Introduction Flashcards
Define:
Consumer Behaviour
Consumption
Offering
Consumer Behaviour: Totality of consumers’ decisions wrt consumption of offerings by human decision-making units (over time).
- Consumption: Includes acquisition, usage & disposition of offerings.
- Offerings: P/S, activity, experience & idea offered by marketing org to consumers.
What are Decision-Making Units?
Decision-Making Units include info gatherers, influencers, deciders, purchasers, users.
Define acquisition, usage, disposition
- Acquisition: Process by which consumer comes to own offering.
- Usage: Process by which consumer uses offering.
- Disposition: Process by which consumer discards offering.
Give examples of the ways consumers acquire offerings.
- Buying
- Trading
- Renting
- Leasing
- Bartering
- Gifting
- Finding
- Stealing
- Sharing
Describe the methods by which offerings are disposed.
- New Use: Repurposing offering (no disposal).
- Temporary Disposition: Renting/leasing/lending offering.
- Permanent Disposition: Trading/selling/recycling offering.
Describe the properties of Consumer Behavior
- CB is a dynamic process.
- CB involves attitudes towards offerings.
- Emotions.
- Coping.
- CB may involve many people.
- CB may involve many decisions.
How can consumer behavior involve emotions and coping?
- (+)/(–)/Specific emotions/moods can affect how consumers think + feel before/during/after making a decision.
- Consumers may use offerings to cope with compulsions, stress, inabilities (e.g. illiteracy, risk of terrorism, health, etc.).
Describe the decisions consumers make wrt offerings.
- How to consume offering
- How much/often/long to consume offering
- When to consume offering
- Where to consume offering
- What/Whether to consume offering
- Why (not) consume offering
What might affect when a consumer consumes an offering?
- Time of day
- Weather/Climate
- Season
- Traditions (e.g. Christmas tree for Christmas)
- Need for variety
- Knowledge that others will (not) use offering (e.g. iPhones).
Where might a consumer consume an offering?
- (AUD) Traditional places (e.g. food in a restaurant).
- (AUD) Stores
- (AD) Mail
- (AU) Phone
- (AUD) Online
- (U) Home
- (U) Public
- (D) Trash/Bin
Acquiring = A, Using = U, Disposing = D
What might affect how much/often/long to consume an offering?
- Compulsion (e.g. drugs).
- Work (e.g. company car, computer)
- Risk-aversion (e.g. flat fees vs. variable fees)
What might affect consumer’s decision of whether to consume an offering?
- How good offering is?
- How good alt offerings are (in comparison)?
- How much have you recently been spending?
- Will it help achieve personal goals?
- Will it help ease safety concerns?
- Will it help reduce risks?
Why might a consumer consume an offering (or not)?
- Offering does/doesn’t meet consumer’s needs, values, goals.
- Offering feeds consumer’s addiction/compulsion.
- Offering is (un)available.
Identify the 4 domains of consumer behavior affecting consumption.
- Psychological Core (Internal Processes).
- Decisionmaking Process.
- Consumer’s Culture (External Processes).
- Outcomes of Consumer Behaviour.
Describe the consumer’s psychological core.
- Motivation, ability & opportunity to consume offering.
- Exposure, attention, perception & comprehension to offering.
- Memory & knowledge of offering.
- Forming/Changing attitudes wrt offering.
Describe the consumer’s decisionmaking process.
- Recognize problem
- Search for Info
- Make judgement
- Make decision
- Evaluate decision
What questions would you ask to evaluate a decision?
- Was I satisfied/dissatisfied?
- Was offering >/=/< expectations?
- Would I consume offering again?
Define Consumer Culture
Consumer Culture: Typical/expected behaviours, norms & ideas characterizing a group of people.
Describe the factors influencing Consumer Culture
- Social Influences: Reference Groups
- Household/Class Influences: Income, family size/members, politics, etc.
- Diversity Influences: Region, ethnicity, religion, age, gender, etc.
- Psychographic Influences: Values, personality, lifestyles.
Define Reference Group
Reference Group: Group of people consumers compare themselves with for info regarding behaviour, attitudes, values.
Describe the outcomes and issues rising from consumer behaviour
- Offerings & behaviour symbolize who we are & used to express our actual/desired identity.
- Offerings & behaviour raise ethical issues marketers/consumers should consider.
- Offerings & behaviour diffuse through market & en/discourage other consumers’ decisionmaking.
Who benefits from studying Consumer Behaviour?
- Academics: Spread/generate knowledge.
- Marketers: Helps develop marketing strategies + tactics.
- Policymakers: Help develop policies protecting consumers from unfair, unsafe & unethical marketing practices.
- Ethicists/Advocacy Groups: Help raise awareness of unfair, unsafe & unethical marketing practices.
- Consumers: Helps inform consumers on making better decisions.
How can firms apply consumer behaviour in their marketing decisions?
Consumer Behaviour can be applied to:
- Developing + Implementing Customer-Oriented Strategy.
- Selecting + Segmenting Target Market.
- Developing Products + Positioning.
- Promotion, Pricing, Distribution Decisions.
How can consumer behaviour help develop/implement customer-oriented strategy?
Consumer behaviour defines each market segment based on:
- How much consumers value offering.
- What are consumers’ currently/potentially (un)fulfilled needs/wants.
- Size, growth, profitability of each segment.
Thus allows firms to develop existing/new offerings to best satisfy most attractive consumer segments.
How can consumer behaviour help develop offerings?
- Consumers may (in)directly offer suggestions for developed/new offerings.
- Behaviour suggests how offering should be branded & designed.
How can consumer behaviour help develop positioning, promoting, communication strategies?
Consumer Behaviour:
- Shows consumers’ view of brand image & of their competitors.
- Suggests what objectives/priorities wrt marketing offering.
- Suggests consumers’ expectations & how to fulfill them.
- Suggests how offerings should be (re)positioned.
- Suggests what marketing tools to use, how/where/when/who they should market (to), & whether they were effective.
How can consumer behaviour help develop pricing strategies?
Consumer Behaviour suggests:
- What price should be charged.
- Consumers’ sensitivity to price & price changes.
- What price tactics to use.
How can consumer behaviour help develop distribution decisions?
Consumer Behaviour suggests:
- Where/when target consumers likely to shop.
- What consumers want to see in stores & desigining stores accordingly.
Define Marketing
Marketing: Activity, institutions, processes for creating, communicating, delivering, exchanging offerings w/ value for indivs, groups, society.
Define Social Marketers
Social Marketers: Aim to market P/S/ideas to affect (+) social change
(not for profit).
