Consumer Behavior Flashcards
Consumer Behavior
entails all consumer activities associated with purchase use and disposal.
Individual consumer
purchase goods to satisfy own needs or wants
Organizational Consumer
purchase goods and services for… Produce other goods, resale, help run organization
Purchase activities
consumers acquire goods, includes all activities leading up to the sale
Use actvities
describe where and when how consumption happens
disposal activities
the way consumers get rid of a product after use.
Emotional or Affective responses
reflect consumer emotions feeling moods
mental or cognitive responses
consumers thought processes opinions and beliefs, can be specific or broad
Behavioral responses
consumers over decisions and actions during the 3 activities
Why study consumer behavior?
improve business performance, influence public policy,educate the consumer
Marketing concept
idea firms should discover and satisfy customer needs in a profitable way
Custo er perceived value
customers overall assessment of the use vs cost of an object
customer delight
customer benefits exceed expectations
motivation research
applied psychoanalytical theory to behavior in-depth interviews used.
Behavioral science perspective
applies scientific method to explain and control predict consumer behavior
marketing science approach
using computer based simulations and math models
quantitative research methpds
empirical data collected
basic research
looks for general relationships b/w variables regardless of situation
Applied research
study is specific to the situation of marketer
Marketing research process
1) define the problem
2) determine the research design (exploratory, descriptive, causal)
3) design data collection methods
4) sampling
5) analyzes of results
6) recommendations
Focus group
group of 8-12 people moderator leads discussion of research question
Projective txhnique
meaningless questions that make subject say what they think
causal research
tries to identify cause and effect relationships
correlated
testable significant relationships exist b/w 2 variables
illusory correlation
believing their is correlation when there is not
causal
2 variables are correlated and one influences the other
Why segment market?
allows company to focus resources on the part they can control
2 main assumptions of market segmentation?
- consumer preferences vary
- consumers willing to pay extra because their needs are catered to.
target market
segment a firm markets to
positionning
communication with target market w/ marketing mix variables
Marketing mix variables?
product
price
place
promotion
Market aggregation
opposite of market segmentation, single product for all
Mass marketing
one marketing strategy for all consumers
differentiated segmentation
target several markets, strong in several markets i.e.. jeep
niche Segmentation
capture large share of smaller market
micromarketing
highly specialized products, custom shit
Consumer preference heterogenity
not all consumers have same preferences, segmentation increases
majority fallacy
focus on majority markets and not smaller ones, not always more profitable
sales cost trade-off
market segmentation increases, sales increase vice versa cost also up
cannabalism
products offered by same firm are similar and compete with themselves
Position
place product occupies in customers mind
pioneering brand
1st brand into a market, set the standard
Premium pricing
price brand @ high end of range
repositioning
attempts to change way customer perceives brand
perceptual mapping
measures positioning of product in consumer mind maps them on graph
Proactive strategy
be the first to make a product, high power
Reactive strategy
make your form after the original has been made
Reactive 5key factors
potential for growth protection for innovation market size competition channel positioning
diffusion of innovation
rate at which a new product spreads
Product life cycle
intro: create awareness, people trying it
growth: spread WOM, brand extensions
Maturity: reduced cost focus, competition increases
decline: develop new use or die
Brand resonance
refers to the consumers intense and actively loyalty to brand
brand equity
value a brand gains based on goodwill w/ brand name
Brand extensions
different products w/ same brand name
Young & Rubican Brand asset valuator
scale to measure brand uniqueness usefulness, and brand image and esteem
incremental theorists
consumers think world can change (prefer more brand extensions)
entity theorists
fixed world change is impossible
attribute loyalty
strong preference to specific feature
confirmation bias
people find it easier to interpret info that supports them rather than against them
sources of volume
where future purchases of product will come from
Acquisition strategies
focus on getting new customer
retention strategies
focus on keeping existing customers
STP
segmentation, targeting, positioning strategy
self concept
totality of consumers thoughts and feelings of themselves
role identities
positions consumers occupy in society
personal qualities
modes of interpersonal behavior
self evaluation
measures of adequecy
extended self
relationship between consumer and their possesions
loved objects
derive emotions by helping resolve internal conflict
love is 2nd most common consumer word
impression managmwnt
process of creating desirable images go ourselves for others
appearance managemnt
controlling clothes etc
ingrations
set of strategic behaviors designed to gain benefits from others
aligning activities
comments attempting to realign behavior with norms
Five factor model
1) outgoingness
2) agreeableness
3) emotional stability
4) conscientiousness
5) intellect
Brand personality
set of human characteristics associated with a brand sincerity excitement competence sophistication ruggedness
brand personificarion
giving non human human like traits
brand anthropomorphism
giving non human human form and traits
