Specific Test Topics

Question 1

Consumer behavior is ______-_______

Answer 1

multi-faceted (study is comprised of many disciplines)

Decisions are multi-faceted as well (aka consumption behavior)

Question 1

human thoughts and actions; psychological processes (thoughts, feelings, behavior…some subconscious); a marketing specialty or field of study.

Answer 1

consumer behavior

Question 2

Consumer Behavior theory that describes consumption-related behavior

Answer 2

Consumer Value Framework (CVF)

Question 3

_________ ________ is the study of consumption.

Answer 3

Consumer Behavior

Question 4

What 4 areas of study make up consumer behavior?

Answer 4

1. Economics
2. Psychology
3. Anthropology
4. Marketing

Question 5

What are the 6 steps of the Basic Consumption Process?

Answer 5

1. Need
2. Want (addresses need)
3. Exchange (what you give for what you get)
4. Cost and Benefits ($ outlay of cash, time, learning a new technology… what do you get?)
5. Reaction (feelings aka affect)
6. Perception of Value (recommend, repurchase, avoid)

Question 6

T or F: An example of a NEED in the basic consumption process is internet access/to be “connected” – belonging. Therefore, a want would be a computer.

Answer 6

True (the want addresses the need)

Question 7

People “hire” products to do a specific job in their lives.
A milkshake for example → makes consumers’ boring commutes to work more interesting, keep them full until lunch, etc. Very functional.
Later in the day, consumers “hire” a milkshake to reward children, serve as a fun treat, create a shared family experience, etc. The job in this case is emotional/social, not functional.

Understanding the WHY behind consumption (what is a product “hired” for) helps businesses design better products, tailor marketing, win loyalty, etc.

What theory is this?

Answer 7

Jobs to Be Done Theory (hiring a product to do a specific job in their lives)

Question 8

the connection between consumer and brand or service provider

Answer 8

relationship quality

Question 9

Relationship quality can increase ______ ______.

Answer 9

ultimate value

Question 10

What does CRM stand for?

Answer 10

Customer Relationship Management

Question 11

What two things are involved in CRM?

Answer 11

1. Relationship quality
2. Consumer (or Customer) Lifetime Value

Question 12

the approximate worth of a customer to a company in economic terms; overall profitability of an individual consumer

Answer 12

Consumer (or Customer) Lifetime Value (CLV)

Question 13

the activities based on the belief that the firm’s performance is enhanced through repeat business

Answer 13

relationship marketing

(the firm’s marketing activities aim to increase repeat business as a route to strong firm performance).

Question 14

T or F: With relationship marketing, the firm and its employees are very motivated to provide an outstanding overall experience.

Answer 14

True

Question 15

The “heart” of the study of consumer behavior is ______ ______.

Answer 15

consumer value (it’s why people buy what they buy)

Question 16

consumer behavior theory that illustrates factors that shape consumption-related behaviors and ultimately determine the value associated with consumption

Answer 16

Consumer Value Framework (CVF)

Question 17

What 4 things affect consumer value in the Consumer Value Framework?

Answer 17

1. Internal Influences (consumer psychology, personality of consumer)
2. External Influences (social environment and situational influences)
3. Consumption Process (Needs/wants)
4. Relationship quality

Question 18

Personal assessment of the net worth obtained from an activity

Answer 18

Value

Question 19

What is the “formula” for value?

Answer 19

What you get - what you give

Question 20

T or F: Value is always synonymous with price.

Answer 20

False; (Benefits → could be quality, convenience, emotions, prestige, experience, nostalgia, $$
Cost → time, money, effort, opportunity, emotions, image)

Question 21

What are the 2 types of value?

Answer 21

1. Utilitarian Value
2. Hedonic Value

Question 22

Which type of value is this explaining?
Gratification derived because something helps a consumer solve a problem or accomplish some task

Answer 22

Utilitarian Value

(Consumers provide a rational explanation for their purchases; Value is provided because the object or activity allows something good to happen or be accomplished)

Question 23

What type of value is this explaining?
Value derived from immediate gratification that comes from some activity; provided by the actual experience and emotions associated with consumption.

Answer 23

Hedonic Value

(ex: skydiving, designer shoes, etc.)

Question 24

Hedonic value is _______ and _______ in nature.

Answer 24

emotional; subjective (Action to obtain hedonic value can be difficult to explain objectively)

Question 25

Which type of value does this correlate with? End in and of itself rather than a means to an end.

Answer 25

Hedonic value

Question 26

What are the 3 internal influences?

Answer 26

1. Psychology of the Consumer Cognition Affect (How people think, feel, and decide when buying products or services; this is Cognition) 2. Personality of the Consumer (individual differences; state or trait characteristics) 3. Affect (our moods, emotions, feelings)

Question 27

In relation to the personality of the consumer being an internal influence, what are the 2 types of characteristics that affect personality?

Answer 27

1. State characteristics 2. Trait characteristics

Question 28

Consistent things are (trait/state) characteristics.

Answer 28

Trait (ex: someone who ALWAYS loves spicy food. That is a core trait. So, a hot sauce company would target that specific trait.)

Question 29

Temporary things; more about how you feel right now or the situation you’re in are (trait/state) characteristics.

Answer 29

State (ex: being on a holiday. You may suddenly feel way more adventurous, try different foods or activities you normally skip)

Question 30

A really catchy jingle is playing for this brand, which creates a positive emotional spark, which you then link that feeling to the brand itself. What internal influence is this an example of?

Answer 30

Affect (our moods, emotions, feelings)

Question 31

What are 3 external influences?

Answer 31

1. Social Groups (ex: going to try a new coffee shop because a friend couldn’t stop talking about how great it is) 2. Cultural Norms 3. Situational Factors (ex: if it’s snowing outside, suddenly a hot chocolate sounds amazing)

Question 32

Which external influence is this describing? We are naturally influenced by people we know and trust, like friends recommendations.

Answer 32

Social Groups

Question 33

How do firms maximize value for consumers? (4 things)

Answer 33

1. Build the "right" product (aka understand the consumer) 2. Manage the marketing mix (4Ps) effectively 3. Augment the products (services, warranties--added value) 4. Find the "right" market segment-- develop the "right" product for the "right" segment.

Question 34

What are the 4 Ps of the marketing mix?

Answer 34

1. Product 2. Place 3. Price 4. Promotion

Question 35

marketplace condition in which consumers do not view all competing products as identical to one another

Answer 35

product differentiation

Question 36

T or F: New products often fail because consumers don’t know how to organize/make sense of it.

Answer 36

True

Question 37

________ comes before learning.

Answer 37

Perception

Question 38

the awareness and interpretation of reality; how you make sense of things

Answer 38

perception

Question 39

What are the 3 phases of Perceptual Process (how consumer perceptions are formed)?

Answer 39

1. Sensing 2. Organizing 3. Reacting to stimuli

Question 40

Match the following to which phase of the process of consumer perception it describes: a. The raw input (smell, sight, sound, touch, taste). The immediate response to stimuli through our senses. b. Brain organizes the sensory data; makes it recognizable.

Answer 40

a. Sensing b. Organizing

Question 41

What are 2 ways our brain can organize sensory data in the process of consumer perception?

Answer 41

1. Assimilation 2. Accomodation

Question 42

When what we sense fits neatly into a category we already have.

Answer 42

Assimilation (ex: seeing a new brand of Cola but it looks like Cola and smells like Cola. So, your brain says Cola)

Question 43

When what we sense shares some features, but is a bit different, you might need to adjust your categories slightly.

Answer 43

Accomodation (But, if it’s totally foreign/completely new, we might struggle to categorize it. This can lead to contrast, meaning maybe you avoid it or have a negative reaction because it doesn’t fit anywhere in your mental map)

Question 44

When we selectively expose ourselves to certain things, blocking out the rest – often unconsciously. Then, we selectively pay attention only to stuff that stands out/seems relevant.

Answer 44

Selective perception

Question 45

Learning happens without ______ ______.

Answer 45

active focus (It can subtly improve our attitudes toward something. Familiarity breeds liking, reduces perceived risk)

Question 46

Learning: We tend to prefer things we’ve been exposed to before, even if we didn’t pay attention, over things we haven’t seen. Just seeing it makes us like it more. It creates these pre-attentive effects. This is called the:

Answer 46

mere exposure affect

Question 47

Selective perception: In relation to selective perception, we as consumers even selectively ______ information. → We interpret it in ways that fit our existing beliefs.

Answer 47

distort (ex: watching your favorite sports team, and there is a questionable call by the ref. Thinking “they always go against my team”. We interpret it to confirm what we already believe.)

Question 48

How we Learn: where meaning can transfer between things, just because they’re accidentally associated somehow.

Answer 48

Mere association effect (ex: a celebrity sponsor gets into trouble, and it could tank the brand)

Question 49

How We Learn: stuff that grabs us whether we like it or not; attention beyond your conscious control, often triggered by surprising things (novel stimuli)

Answer 49

involuntary attention (ex: a sudden loud noise, something unexpected moving in your peripheral vision)

Question 50

Marketers try to intentionally grab that involuntary attention we have. What are the 4 ways they do this?

Answer 50

1. Intensity (bright colors, loud sounds, high volume. Contrast—making something stand out from its background) 2. Movement (surprising stimuli; things you don’t expect) 3. Size (big logos, big headlines) 4. Personal Relevance (involvement; how much it connects to me)

Question 51

What are the 2 learning theories?

Answer 51

1. Classical Conditioning 2. Instrumental Conditioning

Question 52

Which learning theory does this describe: associating a stimulus, like a bell, with something that naturally causes a response, like food, until the bell alone causes the response.

Answer 52

Classical Conditioning (ex: a jingle that makes you thirsty for a specific drink. The jingle becomes the conditioned stimulus)

Question 53

Which learning theory does this describe: uses reinforcement, rewards, or punishments to shape behavior over time.

Answer 53

Instrumental Conditioning (ex: loyalty programs. Buy 10 coffees, get one free. This is an example of a positive reinforcer. It encourages repeat purchases)

Question 54

screening, exposing self to small portion of total stimuli

Answer 54

Selective exposure

Question 55

pay attention to something that stands out, relevant

Answer 55

Selective attention

Question 56

conscious or unconscious – way something is interpreted.

Answer 56

Selective distortion (ex: ref making a call)

Question 57

________ is the first step to learning.

Answer 57

Exposure

Question 58

stimuli that occur below level of conscious awareness or “absolute threshold”

Answer 58

subliminal processing

Question 59

can marketers affect your subconscious? This is _______ ________.

Answer 59

subliminal persuasion (ex: video of taxidermy animals and two guys in the taxi)

Question 60

Weber's Law is the same thing as:

Answer 60

Just Noticeable Difference

Question 61

Why does the mere exposure effect exist?

Answer 61

Because we prefer things we are familiar with. It reduces our perceived risk.

Question 62

In Just Noticeable Difference, or Weber's Law, it states that we notice things that are GREATER than _____%.

Answer 62

20%

Question 63

The smallest change that would actually influence your behavior, your consumption, your choice; it’s not just, can I see the difference? It is, do I care enough about the difference to change what I do?

Answer 63

Just Noticeable Difference (JND)

Question 63

the idea that subtle cues can affect us without us realizing. (immediate cues)

Answer 63

priming

Question 64

In a music store, there is upbeat fast music. This can potentially make us shop faster without us even realizing. What is this an example of?

Answer 64

Priming