MKT 365 Midterm

chronological age

"real" age. observable and uniform.

cultural influence

-by way of its values, norms, and traditions -social classes and subcultures create differing self-concepts and lifestyles -specific groups within social classes such as reference groups and households also influence self-concepts and lifestyles.

Overall Model Of Consumer Behavior: self-concept and lifestyle.

-heart of the consumer behavior model -how we think and feel about ourselves -how we choose to live determines most of our needs and desires which drive our purchase decisions

green marketing

1. Producing products whose production, use, or disposition is less harmful to the environment than the traditional versions of the product; 2. developing products that have a positive impact on the environment; or 3. tying the purchase of a product to an environmental organization or event.

Consumption subcultures are important to marketers because

1. the groups often require products to perform the activities on which they are based and to signal membership and status, 2. these products sometimes become appropriated by the mass market, and 3. the consumption of some products can become part of the consumption ritual for other products or for specific situations.

The degree of conformity to group norms is a function of:

1. the visibility of the usage situation, 2. the level of commitment the individual feels to the group, 3. the relevance of the behavior to the functioning of the group, 4. the individual's confidence in his or her own judgment in the area, and 5. the necessity/non-necessity nature of the product.

primary groups

Groups that have frequent personal contact

consumer behavior applications

Marketing strategy (usable information), Regulatory policy (cost/benefit), social marketing (positive impact on society), and informed individuals (more effective consumption, setting limits)

6 generations

Pre-Depression, Depression, Baby Boom, Generation X, Generation Y, and Millennials.

American environmental oriented values

Values that affect our relationship to our environment have become somewhat more performance oriented and slightly less oriented toward change strong and growing value placed on protecting the natural environment and we increasingly value risk taking.

age cohort/generation

a group of persons who have experienced a common social, political, historical, and economic environment

consumption subculture

a group that self-selects on the basis of a shared commitment to a particular product or consumption activity. also have: 1. an identifiable, hierarchical social structure, 2. a set of shared beliefs or values, and 3. unique jargon, rituals, and modes of symbolic expression

reference group

a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior

opinion leader

a more knowledgeable group member. especially when group has high level of purchase involvement and a low level of product knowledge (communications is especially important here) sought out for information, and they also volunteer information

brand community

a non-geographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm can add value to the ownership of the product and build intense loyalty seem most relevant for high-involvement, activity based products and for brands with a degree of uniqueness. (ex. jeep)

subculture

a segment of a larger culture whose members share distinguishing patterns of behavior. An array of ethnic, nationality, religious, and regional subcultures characterize American society provides marketers with the opportunity to develop unique marketing programs to match the unique needs of each

achieved role

acquired based on performance over which an individual does have some degree of control.

perception

acquiring and assigning meaning to stimuli

gender roles

ascribed roles based on the sex of the individual rather than on characteristics the individual can control. particularly female roles have undergone radical changes in the past 25 years. Virtually all aspects of our society, including marketing activities, have been affected by this shift.

media strategy

because media exposure is selective

norms

boundaries for individual behavior derived from cultural values

Retailers

can enhance their operations by viewing their outlets as information environments

individual factors

characteristics of the individual, such as interests and needs. moderated by the situation in which it occurs

community

characterized by consciousness of kind, shared rituals and traditions, and a sense of moral responsibility.

cultural values

classified into three categories: other, environment, and self.

family household

consists of two or more related persons living together in a dwelling unit primary mechanism whereby cultural and social-class values and behavior patterns are passed on to the next generation

consumers

continually evolving and changing as they process new information related to their lifestyles and the outcomes of past purchase decisions

Overall Model Of Consumer Behavior: External Influences

culture, subculture, demographics, social status, reference groups, family, marketing activities

Program involvement

degree of interest the consumer has in the program or magazine in which the advertisement is embedded, is a situational factor of particular interest to marketers

Nonfamily households

dwelling units occupied by one or more unrelated individuals

Identification influence

exists when an individual identifies with the group norms as a part of his or her self-concept and identity.

Norms

general expectations about behaviors that are deemed appropriate for all persons in a social context, regardless of the position they hold arise quickly and naturally in any group situation

secondary groups

groups with limited interpersonal contact

Normative influence

happens when an individual conforms to group expectations to gain approval or avoid disapproval

demographics

include a population's size, distribution, and structure. not static.

Individual characteristics

include motivation, emotion, and personality features

group

includes two or more individuals who share a set of norms, values, or beliefs and have certain implicit or explicit relationships such that their behaviors are interdependent Some groups require membership; others (e.g., aspiration groups) do not. The nature of contact is based on the degree of interpersonal contact

population structure

income, education, and occupation makeup

Cognitive interpretation

involves a process whereby new stimuli are placed into existing categories of meaning.

consumer decision process

involves some or all of the following steps, depending on the level of purchase involvement: -problem recognition, information search, alternative evaluation, outlet selection, decision implementation, and postpurchase processes -consumers form desires and needs that arise in the situations they encounter because of lifestyle preferences

cognitive age

is how hold a person feels. Many older consumers feel 10 to 15 years younger than their chronological age.

American self oriented values

less emphasis on hard work as an end in itself and on sensual gratification, more content to delay our rewards than in the recent past, remains a relatively secular (nonreligous) culture

present population growth

moderate: average age is increasing, southern and western regions are growing, and the workforce contains more women and white-collar workers than ever before

Asian Americans

most diverse of the major ethnic subcultures characterized by a variety of nationalities, languages, and religions. Asian Americans are best approached as a number of nationality subcultures rather than as a single group

consumer behavior

multi-dimensional process, Need to collect information, Involves ethical issues and trade-offs (e.g., health issues)

exposure

occurs when a stimulus comes within range of one of our primary sensory receptors. Can be voluntary (infomercials) or selective (muting the tv during commercials)

Informational influence

occurs when individuals simply acquire information shared by group members

Attention

occurs when the stimulus activates one or more of the sensory receptors, and the resulting sensations go into the brain for processing

Overall Model Of Consumer Behavior: Internal Influences

perception, learning, memory, motives, personality, emotions, attitudes

stimulus factors

physical characteristics of the stimulus itself, such as contrast, size, intensity, color, movement, position, isolation, format, and information quantity. moderated by the situation in which it occurs

Environment-oriented values

prescribe a society's relationships with its economic, technical, and physical environments includes cleanliness, performance/status, tradition/change, risk taking/security, problem solving/fatalistic, and nature

roles

prescribed patterns of behavior expected of a person in a situation

Overall Model Of Consumer Behavior: Decision Process

problem recognition, information search, alternative evaluation and selection, outlet selection and purchase, postpurchase processes

Other-oriented values

reflect a society's view of the appropriate relationships between individuals and groups within that society. includes individual/collective, extended/limited family, diversity/uniformity, masculine/feminine, competitive/cooperative, and youth/age

Self-oriented values

reflect the objectives and approaches to life that individual members of society find desirable. includes active/passive, material/nonmaterial, hard work/leisure, postponed gratification/immediate gratification, sensual gratification/ abstinence, and religious/secular

American other oriented values

remain individualistic, have substantially less of a masculine orientation now than in the past, place a greater value on older persons and diversity

brand names

selected based upon the meaning that consumers assign to words and parts of words

Native Americans, Asian Indian Americans, and Arab-Americans

smaller but important shares enough common values and behaviors to be approached as a single segment for at least some products. Geographic concentration and specialized media allow targeted marketing campaigns

Individual development

takes place through perception, learning, memory, and the formation of attitudes.

Interpretation

the assignment of meaning to sensations

household

the basic purchasing and consuming unit

household life cycle (HLC)

the classification of the household into stages through which it passes over time based on the age and marital status of the adults and the presence and age of children. members within each stage or category face similar consumption problems, so they represent potential market segments

Culture

the complex whole that includes knowledge, beliefs, art, law, morals, customs, and any other capabilities acquired by humans as members of society -includes almost everything that influences an individual's thought processes and behaviors.

Attraction

the degree of positive or negative desirability the group has to the individual

Affective interpretation

the emotional or feeling response triggered by the stimulus.

social class system

the hierarchical division of a society into relatively permanent and homogeneous groups with respect to attitudes, values, and lifestyles Education, occupation, income, and, to a lesser extent, type of residence are important status dimensions in this country

Cohort analysis

the process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors

Ethnic subcultures

those whose members' unique shared behaviors are based on a common racial, language, or nationality background

African-Americans

tied with Hispanics as the largest non-European ethnic group on average, younger and poorer than the general population, large diverse group with many segments

Cause-related marketing

ties a company and its products to an issue or cause with the goal to improve sales and corporate image while providing benefits to the cause Companies associate with causes to create long-term relationships with their customers, building corporate and brand equity that should eventually lead to increased sales.

segmentation

typically based on a combination of two or more demographic descriptors

7 categories of american society

upper-upper, lower-upper, upper-middle, middle, working class, upper-lower, and lower-lower

household life cycle/social stratification matrix

use the HLC to develop marketing strategy One axis is the stages in the HLC (which determines the problems the household will likely encounter) and the other is a set of social strata (which provide a range of acceptable solutions) each cell represents a market segment.

Group influence

varies across situations.

Household member participation in the decision

varies by involvement with the specific product, role specialization, personal characteristics, and one's culture and subculture also varies by stage in the decision process most decisions reached by consensus

Hispanics

variety of national backgrounds (Mexico = 66 percent, Puerto Rico = 9 percent, Cuba = 4 percent), the Spanish language, a common religion (Roman Catholic), and national Spanish-language media and entertainment figures have created a somewhat homogeneous Hispanic subculture

Family decision making

who buys, who decides, and who uses complex and involves emotion and interpersonal relations as well as product evaluation and acquisition

values

widely held beliefs that affirm what is desirable. Cultures change when values change, the environment changes, or when dramatic events occur.