ADV2301 Consumer Behavior Exam 1 Study Guide PDF

ADV2301 CONSUMER BEHAVIOR EXAM 1 STUDY GUIDE Note. Multiple choices – 32 questions; The exam accounts for 20 points of the total grade. You will have 50 minutes. Ch.1 Intro to Consumer Behavior Consumer behavior: Pre Purchase -> Purchase -> Post-purchase Segmenta...

ADV2301 CONSUMER BEHAVIOR EXAM 1 STUDY GUIDE Note. Multiple choices – 32 questions; The exam accounts for 20 points of the total grade. You will have 50 minutes. Ch.1 Intro to Consumer Behavior Consumer behavior: Pre Purchase -> Purchase -> Post-purchase Segmentation Strategies Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status. the issue is that there are nuances within the demographics not all women are the same Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate. Psychographic segmentation is based on variables such as values and lifestyle. Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. The 80/20 Rule: 80% of a company's revenue is generated by 20% of its total customers. Role theory: nostalgic attachment ​ Much of consumer behavior resembles actions in a play. Consumers seek the appropriate products to put on a good performance Nostalgic attachment ​ One of the types of relationships a person may have with a product ​ When the product serves as a link with a past self ​ ​ Jelly cats, Squishmellows Ch.3 Perception Perception: The process by which people select, organize, and interpret these sensations. Endowment Effect - Individuals tend to value things highly if they own them ​ Touch creates a feeling of psychological ownership Sensory marketing Marketing that engages the consumers’ senses and affects their perception, judgment, and behavior. Sensory thresholds: The areas within which stimuli can make a conscious impact on awareness Absolute threshold ​ The minimum amount of stimulation that can be detected Differential threshold ​ The range of the change of a stimulus or differences between two stimuli that can be detected. Just noticeable difference ​ Minimum change that can be detected. Advertisers generally want to exceed the JND. Not ALWAYS Price increases Size decreases Weber’s Law A consumer's ability to detect a difference between two stimuli is relative. Attention: The extent to which processing activity is devoted to a particular stimulus ​ Divided – multitasking Limited – a limited span Strategies for enhancing attention to ads: intensity, size, contrast, movement, surprise/novelty, involvement Gestalt Psychology A school of thought that maintains that people interpret meaning from the totality of a set of stimuli rather than from an individual stimulus ​ Seeing things as wholes rather than parts  Principles of closure ​ People perceive incomplete information as if it is complete. ​ Similarity ​ Consumers group together objects that share similar physical characteristics. Figure-ground One part of the stimulus will dominate (the figure) while the other parts recede into the background (ground) Ch.4 Learning and Memory Learning is any long-term memory or behavior change caused by experience or information processing. Incidental learning: unintentional acquisition of knowledge Behavioral learning: assumes that learning takes place as the result of responses to external events Classical conditioning: occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Pavlov’s experiment ​ neutral stimulus, unconditioned stimulus, conditioned response, conditioned stimulus, Extinction: If the conditioned stimulus (bell) is presented repeatedly in the  absence of the unconditioned stimulus (food), the conditioned response(salivate) will eventually disappear. ​ Stimulus generalization ​ The conditioned response may also occur because of similar stimuli (bell sound – key jangling) Instrumental conditioning/ Operant conditioning: ​ Occurs as the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes. Law of effect If a response is followed by a favorable consequence, that response will be strengthened. If a response is followed by an unpleasant consequence, it will be weakened. Positive reinforcement ​ Good behavior – rewards – learn that the behavior is good Increase behaviors to approach positive Negative reinforcement ​ Remove negative – rewards – learn that the removal is good Increase behaviors to remove negative ​ Not late to class = add in an extra point Punishment ​ Bad behavior – punishment – learn that the behavior is bad Prevent behaviors to remove negative Late to class = loose a point Frequency marketing: rewards regular purchasers with prizes that get better as they spend more Cognitive learning ​ Observational learning: occurs when people watch the actions of others and note the reinforcements they receive from others. Modeling: Imitating the behavior of others Memory Script: a sequence of events an individual expects to occur Long-term memory ​ Relatively permanent storage of information  ​ Unlimited capacity ​ Short-term memory ​ Brief storage of information currently being used 15-30 seconds Rehearsal An active and dynamic process Limited capacity: 5-9 bits of information Semantic memory ​ the basic knowledge and feelings an individual has about a concept Episodic memory ​ A person's unique memory of a specific event Associative network: Spreading activation ​ If a stimulus activates a node in the schema, it will also activate other linked nodes. Ch.5 Motivation The driving force behind human actions that push consumers to address real needs Need: a perceived lack of something Want: the specific pathway to fill the need gap Expectancy theory ​ A cognitive approach Expectations of achieving desirable outcomes motivate behavior Drive theory Biological needs Drive (i.e., unpleasant states of arousal) Motivation for reducing the arousal and returning to homeostasis (i.e., a stable state of physiological arousal) ​ Utilitarian needs - The consumer considers the objective, functional attributes of the product Hedonic needs - The consumer considers the subjective, pleasurable or aesthetic aspects of the product. Most purchases are motivated by hedonic goals, pleasure related. Maslow’s hierarchy of needs ​  Motivational conflicts ​ Approach-Approach Conflict Between 2 desirable alternatives Post-decision dissonance Bundle benefits together ​ ​ Approach-Avoidance Conflict Between the desirable and undesirable aspects of a single item (e.g., short-term rewards vs. long-term costs) You deserve it! Avoidance-Avoidance Conflict Between 2 alternatives that are predominantly negative Stress the unforeseen benefits of choosing one option ​