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Final

ADM 3321 Study Guide - Final Guide: Bismuth Subsalicylate, Ernest Dichter, Peter Drucker


Department
Administration
Course Code
ADM 3321
Professor
Michael Mulvey
Study Guide
Final

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ADM$3321:$Consumer$Behaviour$Notes$
Chapter$1:$Introduction$to$Consumer$Behaviour$
Legacy'of'Insight'about'CB:'
- Peter'Drucker:'develop'a'sustainable'competitive'advantage'
- Bob'Lauterborn:'focus'on'knowing'your'customers'
- Theordore'Levitt:'focus'on'customer'needs,'importance'of'benefits'
- Sid'Levy:'purchases'are'tied'with'their'meanings'and'the'symbols'that'are'associated'
- Ernest'Dichter:'focused'on'the'feelings'and'emotions'attached'with'purchases'(buying'
impulse)'
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Consumer'Behaviour:'the'study'of'the'processes'involved'when'individuals'or'groups'select,'
purchase,'use,'or'dispose'of'products,'services,'ideas,'or'experiences'to'satisfy'needs'and'
desires'
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Consumption'Process:'
- Pre-purchase'Issues'
- Purchase'Issues'
- Post-Purchase'Issues'
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Example:'Father'of'the'Bride'Movie'(consumer'roles'and'goals)'
- User:'Daughter'
o Product'or'service'performs'as'desired,'to'provide'cherished'moments'
o Delivery'of'social'and'emotional'benefits'
- Payer:'Father'
o Low'cost,'ease'of'making'payments'
o Maximize'buying'power'
- Buyer:'Mother'
o Looking'for'convenience,'not'too'time'consuming,'fits'within'timeline'
- Influencer:'Wedding'Planner'
o Ability'to'leverage'network'of'contacts,'there'to'advise'bride'and'family'
o Holistic'thinker'who'organizes'events'based'on'individual'decisions'
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Consumerism:'a'movement'advocating'greater'protection'of'the'interests'of'consumers'
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Example:'Wedding'Bells'Video'
- Some'groups'of'consumers'are'vulnerable'to'“ripoffs”'when'inexperienced'
- Even'savvy'consumers'can'be'mislead'and'overwhelmed'in'certain'situations'
- Reasoning'is'often'overtaken'by'emotions'in'consumer'decision-making'
- *Ethical'business'is'good'business.'Bad'business'practices'can'create'a'business'
opportunity'for'ethical'entrepreneurs'
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The'Dark'Side'of'CB:'Consumers’'desires,'choices,'and'actions'often'result'in'negative'
consequences'to'the'individual'or'society'
o Addictive'consumption'

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o Compulsive'consumption'
o Illegal'activities'(ex.'consumer'theft)'
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Chapter$2:$Perception$
Perception:'the'process'by'which'an'individual'selects,'organizes,'and'interprets'information'he'
or'she'receives'from'the'environment'[ex.'pain'v.'pleasure'of'wearing'high'heels]'
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Video:'Beer'Necessities'
- Perception'of'quality'is'multi-sensory'(ex.'twirling'glass,'smelling,'listening)'
- Novices'and'experts'have'different'abilities'when'comparing'beers'
- To'many,'quality'(beer'taste)'is'not'a'differentiating'choice'facture'
'
Perceptual'Process'
- Sensory'stimuli:'sight,'sound,'smell,'taste,'texture'
- Sensory'receptors:'eyes,'ears,'nose,'mouth,'skin'
- Exposure,'attention,'interpretation,'expectation'
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Factors'Shaping'Perception'
- Stimulus'Characteristics:'perception'is'multi-sensory,'many'sources'of'information'
- Context:'consumer'judgements'often'influenced'by'the'setting,'situation'and'
circumstances'
- Customer'Characteristics:'shaped'by'person'knowledge'and'experiences'
'
Video:'Planes,'Trains,'and'Automobiles'
- The'character'was'being'annoying'on'the'plane,'to'a'person'who'obviously'wasn’t'
interested'in'talking'(giving'non-verbal'cues),'not'being'respectful'of'others'
- Sleeping'on'stranger,'loudly'talking,'being'disruptive'
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Perceptual'Filters'
- Perceptual'Vigilance:'consumers'are'more'aware'of'information'when'they'are'in'the'
market'(ex.'pepto'bismol)'
- Perceptual'Defense:'people'see'what'they'want'to,'and'don’t'see'what'they'don’t'want'
to'see'(ex.'gun'regulations)'
'
Slight'changes'can'make'a'difference'
- Just'noticeable'logo'changes'over'the'years'
o Ex.'John'Deere'logo'change'after'almost'going'bankrupt,'deer'jumping'up'in'new'
logo'as'opposed'to'jumping'down,'symbol'of'positive'steps'forward'
- Changing'the'name'of'products'depending'on'the'market'
o Ex.'Dolphin'is'called'blue'shark'on'some'menus'
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Example:'Johnny'Cash'“Ring'of'Fire”'was'almost'used'in'hemorrhoid'cream'commercials,'after'
death'co-writer'wanted'to'sell'out,'family'was'upset'since'the'song'was'about'his'relationship'
with'his'wife'[different'perceptions'between'sentimental'family'and'money'hungry'co-writer]'

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Chapter$3:$Learning$and$Memory$
The'Learning'Process:'
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Classical'Conditioning'Example:'Molson'“Twin'Label'Technology”''
- Molson'man'featured'with'puppies,'sweet'stories'to'appeal'to'women'
- Idea'that'women'will'see'the'sweet'Molson'men,'be'attracted,'and'have'similar'feels'
towards'other'men'drinking'Molson'
- Molson'labels'that'have'suggestive'comments'on'reverse'side'(conversation'starters)'
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Instrumental'Conditioning:'involves'positive'or'negative'outcomes,'includes'a'deliberate'
behaviour'to'obtain'a'goal'
- Positive'reinforcement:'response'is'strengthened,'appropriate'behaviour'learned'
- Negative'reinforcement:'removal'of'negative'event'strengths'connection'
- Punishment:'weakens'responses,'following'negative'outcome'
- Extinction:'weakened'connection,'removal'of'positive'event'
- Applications:'reinforcement'of'consumption/schedules'(ex.'reminders'at'different'
stages)'
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Cognitive'Learning'Theory:'people=problem'solvers,'master'environment'by'using'information'
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Observational'Learning:'modeling/imitation,'vicarious'learning,'watching'others'
['attention'–'retention'–'ability'to'perform'behaviour'–'motivation'='observational'learning]'
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Memory'Systems'
- (1)'Sensory'Memory:'temporary'storage'of'information'
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