Question 1

Types of Consumer Decisions

Accepted Answer

Decision processes can be characterised by the amount of effort that goes into the decision each time it’s made. Consumer decisions occur on a continuum going from Habitual Behaviour to Limited problem Solving to Extensive Problem Solving.

Question 2

Extended Problem Solving

Accepted Answer

High-involvement purchasing decisions involving high-price, high-risk and/or infrequent, unfamiliar products, cognitive learning

Question 3

Limited Problem Solving

Accepted Answer

Infrequently bought, but familiar, products or a new unknown brand is available

Question 4

Habitual Decision Making/Behaviour

Accepted Answer

Occurs with little or no conscious effort—they are simple automatic decisions.

Question 5

Habitual Decision Making Consequence

Accepted Answer

Habitual decision-making allows consumers to minimise time and energy spent on purchase decisions. As a consequence, consumers can be primed to respond without conscious thought.

Question 6

Perspectives on Consumer Choices

Accepted Answer

Information Processing vs Constructive Processing

Question 7

Information Processing

Accepted Answer

Traditionally, consumer researchers have approached decision-makers from an information-processing perspective. According to this view people will carefully integrate information about a product, weigh up alternatives before arriving at a decision.

Question 8

Constructive Processing

Accepted Answer

The sequence of events that consumers use to evaluate the effort required to make a particular choice and then choose a strategy best suited to the level of effort required.

Question 9

Purchase Momentum

Accepted Answer

Occurs when impulse buying increases the likelihood that we will buy even more.

Question 10

Consumers as Emotion Experiencers

Accepted Answer

Consumers make many choices based on emotional responses buying products that make us ‘feel’ good. 
Affective Events Theory, Affect Control Theory, The Affect Infusion Model.

Question 11

Affective Events Theory

Accepted Answer

Experiencing an affective event can create an emotion that leads to an affect-driven attitude and behaviour. 
Our thoughts drive our emotions and this influences our decisions. 
A Fun movie that makes us laugh - buying the dvd

Question 12

Affect Control Theory

Accepted Answer

Explains the changes in our thoughts and behaviours to maintain our emotions vs changing to be consistent with our thoughts and behaviours. 
Buy a faulty iPod, outlet only offers a partial refund, rejecting the refund and complaining (maintaining anger).

Question 13

The Affect Infusion Model

Accepted Answer

Suggests there are four ways that consumers use to change judgement and behaviour so that they are consistent:
1. Direct access; 
2. Motivated; 
3. Heuristics;  
4. Substantive processing.

Question 14

The Affect Infusion Model: Direct Access

Accepted Answer

This involves mentally accessing a pre-existing response, which often happens when the situation is familiar and doesn’t require a great deal of thinking. e.g. using stereotypes of countries when selecting luxury goods,  China = bad quality

Question 15

The Affect Infusion Model: Motivated

Accepted Answer

This strategy involves seeking information that is guided by some pre-existing motivational goal. This strategy is also low in affective infusion. An example is looking for a fashion brand that will gain social credit with friends.

Question 16

The Affect Infusion Model: Heuristic

Accepted Answer

This occurs when there are no pre-existing responses or motivational goals and where there is no need for detailed consideration. Affect infusion occurs when a consumer draws on their current mood to make decisions, thus mood is a cognitive shortcut.

Question 17

The Affect Infusion Model: Substantive Processing

Accepted Answer

This occurs when the situation is complex, non-routine and the consumer has enough cognitive time and ability to perform the processing. This is the ‘fallback’ strategy when the other three, less effortful strategies don’t work.

Question 18

The Affect Infusion Model: Substantive Processing - Example

Accepted Answer

This explains why retailers play cheerful music, they can make customers feel happy at the start of their visit, they will perceive products in a more positive light and buy more— it gets them in the mood!

Question 19

Consumers as Habitual Actors

Accepted Answer

Consumers can make low-involvement decisions as a learned response to environmental cues in a store. E.g. Manipulating the environment can alter behaviour (e.g. layout, music).
Framing the perspective (e.g. food labels, 95% fat-free vs. 5% fat).

Question 20

French Exchanges Framework

Accepted Answer

A useful framework to understand habitual decision-making is French’s Exchange Framework. From the framework, four types of exchange are created: Hug, Nudge, Smack, Shove

Question 21

French Exchanges Framework: Hug

Accepted Answer

Problem-solving strategy. (Active Reward). Providing a holiday as a reward for making a video of your brand experience

Question 22

French Exchanges Framework: Smack

Accepted Answer

Problem-solving strategy. (Active Punishment). Fines for late payment or loss of access to the product.

Question 23

French Exchanges Framework: Nudge

Accepted Answer

Habitual Strategy. (Passive Reward). Airline loyalty program.

Question 24

French Exchanges Framework: Shove

Accepted Answer

Habitual Strategy. (Passive Punishment). Limiting distribution channels and access to alcohol after 3am.

Question 25

Consumers as Problem-solvers

Accepted Answer

A consumer purchase is a response to a problem. Most consumers go through steps when they make a purchase, which we see here in the EKB model of consumer behaviour. Problem recognition, Information search, evaluation of alternatives and product choice.

Question 26

Gestalt

Accepted Answer

Where decisions are highly involved but the selections made cannot be explained in wholly rational terms, we consider this to be an aspect of experiential perspective, which stresses the Gestalt (or totality) of the product or service

Question 27

EKB Model: Problem Recognition

Accepted Answer

Occurs when a consumer perceives a significant difference between their actual state (what the consumer perceives as already existing )and ideal state (what the consumer would like). The two options are, Need recognition or Opportunity recognition.

Question 28

EKB Model: Problem (Need) Recognition

Accepted Answer

When the actual state moves downward

Question 29

EKB Model: Problem (Opportunity) Recognition

Accepted Answer

When the ideal state moves upwards.

Question 30

Resolving Recognised Problems

Accepted Answer

1. The magnitude of the discrepancy or “perceived distance”. The greater the “perceived distance”, the more clearly the consumer recognises a potential need
2. The relative importance of the problem (time and money constraints)

Question 31

Types of Consumer Problems

Accepted Answer

ACTIVE - Aware of problem: Marketer's job to provide solution
INACTIVE - Unaware of problem: Marketer's job to show there is a problem that needs fixing

Question 32

EKB Model: Information Search

Accepted Answer

The process by which consumers seek data. Information sources can be roughly broken down into two types: internal and external.

Question 33

EKB Model: (Internal) Information Search

Accepted Answer

Based on memory or prior experience. 
Directed learning: prior search for information. Incidental learning: passive information acquisition through ongoing exposure.

Question 34

EKB Model: (External) Information Search

Accepted Answer

Seek information from marketers, friends, product labels.

Question 35

EKB Model: Information Search & Perceived Risk

Accepted Answer

As a rule, purchase decisions that involve extensive search also entail some kind of perceived risk , or the belief that the product has potentially negative consequences.

Question 36

EKB Model: Evaluation of Alternatives

Accepted Answer

Consumers are likely to be faced with a number of alternative options available to satisfy their problem. Extended problem solving may carefully evaluate several brands vs Habitual decision may not consider alternatives to their normal brand.

Question 37

EKB Model: Evaluation of Alternatives (Evoked Set)

Accepted Answer

Alternatives actively considered during decision making (retrieval set = products already in the consumer’s memory plus those prominent in the retail environment).

Question 38

EKB Model: Evaluation of Alternatives (Consideration Set)

Accepted Answer

Alternatives that you would actually consider.

Question 39

EKB Model: Evaluation of Alternatives (Inept Set)

Accepted Answer

Products we would never consider.

Question 40

EKB Model: Evaluation of Alternatives (Inert Set)

Accepted Answer

Products that are not top of mind but could be considered.

Question 41

Marketing Strategies (in evoked set)

Accepted Answer

Maintenance strategy (Defend)
Capture strategy (Provide Information)
Preference strategy (Emphasise attributes!)

Question 42

Maintenance Strategy

Accepted Answer

When consumers in the target market purchase it habitually, the most appropriate strategy is to maintain that behaviour. Reinforcing advertising messages. 
For Habitual Decision Making

Question 43

Capture Strategy

Accepted Answer

The marketer’s objective should be to capture a large share of consumers’ purchases. Advertising in local media furnishing information about price and availability etc. Limited Decision Making

Question 44

Preference Strategy

Accepted Answer

Cause consumers to choose brand already within the evoked set. Develop strong attributes important to the target market. Information must be provided (information campaign). For Extended Decision Making

Question 45

Marketing Strategies (not in evoked set)

Accepted Answer

Disrupt strategy (Grab Attention)
Intercept Strategy (Get Attention)
Acceptance Strategy (Raise Awareness)

Question 46

Disrupt Strategy

Accepted Answer

We need to disrupt the existing pattern of decision making. Comparative advertising with strong benefit claims is often successful in breaking habitual buying. For Habitual Decision Making

Question 47

Intercept Strategy

Accepted Answer

Intercept consumers during their information search on the brands in evoked set. Advertising in local media, attractive package design etc. is important to attract consumers’ attention because of little information search. Limited Decision Making

Question 48

Acceptance Strategy

Accepted Answer

Aims to become the preferred brand – emphasise comparative difference. Advertise but don’t ‘sell’ the brand - move brand into evoked set. For Extended decision making

Question 49

EKB Model: Product Choice

Accepted Answer

Evaluative criteria – the dimensions used to judge the merits of competing options, or in other words, what attributes a good/great product or service should have.

Question 50

Bounded Rationality

Accepted Answer

Heuristics = mental rules-of-thumb, which aid speedy decisions. Consumers often form assumptions about companies, products and stores. These market beliefs then become the shortcuts that guide their decisions – whether or not they are accurate

Question 51

Bounded Rationality (Shortcut examples)

Accepted Answer

Higher price. Higher Price = Higher Quality.
Country of Origin. Made in China = Lower Quality.
Familiar Brand Names. Formed preferences through social constructs
Inertia. Buying a brand out of habit

Question 52

Bounded Rationality (Shortcut example, Inertia)

Accepted Answer

Many people tend to buy the same brand just about every time they go to the store. This consistent pattern is due to inertia: the brand is bought out of habit merely because less effort is required.

Question 53

Mental Accounting

Accepted Answer

Process in which decisions are influenced by:
The way the problem is posed (called framing) and 
Whether it is put in the terms of gain or loss (if we have paid for something, we are more reluctant to waste it)(Sunk-cost fallcy).

Question 54

Loss aversion

Accepted Answer

People place more emphasis on the loss than any gains (e.g., losing money is more unpleasant than gaining money is pleasant).

Question 55

Prospect theory

Accepted Answer

Utility is a function of gains and losses. Risk differs when the consumer faces options involving gains versus those involving losses.

Question 56

Outlet Choice vs Brand (product) Choice

Accepted Answer

Brand first, retail outlet second - Example: marketing around product features, image.
Retail outlet first, brand second - Example: store sale catalogue.
Brand and retail outlet simultaneously

Question 57

Retailing Format

Accepted Answer

Low-involvement purchases: Convenience stores, Vending machines, Online shopping, Mass-merchandising retailers.
High-involvement purchases: Specialty and department stores, More complex purchase

Question 58

Corporate Social Responsibility (CSR)

Accepted Answer

The processes that encourage organisations to make a positive impact on the various stakeholders in their community including consumers, employees and the environment

Question 59

Cause-related Marketing (CRM)

Accepted Answer

Is a mutually beneficial collaboration between a corporation and a nonprofit designed to promote the former's sales and the latter's cause.

Question 60

Corporate Social Marketing

Accepted Answer

Using marketing techniques to encourage positive activities (e.g. exercise) and to discourage negative activities (e.g. drink driving).

Question 61

Behaviour and Social Change

Accepted Answer

For the most part, social change is thought to depend upon values and attitudes (the A), which are believed to drive the kinds of behaviour (the B) that individuals choose (the C) to adopt.

Question 62

Brand Activism

Accepted Answer

A value-driven strategy in which a brand adopts a non-neutral stance on institutionally contested socio-political issues to create social change and marketing success.

Question 63

Social Transformations

Accepted Answer

Instead of simply responding to such research activity, companies can play a proactive role in investigating problems and searching for solutions.

Question 64

Political Transformations

Accepted Answer

Policy and politics have to advance the institutional framework in such a way that it either encourages the purchase, use and post-use of more sustainable products or discourages the purchase of conventional ones.

Question	Answer
Types of Consumer Decisions	Decision processes can be characterised by the amount of effort that goes into the decision each time it’s made. Consumer decisions occur on a continuum going from Habitual Behaviour to Limited problem Solving to Extensive Problem Solving.
Extended Problem Solving	High-involvement purchasing decisions involving high-price, high-risk and/or infrequent, unfamiliar products, cognitive learning
Limited Problem Solving	Infrequently bought, but familiar, products or a new unknown brand is available
Habitual Decision Making/Behaviour	Occurs with little or no conscious effort—they are simple automatic decisions.
Habitual Decision Making Consequence	Habitual decision-making allows consumers to minimise time and energy spent on purchase decisions. As a consequence, consumers can be primed to respond without conscious thought.
Perspectives on Consumer Choices	Information Processing vs Constructive Processing
Information Processing	Traditionally, consumer researchers have approached decision-makers from an information-processing perspective. According to this view people will carefully integrate information about a product, weigh up alternatives before arriving at a decision.
Constructive Processing	The sequence of events that consumers use to evaluate the effort required to make a particular choice and then choose a strategy best suited to the level of effort required.
Purchase Momentum	Occurs when impulse buying increases the likelihood that we will buy even more.
Consumers as Emotion Experiencers	Consumers make many choices based on emotional responses buying products that make us ‘feel’ good. Affective Events Theory, Affect Control Theory, The Affect Infusion Model.
Affective Events Theory	Experiencing an affective event can create an emotion that leads to an affect-driven attitude and behaviour. Our thoughts drive our emotions and this influences our decisions. A Fun movie that makes us laugh - buying the dvd
Affect Control Theory	Explains the changes in our thoughts and behaviours to maintain our emotions vs changing to be consistent with our thoughts and behaviours. Buy a faulty iPod, outlet only offers a partial refund, rejecting the refund and complaining (maintaining anger).
The Affect Infusion Model	Suggests there are four ways that consumers use to change judgement and behaviour so that they are consistent: 1. Direct access; 2. Motivated; 3. Heuristics; 4. Substantive processing.
The Affect Infusion Model: Direct Access	This involves mentally accessing a pre-existing response, which often happens when the situation is familiar and doesn’t require a great deal of thinking. e.g. using stereotypes of countries when selecting luxury goods, China = bad quality
The Affect Infusion Model: Motivated	This strategy involves seeking information that is guided by some pre-existing motivational goal. This strategy is also low in affective infusion. An example is looking for a fashion brand that will gain social credit with friends.
The Affect Infusion Model: Heuristic	This occurs when there are no pre-existing responses or motivational goals and where there is no need for detailed consideration. Affect infusion occurs when a consumer draws on their current mood to make decisions, thus mood is a cognitive shortcut.
The Affect Infusion Model: Substantive Processing	This occurs when the situation is complex, non-routine and the consumer has enough cognitive time and ability to perform the processing. This is the ‘fallback’ strategy when the other three, less effortful strategies don’t work.
The Affect Infusion Model: Substantive Processing - Example	This explains why retailers play cheerful music, they can make customers feel happy at the start of their visit, they will perceive products in a more positive light and buy more— it gets them in the mood!
Consumers as Habitual Actors	Consumers can make low-involvement decisions as a learned response to environmental cues in a store. E.g. Manipulating the environment can alter behaviour (e.g. layout, music). Framing the perspective (e.g. food labels, 95% fat-free vs. 5% fat).
French Exchanges Framework	A useful framework to understand habitual decision-making is French’s Exchange Framework. From the framework, four types of exchange are created: Hug, Nudge, Smack, Shove
French Exchanges Framework: Hug	Problem-solving strategy. (Active Reward). Providing a holiday as a reward for making a video of your brand experience
French Exchanges Framework: Smack	Problem-solving strategy. (Active Punishment). Fines for late payment or loss of access to the product.
French Exchanges Framework: Nudge	Habitual Strategy. (Passive Reward). Airline loyalty program.
French Exchanges Framework: Shove	Habitual Strategy. (Passive Punishment). Limiting distribution channels and access to alcohol after 3am.
Consumers as Problem-solvers	A consumer purchase is a response to a problem. Most consumers go through steps when they make a purchase, which we see here in the EKB model of consumer behaviour. Problem recognition, Information search, evaluation of alternatives and product choice.
Gestalt	Where decisions are highly involved but the selections made cannot be explained in wholly rational terms, we consider this to be an aspect of experiential perspective, which stresses the Gestalt (or totality) of the product or service
EKB Model: Problem Recognition	Occurs when a consumer perceives a significant difference between their actual state (what the consumer perceives as already existing )and ideal state (what the consumer would like). The two options are, Need recognition or Opportunity recognition.
EKB Model: Problem (Need) Recognition	When the actual state moves downward
EKB Model: Problem (Opportunity) Recognition	When the ideal state moves upwards.
Resolving Recognised Problems	1. The magnitude of the discrepancy or “perceived distance”. The greater the “perceived distance”, the more clearly the consumer recognises a potential need 2. The relative importance of the problem (time and money constraints)
Types of Consumer Problems	ACTIVE - Aware of problem: Marketer's job to provide solution INACTIVE - Unaware of problem: Marketer's job to show there is a problem that needs fixing
EKB Model: Information Search	The process by which consumers seek data. Information sources can be roughly broken down into two types: internal and external.
EKB Model: (Internal) Information Search	Based on memory or prior experience. Directed learning: prior search for information. Incidental learning: passive information acquisition through ongoing exposure.
EKB Model: (External) Information Search	Seek information from marketers, friends, product labels.
EKB Model: Information Search & Perceived Risk	As a rule, purchase decisions that involve extensive search also entail some kind of perceived risk , or the belief that the product has potentially negative consequences.
EKB Model: Evaluation of Alternatives	Consumers are likely to be faced with a number of alternative options available to satisfy their problem. Extended problem solving may carefully evaluate several brands vs Habitual decision may not consider alternatives to their normal brand.
EKB Model: Evaluation of Alternatives (Evoked Set)	Alternatives actively considered during decision making (retrieval set = products already in the consumer’s memory plus those prominent in the retail environment).
EKB Model: Evaluation of Alternatives (Consideration Set)	Alternatives that you would actually consider.
EKB Model: Evaluation of Alternatives (Inept Set)	Products we would never consider.
EKB Model: Evaluation of Alternatives (Inert Set)	Products that are not top of mind but could be considered.
Marketing Strategies (in evoked set)	Maintenance strategy (Defend) Capture strategy (Provide Information) Preference strategy (Emphasise attributes!)
Maintenance Strategy	When consumers in the target market purchase it habitually, the most appropriate strategy is to maintain that behaviour. Reinforcing advertising messages. For Habitual Decision Making
Capture Strategy	The marketer’s objective should be to capture a large share of consumers’ purchases. Advertising in local media furnishing information about price and availability etc. Limited Decision Making
Preference Strategy	Cause consumers to choose brand already within the evoked set. Develop strong attributes important to the target market. Information must be provided (information campaign). For Extended Decision Making
Marketing Strategies (not in evoked set)	Disrupt strategy (Grab Attention) Intercept Strategy (Get Attention) Acceptance Strategy (Raise Awareness)
Disrupt Strategy	We need to disrupt the existing pattern of decision making. Comparative advertising with strong benefit claims is often successful in breaking habitual buying. For Habitual Decision Making
Intercept Strategy	Intercept consumers during their information search on the brands in evoked set. Advertising in local media, attractive package design etc. is important to attract consumers’ attention because of little information search. Limited Decision Making
Acceptance Strategy	Aims to become the preferred brand – emphasise comparative difference. Advertise but don’t ‘sell’ the brand - move brand into evoked set. For Extended decision making
EKB Model: Product Choice	Evaluative criteria – the dimensions used to judge the merits of competing options, or in other words, what attributes a good/great product or service should have.
Bounded Rationality	Heuristics = mental rules-of-thumb, which aid speedy decisions. Consumers often form assumptions about companies, products and stores. These market beliefs then become the shortcuts that guide their decisions – whether or not they are accurate
Bounded Rationality (Shortcut examples)	Higher price. Higher Price = Higher Quality. Country of Origin. Made in China = Lower Quality. Familiar Brand Names. Formed preferences through social constructs Inertia. Buying a brand out of habit
Bounded Rationality (Shortcut example, Inertia)	Many people tend to buy the same brand just about every time they go to the store. This consistent pattern is due to inertia: the brand is bought out of habit merely because less effort is required.
Mental Accounting	Process in which decisions are influenced by: The way the problem is posed (called framing) and Whether it is put in the terms of gain or loss (if we have paid for something, we are more reluctant to waste it)(Sunk-cost fallcy).
Loss aversion	People place more emphasis on the loss than any gains (e.g., losing money is more unpleasant than gaining money is pleasant).
Prospect theory	Utility is a function of gains and losses. Risk differs when the consumer faces options involving gains versus those involving losses.
Outlet Choice vs Brand (product) Choice	Brand first, retail outlet second - Example: marketing around product features, image. Retail outlet first, brand second - Example: store sale catalogue. Brand and retail outlet simultaneously
Retailing Format	Low-involvement purchases: Convenience stores, Vending machines, Online shopping, Mass-merchandising retailers. High-involvement purchases: Specialty and department stores, More complex purchase
Corporate Social Responsibility (CSR)	The processes that encourage organisations to make a positive impact on the various stakeholders in their community including consumers, employees and the environment
Cause-related Marketing (CRM)	Is a mutually beneficial collaboration between a corporation and a nonprofit designed to promote the former's sales and the latter's cause.
Corporate Social Marketing	Using marketing techniques to encourage positive activities (e.g. exercise) and to discourage negative activities (e.g. drink driving).
Behaviour and Social Change	For the most part, social change is thought to depend upon values and attitudes (the A), which are believed to drive the kinds of behaviour (the B) that individuals choose (the C) to adopt.
Brand Activism	A value-driven strategy in which a brand adopts a non-neutral stance on institutionally contested socio-political issues to create social change and marketing success.
Social Transformations	Instead of simply responding to such research activity, companies can play a proactive role in investigating problems and searching for solutions.
Political Transformations	Policy and politics have to advance the institutional framework in such a way that it either encourages the purchase, use and post-use of more sustainable products or discourages the purchase of conventional ones.
Market-Based Transformations	Innovators extend the business case for sustainability marketing. Instead of simply responding to consumer wants and needs, innovators attempt to shape them.
Choice Giving	By developing new sustainable products and services - innovators give consumers a choice to behave in more sustainable ways.
Choice Influencing	Shaping demand and changing consumer perceptions.
Choice Editing	Controlling or limiting the choices available to consumers.
Consumer Activism	Consumers become activists when they promote the rights, consciousness and interests of consumers.
Addictive Consumption	Consumer addiction – a physiological and/or psychological dependency on products or services.
Materialism	A value system that is preoccupied with possessions and the social image they project
Consumerism	A moral doctrine, conspicuous, economic, and political ideology that encourages the acquisition of goods and services in ever-increasing amounts. Propels the insatiable belief that we need what we do not have.
The Circular Economy	There are two categories of customers - consumers (biological materials) and users (technical materials). In the technical cycle, the closer the loop is to the user, the more profitable the action.
Mindful Consumption and sustainability insight	Mindful consumption is “consciousness in thought and behaviour of the consequences of consumption”. Greater awareness of both the self and ecosystem could dampen the effects of unsustainable practices.
Anti-Consumption and sustainability insight	Choose to avoid and not consume products that are incompatible with their beliefs or ideology. Using Rejection, Restriction and Reclamation. To satisfy consumer needs and address consumption practices that cannot be outright rejected.
Responsible Consumption and sustainability insight	Consumers are “socially conscious” when they consider the public consequences of their private consumption and attempt to use purchasing power to bring about social change. Consumers become more aware of negative effects of consumption.
Sustainable Consumption	Responsible Consumption, Anti-Consumption and Mindful Consumption
Influences on Consumption Behaviour	Social and Structural Contexts (Social norms and influence of family/friends), Purchase Factors (purchase value and frequency), Marketing Factors (perceived benefits and costs) and Consumer Factors (demographics and values)
Stages of Consumption Process	Recognition of want/need, Information search and alternative evaluation, Purchase, Consumption of product, Post-use behaviour.
Why are Marketers interested in sustainability?	We’re all in this together (moral), Social trend – citizens are asking businesses to take responsibility (financial/economic), Reputation (financial/economic)
Culture Effects Marketing Strategy	Language (translation of campaigns), Customs (adaption of products and ads), Religion (Appropriate products/ads)
Worldview	A worldview combines beliefs, assumptions, attitudes, values, and ideas to form a comprehensive model of reality - this is held by individuals and groups.
Microcultures	Regional, Genders, Age-based, Generational, ethnic etc
Hofstede's Cultural Dimensions	Individualistic/Collectivistic, Masculine/Feminine, Uncertainty Avoidance, Power Distance, Time Perspective, Indulgence/ Restraint.
Global Consumer Culture	Standardised Strategy - Etic Perspective: focuses on commonalities across cultures. Localised Strategy - Emic Perspective: stresses variations across cultures.
Cultural Movement (Co-optation)	It is common for mainstream culture to modify symbols and present these to a larger audience. As this occurs, cultural products undergo a process of co-optation, where their original meanings are transformed by outsiders.
Cultural Movement ( Cultural Selection)	Consumers may at times feel overwhelmed by the sheer number of choices in the marketplace. The selection of certain alternatives over others is the culmination of a complex filtration process resembling a funnel.
Cultural Formulae	A sequence of media events in which certain roles and props tend to occur consistently.
Cultural Gatekeepers	People who help determine which stories make it to the public Such as reporters who decide what sources to use, and editors who pick what gets published and which stories make it to the front page.
Formal Gatekeepers	Casting directors, Radio programmers, Textbook authors, etc.
Informal Gatekeepers	Opinion leaders, Friends, Spouse, etc.
Cultural Production Systems (CPS)	The set of individuals and organisations responsible for creating and marketing a cultural product is a culture production system (CPS). The nature of these systems helps to determine the types of products that eventually emerge from them.
Cultural Production Systems - Major Subsystems	Creative subsystem, Managerial subsystem and Communications subsystems.
Cultural Production Systems - Creative Subsystems	Responsible for generating new symbols and/or products. (e.g. Beyonce)
Cultural Production Systems - Managerial Subsystems	Responsible for selecting, making tangible, mass producing, and managing the distribution of new symbols and/or products. (e.g. Columbia Records)
Cultural Production Systems - Communications Subsystems	Responsible for giving meaning to the new product and providing it with a symbolic set of attributes that are communicated to consumers. (e.g. ad agency)
Socialisation and the Types of Socialisation	The social learning of beliefs and behaviour. Primary socialisation = intimate contact (family and peer group) Secondary socialisation = formal situations, which are not personal (school, the mass media and the workplace).
Culture of Consumption	Consumer culture can be broadly defined as social status, values and activities and are centred on the consumption of goods and services.
Norms	Rules dictating what is right or wrong, acceptable or unacceptable. Norms are derived from cultural values
Enacted Norms	Norms explicitly decided on. e.g. green lights mean ‘go’.
Crescive Norms	Norms embedded in a culture. e.g. Customs - a norm handed down from paste generations that controls basic behaviours
Culture	The accumulation of shared meanings, rituals, norms and traditions among the members of an organisation or society. A society’s personality.
Culture and Marketing Co-Creation	Marketing practices effect culture and Culture effects marketing practices.
Opinion Leadership	Opinion leaders filter, interpret or provide information for individuals within groups. People who are knowledgeable about products and who are able to influence others’ attitudes or behaviours.
Social Power and Types of Social Power	The capacity of one person to alter the actions or outcome of another. The capacity of one person to alter the actions or outcome of another. Referent power, Legitimate power, Reward power, Information power, Expert power, Coercive power.
Referent Power	When a person admires a person or group and tries to imitate them.
Legitimate Power	Granted to people by virtue of social agreements. e.g. authorities
Reward Power	When a person or group has the means to provide positive reinforcement.
Information Power	Power from merely possessing valuable information that others do not have access to (e.g. consumer-generated content)
Expert Power	Power based on possessing specific knowledge about a content area.
Coercive Power	Influence through social or physical intimidation.
Social Identity Theory	Social identity theory argues that each of us has several ‘selves’ that relate to groups. These linkages are so important that we think of ourselves not just as ‘I’, but also ‘we’.
Social Identity	An individual’s sense of who they are, based on their group membership(s), i.e. provide a sense of belonging to the social world.
The Three Forms of Reference Group Influence	Informational Influence, Normative Influence, and Value-expressive Influence.
Informational Influence	When behaviours and opinions of reference groups are used as potentially useful pieces of information.
Normative Influence	When an individual fulfils group expectations to gain a direct reward or avoid a punishment.
Value-Expressive Influence	When an individual uses perceived group norms and values as a guide for their own attitudes or values.
Types of Groups	Smaller Groups - Normative Influence, The reference group helps to set and enforce fundamental standards of conduct (e.g. family). Larger Groups - Comparative Influence, When decisions about specific brands or activities are affected (e.g., a club)
Types of Reference Groups	Aspirational Groups - Comprise idealised figures such as successful business people, athletes or performers. Dissociative Group - Groups that consumers wish to avoid being associated with (e.g. ‘nerds’ or ‘druggies’).
Reference Group	An actual or imaginary individual or group conceived of having significant relevance to an individual’s evaluations, aspirations, or behaviour.
Group Influences	Almost all consumer behaviour takes place in a group setting. Groups serve as one of the primary agents for consumer socialisation and learning
Contextual Effects on Buying	Physical surroundings, Social surroundings, Temporal, Antecedent states, Task definition, Shopping Orientation.
Contextual Effects on Buying: Physical Surroundings	Dimensions of the physical environment, such as decor, odour and temperature, can significantly influence consumption.
Contextual Effects on Buying: Social Surroundings	The presence of other customers can be both positive and negative. Thus, it is important to distinguish between density (number) and crowding (negative). Customers can serve as a store attribute, because people tend to shop where other shoppers are.
Contextual Effects on Buying: Temporal	Temporary affects such as economic time, seasonal availability and convenience. It is important for marketers to understand the fluidity of time because people are more likely to be in a consuming mood at some times compared to others.
Contextual Effects on Buying: Task Definition	The usage purpose for which consumers purchase a good or service. For instance, people behave differently and buy different products when purchasing a gift compared to purchasing for themselves.
Contextual Effects on Buying: Shopping Orientation	A consumer’s general attitudes and motivations regarding the act of shopping. Utilitarian reasons: functional or tangible reasons. Hedonic reasons: pleasurable or intangible reasons.
Antededent States	If it feels good, buy it. Pleasure and Arousal determine if a shopper will react positively or negatively to a consumption environment.
Post-Purchase Outcomes	Marketers measure the success of their strategies using 3 key outcomes: customer satisfaction customer value brand loyalty Marketers also consider disposal – the ease of disposal or the impact upon the environment.
Post-Purchase Outcomes: Consumer Satisfaction	Determined by the overall feelings, or attitude, a person has about a product after it has been purchased. Evaluation of a purchase is defined by perceived performance relative to expectations
Post-Purchase Outcomes: Acting on Dissatsfaction	Voice Response: Consumer can appeal directly to the retailer (e.g., a refund). Private Response: Express dissatisfaction to friends and/or boycott the store. Third-Party Response: The consumer can take legal action against the merchant.
Post-Purchase Outcomes: Acting on Satisfaction	Brand loyalty: Implies A Psychological Commitment To The Brand. When a customer prefers your brand AND buys it regularly expressed over time. Double jeopardy = dominant brands in a have higher market shares and higher loyalty than less popular brands
Product Disposal and Marketing Strategy	Disposal may need to occur before a new purchase is made (e.g. recycling program). Second-hand markets can be created. When buying a product, disposal modes can become an evaluative criteria. Good for the environment!
Product Stewardship	Businesses taking responsibility for the products they make, sell and buy so they’re not ending up in landfill.

"Know" box contains:
Time elapsed:
Retries:

MKTG 204