Chap 1

1) The field of consumer behavior is the study of individuals, groups, or organizations and
the processes they use to select, secure, use, and dispose of products, services,
experiences,
or ideas to satisfy needs and the impacts that these processes have on the consumer
and society.
2) Consumer behavior is a complex, multidimensional process.
3) Successful marketing decisions by firms, nonprofit organizations, and regulatory agencies
require an understanding of the processes underlying consumer behavior.
4) Successful marketing decisions require organizations to collect information about the
specific consumers involved in the marketing decision at hand.
5) Marketing practices designed to influence consumer behavior involve ethical issues that
affect the firm, the individual, and society.
6) Social marketing is the application of marketing strategies and tactics to alter or create
behaviors that have a positive effect on the targeted individuals or society as a whole.
7) Customer value is the difference between all the benefits derived from a total
product and all the costs of acquiring those benefits.
8) It is critical that a firm consider value from the customers perspective.
9) An experience occurs when a company intentionally creates a memorable event for
customers.
10) A market segment is a portion of a larger market whose needs differ somewhat from
the larger market.
11) Behavioral targeting, in which consumers online activity is tracked and specific banner
ads are delivered based on that activity.
12) The term need set is used to reflect the fact that most products in developed
economies satisfy more than one need.
13) clustering or grouping consumers with similar need sets. For example, those who are
basic shoppers are all similar in that their most critical need set is mall essentials.
14) target marketthe segment(s) of the larger market on which we will focus our
marketing effort.
15) Marketing strategy is basically the answer to the question, How will we provide
superior customer value to our target market?
16) The marketing mix is the product, price, communications, distribution, and services
provided to the target market.
17) A product is anything a consumer acquires or might acquire to meet a perceived need.

18) Marketing communications include advertising, the sales force, public relations,
packaging, and any other signal that the firm provides about itself and its products.
19) Price is the amount of money one must pay to obtain the right to use the product.
20) Consumer cost is everything the consumer must surrender in order to receive the
benefits of owning/using the product.
21) Distribution, having the product available where target customers can buy it, is
essential
to success.
22) product positionan image of the product or brand in the consumers mind relative to
competing
products and brands.
23) Injurious consumption occurs when individuals or groups make consumption
decisions that
have negative consequences for their long-run well-being.
24) Culture is perhaps the most pervasive influence on consumer behavior.
25) Self-concept is the totality of an individuals thoughts and feelings about him- or
herself.
26) Lifestyle is, quite simply, how one lives, including the products one buys, how one uses
them, what one thinks about them, and how one feels about them. Lifestyle is the
manifestation of the individuals self-concept,

Chap 2
1) Global citizens (55 percent)Positive toward international brands and view them as a
signal of higher quality; most concerned about corporate responsibility to the local country.
2) Global dreamers (23 percent)Positive toward international brands and buy into
theirpositive symbolic aspects; less concerned about corporate responsibility to the
localcountry. Equally distributed across countries.
3) Antiglobals (13 percent)Negative toward international brands; dont like brands that
preach American values; dont trust multinationals.
4) Global agnostics (9 percent)Dont base decisions on global brand name; evaluate as
they would local brands; dont see global brands as special.
5) Culture is the complex whole that includes knowledge, belief, art, law, morals, customs,
and any other capabilities and habits acquired by humans as members of society.
6) The boundaries that culture sets on behavior are called norms, which are simply rules
that specify or prohibit certain behaviors in specific situations.
7) Norms are derived from cultural values, or widely held beliefs that affirm what is
desirable. Violation of cultural

norms results in sanctions, or penalties ranging from mild social disapproval to banishment
from the group.
8) Other-oriented values reflect a societys view of the appropriate relationships between
individuals and groups within that society.
9) Environment-oriented values prescribe a societys relationship to its economic and
technical as well as its physical environment.
10) Self-oriented values reflect the objectives and approaches to life that the individual
members of society find desirable.
11) Collectivist cultures tend to place a strong value on uniformity and conformity,whereas
more individualistic cultures tend to value diversity.
12) Performance/status is closely related to the concept of power distance, which refers
to the degree to which people accept inequality in power, authority, status, and wealth as
natural or inherent in society.
13) There are two types of materialism.Instrumental materialism is the acquisition of
things to enable one to do something.
14) Terminal materialism is the acquisition of items for the sake of owning the item itself.
15) Differences in verbal communication systems (languages) are immediately obvious
to
anyone entering a foreign culture.
16) Nonverbal communication systems are the arbitrary meanings a culture assigns
actions, events, and things other than words.
17) Believing that a person does one thing at a time, we have a strong orientation toward
the present and the
short-term future. This is known as a monochronic time perspective.
18) People and relationships take priority over schedules, and activities occur at their
own pace rather than according to a predetermined timetable. Such cultures have an
orientation
toward the present and the past. This is known as a polychronic time perspective.
19) Etiquette represents generally accepted ways of behaving in social situations.
20) Disposable income is one aspect of demographics. Demographics describe a
population in terms of its size, structure, and distribution. Size refers to the number of
individuals in the society. Structure describes the society in terms of age, income,
education, and occupation. Distribution refers to the physical location of individuals in
terms of geographic region and rural, suburban, and urban location.
21) Marketers increasingly use purchasing power parity (PPP) rather than average or
median income to evaluate markets. PPP is based on the cost of a standard market basket of
products bought in each country.

Chap 7
3

1) group is defined as two or more individuals who share a set of norms, values, or beliefs
and have certain implicitly or explicitly defined relationships to one another such that their
behaviors are interdependent.
2) A reference group is a group whose presumed perspectives or values are being used by
an individual as the basis for his or her current behavior.
3) Four criteria are particularly useful: (1) membership, (2) strength of social tie, (3) type of
contact, and (4) attraction.
4) Strength of social tie refers to the closeness and intimacy of the group linkages.
5) Primary groups, such as family and friends, involve strong ties and frequent interaction.
6) Secondary groups, such as professional and neighborhood associations, involve weaker
ties and less-frequent interaction.
7) Type of contact refers to whether the interaction is direct or indirect.
8) Attraction refers to the desirability that membership in a given group has for the
individual.
9) Groups with negative desirabilitydissociative reference groupscan influence
behavior just as those with positive desirability do.
10) Non membership groups with a positive attractionaspiration reference groups.
11) A consumption subculture is a distinctive subgroup of society that self-selects on the
basis
of a shared commitment to a particular product class, brand, or consumption activity. These
groups have (1) an identifiable, hierarchical social structure; (2) a set of shared beliefs or
values; and (3) unique jargon, rituals, and modes of symbolic expression.
12) A brand community is a nongeographically bound community, based on a structured
set of social relationships among owners of a brand and the psychological relationship they
have with the brand itself, the product in use, and the firm.
13) A community is characterized by consciousness of kind, shared rituals and traditions,
and a sense of moral responsibility.
14) An online community is a community that interacts over time around a topic of
interest on the Internet.
15) An online social network site is a web-based service that allows individuals to (1)
construct a public or semipublic profile within a bounded system, (2) articulate a list of other
users with whom they share a connection, and (3) view and traverse their list of connections
and those made by others within the system.
16) Informational influence occurs when an individual uses the behaviors and opinions of
reference group members as potentially useful bits of information.
17) Normative influence, sometimes referred to as utilitarian influence, occurs when an
individual fulfills group expectations to gain a direct reward or to avoid a sanction.

18) Identification influence, also called value-expressive influence, occurs when

individuals have internalized the groups values and norms.
19) Group influence is strongest when the use of product or brand is visible to the group.
20) Reference group influence is higher the less of a necessity an item is.
21) the more commitment an individual feels to a group, the more the individual
will conform to the group norms.
22) The more relevant a particular activity is to the groups functioning, the stronger the
pressure to conform to the group norms concerning that activity.
23) The final factor that affects the degree of reference group influence is the individuals
confidence in the purchase situation.
24) WOM involves individuals sharing information with other individuals in a verbal form,
including face-to-face, on the phone, and over the Internet.
25) Buzz can be defined as the exponential expansion of WOM.
26) An innovation is an idea, practice, or product perceived to be new by the relevant
Individual or group.
27) The diffusion process is the manner in which innovations spread throughout a market.
The term spread refers to purchase behavior in which the product is purchased with some
degree of regularity.
28) Innovators are venturesome risk takers.
29) Early adopters tend to be opinion leaders in local reference groups.
30) Early majority consumers tend to be cautious about innovations.
31) Late majority members are skeptical about innovations.
32) Laggards are locally oriented and engage in limited social interaction.