week 1 Flashcards
What is consumer behavior?
The study of how individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
What are the three stages of the consumer behavior process?
- Pre-purchase (Identifying needs, searching for information)
- Purchase (Making a decision and buying)
- Post-purchase (Satisfaction, complaints, repeat purchases)
What is market segmentation?
Dividing consumers into groups based on shared characteristics to tailor marketing strategies.
What are the main types of market segmentation?
- Demographic (Age, gender, income, occupation)
- Psychographic (Personality, values, lifestyle)
- Behavioral (Brand loyalty, product usage)
What is the 80/20 rule in marketing?
80% of sales come from 20% of customers.
What is relationship marketing?
A strategy focused on maintaining long-term relationships with consumers through engagement and personalized marketing.
What is database marketing?
Tracking consumer data to create personalized marketing messages and products.
What are the four types of consumer-product relationships?
- Self-concept attachment (Product reflects identity)
- Nostalgic attachment (Product connects to past experiences)
- Interdependence (Product is part of daily routine)
- Love (Emotional bond with a product)
How does popular culture influence consumer behavior?
Through social media, celebrities, trends, and shared cultural events (e.g., Netflix, sports events).
Why do people buy products beyond their function?
Brands convey identity, values, and create social connections.
What are some key global consumer trends?
- Sharing economy (e.g., Uber, Airbnb)
- Authenticity (Trust in brands)
- Value-driven consumption (Ethical shopping)
- Inclusivity (Diverse representation in marketing)
- Social shopping (Purchases via social media)
What is cause-related marketing (CSR)?
When companies support social issues (e.g., eco-friendly campaigns, charity donations).
What is green marketing?
Marketing efforts focused on environmentally friendly products and sustainable business practices.
What are some common ethical concerns in marketing?
- False advertising
- Misleading pricing
- Hidden product risks
What is addictive consumption?
Psychological dependency on products like alcohol, gambling, or technology.
What is compulsive buying?
Shopping as a coping mechanism, sometimes leading to financial issues.
What is retail shrinkage?
Losses from shoplifting and employee theft.
What are some examples of fraudulent retail behavior?
- Wearing an item once and returning it
- Switching price tags for a discount
What is primary research?
Collecting new data directly for a specific research question (e.g., surveys, experiments).
What is secondary research?
Using pre-existing data to analyze consumer behavior.
