DM 272 1nd EditionExam # 1 Study Guide Lectures: 1 - 12Chapter 1: 2,3,5,7,9,10Chapter 2: 1,4,5,7,8,9Chapter 3: 1,2,5,6,7,8Chapter 4: 4,5,7,8,9,12Lecture 1 (August 27)Introduction to Consumer Behavior1.What is consumer behavior?The study processes involved when individuals, or groups select, purchase, use, or disposeof products, services, ideas, or experiences to satisfy needs and desires. - Process2.What are the three stages of the consumption process?- Prepurchase- Purchase- Postpurchase3.What is consumption analysis?- Analysis of why, how, where, and when people use products in addition to why/how they buy. 4.Evolution of consumer behavior-differences among manufacturing orientation, selling orientation, marketing orientation, and consumer orientation5.How to study consumer behavior? a) An applied science that include various disciplines: The Pyramid of Consumer BehaviorLecture 2 (August 29) How to study consumer behavior?b) Three major methodological approaches: Observation, Shadowing Physiological methods. 6.What are longitudinal studies?-Repeated measures of consumer activities over time to determine change in opinions, buying, and consumption behaviors.o Cohort studies7.Independent variables vs. dependent variables- Independent variables: o Cause: something you manipulateo Example: Education level- Dependent variableso Outcome: something you want to findo Example: Salary, Financial status8.Benefits of diaries as one research method-The benefits of a diary as a research method is that they are memory based. Lecture 3 (September 3)9.Differences between qualitative and quantitative research - Quantitativeo Research methods include observations, surveys, and experiments  Number based Larger sample size Not necessarily used to “understand” a consumer- Qualitative o Research methods include in-depth interviews, focus groups, story telling, ect.  Text based Administered by trained interviewer or researchers More subjective Small sample size, less generalizableLecture 4 (September 5)10.What is Role Theory?- The sociological perspective of studying consumer behavior- People act out many different roles based on a particular “play” that are in at the time. 11.What are the underlying principles of consumer behavior?- The consumer is sovereigno Power and authority- The consumer is globalo Cultural/regional differences- Consumers are different; consumers are alikeo Careful market segments- The consumer has rightso The consumer bill of rights1. The right to safety2. The right to be informed3. The right to choose4. The right to be heard5. The right to a clean environment6. Poor and minorities have their interests protectedLecture 5 (September 8)1.Three stages of perceptual process- Exposure - Attention- Interpretation 2.What is hedonic consumption?- The multisensory, fantasy, and emotional aspects of consumers’ interactions with productso Ex: concert, Disneyworld, movie theatre 3.Absolute threshold vs. differential threshold- Absolute threshold: the minimum amount of stimulation that can be detected on a sensory channel- Differential threshold: the ability of a sensory system to detect changes or differences between two stimuli o Just Noticeable Difference (J.N.D)4.What is Weber’s law?- The stronger the initial stimulus, the greater the change must be for it to be noticedLecture 6 (September 10)5.Perceptual vigilance vs. perceptual defense- Perceptual vigilance: only pay attention to what they like/need- Perceptual defense: pay less attention to what you don’t need or don’t like6.Perceptual adaption-factors that may influence our level of attention to stimuli (e.g., intensity)- When a stimulus becomes familiar consumers no longer pay attention to the stimuluso Intensity: less intense, less impacto Duration: the longer the exposure, less impacto Discrimination: more similar, less impacto Exposure: the more frequent of exposure, less impacto Relevance: less relevant, less impact7.Three major stimulus organization principles (e.g., principle of similarity)- Principles that relate to the way our brains organize stimulio Closure principle: people tend to perceive an incomplete picture as completeo Principle of Similarity: consumers ten to group objects that share similar physical characteristics. o Figure-ground principle: one part of the stimulus will dominate (the figure) and the other parts recede into the background8.Components of semiotics- Semiotics: how to interpret the meanings of symbols around uso Object: product or focus of messageo Sign: sensory image representing the meaning of the object An icon, an index, or a symbolo Interpretation: meaning derived from the signLecture 7 (September 12)9.Blind tasting tests vs. perception vs. preference- Blind Taste Test: when consumers sample a product without knowing the brand which they consume- Perception: subjective, taste is not necessarily the most important factor of consumer purchases- Preference: brand information impacts consumer perception and thus preference Lecture 8 (September 15)1.Traditional view of memory vs. recent argument of memory- Traditional view:o Short-term memory vs. long term memory (LTM)o LTM- information warehouse through rehearsal and meaningful associationo Two separate systems- Recent Argumento How you process information determines what aspect of memory The more effort it takes to process information, the more likely to be LTMo Focus on interdependence2.Knowledge vs. amount of information search3. Types of consumer knowledge4.Product novice vs. product experts- Product novices possess very simple levels of knowledge- Product experts possess vast amounts of knowledge, including particular brands within acategory 5.Levels of Product Knowledge and relevant examples - Product class/category (Abstract)- Product class/category knowledge- Consumption/usage knowledge- Persuasion knowledge- Self-knowledge (concrete)Lecture 9 (September 17)6.What is relative price knowledge?- What consumers know about one price relative to anotherLecture 10 (September 19)7.Objective knowledge vs. Subjective knowledge - Objective knowledge (OK): Actual amount of accurate information stored in memory- Subjective knowledge (SK): Perception of the amount of information you know8.Sources of knowledge- personal vs. impersonal and business-controlled vs. non-business-controlled- Personal o Business