Lesson 1 Videos Flashcards
Buyer’s Black Box
The consumer’s mind
Marketing and other stimuli enter the Black Box…
…the Black Box processes the stimuli and proceeded towards the Buyer’s Response step.
Not only do we have to analyze the buyer’s response, we have to try to figure out…
…what’s going in the Buyer’s Black Box.
T/F
Consumer Behavior is one of the most mysterious subjects.
True.
T/F
The consumer is the center of the business universe.
True.
What is consumer behavior?
Activities that people undertake when obtaining, consuming, and disposing of prodcts and services.
A field of study that focuses on consumer activities.
Scope goes beyond the “why” and “how”, but also “consumption analysis.”
Consumption Analysis
Why and how people use products in addition to why & how they buy.
Stimuli External Factors
Marketing Mix: 4 P’s (controllable factors)
Enviornmental: Economic, Technological, Political, Cultural, Demographical, Situational
Black Box Internal Factors
Consumer Characteristics: Beliefs/Attitudes, Values, Knowledge, Motives, Perceptions, Lifestyle (UNcontrollable factors)
Decision Making Process: Problem solving, Information search, Alternate Evaluation, Purchase, Post Puchase, Evaluation
Responses
Purchase: Product, Brand, Source, Amount, Method of Payment
OR
No Purchase
CONSUMER INFLUENCES
Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Motivations Past Experiences Feelings Peer Groups Knowledge
ORGANIZATIONAL INFLUENCES
Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability
OBTAINING
How you decide you want to buy Other products you consider buying Where you buy How you pay for product How you transport product home
DISPOSING
How you get rid of remaining product
How much you throw away after use
If you resell items yourself or through a consignment store
How you recycle some products
CONSUMING
How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations
Why Study Consumer Behavior?
Marketing can be used to influence brand choice and purchase, while Demarketing can influence people to stop harmful consumption.
Consumers are responsible for ___________ of the US’s economy.
70% or more
T/F
“Only the Customer Can Fire Us All”
True.
How Does Consumer Behavior Educate Consumers
About Health?
By understanding consumers’ issues or problems and developing methods to reach and educate consumers.
Personal policy
Includes how you behave towards others and in buying situations, your values and beliefs, and how you live your life.
A person’s economic quality of life is determined by
personal policy.
Consumer Research Methods
In-home observation Shadowing Physiological methods Surveys Focus Groups Longitudinal Studies Experimentation
In-home observation
Examining how and when consumers use and consume products in their households.
Shadowing
Following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors.
Physiological methods
Techniques borrowed from medicine, psychology and other sciences including cameras to measure eye movement, galvanic skin response, MRI, etc.
Surveys
Efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires).
Focus Groups
A group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest.
Longitudinal Studies
Repeated measures of activities of consumers over time to determine changes in opinions, buying, and consumption behaviors over a long period.
Experimentation
Attempts to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables
- Laboratory experiment
- Field experiment
Independent variables might include number of advertisements, coupon denominations, package designs, shelf position, etc.
Dependent variables might include purchase intent or behavior.
The Underlying Principles of Consumer Behavior
The Consumer Is Sovereign
The Consumer Is Global
Consumers Are Different; Consumers Are Alike
The Consumer Has Rights
Consumer Bill of Rights
The right to safety: to be protected against the marketing of products and services that are hazardous to health or to life.
The right to be informed: to be protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts needed to make informed choices.
The right to choose: to have available a variety of products and services at competitive prices.
The right to be heard: to be assured that consumer interests will receive full and sympathetic consideration in making government policy, both through the laws passed by legislatures and through regulations passed by administrative bodies.
The right to education: to have access to programs and information that help consumers make better marketplace decisions.
The right to redress: to work with established mechanisms to have problems corrected and to receive compensation for poor service or for products which do not function properly.
