirable outcomes, or positive incentives rather than “pushed” from within
goal
a consumer’s desired end state
heavy users
Consumers who purchase a product or service much more frequently than others
Hierarchy of Needs
a framework that specifies different levels of motives that depends upon the consumer’s personal situation
horizontal revolution
a fundamental change in how consumers communicate via social media, whereby information doesn’t just flow from big companies and governments; information flows across people as well
interpretivism
As opposed to the dominant positivist perspective on consumer behavior, instead stresses the importance of symbolic, subjective experience and the idea that meaning is in the mind of the person rather than existing “out there” in the objective world
market segmentation strategies
targeting a brand only to specific groups of consumers who share well-defined and relevant characteristics
megacity
a metropolitan area with a total population of more than 10 million people
motivation
an internal state that activates goal-oriented behavior
paradigm
A widely accepted view or model of phenomena being studied; the perspective that regards people as rational information processors is currently the dominant paradigm, although this approach is now being challenged by a new wave of research that emphasizes the frequently subjective nature of consumer decision-making
pastiche
mixture of images
popular culture
the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the masses
positivism
a research perspective that relies on principles of the “scientific method” and assumes that a single reality exists; events in the world can be objectively measured; and the causes of behavior can be identified, manipulated, and predicted
productivity orientation
a continual striving to use time constructively
relationship marketing
the strategic perspective that stresses the long term, human side of buyer-seller interactions
role theory
the perspective that much of consumer behavior resembles actions in a play
social media
the set of technologies that enable users to create content and share it with a large number of others
synchronous interactions
a conversation that requires participants to respond in real-time
user-generated content
consumers voice their opinions about products, brands, and companies on blogs, podcasts, and social networking sites such as Facebook and Twitter, and film their own commercials that they post on sites such as YouTube
virtual worlds
immersive 3-D virtual environments such as Second Life
want
the particular form of consumption chosen to satisfy a need
Web 2.0
the current version of the Internet as a social, interactive medium from its original roots as a form of one-way transmission from producers to consumers
affect
the way a consumer feels about an attitude object
behavioral economics
the study of the behavioral determinants of economic decisions
bounded rationality
good enough perspective on decision making because we don’t have the time to weigh every factor so we settle for a decent solution
brand loyalty
repeat purchasing behavior that reflects a conscious decision to continue buying the same brand
category examplers
brands that are particularly relevant examples of a broader classification
compensatory decision rules
a set of rules that allows information about attributes of competing products to be averaged in some way; poor standing on one attribute can potentially be offset by good standing on another
consideration set
the products a consumer actually deliberates about choosing
constructive processing
a thought process in which a person evaluates the effort he or she will need to make a particular choice, and then tailors the amount of cognitive “effort” expended to make this decision
consumer satisfaction/dissatisfaction (CS/D)
the overall attitude a person has about a product after it has been purchased
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
country of origin
original country from which a product is produced; it can be an important piece of information in the decision-making process
covariation
assumed associations among events that may or may not actually influence one another
cult products
items that command fierce consumer loyalty and devotion
cybermediary
intermediary that helps to filter and organize online market information so that consumers can identify and evaluate alternatives more efficiently
default bias
a tendency in decision making that makes it more likely for people to comply with a requirement than to make the effort not to comply
determinant attributes
the attributes actually used to differentiate among choices
economies of information
perspective in which advertising is an important source of consumer information emphasizing the economic cost of the time spent searching for products
emotional oracle effect
a finding reported by researchers that people who trust their feelings are able to predict future events better than those who do not
ethnocentrism
the belief in the superiority of one’s own country’s practices and products
evaluative criteria
the dimensions used by consumers to compare competing product alternatives
evoked set
those products already in memory plus those prominent in the retail environment that are actively considered during a consumer’s choice process
expectancy disconfirmation model
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 a certain level of quality; when something performs the way we thought it would, we may not think much about it. If it fails to live up to expectations, this may cause negative feelings. On the other hand, we are satisfied if performance exceeds our initial expectation
feature creep
the tendency of manufacturers to add layers of complexity to products that make them harder to understand and use
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
habitual decision making
choices made with little or no conscious effort
heuristics
the mental rules of thumb that lead to a speedy decision
inertia
the process whereby purchase decisions are made out of habit because the consumer lacks the motivation to consider alternatives
information search
the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision
information processing perspective
people calmly and carefully integrate as much information as possible with what they already know about the product (weight pros and neg to arrive at a satisfactory decision)
intelligent agents
software programs that learn from past user behavior in order to recommend new purchases
involvement
the motivation to process product-related information
knowledge structure
organized system of concepts relating to brands, stores, and other concepts
long tail
states that we no longer need to rely solely on big hits (such as block-buster movies or best selling books) to find profits; instead, companies can also make money if they sell small amounts of items that only a few people want – if they sell enough different items
lovemark
a passionate commitment to a brand
mass customization
the personalization of products and services for individual customers at a mass-production price
maximizing solution
the extensive cognitive decision strategies we use when we want to identify the best possible choice
mental accounting
principle that states that decisions are influenced by the way a problem is posed
mental budget
consumer’s preset expectations of how much they intend to spend on a shopping trip
message involvement
properties of the medium and message content that influence a person’s degree of engagement with the message
narrative transportation
the result of a highly involving message where people become immersed in the storyline
neuromarketing
a new technique that uses a brain scanning device called functional magnetic resonance imaging (fMRI) that tracks blood flow as people perform mental tasks; scientists know that specific regions of the brain light up in these scans to show increased blood flows when a person recognizes a face, hears a song, makes a decision, senses deception, and so on; therefore, they are now trying to harness this technology to measure consumers’ reactions to movie trailers, choices about automobiles, the appeal of a pretty face, and loyalty to specific brands
noncompensatory rule
decision shortcuts a consumer makes when a product with a low standing on one attribute cannot make up for this position by being better on another attribute
nudge
a subtle change in a person’s environment that results in a change in behavior
perceived risk
belief that a product has potentially negative consequences
post purchase evaluation
the final stage of consumer decision-making when we experience the product or service we selected
priming
properties of a stimulus that evoke a schema that leads us to compare the stimulus to other similar ones we encountered in the past
problem recognition
the process that occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired or ideal state; this recognition initiates the decision-making process
product involvement
a consumer’s level of interest in a particular item
prospect theory
a descriptive model of how people make choices
purchase momentum
initial impulses to buy in order to satisfy our needs increase the likelihood that we will buy even more
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
self-regulation
a person’s deliberate efforts to change or maintain his actions over time
sentiment analysis
a process (sometimes also called opinion mining) that scours the social media universe to collect and analyze the words people use when they describe a specific product or company
situational involvement
the extent to which a shopper is engaged with a store, Web site, or a location where people consume a product or service
spectacles
a marketing message that takes the form of a public performance
variety seeking
the desire to choose new alternatives over more familiar ones
word-phrase dictionary
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
acculturation
the process of learning the beliefs and behaviors endorsed by another culture
advergaming
online games merged with interactive advertisements that let companies target specific types of consumers
antifestival
an event that distorts the symbols associated with other holidays
art product
a creation viewed primarily as an object of aesthetic contemplation without any functional value
binary opposition
a defining structural characteristics of many myths in which two opposing ends of some dimension are represented (good versus evil, nature versus technology)
collecting
the systematic acquisition of a particular object or set of objects
consumer style
a pattern of behaviors, attitudes, and opinions that influences all of a person’s consumption activities – including attitudes toward advertising, preferred channels of information and purchases, brand loyalty, and price consciousness
contamination
when a place or object takes on sacred qualities because of its association with another sacred person or event
conventions
norms that regulate how we conduct our everyday lives
cooptation
a cultural process by which the original meanings of a product or other symbol associated with a subculture are modified by members of mainstream culture
core values
common general values held by a culture
craft product
a creation valued because of the beauty with which it performs some function; this type of product tends to follow a formula that permits rapid production, and it is easier to understand than an art product
creolization
foreign influences are absorbed and integrated with local meanings
crescive norms
unspoken rules that govern social behavior
cultural formula
a sequence of media events in which certain roles and props tend to occur consistently
cultural gatekeepers
individuals who are responsible for determining the types of messages and symbolism to which members of mass culture are exposed
cultural selection
the process by which some alternatives are selected over others by a cultural gatekeepers
culture
the values, ethics, rituals, traditions, material objects, and services produced or valued by the members of society
culture production system (CMS)
the set of individuals and organizations responsible for creating and marketing a cultural product
custom
a norm that controls basic behaviors, such as division of labor in a household
desacrilization
the process that occurs when a sacred item or symbol is removed from its special place, or is duplicated in mass quantities, and becomes profane as a result
ecology
the way members of a culture adapt to their physical habitat
emic perspective
an approach to studying for (or marketing to) cultures that stresses the unique aspects of each culture
enculturation
the process of learning the beliefs and behaviors endorsed by one’s own culture
etic perspective
an approach to studying (or marketing to) cultures that stresses commonalities across cultures
fortress brands
brands that consumers closely link to rituals; this makes it unlikely they will be replaced
gift-giving ritual
the events involved in the selection, presentation, acceptance, and interpretation of the gift
global consumer culture
a culture in which people around the world are united through their common devotion to brand name consumer goods, movie stars, celebrities, and leisure activities
grooming rituals
sequences of behavior that aid in the transition from the private self to the public self and back again
hoarding
unsystematic acquisition of objects (in contrast to collecting)
Hofstede Dimensions of National Culture
a measurement system that scores a country in terms of its standing on six dimensions so that users can compare and contrast values
ideology
the mental characteristics of a people and the way they relate to their environment and social groups
instrumental values
goals endorsed because they are needed to achieve desired end states or terminal values
laddering
a technique for uncovering consumers’ associations between specific attributes and general values
list of values (LOV) scale
identifies consumer segments based on the values members endorse and relates each value to differences in consumption behaviors
means-end chain model
assumes that people link very specific product attributes (indirectly) to terminal values such as freedom or safety
more
a custom with strong moral overtone
myth
a story containing symbolic elements that expresses the shared emotions and ideals of a culture
objectification
when we attribute sacred qualities to mundane items
Plinking
act of embedding a product or service link in a video
pretailer
an e-commerce site that provides exclusive styles by prodding manufacturers to produce runway pieces they wouldn’t otherwise make to sell in stores
product placement
the process of obtaining exposure for a product by arranging for it to be inserted into a movie, television show, or some other medium
profane consumption
the process of consuming objects and events that are ordinary or of the everyday world
reality engineering
the process whereby elements of popular culture are appropriated by marketers and become integrated into marketing strategies
reciprocity norm
a culturally learned obligation to return the gesture of a gift with one of equal value
rites of pasage
sacred times marked by a change in social status
ritual
a set of multiple, symbolic behaviors that occur in a fixed sequence and that tend to be repeated periodically
ritual artifacts
items (consumer goods) used in the performance of rituals
sacrilization
a process that occurs when ordinary objects, events, or people take on sacred meaning to a culture or to specific groups within a culture
sacred consumption
the process of consuming objects and events that are set apart from normal life and treated with some degree of respect or awe
social structures
the way members of a culture maintain an orderly social life
terminal values
end states desired by members of culture
value
a belief that some condition is preferable to its opposite
value system
a culture’s ranking of the relative importance of values
abandoned products
grocery items that shoppers buy but never use
anticonsumption
the actions taken by consumers involving the deliberate defacement or mutilation of products
bioterrorism
a strategy to disrupt the nation’s food supply with the aim of creating economic havoc
botnets
a set of computers that are penetrated by malicious software known as malware that allows an external agent to control their actions
business ethics
rules of conduct that guide actions in the marketplace
cause marketing
a strategy that align company or brand with a cause to generate business and societal benefits
compulsive consumption
the process of repetitive, often excessive, shopping used to relieve tension, anxiety, depression, or boredom
conscientious consumerism
a new value that combines a focus on personal health with a concern for global health
consumed consumers
those people who are used or exploited, whether willingly or not, for commercial gain in the marketplace
consumer addiction
a physiological and/or psychological dependency on products or services
consumerspace
marketing environment where customers act as partners with companies to decide what the marketplace will offer
corporate social responsibility (CSR)
processes that encourage the organization to make a positive impact on the various stakeholders in its community including consumers, employees, and the environment
corrective advertising
messages on organization releases (voluntarily or not) that inform consumers of previous messages that were inaccurate or misleading
counterfeiting
companies or individuals sell fake versions of real products
culture jamming
strategies that attempt to disrupt or satirize messages from corporations
curation
a source such as a store or a celebrity selects a set of products to simplify shoppers’ decisions
cyberbullying
when one or more people post malicious comments online about someone else in a coordinated effort to harass him or her
cyberterrorism
deliberate disruption of digital networks to accomplish political, social, or financial objectives
focus groups
small set of consumers try out a new product while being observed by company personnel
food desert
a geographic area where residents are unable to obtain adequate food and other products to maintain a healthy existence
functionally illiterate
a person whose reading skills are not adequate to carry out everyday tasks
gemba
Japanese term for the one true source of information
green marketing
a marketing strategy involving an emphasis on protecting the natural environment
greenwashing
inflated claims about a product’s environmental benefit
gripe sites
Web sites that consumers create to share frustrations about bad experiences with companies
identity theft
the unauthorized use of personal information
lateral cycling
a process in which already-purchased objects are sold to others or exchanged for other items
locational privacy
the extent to which a person’s activities and movements in the physical world are tracked by his or her phones
LOHAS
LOHAS is an acronym for Lifestyle of Health and Sustainability, a market segment (mainly in the US and in Western Europe) focused on health and fitness, the environment, personal development, sustainable living, and social justice. Sinus Sociovision estimates that 20% of German consumers can be regarded as Lohas
market access
the extent to which a consumer has the ability to find and purchase goods and services
materialism
the importance consumers attach to worldly possessions
media literacy
a consumer’s ability to access, analyze, evaluate, and communicate information
Phantom Vibration Syndrome
the tendency to habitually reach for your cell phone because you feel it vibrating, even if it is off or you are not even wearing it at the time
phishing
internet scams where people receive fraudulent emails that ask them to supply account information
product disposal
choices people make regarding how to get rid of items once they no longer are of value to them
provenance
the origin of a product and a preference for “authentic” items
real-time bidding
an electronic trading system that sells ad space on the Web pages people click on at the very moment they visit them
recommerce
the practice of trading or reselling used possessions in the underground economy rather than purchasing new items from retailers
red market
the global marketplace for body parts
serial wardrobers
shoppers who buy an outfit, wear it once, and return it
sharing sites
e-commerce sites that allow users to share, exchange, and rent goods in a local setting
shrinkage
the loss of money or inventory from shoplifting and/or employee theft
social marketing
the promotion of causes and ideas (social products), such as energy conservation, charities, and population control
social media addiction
dependency on interaction with social networking platforms to the extent that signs of withdrawal appear if the person is unable to connect
sustainability
an emphasis on creating and maintaining the conditions under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic and other requirements of present and future generations
total quality management (TQM)
management and engineering procedures aimed at reducing errors and increasing quality; based on Japanese practices
transitional economies
a country that is adapting from a controlled, centralized economy to a free market system
transformative consumer research (TCR)
promotes research projects that include the goal of helping people or bringing about social change
triple bottom-line orientation
business strategies that strive to maximize financial, social, and environmental return
underground economy
secondary markets (such as flea markets) where transactions are not officially recorded