Principles of Marketing REVIEW FOR EXAM 2 Please note that these slides are not an exhaustive list of all that we have discussed in the class so far These slides are a collection of some of the key points around which our class discussion has centered Marketing Environment Environmental Scanning External Internal Macro Micro SWOT Analysis Scenario Planning Global Vision Global external environment Modes of Global Entry Global marketing mix Standardization vs Customization Debate Consumer Decision Making Module 1 Five Stage Model Level of Involvement Factors influencing involvement Type of Buying Behavior Routine Limited vs Extensive Influence Factors Social Reference groups Opinion Leaders etc Cultural Individual Gender Demographics etc Psychological Perceptions Motivation Learning Beliefs Attitudes Preference Model Airline Example Compensatory vs Non compensatory Satisficing vs Maximizing Consumer Decision Making Module 2 Learn about the Standard or Normative Models of Consumer Behavior See examples of how the Standard Model is wrong at least sometimes eg NY Rainy day Cabs Supply Explore why consumers deviate from the Standard Model Start to develop more realistic Descriptive Models of Consumer Behavior Prospect Theory Implications Prospect Theory Diminishing Sensitivity Risk Aversion for Gains Risk Seeking for Losses Loss Aversion Losses Matter More Implications Hedonic Editing Integrate losses Segregate gains Framing Effects gain loss differences Heuristics Biases The Dual Self Model Animal vs Rider Characteristics of the two systems What causes people to shift from one to the other Cognitive Optical Illusions Loss Aversion Endowment Effect the Status Quo Bias Endowment Effect buyer seller differences Loss Aversion Status Quo Bias The Power of Default Options Organ Donor etc CB Lecture Videos Video 1 Loss Aversion Endowment Effect Reference Point Video 2 Scale Effect flossing example Momentary Mindset Effects Decoy Effects Asymmetric Dominance CB Lecture Videos Video 3 Relativity Relative Comparisons Psychological Effect of Monetary Amounts Video 4 Pain of Paying Video 5 Mental Accounting Fungibility of Money