BMKT 337 Exam 3 Study Guide

Mental shortcuts people use to make quick decisions, often based on limited information.

The idea that individuals are rational and make decisions based on maximizing their own utility.

The concept that people make decisions based on limited information, cognitive abilities, and time constraints.

A theory that suggests individuals are more sensitive to potential losses than potential gains.

A heuristic where people make judgments based on how easily information comes to mind.

A one-sided relationship where consumers feel like they know a celebrity or public figure personally, often fostered through social media.

Individuals who hold a significant influence over the opinions and behaviors of others within a particular community or group.

Marketing strategies that leverage the power of associations and connections to create a positive image or boost brand perception.

Marketing strategies based on the power of word-of-mouth communication, relying on consumer recommendations and reviews.

Sensory marketing is a type of marketing that utilizes the five senses - sight, sound, smell, taste, and touch - to create an emotional connection with the product or brand.

Psychographics are a way to understand consumers' attitudes, values, beliefs, interests, hobbies, lifestyles, and motivations.

Common marketing actions to reduce cognitive dissonance include offering guarantees, providing positive reviews, emphasizing the benefits of the choice, and offering post-purchase support.

The multiple-trait approach to studying individual differences in consumer behavior looks at several different traits together to understand how they influence behavior.

VALS (Values, Attitudes, Lifestyles) is a psychographic segmentation strategy that groups consumers based on their values, attitudes, and lifestyles.

PRIZM (Potential Rating Index by Zip Market) is a segmentation strategy that groups consumers based on their geographic location and demographic characteristics.

VALS groups people based on their values and motivations, while PRIZM uses geography and demographics. VALS is more focused on the 'why' of behavior, while PRIZM looks at the 'where' and 'who'.

A narrative is a story that transports the listener or reader into another world, leading to increased engagement and persuasion.

Narrative transportation is a psychological state where individuals become absorbed in a narrative, experiencing it as if it were real.

Individual differences are unique characteristics that make consumers distinct from one another. These differences influence how consumers perceive, process, and respond to marketing stimuli.

Trait theory suggests that personality traits are relatively stable and enduring, influencing consumer behavior. For example, an individual might be described as 'impulsive' or 'risk-averse,' which impacts their buying decisions.

Need for cognition (NFC) refers to the individual's motivation to engage in and enjoy effortful cognitive activities, like thinking carefully about purchase decisions. People with high NFC enjoy processing complex information.

Need for affect (NFA) represents the individual's motivation to approach or avoid situations that elicit strong emotions. Consumers high in NFA seek out emotional experiences, often driven by feelings rather than logic.

Locus of control refers to the individual's perception of how much control they have over their own lives. Internal locus of control means individuals feel they have control over their outcomes, while external locus of control means individuals perceive external factors are in charge.

Expectancy-disconfirmation theory suggests that consumer satisfaction depends on the difference between their expectations of a product or service and their actual experience with it.

Equity theory suggests that consumers evaluate the fairness of an exchange by comparing their inputs and outcomes to those of others. If they perceive an inequity, they may feel unhappy and adjust their behavior.

Cognitive dissonance occurs after a purchase when a consumer experiences conflicting thoughts or feelings about their decision. It's a discomfort that arises from inconsistency between beliefs and behaviors.