Consumer Behavior Study Guide

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CHAPTER 9
PPM: Portable people meter- a small device that you will clip to your belt, wear all day, and plug into a cradle at night that will transmit the data that the device had collected. Communication Model and components (including formal v informal):

Formal Source- represents either a for-profit or a non-profit organization Informal Source- Was originally defined as a person whom the message receiver knows personally. Now also includes people who influence one’s consumption via online social networks. Credibility (and source credibility): Perceived honesty and objectivity of the source of the communication Reference groups (normative, comparative, membership, symbolic): a person or group that serves as a point of comparison for an individual in the formation of either general or specific values, attitudes, or behavior. Normative: A group that influences the general values or behavior of an individual Comparative: A group whose norms serve as a benchmark for highly specific or narrowly defined types of behavior Membership: A group to which a person either belongs or would qualify for membership Symbolic: A group with which an individual identifies by adopting its values, attitudes, or behavior despite the unlikelihood of future membership Opinion leaders: A person who informally gives product information and advice to others Word of mouth: Informal conversations between friends concerning products and services.

E-WOM: Word of mouth advertising that takes place online
Buzz Agents: Consumers who agree to promote products by brining them to family gatherings, suggesting to store owners that they stock the items, reading certain books in public, and finding other ways to create “buzz” about product. Viral Marketing: The practice of encouraging individuals to pass on an e-mail message to others, thus creating the potential for exponential growth in the message’s exposure and influence. Spokesperson credibility (key aspects of): They are the source of the message. They appear in person or in commercials or advertisement and have a major influence on message credibility. Sleeper effect: The tendency for persuasive communications to lose the impact of source credibility over time. The influence of a message from a high credibility source tends to decrease over time; the influence of a message from a low credibility source tends to increase over time. Differential decay: A theory that suggests the memory of a negative cue simply decays faster that the message itself, leaving behind the primary message content. Market Mavens: Individuals whose influence stems from a general knowledge and market expertise that lead to an early awareness of new products and services Mood and involvement level: Plays a significant role in how a message is decoded, perceived, recalled, and acted upon. Consumer’s mood is influenced by the content of the ad and by the context in which the advertising message appears; these in turn affect the consumer’s evaluation and recall of the message Barriers to Communication

Psychological Noise: A barrier to message reception (competing advertising messages or distracting thoughts) Selective Exposure: Perception technique in which consumers actively seek out messages that they find pleasant or are sympathetic to, and actively avoid painful or threatening ones Targeting through:

Mass Media: The traditional avenues advertisers have used and are generally classified as print and broadcast. Non-Traditional Media: a more dynamic communication technology, characterized by addressability, interactivity, and response measurability. Narrowcasting: A marketing method that allows marketers to develop and deliver more customized messages to increasingly smaller market segments on an ongoing basis. Narrowcast Message is an addressable communications that are significantly more response measurable than traditional broadcast ads. Advertising Resonance:...
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