Chapter 1 Flashcards
what is consumer behaviour
the study of the process involved when individuals or group select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and wants
Consumer behaviour consist of (4)
- sociology
- social psychology
- Anthropology
- economics
Prepurchase issue: Customer + Marketers perspective
CUSTOMER: How does a customer decide that he needs a product? what is the best source of information to learn more about alertnative?
MARKETERS: How are consumer attitude toward products formed and changed? what cues do consumers use to infer which products are superior to others?
Purchase issue: Customer + Marketers perspective
CUSTOMER: is acquiring a product stressful or pleasant experience? What does the purchase say about the consumer?
MARKETERS: How does situational factors such as time, pressure or store display, affect the consumers purchase decisions?
Postpurchase issue: Customer + Marketers perspective
CUSTOMER: Does product provide pleasure or perform its intended function?
MARKETERS: What determines whether a consumer will be satisfied with a product and whether he/she will buy it again?
Customer journey (5)
- Awareness - researching options
- consideration - getting educated on service/benefits
- convert - confirming the partnership
- Loyalty - continuing to use service and request support
- advocacy - recommending service to others
why do marketers care about understanding consumer behaviour ?
- Understanding consumer do and why they do it is a vital first step towards being able to predict and ultimately influence the behavior
Different actors involved with consumer behaviour? (4)
- Influencers: recommended, opinion ex: friends, family, social media influencers, reviews, children
- Decision maker
- Purchaser
- User
ripple effect - 4 levels
Larger ripplers are fewer in number but greater reach. Smaller ripples can be greater in number but more targeted
level 1: distribution through mainstream, media outlets (press, influencer etc)
level 2: distribution through “open” networks - blogs, sites, feeds, widget)
level 3: distribution through closed networks - Facebook, myspace, etc
level 4: distribution through individuals - email list
segmentation consumers
Market segmentation is a marketing strategy which select groups of consumers are identified so that certain products or product lines can be presented to them in a way that appeals to their interests
Individualization
The personalization of individualization
- Ex: coco-cola with the name on the bottles
- Ex: Nike where you can personalize shoes
Relationship marketing
Focuses on customer loyalty and long-term customer engagement
- ex: amazon recommendations
Examples of culture impacting consumer behaviour
1 black friday - marketer use this to sell their stuff (consumers will buy things they don’t need and spend money they don’t have)
Meaning of consumption
- People often buy products not for what they do, but for what they mean
o What they do = function, ingredients, quality (intangible)
o What they mean = symbolic value, differentiation, branding, added value
ex: Nespresso when you go to store everyone is in suits. When you make a Nespresso coffee you feel elite and like a business individual (elitism)
Brand lattering
Emotional benefit: emotional feeling that binds the brand and target typically through shares beliefs and values
Consumer reward: the product benefits reward. How does it make him feel or what does it enable her to do
product benefit: an implicit or explicit claim of superiority
features: a feature, quality, recall or function of a brand
Global consumer
Consumers purchase products across borders both on and offline
IoT (Internet of things)
describes physical object, that are embedded with sensor, processing ability, software and other technologies and that connect and exchange data with other devices and systems over the internet or other communication network
example: google home, controlling lights on phone
Market manipulation:
it is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market; the most blatant of cases involve creating false or misleading appearances with respect to the price of, or market for, a product, security or commodity
objective of marketing
create awareness that needs exist.. not to create needs
o Need: a basic biological motive
o Want: one way that society has taught us how our needs can be satisfied
ex: deodorant linked to self-esteem. they created need for deodorant
consumerism
is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in even greater amounts
Planned obsolesce
means manufacturers deliberately designing products to fail prematurely or become out-of-date, often to sell another product or an upgrade – a practice that is barred in some countries.
Ex: lifetime of a lightbulb
Perceived obsolescence
refers to a situation where a customer believes they need an updated version of a product even though theirs is working just fine
Ex: getting you to buy the latest car, smartphone or fashion
Social marketing
Techniques to encourage positive behaviours such as increasing literacy and discouraging dangerous activities such as drunk driving
What are the dark side of marketing (3)
consumption
wellbeing
health
Consumption problems
- addictive consumption: Psychological or physiological dependency on product or service
ex: gambling, smoking, drugs, food disorder, technology - Compulsive consumption: repetitive consumption, often excessive. - Buying to get a sense of happiness but then there is regret (circle).
ex: Women tend to have this compulsive behaviour (appearance related product) - ex: shopaholic
Compulsive vs impulsive consumption
- Compulsive: repeated behaviour (enduring behaviour)
- Impulsive: when you see something and without thinking buy it (temporary behaviour)
AMA’s Code of Ethics
- Disclose all substantial risk with product
- Identify optional features that add to price
- Avoid false and misleading advertising
- Reject high-pressure and misleading sales tactics
- Prohibit selling under the guise of market research
positivism (modernism) - objective
o Human reason is supreme and there is a single, objective truth that can be discovered by science
o The world is rational, ordered place with a clearly defined past, present and future
example: dog owner with higher need for self-esteem bolstering are more likely to purchase the artificial testicles for their neutered dog
Interpretivism (postmodernism) - subjective
o We construct our own meaning based on our cultural experiences, so there are no single right or wrong answers
ways to conduct consumer research
- observational
- surveys
- focus group
- interviews
- experimental
