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Flashcards

Consumer behavior midterm

Natalya Escobar English 91 cards

Cards in this deck (91)

  1. 1Consumer behaviorA psychological perspective on how people act before, during, and after engaging in a market and why they act that way.
    The subset of behavioral phenomena that are relevant to consumption.
  2. 2Why study consumer behavior?Epistemic (people have sharp intuitions but we need theory & scientific experimentation to overcome pervasive biases & gaps in these intuitions), Strategic, Societal
  3. 3Homo EconomicusEconomic assumption that consumers are rational, self-interested & optimizing
  4. 4Endowment Effectconsumers tend to place a higher value on a good when they own it
  5. 5Exposure (1st question of information processing)Inbound/Outbound marketing-can be thought of as modes of achieving deliberate OR random exposure
  6. 6Attention (2nd question of information processing)Occurs when you actually are processing a stimulus (information). High or low involvement
  7. 7SalienceThe extent to which a stimulus stands out; Can I get your attention? (size, intensity, attractiveness, positioning, isolation); importance varies based on how consumer is processing
  8. 8Positioning (attention-salience)context dependent where optimal:
    retailing= eye level
    print ads= upper right
    online ads= vertical
  9. 9Top-down processingletting our existing thoughts shape how we process incoming information
  10. 10Bottom-up processingTaking incoming information to shape our thinking
  11. 11Involvementmotivated attention; Can I keep your attention?
  12. 12Targeted advertisingfinding people who are already prone to being engaged (involved)
  13. 13Interpretation (3rd question of information processing)How are the people processing information: cognitive, affective
  14. 14Schemaconstruct we use to categorize products (consumers need it to cognitively interpret products/services); the network of associations we have around a given concept
  15. 15Persuasion Knowledge (cognitive)Consumers' knowledge of marketing tactics and the strategics they use to defend themselves
  16. 16Expectations (cognitive)can play a major role on our experiences (ex. wine telling people cheap or expensive, changed their pleasantness level)
  17. 17ContextCognitive
  18. 18AffectiveEmotions can play a role in how we interpret information.
  19. 19Had participants in study consume content involving human suffering, war documentary found that...consumer were more averse to products involving pleasure immediately after (affective)
  20. 20Integral affectEmotions which are derived from the focal stimulus (ex. Otis in dog shelter)
  21. 21Incidental affectEmotions which are NOT derived from the focal stimulus, but affect the interpretation of the focal stimulus
  22. 22Inferenceswhether consumers draw spontaneous or deliberative information depends upon their motivation/resources
  23. 23Spontaneous inferences (factor 1-ease of deriving inferences)shown to be held with more confidence and be more impactful towards judgements and behaviors
  24. 24Inductive (generalizations) inferences (factor 2)consumers use cues to probabilistically infer information about products; shown to be held with more confidence and be more impactful towards judgements and behaviors
  25. 25Deductive (logical conclusions) Inferences (factor 2)Drawing inferences from general premises more if/then rule-based
  26. 26Memory-based (factor 3)those made from information retrieved from memory; shown to be held with more confidence and be more impactful towards judgements and behaviors
  27. 27Stimulus-based (factor 3)made from information that is present
  28. 28Casual Inferencescorrelation does not equal causation; independent variable effects dependent
  29. 29Counterfactualwhat would have happened otherwise
  30. 30How to infer counterfactuals when doing research?Ideal=control conditions
  31. 31Internal validitycan we reasonably draw conclusions from this study
  32. 32External Validitycan we draw conclusions about settings different from those of the experiment
  33. 33Ecological Validitydoes your experiment represent the real world situation you are trying to inform
  34. 34Confoundsis more than one thing differing across your conditions?
  35. 35Selection bias (sampling)are you recruiting a representative sample from your population of interest?
  36. 36Demand effectsare participants trying to infer how you want them to behave?
  37. 37Short-term memoryInformation that exists in memory while it is being processed; lost unless transferred to long term memory; limited in capacity
  38. 38Working memoryapplication of your short term memory for judgements & decisions
  39. 39Long-term memoryinformation that exists in memory for longer periods of time "sticky"
  40. 40Encoding (learning)the process of converting incoming information into a storable, memorable form
  41. 41retrievalmemory being accessed
  42. 42storage (maintenance)memory being saved
  43. 43chunkingwhen consumers cluster information together to create fewer higher level pieces of information
  44. 44Scripta special type of schema that describes the way events “should” happen
  45. 45Semantic memorywhat you know about a given concept
  46. 46episodic memoryyour knowledge and sequence of events in which you participated
  47. 47flashbulb memorydeep and vivid knowledge of a specific event
  48. 48operant conditioning (instrumental learning)behaviors are modified through the association of stimuli with reinforcement or punishment
  49. 49serial position effectprimacy & recency effects whereby first and last items on a list tend to be best retrieved
  50. 50peak end rulewhen assessing an experience from memory, people place particular weight on the most intense part of the experience and the end of it
  51. 51processing fluencyExperienced ease of processing a set of information
  52. 52cuesstimuli which trigger or aid in the retrieval of memories
  53. 53heuristica decision-rule or shortcut that we use to make judgements and decisions with limited processing
  54. 54Biasestendencies which violate normativity
  55. 55NormativityAxioms about how someone should behave (economists get to decide what is normative)
  56. 56An economist would say that behavior is counternormative if…it involves a consumer violating rationality
  57. 57Decoy effectthe presence of a third dominated option shifts preferences across two focal options
  58. 58Omission Biasthe belief that guilt by omission (doing nothing) is lesser than guilty by commission (making the decision) for the same outcome
  59. 59Anthropomorphismthe human tendency to ascribe human characteristics and feelings to non-human entities
  60. 60Availability heuristicsThe tendency to believe more easily retrieved (available) events are more likely
  61. 61Common application of availability heuristic in marketing:taking advantage of the link between exposure and availability
  62. 62Representativeness HeuristicPeople judge the likelihood of an event by considering its resemblance to existing prototypes and stereotypes
  63. 63Illusion of explanatory depthpeople overestimate their understandings of mechanisms but recalibrate after being asked to explain these mechanisms
  64. 64Dunning-Kruger EffectNatural to feel underconfident if you have high competence; with low or medium competence your perceived performance is higher than actual performance
  65. 65Curse of knowledgeonce we know something, it's hard to imagine not knowing it
  66. 66End of History IllusionRegardless of age, we falsely believe that we are the “final version” of ourselves
  67. 67Loss aversion-Losses feel worse than an equivalent gain feels good
    -key implication of Kahneman and Tversky's “prospect theory”
    -LA stronger for hedonic (vs. utilitarian) goods
  68. 68Endowment effectWTA>WTP
    we place higher value on something just by owning it
  69. 69Psychological ownership (felt ownership)can be induced for goods which consumer do not (yet) own, can result in endowment effect
  70. 70Sunk cost fallacyWhen we refuse to take the best future course of action because of past involvement; proposed to be driven by loss aversion
  71. 71Status quo biascounternormative preference for things to remain the way they are; proposed to be driven by loss aversion: the potential losses involved with change weight too heavily against the potential gains
  72. 72Choice overloadpresence of a high number of choices such that choices are less likely and less satisfying, among other negative consequences; proposed in part by loss aversion
  73. 73Knightian Riskevents of unknown outcomes for which we can assign numerical probabilities
  74. 74Knightian uncertaintyevents of unknown outcomes for which we can NOT assign numerical probablities
  75. 75Uncertainity aversionpreference for situations defined by Knightian risk over knightain uncertainty (people want a number)
  76. 76Epistemic uncertaintycomes from a lack of knowledge around a process (knowable uncertainty)
  77. 77aleatory uncertaintycomes from a process of inherent randomness (cannot be reduced through information search)
  78. 78Risk aversiontendency to prefer the less risky option even if the riskier one has an equal or sometimes higher expected value
  79. 79Intertemporal discountingwhen a consumer places a lower value on a good the later they will receive it
  80. 80Hyperbolic discountingmodel for how we discount future outcomes
  81. 81Present biastendency to overly value present rewards over larger future rewards (tend to be exacerbated in hot states)
  82. 82Marshmallow studyChildren who were able to wait for two marshmallows performed better on cognitive and social competency tasks as adolescents; our self-control abilities are tied to other positive attributes like cognitive skills; consumer use pre-commitment mechanisms to manage self-control
  83. 83Construal Level Theory (CLT)A theory used to explain how something can feel psychologically close (low-level construal: more how) versus psychologically distant (high-level construal: more why & benefits and less risk-averse, can disregard our future selves)
  84. 84Planning fallacyAn optimism bias in how little time it will take to complete a task
  85. 85Savoring & DreadPeople tend to prefer to delay positive outcomes (to increase savoring) and move-up negatives outcomes (to reduce dread)
  86. 86Choice architecturethe way a decision environment is organized
  87. 87NudgeGenerally refers to strategic choice architecture which guides a decision maker towards a particular choice
  88. 88Defaultsmaking an option the default can be extremely powerful “nudge” (ex. study organ donation)
  89. 89FramingStrategically conveying information to engender a certain reaction
  90. 90FrictionExternal barriers to a given action, usually, but not necessarily subtle
  91. 91Highly effective nudgessalience, defaults, reducing choice overload

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Flashcards on Consumer behavior midterm, created by Natalya Escobar on 08/10/2023.
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Natalya Escobar
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