Exam Revision Flashcards
Consumer behaviour
processes involved when individuals/groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and wants.
Three phases of consumer behaviour process
1) pre-consumption
2) consumption
3) post-consumption
Value-in-use
value of a good to the consumer in terms of usefulness it provides.
Co-create value
consumers wish to co-create value through active involvement during the process.
Crowdsourcing
where consumers become involved in ventures, such as fundraising, innovation and/or manufacturing.
Consumer
a person who identifies a need or desire, makes a purchase, and then disposes of the product.
Consumer impact on marketing - considerations (3)
- consumer knowledge should be incorporated in every aspect
- firms exist to satisfy needs
- important for marketers to identify products that reflect needs
Marketing segmentation
identifying groups of consumers who are similar to one another in one/more ways and then devising marketing strategies that appeal to one or more groups.
Market segmentation dimensions (3)
- demographics (age & population)
- product usage
- psychographics (psychological & lifestyle)
Relationship marketing
strategic perspective that stresses the long-term, human-side of buyer and seller interactions.
Database marketing
closely tracking consumers buying habits, then crafting products and messages tailored precisely to peoples wants and needs.
Types of relationships a person may have with a product (4)
- self concept attachment: helps establish user identity
- nostalgic attachment: product serves as link to past
- interdependence: product part of daily routine
- love: product elicits emotional bond of warmth
Types of consumption activities (4)
consuming as:
- experience
- integration
- classification
- play
Need
something a person must have to live and/or achieve a goal.
Want
Particular form of consumption chosen to satisfy a need.
Global consumer culture
Consumers united by their common devotion to brand name consumer goods, celebrities and leisure activities.
Digital native (4)
- individuals contribute, co-create and act as prosumers.
- increased convenience by breaking down time and location barriers.
- social-network sites create communities of similar people, spawning friendships.
- marketers and consumers coexist in a network of public and private relationships
Two perspectives on consumer research (2)
Positivism and Interpretivism
Positivism
paradigm that emphasises supremacy of human-reason and objective search for truth through science.
Interpretivism
paradigm that emphasises the importance of symbolic, subjective, experience and the idea that meaning is in the mind of the person.
Two perspectives used by normative business ethics (2)
Deontology and Teleology
Deontology
Emphasises acting according to universal moral duties without regard to the good or bad consequences of their actions.
Teleology
Predicted on the notion that the ethically correct decision is the one that produces the best consequences.
Marketplace
when companies called the shots and decided what they wanted their consumers to know and do.
Consumer-space
marketing environment where consumers act as partners with companies to decide what the marketplace will offer.
Consumer activism
consumers become activists when they promote the rights, consciousness and interests of consumers.
Corporate social responsibility
the processes that encourage organisations to make a positive impact on the various stakeholders in their community including consumers, employees and the environment.
Cause marketing
strategy that aligns a company or brand with a cause to generate business and societal benefits.
Social marketing
using marketing techniques to encourage positive activities and to discourage negative activities.
Positive of technological advancement
enables companies to tailor their messages to consumer needs.
Data privacy concerns with technological advancement (3)
- identity theft
- phishing scams
- locational privacy
Market access
consumer ability to find and purchase goods and services is limited to some groups due to physical, mental, economic or social barriers.
Green marketing
strategy which emphasises protecting natural environment.
Deviant consumer behaviour
actions that violate the accepted behaviour in a consumer context and results in harm for other customers or the organisation.
Consumer terrorism (2)
- bioterrorism (disrupting nations food supply)
- cyber-terrorism (using IT to cause harm)
Illegal acquisition and product use
- theft: shrinkage and counterfeiting
- anti-consumption: products deliberately defaced/mutilated
The five senses and marketing influence
vision - colours may influence emotions
scent - colours can stir emotions or create calming feeling
sound - create brand awareness, affects feelings and behaviours
touch - association of textures with product quality
taste - taste receptors contribute to our experience of many products
Sensory thresholds (3)
- psychophysics
- absolute threshold
- differential threshold
Absolute threshold
minimum amount of stimulation that can be detected on a given sensory channel.
Differential threshold
ability of sensory system to detect changes/differences between stimuli.
Subliminal perception
when stimulus is below the level of that consumers awareness. (little evidence to support)
technique - embeds
Attention
extent to which processing activity is devoted to a particular stimulus.
Perceptual selection
people attend to only a small portion of the stimuli to which they are exposed.
Attention economy
internet shifted focus of marketers from attracting dollars to eyeballs.
Personal selection factors (4)
- experience
- perceptual vigilance: aware stimuli relates to current needs
- perceptual defence: people see what they want to see
- adaptation: degree to which consumers continue to notice stimuli over time
Stimulus selection factors (4)
- size (stimulus size in comparison to competition)
- colour (colour powerful way to draw attention)
- position (stimulus presented in places where more likely noticed)
- novelty (stimuli presented unexpected ways draw attention)
Interpretation
meaning assigned to sensory stimuli.
Schema
set of beliefs which stimulus is assigned.
Priming
process by which certain properties of a stimulus will evoke a schema. this leads consumers to evaluate the stimulus in terms of other stimulus they have encountered and believe to be similar.
Stimulus organisation
stimulus will be interpreted based on its assumed relationship with other events, sensations or images.
- closure principle: perceive incomplete picture as complete.
- principle of similarity: group together objects with similar physical characteristics
- figure ground principle: one part of stimulus will dominate (figure)
Semiotics
study that examines correspondence between signs and symbols and their role in the assignment of meaning.
3 Components of a message
- object (product)
- sign (sensory image represents intended meaning)
- interpretant (meaning derived)
Classical conditioning
occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. over time second stimulus causes similar response through association.
Stimulus generalisation
tendency of stimuli similar to a conditioned stimulus to evoke a similar conditioned response.
Types of operant conditioning (3)
- positive reinforcement
- negative reinforcement
- punishment
Operant (instrumental) conditioning
occurs as the individual learns to perform behaviours that produce positive outcomes and avoid behaviours that yield negative outcomes.
Observational learning
when people watch the actions of others and note reinforcements received for their behaviours.
Cognitive learning (2)
iconic rate learning - association between two or more concepts in the absence of conditioning.
reasoning - most complex learning form, where high involvement decisions generate some reasoning.
Memory
process of acquiring and storing information over time so that it will be available when needed.
Stages of memory (3)
- encoding stage (information entered in recognisable way)
- storage stage (knowledge integrated into what is already in memory and warehoused)
- retrieval stage (person accesses the desired information)
Memory systems (3)
- sensory memory
- short term memory
- long term memory
Augmented reality
media that combines a physical layer with a digital layer to create a combined experiences.
Motivation
processes that lead people to behave as they do.
Goal
end state that is desired by the consumer.
Drive
degree of arousal present due to a discrepancy between the consumers present state and some ideal state.
Motivation can be descried in terms of…(2)
- strength: pull it exerts on the consumer
- direction: particular way consumer attempts to reduce motivational tension
Types of needs (4)
- biogenic: needs necessary to maintain life
- psychogenic: culture-related needs
- utilitarian: emphasise objective, tangible aspects of products
- hedonic: subjective and experimental needs
Motivation conflicts (3)
approach-approach - choosing between 2 desirable alternatives
approach-avoidance - desire a goal but also wish to avoid (eating chocolate)
avoidance-avoidance - choosing between 2 undesirable alternatives
Henry Murray need dimensions (3)
- autonomy: being independent
- defendence: defending the self against criticism
- play: engaging in pleasurable activities.
Thematic apperception technique (TAT)
1 - what is happening?
2 - what led up to this situation?
3 - what is being thought?
4 - what will happen?
Maslow’s hierarchy of needs
- self actualisation
- ego-needs
- belongingness
- safety
- physiological
McGuire’s psychological motives (4)
- cognitive preservation motives
- cognitive growth motives
- affective growth motives
- affective preservation motives
Consumer involvement
a person’s perceived relevance of the object based on their inherent needs, values and interests.
levels:
- low: simple processing (only basic features of message are considered)
- high: elaboration (incoming information is linked to pre-existing knowledge)
Personality concept
a person’s unique psychological makeup and how it consistently influences that way a person responds to their environment.
Freudian systems
- ID: immediate gratification
- Ego: system that mediates between ID and superego
- Superego: person’s conscience
Many faces of involvement
- product involvement (interest in a product)
- message-response involvement (interest in marketing communications)
- purchase-situation involvement (differences that may occur when buying the same object for different contexts)
Trait theory
An approach to personality that focuses on the quantitative measurement of personality traits.
- innovativeness
- materialism
- self-consciousness
- need for cognition
- frugality
Innie vs Outie
David Reisman
extent to which a person is motivated to consume in order to fit in, in contrast to consuming to express a unique sense of self without concern for acceptance by a group.
Brand personality
traits people attribute to a product as if it were a person.
Brand equity
extent to which a consumer holds strong favourable and unique associations with a brand in memory.
Animism
practice found in many cultures whereby inanimate objects are given qualities that make them somehow alive.
level 1 - people believe object is possessed by soul of being
level 2 - objects are anthropomorphised or given human characteristics
Idiocentrics vs Allocentrics
Idiocentrics - individuals who have an individualist orientation
Allocentrics - individuals who have a group orientation.
Power of conformity
the impact of shaping one’s behaviour to meet the expectations of a group.
Need for uniqueness
degree to which a person is motivated to conform to the preferences of others versus standing apart from the crowd.
Real and Ideal Self
Ideal - a persons conception of how they would like to be.
Actual - a persons realistic appraisal of the qualities they do and do not possess.
Fantasy - bridging the gap between the two.
Multiple selves (3)
role identities - different components of the self.
symbolic interactionism - stresses that relationships with other people play a large part in forming the self.
looking glass self - process of imagining the reactions of others toward us.
Self consciousness
a painful awareness of ones self magnified by the belief that others are watching intently.
public - heightened concern
Symbolic self-completion theory
people who have an incomplete self-definition tend to complete this identity by acquiring and displaying symbols associated with it.
Self image congruence
products will be chosen when their attributes match some aspect of the self.
4 levels of the extended self
external objects that consumers consider apart of themselves 1 - individual level 2 - family level 3 - community level 4 - group level
Gender differences in socialisation
Agentic goals (male) - stress self assertion and mastery Communal goals (female) - stress affiliation and fostering harmonious relations
Sex identity
an important component of a consumer’s self concept.
Androgyny
the possession of both masculine and feminine traits.
Body image
a consumers subjective evaluation of their physical self.
Body cathexis
a person’s feelings about their body.
Ideal of beauty
a person’s satisfaction with their physical image is affected by how closely that image corresponds to the image valued by their culture.
Attitude components
emotion - way a consumer feels about an attitude object
cognition - beliefs a consumer holds about an attitude object
Attitude hierarchies (3)
standard learning hierarchy - learn feel do
low-involvement hierarchy - learn do feel
experiment hierarchy - feel do learn
Comparative advertising
a strategy in which a message features two or more recognisably presented brands and compares them in terms of specific attributes.
Emotion dimensions (3)
- pleasure
- arousal
- intimidation
Changing the cognitive component of attitudes (learn)
constructing the argument:
- supportive argument: present one or more positive attributes of the product
- refutational arguments: raise a negative issue then dismiss it.
drawing conclusions: determine whether to make conclusions on behalf of consumers or let them draw their own conclusions
Changing the emotion component of attitudes (feel)
- humor
- fear
using humour
- risky strategy as humour varies
- effective when the brand is clearly identified and humour does not distract
using fear
- emphasise negative consequences of not changing behaviour
- effective when the threat is immediate and accompanied with a solution to resolve the threat.
How do marketers change attitudes?
persuasion which involves an active attempt to change attitudes.
Psychologic principles that influence people (6)
- reciprocity (likely to give if we receive)
- scarcity (items more attractive when they aren’t available)
- authority (authoritative sources are more believable)
- consistency (people try not to contradict themselves)
- liking (we agree with those we like/admire)
- consensus (we consider others before deciding what to do)
Continum of buying decision behaviour
1 Habitual behaviour
2 Limited problem solving
3 Extensive problem solving
Extended problem solving
Decisions which adhere most closely to the traditional decision making perspective. Consumers seek information from memory and from outside sources.
Stages in consumer decision making (5)
- problem recognition (consumer recognises a problem or need or want)
- information search
- evaluation of alternatives
- product choice
- post purchase outcome
Limited problem solving
More straightforward, as buyers are not as motivated to seek information or alternatives and use simple decision rules.
Habitual decision making
Decisions with little/no conscious effort. Therefore consumers can be primed to respond without conscious thought. This allows consumers to minimise time and energy spent on purchase decisions.
Perspectives on consumer choice
- people will integrate information
- evaluate pros and cons of alternatives
- arrive at satisfactory decision
Buckets of consumer decision making (3)
- cognitive: deliberate, rational, sequential
- habitual: behavioural, automatic
- affective: emotional, instantaneous
Affective events theory
Experiencing an affective event can create an emotion that leads to an affect-driven attitude and behaviour.
Affect control theory
Explains that changes in our thoughts and behaviours to maintain our emotions, as opposed to changing our emotions to be consistent with our thoughts and behaviours.
Affect infusion model (4)
ways consumers change judgement: 1 - direct access 2 - motivated 3 - heuristics 4 - substantive processing
Affect as information
Decisions made based on how we feel.
Emotion as social influence (EASI) model
Explains how others use emotions to make decisions.
Influenced in 2 ways:
- inferential processes
- affective reactions
Ways consumers can be primed:
- manipulating environment to alter behaviour (layout, music)
- framing the perspective (food labels)
- retail stores are designed to generate movement
EKB model
- types of info searches
- search activity
Types of info search:
- external: seek information from marketers
- internal: based on memory
Search activity is greater when:
- purchase is important
- info is easy to obtain
- low prior experience
Economics of information
Assumes consumers will gather as much data as needed to make an informed decision. Continue until the value of additional information exceeds the cost of gathering it.
Variety seeking
The desire to choose new alternatives over more familiar ones.
Evoked set
Alternatives actively considered during decision making.
Consideration set
Alternatives that you would actually consider.
Evaluation of alternatives: sets of products (4)
- inert set
- evoked set
- consideration set
- inept set
Inert set
Alternatives you are aware of but have no opinion on.
Inept set
Alternatives which will not be considered. (Outsider)
Mental categories
Categorisation level will depend on consumer perceptions of which products share similar characteristics and which products can be considered alternatives to the product.
Strategic implications of product categorisation (6)
- product positioning
- identifying competitors
- non-comparable products
- exemplar products
- unusual products
- locating products
Evaluative criteria
Dimensions used to judge the merits of competing options. Determinant attributes used to differentiate as we perform tasks.
Neuromarketing
Uses functional magnetic resonance imaging, a brain scanning device, that tracks blood flow as we perform tasks.
Heuristics
Mental rules of thumb which aid speedy decisions. Shortcuts: - product signals - market beliefs - familiar brand names - inertia
Mental accounting
Process in which decisions are influenced by the way the problem is posed and whether it is put in the terms of gain or loss.
Sunk costs fallacy
Decision making bias where having paid for something makes a consumers reluctant to waste it.
Loss eversion
People place more emphasis on the loss than any gains.
Prospect theory
Utility is a function of gains and losses. Risk differs when the consumer faces options involving gains versus those involving losses.
How businesses design a memorable experience (5)
1) theme the experience
2) harmonise impressions with positive cues
3) eliminate negative cues
4) mix in memorabilia
5) engage the 5 senses
Contextual effects on buying (6)
- physical surroundings
- social surroundings
- temporal factors
- antecedent states
- task definition
- shopping orientation
Purchase environment (4)
- shopping experience
- spontaneous/planned shopping
- point of purchase stimuli
- m-commerce
Post purchase outcomes (4)
- consumer satisfaction
- customer value
- brand loyalty
- product disposal
Store image
Stores personality including stores location, merchandise sustainability and knowledge and congienitality of its sale staff.
Atmospherics
The conscious designing of space and it’s various dimensions to evoke certain effects in buyers.
Shopping centres as third places
Public place where people gather for socialising beyond work and home. Aim to entertain means that many stores are going to create imaginative environments.
Retail theming (4)
Landscape - associations with images of nature
Marketscape - associations with man-made places
Cyberspace - incorporate images of information and communications technology
Mindscape - abstract ideas and concepts
Co-consumers
Density - actual number of people occupying a space
Crowding - exists only if negative affective stage occurs as a result of density
Emotional contagion - transference of emotions from one person to another
Temporal factors
- economic time
- psychological time
Economic time
Time is an economic variable
Psychological time
- social
- temporal orientation
- planning orientation
- polychronic orientation
Pleasure and arousal
Two dimensions which determine if a shopper will react positively or negatively to a consumption environment.
Mood
Combination of pleasure and arousal, mood state biases judgements of products and services in their particular direction.
Why identifying important usage situations can help market segmentation?
By systematically identifying important usage situations, market segmentation strategies can position products that will meet the specific needs arising from these situations.
Unplanned buying
Occurs when a person is unfamiliar with a stores layout or when under some time pressure; a person may also be reminded to buy something by seeing it.
Impulse buying
Occurs when the person experiences a sudden urge that cannot be resisted.
Reasons people go shopping
Utilitarian reasons - functional
Hedonic seasons - pleasurable
Purchase environment
Planners - know products and brands beforehand
Partial planners - know they need certain products but don’t decide on a product till in store
Impulse planners - do no advanced planning
Point of purchase stimuli (POP)
An elaborate product display or demonstration, a coupon dispensing machine or someone giving out free samples.
M-commerce vs F-commerce
M-commerce: shopping using mobile device
F-commerce: purchasing items on Facebook
Online experience differs to in-store experience
- lack of social interaction and immediate delivery
- greater use of technology to personalise products
Consumer satisfaction
Determined by overall feelings, or attitude, a person has about a product after it has been purchased.
Ways to act on dissatisfaction
Voice response - consumer appeal to retailer
Private response - express about store to friend
Third party response - consumer take legal action
Customer value
Represents the unique benefits that a customer gained from buying or consuming a product.
Brand loyalty
+ 2 components
When a customer prefers your brand and buys it regularly.
- Attitudinal: thoughts and feelings
- Behavioural: the action
Green marketing
Sustainability through integrating efforts into core marketing and business processes.
Social marketing
Influencing consumers, suppliers and structures to encourage behaviour change.
Critical marketing
Stimulate, regulate and control innovation in markets to encourage sustainability.
Lateral cycling
Already purchased objects sold to others or exchanged for other things.
Social identity theory
Argues that each of us has several ‘selves’ that relate to groups.
Reference group
An actual or imaginary individual/group conceived of having significant relevance upon an individuals evaluations, aspirations or behaviour.
Types of reference groups (2)
- aspirational (idealised figures; actors, athletes)
- membership (ordinary people whose consumption provide informational social influence)
Dissociative groups
Groups that consumers wish to avoid being associated with.
Brand community
A set of consumers who share a set of social relationships based upon usage or interest in a product. Their inputs create added value for themselves and other members.
Brandfests
Corporate sponsored events organised for the benefit of existing customers.
Three ways reference groups influence:
- informational influence
- utilitarian influence
- value expressive influence
Informational influence
Occurs during an internalisation process where an individuals knowledge is enhanced by interactions about the marketplace or an ability to cope.
Utilitarian influence
Similar to normative influence in that an individual in a product purchase situation will comply with the preferences or expectations of an individual or the group.
Value expressive influence
Relates to a persons motive to enhance or support their self-concept. Companies use attractive models to enhance brand image through association.
Two dimensions which influence the importance of a reference group
- purchase is consumed publicly or privately
- purchase is luxury or necessity
Conformity
A change in beliefs or actions as a reaction to real or imagined group pressure.
Norms
Informal rules that govern behaviour.
Social comparison theory
People look to the behaviour of others to increase the stability of their self-education.
Ways to resist social comparison
Independence - being oblivious or indifferent to others exceptions
Anti-conformity - defiance of group
Reactance - negative/emotional state that results when we are deprived of our freedom to choose
Social power
The capacity of one person to alter the actions or outcome of another.
Types of social power (6)
- referent power
- information power
- legitimate power
- expert power
- reward power
- coercive power
Referent power
when a person admires a person and tries to imitate them
Information power
power from merely possessing valuable information that others do not have access to
Legitimate power
granted to people by virtue or social agreements
Expert power
power based on possessing specific knowledge about a content area
Reward power
when a person/group has the means to provide positive reinforcement
Coercive power
influence through social/physical intimidation
Family life cycle (FLC)
concept that combines trends in income and family composition with the changes in demands placed upon this income to segment households.
Factors determining degree of family decision conflict (4)
- interpersonal need
- product involvement and utility
- responsibility
- power
Opinion leaders
People who are knowledgeable about products and who are able to influence others attitudes or behaviours.
How influential is an opinion leader?
- generalised opinion leader (somebody whose recommendations are sought for all types of purchases)
- monomorphic opinion leader (expert in a limited field)
- polymorphic opinion leader (expert in many fields)
Types of opinion leaders (4)
- innovative communicators (early purchasers)
- opinion seekers (more involved, actively seek info)
- market maven (involved in transmitting marketplace info)
- surrogate consumer (person hired to provide input in purchase decisions)
How to identify opinion leaders?
self designating - ask individual if they consider themselves an opinion leader
sociometric - trace communications patterns among members of a group
Word-of-mouth
Product information transmitted by individuals. Consumers weigh negative info heavier than positive info.
Changing information
- serial reproduction (examine info changes as it is transmitted among customers)
- assimilation (distortions follow pattern from ambiguous to conventional to fit with existing schemas)
Buzz marekting techniques
Guerilla marketing - using unconventional locations and intensive WOM campaigns to push products.
Viral marketing - getting customers to sell a product on behalf of company.
Social media - Online community
The collective participation of members who together build and maintain a site.
- standards of behaviour
- member contributions
- degree of connectedness
- network effects
Culture
The accumulation of shared meanings, rituals, norms and traditions among the members of an organisation or society. They are created from a range of sources; language, education, nationality and religion.
Subcultures
Group memberships within society at large, these members share beliefs and common experiences that set them apart from others.
Theories to explain influence of culture (3)
- cultural variation theory (Triandis)
- five dimensions of culture (Hofstede)
- cultural clusters (The Globe Project)
Triandis
Cultures differ on three dimensions
- complexity
- tightness
- collectivism
Hofstede
5 cultural dimensions
- power distance
- masculinity
- individualism
- uncertainty avoidance
- long-term orientation
Globe Project
A grouping of countries that share similar cultural characteristics.
Ethnic subcultures
A self-perpetuating group of consumers who are held together by common cultural or genetic ties.
Ethnicity
People who have similar language, common racial ancestry and religion.
Ethnic subcultures
high context - infer meanings from symbols and gestures
low context - more emphasis on words in messages
De-ethnicisation
Occurs when a product we associate with a specific ethnic group detaches itself from its roots and appeals to other groups as well.
Ethnic symbolism
Used as a short-hand to connote certain product attributes.
Acculturation
Process of movement and adaptation to one country’s cultural environment by a person from another country.
Accult agents - teach ways of culture
Acculturation process steps
1 Movement
2 Translation
3 Adaptation
Ethnic pluralism
Argues that ethnic groups differ from the mainstream in varying degrees and that adaptation to the larger society occurs selectively.
Progressive learning model
Assumes that people gradually learn a new culture as they increasingly come into contact with it.
Religious subcultures
Religious influences attitudes toward sexuality, birth rates, household formulation, food consumption and political attitudes.
The influence of age on identity
Age exerts a significant influence on ones identity.
- cognitive age: age we perceive ourselves to be
- chronological age: age we actually are
- down-ageing: trend for older people acting and feeling younger than their age
Age subcultures (4)
- people of similar ages with similar experiences
- age cohort share common memories of cultural heroes/events
- value and consumption shaped by marketers
- children being socialised as consumers earlier than ever
Consumer socialisation
Process by which young people quire skills, knowledge and attitudes relevant to their functioning in the marketplace.
2 primary sources - media and family
5 stages of consumer development
1 - observing 2 - making requests 3 - making selections 4 - making assisted purchases 5 - making independent purchases
Youth subcultures (2)
- uncertainty about self, need to belong and find unique identity
- search cues from peers and media for ‘right’ way to look
Generation Z
Born mid 1990s - early 2000s
- first fully global generation, connected through digital sources and social media
- tend to research first then check availability online then shop in-store
- associated with social shoppers
Social shoppers
Like to shop in-store, as well as on-line, but prefer face to face experience of shopping and like to shop with friends.
Generation Y ‘millenials’
Born between 1986 and 1994
- need to connect: digital natives
- first to grow-up with computers in home (average 6.8 devices)
Generation X ‘slackers’ ‘baby busters’
Born between 1965-1985 4 factors shaped by experience - financially squeezed - common lifestyle characteristics - forever young - spending habits
Baby boomers
Born between 1946 - 1964
- source many cultural and economic changes
- attractive and physically fit than other generations
- entering retirement: achievement orientation
Seniors
Aged 65 and older
- image of being ‘invalid’ is changing
- age = more state of mind then body, emphasise product benefits rather than age appropriateness
- can segment according to age, as well as other factors
Lifestyle
A pattern of consumption reflecting a person’s choices of how they spend time and money.
Lifestyle from an economic vs marketing perspective
Economic - consumption pattern reflecting person choices of how they spend money.
Marketing - people sort themselves into groups based on what they like to do, spend their time and use their disposable income.
Goal of lifestyle marketing
To allow consumers to peruse their chosen ways to enjoy life and express their social identities. To adopt lifestyle marketing, we look at behaviour patterns to understand consumers.
To create product lifestyle linkages - use co-branding
Co-branding recognises that even unattractive products are more attractive when evaluated with other liked products.
Co-branding is strategic partnership different brands
Product complementary
Occurs when the symbolic meanings of different products are related to each other.
Consumption constellations - clusters of complementary products/brands used by consumers
Psychographics
Use of psychological, sociological, and anthropological factors for market segmentation.
Types of forms:
- lifestyle
- product-specific
- general lifestyle segmentation
- product specific segmentation
Roy Morton value 10 segments: along 6 dimensions
4 human social dimensions - individualism - life satisfaction - conservatism - innovation 2 marketplace reality dimensions - quality - price expectations
To spend or not to spend?
Consumers demand for goods and services depends upon the ability and willingness to buy. Other expenditure can be postponed or eliminated.
Discretionary income
Money available to a household over and above that required to a comfortable standard of living.
Meaning/attitudes toward money (4)
- money has more than economic meaning
- influences consumers in their actions and psyches
- less is more
- purchase decisions linked to environmental friendliness, fair trade and food miles
Consumer confidence
Consumers belief about what the future holds.
Savings rate is influenced by…(3)
- individual consumers pessimism/optimism about their personal circumstances
- world events
- cultural differences in attitudes toward savings
Social class
The overall rank of people in society determined by income, occupation and lifestyle, this has a profound impact on consumption choices.
Where subcultures are characterised by:
- specific outlooks
- values
- behaviour norms
- universal social pecking order
What does social class affect? (3)
- access to resources (education)
- lifestyle practices (occupation)
- social stratification; creation of artificial divisions in society
Achieved vs Ascribed status
Achieved - status earned through hard work
Ascribed - status one is born with
The status hierarchy is the structure in a social group in which some members are better off than others.
Social mobility
Passage of individuals from one social class to another.
Horizontal mobility - movement to another similar social status
Downward mobility - movement to a lower social status
Upward mobility - movement to a higher social status
Occupational prestige
Worth of people based on what they do for a living.
Income
Distribution of wealth is important to marketers because it determines buying power and market potential.
How does income relate to social class?
- social class is better predictor of symbolic, low price purchasers
- income predicts purchase of expensive products without symbolic value
- social class and income predict purchases of expensive and symbolic products
Targeting the rich: attitudes towards luxury
- luxury is functional
- luxury is reward
- luxury is indulgence
How does social class affects purchase decisions?
Working class
- evaluate products in more utilitarian terms
- concerned with immediate needs
- more dependent on relative/family oriented
Affluent class
- concerned with appearance and body image
- focus on longer term goals
Cultural capital
Set of distinctive and socially rare tastes and practices that admit a person into the realm of the upper-class.
Habitus
Ways we classify experiences as a result of our socialisation processes.
Taste clusters
Clusters of furnishings and decorative items were identified, with different clusters found depending on social status.
What we tend to evaluate?
- ourselves
- our professional accomplishments
- our appearance
- our material well-being
Status symbols
Display of products to let others know we can afford them.
Invidious distinction
Product motivation to inspire envy.
Conspicuous consumption
A desire to provide prominent, visible evidence of the ability to afford luxury goods.
Parody display
Deliberately avoiding status symbols in a form of conspicuous consumption.
Marketers fail to use social class information as they… (5)
- ignore status inconsistently
- ignore inter-generational mobility
- ignore subjective social class
- ignore consumers aspirations to change class standing
- ignore social status of working wives
Cultural system 3 functional areas
- ecology
- social structure
- ideology
Values
General ideas about good and bad goals.
Enacted norms
Norms explicitly decided on.
Crevice norms
Norms embedded in culture.
- customs: norm handed down from past controls basic behaviours
- more: custom with strong moral overtone
- conventions: norms regarding conduct everyday life
Co-operation
Process by which outsiders transform the meaning of cultural products.
Cultural selection
Process by which many possibilities compete for adaption, and are steadily winnowed out as they make their way down from conception to consumption.
Culture production process (CPS)
The set of individuals and organisations responsible for creating and marketing a cultural project. Components: - creative subsystem - managerial subsystem - communications subsystem
Art product
Craft product
Art product - viewed primarily as an object of aesthetic contemplation without any functional value.
Craft product - admired because of the beauty with which it performs some function.
Cultural formule
When certain roles and props often occur consistently.
Myth
A story containing symbolic elements that represents the shared emotions and ideals of a culture. Functions and structures include: metaphysical, cosmological, sociological and psychological.
Rituals
A set of multiple symbolic behaviours that occur in a fixed sequence and that tend to be repeated periodically.
Grooming rituals
Sequences of behaviours that aid in the transition from the private self to the public self or back again.
Gift-giving rituals
Consumers procure the perfect object, meticulously remove the price tag and carefully wrap it and deliver it to the recipient.
Economic exchange
Symbolic exchange
Economic exchange - giver transfers item of value, expected exchange
Symbolic exchange - givers acknowledge intangible support
Gifts giving stages
1) Gestation - giver motivated by an event
2) Presentation - process of gift exchange
3) Reformulation - bonds between giver and receiver adjusted to reflect new relationship after exchange
Reciprocity norm
Feeling of obligation to return the gesture of a gift with one of equal value.
Rites of passage
Special times marked by a change in social status.
Consumer rites of passage
- separation: individual detached from original group/status
- liminality: person is between statuses
- aggregation: person re-enters society after rite of passage is complete
Sacred consumption
Involves objects and events that are set apart from normal activities and are treated with some degree of respect.
Profane consumption
Involves consumer objects and events that are ordinary, everyday objects and events that do not share the specialness of sacred ones.
Sacralisation
Occurs when ordinary objects, events and even people take on sacred meaning to a culture or specific group within a culture.
Objectification
When we attribute sacred qualities to mundane items.
Collecting
Hoarding
Collecting - Systematic acquisition of a particular object or set of objects.
Hoarding - Unsystematic collecting.
Desacralisation
When a sacred item or symbol is removed from its special place or is duplicated in mass quantities, becoming profane as a result.
Sacred places
Set apart by society because they have religious or mystical significance or because they commemorate some aspect of a country’s heritage.
Sacred people
People who are idolised and set apart from the masses.
Sacred events
Consumer activities which take on a special status.
Innovation
Any product/service that consumers perceive to be new.
Diffusion of innovations
Process whereby a new product, service or idea spreads through a population.
Types of innovation adopters
innovators - people on the lookout for novel development and will be the first to try new offering
early adopters - share many characteristics as innovators, but care for social acceptance
late adopters - consumers interested in new things but do not want them to be too new, they deliberately wait
laggards - people slow to pick up new products
Continuous innovation
Dynamically continuous innovation
Discontinuous innovation
Continuous innovation - A modification of an existing product.
Dynamically continuous innovation - A more pronounced change in existing product.
Discontinuous innovation - Creates major changes in the way we live.
Determinants an innovation will diffuse (5)
- compatibility - innovation compatible with consumer lifestyle
- trialability - people more likely to adopt a product they can experiment with first
- complexity - product should be low in complex
- observability - easily observable innovations are more likely to spread
- relative advantage - should offer relative advantage over alternatives
Adopt a standardised strategy
Etic perspective - focuses on commonalities across cultures
Adopt a localised strategy
Emic perspective - stresses variations across cultures
Global marketing
To maximise the chances of success of global marketing, marketers must locate consumers in different countries who share a common world view.
Two main consumer segments:
- affluent global citizens
- young people
Two theoretical perspectives in ethics
- teleological theories
- deontological theories
Teleological theories
Deal with moral worth of behaviour as determined by its consequences. To be ethical a decisions should be based on what is best for everyone.
Deontological
Focus on the results of a particular action. Place greater weight on personal and social values than on economic values.
Unethical marketing (5)
- poor product
- expensive price
- deceptive promotion
- distribution bait and switch
- packaging to price
Unethical consumers (4)
- piracy
- abusing warranty/guarantee privileges
- stealing
- switching price tags
Perils of precision targeting
Consumers loss of privacy as advertisers using narrowcasting which involves data complied about consumers by companies.
Manipulating consumers (4)
- forced exposure to advertising
- tinkering with consumers perceptions
- convert marketing: messages that appear to come from independent parties when they don’t
- socially undesirable representations
Social responsibility of marketers (2)
- industries have developed codes of ethics that guide decision making
- social goals in mission statements: ethical environment encourages ethical practices by employees
Consumer boycott
Action by a group to stop doing business with a company for the purpose of expressing disapproval.
Public policy
Policies that intervene in the process or outcome of marketing exchanges to benefit society.
Government types of intervention:
- regulation
- consumer education
- encouragement of industry self-regulation
- incentives
- complaints handling
Consumer and Competition Act 2010 includes…(6)
- product liability
- consumer protection
- anti-competition practices
- unconscionable conduct
- product safety
- industry codes
Public policy
Policies that intervene in the process or outcome of marketing exchanges to benefit society.
Sensitive advertising issues (4)
- advertising to children
- sexism in advertising
- cigarette advertising
- alcohol advertising
Corrective advertising
Under consumer and competition Act 2010, advertisers can be ordered to publish corrective advertising.
Consumer education
Government agencies offer consumer education programs, such as schools educating health concerns.
Servicescape
Refers to the environments in which services are delivered and where the firm and customer interact.
Aim is to develop environments that:
- create pleasure and arousal states
- facilitate operation ease and efficiency
Compensatory decision rules
A type of decision rule in which a consumer evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score.
