305 Flashcards
Heavy users
-most faithful customers
-a name company use to identify their customers who consume their products in large volumes
80/20 rule
-markets can be segmented by how often or how heavily consumers use a specific product
- 80% of revenue generated by 20% of customers
Market segmentation
- the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
- choose a company and select a new product or service being introduced by your company
demographics
- statistics that measure observable aspects of a population (ex: birth rate, age distribution, and income)
-U.S. Census Bureau is a major source of the demographic data on US families
-the changes and trends in demographic that demographic studies reveal are of the greatest interest to marketers because they can use the data to locate and predict the size of markets for many products
Age
- consumers of different age groups obviously have different needs and wants
- people in the same age group differ, but they also tend to share a set of values and common cultural experiences
gender
-many products either target men or women
family structure
-a person’s family and martial status is another important demographic variable because it has an effect on consumers’ spending priorities
social class and income
- people who belong to the same social class are approximately equal in terms of income and social standing in the community
- have similar tastes in music, clothes, leisure activities and art
race and ethnicity
as out society becomes more multicultural, new opportunities develop to deliver specialized products to racial and ethnic groups and to introduce other groups to these offerings
geography
many national markets tailor their offerings to appeal to consumers who live in different parts of the country
lifestyles
-what we value and the things we do in our spare time all differ
-these factor help to determine which products will push our buttons or even those that will make us feel better
Relationship marketing
-interact with customers on a regular basis and give them solid reasons to maintain a bond with the company over time
Database marketing
-tracks specific consumers’ buying habits closely and crafts products and messages tailored precisely to people’s wants and needs based on this info
big data
collection and analysis of extremely large datasets
popular culture
-culture found in large, heterogeneous society that shares certain habits despite differences in other personal characteristics
-music, movies, sports, books, celebrities, and other forms of entertainment that the mass market produces and consumes
consumer behavior
-a study of the process involved with individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
-moves beyond thinking about products
consumer behavior is a process
-exchange: a transaction in which 2 or more organization or people give and receive something of value
consumer: person who identifies a need or desire, makes a purchase, and then disposes of the product during the 3 stages of the consumption process
3 stages of consumption process
1) pre purchase issues
2) purchase issues
3) post purchase issues
pre-purchase issues
consumers’ perspective: how does a consumer decide that they need a product? what are the best sources of information to learn more about alternative choices?
marketer’s perspective: How are consumer attitudes toward products formed and changed? what cues do consumers use to infer which products are superior to others?
purchase issues
consumers’ perspective: is acquiring a product a stressful or pleasant experience? what does the purchase say about the consumer?
marketer’s perspective: how do situational factors affect the consumers purchase decision?
post-purchase issues
consumer’s perspective: does the product provide pleasure or perform its intended function? how is the product eventually disposed? are there environmental consequences?
Marketer’s perspective: what determines whether a consumer will be satisfied with a product and whether they will buy it again? Does this person tell others about their experiences and influence their purchase decisions?
role theory
-view that much of consumer behavior resembles actions in a play
-seek items to put on a good performance
-alter consumption decisions depending on the particular ‘play’ they are in at the time
consumers develop relationships with brands
self attachment: identity (the product helps us establish the user’s identity)
nostalgic attachment: past experience (The product serves as a link with a past self)
interdependence: embedded in routine (the product is a part of the user’s daily routine)
love: fans of a team/show ( the product elitist emotional bonds of warmth, passion, or other strong emotion)
qualitative data
-ethnography
-in depth interviews
-focus groups
-projective techniques
quantitative data
-surveys
-data mining: tracking specific consumers’ buying habits and crafting products and messages tailored precisely to peoples wants
-experiments
Qualitative and Quantitative
-Observation: How people act in real world settings
-Video-mining: Tracking real-time shopping data using technology that can analyze video images (typically a hidden camera)
-Online listening
-Opinion panels
-Cell phone tracking
-Test markets
Problem with Self Reports
-they are usually inaccurate or of unknown accuracy because people don’t always tell the truth in these self reports
the pyramid of consumer behavior
-Experiment psychology
-Clinical psychology
-Developmental psychology
-Human ecology
-Microeconomics
-Social psychology
-Sociology
-Macroeconomics
-Semiotics/literary criticism
-Demography
-History
-Cultural anthropology
-These all tackle research issues
-The field closer to the top focuses on individual consumer (micro issues), and the ones at the bottom are more interested in the collective activities that occur among larger groups of people
paradigm
set of beliefs that guide our understanding of the world (positivism and interpretivism)
two perspectives on consumer research
- positivism: the basic set of assumption underlying the dominant paradigm at this point in time (goal is prediction, view of causality is existence of real causes
interpretivism: the newer paradigm questions these assumptions (goal is understanding, view of casualty is multiple simultaneous shaping events) (if a researcher claimed that reality is socially constructed)
do markets promise miracles?
-idea that the things we buy will transform our lives (EX: Westin Well-Being Movement to hotel guests –> feel well, work well, move well, eat well, sleep well)
-Although people think that advertisers have magical tricks and technology to manipulate them, in reality, the industry is successful when it tries to sell good products and unsuccessful when it sells poor ones)
materialism
-the importance people attach to worldly possessions
-positive marketing fosters a social responsibility (giving back and helping the environment)
intergenerational influence
-materialism as learned value from parents (sometimes inadvertent)
-warm and supportive parents -> material rewards -> materialism in adulthood
consumerism
the protection or promotion of the interests of consumers
culture jamming
-a strategy to disrupt efforts by the corporate world to dominate out cultural landscape
- movement believes that “culture jamming” will chance the way information flows; the way institutions wild power; the way tv stations are fun; and the way food, fashion, sports, music, etc. set their agendas
market access (restrictive)
- their (peoples) ability to find and purchase goods and services is limited because of physical, mental, economic, or social barriers
- disabled people are the largest minority market in the US
- food desert: grocery stores, healthy food, and funds for food are hard to find
-literacy: can’t read or write
fixing restricted market access
-coping with or managing marketplace marginalization
-shifting norms - once deviant practices becoming commonplace or fashionable
- mobilizing for greater mainstream marketplace inclusion
sustainability and environmental stewardship
-minimize damage to the environment or even improve natural conditions
-responsible use and protection of the natural environment through conservation and sustainable practices
sustainability
-everything that we need for out survival and well being depends either directly or indirectly on our natural environment
-created and maintains the conditions under which humans and nature can exists in productive harmony
triple bottom line orientation
-business strategies that strive to maximize return in 3 ways
1) the financial bottom line: provide profits to stakeholders
2)the social bottom line: return benefits to the communities where the organization operates
3) the environment bottom line: minimize damage to the environment or even improve natural conditions
conscientious consumerism
consumer’s focus on personal health is merging with a growing interest in global health
green marketing
strategy that involves the development and promotion of environmentally friendly products and stressing this attribute when the manufacturer communicates with customers
green washing
occurs when companies make false or exaggerated claims about how environmentally friendly their products are
the consumer dark side
-consumer terrorism: product tampering
-addictive consumption: range of behaviors that take over our lives
consumed consumers: when consumers ourselves are being consumes (human trafficking)
illegal activities: shoplifting
compulsive consumption: addictive behavior but specifically related to shopping
LOHAS
-lifestyles of health and sustainability
-refers to people who worry about the environment, want their products to be produced in a sustainable way, and spend money to advance what they see as their personal development and potential
product disposal
-strong product attachment = painful disposal process
-rituals
1) iconic transfer: taking photos of objects before sell them
2) transition-place: putting items in an out of the way location before disposing them (moving to attic or storage space)
3) ritual cleansing: washing, ironing, and or meticulously wrapping the item (washing away the meaning of the items -> take personalization out of them to get them ready for the marketplace)
