Intro to Consumer Behaviour Flashcards
Chapter 1
Define Consumer Behaviour
Study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas, or experiences to satisfy needs and desires.
Marketing Segmentation
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.
80/20 Rule
20% of users account for 80% of sales.
Demographics
statistics that measure observable aspects of a population, such as birth rate, gender, age, income.
Psychographics
Differences in consumers’ personalities, attitudes, values, and lifestyles.
Relationship Marketing
making an effort to interact with customers on a regular basis, giving them a reason to maintain a bond with the company over time.
Database Marketing
A way of creating relationship with consumer via tracking specific consumer buying habits very closely and crafting products and messages perfectly to consumer needs.
Self-concept attachment
The product helps to establish the users identity
Nostalgia-attachment
The product serves as a link with a past self
Interdependance
The product is a part of the user’s daily routine
Love
The product elicits emotional bonds of warmth, passion, or strong positive feelings.
Consumer-generated content
Consumers themseslves voice their opinions about products, brands, and companies on social media is an important part of marketing influence on culture.
U-commerce
is the use of ubiquitous networks, whether in the form of wearable technology or customized ads beamed on our cell phones (“hey you walking by mcdonalds want a burger?”)
horizontal revolution
information flowing across people
Business ethics
rules of conduct that guide actions in the marketplace. Universal values include: honesty, trustworthiness, fairness, respect, justice, integrity, concern for other, accountability, and loyalty.
culture jamming
aims to disrupt efforts by the corporate world to dominate our cultural landscape.
Corporate Social Responsibility
voluntarily choosing to protect or enhance their positive social and environmental impacts as they go about their business activities. Driven by consumer demand to be a unique selling point (lush)
Corporate giving
donating to good causes
cause-related marketing
promise to donations to charity as purchase incentives
Social marketing
marketing techniques to inform better behaviour amongst people
Transformative Consumer Research
promotes research projects that include the goal of helping people or bringing about social change.
Consumer addiction
physiological or psychological dependancy on products or services. This addiction includes addiction to alcohol, drugs, and cigarettes any company profiting from selling addictive products.
Compulsive Consumption
repetitive shopping, often excessive, done as an antidote to tension, anxiety, depression, or boredom. The distinction between compulsive consumption & impulse buying is the process of buying, not the purchase themselves.
Shrinkage
industry term for inventory and cash losses from shoplifting and employee theft.
anticonsumption
rebelling against the idea of consumption itself. can take the form of political protest
Primary research
when data os collected by a researcher specifically for the research question at hand. techniques include, surveys, focus groups, interviews, experiments. main goal is to uncover consumer insights.
Secondary research
pre existing source of information collected for another purpose.
Classical economics perspective
Consumers are rational, behave based on calculations (they can maximize their utility)
Consumer behaviour perspective:
consumers are mostly irrational. behave based on desires, psychological needs, emotions, cognitive biases, social influences.
