buying using and disposing ch 10

Timestyle

how you spend your time resource

Occupational prestige

•we define people by what they do for a living

Standards of behavior

●● Standards of behavior: Rules that specify what members can and can't do on the site. Some of these rules are spelled out explicitly (e.g., if you buy an item on eBay, you agree that you have entered into a legal contract to pay for it), but many of them are unspoken. A simple example is discouragement of the practice of flaming when a POST CONTAINS ALL CAPITAL LETTERS TO EXPRESS ANGER.

Hispanics

-Brand loyal -The segment is relatively easy to find with more than 50% living in the major metropolitan areas of Los Angeles, New York, Miami, San Antonio, San Francisco, and Chicago. However, among many Hispanics, there is a relatively low level of acculturation.

Ch 10 Objectives

1.Many factors at the time of purchase dramatically influence the consumer decision-making process. 2.The information a store's layout, Web site, or salespeople provides strongly influences a purchase decision. 3.The growth of a "sharing economy" changes how many consumers think about buying rather than renting products. 4.Our decisions about how to dispose of a products are as important as how we decide to obtain it in the first place.

Ch 11 Chapter Objectives

1.Other people and groups, especially those that possess social power, influence our decisions. 2.Word-of-mouth communication is the most important driver of product choice. 3.Opinion leaders' recommendations are more influential than others when we decide what to buy. 4.Social media changes the way we learn about and select products

Member contributions

: A healthy proportion of users need to contribute content. If not, the site will fail to offer fresh material and ultimately traffic will slow. Participation can be a challenge, though. Remember the 80/20 rule we discussed way back in Chapter 1? It applies to online consumption as well. The fact is that most members of an online community are lurkers. That's kind of a creepy term, but it just means they absorb content that others post rather than contributing their own. Researchers estimate that only 1 percent of a typical community's users regularly participate, and another nine percent do so only intermittently. The remaining 90 percent just observe what's on the site. Although they don't contribute content, they do offer value to advertisers that simply want to reach large numbers of people. But what happens when we want to engage consumers more actively? How can a site convert lurkers into active users? The easier it is to participate, the more likely it is that the community can generate activity among a larger proportion of visitors. In part, this means ensuring that there are several ways to participate that vary in ease of use. Facebook is an example of an online community that has figured out how to offer several forms of participation. Members can post status updates (easy), make comments, upload pictures, share notes and links, play social games, answer quizzes, decorate their profiles, upload videos, and create events (a bit harder), among other forms of participation.

worldview

A worldview is another way to differentiate among social classes. To generalize, the world of the working class (i.e., the lower-middle class) is more intimate and constricted. For example, working-class men are likely to name local sports figures as heroes and are less likely to take long vacation trips to out-of-the-way places.

Acculturation

Acculturation is the process of movement and adaptation to one country's cultural environment by a person from another country. Acculturation agents are the influences in our environment which affect the process of transitioning from one culture to another that contains components of both the old and new culture. These agents are family and friends, as well as organizations like churches, and even the media. The agents may be from the culture of origin or from the culture of immigration.

african-americans

African Americans represent a significant racial subculture, making up about 12.3% of the U.S. population in the last census. Although African Americans differ in some important ways, they may not be very different from white consumers. With a few exceptions, both groups have the same overall spending patterns. They allocate about two-thirds of their incomes to housing, transportation, and food.

Opinion Leader

An opinion leader is someone who is frequently able to influence others' attitudes and/or behaviors. Opinion leaders possess the social power we talked about earlier in the text.

Communicating product benefits via codes

Another approach to social class focuses on codes, the ways consumers express and interpret meanings. Restricted codes focus on the content of objects, rather than on the relationships among objects. Elaborated codes are more complex.

Savings rate/consumer confidence

Behavioral economics is also called economic psychology. It is the study of the human side of economic decisions. Consumers' beliefs about what the future holds are an indicator of consumer confidence. Consumer confidence is a measure of how optimistic or pessimistic people are about the future health of the economy and how they predict they'll fare down the road. When people are optimistic about the future, they tend to reduce their savings rate. In addition, world events and culture affect overall savings rates.

Brand Prominence

Brand prominence: quiet versus loud brand signals.

Cosmopolitanism

Cosmopolitanism is an aspect of worldview that is starting to receive more attention by consumer behavior researchers, who define a cosmopolitan as someone who tries to be open to the world and who strives for diverse experiences (not to be confused with the popular cocktail).

Discretionary Income

Discretionary income is the money available to a household over and above what it requires to have a comfortable standard of living.

Product Disposal / Underground Economy

During lateral cycling, one consumer exchanges something he or she owns for something the other person owns. The underground economy in the form of flea markets and other used-product sales formats is a significant element in the U.S. market. The new trend of recommerce (a play on the term e-commerce) shows that many consumers want to squeeze more value out of their possessions by selling or trading Them. This focus has given birth to the swishing movement, where people organize parties to exchange clothing or other personal possessions with others.

Ecology/social structure/ideology in a cultural system

Ecology refers to the way a system adapts to its habitat. The technology a culture uses to obtain and distribute resources shapes its ecology. Social structure refers to the way people maintain an orderly social life. This includes the domestic and political groups that dominate the culture. Ideology refers to the mental characteristics of a people and the way they relate to their environment and social groups. This relates to the idea of a common worldview. Members of a culture tend to share ideas about principles of order and fairness.

Family Life Cycle

Factors that determine how couples spend money: •Whether they have children •Whether both spouses work • Family life cycle (FLC) concept combines trends in income and family composition with change in demands placed on income.

Shopping Experience

Focus groups, in which a small set of consumers comes into a facility to try a new item while company personnel observe them from behind a mirror. Total quality management (TQM) is a complex set of management and engineering procedures that aims to reduce errors and increase quality. Gemba, which to the Japanese means "the one true source of information." - the place where consumers use the product or service. *GEMBA BETTER THAN FOCUS GROUP BC ITS REAL AND LIVE

How does emotion affect our purchases?

For instance, Yankelovich Partners found that buying a car is the most anxiety-provoking retail experience for consumers.

Family Life Cycle Variables

Four variables are used to describe the changes a family undergoes: age, marital status, whether children are in the home, and the ages of children in the home. --We also have to consider any couple as a household whether or not they are a traditional husband and wife.

Islamic Marketing

Importantly, muslims will be more than 25% of the Earth's population by 2030. Marketing to muslims will require a special attentiveness to religious influences.

Gen Y

Generation Y also goes by the labels of Millennials and Echo Boomers. They were born between 1984 and 2002. They may grow up in nontraditional families. Members of Gen Y are jugglers who value being footloose and connected to their "peeps." Saatchi & Saatchi label this new kind of lifestyle 'connexity.' These Millennials are the first generation to grow up with computers at home. They are multitaskers. They truly are digital natives. They use texting and video and create user-generated content.

The context of culture

High-Context Infer meanings that go beyond the spoken word Low-Context More literal

Homophily

Homophily refers to the degree to which a pair of individuals is similar in terms of education, social status, and beliefs.

Influence impressions

In advertising lingo, an impression refers to a view or an exposure to an advertising message. Forrester estimates that, each year, U.S. consumers generate 256 billion INFLUENCE IMPRESSIONS as people talk about their lives with each other, telling stories and experiences that invariably include brands.96 These influence impressions are primarily delivered by—you guessed it—power users: Only 6.2 percent of social media users are responsible for about 80 percent of these brand mentions. Forrester calls these influencers mass connectors.

Affluenza

Many well-off consumers seem to be stressed or unhappy despite or even because of their wealth, a condition some call affluenza.

Consumer identity derives from "we" as well as "I".

Maria, who is pictured in the slide, lives in Los Angeles, not Mexico City, as you might have guessed. More than one in four Californians are Hispanic and overall the state has more nonwhite than white residents. Maria is an example of how people can build their self identity on the basis of many subcultures. We will cover several of these subcultures in this chapter.

Market Mavens

Market mavens are actively involved in transmitting marketplace information of all types Into shopping and aware of what's happening in the marketplace Overall knowledge of how and where to get products. Researchers use a scale to identify market mavens. The scale includes items like "I like introducing new brands and products to my friends."

Nielsen's PRIZM

Marketers use systems like Nielsen's PRIZM to identify the clusters of people who are also grouped by zip code.

Marketing to Hispanics

Marketing to the Hispanic consumer (that is difficult to reach and highly fragmented) •Suggestion: "Try to find commonalities" •As an example, at a Pampers promo event in Miami had an orchestra playing Latin America children's songs (vs "Slapping a mariachi band or chips and salsa in an ad")

2 Most Important Components of Social Class

Occupational prestige •Is stable over time and similar across cultures •Single best indicator of social class Income •Wealth not distributed evenly across classes (top fifth controls 75% of all assets) •How money is spent is more influential on class than income

Mass Connectors

Online opinion leaders - Influence is more widespread and about 6% of social media users are responsible for 80% of brand mentions (Mass Connectors).

Postpurchase Satisfaction

Our overall reactions to a product after we've bought it—what re-searchers call consumer satisfaction/dissatisfaction (CS/D)— obviously play a big role in our future behavior. According to the expectancy disconfirmation model, we form beliefs about product performance based on our prior experience with the product or communications about the product that imply a certain level of quality.

Perceived Age

Perceived age is how old a person feels and is a better yardstick of age than how old a person is biologically. Researchers measure age by feel-age (how old one feels) and look-age (how old a person looks). Marketers may need to emphasize product benefits rather than age-appropriateness in marketing campaigns for older adults because the older we get, the younger we feel relative to our actual age.

Social Stratification

Those processes by which scarce and valuable resources are distributed unequally to status positions that become more or less permanently ranked in terms of the share of valuable resources each receives.

Power users

Power users have a strong communications network that gives them the ability to affect purchase decisions for a number of other consumers, directly and indirectly.

Degree of connectedness

Powerful groups are cohesive; this means the members identify strongly with them and are highly motivated to stay connected. Online groups may be even more cohesive than physical groups, even though many of the members will never meet one another in person. For example, compared to the "six degrees of separation" norm we discussed, researchers estimate that Facebook's members on average have only four degrees of separation from each other. Although some users have designated only one friend and others have thousands, the median is about 100 friends.

Deethnicization

Products that companies market for one ethnic group sometimes gain appeal with others outside the subculture. -Occurs when a product we link to a specific ethnic group detaches itself from its roots and appeals to other groups. -Tortillas And Salsa Are Outselling Burger Buns And Ketchup In The US

Social powers: (capacity to alter the actions of others)

Referent Power- Admire a quality of a person or a group (celebrity endorsements) Information power exists when someone knows something others would like to know (magazine editors). Legitimate power is granted through true authority in a situation. For instance, police officers have legitimate power. Expert power accrues to a person who is an expert in a particular field. Due to their expertise, others will be influenced by them. Reward power refers to the influence held by a person who has the ability to offer a reward. Coercive power is the opposite of reward power. It is held by someone who has the ability to punish

Information cascades

Research has shown that this might not be the case. Instead, influentials share the information with those who are easily influenced and then those people continue to talk among themselves, resulting in information cascades.

Retailing as Theatre

Retail environments are important for attracting shoppers and keeping them in the stores. Innovative merchants use four kinds of theming techniques: Landscape themes rely on associations with images of nature, animals, and the physical body. Bass Pro Shops is an example of a landscape theme. Marketscape themes build on associations with man-made places. The Venetian Hotel in Las Vegas is an example of a marketscape. Cyberspace themes build on information and communications technology. eBay uses this approach. Mindscape themes draw on abstract ideas and concepts, fantasy, and often possess spiritual overtones. Day spas might reflect a spiritual theme. EPIC, hogwarts.

social identity theory minimal group paradigm

Social identity theory argues that each of us has several "selves" that relate to groups. Minimal group paradigm, researchers show that even when they arbitrarily assign subjects to one group or another, people favor those who wind up in the same group.

Avoidance Groups and Antibrand Communities

Sometimes we deliberately do the opposite if we want to distance ourselves from avoidance groups. Antibrand communities are those that coalesce around a brand but they are united by a disdain for the brand. Many brands have been targeted by antibrand communities including Dunkin' Donuts, Rachael Ray, and Starbucks.

Surrogate consumer

Surrogate consumer: a marketing intermediary hired to provide input into purchase decisions. •Interior decorators, stockbrokers, professional shoppers, college consultants •Consumer relinquishes control over decision-making functions Marketers should not overlook influence of surrogates!

Generational Categories

The Interbellum generation describes those who are born at the beginning of the 20th century. The Silent Generation describes those who were born between the two World Wars. The War Baby Generation was born during World War II. The Baby Boom Generation was born between 1946 and 1964. Generation X was born between 1965 and 1985. Generation Y was born between 1986 and 2002. Generation Z was born 2003 and later.

Gray market

The United Nations says that people older than 60 are the fastest-growing age group on earth. We call this group the gray market. Older adults control more than 50% of discretionary income.

Baby Boomers

The baby boomer cohort consists of people whose parents established families following the end of World War II and during the 1950s when the peacetime economy was strong and stable. In addition to the direct demand for products and services this group creates, these consumers have also fostered a new baby boom of their own to keep marketers busy in the future. Because it wasn't as big as the first, we call it a baby boomlet.

A reference group

The biker group is a reference group. A reference group is an actual or imaginary individual or group conceived of as having significant relevance upon an individual's evaluations, aspirations, or behavior.

Family Unit and Age Subcultures

The extended family used to be the most common family unit. It consists of three generations who live together, and it often includes grandparents, aunts, uncles, and cousins. Like the Cleavers of Leave It to Beaver and other TV families of the 1950s, the nuclear family—a mother, a father, and one or more children (perhaps with a sheepdog thrown in for good measure)—largely replaced the extended family, at least in U.S. society The percentage of women of childbearing age who define themselves as voluntarily childless is on the rise. So-called DINKS (double income, no kids) couples are better educated on average than are two-income couples with children. Children are more likely to live at home after graduating from college rather than taking their own places, they are called boomerang kids- you throw them out and they keep coming back. Some label middle-aged people the Sandwich Generation because they must support both the generation above them and the one below them.

Two step flow model of influence

The original framework describing opinion leadership is known as the two step flow model of influence. It proposes that a small number of influencers disseminate information because they can modify the opinions of a large number of other people.

Sociometric methods

The play Six Degrees of Separation is based on the premise that everyone is connected to everyone else, at least indirectly. Sociometric methods trace communication patterns among members of a group. We can use this method to better understand referral behavior and to locate strengths and weaknesses in terms of how one's reputation flows through a community. Network analysis focuses on communication in social systems, considers the relationships among people in a referral network, and measures the TIE STRENGTH among them. Tie strength refers to the nature of the bond between people. It can range from strong primary to weak secondary. Even weak ties can be influential.

Social and Physical Surroundings

The sheer presence or absence of co-consumers is a product attribute. The presence of many people can increase physiological arousal levels so that our experiences seem more intense. Also, the type of consumers who are in a store affects our perceptions. We infer things about a store from the customers there.

Temporal Factors: Psychological Time

The social dimension refers to individuals' categorization of time as either "time for me" or "time with/for others." The temporal orientation dimension depicts the relative significance individuals attach to past, present, or future. The planning orientation dimension alludes to different time management styles varying on a continuum from analytic to spontaneous. The polychronic orientation dimension distinguishes between people who prefer to do one thing at a time from those who multitask.

The 4 A's Figure

This figure illustrates how marketers can market to low-income consumers. The As include awareness, affordability, availability, and acceptability.

Asian Americans

This group has a great deal of marketing potential but it is also difficult to target. This is because it is made up of many culturally diverse subgroups that use different languages and dialects. The term Asian refers to 20 ethnic groups.

5 Perspectives on Time

Time is a _____. •Pressure cooker - shop methodically and feel under time pressure •Map - extensive information search and comparison shopping •Mirror - risk averse with time use so they stick to brands they trust •River - shop on the spur of the moment •Feast - enjoy life and seek out opportunities for hedonic consumption.

Income Trend/COLLEGE WAGE PREMIUM

Two factors contribute to an (overall) upward income trajectory: •A shift in women's roles Ø Mother's with preschoolers in high paying jobs •Increases in educational attainment Ø College wage premium

Social Class Structure

We tend to marry people in a similar social class to ours, a tendency that sociologists call homogamy. •"Haves" versus "have-nots" •Social class is determined by income, family background, and occupation •Universal pecking order: relative standing in society •Social class affects access to resources

The Income Pyramid

We typically assume that marketers are targeting consumers at the top of the pyramid. Those are consumers with the highest incomes but they are also a small percentage of the world market. There are also marketers targeting the bottom of the pyramid. 78% of the global population is low income consumers whose purchasing power is under $10,000 per year.

Time Poverty

a feeling that you do not have sufficient time

Age Cohort

consists of people of similar ages who have similar experiences

Status hierarchy

•some members are better off than others through allocation of resources

Ethnicity/race in marketing today

Ø Spokesperson from own culture seen as more trustworthy Ø Media habits; best to market to recent immigrants in native language

Co-consumers as product attribute

ØLarge numbers of people = arousal ØType of patrons impact emotional state

The youth market

•"Teenage" first used to describe youth generation in 1950s •Youth market often represents rebellion •$100 billion in spending power

Ethnic Subculture

•An ethnic subculture is a self-perpetuating group of consumers who share common cultural or genetic ties where both its members and others recognize it as a distinct category.

The Progressive Learning Model

•Assumes that people gradually learn a new culture as they increasingly come into contact with it •When people acculturate they will blend their original culture and the new one •Consumers who retain much of their original ethnic identity differ from those who assimilate

The youth market - 4 basic conflicts

•Autonomy versus belonging - break away from their families but want a support structure •Rebellion versus conformity- need to rebel against social standards of appearance and behavior but still have a need to fit in •Idealism versus pragmatism - adults are hypocrites but they are sincere •Narcissism versus intimacy - obsess about appearance and own needs but want meaningful connections

Values of older adults

•Autonomy: want to be self-sufficient •Connectedness: value bonds with friends and family •Altruism: want to give something back to the world

E-Commerce: Clicks versus Bricks

•Benefits: good customer service, more options, more convenient •Limitations: lack of security, fraud, actual shopping experience, shipping charges

Gen Z

•Born in the late 1990's to early 2000's •Most diverse generation •Digital natives •Grew up in households dealing with the Great Recession therefore less idealistic

Brand Communities

•Brand community - a group of consumers who share a set of social relationships based upon usage or interest in a product • •Brandfests celebrated by community (Harley has them)

Word of mouth communication

•Buzz building •Negative word-of-mouth •Serial reproduction - content mutates as it is transmitted from person to person (i.e. the game of telephone).

Gen X

•Consumers born between 1966 and 1985 •Today's Gen Xer is both values-oriented and value-oriented •Desire stable families, save portion of income, and view home as expression of individuality Generation X got a bad reputation unfairly. Originally they were called slackers and baby busters, but since they've grown up, they have been responsible for many culture-changing products like Google, YouTube, and Amazon.

Why do we conform?

•Cultural pressure • •Fear of deviance - nonconforming behaviors are "punished". • •Commitment - The more dedicated to a group the more motivated we are to conform. • •Group unanimity - hard to resist large numbers of people • •Interpersonal influence - the need for others to think highly • •Environmental cues - increased comfort more likely to conform

Culture

•Culture is the accumulation of shared meanings, rituals, norms, and traditions •Culture is a society's personality

Characteristics of opinion leaders

•Experts •Unbiased evaluation •Socially active •Similar to the consumer •Among the first to buy

Acculturation Agents

•Family •Friends •Church organizations •Media

Dollar General (Bottom of the Pyramid)

•In 2017 - Dollar General opened new locations at a rate of around four stores a day •In 2018 - 900 stores opened •2019 - plans to open 975 stores

Hans Rosling TED Talk

•Insights on global poverty •Compares households of varying income levels worldwide

Status Symbols

•Invidious consumption - we use status symbols to inspire envy in others •Conspicuous consumption - used as prominent visible evidence of a person's ability to afford luxury goods

Store Image: The stores personality

•Location + merchandise suitability + knowledge/congeniality of sales staff •Other intangible factors affecting overall store evaluation: •Interior design •Types of patrons •Return policies •Credit availability

Distinguishing characteristics of hispanics

•Looking for spirituality, stronger family ties, and more color in their lives •Large family size of Hispanic market Ø Spend more on groceries Ø Shopping is a family affair Ø Regard clothing children well as matter of pride Ø Convenience/saving time is not important to Hispanic homemaker

•Worldview

•Lower middle class looks inward (family, community, etc •Upper class looks outward ("worldly" view)

SBI divides consumers into three groups based on their attitudes toward luxury.

•Luxury is functional - buy things that will last and have enduring value •Luxury is a reward - to say "I've made it", purchase conspicuous luxury items. •Luxury is indulgence - take an emotional approach to luxury spending. Items are extremely lavish and self indulgent.

Influentials / Word of mouth

•Many ads intend to reach influentials rather than average consumers •Local opinion leaders are harder to find •Companies try to identify influentials in order to create WOM "ripple effect"

In-Store Decision Making

•Mental budgets - list and "slack" •Unplanned buying •Impulse buying •Point-of-purchase (POP) stimuli -That A POP can be an elaborate product display or demonstration, a coupon dispensing machine, or an employee who gives out free samples of a new cookie in the grocery aisle.

Social Mobility

•Passage of individuals from one social class to another ØHorizontal mobility (from one occupation to another in same social class) ØDownward mobility ØUpward mobility ("Cinderella fantasy") •Most people stay in their class; rarely make large changes (except for marriage)

•Membership reference groups

•People the consumer actually knows •Advertisers use "ordinary people" -our families, friendship groups, and colleagues

•Aspirational reference groups

•People the consumer doesn't know but admires •Celebrity spokespeople -successful businesspeople, athletes, or performers

Place-based subculture

•Place-based subculture means that people tend to be like those who live in the same areas •Geodemography - analytical technique that combines consumer expenditures and other socioeconomic factors with geographic data.

Income versus social class

•Social class is better predictor of lower to moderately priced symbolic purchases •Income is better predictor of major nonstatus/nonsymbolic expenditures • •Need both social class and income to predict expensive, symbolic products

Reasons for shopping

•Social experiences - people looking for a place to gather •Sharing of common interests •Affiliation - people looking to belong •Instant status - people that love to be waited on •The thrill of the hunt - people that love to haggle or bargain

Subcultures

•Social identity is that part of the self that our group memberships define. •The categories that matter in establishing our consumer identity are subcultures. •Race/ethnicity, religion, age & where we live

Taste cultures

•Taste cultures differentiates people in terms of their aesthetic and intellectual preferences •"Taste" is a status-marking force (or habitus) causing consumption patterns to cluster. -•Upper- and upper-middle-class are more likely to visit museums and attend live theater •Middle-class is more likely to go camping and fishing

How to Identify Opinion Leaders?

•The self-designating method Ø Simply ask individuals whether they consider themselves to be opinion leaders Ø Easy to apply to large group of potential opinion leaders Ø Inflation or unawareness of own importance/influence •Key informant method Ø Key informants identify opinion leaders

Attitude towards money

•Tightwads - hate to part with money and have emotional pain •Spendthrifts - enjoy spending -Frugality seems to be driven by a pleasure of saving, compared to tightwaddism which is driving by a pain of paying.

Born again consumers

•megachurches actively market themselves to individuals who are born again and/or seeking a different sense of worship.