MRKT Ch. 6 Consumer Behavior and Marketing Strategies

Churning

When a significant number of customers are switching brands

Motive

A driving force that causes a person to take action to satisfy specific needs

Consumer decision-making process

A five-step process used by consumers when buying goods or services

Stimulus generalization

A form of learning that occurs when one response is extended to a second stimulus similar to the first

Evoked set

A group of brands resulting from an information search from which a buyer can choose

Social class

A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

Subculture

A group of people who share elements of the overall culture as well as unique elements of their own group

Aspirational reference group

A group that someone would like to join

Nonaspirational reference groups

A group with which an individual does not want to associate

Social Class

A hierarchical system that categorizes individuals based on various criteria such as occupation, income, education, and wealth.

Stimulus discrimination

A learned ability to differentiate among similar products

Maslow's hierarchy of needs

A method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization

Perceived value

A personal assessment of the net worth obtained from a purchase

Connected self-schema

A perspective whereby a consumer sees himself or herself as an integral part of a group

Separated self-schema

A perspective whereby a consumer sees himself or herself as distinct and separate from others

Learning

A process that creates changes in behavior, immediate or expected, through experience and practice

Selective distortion

A process whereby a consumer changes or distorts information that conflicts with his or her personal beliefs

Selective exposure

A process whereby a consumer notices certain stimuli and ignores others

Selective retention

A process whereby a consumer remembers only that information that supports his or her feelings or beliefs

Non-marketing-controlled information source

A product information source that is not associated with advertising or promotion

Marketing-controlled information source

A product information source that originates with marketers promoting the product

Secondary membership group

A reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group

Primary membership group

A reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers

Nudge

A small intervention that can change a person's behavior

Utilitarian value

A value derived from a product that helps the consumer solve problems and accomplish tasks

Norm

A value or attitude deemed acceptable by a group

Hedonic value

A value that acts as an end in itself rather than as a means to an end

Self-concept

A way of organizing and grouping the consistencies of an individual's reactions to situations

Flexibility in Decision-Making Process

Acknowledges that consumers may not always follow these steps in a linear fashion. They may skip steps, end the process prematurely, or not make a purchase at all.

Reference group

All of the formal and informal groups in society that influence an individual's purchasing behavior

Opinion leaders

An individual who influences the opinions of others

Jilting effect

Anticipation of receiving a highly desirable option only to have it become inaccessible

Stimulus

Any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing

Types of Consumer Buying Decisions

Categorized into routine response behavior, limited decision making, and extensive decision making, influenced by factors like level of consumer involvement and length of time to make a decision.

Consumer Decision-Making Process

Consists of five main steps: need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior.

Postpurchase Behavior

Consumer satisfaction is determined by how well their expectations are met after a purchase, and it includes the jilting effect, data breaches, and cognitive dissonance.

Information Search Process

Consumers seek information both internally and externally after recognizing a need or want, aiming to form a group of preferred alternatives, called the evoked set, from which the consumer makes a final choice.

Evaluation of Alternatives and Purchase

Consumers use information from memory and external sources to develop criteria for evaluating alternatives and making purchase decisions.

Utilitarian Value

Derived from products or services solving problems or accomplishing tasks (e.g., washing machines, eyeglasses).

Consumer Behavior

Describes how consumers make purchase decisions, use, and dispose of goods or services, including factors influencing these decisions.

Individual Differences in Susceptibility to Social Influences

Factors such as gender, age, life-cycle stage, personality, self-concept, and lifestyle play important roles in consumer decision making.

Reference Groups

Formal and informal groups that influence an individual's buying behavior, including direct (primary and secondary) and indirect (aspirational and non-aspirational) reference groups.

Personality

How consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations

Socialization process

How cultural values and norms are passed down to children

Opinion Leaders

Individuals within reference groups or social media groups who exert influence on others' purchasing decisions, often the most influential, informed, plugged-in, and vocal members of society.

Consumer Involvement

Influenced by previous experience, interest, perceived risk, social visibility, and can manifest in various forms like product, situational, shopping, enduring, and emotional involvement.

Cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Gender Differences in Consumer Behavior

Physiological differences between men and women lead to various needs, particularly evident in health and beauty products, and women often make purchase decisions based on how companies portray women in their marketing campaigns.

Hedonic Value

Provides emotional satisfaction and enjoyment, independent of its usefulness (e.g., vacations, spa days).

Value in Purchases

Purchases are driven by perceived value, which is what consumers expect to get compared to what they give up. Value can be tangible (durability, convenience) or intangible (happiness, prestige).

Need recognition

Recognition of an unfulfilled need and a product that will satisfy it

Want

Result of an imbalance between actual and desired states

Involvement

The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

Family Influence on Consumer Behavior

The family strongly influences values, attitudes, self-concept, and buying behavior among consumers, with different family members assuming various roles in the purchase process.

Extensive decision making

The most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information

Showrooming

The practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item

Perception

The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture

Internal information search

The process of recalling information stored in the memory

External information search

The process of seeking information in the outside environment

Culture

The set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next

Routine response behavior

The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time

Limited decision making

The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

Value

The value a consumer expects to obtain from a purchase

Real self-image

The way an individual actually perceives himself or herself

Ideal self-image

The way an individual would like to be perceived