PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT Ch# 1 Term Consumer behaviour 1 Production concept 1 Product concept 1 Selling concept 1 Marketing concept 1 Societal marketing concept 1 Marketing ethics Definition The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. The assumption that consumers are mostly interested in product availability at low prices. The assumption that consumers will buy the product that offers them the highest quality, the best performance, and the most features. The assumption that a marketer's primary goal should be to sell the product(s) that it has unilaterally decided to produce. A consumer-oriented marketing philosophy that states that, to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfaction better than the competition A philosophy of marketing that requires all marketers to adhere to principles of social responsibility in the marketing of their goods and services. Designing marketing mixes and programs in such a way that Sound File PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 1 Consumer decision making 2 Motivational research 2 Quantitative research 2 Qualitative research 2 Positivism negative consequences to consumers, employees, and society in general are avoided. Two distinct but interlocking stages: the process (recognition of problem, prepurchase search, and evaluation of alternatives) and its outcomes (purchase and postpurchase evaluation). Both stages are influenced by factors internal and external to the consumer. : Qualitative research aimed at uncovering consumers' subconscious or hidden motivations. Research methods (surveys, observation, and experiments) that are empirical and descriptive, and that describe consumer behaviour, explain the effects of marketing inputs on consumer behaviour, or predict consumer behaviour. Research methods (interviews, focus groups, projective techniques, etc.) that are more subjective and that try to explain the act of consumption and hidden motivations for consumption. A research approach that regards PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 2 Cunsumer research 2 Interpretivism 2 Exploratory study 2 Secondary data 2 Secondary research 2 Primary data 2 Primary research 2 Customer lifetime value (CLV) 2 Controlled experiment consumer behaviour as an applied science and focuses primarily on consumer decision making. Methodology used to study consumer behaviour. A postmodernist approach to the study of consumer behaviour that focuses on the act of consuming rather than on the act of buying. A small-scale study carried out to identify the critical issues that need to be examined in further detail. Data collected for purposes other than problems under study. Research aimed at locating secondary data. Data collected specifically for the purposes of a particular research study. Original research aimed at collecting primary data. Profiles of customers drawn from internal data that show the net value of customers to the firm. A causal research study in which some variables (independent variables) are manipulated in one group but not in another to ensure that any difference in the outcome (the dependent variable) is due to different PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 2 Validity 2 Reliability 2 Depth interview 2 Projective techniques 2 Focus group 2 Metaphor analysis 2 Probability samples 2 Non-probability samples treatments of the variable under study and not to extraneous factors. The degree to which a measurement instrument accurately measures what it claims to measure. The degree to which a measurement instrument is consistent in what it measures. A long (generally 30 minutes to an hour), unstructured interview between a respondent and a highly trained interviewer. Motivational research methods designed to tap the underlying (and often unconscious) motives of individuals. A focused discussion of a product or any other subject of interest with a group of 8 to 10 respondents, moderated by a trained researcher. The use of one form of expression (e.g., pictures collages) to describe or represent feelings about a product or service. Samples in which respondents are chosen by some probability technique that leads to findings that are projectable to the entire population. Samples that are chosen by nonprobability methods that lead to PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 2 Customer satisfaction measurement 3 Motivation 3 Physiological (or biogenic) needs Psychological (or psychogenic) needs 3 3 Rational motives 3 Emotional motives 3 Latent motives 3 Manifest motives 3 Goals 3 Generic goals 3 Product-specific goals 3 Positive motivation findings that may not be projectable to the entire population. Quantitative or qualitative studies aimed at gauging customer satisfaction and its determinants. The driving force within individuals that impels them to action. Innate or biogenic needs, such as the need for food Acquired needs learned in response to our cultural environment. Goals chosen according to totally objective criteria, such as quantity or price. Goals chosen according to personal or subjective criteria such as desire for social status. Motives that the consumer is either unaware of or unwilling to recognize. Motives that the consumer is aware of and willing to recognize. The sought-after results of motivated behaviour. Product categories or classes that a consumer seeks in order to fulfill his or her needs. Specific brands that a consumer seeks in order to fulfill his or her needs. A motive that drives a person toward an object. PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 3 Negative motivation 3 Approach object 3 Avoidance object 3 Defence mechanisms 3 Prepotent need 3 Motivational conflict Maslow's hierarchy of needs 3 3 Psychological reactance 3 Opponent process theory 3 Priming 3 Hedonic consumption 3 Optimum stimulation level 3 Motivational research A motive that drives a person away from an object. An object that the consumer is directed toward. An object that the consumer is directed away from. Methods of coping with the frustration that results when a person fails to achieve a goal. The need or motive that serves as the triggering mechanism that moves a consumer to action. Conflict between two motives. A theory of motivation that states that people move through five levels of needs–from physiological to self-actualization. Motivational arousal due to a threat to behavioural freedom. A theory that states that an extreme positive (or negative) initial reaction will be followed by an extreme negative (or positive) reaction. The desire for more of a stimulus (or product) that occurs when a person is exposed to small amounts of it. The need to obtain pleasure through the senses. The level of stimulation that an individual considers to be ideal. Qualitative research aimed at uncovering consumers' PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 3 Involvement 3 Enduring involvement 3 Situational involvement 3 Cognitive involvement 3 Affective involvement 4 Personality 4 Psychoanalytic theory 4 Neo-Freudian personality theories 4 Cognitive theories of personality subconscious or hidden motivations. The level of personal relevance that a consumer sees in a product. Involvement that is long-lasting; arises out of a sense of high personal relevance. Short-term involvement in a product or purchase of low personal relevance. Involvement at a rational level in products that are seen as major purchases. Involvement at an emotional level in products. Those inner psychological characteristics that both determine and reflect how a person responds to his or her environment. A theory of personality built on the premise that unconscious needs or drives, especially sexual and other biological drives, are at the heart of human motivation. A school of personality theory that stresses that social relationships are fundamental to the formation and development of personality. A school of personality theories that see individual personality differences as differences in cognitive process, that is, in how PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 4 Need for cognition 4 Visualizers 4 Verbalizers 4 Trait theory 4 Consumer innovativeness 4 Consumer materialism 4 Consumer ethnocentrism 4 Consumer innovators 4 Brand personification 4 Multiple selves consumers process and react to information. The personality trait that measures a person's craving for or enjoyment of thinking. Consumers who prefer visual information. Consumers who prefer written or verbal information. A theory of personality that focuses on the measurement of specific psychological characteristics. The degree to which a consumer is receptive to new products, services or practices. A personality-like trait that distinguishes between individuals who regard possessions as essential to their identities and their lives and those for whom possessions are secondary. A consumer's predisposition to accept or reject foreign-made products. People who are likely to be the first to try new products, services, or practices. The ascription of specific personality-type traits or characteristics to brands. The different images that consumers have of themselves in response to PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 4 4 4 4 Actual selfimage Ideal self-image Social selfimage Ideal social self-image 4 Extended self 4 Expected selfimage 4 “Ought-to” self 4 Psychographic segmentation 4 Geodemographic segmentation 5 Perception 5 Sensation 5 Sensory receptors different situations and different people that may cause them to react differently. How consumers in fact see themselves. How consumers would like to see themselves. How consumers feel others see them. How consumers would like others to see them. Consumers' use of possessions to confirm or extend their self-images. How consumers expect to see themselves at some specified future time. Consists of traits or characteristics that an individual believes it is his or her duty or obligation to possess. Segmenting of consumers on the basis of their activities, interests, and opinions. Dividing the market or consumers by location. The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. The immediate and direct response of the sensory organs to stimuli. The human organs (the eyes, ears, nose, mouth, and skin) that receive sensory inputs. PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 5 Absolute threshold 5 Sensory adaptation 5 Differential threshold, or j.n.d 5 Weber's law 5 Subliminal perception 5 Selective perception 5 Perceptual blocking 5 Gestalt psychology 5 Figure and ground 5 Grouping 5 Closure The lowest level at which an individual can experience a sensation. Getting used to certain sensations or becoming accommodated to a certain level of stimulation. The minimal difference that can be detected between two similar stimuli. A law that states that the the j.n.d between two stimuli depends on the intensity of the first stimulus. Unconscious awareness of weak stimuli. The conscious and subconscious screening of stimuli by consumers through selective exposure, selective attention, perceptive defence, and perceptual blocking. The subconscious screening out stimuli that are threatening or inconsistent wih our needs, values, beliefs, or attributes. The study of principles of how people organize or configure stimuli. The organization of perceptions into background and dominant (or figure) relationships. The tendency to organize information into chunks or groups to facilitate memorization and recall. The need to complete PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 5 Consumer imagery 5 Positioning 5 Repositioning 5 Perceptual mapping 5 Perceived price 5 Reference price 5 Tensile price claims 5 Objective price claims Perceived quality 5 5 Intrinsic cues 5 Extrinsic cues incomplete patterns. The enduring perceptions or images of products, prices, and product quality that consumers develop using various stimuli. Developing a distinct image for the product or service in the mind of the consumer in order to differentiate the offering from those of competitors. Attempting to change the image that consumers have of a product. A technique used to determine how consumers perceive a company's products–either in relation to other products or in regard to key attributes. Consumers' perceptions of price as fair, high, or low. The price that a consumer uses as a basis for comparison in judging another price. Promoting a range of price discounts for an entire product line, department, or store. Promoting a single discount level. Consumers' perceptions of product quality. Physical characteristics of the product such as size, colour, or flavour. Cues such as price PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 5 Price-quality relationship 5 Perceived risk 5 Narrow categorizers 5 Broad categorizers 6 Consumer learning 6 Motivation 6 Cues 6 Response 6 Reinforcement 6 Behavioural learning theory 6 Classical or country of origin that are external to the product. Perceived relationship between the price of a product and its quality. The uncertainty that consumers face when they cannot foresee the consequences of their purchase decisions. People who limit their choices to a few safe alternatives. People who make their choices from a wide range of alternatives. The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour. The driving force within individuals that impels them to action. The stimuli that give direction to motives. How individuals react to a drive or cue. A positive or negative outcome that influences the likelihood that a behaviour will be repeated in response to the same cue or stimulus. A theory that states that learning has happened when observable responses to external stimuli occur in a predictable way. Conditioned learning PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT conditioning 6 Conditioned learning 6 Unconditioned stimuli 6 Conditioned stimuli 6 Advertising wear-out 6 Stimulus generalization 6 Family branding 6 Licensing 6 Stimulus discrimination 6 Instrumental or operant conditioning 6 Positive reinforcement or learning that occurs through the pairing of stimuli. Learning that results when a stimulus is paired with another stimulus and draws the same response as that stimulus. Stimuli that consumers already know and like. Stimuli or objects that are linked to a previously known and liked stimulus (i.e., unconditioned stimuli) to elicit the same response. The reduction in attention and retention caused by overexposure to advertisements. Making the same response to similar stimuli. The marketing of an entire product line under the same brand name. Affixing a wellknown brand name to the products of other manufacturers. The ability to differentiate (or discriminate between) similar stimuli. A theory which states that learning occurs through trial-and error as a result of reinforcements received for specific behaviour. Outcomes that increase the likelihood of behaviour being repeated when the same stimuli are presented. PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 6 Negative reinforcement 6 Distributed learning 6 Massed learning 6 Rote learning 6 Modelling 6 Cognitive learning 6 Reasoning 6 Imagery 6 6 Short-term store or working memory Long-term store 6 Encoding 6 Sensory store Outcomes that decrease the likelihood of a behaviour being repeated when the same stimuli are presented. A learning schedule that is spread out to facilitate retention of the material. A learning schedule (or information presentation) that is compressed to facilitate fast learning. Learning of concepts or ideas through simple repetition. The process through which individuals learn behaviour by observing the behaviour of others and the consequences of such behaviour. Learning based on mental activity or processing of information. The highest form of cognitive learning, which involves creative thinking. The ability of consumers to form mental pictures or images. The processing of information and its short-term storage. The retaining of processed information for extended periods of time. The process of choosing a word or visual image to represent a perceived object. The storing of sensory input for a few seconds in PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 6 Activation 6 Schema 6 Retrieval 6 Peripheral route to persuasion 6 Elaboration likelihood model 6 Central route to persuasion 6 Recognition test 6 Recall tests 6 Comprehension 6 Shaping memory. Relating new data to old ones to make the new material more meaningful. The whole package of associations brought to mind when a cue is activated. The process by which we recover information from long-term storage. The use of passive learning processes to reach consumers in a low-involvement situation. A theory that suggests that a person's level of involvement during message processing is a critical factor in determining which route to persuasion is likely to be effective. The reaching of highly involved consumers through ads that focus on cognitive learning. Aided recall tests in which a consumer is shown an ad and asked whether he or she remembers seeing it and remembers its key points. Unaided recall tests in which consumers are asked if they have read a specific magazine (or watched a specific television show) and can remember any ads from it. The grasping of the intended message of an advertisement. The reinforcement of pre-purchase behaviour to lead the consumers slowly PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 7 Attitude 7 Utilitarian function 7 Ego-defensive function 7 Value-expressive function 7 Knowledge function 7 Tri-component attitude model 7 Multi-attribute toward making a purchase. A learned predisposition to behave in a consistently favourable or unfavourable way with respect to a given object. A component of the functional approach to attitude formation and change which suggests that consumers hold certain attitudes partly because of the brand. A component of the functional approach to attitude formation and change that suggests that consumers want to protect their selfconcepts from inner feelings of doubt. A component of the functional approach to attitude formation and change that suggests that attitudes express consumers' general values, lifestyles and outlook. A component of the functional approach to attitude formation and change that suggests that consumers have a strong need to know and understand the people and things with which they come into contact. An attitude model consisting of three parts: a cognitive (knowledge) part, an affective (feeling) part, and a conative (behavioural) part. Attitude models that PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT attitude models 7 Attitude-towardobject model 7 Attitude-towardbehaviour model 7 Theory of reasoned action 7 Cognitive dissonance theory 7 Attribution theory 7 Self-perception theory 7 Foot-in-the-door examine the composition of consumer attitudes in terms of selected product attributes or beliefs. A model that proposes that a consumer's attitude toward a product or brand is a function of the presence of certain attributes and the consumer's evaluation of these attributes. A model that proposes that a consumer's attitude toward a specific behaviour is a function of how strongly he or she believes that the action will lead to a specific (favourable or unfavourable) outcome. A comprehensive theory of the interrelationship among attitudes, intentions, and behaviour. The discomfort or dissonance that consumers experience as a result of conflicting information. A theory concerned with how people assign causality to events and form or alter their attitudes as an outcome of those attributions. A theory that suggests that consumers develop attitudes by reflecting on their own behaviour. A theory of attitude PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT technique 7 Attributions toward others 8 Communication 8 Formal communications source 8 Informal communications source 8 Word-of-mouth communications 8 Impersonal communications 8 Interpersonal communications 8 Interactive communications 8 Feedback change that suggests individuals form attitudes that are consistent with their own prior behaviour. Consumers' perception that another person is responsible for either positive or negative product performance. The transmission of a message from a sender to a receiver via a medium (or channel) of transmission. A for-profit or notfor-profit organization that sends a message to the consumer. Parents, friends, or other personal sources of communication. Informal conversations about a product or service. Communications through mass media, such as television, newspapers, and magazines, that are directed toward large audiences. Communications that occur directly between people by telephone, email, or mail or in person. Impersonal or interpersonal communications that permit the audiences of communication messages to provide direct feedback. Verbal or non-verbal communication from the receiver of a message back to the sender. PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 8 Publicity 8 Source credibility 8 Opinion leader 8 Institutional advertising 8 Sleeper effect 8 Advertising resonance 8 Message framing 8 One-sided messages 8 Two-sided messages 8 Comparative advertising Messages that appear in space or time usually reserved for editorial messages, usually through public relations efforts by the firm. The apparent honesty and objectivity of the source of communication. The person in a word-of-mouth encounter who offers advice or information about a product or service. Advertising that is intended to promote a favourable company image rather than specific products. The tendency of communications to lose the impact of source credibility over time. Wordplay, often used to create a double meaning, used in combination with a relevant picture. The designing of a message to stress either the benefits to be gained by using the products or the benefits that will be lost if the product is not used. Messages that state only the positive features or benefits of the product. Messages that state the positive and some negative features or benefits of the product. Advertising that explicitly names or identifies a competitor for the purpose of claiming overall superiority or superiority on PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 8 Order effect 8 Abrasive advertising 8 Psychological noise 8 Consumer profile 8 Audience profile 9 Culture 9 Enculturation 9 Acculturation 9 Symbol 9 Ritual 9 Ritualistic behaviour 9 Core values one or more attributes. The effect of the order of presentation of the ad–that is, whether it is placed first, last, or in the middle of a set of ads. Advertising that is unpleasant or annoying. Barriers to message reception such as competing advertising messages or distracting thoughts. Psycho-demographic profile of the target market of a product or service. Psycho-demographic profile of the readers, viewers, or listeners of a medium. The sum total of learned beliefs, values, and customs that direct the consumer behaviour of members of a particular society. The process of learning our own culture. The process of learning a new or foreign culture. Anything that stands for something else. A type of symbolic activity consisting of a series of steps (multiple behaviours) that take place in a fixed sequence and are repeated over time. Any behaviour that is made into a ritual. Criteria or values PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 9 Subculture 9 Content analysis 9 Consumer fieldwork 9 Field observation 9 Participantobserver 9 Rokeach Value Survey 10 Subculture that both affect and reflect the character of a society. A distinct cultural group that exists as an identifiable segment within a larger, more complex society. A method for systematically analyzing the content of verbal, written, and pictorial communication. Often used to study cultural values. Observational research by anthropologists of the behaviour of a small sample of people from a particular society. A cultural observation technique that observes behaviour that takes place in a natural environment (sometimes without the subject's knowledge). A researcher who participates in a study without informing those who are being observed. A self-administered inventory consisting of 18 terminal values (or personal goals) and 18 instrumental values (or way of reading those personal goals. A distinct cultural group that exists as an identifiable segment within a larger, more complex society. PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 10 Subcultural interaction 10 Racio-ethnic subcultures 10 Religious subcultures 10 Regional subcultures 10 Age subculture 10 Generation Y 10 Generation X 10 Baby boomers 10 Cognitive age 10 Sex role 10 Gender subcultures Social class 11 The interaction among the various subcultural memberships of consumers and its impact on their behaviour. Subcultures based on race (genetically imparted physiognomical features such as colour of skin) and/or ethnicity (which includes race, origin or ancestry, language, and religion). People who are followers of a particular religion (e.g., Christianity, Judaism, Islam, Hinduism). Groups that identify with the regional or geographical areas in which they live. Age subgroup of the population. People born between the years 1977 and 1994. People born between the years 1965 and 1977. Persons born between 1946 and 1964. An individual's perceived age (usually 10 to 15 years younger than his or her chronological age. The traits that are attributed to males and females. Subcultures based on gender or sex roles. The division of members of a society into a hierarchy of distinct status classes, so that members of each class have the same PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 11 Social status 11 Social comparison theory 11 Subjective measures 11 Class consciousness 11 Reputational measures 11 Objective measures 11 Single-variable index 11 Compositevariable indexes 11 Index of Status Characteristics relative status and members of all other classes have either more or less status. The amount of status the members of that class have in comparison with members of other social classes. A socialpsychological concept that states that individuals compare their own material possessions with those owned by others in order to determine their relative social standing. Asking people to estimate their own social-class position. An individual's sense of belonging to or identification with others of the same social class. Using selected community informants to make judgments about which social class other members of the community belong to. Using selected demographic or socio-economic variables to measure a person's social class. A measure of social class that uses just one socio-economic variable. The systematic combining of a number of socioeconomic factors to form one overall measure of socialclass standing A weighted measure of occupation, PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 11 Socio-economic Status Score 12 Reference group 12 Symbolic group 12 Direct reference groups 12 Indirect reference groups 12 Informal reference groups 12 Formal reference groups 12 Informational influence 12 Normative influence source of income, house type, and dwelling area. : A measure using three basic socioeconomic variables: occupation, family income, and educational attainment. A person or group that serves as a point of comparison (or reference) for an individual in forming either general or specific values or attitudes, or as a specific guide for behaviour. A group that a person identifies with by adopting its values, attitudes, and behaviour in spite of knowing that he or she cannot belong to that group. Groups within which a person interacts on a direct basis, such as family and close friends. Groups with which a person does not come into face-to-face contact. Groups in which there are no official memberships or formal structures. Groups with formal membership structures and rules. A type of reference group influence that occurs when a member of a reference group provides information that is used to make purchase decisions. A type of influence that occurs when we PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 12 Identification influence 12 Shopping group 12 Virtual groups 12 Brand community 12 Consumer-action group 12 Celebrity credibility 12 Family 12 Family life cycle 12 Traditional family life cycle conform to a group's norms or expectations in order to belong to that group. A type of reference group influence that occurs because we identify with, and have internalized, the group's values and behaviour. Two or more people who shop together, whether for food, for clothing, or simply to pass the time. Groups that exist by virtue of using the internet as the medium of communication. A group of consumers whose social bonds are based on their interest in and usage of a brand. A group that is dedicated to helping consumers make the right purchase decisions, use products and services, and improve the quality of their lives. The audience's perception of both the celebrity's expertise and trustworthiness. Two or more persons related by blood, marriage, or adoption who live together. Classification of families into distinct and significant stages. A progression of stages through which many families pass, starting with bachelorhood, moving PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 12 Husbanddominated decisions 12 Wife-dominated decisions 12 Joint decisions 12 Autonomic decisions 12 Socialization of family members 12 Consumer socialization 13 Opinion leadership 13 Opinion leader on to marriage, then to family growth (with the birth of children), to family contraction, and ending with the dissolution of the basic unit. Family purchase decisions in which the husband is the key decision maker. Family purchase decisions in which the wife is the key decision maker. Family purchase decisions in which the final decision is made with equal involvement from both spouses. Family purchase decisions in which the final decision is made by either spouse individually. A process of imparting to children the basic values and modes of behaviour consistent with the culture. The process by which children acquire the skills, knowledge, attitudes, and experiences necessary to function as consumers. The process by which one person (the opinion leader) informally influences the actions or attitudes of others, who may be opinion seekers or merely opinion recipients. The person in a word-of-mouth encounter who offers advice or information about a PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 13 Opinion seekers 13 Purchase pal 13 Surrogate buyers 13 Market maven 13 Viral marketing 13 Two-step flow of communication theory 13 Multi-step flow of communication theory product or service. Individuals who actively seek information and advice about products from others. An information source who accompanies a consumer on shopping trips; may or may not be an opinion leader. Professional buyers who help buyers purchase products; often, they act as opinion leaders. A person whose influence stems from general knowledge and market expertise, which lead to an early awareness of a wide range of new products and services. Encouraging consumers to spread a marketing message to others; can lead to exponential growth in message exposure. A theory that portrays opinion leaders as direct receivers of information from impersonal mass media sources who in turn transmit (and interpret) this information to the masses. A modification of the two-step theory, the multi-step theory views the interpersonal flow of communication as a multi-step process in which information flows both ways PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 13 Diffusion of innovations 13 Diffusion process 13 Adoption process 13 Consumer innovators 13 Innovation 13 Continuous innovation 13 Dynamically continuous innovation 13 Discontinuous innovation between opinion leaders and opinion receivers, and between opinion receivers and information receivers. The framework for examining consumer acceptance of new products throughout the social system. A macro process concerned with the spread of a new product (an innovation) from its source to the consuming public. A micro process that focuses on the stages through which an individual consumer passes when deciding to accept or reject a new product. People who are likely to be the first to try new products, services, or practices. A totally new product, service, idea or practice. A new product that is an improved or modified version of an existing product; this is the least disruptive influence on consumer consumption patterns. A new product entry that is innovative enough to have some disruptive effects on established consumption practices. A dramatically new product entry that requires the establishment of new consumption PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 13 Adopter categories 13 Stages in the adoption process 14 Consumer decision making 14 Extensive problem solving 14 Limited problem solving practices. A classification scheme that shows where a consumer stands in relation to other consumers in terms of time (or when the consumer adopts a new product). The process by which an individual moves from product awareness to interest, evaluation, trial, and finally, adoption. Two distinct but interlocking stages: the process (recognition of problem, prepurchase search, and evaluation or alternatives) and its outcomes (purchase and postpurchase processes). Both stages are influenced by factors internal and external to the consumer. Consumer decisionmaking situations in which there are no established criteria for evaluating a product category or brand or those in which the number of brands have not been narrowed to a small subset. Consumer decisionmaking situations in which basic criteria for product evaluation have been established, but fully established preferences about a select group of brands have not been set. PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 14 Routinizedresponse behaviour 14 Need recognition 14 Pre-purchase search 14 Evoked set 14 Inept set 14 Inert set 14 Surrogate indicators 14 Consumer decision rules or heuristics 14 Compensatory decision rules Decision-making situations in which consumers have experience with the product category and a well- established set of criteria with which to evaluate brands they are considering. The realization by a consumer that there is a difference between his or her actual and desired states. The stage in consumer decision making in which the consumer perceives a need and actively seeks out information about products that will help satisfy that need. The set of brands that the consumer considers while making a choice. Brands that the consumer is aware of but excludes from purchase consideration. Brands that the consumer is aware of but is indifferent toward and hence does not consider while making a choice. Attributes that are used as indicators of another attribute. Procedures used by consumers to facilitate brand (or other consumptionrelated) choices. Decision rules in which consumers evaluate each brand in terms of each relevant attribute PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 14 Non-compensatory decision rules 14 Conjunctive decision rule 14 Disjunctive decision rule 14 Lexicographic decision rule 15 Purchase behaviour 15 Gifting behaviour 15 15 Self-gifts Inter-category gifting and then select the brand with the highest weighted score. Rules in which a positive evaluation of an attribute does not compensate for a negative evaluation of the same brand on another attribute. A non-compensatory decision rule in which minimum criteria are established and brands that do not meet these minimum cutoffs are eliminated from further consideration. A non-compensatory decision rule in which minimally acceptable cutoffs are set and any brand that meets or surpasses any cut off is chosen. A non-compensatory rule in which attributes are first ranked in terms of importance, brands are compared on the most important attribute first, and the brand that scores the highest is chosen. The process is repeated if necessary. The outcome of a consumer's decisionmaking process, including brand, store, and payment option choices. The process of exchanging gifts between two or more individuals. Gifts to ourselves. Gifts from an individual to a PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 15 Intra-group gifting 15 Interpersonal gifting Intra-personal gifting Consumption process 15 15 15 Brand loyalty 15 Post-purchase cognitive dissonance 15 Relationship marketing 16 Market segmentation 16 Targeting 16 Positioning group or a group to an individual. Gifts by a group to itself or its members. Gifts exchanged between individuals. Gifts given to ourselves. The input (consumption set and consuming style), process (using, possessing, collecting, and disposing of), and output stages (feelings moods, attitudes, and behaviour) that follow the purchase decision. Consistent preference and/or purchase of the same brand in a specific product/service category. The discomfort or dissonance that consumers experience after purchase about whether or not they made the right decision. Marketing programs aimed at creating strong, lasting relationships with a core group of customers by making them feel a personal connection to the business. The process of dividing a market into distinct subsets of consumers with common needs or characteristics. The selection of one or more segments to focus on with a distinct marketing mix. Developing a PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 16 Marketing mix 16 Hybrid segmentation 16 Geographic segmentation 16 Micromarketing 16 Psychological segmentation 16 Psychographic segmentation 16 Socio-cultural segmentation 16 Benefit segmentation 16 Geodemographic segmentation distinct image for the product or service in the mind of the consumer in order to differentiate the offering from those of competitors. The combination of product, price, promotion, and place (or distribution) that a company offers. Combining several segmentation variables to divide the market. Dividing the market or consumers by location Highly regionalized marketing strategies that use promotional campaigns geared to local market needs. Segmenting the market by means of intrinsic or inner qualities (e.g., motivation, personality) of consumers. Segmenting consumers on the basis of their activities, interests, and opinions. Using group and cultural variables to segment consumers. Segmenting consumers according to the benefits of the product or service that is meaningful to them. A type of hybrid segmentation that uses geographic variables (e.g., postal codes or neighbourhoods) and demographic variables to segment PLEASE NOTE THAT CHAPTER 16 IS TO BE RENAMED AS APPENDIX TO PART 1 IN THE FINAL PRODUCT 16 Concentrated marketing 16 Differentiated marketing 16 Countersegmentation markets. Targeting just one segment with a unique marketing mix. Targeting several segments with individual marketing mixes. Recombining two or more segments into a larger single segment that could be targeted with an individually tailored product or promotional campaign.