Consumer Behavior: Chapter 1, 2 & 3

Product Contrast

marketers show consumers who stand out from the crowd as a means of capturing attention

Implicit Memory

memory for things that a person did not try to remember

Explicit

memory that develops when a person is exposed to, attends and tries to remember information

Surprising Stimuli

unexpected stimuli gains consumers' attention

Utilitarian Value

value derived from a helpful or useful product

Hedonic Value

value is provided by the actual experience of using the product

Perception

a consumer's awareness and interpretation of reality, it helps shape learning and behavior

Consumption

a process in which consumers use goods, services or ideas and transform the experience into value

Consumer Behavior

a set of value seeking activities that take place as people go about addressing their real needs

Consumer Orientation

a way of doing business in which actions and decision making prioritize customer value and satisfaction

Relationship Marketing

activities based on the belief that the firm's performance is enhanced through repeat business

Predictive Analytics

application of statistical tools to discover patterns in data that allow prediction of consumer behavior

Size of Stimuli

larger items garner more attention than smaller ones

Customer Lifetime Value

approximate worth of a customer to a company in economic terms

Types of Memory

Implicit and Explicit

scanner purchase, survey responses, web traffic records, social network interactions, GPS tracking are examples of _____

Big Data

_____ drives companies toward a high degree of consumer orientation

Competition

Creating Attention/Memory for Stimuli relies on:

Intensity of, Size of, Surprise Factor, Involvement Factor, Contrast Factor, Movement Factor

Types of Learning

Intentional and Unintentional

Just Noticeable Difference

Pricing, Quantity, Quality, Add-on purchase, Change in product design

customers, employees, owners, suppliers, regulating agencies are examples of _______

Primary Stakeholders

mass media, communities, trade organizations are examples of _______

Secondary Stakeholders

Consumer Perception Process

Sensing, Organizing, Reacting

Types of Value

Utilitarian and Hedonic

Marketing Myopia

condition where a company views itself in a product business rather than in a value or benefits-producing business

Perceptual Process

consumers are exposed to stimuli, devote attention to stimuli and attempt to comprehend stimuli

Product Differentiation

consumers do not view all competing products as identical to one another

Intensity of Stimuli

consumers tend to pay attention to stronger stimuli

Operational Management

deals with implementation of strategies, involves the 4 P's or marketing mix

Stakeholder Marketing

firms recognize that more than just the buyer and seller are involved in the marketing process

Product Movement

flashing lights and pointing signs are effective tools used

Qualitative Research

focus groups, interviews, observation

Perceptual Map

graphical depiction of the positioning of competing products, price vs. quality

Target Mix

identified segment or segments of a market that a company serves

Market Orientation

organizational culture that embodies the importance of creating value for customers among all employees

Value

personal assessment of the worth obtained from an activity

Product Involvement

personal relevance a consumer feels towards a particular product

Quantitative Research

polls, surveys

Big Data

represents massive amounts of data available to companies that can be used to predict consumers' behaviors

Interpretive Research

seeks to explain the inner meanings and motivations assigned with specific consumption experiences

Market Segmentation

separation of a market into groups based on the different demand curves associated with each group

Netnography

studies the behavior of online cultures

Ethnography

study of consumers that relies on observation of their daily lives and includes interpretation of artifacts to draw conclusions about consumption

Weber's Law

the ability to detect differences between two different products

Corporate Strategy

the way a firm is defined, associated with specific corporate culture