MKTG 315 1st EditionExam # 1 Study Guide chapters 7-11Chapter 7Types of Groups-Group: defined as two or more individuals who share a set of norms, values, beliefs, and have certain relationships with one anotherPrimary Group: family and friendsSecondary Group : professional or neighborhood associationsDissociative Reference Groups: can influence behavior just as those with positive desirabilityAspiration Reference Groups: also exert strong influence; individuals purchase products because they are used by a certain group in order to a achieve membership into the group Subcultures- Consumption Subculture: a distinctive subgroup of society that self-selects on the basis of a shared commitment Marketing and Consumption Subcultures: groups develop rituals and modes of symbolic communication that often involve products or servicesCommunities-Brand Community: is a non- geographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brandOnline Community: interacts over time around a topic of interest on the internetOnline Social Network Site: web-based service that allows individuals to construct a public or semi-public profile within a bounded system-Online communities and social networks are attractive to marketers who are spending over $4 billion on adverting on social networking-A recent study showed that the public’s most favorable interaction with a firm is when they provide incentives such as free products and couponsReference Groups and InfluencesInformational influence: occurs when an individual uses the behaviors and options of reference group members as potentially useful pieces of informationNormative Influence: sometimes referred to as utilitarian influence occurs when an individual fulfills group expectations to gain a direct reward or to avoid somethingIdentification Influence: (or value-expressive) occurs when individuals have internalized the group’s values or norms-Marketer’s determine degree of group influence by categorizing things by situation, behavioral response and type of influenceSales StrategiesAsch Phenomenon: naive subjects will agree with people to respond before them to a question, even if it is clearly wrong-Marketer’s use reference groups to develop advertisements Word-of-Mouth Communication: individuals sharing information with others in a verbal form; can be a great cause of free publicityOpinion Leader: individuals who actively filter, interpret, or provide product and brand information to the people in their lives-Two step communication and multi-step communicationMarketing Strategies to Generate WOM and Encourage Opinion Leadership- Advertising- Product Sampling- Retailing/Personal Selling - Creating BuzzInnovationsInnovation: idea, practice or product perceived to be new by the relevant individual of a group Categories of Innovations- Continuous: requires minor changes as you go- Dynamically Continuous: requires moderate changes in important behaviors- Discontinuous: This is a major behavioral change, but once you make the change adjustments are not needed Adoption Process: becoming aware and exposed to a new innovationDiffusion Process: manner in which innovation is spread throughout a market-Innovators, early adopters, early majority, late majorityLagards: limited to social access, very reluctant to adapt innovationsChapter 8The Nature of PerceptionInformation processing: series of activities by which stimuli are perceived, transformed into information and storedPerceptual Defenses: individuals are not passive recipients of marketing messagesExposure: occurs when a stimulus is placed within a person’s relevant environment and comes within range of their sensory nerves Selective ExposureZipping: going over or around commercialsMutting: turning the sound off-These are known as AD AvoidanceProduct Placement: provides exposure that customers do not try to complainInfomercials- program length TV commercialsPermission-Based-Marketing: consumers control the messages they are exposed toAttentionStimuli activate one or more sensory receptor nerves, and the results go to your brain for processing Factors of Stimuli- Size- Intensity- Attractive Visuals- Color and Movement- Position- Isolation- Format- Contrast and Expectations- Interestingness- Information Quantity Information overload: consumers are overwhelmed with too much information that they do not want to be bothered with any of itIndividual/Situational FactorsMotivation: created by some kind of an interest or need Smart Banners: banner ads activated based on terms in your search engineAbility: capacity to understand and process marketing information Brand familiarity: is an ability factor related to attention Clutter: to dense of stimuli in the environment making it hard to focus on Program Involvement: how interested viewers are in the program of editorial concept surrounding the adsNon-focused Attention: things your brain get side tracked on, things in the subconsciousHemispheric Lateralization: term that applied to activities that take place on each side ofthe brainSubliminal Stimuli: very subtle messages; one is not fully aware of seeing itInterpretationInterpretation: the assignment of meaning to sensationsPerceptual Relativity: relative process, rather than absoluteCognitive Interpretation: process by which stimuli are paced into existing categories of meaningAffective Interpretation: the emotional of feeling response triggered by stimulus Individual CharacteristicsTraits: physical and psychological traits that make us up drive our needs/desires and how stimulus is interpreted-might also perceive things based on learning, knowledge, or expectationsSituational/Stimulus Characteristics Cues: present in the situation play a role in consumer interpretation; independent from stimuliTraits: specific traits of the stimulus (size, shape, color) affect how consumers reactStimulus Organization: physical set up of the stimulus object (cluttered, neat, pretty)Proximity: stimuli closed together are assumed to be part of one group or categoryAmbush: Mass communication to make people see, hear and remember youChangesSensory Discrimination: ability to distinguish between similar stimuliJust Noticeable Difference: minimum amount a brand can differ from anotherInference: goes beyond what is directly stated or presentedBrand Extension: leveraging an already