Mrkt3104 HBI Final Review PDF

\#\# Chapter 7: Personality, Lifestyle & Values **[\#\#\# 1. Brand-Consumer Alignment]** \- People tend to prefer brands that match their personality and values. \- Example: If someone is sophisticated, they might prefer luxury brands. **[\#\#\# 2. Influence of Lifestyle on Choices]** \- A pers...

\#\# Chapter 7: Personality, Lifestyle & Values **[\#\#\# 1. Brand-Consumer Alignment]** \- People tend to prefer brands that match their personality and values. \- Example: If someone is sophisticated, they might prefer luxury brands. **[\#\#\# 2. Influence of Lifestyle on Choices]** \- A person\'s lifestyle affects what products and services they choose. \- Consumer Decision-Making Styles: \- Innovators: Enjoy trying new products and trends. \- Conservatives: Prefer familiar choices. **[\#\#\# 3. Brand Loyalty and Personality Traits]** \- People who seek security often stick with brands they know, while those open to new experiences like to explore different brands. **[\#\#\# 4. Consumer Behavior Segmentation]** \- Psychographic Segmentation: This means grouping consumers based on psychological traits like personality, not just age or gender. **[\#\#\# 5. Impulse Buying vs. Rational Decision-Making]** \- Impulse Buying: Driven by traits like impulsivity (buying without thinking). \- Rational Decision-Making: Involves careful thought and planning. **[\#\#\# 6. Consumer Engagement with Marketing]** \- Impact of Personality: How people react to marketing messages can depend on their personality traits. \- Customization: Tailoring messages to fit different personalities can make ads more effective. **[\#\#\# 7. Online Behavior]** \- Social Media Interaction: Extroverts are usually more active online, while introverts might prefer private interactions. **[\#\#\# 8. Influence of Reference Groups]** \- Social Identity: Personality traits influence which groups people feel connected to, affecting their brand choices. **[\#\#\# 9. Brand Personality]** \- Brands have human-like traits, making them relatable to consumers. **[\#\#\# 10. Brand Equity]** \- This is how much more consumers are willing to pay for a specific brand compared to generic versions. **[\#\#\# 11. Psychographics in Marketing]** \- Analyzing consumers\' psychological traits helps businesses understand motivations and preferences. **[\#\#\# 12. Understanding Values]** \- Values are beliefs that people feel strongly about. \- Core Values: Fundamental beliefs that define a culture. **[\#\#\# 13. Enculturation and Acculturation]** \- Enculturation: Values learned from family and society. \- Acculturation: Values learned from other cultures. **[\#\#\# 14. Collectivism]** \- A cultural value that emphasizes group harmony and cooperation over individual desires. **[\#\#\# 15. Conventions and Crescive Norms]** \- Convention: Widely accepted practices or customs in a society. \- Crescive Norm: Social norms that develop gradually over time through interactions. **[\#\#\# 16. Importance of Knowing Values in Business]** \- Values guide behavior and decision-making. Understanding them helps businesses connect with customers, enhance loyalty, and improve satisfaction. \#\# Chapter 8: Attitude and Persuasive Communication **[\#\#\# 1. Definition of Attitude]** \- Attitude is a long-lasting opinion about people, objects, or issues. **[\#\#\# 2. Attitude Object (Ao)]** \- The thing that we have an attitude toward, like a product or idea. **[\#\#\# 3. Functions of Attitudes]** \- Utilitarian: Does it bring pleasure or pain? \- Value-Expressive: What does this product say about you? \- Ego-Defensive: What self-doubt does it help you overcome? \- Knowledge: Does it help you understand things better? **[\#\#\# 4. ABC Model of Attitude]** \- Affect: How you feel about something. \- Behavior: What you plan to do regarding that thing. \- Cognition: What you believe about that thing. **[\#\#\# 5. Hierarchy of Effects]** \- Stages: 1\. Awareness: Knowing a product exists. 2\. Interest: Wanting to know more about it. 3\. Desire: Wanting to own it. 4\. Action: Actually buying it. **[\#\#\# 6. Consistency Principle]** \- People prefer things that make sense and fit with what they already know. **[\#\#\# 7. Cognitive Dissonance]** \- The discomfort felt when things don't match up or are inconsistent. **[\#\#\# 8. Sources of Attitudes]** \- Copied: Learning from important people like parents. \- Reward or Punishment: Influences from social experiences. \- Peer Influence: Friends can change our attitudes. \- Persuasive Communication: Using reasoning to change attitudes. **[\#\#\# 9. Self-Perception Theory]** \- We determine our attitudes by observing our own behavior. **[\#\#\# 10. Balance Theory]** \- Used to see if a relationship between a person, another person, and an object is balanced or unbalanced. **[\#\#\# 11. Changing Attitudes]** \- Techniques: \- Reciprocity: Giving something to receive something back. \- Scarcity: Making people want what's rare. \- Authority: Trusting experts. \- Consistency: Staying true to past statements. \- Liking: Agreeing with people we like. \- Consensus: Following what others do. **[\#\#\# 12. Normative Influence]** \- Acting based on what we believe others expect from us. \#\# Chapter 9: Decision Making **[\#\#\# 1. Hyper-choice]** \- Having too many options can make it hard to decide. **[\#\#\# 2. Cognitive Overload]** \- Too many choices lead to confusion and bad decisions. **[\#\#\# 3. Exploration vs. Exploitation]** \- Exploration: Trying new things. \- Exploitation: Sticking with what you know. **[\#\#\# 4. Decision-Making Heuristics]** \- Simple strategies used to make decisions easier, like choosing familiar brands. **[\#\#\# 5. E-commerce]** \- Buying and selling online. **[\#\#\# 6. Benefits of E-commerce]** \- 24/7 shopping, no traffic, more choices, easy price comparisons, fast delivery. **[\#\#\# 7. Limitations of E-commerce]** \- Security concerns, not being able to touch products, and potential return costs. **[\#\#\# 8. Strategies for Hyper-choice]** \- Customization: Allowing customers to tailor products. \- Strategic Marketing: Simplifying information to help decisions. \- Niche Strategies: Focusing on specific markets. \- Post-Purchase Satisfaction: Good support after buying. \#\# Chapter 10: Buying, Using, and Disposing **[\#\#\# 1. E-commerce Benefits]** \- Shopping anytime, avoiding traffic, and having more choices. **[\#\#\# 2. Limitations of E-commerce]** \- Security issues and not being able to see products in person. **[\#\#\# 3. Sharing Economy]** \- Sharing or renting instead of owning, like using Uber. **[\#\#\# 4. Economic Efficiency]** \- Sharing reduces waste and benefits the economy. **[\#\#\# 5. Trust and Reputation Systems]** \- Building trust through reviews and ratings on platforms. **[\#\#\# 6. Product Disposal]** \- Strong Attachment: Difficulty in throwing away things you like. \- Ease of Disposal: Considering how easy it is to get rid of something before buying. \- Preemptive Buying: Buying new items before getting rid of old ones. \#\# Chapter 11: Group Influence and Social Media **[\#\#\# 1. Reference Groups]** \- Groups that influence our beliefs and behaviors. **[\#\#\# 2. Types of Social Power]** 1\. Referent Power: Power from admiration. 2\. Information Power: Power from having information. 3\. Legitimate Power: Power from a recognized position. 4\. Expert Power: Power from knowledge. 5\. Reward Power: Power from giving rewards. 6\. Coercive Power: Power from fear of punishment. **[\#\#\# 3. Brand Communities]** \- Groups of consumers who share interests in a specific brand. **[\#\#\# 4. Consumer Tribes]** \- Groups sharing emotions and lifestyles connected to brands. **[\#\#\# 5. Membership vs. Aspirational Reference Groups]** \- Membership: Groups you belong to (e.g., friends). \- Aspirational: Groups you admire but don't belong to (e.g., celebrities). **[\#\#\# 6. Conformity]** \- Adjusting beliefs or behaviors to fit in with a group. **[\#\#\# 7. Word of Mouth (WOM)]** \- Sharing opinions and experiences with others, influencing purchases. **[\#\#\# 8. Opinion Leadership]** \- Influencers who shape consumer choices through their expertise. **[\#\#\# 9. The Horizontal Revolution]** \- Shift from top-down communication to peer-to-peer sharing on social media. \#\# Chapter 12: Culture **[\#\#\# 1. Definition of Culture]** \- Shared beliefs, customs, and behaviors of a group. **[\#\#\# 2. Cultural Dimensions]** 1\. Individualism: Focus on self and immediate family. 2\. Collectivism: Focus on group goals and harmony. 3\. Power Distance: Acceptance of unequal power distribution. 4\. Masculinity: Emphasis on achievement and assertiveness. 5\. Femininity: Emphasis on relationships and quality of life. 6\. Uncertainty Avoidance: Comfort with uncertainty. 7\. Long-Term vs. Short-Term Orientation: Focus on future vs. present. 8\. Indulgence vs. Restraint: Focus on personal happiness vs. strict rules. **[\#\#\# 3. Norms]** \- Enacted Norms: Rules people actually follow. \- Crescive Norms: Unspoken rules learned through social interactions. **[\#\#\# 4. Myths and Rituals]** \- Myths: Stories explaining beliefs. \- Rituals: Repeated actions with meaning. **[\#\#\# 5. Sacred vs. Profane Consumption]** \- Sacred: Items with religious or spiritual significance. \- Profane: Everyday items without special meaning. **[\#\#\# 6. Theme Parks and Sacred Places]** \- Locations with entertainment or cultural significance. **[\#\#\# 7. Contamination and Resacralization]** \- Contamination: When something gains sacredness due to significance. \- Resacralization: When something that was ordinary becomes sacred again. **[\#\#\# 8. Diffusion of Innovation]** \- How new ideas or products spread through society. **[\#\#\# 9. Global Consumer Culture]** \- Similar consumer behaviors across different countries due to globalization. \#\# Chapter 13: Sub-culture **[\#\#\# 1. Definition of Subculture]** \- Smaller groups within a larger culture that have their own beliefs and practices. **[\#\#\# 2. Consumption Subcultures]** \- Groups that share common preferences related to consumption, like hobbies. **[\#\#\# 3. Stereotypes]** \- Oversimplified beliefs about groups based on characteristics like race or gender. **[\#\#\# 4. Age Cohort]** \- A group of people born during the same time period, sharing similar experiences. **[\#\#\# 5. Mature Consumers]** \- Older consumers who value independence, family, and giving back to society. **[\#\#\# 6. The Grey Market]** \- Trade of genuine goods through unauthorized channels. **[\#\#\# 7. Family Life Cycle]** \- Stages a family goes through, from marriage to having children and becoming empty nesters. **[\#\#\# 8. Geodemographic Analysis]** \- Studying demographics in specific areas to understand consumer behavior. **[\#\#\# 9. Material Parenting]** \- Providing material goods to children as a way to show love. **[\#\#\# 10. Nuclear Family]** \- A family unit consisting of parents and their children living together. **[\#\#\# 11. Perceived Age]** \- How old others think a person is based on appearance and behavior. **Important Questions Summary** **[1. Nuclear Family vs. Extended Family:]** A nuclear family has parents and children living together, while an extended family includes other relatives. **[2. Cultural Dimensions Example:]** Japan is collectivist, values hierarchy, and prefers structure. **[3. Use of Myth in Marketing:]** Coca-Cola uses the Santa Claus myth in its Christmas ads to evoke feelings of joy. **[4. Ritualistic Consumer Behavior:]** Following specific routines when buying or using products, like always having coffee in the morning. Questions Multiple Choice Questions (20 questions) 1\. Which of the following best describes psychographic segmentation? \- A) Grouping consumers by age and gender \- B) Grouping consumers based on their lifestyle, values, and personality traits \- C) Analyzing market trends over time \- D) Focusing solely on consumer income levels 2\. What is the primary function of attitudes in consumer behavior? \- A) To reflect social norms \- B) To guide purchasing decisions \- C) To determine brand loyalty \- D) To influence advertising strategies 3\. In the ABC model of attitude, \'Cognition\' refers to: \- A) How one feels about a product \- B) The beliefs one holds about a product \- C) The actions one takes regarding a product \- D) The emotions associated with a brand 4\. Consumers who enjoy trying new products and trends are categorized as: \- A) Conservatives \- B) Innovators \- C) Followers \- D) Traditionalists 5\. The discomfort felt when a person holds conflicting beliefs is known as: \- A) Cognitive dissonance \- B) Emotional intelligence \- C) Behavioral inconsistency \- D) Attitudinal conflict 6\. Which of the following is NOT a function of attitudes? \- A) Utilitarian \- B) Value-Expressive \- C) Ego-Defensive \- D) Descriptive 7\. A brand that is perceived as sophisticated may appeal to consumers who identify with which of the following personality traits? \- A) Adventurous \- B) Practical \- C) Sophisticated \- D) Impulsive 8\. The process of learning values from family and society is called: \- A) Acculturation \- B) Socialization \- C) Enculturation \- D) Assimilation 9\. Which principle suggests that people prefer consistency in their beliefs and actions? \- A) Reciprocity \- B) Cognitive Dissonance \- C) Consistency Principle \- D) Normative Influence 10\. The psychological trait that leads consumers to prefer familiar brands over new ones is known as: \- A) Openness to Experience \- B) Conscientiousness \- C) Need for Security \- D) Extroversion 11\. What does brand equity refer to? \- A) The total sales of a brand \- B) The perceived value of a brand compared to generic options \- C) The market share of a brand \- D) The brand\'s advertising budget 12\. Which of the following is an example of normative influence? \- A) Buying a product because friends recommend it \- B) Choosing a product based on personal preference \- C) Researching a product before making a purchase \- D) Impulse buying during a sale 13\. The term \"hyper-choice\" refers to: \- A) Having too few options \- B) Having too many options leading to decision paralysis \- C) The trend of minimalism in consumer choices \- D) The impact of digital marketing on consumer behavior 14\. Which of the following best describes collectivism? \- A) Emphasis on individual achievement \- B) Focus on group harmony and cooperation \- C) Preference for competition \- D) Valuing personal freedom over social responsibility 15\. A brand's human-like traits are referred to as: \- A) Brand Identity \- B) Brand Equity \- C) Brand Personality \- D) Brand Loyalty 16\. Which of the following is a characteristic of impulse buying? \- A) Planned and rational decision-making \- B) Emotional and spontaneous purchasing \- C) Influenced by extensive research \- D) Consistent with previous purchases 17\. The theory that suggests people determine their attitudes by observing their behavior is called: \- A) Self-Perception Theory \- B) Social Learning Theory \- C) Cognitive Dissonance Theory \- D) Behavioral Theory 18\. An example of a crescive norm is: \- A) A widely accepted fashion trend \- B) A law passed by the government \- C) A formal guideline in a workplace \- D) A personal belief system 19\. Which of the following is a key component of the hierarchy of effects model? \- A) Awareness \- B) Satisfaction \- C) Loyalty \- D) Brand Awareness 20\. The process of adapting to the values of another culture is known as: \- A) Enculturation \- B) Assimilation \- C) Acculturation \- D) Socialization \#\#\# True or False Questions (10 questions) 1\. T/F: [Brand loyalty] is primarily influenced by [emotional attachment]. 2\. T/F: Cognitive overload can enhance decision-making efficiency. 3\. T/F: Consumers with [high openness] to experience are likely to [try new brands]. 4\. T/F: The [self-perception] theory states that behavior [influences attitudes]. 5\. T/F: Collectivist cultures prioritize individual goals over group goals. 6\. T/F: Scarcity is a principle used to influence consumer behavior. 7\. T/F: Attitudes are static and do not change over time. 8\. T/F: [Reference groups] can significantly [impact consumer choices]. 9\. T/F: The utilitarian function of attitudes is related to pleasure and pain. 10\. T/F: Impulse buying is always a negative behavior. \#\#\# Long Answer Questions (8-12 questions, 40 marks total) **1. Discuss the role of personality traits in shaping consumer behavior. Provide examples of how different traits influence brand preferences.** Personality affects what people buy. Extroverts may like brands that encourage socializing, like Coca-Cola. Careful people might choose reliable brands, like Toyota. **2. Explain the concept of cognitive dissonance and its implications for marketers. How can brands address consumer dissonance after a purchase?** Cognitive dissonance happens when a consumer feels unsure about their purchase. Marketers can help by reassuring them with follow-up messages, guarantees, or positive reviews to make them feel better about their choice. **3. Analyze the hierarchy of effects model in detail. Discuss its relevance in designing effective advertising campaigns.** The hierarchy of effects model shows the steps consumers take from learning about a product to buying it. Marketers use this model to create ads that guide people through each step: awareness, interest, desire, and action. **4. Describe how lifestyle influences consumer decision-making. Include examples of different consumer segments and their purchasing behavior.** Lifestyle affects what people buy. For example, health-conscious people might choose organic products, while tech lovers prefer the newest gadgets. Marketers can use this information to target specific groups with the right products. **5. Evaluate the impact of social media on consumer attitudes and behaviors. How do online interactions shape brand perceptions?** Social media greatly affects what people think about brands. Positive reviews and interactions can boost loyalty, while negative feedback can hurt a brand's reputation. That's why managing social media is important. **6. Discuss the importance of understanding cultural values in marketing. How can brands adapt their strategies to align with different cultural contexts?** Cultural values influence what people buy. Brands can connect with different groups by adjusting their messages, using local symbols, and respecting customs. **7. Explain the concept of brand personality and its significance in building brand equity. Provide examples of brands with strong personalities.** Brand personality means giving a brand human traits that help consumers connect with it. For example, Nike represents determination and empowerment, which creates strong emotional bonds with customers. **8. Analyze the effects of normative influence on consumer behavior. How do social expectations shape purchasing decisions?** Normative influence happens when people buy products to fit in with social expectations. For example, fashion trends can make consumers buy certain brands to follow the crowd.