Chapter 1: Intro to Consumer Behaviour Flashcards
Marketing
process of identifying & satisfying customers needs while making a profit
Building on a legacy of insight
people buy things for what they can do, but also for what they mean
consumer behaviour
study of the process involved when people select, purchase, use or dispose of products, services, idea & experience to satisfy desires
–> things unfold over time –> processes
To determine segments / 80/20 rule
80% of your profit comes from 20% of your sales
- -> 80% outputs, 20% rules
- -> helps managers narrow focus when improving company
Segment groups
- age
- ethnicity
- geographic
- lifestyle
- gender
- family structure & life stage
- social class & income
Consumption process
- pre-purchase issues
- purchase issues
- post purchase issues
Complusive consumption
Reptitive shopping, often execssive and done as an antidote to tension, depression, anxiety, or boredom
- -> behaviour is not engaged by choice
- -> gratification from behaviour is short lived
- -> feeling of regret is short lived
Consumer roles & goals
USER
- product or service perfroms as desired
- delivery of social & emotional benefits
- cherished memories
PAYER
- low cost
- ease of making payments
- maximize buying power
BUYER
- good service before & after they make their decisions
- convenience (not too time consuming, right time & place)
INFLUENCER
- abider of taste
- holistic thinker who organizes system of individual decisions
- leverages network of contacts
Consumerism
movement advocating greater protection of interests of consumer
Dark side of consumer behaviour
consumers desires, choices & actions often result in negative consequences to the individual of society
- addicitive consumption
- compulsive consumption
- illegal activities (i.e. anti-consumption, theft)
Relationship marketing
making an effort to interact with consumers on a regular basis to give them reasons to maintain a bond with the company over time
Data base marketing
Tracks specific consumers’ buying habits closely & crafts products & messages tailored to peoples needs and wants
Green marketing
Offer products in ways that are less harmful to the environment & position their brand on the basis of sustainable attributes
Social marketing
marketing techniques to encourage positive behaviours and discourage negative behaviours
e.g. increased literature and decreased drinking & driving
Synchronous interactions
ones that occur in real time
e.g. texting back and fourth
