What are the 6 sources of power?
referent, information, legitimate, expert, reward, coercive
Referent Power
power that comes from influence over others
Information Power
access to and control over important information
Legitimate Power
gained through having authority in a situation
Expert Power
influence based on special skills or knowledge
Reward Power
Compliance achieved based on the ability to distribute rewards that others view as valuable
Coercive Power
having influence because of social/physical intimidation
Subcultures
small groups of people with shared attitudes, beliefs, and values
semiotics
study of signs and their meanings
Consumer Behavior
the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
Demographics
statistics that measure observable aspects of a population
What are some demographic segments?
Age, gender, family structure, social class/income, race/ethnicity, geography, lifestyles
Utilitarian
a desire to achieve some functional or practical benefit
hedonic
an experiential need, involving emotional responses or fantasies
Diversification
developing new products for new markets
Standardization
developing standardized products marketed worldwide w/ a standardized marketing mix
Adaptation
think locally, act locally. Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction
Aculturation
movement and adaptation to a country's cultural environment by a person from another country
Deethnicization
when a product we associate with a specific ethnic group detaches itself from its roots and appeals to other groups
place-based subculture
People tend to be like those who live in the same areas, types of homes, and types of neighborhoods.
Geodemography
analytical techniques that combine data on consumer expenditures and other socioeconomic factors with geographic information about the areas in which people live, in order to identify consumers who share common consumption patterns
Types of Segmentation Methods
demographic, psychographic, behavior, benefit
geographic segmentation
segmenting the world into geographic subgroups
3 basic criteria for assessing market potential
-Current size of the segment and anticipated growth potential
-Potential competition
-Compatibility with company's overall objectives and the feasibility of successfully reaching the target audience
Concentrated Global Marketing
Niche marketing
Single segment of global market
Look for global depth rather than national breadth
Differentiated Global Marketing
Multi-segment targeting
Two or more distinct markets
Wider market coverage
Trade Dress
color combinations that become strongly associated with a corporation
audio watermarking
a technique where composers and producers weave a distinctive sound/motif into a piece of music that sticks in people's minds over time
sound symbolism
Phenomenon by which certain sounds are evocative of a particular meaning.
phenomes
The basic sounds that make up any language
endowment effect
the tendency of people to be unwilling to sell a good they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it
Haptic
touch-related sensations
Stages of Perception
exposure, attention, interpretation
The minimum difference between two stimuli
Just noticeable difference
Principle states that people tend to perceive an incomplete picture as complete
closure principle
What are the 3 stages of the memory process
encoding, storage, retrieval
What 3 filter types prevent clear perception and reception of marketing stimuli
perceptual vigilance, perceptual defense, adaptation
perceptual vigilance
consumers are more likely to be aware of stimuli that relate to their current needs
perceptual defense
the tendency for consumers to avoid processing stimuli that are threatening to them
Adaptation/habituation
When we no longer pay attention to a stimulus after repeated exposures
Legal document that gives an investor the exclusive right to make, use, and sell an invention for a specified period of time
Patent
Trademark
distinct mark, motto, device, or emblem used to distinguish it from competing products
What establishes ownership of a written, recorded, performed, or filmed creative work?
Copyright
Weber's Law
the stronger the stimulus, the greater a change must be for people to notice a change
Pavlov's Dog experiment with the bell signaling feeding time demonstrated what?
Classical conditioning
Diffusion Theory
The mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase
What is the order of diffusion theory?
Awareness, interest, evaluation, trial, adoption
Characteristics of innovation
relative advantage, compatibility, complexity, divisibility, communicability
Gestalt Psychology
people interpret meaning from a set of stimuli rather than from an individual stimulus
Closure
people perceive an incomplete picture as complete
figure-ground
one stimulus will dominate (the figure) while the other parts recede into the background (ground)
What are the 3 types of motivational conflict?
approach-approach, approach-avoidance, avoidance-avoidance
What are the 5 types of social influence that affect the likelihood of conformity
-cultural pressures
-fear of deviance
-commitment
-group size, unanimity and expertise
-susceptibility to interpersonal influence
Unauthorized copying and production of a product
counterfeiting
Think Locally, Act Globally
basing a products design/feel to the preference of local areas around the world
Tendency for people to marry within their social class
homogamy
What kinds of memories are likely to become part of a person's long term memory
episodic
Civil Law
A legal system based on a written code of laws
Common Law
a system of law based on precedent and customs
spiritual-therapeutic model
organizations that encourage behavioral changes such as weight loss that are loosely based on religious principles
Product Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
Factors that affect stimulus
size, color, position, novelty
Sovereignty
supreme and independent political authority
Associative Counterfeit/Imitation
product name differs slightly from a well-known brand
piracy
the unauthorized use or reproduction of copyrighted work
Licensing
contractual agreement where a licensor allows a liceensee to use a patent, trademark, trade secret, tech, and other intangible assets in return for royalty payments or some form of compensation
Hufstede's Cultural Typology
1. individualism/collectivism
2. power distance
3. Uncertainty avoidance
4. Achievement/Nurturing
4 ways to reduce cultural myopia
1. define problem/goal in terms of home country cultural traits
2. Define the problem in terms of host-country cultural traits
3. Isolate the self-reference criterion influence and examine it
4. Redefine the problem w/o the Self-reference influence and so
social stratification
a system by which a society ranks categories of people in a hierarchy
2 Major components of social class
1. occupational prestige
2. Income
progressive learning model
assumes that people gradually learn a new culture as they increasingly come into contact with it