class 8 Flashcards
why do marketers care about consumers motivations and behaviours
Can influence marketers strategy and the 4 ps that are used
Understanding wnat consumers do, and why they do it, is a vital first step towards being able to predict and (ultimately) influence these behavuiurs
Affect the actions marketers take to align more closely with our customers wants and needs
how do marketers learn about consumer behaviour
1) Questioning techniques: asking people questions about they are looking for
Focus groups are an example, shows how company learn about their customers
2)Observation: direct observations
what are focus groups
Very popular in classical marketing research
In depth, unstructured discussion
8-10 carefully chosen people, 1-2 moderators
Common uses: understand how people are acting toward a new product and how they react to the big picture of a product
what is direct observation
Just observing what people are doing when they interact with your products. could have a hidden observer or lab based observed product usage
what is click data
Can see where people are clicking on your website
what is biometric data
looking at indovudal data like emotion, arousal
what is the consumer decision process
Need recognition→ recognize that a need is unmet
Info search→ looking online, asking friends, how can you meet that need
Evaluation→ the end result of the info search, set of brands
Purchase decision→ buying the product
Post purchase behavior → after people buy
this is a cycle
what is need recognition
The consumer decision process begins when consumers recognize they have an unsatisfied need and the want to acquire this thing they need
Need recognition is greater the greater the feeling of need actually is
there are functional needs and psychological needs and need to find the balance
what is information search
to search for information about the various options that exist to satisfy that need
intetnal–> the buyer examines his or her own memory about a service
external–> asking outside sources to help make a buying decision
could have certain factors that affect it like financial social
alternative evaluation
Usually happens while consumers are in the process of searching information
For ex: someone who is vegan lookihg for yogurt will rule out any non vegan yogurt
Consumers go through this step when buying convenient products
purchase decision
After evaluating the akternatves, customers are ready to buy
Retailers use tactics to increase the chances that customers will convert their positive evaluations into purchases
post purchase
Sees if there are loyal customers who can spread positive word of mouth
There are three possible post[urchase outcomes
1). Customer satisfaction
2) Poistpurchase cognitive dissonance (buyers remorse)
3) Customer loyalty (or disloyalty)
Satisfaction is the main driver of repeat business, and positive word of mouth
Post purchase dissonance→ buyers remorse (ex: buying something really expensive and worrying if they made a mistake and looking about at consumer reviews to ensure they made a good decision)
Word of mouth is very important can rapidly get out of control
what does the classic purchasing funnel lack
Emphasis on sales/ closure, ot customer experience and CLV
Fails to capture all touch points
No feedback loop/ iteration
Views marketing as a monologue rather than a dialogue
The traditional funnel focuses heavily on moving customers through the stages of awareness, consideration, and purchase, often neglecting the importance of post-purchase customer experience and long-term relationships.
The classic funnel model often lacks a feedback loop that allows for continuous learning and improvement. In reality, customer behavior is dynamic, and market conditions change over time. Brands need to continuously gather feedback from customers, analyze data, and adapt their strategies accordingly to stay relevant and competitive
The traditional funnel model views marketing as a one-way communication process, where brands broadcast messages to potential customers. However, modern marketing is more about engaging in conversations and building relationships with customers. It’s about listening to customer feedback, addressing their needs, and fostering two-way communication.
what is motivation
Motivation is the p[suychological process that initiates, guides and maintains goal oriented behaviours
what is the hierarchy of needs
5 categories of need people need to meet→ the basic ones are the first that need to be fulfilled for survival
then after the important needs are satisfied the ones at the top are less important but can be satisfied
physiolohial needs (food water…) then safety needs, social needs, personal needs and then self actualization needs
maslows five needs (posie says love every second)
Physiological (food, water) → marketers remind us to drink milk, stay at a Marriott hotel…
Safety (secure employment, health) → airbags in cars, burglar alarms in homes, organic vegetables
Love (friendship, family) → haircuts, makeup, deodorant, greeting cards
Esteem (confidence) → yoga, meditation, books
Self-actualization (feeling satisfied with your life) → don’t care what others think
what influences the customer purchase decision process
marketing mix (four ps), physiological influences (attitudes, perception) and socio cultural influences (family culture, influencing peoples feelings )
The consumer decision process can be influences by several factors:
Psychological factors: influences internal to the customer, such as motives, attitudes, perceptions and lifestyles
Social factors: family, reference groups and culture
Situational factors: the specific purchase situation, a particular shopping situation and temporal states
word of mouth and viral marketing
Word of mouth recs from trusted sources are MUCH more influential than ads
“ viral” marketing aims to generate a lot of word of mouth online, so that people spread key messages about a given product
what is conformity
doing the same as others “money see, monkey do”. behavior in accordance with socially accepted conventions or standards.
what is informational influence
using other people as a source of info. Ex: you look at the window to see if other people have umbrellas to see if you need one
what is a cognitive shortcut
often easier to do what others do than to fully investigate all options
what are the sources of socio cultural influence
Culture : norms and practices that are characteristic of that culture. Ex: mcdonalds has to tailor their products when they are in india
Family: see what your siblings buy and then you may want to buy it
Reference group: any group of people you look to or reference when you are making a decision to buy something. Ex: classmates, online friends
Opinion leaders: influencer, have strong expertise in a particular area. Ex: doctor on tik tok, celebrity chef
Formal leader: people who have formal positions in gvt. Ex: justin trudeau wearing a mask during covid, you may be motivated to do the same thing or oppositely react
Aspirational group: influencers, mom bloggers, present an image of their wonderful family life and you aspire to that
Involvement:
is the consumers degree of interest or concern about the product or servie
low vs high involvement
Low involvement consumers pay less attention to the ads and key elements and focus on heuristic elements, more superficial
High involvement will review all the info
