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363 Cards in this Set

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Anchoring
A concept in behavioral economics that refers to a number that people use as a standard for future payments.
Behavioral Economics
The study of the behavioral determinants of economic decisions.
Behavioral Influence Perspective
The view that consumer decisions are learned responses to environmental cues, such as buying something because it looks cool.

"Sell the sizzle, not the steak"
Blissful Ignorance Effect
States that people who have details about a product before they buy it do not expect to be as happy with it as do those who got only ambiguous information.
Bounded Rationality
A concept in behavioral economics that states since we rarely have the resources (especially time) to weigh every possible factor into a decision, we settle for a solution that is just good enough.
Brand Advocates
Consumers who supply product reviews online.
Brand Loyalty
Repeat purchasing behavior that reflects a conscious decision to continue buying the same brand.
Category Exemplars
Brands that are particularly relevant examples of a broader classification.
Cognitive Processing Style
A predisposition to process information. Some of us tend to have a rational system of cognition that processes information analytically and sequentially using roles of logic, while others rely on an experiential system of cognition that processes information more holistically and in parallel.
Compensatory Decisions Rules
A set of rules that allows information about attributes of competing products to be averaged in some way; poor standing on one attribute of competing products to be averaged in some way; poor standing on one attribute can potentially be offset by good standing on another.

Type of compensatory rule:

Simple Additive Rule: When an alternative is chosen based on the largest number of positive attributes.

Weighted Additive Rule: Based on the relative importance of each attribute. Very similar to the multi-attribute model.
Consideration Set
the products a consumer actually deliberates about choosing.
Consumer Hyerchoice
A condition where large number of available options forces us to make repeated choices that drain psychological energy and diminish our ability to make smart decisions.
Country of Orgin
Original country from which a product is produced. Can be an important piece of information in the decision-making process.
Cyber-mediary
Intermediary that helps to filter and organize online market information so that consumers can identify and evaluate alternatives more efficiently.

-Directories or portals such as Yahoo

-Forums, fan clubs, and user groups that offer product related discussions.

-
Determinant Attributes
The attributes actually used to differentiate among choices.
Electronic Recommendation Agent
A software tool that tries to understand a human decision maker's multi-attribute preferences for a product category by asking the user to communicate his or her preferences. Based on that data, the software then recommends a list of alternatives sorted by the degree that they fit with the person's preferences.
Ethnocentrism
The belief in the superiority of one's own country's practices and products.
Evaluative Criteria
The dimensions used by consumers to compare competing product alternatives.
Evoked Set
Those products already in memory plus those prominent in the retail environment that are actively considered during a consumer's choice process.
Experiential Perspective
An approach stressing the Gestalt or totality of the product or service experience, focusing on consumers' affective responses in the marketplace.
Extended Problem Solving
An elaborate decision-making process, often initiated by a motive that is fairly central to the self-concept and accompanied by perceived risk; the consumer tries to collect as much information as possible, and carefully weighs product alternative.
Feature Creep
The tendency of manufactures to add layers of complexity to products that make them harder to understand and use.
Framing
A concept in behavioral economics that the way a problem is posed to consumers (especially in terms of gains or losses) influences the decision they make.
Game-based marketing
A strategy that involves integrating brand communications in the context of an online group activity.

Display ads: integrated as part of the game's environment.

Static Ads: hard-coded into the game and ensure that all players view the ad.

Dynamic ads: Ads can vary based on specified criteria, such as with Google AdWords
Game Platform
An online interface that allows users to engage in games and other social activities with members of a community.
Genre
In the context of social gaming, the method of play such as simulation, action, and role playing.
Habitual Decision Making
Choices made with little or no conscious effort. Also known as a process of automaticity.
Hueristics
The mental rules of thumb that lead to a speedy decision.
Hyperopia
The medical term for people who have farsighted vision; describes people who are obsessed with preparing for the future that they can't enjoy the present.
Incidental Brand Exposure
An experimental technique that involves showing the product logos to respondents without their conscious awareness.
Inertia
The process whereby purchase decisions are made out of habit because the consumer lacks the motivation to consider alternatives.
Information Search
The process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision.
Intelligent Agents
Software programs that learn from past user behavior in order to recommend new purchases.
Knowledge Structure
Organized system of concepts relating to brands, stores, and other concepts.
Limited Problem Solving
A problem-solving process in which consumers are not motivated to search for information or rigorously evaluate each alternative; instead they use simple decision rules to arrive at a purchase decision.
Long Tail
States that we need no longer rely solely on big hits (such as block-buster movies or best-selling books) to find profits. Companies can also make money if they sell small amounts of items that only few people want - if they sell enough different items.
Low-Literate Consumer
People who red at a very low level; tend to avoid situations where they will have to reveal their inability to master basic consumption such as ordering from a menu.
Market Beliefs
A consumer's specific beliefs or decision rules pertaining to marketplace activities.
Maximizing
A decision strategy that seeks to deliver the best possible result.
Mental Accounting
Principle that states the decisions are influenced by the way a problem is posed.
Milieu
In the context of social gaming, the visual nature of the game such as science fiction, fantasy, horror, and retro.
MMORPG's (Massive Multiplayer Online Role Playing Games)
An online, interactive experience in which people around the world participate in the form of avatars.

Ex. World of Warcraft
Mode
In the context of social gaming, the way players experience the game world.
Neuromarketing
A new technique that uses a brain scanning device called functional magnetic resonance imaging (fMRI), that tracks blood flow as people perform mental tasks. Scientists know that specific regions of the brain light up in these scans to show increased blood flow when a person recognizes a face, hears a song, makes a decision, or senses deception. Now they are trying to harness this technology to measure consumers' reactions to movie trailers, choices about automobiles, the appeal of a pretty face, and loyalty to specific brands.
Non-Compensatory Decision Rules
Decision shortcuts a consumer makes when a product with a low standing on one attribute cannot make up for this position by being better on another attribute.
Perceived Risk
Belief that a product has potentially negative consequences.
Problem Recognition
The process that occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired or ideal state; this recognition initiates the decision-making process.

No problem
Opportunity recognition - like buying a flashy new car
Need Recognition - needs gasoline
Product Signal
Communicates an underlying quality of a product through the use of aspects that are only visible in the ad.
Prospect Theory
A descriptive model of how people make choices.
Purchase Momentum
Initial impulse to buy in order to satisfy your needs increase the likelihood that we will buy even more.
Rational Perspective
A view of the consumer as a careful, analytical decision maker who tries to maximize utility in purchase decisions.

This concept relates to the economics of information approach that assumes we collect just as much data as we need to make an informed decision.
Reputation Economy
A reward system based on recognition of one's expertise by others who read online product reviews.
Satisficing
A decision strategy that aims to yield an adequate solution rather than the best solution in order to reduce the costs of the decision-making process.
Search Engines
Software (such as Google) that helps consumers access information based upon their specific requests.
Sisyphus Effect
Decision makers who are so thorough they don't even rely on their past experiences to guide their current choice. Instead they start almost from scratch to research options for each unique decision situation.
Social Game
A multi-player, competitive, goal-oriented activity with defined rules of engagement and online connectivity among a community of players.

Ex. FarmVille or Xbox Live
Variety Amnesia
A condition where people consume products to the point where they no longer enjoy them.
Variety Seeking
The desire to choose new alternatives over more familiar ones.
Zipf's Law
A pattern that describes the tendency for the most robust effect to be far more powerful than others in its class; applies to consumer behavior in terms of buyers' overwhelming preferences for the market leader in a product category.
Abandoned Products
Grocery items that shoppers buy but never use.
Activity Stores
A retailing concept that lets consumers participate in the production of the products or services being sold in the store.
Atmospherics
The use of space and physical features in store design to evoke certain effects in buyers.
Being Space
A retail environment that resembles a residential living room where customers are encouraged to congregate.
Co-Consumers
Other patrons in a consumer setting.
Consumer Satisfaction/Disatisfaction (CS/D)
The overall attitude a person has about a product after it has been purchased.
Divestment Rituals
The steps people take to gradually distance themselves from things they treasure so that they can sell them or give them away.

Iconic transfer rituals: taking pictures and videos of objects before we sell them.

Transition-Place Ritual: Putting items in an out-of-the-way locations such as the garage, before we dispose of them.

Ritual Cleansing: washing, ironing, or meticulously wrapping the item.
Expectancy Dis-confirmation Model
States that we form beliefs about product performance based on prior experience with the product and/or communications about the product that imply a certain level of quality; when something performs the way we thought it would, we may not think much about it. If it fails to live up to expectations, this may create negative feelings. On the other hand, we are satisfied if performance exceeds our initial expectations.
Freegans
A takeoff on vegans, who shun all animal products; anti-consumerists who live off discards as a political statement against corporations and materialism.
Gemba
Japanese term for the one true source of information.
Impulse Buying
A process that occurs when the consumer experiences a sudden urge to purchase an item that he or she cannot resist.
Incidental Similarity
Points of commonality between a buyer and a seller such as a shared birthday.
Lateral Cycling
A process in which already purchased objects are sold to others or exchanged for other items.
Mental Budgets
Consumers' pre-set expectations of how much they intend to spend on a shopping trip.
Minipreneurs
One-person businesses.
Mobile Shopping Apps
Smartphone applications that retailers provide to guide shoppers in stores and malls.
Open Rates
The percentage of people who open an email message from a marketer.
Point-of-Purchase (POP) Stimuli
The promotional materials that deployed in stores or other outlets to influence consumers' decisions at the time products are purchased.
Pop-up Stores
Temporary locations that allow a company to test new brands without a huge financial commitment.
Pretailer
An e-commerce site that provides exclusive styles by prodding manufactures to produce runway pieces they wouldn't otherwise make to sell in stores.
Queing Theory
The mathematical study of waiting lines.
Retail Theming
Strategy where stores create imaginative environments that transport shoppers to fantasy worlds or provide other kinds of stimulation.

Examples:
-Landscape Themes - nature, animals, or physical body
-Marketscape themes - Venetian hotel which recreates a real Italian city
-Cyberspace themes - information and communications technology like eBay
-Mindscape theme - draw on abstract ideas fantasy, or spiritual overtones, like Kiva Day spas with native american theme menu options
Sharing Sites
E-commerce sites that allow users to share, exchange and rent goods in a local setting.
Shopping Orientation
A consumer's general attitudes and motivations regarding the act of shopping.
Store Image
A store's "personality," composed of such attributes as location, merchandise suitability, and the knowledge and congeniality of the sales staff.
Time Poverty
A feeling of having less time available than is required to meet the demands of everyday living.
Timestyle
An individual's priorities regarding how or she spend time as influenced by personal and cultural factors.
Total Quality Management
Management and engineering procedures aimed at reducing errors and increasing quality; based on Japanese practices.
Underground Economy
Secondary markets (such as flea markets) where transactions are not officially recorded.
Unplanned Buying
When a shopper buys merchandise she did not intend to purchase, often because she recognizes a new need while in the store.
Accommodative Purchase Decision
The process of using bargaining, coercion, compromise, and the wielding of power to achieve agreement among group members who have different preferences or priorities.
Autonomic Decision
When one family member chooses a product for the whole family.
Boomerang Kids
Grown children who return to their parents' home to live.
Business-To-Business E-commerce (B2B)
Internet interactions between two or more businesses or organizations.
Business-To-Business Marketers (B2B)
Specialists in meeting the needs of organizations such as corporations, government agencies, hospitals, and retailers.
Buy-class Theory of Purchasing
A framework that characterizes organizational buying decisions in terms of how much cognitive effort is involved in making a decision.
Buyer
The person who actually makes the purchase.
Buying Center
The part of an organization charged with making purchasing decisions.
Consensual Purchase Decision
A decision in which the group agrees on the desired purchases and differs only in terms of how it will be achieved.
Consumer Socialization
The process by which people acquire skills that enable them to function in the marketplace.
Crowdsourcing
Similar to a firm that outsources production to a sub-contractor; companies call upon outsiders from around the world to solve problems their own scientists can't handle.
Customer Networks
Groups in companies and families that customer networks invest in products and services to help them reach collective identity goals.
DINKS (Double income, no kids)
Double income, no kids, a consumer segment with a lot of disposable income.
Extended Family
Traditional family structure in which several generations live together.
Family Financial Officer (FFO)
The individual in the family who is in charge of making financial claims.
Family Identity
The definition of a household by family members that it presents to members and to those outside the family unit.
Family Life Cycle (FLC)
A classification scheme that segments consumers in terms of changes in income and family composition and the changes in demands placed on this income.
Fertility Rate
A rate determined by the number of births per year per 1,000 women of child-bearing age.
Freenium
A free version of a product that's supported by a paid premium version. The idea is to encourage the maximum number of people to use the product and eventually convert a small fraction of them to paying customers.
Gatekeeper
The person who conducts the information search and controls the flow of information available to the group.
Gender Convergence
Blurring of sex roles in modern society; men and women increasingly express similar attitudes about balancing home life and work.
Helicopter Moms
Over-protective mothers who "hover" around their kids and insert themselves into virtually all aspects of their lives.
Household
According to the US Census Bureau, an occupied housing unit.
Influencer
The person who tries to sway the outcome of the decision.
Initiator
The person who brings up the idea or identifies a need.
Juggling Lifestyle
Working mothers' attempts to compromise between conflicting cultural ideals of motherhood and professionalism.
KIn-Network System
The rituals intended to maintain ties among family members, both immediate and extended.
Modified Rebuy
In the context of the buy class framework, a task that requires a modest amount of information search and evaluation, often focused on identifying the appropriate vendor.
Multiple Intelligence Theory
A perspective that argues for other types of intelligence, such as athletic prowess or musical ability, beyond the traditional math and verbal skills psychologists use to measure IQ.
Network Effect
Each person who uses a product or service benefits as more people participate.
New Task
In the context of the buy class framework, a task that requires a great degree of effort and information search.
Nuclear Family
A contemporary living arrangement composed of a married couple and their children.
Organizational Buyers
People who purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale.
Parental Yielding
The process that occurs when a parental decision maker is influenced by a child's product request.
Prediction Market
An approach based on the idea that groups of people with knowledge about an industry are jointly better predictors of the future than are individuals.
Sandwich Generation
A description of middle-aged people who must care for both children and parents simultaneously.
She-conomy
Developing countries where analysts predict women will be a dominant force in the local economy.
Stage of Cognitive Development
The ability to comprehend concepts of increasing complexity as a person matures.
Straight Rebuy
In the context of the buy class framework, the type of buying decision that is virtually automatic and requires little deliberation.
Syncretic Decisions
Purchase decision that is made jointly by both spouses.
Synoptic Ideal
A model of spousal decision making in which the husband and wife take a common view and act as joint decision makers, assigning each other well-defined roles and making mutually beneficial decisions to maximize the couple's joint utility.
User
The person who actually consumes a product or service.
Wiki
Online program that lets several people change a document on a Web page and then track those changes.
Acculturation
The process of learning the beliefs and behaviors endorsed by another culture.
Acculturation Agents
Friends, family, local businesses, and other reference groups that facilitate the learning of cultural norms.
Age Cohort
A group of consumers of approximately the same age who have undergone similar experiences.
Baby boomer
A large cohort of people born between 1946 and 1964 who are the source of many important cultural and economic changes.
Connexity
A lifestyle term coined by the advertising agency Satachi & Satachi to describe young consumers who place high value on being both foot loose and connected.
Consumer Identity Renaissance
The redefinition process people undergo when they retire.
Cosplay
A form of performance art in which participants wear elaborate costumes that represent a virtual world avatar or other fictional character.
De-Ethnicization
Process whereby a product formerly associated with specific ethnic group is detached from its roots and marketed to other sub-cultures.

Example:
Bagels are a Jewish cuisine that has adapted with other variations such as a jalapeno bagel.
Echo Boomers
People born between 1986-2002, also known as Gen Y and Millennials.
Ethnic Sub-Culture
A self-perpetuating group of consumers held together by common cultural ties.
Gen X
People born between 1965-1985.
Gen Y
People born between 1986-2002.
Gray Market
The economic potential created by the increasing numbers of affluent elderly consumers.
Halal
Food and other products whose usage is permissible according to the laws of Islam.
High-Context Culture
Group members tend to be close knit and are likely to infer meanings that go beyond the spoken word.
Hispanic
People who geographic and/or cultural origins are in Latin American countries.
Host Culture
A new cultural to which a person must aculturate.
Life Course Paradigm
This perspective views behavior at any stage in life or given point in time as the product of one's actions or responses to earlier life conditions and the way the individual has adapted to social and environmental circumstances.
Low-Context Culture
In contrast to high context cultures that have strong oral traditions and that are more sensitive to nuance, low-context cultures are more literal.
Mega Churches
Very large churches that serve between 2,000 - 20,000 congregants.
Micro-Culture
Groups that form around a strong shared identification with activity or art form.
Millenials
People born between 1986-2002; also known as Echo Boomers and Gen Y.
Perceived Age
How old a person feels as compared to his or her true chronological age.
Progressive Learning Model
The perspective that people gradually learn a new culture as they increasingly come in contact with it; consumers assimilate into a new culture, mixing practices from their old and new environments to create a hybrid culture.
Spiritual Therapeutic Model
Organizations that encourage behavioral changes such as weight loss that are loosely based on religious principles.
Sub-Culture
A group whose members share beliefs and common experiences that set them apart from other members of a culture.
Tweens
A marketing term used to describe children aged 8-14.
Warming
Process of transforming new objects and places into those that feel cozy, hospitable, and authentic.
Anti-Brand Communities
Groups of consumers who share a common disdain for a celebrity, store, or brand.
Aspirational Reference Groups
High profile athletes and celebrities used in marketing efforts to promote a product.
Avoidance Groups
Reference groups that exert a negative influence on individuals because they are motivated to distance themselves from group members.
Affluenza
Well-off consumers who are stressed or unhappy despite of or even because of their wealth.
Adver-Gaming
Online games merged with interactive advertisements that let companies target specific types of consumers.
Anti-Festival
An event that distorts the symbols associated with other holidays.
Art Product
A creation viewed primarily as an object of aesthetic contemplation without any functional value.
Brand Community
A set consumers who share a set of social relationships based on usage or interest in a product.
Brand Fests
A corporate sponsored event intended to promote strong brand loyalty among customers.
Behavioral Economics
The study of the behavioral determinants of economic decisions.
BRIC Nations
The bloc of nations with very rapid economic development: Brazil, Russia, India, and China.
Binary Opposition
A defining structural characteristic of many myths in which two opposing ends of some dimensions are represented (e.g. good versus evil, nature versus technology).
Brand Prominence
A set of consumers who share a set of social relationships based on usage of interest in a product.
Coercive Power
Influence over another person due to social or physical intimidation cohesiveness.
Cohesiveness
The degree to which members of a group are attracted to each other and how much each values their membership to this group.
Collective Value Creation
The process whereby brand community members work together to develop better ways to use and customize products.
Community
In a digital context, a group of people who engage in supportive and sociable relationships with others who share one or more common interests.
Comparative Influence
The process whereby a reference group influences decisions about specific brands or activities.
Conformity
A change in beliefs or actions as a reaction to real or imagined group pressure.
Consumer Tribe
Group of people who share a lifestyle and who can identify with each other because of a shared allegiance to an activity or a product.
Cyber-Bullying
When one or more people post malicious comments online about someone else in a coordinated effort to harass them.
Cyber-Place
An online social community.
Chavs
British term that refers to young lower-class men and women who mix flashy brands and accessories from big names such as Burberry with track suits.
Co-Branding Strategies
Linking products together to create a more desirable connotation in consumer minds.
Conspicuous Consumption
The purchase and prominent display of luxury goods to providence evidence of a consumer's ability to afford them.
Consumer Confidence
The state of mind of consumers relative to their optimism or pessimism about economic conditions; people tend to make more discretionary purchases when their confidence in the economy is high.
Consumption Constellation
A set of products and activities used by consumers to define, communicate, and perform social roles.
Cougars
Older women who date younger men.
Cultural Capital
A set of distinctive and socially rare tastes and practices that admits a person into the realm of the upper class.
Collecting
The systematic acquisition of a particular object or set of objects.
Compatibility
In the context of diffusion of innovations, the extent to which a new product fits with a consumer's pre-existing lifestyle.
Complexity
In the context of diffusion of innovation, the extent to which a new product is difficult to use or to integrate into a person's daily life.
Contamination
When a place or object takes on sacred qualities because of its association with another sacred person or event.
Continuous Innovation
A modification of an existing product.
Conventions
Norms that regulate how we conduct our everyday lives.
Co-optation
A cultural process by which the original meaning of a product or other symbol associated with a sub-culture are modified by members of mainstream culture.
Craft Product
A creation valued because of the beauty with which it performs some function; this type of product tends to follow a formula that permits rapid production, and it is easier to understand than an art product.
Crescive Norms
Unspoken rules that govern social behavior.
Cultural Formula
A sequence of media events in which certain roles and props tend to occur consistently.
Cultural Gatekeepers
Individuals who are responsible for determining the types of messages and symbolism to which members of mass culture are exposed.
Cultural Selection
The process by which some alternatives are selected over others by cultural gatekeepers.
Culture
The values, ethics, rituals, traditions, material objects, and services produced or valued by the members of a society.
Culture Production System (CPS)
The set of individuals and organizations responsible for creating and marketing a cultural product.
Custom
A norm that controls basic behaviors, such as division of labor in a household.
Decision Polarization
The process whereby individuals' choices tend to become more extreme (polarized), in either a conservative or risky direction, following group discussion of alternatives.
De-Individuation
The process whereby individual identities get submerged within a group, reducing inhibitions against socially inappropriate behavior.
Democracy
In a social media context, a term that refers to rule by the people; community leaders are appointed or elected based on their demonstrated ability to add value to the group.
Digital Virtual Consumption (DVC)
Purchases of virtual goods for use in online games and social communities.
Digital Divide
The gulf between wealthy and poor people in terms of online access.
Discretionary Income
The money available to a household over and above that required for necessities.
Diffusion of Innovations
The process whereby a new product, service, or idea spreads through a population.
Discontinuous Innovation
A new product or service that radically changes the way we live.
Dynamically Continuous Innovation
A significant change to an existing product.
Desacralization
The process that occurs when a sacred item or symbol is removed from its special place, or is duplicated in mass quantities, and becomes profane as a result.
Elaborated Codes
The ways of expressing and interpreting meanings that are more complex and depend on a more sophisticated worldview, which tend to be used by the middle and upper classes.
Early Adopters
People who are receptive to new products and adopt them relatively soon, though they are motivated more by social acceptance and being in style than by desire to try risky new things.
Expert Power
Influence over others due to specialized knowledge about a subject.
Flaming
A violation of digital etiquette to express when a post is written in all capital letters.
Flows
Exchanges of resources, information, or influence among members of an online social network.
Folksonomy
An online posting system where users categorize entries themselves rather than relying upon a pre-established set of labels.
Food Desert
A geographic area where residents are unable to obtain adequate food and other products to maintain a healthy experience.
Frugalistas
Fashion-conscious consumers who pride themselves on achieving style on a limited budget.
Fortress Brands
Brands that consumers closely link to rituals; this makes it unlikely they will be replaced.
Gadget Lovers
Enthusiastic early adopters of high-tech products.
Gift Giving Ritual
The events involved in the selection, presentation, acceptance, and interpretation of a gift.
Grooming RItuals
Sequences of behaviors that aid in the transition from the private self to the public self or back again.
Home Shopping Party
A selling format where a company representative makes a sales presentation to a group of people who gather at the home of a friend or acquaintance.
Homophily
The degree to which a pair of individuals is similar in terms of education, social status, and beliefs.
Habitus
Ways in which we classify experiences as a result of our socialization processes.
Homogamy
The tendency for individuals to marry others similar to themselves.
Hoarding
Unsystematic acquisition of objects (in contrast to collecting).
Influence Impressions
Brand-specific mentions on social media posts.
Influence Network
A two-way dialogue between participants in a social network and opinion leaders.
Information Cascades
An online communication process where one piece of information triggers a sequence of interactions.
Information Power
Influence over others due to the possession of inside knowledge.
Interactions
In a social media context, behavior-based ties between participants such as talking with each other, attending an event together, or working together.
Invidious Distinction
The use of status symbols to inspire envy in others through display of wealth or power.
Innovation
A product or style that is perceived as new by consumers.
Innovators
People who are always on the lookout for novel developments and will be the first to try a new offering.
Legitimate Power
Influence over others due to a position conferred by a society or organization.
Lurkers
Passive members of an online community who do not contribute to interactions.
Leisure Class
Wealthy people for whom working is taboo.
Lifestyle
A pattern of consumption that reflects a person's choices of how to spend his or her time and money.
Lifestyle Marketing Perspective
Strategy based on the recognition that people sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time, and ho they choose to spend their disposable income.
Laggards
Consumers who are exceptionally slow to adopt innovations.
Late Adopters
The majority of consumers who are moderately
Market Maven
Receptive to adopting innovations.
Mass Connectors
Highly influential members of social media networks.
Media Democratization
In a social media context, members of social communities, not traditional media publishers like magazines or newspaper companies, control the creation, delivery, and popularity of content.
Media Multiplexity
In social media context, when flows of communication go in many directions at any point in time and often on multiple platforms.
Meet-ups
Members of an online network arrange to meet in a physical location.
Membership Reference Group
Ordinary people whose consumption activities provide informational social influence.
Mere Exposure Phenomenon
The tendency to like persons or things if we see them more often.
MMOGS (Massive Multi-player Online Games)
Online role playing games that typically involve thousands of players.
Momentum Effect
An accelerating diffusion of a message in social media due to the contributions of influential members.
Mass Class
A term analysts use to describe the millions of global consumers who now enjoy a level of purchasing power that's sufficient to let them afford many high-quality products.
Monomyth
A myth with basic characteristics that are found in many cultures.
More
A custom with a strong moral overtone, often involving more taboo or forbidden behavior.
Myth
A story containing symbolic of elements that expresses the shared emotions and ideals of a culture.
Nouveau Riches
Affluent consumers whose relatively recent acquisition of income rather than ancestry or breeding accounts for their enhanced social mobility.

This group suffers from status anxiety. Their flamboyant consumption is an example of symbolic self-completetion because they try to display symbols they believe have class to make up for a lack of reassurance on how to behave.
Name-Letter Effect
All things equal we like others who share our names or even initials better than those who don't.
Negative Word-of-Mouth
The passing on of negative experiences involved with products or services by consumers to other potential customers in influence others' choices.
Network Units
Members of a social network.
Nodes
Members of a social network connected to others via one or more shared relationships.
Normative Influence
The process in which a reference group helps to set and enforce fundamental standards of conduct.
Norms
The informal rules that govern what is right or wrong.
Object Sociality
The extent to which an object (text, image, video) is shared among members of online social networks.
Opinion Leader
Person who is knowledgeable about products and who frequently is able to influence others' attitude or behaviors with regard to a product category.
Online Gated Communities
Digital social networks that selectively allow access to people who possess criteria such as wealth or physical attractiveness.
Objectification
When we attribute sacred qualities to mundane items.
Observability
In the context of diffusion of innovations, the extent to which a new product is something that is easy for consumers to see in use in order to motivate others to try it.
Passion-Centric
Members of a social network share an intense interest in some topic.
Power Users
Opinion leaders in online networks.
Presence
The affect that people experience when they interact with a computer-mediated environment.
Principle of Least Interest
The person who is least committed to staying in a relationship has the most power.
Propinquity
As physical distance between people decrease and opportunities for interaction increase; they are more likely to form relationships.
Plutonomy
An economy that a small number of rich people control.
Product Complementarity
The view that products in different functional categories have symbolic meanings that are related to one another.
Plinking
Act of embedding a product or service link in a video.
Pretailer
An e-commerce site that provides exclusive styles by prodding manufactures to produce runway pieces that wouldn't otherwise make to sell in stores.
Product Placement
The process of obtaining exposure for a product by arranging for it to be inserted into a movie, television show, or some other medium.
Profane Consumption
The process of consuming objects and events that are ordinary or of the everyday world.
Reference Group
A figure a consumer uses to determine if a selling price is too high or low.
Referent Power
Influence over others because they are motivated to imitate or affiliate with a person or group.
Reward Power
A person or group with means to provide positive reinforcement.
Risky Shift Effect
The tendency for individuals to consider riskier alternatives after conferring with a group than if members made their own decisions with no discussion.
Restricted Codes
The ways of expressing and interpreting meanings that focus on the content of objects, which tend to be used by the working class.
Reality Engineering
The process whereby elements of pop culture are appropriated by marketers and become integrated into marketing strategies.
Reciprocity Norm
A culturally learned obligation to return the gesture of a gift with one of equal value.
Rites of Passage
Sacred times marked by a change in social status.
Ritual
A set of multiple, symbolic behaviors that occur in a fixed sequence and that tend to be repeated periodically.
Ritual Artificats
Items (consumer goods) used in the performance of rituals.
Social Graphs
Social networks; relationships among members of online communities.
Social Loafing
The tendency for people not to devote as much to a task when their contribution is part of a larger group.
Social Network
A group of people who connect with one another online due to some shared interest or affiliation.
Social Object Theory
Proposes that social networks will be more powerful communities if there is a way to activate relationships among people and objects within them.
Social Power
The capacity of one person to alter the actions or outcome of another.
Socio-metric Methods
The techniques for measuring group dynamics that involve tracing communication patterns in and among groups.
Surrogate Consumer
A professional who is retained to evaluate and/or make purchases on behalf of a consumer.
Social Capital
Organizational, affiliations and experiences that provide access to desirable social networks.
Social Class
The overall rank of people in a society; people who are grouped within the same social class are approximately equal in terms of their income, occupations, and lifestyles.
Social Mobility
The movement of individuals from one social class to another.

Horizontal Mobility: When a person moves from one position to another that's roughly equivalent in social status.
Social Stratification
The process in social system by which scarce and valuable resources are distributed unequally to status positions that become more or less permanently ranked in terms of the share of valuable resources each receives.
Spend Thrifts
Consumers who derive pleasure from large-scale purchasing.
Status Crystallization
The extent to which different indicators of a person's status (income, ethnicity, occupation) are consistent with one another.
Status Hierarchy
A ranking of social desirability in terms of consumers' access to resources such as money, education, luxury goods.
Status Symbols
Products whose primary function is to communicate one's social standing to others.
Sacralization
A process that occurs when ordinary objects, events, or people take on sacred meaning to a culture or to specific groups within a culture.
Sacred Consumption
The process of consuming objects and events that are set apart from normal life and treated with some degree of respect or awe.
Superstitions
Beliefs that run counter to rational thought or are inconsistent with known laws of nature.
Tie Strength
The nature and potency of the bond between members of a social network.
Ties
Connections between members of a social network.
Tribal Marketing Strategy
Linking a product's identity to an activity based "tribe" such as basketball players.
Two-step Flow Model of Influence
Proposes that a small group of influencers disseminate information since they can modify the opinions of a large number of other people.
Taste Culture
A group of consumers who share aesthetic and intellectual preferences.
Tight wads
Consumers who experience emotional pain when they make purchases.
Triability
In the context of diffusion of innovations, the extent to which a new product or service can be sampled prior to adoption.
Urban Myth
An unsubstantiated "fact" that many people accept as true.
Viral Marketing
The strategy of getting customers to sell a product on behalf of the company that creates it.
Virtual Goods
Difital items that people buy and sell online.
Virtual Worlds
Immersive 3D virtual environments such as Second Life.
Wisdom of Crowds
A perspective that argues under the right circumstances, groups are smarter than the smartest people in them; implies that large numbers of consumers can predict successful products.
Word-of-Mouth (WOM)
Product information transmitted by individual consumers on an informal basis.
Worldview
A perspective on social norms and behaviors that tends to differ among social classes.
Parody Display
Deliberately avoiding status symbols; to seek status by mocking it.

Examples, such as ripped blue jeans.
Stages in Decision Making Process
1. Problem recognition, or need for a product
2. Search for information about product choices
3. Evaluate alternatives
4. Make a product choice
5. Outcomes (when consumer enjoys their purchase)
Continuum of Buying Decision Behavior
On a continuum...

routine response behavior ---> limited problem solving ---> extensive problem solving

Ranging from low-cost, frequently purchased, familiar products to expensive, infrequently purchased, unfamiliar product.

Ranging from low consumer involvement to high consumer involvement
Types of Information Search
Pre-purchase search - recognize need and search the marketplace for specific information.

Ongoing Search - People who are shoppaholics or those that search for fun or to stay up-to-date on the latest trends.

Internal Search - Scanning our own memory banks for information for product alternatives.

External Search - Information acquired through advertisements, friends, or simply people watching.
Directed VS. Incidental Learning
Directed learning is based on previous occasions where we have already searched for the relevant information.

Incidental learning is based on seeing an advertisement, sale or packaging for a product that we may not need but over time will create product associations.
Sunk-Cost Fallacy
If we have paid for something, we're more reluctant to waste it.
Five Kinds of Risks
Monetary Risk
Functional Risk
Physical Risk
Social Risk
Psychological Risk
Monetary Risk
Risk capital consists of money and property. those with relatively little income and wealth are most vulnerable.

High ticket items that require substantial expenditures are most subject to this form of risk.
Functional Risk
Risk capital consists of alternative means of performing the function or meeting the need. Practical consumers are most sensitive.

Products or services whose purchase and use requires the buyer's exclusive commitment are most sensitive.
Physical Risk
Risk capital consists of physical vigor, health, and vitality. Those who are elderly, frail, or in ill health are most vulnerable.

Mechanical or electrical goods, drugs and medical treatment, and food and beverages are most sensitive.
Social Risk
Risk capital consists of self-esteem and self-confidence. Those who are insecure and uncertain are most sensitive.

Socially visible or symbolic goods, such as clothes, jewelry, cars, homes, or sports equipment are most subject to social risk.
Psychological Risk
Risk capital consists of affiliations and status. Those lacking self-respect or attractiveness to peers are most sensitive.

Expensive personal luxuries that may engender guilt, durables, and services whose use demands self-discipline or sacrifice are most sensitive.
Types of Decisions Rules
Lexicographic Rule -Person selects brand based on the most important attribute.

Elimination-by-Aspects Rule - The buyer evaluates a brand on the most important attribute, but imposes specific cut-offs for must have attributes.

Conjunctive Rules - Entails processing by brand based on established cut-offs. If the brand does not meet a specific cut-ff than the choice may be delayed, change in decision rule, or modifying possible cut-offs.
Consumption Situation
Includes a buyer, seller, a product or service as well as factors such as why we want to make a purchase, or how the physical environment makes us feel.
Reconstruction Method
Used by market researchers where the participants track all of their daily actions related to a product, or environment through daily reconstruction.
Situational Self-Image
The role that a person plays at any one time helps determine what that person will buy. Such as a guy on a date will buy flowers, or more expensive food.
Time-styles that influence consumption decisions
Social dimension: "time for me" or "time with/for others"

Temporal Orientation: relative significance attached to past, present, or future.

Planing Orientation: Varying time management styles on a continuum from analytic to spontaneous.

Polychronic Orientation: Distinguishes people who like to do one thing at a time versus multi-tasking.
Approach to Compartmentalizing Time
Linear Separable Time: events proceed in an orderly sequence - "Time and place for everything."

Procedural Time: People ignore the clock, and do things when the time is right.

Circular or Cyclic Time: natural cycles such as the regular occurrence of seasons.
Dimensions of Emotional States
Arousal, Pleasant, Sleepy, Unpleasant
Hedonic Shopping Motives
Social Experiences
Sharing of Common Interests
Interpersonal Attraction
Instant Status
The Thrill of the Hunt
Buying Center Roles
Initiator
Gatekeeper
Influencer
Buyer
User
Coping Strategies for those who use luxury items that might be seen as fake
Flight: Stop using the brand for fear of being mislabeled as a fake brand.

Reclamation: People who emphasize their relationship with the brand, and express concern of its image being tarnished.

Abranding: People disguise their luxury items in the belief that truly high-status people do not need to display their expensive logos.
Typology of Status
Patricians: Signal to each other using quiet signals.

Parvenu: Associate with other haves and want to dissociate themselves from have-nots using loud signals.

Poseur: aspire to be haves, and mimic Parvenus.

Proletarians: Do not engage in signaling.
Social Class Standing
Over-privileged: Those with income greater than the median for one's social class.

Under-Privileged: Those who's income is less than the median for their social class.

House Poor: A term to denote people who have a lavish home but cannot afford to furnish it.
Hierogamy
When women marry up due to social standings such as beauty.
Problems with Social Class Segmentation
Marketers fail to use social-class information effectively:

-They ignore status inconsistency
-They ignore intergenerational mobility
-They ignore subjective social class (i.e. the class the consumer identifies rather than the one to which he or she actually belongs)
-They ignore consumers' aspirations to change their class standing
-They ignore the social status of working wives
Consumption Style
Venn Diagram made up of "Person," "Product," and "Setting" where the three combine to show that persons lifestyle.
Types of Acculturation
Culture of Origin (Mexico)

Culture of Immigration (America)

Movement (motivation to move from one location to another)

Translation (Learning the new environment)

Adaptation (People form new consumption patterns)

Assimilation (people adopt products, habits, and values they identify with mainstream culture)

Maintenance (maintaining ties with the culture of origin)

Resistance (Culture of origin clashes with culture of immigration, and culture of origin must eventually be let go)

Segregation (Immigrants likely to shop in places separate from mainstream Anglo culture)
Age Cohorts
Baby Boomers: 1946-1964

Gen X: 1965-1985

Gen Y: 1986-2002

Gen Z: 2003 and after
Factors That Result In Conflict of Family Decision Making
Interpersonal Need - Person's level of involvement in the group.

Product Involvement & Utility - The degree to which a person will use the product to satisfy a need.

Responsibility - Who will procure, maintain, or pay for the product.

Power - The degree to which one family member exerts influence over the others.
Factors that determine how spouses make decisions on products to buy
Sex-role stereotypes - Men make certain purchases such as tools, and women purchase kitchen items.

Spousal Resources - A spouse who contributes more income has greater influence over buying decisions.

Experience - Couples who are experienced decision makers make individual decisions more frequently.

Socio-Economic Status - Middle class families make more joint decisions compared to either higher or lower class families.
Child Markets
Primary Markets - Kids mostly buy toys, apparel, movies, and games.

Influence Market (parent yielding) - when a parental decision maker surrenders to a child's request.

Future Market - Marketers look to influence children and their future purchases.
Three Development Stages in Children
Limited - Children younger than age 6 do not employ storage and retrieval strategies.

Cued - Children between the ages of 6 and 12 employ these strategies but only when prompted to do so.

Strategic - Children 12 and older spontaneously employ storage and retrieval strategies.
Cultural System
Consists of these functional areas:

Ecology: The way a system adapts to its habitat, such as the Japanese using products that make more efficient use of space.

Social Structure: the way people maintain an orderly social life.

Ideology: the mental characteristics of people and the way they relate to their environment and social groups, such as specially built water parks for India's modest culture.
Myths Serve 4 Interrelated Functions in Culture
Metaphysical - They help explain the origins of existence.

Cosmological - They emphasize that all components of the universe are part of a single picture.

Sociological - They maintain social order because they authorize a social code for members to follow.

Psychological - They provide models for personal conduct.
Three Forms of Reference Group Influence
Informational Influence: Seeks out information from experts, friends, or authoritative figures on a brand or product.

Utilitarian Influence: A buyer decides on a brand based on the influence of friends, co-workers, or family's expectations or preferences.

Value-Expressive Influence: The buyer feels that purchasing a specific brand will bring value to their live, and impress others. The buyer also looks up to the brand, or the people who advertised using the brand.
Principles of Conformity
-Cultural Pressures
-Fear of Deviance
-Commitment
-Group unanimity, size, and expertise
-Susceptibility to Interpersonal Influence
Types of Opinion Leaders
Generalized Opinion Leader- One whoose recommendations we seek for all types of purchases.

Monomorphic - Expert in one field.

Polymorphic - Expert in several fields, or concentrated in one field and all of its segments.

Innovative Communicators: Opinion Leaders who are also early purchasers.
Characteristics of Web 2.0
-Conversations
-Presence
-Collective Interests
-Democracy
-Standards of Behavior
-Level of Participation
-Crowd Power