Midterm exam 2 Flashcards
Factors influencing consumer behavior
- Cultural: Culture, Subculture, Social class.
- Social: Reference groups, Family, Roles and Status.
- Personal: Age, Occupation, economic situation, Lifestyle, Personality and Self-concept.
- Psychological: Motivation, Perception, Learning, Beliefs and attitudes.
Cultural factors
- Culture: is the learned values, perceptions, wants and behaviors from family and other important institutions.
- Subculture: is the way of life of a group within a society, which are different from others.
- Social class: is society’ ordered divisions whose members share similar values, interests and behaviors. Measured by combination of occupation, income, education, wealth, etc.
Social factors
Reference groups: are groups that form a comparison or reference in forming attitudes or behavior.
The buyer decision process
- Need recognition: buyer recognize a problem
- Info search: sources of info (personal, commercial, public, experiential sources)
- Evaluation of alternatives: how buyer processes info to arrive at brand choices
- Purchase decision: act of buying the most preferred brand
- Post-purchase decision: satisfaction or dissatisfaction towards purchase.
4 Types of buying decision behavior
- Complex buying behavior: highly motivated in a purchase and perceive significant differences among brands. eg. Product is expensive or risky.
- Dissonance reducing buying behavior: High involv, few differences between brand. Consumer avoid negative info about the brand purchased.
- Variety-seeking buying behavior: Low involv, significant brand differences. Low brand loyalty.
- Habitual buying behavior: eg. bread. Low involv, little significant brand difference.
Diffusion of innovation theory: Individual differences in innovation
Innovators: willing to take risks, have highest social status and financial liquidity
Early adopters: opinion leaders, adopt new ideas early but cautiously.
Early majority: deliberate and adopt new ideas before the average person.
Late majority: skeptical, adopt new ideas only after he majority of people have tried it.
Laggards: suspicious, adopt ideas only when they become tradition.
Positioning strategy
- Price positioning strategy: Low-price (convice consumers that they are receiving more value for their money); High price (convince consumers they are receiving superior quality for a worth price)
- Quality positioning strategy: using exceptional parts and materials, and committing minimal defects.
- Restricted distribution strategy: only available at certain stores at high prices.
- Benefit positioning strategy: highlight benefits of product or service to the customer.
- Problem and solution positioning: present brand as solution to customers problems. eg. Banks, insurance.
- Competitor positioning strategy: demostrate superiority amonst competition. eg. Galaxy vs iPhone.
Marketing mix
- Product: three levels (Augmented, actual, core product)
- Price:
- –Price penetration (stimulate market and sales growth by offering products at low prices)
- –Price skimming (setting high price for a new product and the reducing its price, eg. Playstation)
- Promotion: Advertising Strategy guides
- Place
Advertising Strategy guides: FCB Grid Model
Informative: High involv., Thinking. Learn-Feel-Do.
Affective: High involv., Feeling. Feel-Learn-Do
Habit Forming: Low invol, Thinking. Do-Learn-Feel
Self-Satisfaction: Low invol., Feeling. Do-Feel-Learn
Advertising Strategy guides: ROI Model
Relevance: the message was important and gave me good reasons to buy the product.
Originality: ads are similar to others
Impact: I got high emotionally involved in this ad.
Advertising Strategy guides: Standardization vs Adaptation
Standarization:
- Pro: Economies of scale in production, Consistent image, simplification of ad control.
- Contra: Cultural differences, regulations
Adaptation:
- Pro: greater levels of customer satisfaction, minimize negative impacts of cultural issues.
- Contra: High costs, slow implementation of marketing strategy, inconsistency of brand image
Ad creative Strategy
- Generic message strategies (focus on selling the category rather than the specific brand)
- Pre-emptive messages: be the first to make a claim about ur product.
- Unique selling proposition: something unique about your product that other do not offer.
What is digital media?
- devices, which store digitized info.
- digital interfaces and platforms connecting human users to info and content.
Traditional media vs Digital media
Traditional media:
- every medium has a specific function
- heavy users of some are light users of others
- content travel with limited disruption
- media attributes based on functional benefits
Digital media:
- media are becoming similar.
- media collaborate each other.
- content become more valuable than the media, themselves.
- media attributes based on emotional connections.
Types of digital advertising
- Native ads: Paid content, must provide the kind of info that the publication’s audience typically expects.
- Search engines ads: involves the promotion of websites by increasing their visibility in search engine results pages.
- Social media ads: allows reach, spread, exchange, record and track info at any moment.