Chapter 1 Flashcards
Consumer behavior
Consumer behavior reflects the total of consumers decisions with respect to the acquisition consumption and disposition of goods, services, activities, experiences, people and ideas by (human) decision-making units (over time)
Offering
A product, service, activity, experience, or idea offered by a marketing organization to consumers
Consumer behavior reflects
The totality of decisions
About the consumption
Of an offering
By decision making units
Over time
Disposition of an offering
Disposition, how consumers get rid of an offering they have previously acquired, can have important implications for marketinger. COnsumers can give away their used possessions, sell them on ebay or on consignment to vintage stores etc.
Acquisition
The process by which a consumer comes to own an offering
Usage
The process by which a consumer uses an offering
Disposal
The process by which a consumer discards an offering
Acquisition methods
Buying (Buying is a common acquisition method used for many offerings)
Trading (Consumers might receive a good or service as part of a trade)
Renting or leasing (Instead of buying, consumers rent or lease cars, furniture, vacation homes and more)
Bartering
Consumers (and businesses) can exchange goods or services without having money change hands
Gifting
Each society has many gift-giving occastions as well as informal rules dictating how gifts are to be given and what is appropriate gift, and how to respond to a gift
Finding
Consumers sometimes find goods that others have lost (hats left on a bus) or thrown away
stealing
Because various offerings can be acquired through theft, marketers have developed products to deter this acquisition mehtod such as alarms
Ways to dispose of a tangible product
Find a new use for it
Get rid of it temporarily (renting or leasing)
get rid of it permanently
Sales of products can be increased when the consumer
1) uses larger amounts of the product
2) uses the product more frequently
3) uses the product for longer periods of time
–> bonus packages may motivate consumers to buy more of a product
The factors that affect acquisition, usage, and disposition decisions can be classified into four broad domains (what affects consumer behavior)
1) psychological core
2) the process of making decisions
3) the consumers culture
4) consumer behavior outcomes
Psychological core (what affects consumer behavior)
Covers motivation, ability, and opportunity; exposure, attention, perception and comprehension; memory and knowledge; attitudes about an offering
Reference group
A group of people consumers compare themselves with for information regarding behavior attitudes or values
The process of decision making (what affects consumer behavior)
1) problem recognition
2) information search
3) decision making
4) postpurchase evaluation
Marketing
The activity set of institutions and process for creating communicating delivering and exchanging offering swith value for individuals groups and society
Marketers apply consumer research when making a number of decisions about products and branding
What ideas do consumers have for new products
What attributes can be added to or changed in an existing offering
How should the offering be branded
Packaging and logo
Positioning
Another strategic choice is deciding how an offering should be positioned in consumers minds. The desire image should reflect what the product is and how it differs from the competition
Making promoting and marketing communication decisions
What are our communication objectives
What should our marketing communication look like
Where should advertising be placed
When should we advertise
Has our advertising been effective
Pricing decisions
Price of a product or service can have a critical influence on consumers acquisition, usage and disposition decisions
(what price should be charged; how sensitive are consumers to price and price changes; when should certain price tactics be used)
Making distribution decisions
Another important marketing decision involves how products are distributed and sold to consumers in retail stores
Where and when are target consumers likely to show; what do consumers want to see in stores; how should stores be designed
Ways to acquire an offering
Buying
Trading
Renting or leasing
Bartering
Gifting
Finding
Stealing
offering
a person buying tangible products, consumers use of services, activities, experiences and ideas
Three ways to dispose of an offering
find a new use for it
Get rid of it temporarily
get rid of it permanently
Consumer culture (what affects consumer behavior)
External processes. In large part, our consumption decisions and how we process information are affected by our culture. Culture refers to the typical or expected behaviors, norms, and ideas that characterize a group of people
Consumer behavior outcomes (and issues) ( what affects consumer behavior)
The psychological core, decision-making processes, and the consumers culture affect consumer behavior outcomes through the symbolic use of products and the diffusion of ideas, products or services through a market. They also influence and are influenced by issues of ethics and social responsibility
Who benefits from the study of consumer behavior
Market managers
Ethicists and advocacy groups
Public policy makers and regulators
Consumers and society
Marketing managers (who benefits from the study of consumer behavior
The study of consumer behavior provides critical information to marketing managers for developing marketing strategies and tactices. Marketers need consumer behavior insights to understand what consumers and clients value; only then can they develop, communicate and deliver appropriate goods and services
Ethicists and advocacy groups (who benefits from the study of consumer behavior)
Marketers actions sometimes raise important ethical questions. Concerned consumers sometimes form advocacy groups to create public awareness of inappropriate practices. They also influence other consumers as well as the targeted companies through strategies such as media statements and boycotts
Public policy makers and regulators (who benefits from the study of consumemr behavior)
Understanding consumer behavior is crucial for legislators, regulators and government agencies in developing policies and rules to protect consumers from unfair, unsafe, or inappropriate marketing practices. In turn, marketers decisions are affected by these public policy actions
Consumers and society (who benefits from the study of consumer behavior)
Understanding consumer behavior enables marketers and other organizations to provide tools for more informed decision-making
Understanding consumer behavior is also important in the academic world for two reasons
Academics disseminate knowledge about consumer behaivor
Academics generate knowledge about consumer behaivor. In turn, such academic research is useful to marketing managers, advocacy groups, policy makers, regulators and others who need to understand consumer behavior
Some other strategic choices based on consumer research are
Deciding how an offering should be positioned in consumers minds (the desired image should reflect what the product is and how it differs from the competition),
Making decisions about the components of the marketing mix (i.e. promotions and marketing communication, pricing, distribution)
