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MGMT 442: Consumer Behaviour > Chapter 1: Intro To Consumer Behaviour > Flashcards

Chapter 1: Intro To Consumer Behaviour Flashcards

1
Q

Consumption Communities

A

Web groups in which members share views and product recommendations online

Anything from baseball fantasy team lineups to iPhone apps

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2
Q

Market segmentation

A

Organizations target it’s products, service, or idea only to specific groups of consumers rather than to everyone

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3
Q

Lifestyle statement

A

It says a lot about a persons interests, as well as something that they would like to be

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4
Q

Brand loyalty

A

Bond between product and consumer that is very different for competitors to break

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5
Q

Consumer behaviour

A

The process involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences, to satisfy needs and desires

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6
Q

The items we consume

A

Range from peas to massages, anything really such, raggae music, or a celebrity like Katy aperry

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7
Q

In its early stages of development, the field of consumer behaviour was often referred to as _______

Reflecting an emphasis on the interaction between consumers and producers at a time of purchase

A

Buying behaviour

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8
Q

Why did buyer behaviour change to consumer behaviour?

A

Marketers now recognize that consumer behaviour is an ongoing process, not merely what happens at the moment someone hands over money and receives the good

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9
Q

Exchange

A

The process whereby two or more organizations or people give and receive something of value

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10
Q

Issues that arise during stages in consumption process (figure 1.1)

A

Take a look at the chart

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11
Q

Why should we learn about consumer behaviour?

A

Understanding consumer behaviour is good business

Firms only exist to satisfy consumer needs
These needs can only be met when marketers understand what people want

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12
Q

______ about consumers help marketers define the market and identify threats to a brand and opportunities for it

A

Data

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13
Q

Marketing segmentation (definition)

A

Identifies groups of consumers who are similar to one another in one or more ways and then devises marketing strategies that appeal to one or more groups

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14
Q

80/20 rule

A

20 percent of sales account for 80 percent of sales

This shows the importance of brand loyalty - by identifying the most faithful customers using market segmentation they can maximize profits

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15
Q

Demographics

A

Statistics that measure observable aspects of population, such as birth rate, age distribution, and income

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16
Q

Psychographics

A

The use of psychological, sociological, and anthropological factors to construct market segments

Or differences in consumers personalities, attitudes, values, and lifestyles

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17
Q

Few of the Most important demographic dimensions

A 
Age
Gender
Family structure and life stage 
Social class and income
Ethnicity 
Geography 
Lifestyles
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18
Q

Relationship marketing

A

The process of creating, maintaining, and enhancing strong, value-laden relationships with customers

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19
Q

Database marketing

A

Marketing that focussed on tracking specific consumers behaviours habits very closely and crafts products and messages tailored precisely to people’s wants and needs based on this information

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20
Q

Types of relationships a person may have with a product:

A

1) SELF-CONCEPT ATTACHMENT
2) NOSTALGIC ATTACHMENT
3) INTERDEPENDENCE
4) LOVE

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21
Q

1) SELF-CONCEPT ATTACHMENT

A

The product helps to establish the user’s identity

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22
Q

2) NOSTALGIC ATTACHMENT

A

The product serves as a link with a past self

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23
Q

3) INTERDEPENDENCE

A

The product is a part of the user’s daily routine

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24
Q

4) LOVE

A

The product elicits emotional bonds of warmth, passion or other strong, positive feelings

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25
Q

Types of marketing stimuli

A

In the forms of:
Advertisements
Stores
Product competing for our attention and out dollars

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26
Q

Popular culture

A

Music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market

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27
Q

Consumer-generated content

A

A hallmark of web 2.0, arising when everyday people voice their opinion about products, brands, and companies on blogs, podcasts, and social networking sites and film their own commercials that they post on websites

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28
Q

One of the fundamental premises of the modern field of consumer behaviour is that

A

People often buy products not for what they do but for what they mean

The roles products play in our lives go well beyond the tasks they perform

Example: buying Nike is more than choosing athletic wear, you may be making a lifestyle statement about the type of person you are or want to be

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29
Q

global consumer culture

A

in which people around the world are united by their common devotion to brand-name consumer goods, movie stars, and celebrities.

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30
Q

Virtual Consumption

A

Electronic marketing increases convenience by breaking down many of the barriers caused by time and location.

Facilitated B2C and C2C commerce

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31
Q

horizontal revolution

A

information flow across people

characterized in part by the prevalence of social media

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32
Q

Social media

A

the online means of communication, conveyance, collaboration, and cultivation among interconnected and interdependent networks of people, communities, and organizations enhanced by technological capabilities and mobility.

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33
Q

synchronous interactions

A

ones that occur in real time, such as when you text back and forth with a friend

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34
Q

asynchronous interactions

A

ones that don’t require all participants to respond immediately, such as when you text a friend and get an answer the next day

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35
Q

culture of participation

A

The notion that social media platforms enable the user to freely interact with other people, companies, and organizations, allowing the user to share content and build on the content of others

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36
Q

“the Internet of things” (IoT)

A

the growing number of smart, connected, and interactive products available to consumers today

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37
Q

M2M

A

machine-to-machine communication

38
Q

These are some of the important consumer trends that will impact marketing strategies in the near future:

A

1) SHARING ECONOMY
2) AUTHENTICITY AND PERSONALIZATION
3) BLURRING OF GENDER ROLES
4) DIVERSITY AND MULTICULTURALISM
5) SOCIAL SHOPPING
6) HEALTHY AND ETHICAL LIVING
7) SIMPLIFICATION
8) ANONYMITY—

39
Q

1) SHARING ECONOMY

A

a continued blurring of the boundary between producers and consumers, as “everyday people” take on the roles of hoteliers, taxi drivers, and even advertising agencies. We will see a de-emphasis on the value of owning products such as automobiles and power tools as opposed to leasing them on an as-needed basis. Today consumers want to avoid ownership and the financial costs and responsibilities that come with it. We would rather “rent” an experience than own a thing.

40
Q

2) AUTHENTICITY AND PERSONALIZATION

A

an aversion to corporate “hype,” as consumers place a premium on knowing the lineage of the companies they patronize. Consumers also will demand more individualized experiences rather than buy mass-market products and services. There will be an increase in artisanal products and continuing growth of the “maker movement,” augmented by wider availability of 3D printing technologies. Shoppers are willing to pay more for an item when they know exactly where it comes from, and they are assured that “real people” have thoughtfully selected the things from which they choose. This process of curation, which used to refer to an expert who carefully chooses pieces to include in a museum exhibit, now applies to a range of consumer products such as food, clothing, and travel.

41
Q

3) BLURRING OF GENDER ROLES

A

the continuing movement away from gender binarism as sexual identity becomes more fluid and more people refuse to identify themselves as male or female. In Canada, individuals who do not identify as male or female now have another option to check off on a passport

42
Q

4) DIVERSITY AND MULTICULTURALISM

A

racial and ethnic divisions will blur as people are exposed to other groups both in person (e.g., at the workplace) and online. Intermarriage rates continue to accelerate; a growing number of countries no longer adhere to strict categories when they ask citizens to identify racial identity.

43
Q

5) SOCIAL SHOPPING

A

the traditional lone decision maker will become harder to find, as ready access to product reviews and others’ immediate feedback turns many buying situations into committee decisions.

44
Q

6) Healthy and ethical living

A

a continued focus on wellness, physical fitness, and environmental sustainability. This priority is likely to divide along social class lines, as growing economic inequality makes it difficult for less affluent consumers to afford healthy and sustainable products.

45
Q

7) SIMPLIFICATION

A

a movement away from “hyperchoice” and toward “de-cluttering” of one’s life and possessions, plus a higher priority on “experiences” rather than acquiring “things.”

46
Q

8) ANONYMITY

A

data hacking, cyberbullying, and advertising tracking that fuel a desire for “the right to be forgotten.” Consumers will flock to platforms like Snapchat that don’t retain posts, or that allow users to create alternative identities

47
Q

Business ethics

A

essentially rules of conduct that guide actions in the marketplace—the standards against which most people in a marketplace judge what is right, wrong, good, or bad

48
Q

Universal values include

A

Honesty, trustworthiness, fairness, respect, jutstice, integrity, concern for others, accountability, and loyalty

49
Q

Prescribing Ethical Standards of Conduct

A

Professional organizations often devise a code of ethics for their members.

50
Q

One of the most common and stinging criticisms of marketing is that marketing techniques (especially advertising) are responsible for

A

convincing consumers that they “need” many material things and that they will be unhappy and somehow inferior people if they do not have these “necessities.”

51
Q

Need (definition)

A

basic biological motive

52
Q

Want (definition)

A

represents one way society has taught us to satisfy that need

53
Q

culture jamming

A

aims to disrupt efforts by the corporate world to dominate our cultural landscape

Examples: TV turnoff day and Buy Nothing Day

54
Q

corporate social responsibility (CSR)

A

Corporate activities that benefit the community in some way through a positive social, ethical, or environmental impact

55
Q

cause-related marketing

A

Type of marketing that involves collaboration between a for-profit business and a nonprofit organization for mutual benefit

Differs from corporate giving (or philanthropy) in that cause marketing is not solely based on donations

56
Q

green marketing

A

Marketing strategy involving an emphasis on protecting the natural environment

Example: Removing wasteful packaging

57
Q

Greenwashing

A

Companies making fake or exaggerated claims about how environmentally friendly their products are

58
Q

Social marketing

A

The promotion of causes and ideas (social products), such as energy conservation, charities, and population control

refers to using marketing techniques normally employed to sell beer or detergent to encourage positive behaviours such as increasing literacy or to discourage negative activities such as drunk driving

59
Q

transformative consumer research (TCR)

A

Promotes research projects that include the goal of helping people or bringing about social change

60
Q

The Dark Side of Consumer Behaviour

A

There is a “dark side” to some behaviours that can have negative impacts on consumers and society.

61
Q

Dark sides include:

Kale’s own ideas

A

1) People being killed on big sale days such as Black Friday
2) Excessive drinking or smoking from social pressures
3) Shoplifting and insurance fraud
4) exposure to unattainable media ideals of beauty and success

62
Q

Real dark sides of consumer behaviour

A

1) Addictive Consumption
2) Compulsive consumption
3) Illegal activities
4) Anticonsumption

63
Q

Consumer addiction

A

a physiological or psychological dependency on products or services

Includes addictions to alcohol, drugs, cigarettes

64
Q

Compulsive consumption

A

refers to repetitive shopping, often excessive, done as an antidote to tension, anxiety, depression, or boredom

Shopaholics

65
Q

Compulsive consumption is distinctly different from impulse buying

A

The impulse to buy a specific item is temporary, and it centres on a specific product at a particular moment. In contrast, compulsive buying is an enduring behaviour that centres on the process of buying, not the purchases themselves

66
Q

Much negative or destructive consumer behaviour can be characterized by the following three common elements:

A

The behaviour is not engaged in by choice.

The gratification derived from the behaviour is short-lived.

The person experiences strong feelings of regret or guilt afterward.

67
Q

In North America, a retail theft is committed every five seconds

A

Fuck me, this is crazy

68
Q

Shrinkage

A

industry term for inventory and cash losses from shoplifting and employee theft.

69
Q

Counterfeiting

A

Companies or individuals selling fake version of real products

70
Q

Anticonsumption

A

Actions taken by consumers that involve the deliberate defacement of mutilation of products

Examples: Product tampering, graffiti on buildings, boycotting a brand, destroy billboards and other ads

71
Q

Two ways for marketers to collect information

A

By collecting:

1) Primary data
2) Secondary data

72
Q

Primary research

A

Research conducted to specifically address the research question at hand

73
Q

Secondary research

A

Research conducted by another party that can be utilized or applied to the research question at hand

74
Q

Primary research methods

A

Surveys, focus groups, interviews, observational research, qualitive methods, and experiments

75
Q

Consumer insights

A

Drawing important information about the consumer in ways that probe deeper to understand the underlying motivations for a given behaviour, as opposed to simply just observing or describing what consumers are doing

76
Q

Survey Research

A

A survey is a method of data collection in which the respondents self-report answers to a set of questions posed by the researcher.

The most common forms of surveys include written surveys, online surveys, and phone surveys.

Allows for vast and expansive collection, but limited and not as rich answers

77
Q

Focus groups

A

Focus groups usually involve small group sessions with approximately 6 to 12 consumer participants.

The session is guided by a moderator who leads a group discussion involving a product, concept, or marketing message.

Elicit rich and detailed answers, but social influence can playa role, dampening the expression of consumers’ true individual attitudes

78
Q

Interviews

A

One on one interaction with an interviewer and respondent

Good if topic is embarrassing, sensitive, or polarizing

Time consuming, expensive,

79
Q

Observational research

A

Directly watching behaviours in a natural context (at a mall) or a controlled setting (lab that watches children play)

This is the purest measurement as it measures real behaviours

80
Q

Qualitative research

A

Tends to tap into the more subjective, experiential, and narrative aspects of the consumption experience.

Story telling - asked for an anecdote about their experience

Role playing: consumers are asked to be in a particular role and act out how they would respond to a particular marketing stimulus

Photos / pictures: Of their experience with the product

81
Q

projective techniques

A

These involve the presentation of an ambiguous, unstructured object, activity, or person that a respondent is asked to interpret or explain

82
Q

Experimental research

A

A final research technique involves conducting experiments, which are used when the researcher wants to make cause-and-effect claims

83
Q

random assignment

A

This means each person has an equal chance of ending up in any of the experimental conditions

84
Q

Summary Of The Chapter

A

Here we go boss

85
Q

Why consumer behavior is a process?

A

Consumer behaviour is the study of the processes involved when individuals or groups select, purchase, and use or dispose of products, services, ideas, or experiences to satisfy needs and desires. A consumer may purchase, use, and dispose of a product, but these functions may also be performed by different people.

86
Q

Marketers must understand the wants and needs of different consumer segments.

A

Market segmentation is an important aspect of consumer behaviour. Consumers can be segmented along many dimensions, including product usage, demographics (the objective aspects of a population, such as age and gender), and psychographics (psychological and lifestyle characteristics). The importance of relationship marketing means that marketers are much more attuned to the wants and needs of different consumer groups over the long term.

87
Q

Our choices as consumers relate in powerful ways to the rest of our lives.

A

Marketing activities exert an enormous impact on individuals. Consumer behaviour is relevant to our understanding of both public policy issues (e.g., ethical marketing practices) and the dynamics of popular culture.

The Internet has transformed the way consumers interact with companies and with each other. Online commerce allows us to locate obscure products from around the world, and consumption communities provide forums for people to share opinions and product recommendations

88
Q

Marketers must be aware of consumer trends.

A

As society changes, so too does consumption. More recently, we have seen movement toward more of a sharing economy, preferences for simplicity, anonymity, authenticity and personalization, growing recognition of the importance of diversity, and a focus on health and wellness, just to name a few.

89
Q

Ethical issues in marketing and consumer behaviour are important.

A

Society is placing ever-growing emphasis on the importance of ethics in business practice. Many organizations and associations create and follow rules of conduct that demonstrate the importance of values such as honesty, fairness, respect, and integrity.

Many firms have focused on increasing their actions through corporate social responsibility efforts as well as green and social marketing campaigns.

90
Q

There is a “dark side” to some behaviours that can have negative impacts on consumers and society.

A

Consumer behaviour can also have a “dark side,” which includes outcomes such as addictive consumption, compulsive consumption, and illegal activities.

91
Q

Many different research methodologies can be used to understand consumer behaviour.

A

Primary research is research that is conducted specifically to address the research question at hand. Secondary research refers to research that has been conducted by another party and can be applied to the research question at hand.

While the majority of consumer research has traditionally been conducted using surveys, a number of other research methodologies are being used by marketers that seek consumer insight

MGMT 442: Consumer Behaviour (10 decks)

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