Chapter 1 Flashcards
Consumer behaviour
study of the processes involved when individuals or groups select, purchase, use, or dispose of a products, services, ideas, or experiences to satisfy their needs and desires
why no longer called buyer behaviour
o Now know that consumer behaviour is ongoing process that does not even need to involve a purchase and extends beyond what merely happens at the moment an individual hands over money or credit card and in return gets a good or service
the exchange
o Is when two + organizations or people give and receive something of value
o Is only a part of the process
pre-purchase issues
how do customer decide they want or need a product
purchase issues
is engaging in consumption stressful or pleasant
marketer: how are situational factors
post purchase issues
does consumption provide pleasure or preform intention
form marketer: will they be satisfied
does consumer behaviour focus on today?
Also focuses on tomorrow as anyone can see what is happening today
80/20 rule
20% of users are 80% of sales
market segmentation
identifies groups of consumer who are similar to another in one or more ways and devises marketing strategies that appeal to one or more groups
2 ways to segment
Demographic
- age, family, social class, ethnicity..
Relationships
- giving customer reason to maintain bond with company over time
ex Sephora point program
give example of customer having strong relationship with brand
calling Tim Hortons Tims
how can you create relationships with customer?
database marketing
giving tailored ads based on what people want
types of marketing culture
Popular culture
- ex Ronald Mcdonald or Lockness Monster
User-generated Content
- Ex: Starbucks asks customer to design their winter cup
with consumer trends you must ____ to keep up
keep ahead
as underlying values that drive consumers toward a product are constantly changing
Important consumer trends
Sharing economy
Continued blurring of the boundary between producers and consumers as everyday people
Will see de-emphasis on owning things such as a car but rather on an as-need basis
People would rather rent an experience then to own it
Authenticity
Consumer are placing premium on knowing lineage of companies and like to engage with the brand and creators
Transparency in supply chain, ingredients and processes
Value-driven consumption
Consumers will buy in line with their values
Supporting environment and so on
Decreased emphasis on gender
More inclusive on race and so on
Social shopping
Lone decision makers will be harder to find as people want others feedback
Simplification and integration
Movement away from hyper choice and towards de-cluttering of one’s life and possessions
Higher priority on experiences rather than acquiring things
Anonymity
People want the right to be forgotten
Consumers want platforms that do no retain posts or allow users to create alternative identities
Companies may need to adapt to consumer wanting to deny access to unnecessary information
what it is called when parent surrenders to a Childs response
parental yeilding
prescribed dose of ethics guidelines
Disclosure of substantial risk with a product
Identifying assed features that will increase the cost
Avoid false or misleading advertising
Avoid selling or fundraising under the guise of market research
who monitors ad campaign for ethics
Canadian Marketing association
2 examples from Canadian marketing association
Clarity
- marketing communication must be simple and easy to understand
Accessibility
- Disclosure of substantial risk with a product
Identifying assed features that will increase the cost
Avoid false or misleading advertising
Avoid selling or fundraising under the guise of market research
does marketing create artificial needs?
- Need is a basic biological motive while a want represent one way society has taught us to satisfy them
- Ex: thirst is a biological need many individuals are taught to want coke to satisfy rather then water
is marketing necessary
- We are not materialistic enough but focus on the irrational value goods and services give us
- Reduces search time for a product
dimensions of the dark side of consumer behaviour
Addictive consumption
o Addiction is the psychological or psychological dependency on products
o Is gaming disorder that is an official disease
o Social media addiction being compared to a chemical dependency
Compulsive consumption
o The born to shop mentality
o Those who shop because they feel compelled to do so rather than because shopping is pleasurable or a functional task
o Shopaholics
o Compulsive consumption is different form impulse buying
o Consumers are not unlike an addicts
o Destructive consumer behaviour can be characterized in 3 ways
Behaviour is not engaged by choice
Gratification derived from the behaviour is short lived
Person experiences strong feelings of regret or guilt afterward
o Ex: Gambling
Illegal activities
o Theft is committed every 5 seconds
o Majority caught are middle-high income who do so for thrill
Anti-consumption
Consumed consumers
- people are used/exploited willingly or not for commercial gain
Primary vs Secondary research
primary
- is data collected by researcher specifically for the research question
- is expensive
- ex: survey, focus group, interview, observational, experimental
Secondary
- collected for other reasons
- cheap
