M L 4201 Exam 1 Review Sheet Key Topics from Chapter 1 Understanding Consumer Behavior Why Study Consumer Behavior and What Is It The Totality of consumers decisions with respect to the acquisition consumption and disposition of goods services time and ideas by human decision making units over time Consumer Behavior What is a consumer What is an offering a person who purchases goods and services for personal use A product service activity or idea offered by a marketing organization to consumers What affects consumer behavior 4 Broad Domains The psychological core Internal Consumer Processes Covers Motivation ability and opportunity exposure attention and perception categorization and comprehension of info attitudes about an offering The process of making decisions The consumers culture Consumer Behavior Outcomes To make decisions that affect outcomes like buying new products consumers must first engage in processes described in the psychological core Need to be motivated and need to think about this info develop attitudes Marketing and form memories Activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society 4 P s Marketing Black Box of the Consumer Response Get inside the Black Box and figure out why Inverted U relationship because Habituation Ad loses its attention getting ability Attitude toward ad becomes negative and product Consumer Response Ultimate test of marketing strategy did attitudes change did recall increase are consumers more likely to recommend products The Marketing Concept Firms exist to satisfy consumers needs Must understand consumers to understand their needs To know what consumers want Consumers firm To know how to influence consumers Firm consumers Want consumers to chose B instead of A Elimnate A Operant Conditioning Reinforcement Any event that increases the frequency of the preceeding event Positive Reinforcement when consumer engages in behavior something good happens thank you notes Negative reinforcement When consumer engages in behavior something bad stops happening Punishment Opposite of reinforcement attempts to decrease behavior when consumer engages in behavior something bad happens late fees Roots to Persuasion Central Route high Effort Facts evidence and examples Peripheral Route Low Effort Nudge Sources of Attractiveness Positive feelings Message length numbers A slight push or nudge to the consumer To change any aspect of the choice architecture that alters people s behavior in a predictable way without forbidding any options or significantly changing their economic consequences Ex Have two sizes of coffee but want people to buy the larger one Make an even larger size to make people buy the medium size compromise effect Consumer behavior involves Acquiring Usage and Disposition Acquiring Usage Disposition The process by which a consumer comes to own an offering ex buying The process by which a consumer uses an offering tells a lot about a person After acquiring an offer you use it The process by which the consumer discards an offering Some people chose products good for the environment Marketers find profit opportunities in addressing disposition concerns Key Topics from Enrichment Chapter Developing Information About Consumer Behavior Consumer Behavior Methods How to study consumer behavior Intuition and introspection do not always provide real insight You re not the average consumer In most cases you do not represent the target market you re trying to reach That means you need to collect data to figure out what consumer want Primary Data Data originating from a researcher and collected to provide info relevant to a specific research project surveys focus groups experience Collected specifically for the current purpose and could be collected internally or Examples Experiments Test Markets Focus Groups Surveys Observations externally Secondary Data Interviews Data collected for some other purpose that is subsequently used in a research project Collected for some other purpose External census Gallup Polls Internal Company Records Sales data Advantage Disadvantage Time saving low cost Exploratory consumer research depth interviews focus groups observational research May be out of date or not specific enough Depth Interviews Focus Groups Direct contact with consumers More appropriate than focus groups for sensitive embarrassing or emotionally charged topics A form of interviewing involving 8 12 people a moderator leads the group and asks participants to discuss a product concept or other marketing stimulus Experiments and types of variables Experiments Compare different responses and different emotions toward the brand and everything that goes into the brand Help us understand causal relationships Observational Research Using pictures Diaries experiments to determine peoples emotions wants and needs Making observations of behavior and recording those observations in an objective manner Most useful when investigating complex social settings less useful for studying well defined hypotheses under specific conditions Useful for measuring lots of things Attitudes knowledge intentions brand awareness Not useful because it is subject to social desirability bias and can measure correlation but Surveys not causation Experimental Research Objective Test hypothesis about causal relationship between variables Look at effect of independent variable on the dependent variable Helps determine CAUSALITY CORRELATION not equal to CAUSATION 3 factors necessary for causation Correlation Storks and babies in same house Temporal antecedence Storks Baby No third factor driving both your supposed cause and effect Qualitative Exploratory Quantitative Test Generalize Key Topics from Chapter 2 Motivation Ability Opportunity Motivation What is it Energy directed at objects or activites An inner state of arousal that provides energy needed to achieve a goal A driver of almost everything in Consumer Behavior High motivation Pay careful attention evaluate critically try to remember Personal Relevance Involvement Buying a car situational involvement Car enthusiast enduring involvement endure a long term interest in a hobby only a few things can be endured Low motivation Don t devote much energy use shortcuts You can have high or low motivation to Process info about an ad Form an attitude about a product or brand Make a purchase decision When is it enhanced SOMETHING IS