86 Cards in this Set
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Zeitgeist
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Spirit of the times
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Marketing
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The process that includes all communication of information that sellers want to share with consumers
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Competitive Advantage
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Delivery of benefits that exceed those supplied by the competition, making your product or service the best choice for the consumer and more profitable for the orginizarion
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Five points of competitive advantage
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Difficult to mimic; applicable to multiple situations; unique; sustainable; superior to competition
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Recent approaches to fashion marketing
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Buzz theory; guerrilla marketing; ambush marketing; viral marketing; word of mouth
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Buzz theory
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Everyone wants to participate in spreading news; people are flattered to participate; result=wide exposure and momentum for a product
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Market segment
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A homogeneous group of consumers displaying like needs, wants, values, buying behaviors
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Target market
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An incorporation of likely groups of potential consumers who share similar lifestyles and preferences
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Theory of collective selection
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Mass of people formulate certain collective tastes reflected by the goods or services they choose and their selections illustrate beliefs and values of the group's social system
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Up branding rules of thumb
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Play from your brand's strength; leverage design; limit distribution channels; go "green"
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Product differentiation
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Creating a certain perception or image about the product that differentiates it from the competition
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Brand
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Everything known/felt about a product/service from its recognizable name, logo, slogan, packaging, to the power it holds in people's minds
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Brand image
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Deliberate, consistent way a company communicates a product's quality and essence
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Brand Loyalty
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behavior exhibited by customers who have strong connections to favorite brands
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Brand equity
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Group of strong assets that include value, esteem, worth to create satisfaction, retention, and demand
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Consumer behavior
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The study of the processes involved when individuals or groups select, purchase, use and dispose of products services, ideas, experiences to satisfy needs and desires
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Consumption Analysis/Research
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Analysis of why, how, where, when people use products in addition to why and how they buy
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Why study consumer behavior?
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Affects personal policy; determines everyone's economic health; helps formulate public policy; determines success of marketing or demarketing programs; determines economic economic health of nation
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Consumer Decision Process Model
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represents the steps that consumers go through before, during, and after making purchases
need recognition-->information search-->alternative evaluation
-->purchase-->post purchase
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3 major approaches to consumption analysis/research
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1) Observation; 2) Interviews and surveys; 3) Experimentation
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Observation cosumer research
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In-home; shadowing; physiological (eye movement or galvanic skin response (GSR)); interviews and surveys; focus groups; longitudinal studies; cohort studies
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Experimentation
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To understand cause-and-effect relationships by carefully manipulating/measuring independent variables to determine how these changes affect dependent variable (i.e. lab experiment with max control of variables; field experiment in natural setting)
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Misc. research methods
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Diaries; photography and pictures; storytelling
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Types of empirical research
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Empirical research is a way of gaining knowledge through direct observation or experience. Types: quantitative and qualitative
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Quantitative
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Includes observations surveys, experiments. NUMBER BASED. Statistical tests used for analysis. More objective, enables researches to predict consumer behavior; large sample size (usually used for larger populations)
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Qualitative
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In-depth interviews, focus groups, story-telling (text-based). Requires no statistical data. More subjective, with a goal to understand or describe a problem or condition. Small sample sizes, less generalizable.
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Sensations
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Immediate response of sensory receptors to basic stimuli
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Perception
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The process by which sensations are selected organized, and interpreted
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Sensory Marketing
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When companies pay extra attention to impact of sensations on our product experiences
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Hedonic consumption
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Evaluation of a consumption experience based on gratifying wants or needs derived from emotional needs
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Utilitarian consumption
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Consumers focus is on product's physical or technical performance
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Balanced consumption
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Consumption situation that includes both utilitarian and hedonic experiences
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Absolute threshhold
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Minimum amount of stimulation a person can detect on any given sensory channel
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Differential threshhold
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Ability of sensory system to detect changes in or differences between two stimuli
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JND
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Just noticeable difference
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Embeds
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Figures inserted into magazine ads by high-speed photography or airbrushing
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Subliminal auditory perception
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Sounds, music, or voice text inserted into advertising
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Attention
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The extent to which processing activity is devoted to a particular stimulus; consumers experience sensory overload; marketer need to break through the clutter
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Perceptual selection factors
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1) Perceptual vigilance (consumers are more likely to be aware of stimuli that relate to their current needs); 2) Perceptual defense (people see what they want to see); 3) Adaptation (the degree to which consumers notice a stimulus over time)
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Habituate
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Consumers become numb to stimuli; they need stronger doses of stimuli to notice it
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Duration
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lengthy exposure required in order for stimuli to be processed because you need long attention span
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Dscrimination
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Simple stimuli habituate because they don't need attention to detail
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Exposure
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Frequently encountered stimuli habituate as rate of exposure increases
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Relevance
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Stimuli that's irrelevant, almost automatic habituation because you don't need to pay attention
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Interpretation
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The meaning we assign to a sensory stimuli which is based on a schema
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Priming
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certain properties of a stimulus involve a schema
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Gestalt principal
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The whole it greater than the sum of its parts
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Perceptual map
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Map of where brands are perceived in consumers' minds
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Learning
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Stored experiences, direct or observed. Ongoing process.
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Incidental learning
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Casual, unintentional acquisition of knowledge
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Theories of learning
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Behavioral learning theories focus on stimulus-response connections cognitive theories focus on consumers as problem solvers who learn when they observe relationships
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Instrumental conditioning
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Individual learn to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes
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Classical conditioning
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A stimulus that elicits a response is paired with another stimulus that initially does not illicit a response on its own
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Halo effect
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Tendency to react to other similar stimuli as one would respond to original stimuli (piggy backing). Practiced by most retailers' private labels
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Instrumental conditioning
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Occurs when we learn to repeat behaviors with positive outcomes and avoid those with negative outcomes
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Fixed interval reinforcement
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First response made brings reward. i.e. sale shoppers only shopping at sale time
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Variable interval reinforcement
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You don't know when reward will be offered because you don't know exactly when to expect the reinforcement, you have to respond at a consistent rate
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Fixed ratio reinforcement
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Reinforcement only occurs after a fixed number of responses (like a punch card)
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Variable-ratio schedule
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You never know how many responses are required (like gambling)
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Observational learning
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We watch people in action with a product. Storing observations for later use.
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Decay
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Memories fading with time/age
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Proactive interference
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Prior learning interferes with new leaning
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Retroactive interference
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Forgetting stimulus response associations
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Spacing effect
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Tendency to recall printed material more effectively when target item is repeated periodically rather than presenting it repeatedly in a short time period
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van restoff effect
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More likely to remember bad experiences
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What is the illusion of truth effect?
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We regard statements that we are more familiar with as more true.
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Generic need recognition
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When the need for an entire product category is stimulated by marketers. Undertaken by industries where consumers perceive little difference between brands (examples: beef, milk, cotton)
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Motivation
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The drive to satisfy both physiological and psychological needs through product purchase and consumption
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Utilitarian needs
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functional or practical benefit
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Hedonic needs
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Experiential need involving emotional responses or fantasies
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Drive theory
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biological needs that produce unpleasant state of arousal (like hunger)
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Goal valence (value)
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Consumer will approach positive goal and avoid negative goal
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Approach-approach
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2 desirable alternatives
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Approach-avoidance
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Positive and negative aspects
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Avoidance-avoidance
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Choice with 2 undesirable alternatives
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Levels of need in Maslow's Hierarchy
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physiological>safety>affiliation>esteem>self-actualization
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Inertia
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Consumption at the low end of involvement; decisions made out of habit (lack or motivation)
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Product involvement
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A consumer's level of interest in a particular product
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Levels of involvement
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TV has low involvement because it requires passive viewer and we exert little control over content; print has high involvement because reader actively processes info, can pause and reflect on info
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State of Narrative Transportation
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People become immersed in the storyline
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Purchase situation involvement
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Differences that may occur for buying the same thing in different contexts
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Hofstede's cultural dimensions
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Countries rated based on five dimensions to compare and contrast values: 1) Power distance; 2) Individualism; 3) Masculinity; 4) Uncertainty avoidance; 5) Long-term orientation
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Laddering
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Uncovers consumers' associations between specific attributes and general consequences
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LOHAS
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Lifestyles of health and sustainability; worry about environment, want products produced in sustainable way
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Etic
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Adopt standardized strategy (objective and analytical). Outside perspective
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Emic
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Adopt localized strategy. Subjective, experiential (inside perspective)
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DM 272: MIDTERM