MKT 400 Final: MKT 400 Final Crib Sheet
17 May 2018
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Week 1: Chapter 1: What is CB
Consumer Behaviour: Set of value seeking activities that takes place as people go about addressing
needs. Study of consumers select, purchase & dispose of products, services, ideas or experience.
Relevant to understanding of both public policy issues (ethical making practices) and dynamics of
popular culture.
Consumer orientation: doing business in which actions & decisions making of the institutions
prioritize consumer value & satisfaction.
Market orientation: organizational culture that embodies importance of creating value among
employees.
Myopic Business View: Defines the business in terms of products & Not the value the consumer
receives.
Resource Advantage Theory: Explains why companies succeed or fail; the company goes about
obtaining resources from consumers in return for the value the company’s resource create.
Week 4: Chapter 2: Value & CB Value Framework
Consumer Value Framework (CVF): Represents consumer behaviour theory illustrating factors that
shape consumption related behaviour and ultimately determine the value associated with
consumption. Consumer Value: Personal assessment of the net worth obtained from an activity.
Marketing Myopia: Common condition in which a company views itself in a product business rather
than in a value or benefits producing business. Short sighted.
Customer Lifetime Value (CLV): Represents the approximate worth of a customer to a company in
economic terms. CLV=npv(sales-cost)+npv(equity)
Week 2: Chapter 3: Consumer Learning & Perception
Article: The new conversation: Taking social media to action → there is yet to be full understanding
of how social media can influence groups, individuals. There is no measurement of how companies
can utilize these platforms to their advantage with effectiveness. Marketers are struggling to
integrate social media channels to their marketing strategies.
"Generational shift in marketing: From "shout marketing" TV, newspapers, magazine ads- To
initiating participation in conversation with consumers" Shift from traditional ideas about marketing
and brand management. This new era of technological advance and the creation of the internet has
shifted the way consumers process information. Various websites for different purposes. The
limitlessness of the internet makes it hard for business to understand how to effectively use it to
market their products. Businesses now have to be cautious about the product, content they share
and the quality of their goods and services, because in one click, consumers can expose these
product offerings which can affect how one's business runs. First time where companies can talk to
customers directly and get feedback. Integration of social media marketing is an important aspect of
success in today's world - by disregarding the opportunities the internet has to offer, companies are
missing their chance on effectively market products and enhance their reputations. Its important to
monitor consumer's comments due to the fact that they state the wants and needs of these
individuals. This is information that companies should focus on
Learning: change in behaviour resulting from the interaction between a person & a stimulus. Begins
with perception. Can be intentional & Unintentional.
Implicit Memory: Unintentional Learning, memory for things that a person did not try to remember.
Explicit Memory: Intentional Learning
Mere Exposure Effect: Consumers will prefer an object to which they have been exposed Vs.
something unfamiliar.
Attention: Purposeful allocation of cognitive capacity toward understanding some stimulus.
Involuntary attention is beyond the conscious control of consumer.
Ways to Enhance Attention: 1. Intensity of Stimuli: consumer is more likely to pay attention to a
stronger stimulus than a weaker stimulus; ex. Vivid colours, loud sounds. 2. Contrast: in colour of
paper, ex. Black & white image in magazine. 3. Movement: Electronic billboards 4. Surprise Stimuli:
Unexpected, ex. Infomercials often contain surprising scenes 5. Size of Stimuli: Larger items garner
more attention than small ones, ex. Headlines. 6. Involvement: Refers to personal relevance a
consumer feels toward a particular product
Behaviourism: focuses on changes in behaviour due to association, without great concern for
cognitive mechanics of the learning process. Information processing (Cognitive) Perspective:
Focuses on changes in thought & knowledge & how these precipitate behavioural changes.
Utilitarian Value: Value derived
from a product that helps the
consumer with some task
Hedonic Value: Value derived
from the immediate
gratification that comes from
some activity.
Perception: awareness & interpretation; process by which
physical sensations, such as sights, sounds & smells are
selected, organized & interpreted, EXPOSURE-
ATTENTION-COMPREHENSION
Perceptual Map: widely used marketing tool that
evaluates the relative standing of competing brands along
relevant dimensions. People have different threshold of
perception, a stimulus must be presented at a certain
level of intensity before it can be detected by sensory
receptors.
Selective Exposure: Process of screening out certain
stimuli & purposely exposing oneself to other stimuli
Selective Attention: Process of paying attention to only
certain stimuli.
Selective Distortion: Process by which consumers interpret
information in ways that are biased by their previous held beliefs.
Can be conscious or unconscious.
JND (Just Noticeable Difference): Represents how much stronger 1
stimulus that would influence consumer consumption and choice. Ex.
Change in price can influence consumer behaviour. (Pricing, Quantity,
Quality, Add-on purchases)
Weber’s Law: The ability to detect differences between two levels of
a stimulus is affected by the original intensity of the stimulus.
JMD (Just Meaningful Differences): Represents the smallest amount
of change in a stimulus that would influence consumer consumption
and choice.
Learning Theories
Classical Conditioning: Change in behaviour through associating some stimulus with another that
naturally causes reaction. Unintentional learning. Instrumental Conditioning: Behaviours is
conditioned through positive/negative reinforcement. Punish/rewards for behaviour.
Week 3: Chapter 4: Comprehension, memory & Cognitive Learning
Comprehension: Way people cognitively assign meaning to understand things. Interpretation of
understanding that consumer develops about some attended stimulus to assign meaning.
Message Receiver Characteristics:
1. Intelligence/ability: Well educated consumers are more likely to accurately comprehend a
message than are less intelligent or less educated consumers
2. Prior Knowledge: Human brain matches incoming information w/ pre-existing knowledge
3. Involvement: Consumer are not equally involved w/ messages. Highly involved consumers tend
to pay more attention to messages. Extent more effort in comprehending messages and as a
result show better recall.
4. Familiarity/Habituation: Consumers tend to like the familiar, but this can lower consumer’s
motivation to process a message. Habituation is process by which continuous exposure to a
stimulus affects the comprehension of response to the stimulus. Adaption Level: Level of
stimulus to which consumer have become accustomed.
5. Expectations: Beliefs of what will happen in future
6. Physical Limits: Consumer’s physical limitation. Ex. Limits of hearing, seeing, smelling etc.
7. Brain Dominance: Refers to the phenomenon of hemispheric lateralization. Some people tend
to either left brained or right brained dominant.
Multiple Store Theory of Memory: Views the memory process as utilizing three different storage
areas within the human brain.
Schema: A type of associative network that works as a cognitive representation of a phenomenon
that provides meaning to that entity.
Exemplar: A concept within a schema that is the single best representative of some category.
Prototype: Characteristics more associated with a concept
Social Schema: Cognitive representation that gives a specific type of person meaning.
Week 4: Chapter 5: Motivation & Emotion driving consumer.
Motivations: Inner reasons or driving forces behind human action to address real needs.
1. Homeostasis: The body naturally reacts in a way so as to maintain a constant, normal
bloodstream.
2. Self-Improvement: Changing one’s current state to a level that is more idea.
Maslow’s Hierchy of Needs: Theory of human motivations that describes consumer’s as addressing a
finite set f prioritized needs.
Self-Actualization:
Need for personal fulfillment
Esteem
The need to be recognized as a person of worth
Belongingness & Love
Need to feel like a member of a family or community
Safety & Security
Need to be secure & Protected
Physiological
Basic survival (food, water, shelter)
Utilitarian Motivation: Drive to acquire products that can be used to accomplish something; ex.
Choosing most convenient place to have lunch, buying a tank of gas for a car
Hedonic Motivation: Drive to experience something emotionally gratifying; ex. Going out to trendy
new restaurant, driving the car fast on a curvy road, choosing high end retailer
Psychobiological response: Involve both psychological and physical responses.
Visceral Response: Certain feeling states that are tied to physical reactions/behaviour in a very direct
way. (Worry, - grim face, turned down; joy – genuine smile; anger – clenched fists)
Cognitive Appraisal Theory: proposing that specific types of appraisal thoughts can be linked to
specific types of emotions.
1. Anticipation
➢ Focuses on the future and can elicit emotions like
hopefulness or anxiety
2. Agency Appraisal
➢ Reviews responsibility for events and can evoke
gratefulness, frustration, guilt or sadness
3. Equity Appraisal
➢ Considers how fair some event is and can evoke emotions
like warmth or anger
4. Outcomes
Appraisal
➢ Considers how something turned out relative to one’s
goals and can evoke emotions like joyfulness, satisfaction,
sadness or pride.
Mood Congruent Judgements: Evaluations in which the value of a target is influenced in a consistent
way by one’s mood.
Autonomic Measures: Responses that are automatically recorded based on either automatic visceral
reactions or neurological activity.
Self Report Measures:
PANAS
➢ Positive affect negative affect scale
➢ Self report measure that asks respondents to rate the
extent to which they feel one of 20 emotional adjectives
PAD
➢ Pleasure arousal dominance
➢ Self report measure that asks respondents to rate feelings
using semantic differential items
Emotional Intelligence: Awareness of the emotions experienced in a given situation & the ability to
control reactions to these emotions.
Cognitive Schemas:
Sensory Memory: Area in
memory where a
consumer stores thing
exposed to one of the 5
senses
Working memory:
Storage area in the
memory system where
information is stored
while being processed
and encoded for later
recall.
Document Summary
Consumer behaviour: set of value seeking activities that takes place as people go about addressing needs. Study of consumers select, purchase & dispose of products, services, ideas or experience. Relevant to understanding of both public policy issues (ethical making practices) and dynamics of popular culture. Consumer orientation: doing business in which actions & decisions making of the institutions prioritize consumer value & satisfaction. Market orientation: organizational culture that embodies importance of creating value among employees. Myopic business view: defines the business in terms of products & not the value the consumer receives. Resource advantage theory: explains why companies succeed or fail; the company goes about obtaining resources from consumers in return for the value the company"s resource create. Week 4: chapter 2: value & cb value framework. Consumer value framework (cvf): represents consumer behaviour theory illustrating factors that shape consumption related behaviour and ultimately determine the value associated with consumption.
