MKTG 450 Final

consumer behavior

study of PROCESSES involved when individuals or groups select/purchase/use, or dispose of products/services/ideas/experiences to satisfy needs and desires

Ways to understand consumers

Usage, demographics (age, gender, income, social class/education, race & ethnicity), behavior

Culture jamming

anti-ad against large corps, ex: McDonalds- weight, I'm gainin' it

social marketing

promoting positive behavior, not intended for profit

CSR (corp social responsibility)

ex: Patagonia donating to environmental causes

business ethics

guide actions in marketplace, standards that people judge what is right and wrong

cause marketing

for-profit partners with a non-profit for a specific cause

phishing

fraudulent emails

botnets

malware that hijacks computers

green marketing

the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

green washing

the exaggerated or false marketing of a product, good, or service as environmentally friendly; makes it hard to tell what is real

Market access limits

disabilities, foods deserts (live 1 or more miles from grocery store), lack of literacy (media/functional)

bioterrorism

day to day good that hurts environment

consumed consumers

using people for a commercial gain, ex: prostitution, selling an organ

serial wardrobers

people who buy an outfit, wear it once, and return it

anti-consumption

the deliberate defacement of products

Sound symbolism

the process by which the way a word sounds influences our assumptions about what it describes

audio watermarking

weave a sound/motif into a piece of music, ex: Coke using distinct sound in an ad

just noticeable difference

the minimal change in a stimulus that can barely be detected

Weber's Law

the stronger the initial stimulus, the greater a change must be for us to notice it

embeds

tiny figures inserted into magazine advertising

perceptual vigilance

consumers are very selective to what they pay attention to, we are more likely to be aware of stimuli that relate to our current needs; already interested so are going to pay attention

perceptual defense

people tune it out no matter what bc not interested

hedonic value

as income increases and amount of products that people accumulate goes up, consumers increasingly want to buy things that have this value

Stages of Perception

exposure, attention, interpretation

Exposure

when you first see something

Subliminal perception

a stimulus below the level of the consumer's awareness, do NOT work

endowment effect

people imagining owning the item, touch for 30 sec increases attachment

perceptual selection

people pay attention to only a small portion of the stimuli they are exposed to

adaptation

the degree that consumers continue to notice a stimulus over time

Gestalt

people interpret meaning in totality, not from individual pieces

Semiotic

study of signs and their interpretation; stages- object, interpretant, sign

Semiotic: sign

icon (resembles product- ex: insta camera on app logo), index(shares some property), symbol (conventional or culturally agreed upon association- ex: yawn equals tired)

Learning

a relatively permanent change in behavior due to experience

classical conditioning

pavlov's dogs (ringing bell with food assoc.), Jim with Dwight (computer sound with altoid assoc.)

instrumental conditioning

more long term, indiv. learns to perform behaviors to get positive results without seeing immediate reinforcement

Stimulus generalization: Halo Effect

ex: athlete is good at basketball, so must be good/trustworthy at diaper commercial; other examples- family branding, product line extension, look-alike products

stimulus generalization

the tendency to respond to a stimulus that is only SIMILAR to the original conditioned stimulus with the conditioned response

fixed interval reinforcement

after specified period of time, ex: black friday sale, thanksgiving sale every year

variable interval reinforcement

time that passes varies, can use secret shopper for this (to see customer service)

fixed ratio reinforcement

after specific number of times/rewards

variable ratio reinforcement

after unknown number of times/rewards

interval/ratio

time passing, number of rewards

Conditions for Learning to happen

1. attention
2. retention
3. production process
4. motivation
5. observational learning

Stages of Cognitive Development

limited (0 to 6), cued (6 to 12), strategic (12 and older)

multiple intelligence theory

intelligence is measured by assessing learning and problem-solving abilities through varied formats; not just in STEM; mktg effect- can sell dance, art and not just math things

encoding

how we mentally program

sensory meaning

associations with a product or brand that connect with things already in memory or senses

episodic memory

events are personally relevant

narratives

descriptions of past events that have the basic structure of a story

observational learning includes:

modeling (mimicking other's behaviors- social default)

Von Restorff effect

novelty improves recall

highlighting effect

order of learning influences recall

recognition

the ability to match a piece of information or a stimulus to a stored image or fact; shown something and try to remember it

recall

A measure of memory in which the person must retrieve information learned earlier, as on a fill-in-the-blank test; not shown anything and try to remember it

drive

degree of arousal

Drive Theory

focuses on biological needs that produce unpleasant states of arousal, ex: hunger, thirst

Drive Theory: homeostasis

balanced state of Drive Theory

What makes us forget: Decay

structural changes that learning makes, goes away

Decay: interference

additional info we learn (about same thing) displaces old info

Decay: retroactive

new learning displaces old

Decay: proactive

old learning prevents new learning

telescoping

inaccurate recall of time, ex: event happened a long time ago but it seems like yesterday

Motivation

occurs when a need is aroused

belief system (propositions)

combined nodes; system that describes how a company creates value, helps employees understand management's vision, communicates company core values, and inspires employees to live by those values

schema

combined propositions; a concept or framework that organizes and interprets information

script

expected sequence, ex: service scripts at Starbucks

attention

connects sensory memory to short-term memory

elaborative rehearsal

connecting new things to other things in the long term memory; short-term to long-term