Understanding markets and consumers Flashcards
Sustainable consumption definitions
1) consumer behaviour
2) sustainable consumption
1) consumer behaviour - the activities and experiences of people engaged in buying, using, and disposing of goods and services.
2) sustainable consumption - the use of goods and services that meets people’s current needs without compromising the ability of other people to meet their needs, either now or in the future.
Consumer engagement in marketing processes, definitions:
1) co-marketers
2) brand communities
3) co-producers
4) word of mouth
1) co-marketers: partners in the marketing process; in the case for consumers, those who willingly attempt to persuade other consumers to try to adopt a product or a brand.
2) brand communities: socially constructed networks of people based on their devotion to a brand and what it represents.
3) co-producers: partners in the production process; in the case of consumers, those who undertake value-creation tasks traditionally performed by members of the marketing channel.
4) word of mouth: people sharing their stories, opinions or experiences about a product in a way that motivates others to also consider or try the product.
Mallows hierarchy of needs (5)
1) subsistence or survival
2) safety
3) belonging
4) esteem
5) self actualisation
1) subsistence or survival (1 + 3 examples)
- not only do we recognise the need for food and clean water, but we also recognise the need to sustain the social and environmental systems that provide them.
- food, shelter, clothing.
2) safety (2 + 2 examples)
- requires secure shelter and transportation. However, in the long term, shelter and transport that contribute heavily to greenhouse gases may actually counter our safety.
- an increasing awareness of the reality and consequences of climate change can influence how we understand and assess our safety needs.
- home security products, house and contents insurance.
3) belonging (2+3 examples)
- the human need for social recognition and being part of a social group or system is fundamental to human well-being. It may be the forces of globalisation are expanding our sense of community.
- as we recognise our shared humanity with people around the globe and future generations, out desire for environmentally and socially sustainable products and practices is bound to increase.
- dating and match-making services; chat-lines; clubs and membership societies.
4) esteem (1+3 examples)
- people need to feel valued, to feel like we matter, like we can make a difference somewhere. Esteem is equated with status displayed as the conspicuous consumption of resources.
- cars, cosmetics, fashion clothes.
5) self-actualisation (2+2 examples)
- always been understood in non material terms. It is more about the qualities of a human being, rather than the quantities or quality of what the human consumes.
- self actualisation occurs when we bring our efforts, accomplishments and personal growth in line with our deepest values.
- tertiary education; self improvement.
Consumer decision processes
- definition
- 5 steps
- Definition: the string of mental processes involved in purchasing, using, and disposing of a product.
1) need recognition
2) information search
3) evaluation of alternatives
4) purchase decision process
5) post-purchase behaviours.
Definitions + example
1) need recognition
2) information search
1) need recognition - the onset of awareness of a need or a goal. E.g. Increase in fuel prices, consumers recognise the need for alternatives to fuel consuming vehicles.
2) information search - the active pursuit of information regarding any aspect of a potential purchase. Can come from any source - internal and external. E.g. Ethically driven consumers may turn to special directories, such as Co-op, Americans online national green pages.
Definitions + example
3) evaluation of alternatives
4) purchase decision process
3) evaluation of alternatives - the mental weighing of potential costs and benefits associated with one or more products being considered for purchase. E.g. A consumer who priorities sustainability may choose a cleaner who uses seventh generation.
4) purchase decision process - all the decisions necessary to complete a transaction. E.g. Choosing to use reusable bags.
Definitions
5) post purchase activities (+ 2 sub definitions)
5) post purchase behaviours - involves both product usage behaviours and disposition or disposal behaviours.
> product usage - all the behaviours associated with a consumers use of a product after it is purchased but before it is used up or discarded.
> disposition behaviours - all the behaviours associated with a product once a consumer no longer uses it.
E.g. More sustainable product usage may be turning down thermostats or combining trips for greater efficacy
Consumer purchase involvement -3
1) extensive problem solving
2) limited problem solving
3) routine purchasing
Extensive problem solving
- definition
- 3 points
- 3 examples
- an extended or intensified information search and evaluation of purchase alternatives, generally to reduce the perceived risk associated with a purchase.
- the goods are typically high involvement, expensive, infrequently bought.
- there is considerable amount of risk involved.
- often first time purchases.
- E.g. Property, vehicles, jewellery.
Limited problem solving
- definition
- 3 points
- 2 examples
- selective or minimal external information search and evaluation, generally associated with low risk purchases.
- the goods are typically low involvement, moderately priced, frequently bought.
- there is a lesser amount of risk involved.
- these are generally recurring purchases.
- E.g. A laptop replacing a desktop, a second TV for the home.
