Chapter 1 Flashcards
Introduction to Consumer Behaviour
What is consumer behavior?
The study of the processes involved when individuals or groups select, acquire, use/consume, and dispose of products, services ideas, or experiences to satisfy their needs and desires.
Buyer behaviour
Focusses on the moment of purchase
Consumer behaviour
Explore consumption as an ongoing process
The dark side of consumer behaviour
- compulsive buying
- shoplifting
- piracy
- compulsive or addictive consumption
Deviant consumer behaviour
Psychological abnormality or illegal behaviour: including Aunt acquisition behavior, and deviant usage behaviour.
Psychological deviant acquisition behaviour
Compulsive buying
Psychological abnormality, deviant usage behaviour
Addictive consumption: smoking, drugs, alcohol.
Compulsive consumption: compulsive gambling, binge eating.
Illegal behaviour and acquisition behaviour
Consumer, theft, and black markets
Illegal behaviour and deviant usage behaviour
Underage drinking, underage smoking, drug use.
What is compulsive buying also known as
- shopping addiction
- pathological buying
- the urge to shop
- compulsive buying-shopping disorder (CBSD)
What are traits of compulsive buying?
- chronic lack of restriction for excessive and repeated browsing and shopping or purchasing of items
- maladaptive preoccupations
- urges and craving for buying and shopping online or off-line
- significant distress caused by the buying preoccupations which interfere with social or occupational functioning
- often result in severe financial problems
Wicked Problems
Stopping a shopping addiction could lead to the person developing a (possibly worse) other addiction.
What does shoplifting do to the market?
- retailers lose about 0.8% of merchandise due to shoplifting
- consumers blow due to raised prices to cover shrinkage
Reasons for shoplifting
- real needs (can’t afford food)
- greed
- embarrassment (fungus creams, condoms)
- ability to rationalize/not think of themselves as thieves
What is financial infidelity?
When one of the people in a relationship/marriage is not honest about what is happening in their joint financial lives.
What is the main conflict of marketing ethics?
Conflict between succeeding in the marketplace and maximizing consumer welfare.
Sources of marketing information
- tracking purchases
- applications
- marketing research
- public domain information
What are some customer responses to marketing practises that may invade on their privacy?
- uncomfortable
- complaints
- lack of trust
- data having errors
What is deceptive advertising?
Making incorrect claims or making claims that are not substantiated.
- using the word in relation to the price of a product if a significant price reduction has not occurred.
- etc.
Social marketing
Using marketing techniques to encourage positive behaviours and discourage bad ones.
- SGI: Be a good wingman
Transformative consumer research (TCR)
Consumer researchers, attempting to study and rectify, pressing problems in the marketplace and working with vulnerable populations.
Corporate social responsibility (CSR)
Firms voluntarily choose to protect or enhance their positive social and environmental impacts
Cause-related marketing
Firm donations to charity as purchased incentives
Green marketing
Firms offer products in ways that are less harmful to the environment and position their brand on sustainable attributes.
The elevated marketing concept
Marketing must be elevated to a higher level of consciousness that grows beyond solving small and immediate problems to addressing long-term large problems that goes beyond individual, customer satisfaction, and short term financial performance.
Interdisciplinary research
- focuses on micro consumer behaviour (individual focus) to macro consumer behaviour (social focus)
- this includes: neuroscience, psychology, human ecology, micro economics, social, psychology, sociology, macro, economics, literary criticism, demography, history, and cultural anthropology.
Models of consumers
- economic view
- passive view
- cognitive view
- emotional view
The economic view of consumers
- consumers are limited by their skills, habits, values, goals, and the extent of their knowledge
- consumers will generally settle for a satisfactory decision (good enough)
The passive view of consumers
- consumers are submissive to the self serving interest and promotional efforts of marketers
- a critique is that consumers play equal or even dominate in many buying situations, as they seek information about alternative products
The cognitive view of consumers
- consumers as thinking problem solvers
- consumers are receptive to or actively searching for products and services that meet their needs
- information processing leads to preferences and purchase intentions, information seeking when a satisfactory decision can be made
The emotional view of consumers
- deep feelings of emotions like joy, fear, love, hope, fantasy, and magic as associated with certain purchases/possessions
- possessions can preserve the sense of the past
Consumer activism
- individual resistance to unethical marketing (avoid purchasing & word-of mouth)
- boycott initiated by individuals or small groups (companies held cannibal gain publicity, hurt the company financially)
- advocacy groups (campaigns)
