LESSON 3 Flashcards
Given characteristics affecting consumer behavior, design marketing efforts to reach consumers
CONSUMER BEHAVIOR
Consumer purchases are
influenced strongly by cultural,
social, personal, and psychological
characteristic
Factors affecting consumer behavior
Are under cultural factors
Culture, Sub culture, and Social Class
Set of basic values, perceptions, wants, and behaviors learned by a member of society from family and
other important institutions.
CULTURE
A group of people with shared value systems based on common life experiences and situations.
Sub culture
Relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors
Social Class
Are under social factors
Groups and social network
Membership groups
Reference groups
Word-of-mouth influence and buzz marketing
Buzz marketing
Online social communities
Family
Role and Status
Age and Life0cycle stage
Two or more people who interact to accomplish individual or mutual goals
Groups & Social networks
Membership Groups
Direct influence where a person belongs
Reference Groups
Direct or indirect points of comparison or reference
Personal words and recommendations tend to be more credible than commercial sources
Word-of Mouth influence and Buzz marketing
Enlisting or creating opinion leaders to serve as brand ambassadors to spread word about
company products
Buzz Marketing
Blogs, social networking websites, and even virtual worlds – where people socialize or exchange information and opinions
Online Social Communities
Most important consumer buying organization in society – role of husband, wife, and children
Family
A person belongs to many groups – their position in the group can be defined as a role or status.
Role & Status
People change goods/services
bought over lifetime – tastes are often age related.
Age & life cycle stage
Are under personal factors
Occupation, Economic Situation,
Lifestyle, Personality
this affects the products and services bought.
Occupation
Trends in personal income, savings,
and interest rates affect marketing decisions
Economic Situation
A person’s pattern of living as expressed in his/her activities, interests, and opinions.
Lifestyle
refers to the unique psychological
characteristics that distinguish a person or group
Personality
are under Psychological factors
Perception, Belief, Attitudes
Process by which people select,
organize, and interpret info to form a meaningful picture of the word.
Perception
A descriptive thought that a person has about something
Belief
Relatively consistent favorable or
unfavorable evaluations, feelings, and tendencies toward an object or idea
Attitudes
is one who tries new
products before most other consumers.
Early Adoptors
They provide feedback to the vendor and help them to refine the product features, design, distribution, and support.
Early Adoptors
can also be viewed as a
form of testing in the early stages of the product’s life cycle.
Early Adoption
Year the iPhone was launched
2007
First pricing of iPhone
$600
The importance of ___________ is crucial to the diffusion of innovation because they can discover and address issues with novel goods and services before their widespread adoption.
Early Adopters
Pillars of Early Adopters
- Risk Tolerance
- Innovativeness
- Social Influence
Why do early adopters matter in businesses or startup?
- Faster feedback
- Help to create buzz
- Validation
They can offer insightful criticism on
how it might be enhanced. This
feedback is invaluable for
businesses, aiding them in
addressing issues with their
offerings before public release
Valuable Feedback
Early adopters often share their
firsthand experiences with novel
products and services within their
circles, fostering organic growth for
your business or startup by
generating interest and awareness.
Help to create buzz
Their readiness to commit time and
money shows prospective investors,
business
Validation
People frequently spread their
enthusiasm for a good product or
service when they have used it
successfully.
Word-of-mouth marketing
Strategies for creating a community of early adopters
- Identify the target audience
- Set up a sense of urgency
- Make the experience your own
- Provide Value
Marketing and outreach
activities is customized to the
target demographic
Identify the target audience
Being ahead of the curve is a
common driving force for
early adopters.
Set up a sense of urgency
offer time-limited discounts,
priority access, or other
special advantages to elicit a
sense of urgency.
Set up a sense of urgency
- Early adopters seek
exclusivity. - Offer them special material,
discounts, or invitations to
events to personalize their
experience.
Make the experience your own
Early adopters are open to
taking chances with
innovative products, but they
also hope for something in
return.
Provide Value
For the scope of product development,
____ can either be the risk of not
meeting performance requirements or
not being able to deliver a certain
product
Risk
can be described as “the possibility
of suffering harm or loss due to an
undesirable even
Risk
generally has the aim
of identifying and managing risk in
order to be able to deal with it when it
occurs through for example
eliminating, minimizing or controlling
the risk
Risk Management
Risk categories in the NPD process
Technical risk
Market risk
Commercial Risk
Organizational Risk
an intrinsic risk and can entail a number of sub-sections such as the design of the product, manufacturing technology and intellectual property
Technical Risk/ Technological risk
One of the main risk here for example lies with the product not meeting safety and performance requirements in the end after the development process
Technical Risk
can include factors such as
consumer acceptance and marketing risks, competitor risks and the risks of substitution in the market the firm is competing in.
Market risk
Main risks include low acceptance or even rejection of the product in the market or being outperformed by a competitor
Market risk
is concerned with
the extent to which a product, or
rather a product idea, would be
financially feasible for the firm
developing the product.
Commercial risk
It includes factors such as the
communication within the firm while
striving for the realization of the product as well as the idea acceptance of the new product of different parties of the com
Organizational risk
TRUE OR FALSE
Launching a new product
is an exciting but
challenging process that
involves many risks and
uncertainties
True
Ways to managing the risks and uncertainties
- Identify and prioritize the risks
- Validate your value proposition and differentiation
- Plan and execute a lean launch
- Monitor and measure the results
- Anticipate and respond the changes
- Identify and prioritize the potential risks that could affect your product
development, launch, and performance. - Assess the impact of each risk and rank
them accordingly. - Then, focus on the most critical and
probable risks and devise strategies to
mitigate or avoid them.
Identify and prioritize the risks
provides a very
simple answer to the question: Why should someone buy what you are offering?
Value proposition
Use feedback and data to refine your
product and marketing messages and
align them with your customer segments and personas.
Validate you value proposition and differentiation
a launch that minimizes
the resources and time spent on
launching a new product and maximizes the learning and validation from the market.
A Lean Launch
There is a need to monitor and measure the results to evaluate the performance and outcomes of your launch.
Monitor and measure the results
By doing this, you can identify the strengths and weaknesses of your launch, learn from your
mistakes and successes, and make
informed decisions and actions to optimize your product and marketing strategies.
Monitor and measure the results
These changes could include customer
feedback, market trends, competitor
actions, regulatory updates, or technological innovations.
Anticipate and respond to changes
By doing this, you can enhance your product’s value and
relevance and maintain your competitive edge in the market.
Anticipate and respond the changes
