Flashcards
MKT 450 Final Exam
Cards in this deck (119)
- 1to sell more of your product a company must1. make users switch brands
2. convert non users into users
3. retain current users
4. make users consumer more
5. make users consumer at additional times, in new situations
(increased focus on the consumption experience, increase focus on current customers) - 2do purchases imply consumptionno
ex: gym people pay for services, but may never go - 3How is the product consumed1) make sure consumers know how to use product correctly
2) make sure it is advertised in the correct manner
3) uncover new benefits/users for the product - 4how much do users consumer productsheavy, moderate, light
ex: wine: 16% of Americans make of 88% of consumption - 5what are some feelings association to consumptionsatisfaction, delight, guilt, post purchase dissonance, regret
- 6post purchase dissonancea feeling off anxiety over whether the correct decision was made
- 7how to alleviate post purchase regret1) advertise to reassure value
2) cash back guarantees
3) celebrity/expert endorsements - 8Implication on reducing post-purchase dissonancecan diminish negative feelings about product/service
- 9how to reduce anticipated regretrefund if price changes, malfunction guarantee, make returns easy
- 10inaction intertiaInaction inertia refers specifically to the tendency of a person who already has passed up a similar, more attractive opportunity to omit acting on a second, somewhat less desirable opportunity (even if it still represents a gain from one normal reference point)
- 11what is satisfaction1) evaluation of product after consumption
2) the feeling that results when consumers make a positive evaluation or feel happy with their decision - 12what is the importance of satisfaction1. influences repeat purchase
2. minimizes complaints
3. avoids legal action
4. influences wom (increase positive wom and decreases negative wom - 13wom1.often most sign. source of info for consumers
2. more credible then paid media endorsements - 14what are the marketing implications for wom1. simulate word of mouth
2. stimulate word of mouth
3. directly targets opinion leaders
4. monitor what people are saying
5. combats product problems and rumors - 15what is simulating wompaying for positive wom
- 16what stimulates wom1. teaser campaigns
2. buzz marketing
3. viral marketing campaigns - 17teaser campaignsdesigned to create buzz by deliberately leaving out details about the product
ex: forgetting sarah marshall - 18buzz marketingintroduce product or sample it to opinion leaders
ex: ford focus - 19viral marketing campaignsuse existing social networks to increase brand awareness or sales
- 20how to respond to dissatisfaction1. voice response (complain to firm)
2. private response (complain to friends, boycott firm)
3. third party response ( file official complaint, take legal action) - 21when responding to complaints what the new levels of satisfaction (and repurchase levels)those satisfied with response: 95% repurchase
those unsatisfied with response: 30% repurchase - 22for those individuals who do not complain what is the likelihood of them repurchasing55%
- 23what are the views on qualityCEO's say:
1. 60% quality is improving
2. 13% quality has declined
Consumers say:
1. 49% quality is declining
2. 59% quality will continue to decline - 24between a Buick and a Mercedes which has higher levels of satisfaction?Buick because Mercedes has too high of expectations due to the price
- 25what does satisfaction depend onexpectations
- 26what is the expectancy dis confirmation modelsatisfaction=perceived quality-expectations
- 27what are the possible outcomes due to expectation1. positive disconfirmation
2. negative disconfirmation - 28positive disconfirmationresults in satisfaction...better then expected performance
- 29negative disconfirmationresults in dissatisfaction...results in lower than expected performance
- 30simple confirmationthis will also result in satisfaction
- 31is under promising and over delivering always a good strategy?No not always
- 32what does perceived quality depend onexpectations
most product experiences are ambiguous
ex: premium vs regular gas
premium perceived higher quality so greater expectation - 33how to manage expectations1. spell out clear, definitive and simple messages to customers
2. set expectations accuracy
3. communicate consistent messages - 34attribution theoryexplains how individuals think about explanation for or causes of effects or behaviors....when product or service does not fulfill consumers needs, they will attempt to find an explanation based on three factors
focus, controllability, stability, - 35What are the three factors that influence who gets blamed in the attribution theory1. focus (affects blame) is the problem consumer related or marketer related?
2. controllability (affects level of anger): is the event under the customers or marketers control?
3. stability (how bad is the outcome and how often does it occur): is the cause of the event temporary or permanent - 36how can consumption be increased1. extending time and place of consumption
2. demonstrating new uses/benefits - 37what are the affects of customer satisfaction1. positive wom
2. encourage customers to complain
3. customer satisfaction does not just depend on perceived quality but also is influence by subjective expectations - 38what are the determinants for a successful product/innovation1. relative advantage
2. compatibility
3. complexity
4. trialability
5. observability - 39What is the order that people will adopt new products[the early market]
1. innovators (tech enthusiast) 2.5%
2. early adopters (visionaries) 13.5%
the chasm
[the mainstream market]
3. early majority (pragmatist) 34%
4. late majority (conservatives) 34%
5. lagers (skeptics) 16% - 40What are the methods to create wom1. create an image that is unique/exciting/rebellious
2. provide a free trail/free sample
3. encourage incentives for referrals
4. encourage wom in advertising
5. information (hot news), cool gadgets, loaner car
think Uber - 41Benefits of wom1. sender and receiver are both consumers
2. more credible than advertising - 42what is a good source of womopinion leaders
- 43what are characteristic of opinion leaders1. similar to receiver
2. greater status
3. involved with the product
4. outgoing/ gregarious
5. seek others' opinions themselves - 44what are connectorsconnect people with information but there are many weak relationship/ties
- 45what are the different types of reference groups1. membership: family, friends
2. aspiration: order siblings, celebrities, ethnic groups
3. dissociative: people you don't want to be associated with - 46what are the ways reference groups influence people1. Value expressive influence
2. information influence
3. normative influence - 47Value-Expressive Influence1. express your group identity
2. associate with inspirational groupps - 48information influencesources influence consumers simply by providing information
- 49normative influencehow other people influence our behavior through social pressures (norms)
- 50why do companies go interntional1. untapped market
rising incomes, large populations (china india)
2. saturated domestic markets
opp to grow abroad, faster growth rates
3. different countries are in different stages of their product life cycles - 51what is cultureLEARNED set of shared meaning, rituals, norms, and traditions that are shared among members of an org or society
- 52what are the elements of culture1. material culture (culture icons: books, music buildings, products)
2. abstract culture: language, beliefs, attitude, values, religion - 53what is the iceberg modelthere is evident culture which is the tip of the iceberg (material culture)
and there is deep culture (underlying values, beliefs) --there is more of deep culture - 54what are hofstede's cultural dimensionsfeminism vs masculinity
individualism vs. collectivism
uncertainty avoidance
power distance - 55Individualism vs CollectivismFocus on the individual or on the group?
Individualism: Focus on differentiation, the need to be unique
Collectivism: Focus on similarity, greater need to blend in - 56Uncertainty AvoidanceLow UA: Risk seeking, high tolerance of ambiguity, few well-defined rules
High UA: Risk averse, low tolerance of ambiguity, many rituals to guide behavior - 57Power DistanceLow Power Distance: open organizations, a lot of interaction between people of different status
High Power Distance: hierarchical organizations, respect for authority, acceptance of unequal rewards - 58Masculinity-FemininityMasculine Cultures: assertive, materialistic, focused on achievement
Feminine Cultures: nurturing, high environmental concern - 59What are some problems regarding global marketingthere needs to be global customization:
difference products have different roles/meanings
there are language and translation problems
brand names don't make sense sometimes - 60what are the some demographics1. total number of consumers
2. age groups
3. generations
4. geography
5. economic resources
6. global demographics - 61total number of peopleconsiders not only the number of people but the: need to buy, ability to buy, willingness to buy
- 62what does the evolution of the total population depend onevolution of total population is based on: births, deaths, new migration
- 63how do births effect the total number of consumersbirth rate: live births/1000 people
fertility rate: live births/1000 women of childbearing age
total fertility rate: average number of children women are having currently - 64what is the total fertility rate looking likebest way to dictate births:
replacement rate: 2.1
Europe, Japan, South Korea...lower fertility rate
developing countries=higher rates - 65how does population momentum affect total number of consumersgrowth also dependent on current age distribution
population pyramid: a graph that shows the distribution of population by age and sex for on country - 66what is the average life expectancy75 years women>male increasing
- 67what are the migration rates900,000/yr
US population has grown.... - 68what is the most attractive age group and least attractive age groupyoung adults most attractive, but they are more likely to be unloyal to brands
elderly least attractive - 69who are the baby boomerslarge cohort
born 1946-1964
starting to retired
45-65 years of age
values: individualistic, freedom, concern for the future, family protection - 70who are generation Xborn 1965-1976
cynics, slackers, - 71who are generation Yborn in the years 1977-1994
children of the baby boomers
more tech savvy
individualistic, diverse - 72how does gender and sexual orientation affect products?razors: men vs women
magazines: Cosmo vs SI - 73how does geography affect marketingmost firms target specific cities, regions...affects distribution
cities versus rural areas
downtown>suburbs> exurbs
all Americans: +50% in cities
states: highest total increase: California & Florida - 74what are pschographicsconsumer characteristics that are not immediately obvious
(covert characteristics)
tells you why people consume
more determinant of consumers behavior, but harder to measure compared to demographics - 75what are psycho graphics based on?personality, values, and lifestyle
- 76what are personalities based off of (psychographics)3 different perspectives:
psychoanalytic theories
social psychological theories
trait factor theories - 77psychoanalytic theoriespersonality consists of:
ID: immediate gratification
Ego: Ref
Super Ego: Internationzation of Social Norms
unconscious mechanism
suppressed desires may be symbolically experience through product consumption - 78what are some ways to uncover unconscious and suppressed desires (psychoanalytic theories)in depth interviews
projective techniques
problems: very subjective, hard to verify...too far fetched - 79social psychological theoriescategorizes consumes based on their social tendencies
1. compliant: moving toward other (name brand products)
2. detached (moving away from others--tea drinkers)
3. aggressive moving against others - 80Trait Factor TheoriesConsumers score chronically high or low on certain traits
Together, these traits constitute your personality
Traits:
Innovativeness
Materialism
Self-Consciousness
Need for Cognition
Big Five Model:
Extraversion
Agreeableness
Neuroticism
Conscientiousness
Openness to Experience - 81What are the problems with personality measuresLow correlations with consumer behavior
Explains only 10% of variance
Hard to measure
Unreliable measures
Do stable personalities really exist? - 82how do you solve issues of personality measuresUse for intermediate stages
Combine with demographics
Use broader concepts: values or lifestyles - 83How do you used valuesDemographics > Values
Values < Demographics - 84Values: What is the Rokeach Value Scale incorporateTerminal elements (desirable end state) & Instrumental elements (modes of conduct)
Happiness/Freedom & Politeness/Ambition - 85Value: What does the Shwartz Value Scale incorporate10 value types
Universalism & Benevolence (compatible)
Achievement & Benevolence (conflict) - 86Values: how is laddering usedladdering helps one see attributes that lead to beliefs that lead to values
Ex: fancy label. more feminine. sophisticated image. impress others. self esteem - 87Lifestyles – VALS2Ideals (Principle Oriented)
Buy products based on own opinions
Achievement (Status Oriented)
Buy products based on opinions of others
Self-Expression (Action Oriented)
Buy products to change your environment, to create an experience - 88what are the problems with Lifestyles – VALS2Problems
Social desirability
Ethnocentric (bible)
Categorical
Validity? (algorithm is proprietary)
Demographics seem to explain a lot - 89what does personality focus on?Suppressed motives (psychoanalytic)
Attitude towards others (social psychological)
Stable traits (trait-factor theories) - 90How do we find out values?Demographics <>Values
Laddering: Attributes > Values - 91How does one uncover lifestyle habits?VALS2: Resources & Primary Motivation
- 92do consumers make rational decisions?no the make decisions based on few observations and many biases (Projection bias,Reasoning by analogy, Ignore regression to the mean, Status quo bias)
- 93Projection biasThe tendency to assume that others share similar values, beliefs, thoughts or preferences
- 94Reasoning by analogyFocus on surface similarities
- 95Ignore regression to the meanThose with extreme scores on any measure at one point in time will, for purely statistical reasons, probably have less extreme scores the next time they are tested
- 96Status quo biasResistance to change behavior
- 97Are we rational when we search?no because we use Availability bias and Confirmation bias
- 98Confirmation biasFind information that is consistent with attitudes
Find information that proves, but do not usually try to falsify - 99Availability biasRecall information that is more accessible, but not necessarily more diagnostic
- 100are we rational when estimating risk?no because we have Self-Positivity Bia (tend to see ourselves in a better light and strangers in a worse light)
- 101Are more rational decision necessarily better?no because we can be losing out on other potential opportunities
ex: loss aversion.... - 102do consumers know what makes them happy?Not really
- 103does wealth make you happyinconclusive
- 104does marraige make you happyinconclusive (makes you unhappy in the long run)
- 105does youth make you happyhappiness steadily decreases and rises when one is 50
- 106does education make you happyinconclusive
- 107does gender make you happyinconclusive
- 108does relgion make you happyyes
- 109does familly make you happyyes
- 110Constructing Happiness (Schwarz)Mood affects rated happiness
Weather affected appraisal
(Except when asked about weather)
Accessible information affects rated happiness
How happy are you with your life in general? How often do you normally go out on a date? - 111What are the three selvesthe wanting self (before): Choice
Forecasting Anticipation
The
Experiencing
Self (during): Sensation
Emotion
Reaction
The
Remembering
Self (After): Memory
Regret
Interpretation - 112“Peak-End Rule”The episode is evaluated as a composite moment, which gives much weight to peak pain and to pain at the end
- 113Duration-neglectConsumers are relatively insensitive to duration
Vacation, massage (length, or peak & end) - 114what causes happinesscognitive (satisfaction) + affective (joy/happiness)
- 115what are the six main source of joySocial contacts/close relationships
Sexual activity
Success, achievement
Physical activity/exercise
Nature, reading, music
Food & drink - 116Satisfaction: Difficult to predictObjective state is poor correlate
Except for cases of extreme poverty - 117Passive Decision SupportMake all relevant information available
Make sure it’s the right information (e.g., APR, GPM)
Don’t assume that it will be used properly! - 118Choice ArchitectureSmart Defaults: Organ Donation
Bottomless Bowl Experiment
Ate 73% more with bottomless bowls
Yet, they didn’t think they ate more - 119What is the CAD Scale of interpersonal orientations1. compliant: moving toward other (name brand products)
2. aggressive moving against others
3. detached (moving away from others--tea drinkers)
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- Flashcards on MKT 450 Final Exam , created by Ariadne B. Torre on 13/05/2014.
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