Consumer Market Behavior Final Review

Chapter 1 – Consumer Behavior and Marketing Strategy

What is ​consumer behavior? ​(p. 6)

● The study of individuals, groups, or organizations and the processes they use to
select, secure, use, and dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have on the consumer and
society

What is ​customer value? ​(p. 10)

● The differences between all the benefits derived from a total product and all the
costs of acquiring those benefits.

What are the steps of ​marketing segmentation?​(pp. 13-16) ​Hint: Understand all b
​ old
terms ​in this section as well as the steps.

● Market segment: a portion of a larger market whose needs differ somewhat from
the larger market
● Need set: used to reflect the fact that most products in developed economies
satisfy more than one need
● Target market: the segments of the larger market on which we will focus our
marketing effort
● Steps
○ Identifying product related need sets
○ Grouping customers with similar need sets
○ Describing each group
○ Selecting an attractive segment to serve

What are the steps of the ​Consumer Decision Process? ​(Slide 23) ​Hint: The steps are
listed in order in the paragraph on the slide.

● Need recognition
● Information search
● Alternative evaluation
● Purchase
● Use
 ● Post-purchase evaluation

What are ​self-concept ​and ​lifestyle​? (p. 26)

● Self-concept: totality of an individual's thoughts and feelings about him or herself

● Lifestyle: how one lives including the products one buys, how one uses them,
what one thinks about them, and how one feels about them

Chapter 2 – Cross-Cultural Variations in Consumer Behavior

What is ​culture? ​(p. 40, Slides)

● The complex whole that includes knowledge, belief, art, law, morals, customs,
and any other capabilities and habits acquired by humans as members of society
○ A comprehensive concept that influences (directly or indirectly) all
consumer thoughts & behaviors.
○ Generally accepted boundaries rather than explicitly stated rules.

How does ​time perspective ​influence ​nonverbal communications? ​(pp. 54-56) ​Hint:
Understand the meaning and differences between ​monochronic & polychronic time
perspectives.

● Monochromatic time perspective: believing that a person does one thing at a

time, and has a strong orientation towards the present and the short term future
○ Do one thing at a time
○ Concentrate on the job
○ Take deadlines and schedules seriously
○ Are committed to the job or task
○ Emphasize promptness
○ Are accustomed to short-term relationships
● Polychronic time perspective: people and relationships take priority over
schedules, and activities occur at their own pace rather than according to
timetable, orientation toward the present and the past
○ Do many things at once
○ Are highly distractible and subject to interruptions
○ Consider deadlines and schedules secondary
○ Are committed to people and relationships
○ Base promptness on the relationship
 ○ Prefer long-term relationships

Chapter 4 – The Changing American Society: Demographics & Social Stratification

What are ​demographics ​and what are they comprised of​? ​(pp. 110-117 & Slides)

● Demographics: describe a population in terms of size, distribution, and structure

○ Population size and distribution
○ Occupation
○ Education
○ Income
○ Age
● Used in two ways
○ As ​market segmentation descriptors
○ In ​trend analysis

What are ​age cohort ​and ​cohort analysis?

​ (p. 117)

● Age cohort/generation: a group of persons who have experienced a common

social, political, historical, and economic environment
● Cohort analysis: is the process of describing and explaining the attitudes, values,
and behaviors of an age group as well as predicting its future attitudes, values,
and behaviors

What is the ​Hollingshead Index of Social Position (ISP)? ​(CH4: pp. 137, ​Slides)

● Two item index that is well developed and widely used to measure social class
● Takes into consideration:
○ Occupation x7
○ Education x4

Chapter 6 – The American Society: Families & Households

What are the ​types of households? ​(pp. 185-186 & Slides)

● Family household: having at least two members related by birth, marriage, or

adoption, one of whom is the householder
● Nonfamily household: householder living alone or exclusively with others whom
he or she is not related
● Traditional family: a married opposite sex couple and their own or adopted
children living at home
 ○ Nuclear: The immediate group of father, mother, and child(ren) living
together. Has declined from 40% of American households to <20%.
○ Extended Family: The nuclear family, plus other relatives, such as
grandparents, uncles & aunts, cousins, and parents-in-law.
● Step family: a married couple family household with at least one child under the
age of 18 who is a step child
● Multi-Generational Family: a family household containing (a) at least two adult
generations, or (b) a grandparent and at least one other generation

What is the ​Household Life Cycle ​(p. 187)

● Assumes that households move into a variety of relatively distinct and defined
categories over time

What is ​consumer socialization? ​(p. 203)

● Process by which young people acquire skills, knowledge, and attitudes relevant
to their functioning as consumers in the marketplace

What are the ethical concerns associated with marketing to children? (p. 207)

● Limited ability of younger children to process information and to make informed

purchase decisions
● Advertising can produce undesirable values in children, result in inappropriate
diets, and cause unhealthy levels of family conflict

Chapter 7 – Group Influences on Consumer Behavior

What are the different ​types of groups? (​ pp. 216-217)

● Reference group: a group whose presumed perspectives or values are being

used by an individual as the basis for his or her current behavior
● Primary groups: (family and friends)
● Secondary groups: professional and neighborhood associations involve weaker
ties and less frequent interaction
● Dissociative reference groups: can influence behavior just as those with positive
desirability do
 ● Aspiration reference groups: exert a strong influence; individuals frequently
purchase products through to be used by a desired group in order to achieve
actual or symbolic membership in the group

What are the ​three forms of reference group influence​? (pp. 224-225)

● Informational influence: occurs when an individual uses the behaviors and

opinions of reference group members as potentially useful bits of information
● Normative influence: occurs when individual fulfills group expectations to gain a
direct reward or to avoid a sanction
● Identification influence: occurs when individuals have internalized the groups
values and norms

What is an ​opinion leader? ​(p. 232)

● Actively filter, interpret, or provide product and brand-relevant information to their

family, friends, and colleagues
● A “go to person” for specific types of information

Chapter 8 – Perception

What is the process of ​perception? (​ p. 274)

● Exposure
● Attention
● Interpretation
● Memory
● Purchase and consumption decisions

What is ​exposure? ​What is ​selective exposure? (​ p. 275-276)

● Exposure: occurs when a stimulus is placed within a person’s relevant

environment and comes within range of his or her sensory receptor nerves
● Selective exposure: while shopping consumers don’t always pay attention to
everything in a store

What is ​attention? (​ p. 279)

● Occurs when the stimulus activates one or more sensory receptor nerves and the
resulting sensations go to the brain for processing
What is ​hemispheric lateralization? (​ pp. 287-288)

● A term applied to activities that take place on each side of the brain
● Left side: verbal information, symbolic representation, sequential analysis, and
the ability to be conscious and report what is happening
● Right side: easily scan large amounts of information over an extended time
period

What is ​interpretation? ​(p. 289)

● The assignment of meaning to sensations

What ​consumer inferences ​send ​quality signals ​to the consumer? (p. 296, Slides)

● Influence: goes beyond what is directly stated or presented

● Quality signals: inferences related to product quality are relatively consistent
across consumers
○ Price perceived quality: you get what you pay for
○ Advertising intensity: more heavily advertised brands have higher quality
○ Warranties: longer warranties are better quality
○ Country of origin: some countries have higher quality products
● Interpreting Images: Consumer inferences drawn from visual images in
advertising (the implications of the ad that are not explicitly stated).
● Missing Information: Consumers may actually make information from information
that is missing (that could be true or false).
● Ethical concerns: Ads that deliberately mislead consumers to draw false
inferences are unethical

Chapter 9– Learning, Memory, and Product Positioning

What is ​learning? ​(p. 314)

● Any change in the content or organization of long-term memory or behavior and

is the result of information processing

​ nd how does it work? (pp. 315-317)

What is ​Short-Term Memory (STM) a

● Short term memory or working memory: that portion of total memory that is
currently activated or in use
● The information in STM decays quickly and has limited capacity
 ● The use of previously stored experiences, values, attitudes, beliefs, and feelings

Understand ​Classical Conditioning ​and ​Operant Conditioning. ​(pp. 321-323)

● Classical Conditioning: The process of using an established relationship between

one stimulus and response to bring about the learning of the same response to a
different stimulus
○ Pavlov
● Operant conditioning: involves rewarding desirable behaviors such as brand
purchases with a positive outcome that serves to reinforce the behavior

What happens to cause people to forget memories learned under conditioning or

​ nd ​retrieval
cognitive learning? (Slides) ​Hint: What is the difference between extinction a
failure?

● Extinction: Desired response decays or dies out if not reinforced.

● Retrieval failure: Information that is available in LTM cannot be retrieved.

Chapter 10 – Motivation, Personality, and Emotion

What is ​personality? ​(p. 365)

● An individual's characteristic response to tendencies across similar situations

Chapter 11 – Attitudes and Influencing Attitudes

What is an ​attitude​? (p. 384)

● An enduring organization or motivational, emotional, perceptual, and cognitive

processes with respect to some aspect of our environment

What are the characteristics of attitude? (Slides)

● 1. Fear Appeals: Use the threat of negative (unpleasant) consequences if

behaviors are not altered. Work best if:
○ 1) The threat is real.
○ 2) The threat is moderate (not extreme)
○ 3) The product provides a solution to the threat
○ 4) The consumer is held accountable for resolving the threat.
● 2. Humorous Appeals: Ads built around humor.
 ○ 1) Attract attention.
○ 2) May transfer positive emotion to the brand via classical conditioning
○ 3) Don’t always translate well across cultures.
○ 4) May overshadow the message of the ad.
● 3. Sex Appeals: Use of double entendre or sexual imagery in an advertising
appeal to increase attention to the ad.
● 4.Comparative Ads: Directly compare the feature or benefits of two or more
brands. Most effective when:
○ 1) Promoting new or little known brands.
○ 2) Claims are substantiated by credible sources.
○ 3) Brand loyalty is not as strong for competing brand.
○ 4) Noncompetitive ads have become stagnant
○ 5) Print media is used.
○ 6) Care is taken not to mislead.
● 5.Emotional Appeals: Designed to elicit a positive affective response rather than
provide information or arguments. Emotional ads tend to increase attention, ad
information processing, ad liking, and product liking.
● 6.Value-Expressive versus Utilitarian Appeals
○ 1) ​Value-expressive appeals: A ​ ttempt to build a personality for the product
or create an image of the product user.
○ 2) Utilitarian appeals: I​ nform consumers of product’s functional benefits

​ nd ​behavior components o
What are the ​cognitive, affective a ​ f attitude? (pp. 384-388)

● Cognitive: consumers beliefs about an object

● Affective: consumers feelings or emotional reactions to an object
● Behavioral: one’s tendency to respond in a certain manner toward an object or
activity

Chapter 12 – Self Concept and Lifestyle

What is ​self-concept? (​ p. 420)

● The totality of the individual’s thoughts and feelings having reference to himself
or herself as an object

Chapter 14 – Consumer Decision Process & Problem Recognition

What are the types of consumer decisions? (pp. 498-501)

 ● Nominal decision making: (habitual decision making) involves no decision
making; a problem is recognized, internal search provides a single preferred
solution/brand and that brand is purchased
○ Brand loyal purchases
○ Repeat purchases
● Limited decision making: involves internal and limited external search, few
alternatives, simple decision rules on a few attributes, and little post purchase
evaluation
● Extended decision making: involves an extensive internal and external
information search followed by a complex evaluation or multiple alternatives and
significant postpurchase evaluation

​ (pp. 502-503) ​Hint: There is no need to

What is the nature of ​problem recognition?
memorize Figure 14-2.

● The result of a discrepancy between a desired state and an actual state that is
sufficient to arouse and activate the decision process

​ nd ​purchase involvement? (​ Slides)

What are ​product involvement a

● Product involvement: a consumer’s level of interest in a product category

● Purchase involvement: a consumer’s concern with making the right choice in a
buying decision

Chapter 15 – Information Search

What are the four categories of decision alternatives (i.e., sets)? (pp. 521-524)

● Awareness set: composed of those brands consumers are aware of

● Inert set: composed of those bands consumers are aware of and view in a
neutral manner
● Inept set: composed of those brands consumers are aware of and view
negatively
● Evoked set/consideration set: composed of those brands or products that will
evaluate the solution of a particular consumer problem

What marketing strategies affect information search on the Internet? (pp. 529-531) ​Hint:
Pay attention to ​bolded and ​italicized t​ erms.
 ● Search engine optimization: involves techniques designed to ensure that a
company’s web pages are accessible to search engines and focused in ways
that help improve the chances they will be found
● Behavioral targeting: involves tracking consumer click patterns on a website and
using that information to decide on banner ad placement
● Bots: do the shopping/searching for users and therefore often referred to as
shopping bots

What is ​behavioral targeting? (​ Slides)

● involves tracking consumer click patterns on a website and using that information
to decide on banner ad placement.

Chapter 18 – Postpurchase Processes, Customer Satisfaction, & Customer

Commitment

What is ​postpurchase dissonance? ​(pp. 622-623)

● Doubt or anxiety that is followed by a consumer purchase decision and can be

brought on by:
○ Degree of commitment or irrevocability of the decision
○ Importance of the decision
○ The difficulty of choosing between the alternatives
○ The individual's tendency to experience anxiety

What is the ​expectancy disconfirmation model? ​(Slides)

● Satisfaction depends on a comparison of pre-purchase expectations to

consumption outcomes (i.e., post-consumption evaluation of product
performance)
● Expectations (E) compared to Product Performance (P)
○ P = E à Satisfaction (Confirmation)
○ P > E à “Delight” (Positive Confirmation) [Highly Satisfied
○ P < E à Dissatisfaction (Disconfirmation)
● Customer Satisfaction is ​necessary​ for customer loyalty but does not guarantee
customer loyalty.
What is ​relationship marketing? (​ p. 643)

● An attempt to develop an ongoing, expanding exchange relationship with a firm’s

customers