Consumer Behavior Test 1

80/20 Rule

20% of users account for 80% of sales

Sustainability and Environmental Stewardship

?

Consumer

A person who identifies a need or desire, makes a purchase and then disposes of the product during the 3 stages of the consumption process

Consumer addiction

A physiological or psychological dependency on products or services

Cause Marketing

A popular strategy that aligns a company or brand with a cause to generate business and societal benefits.

Voice Response

Addresses conflict directly and attempts to resolve it

What are some of the major bases of market segmentation?

Age, gender, family structure, social class and income, race and ethnicity, geography, and lifestyle

Sustainability

An emphasis on creating and maintaining the condition under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic, and other requirements of present and future generations.

Haptic Sense

Appears to moderate the relationship between product experience and judgment confidence (i.e., people are more sure about what they perceive when they can touch it.)

How does role play to consumer behavior

As consumers, we seek the lines, props, and costumes necessary to put on a good performance and consumers often alter their consumption depending on the role they are playing at the moment.

Trade Dress

Colors that are strongly associated with a corporation, for which the company may have exclusive rights for their use

What are the steps in implementing the marketing concept

Consumer Research, Segmentation, Market Targeting, Positioning, Differentiation

The three major public policy issues relevant to consumer behavior

Data Protection, Market Access, Sustainability and Environmental Stewardship

Webers Law

Demonstrates that the stronger the initial stimulus, the greater the change must be for it to be noticed

Green Marketing

Describes a strategy that involves the development and promotion of environmentally friendly products and stressing this attribute when the manufacturer communicates with consumers

Positioning

Developing a distinct image for the product in the mind of the consumer

Private Response

Express dissatisfaction to friends or boycott store

Pre-purchase

How the consumer decides that he/she needs a product and finding the best sources of information to learn about alternative choices.

Market Segmentation

Identifies groups of consumers who are similar to one another in one or more ways and then devises strategies that appeal to one or more groups

What factors lead to adaptation

Intensity, duration, discrimination, exposure, relevance

Database Marketing

Involves tracking consumers' buying habits very closely and creating products and messages tailored precisely to people's wants and needs based on this information.

Why has the view of consumer behavior expanded beyond the point of exchange to be considered more of a process?

It also includes the entire consumption process, including issues that influence the consumer before, during, and after a purchase.

Shrinkage

Losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise

Sensory Marketing

Marketing techniques that link distinct sensory experiences such as a unique fragrance with a product or service

Perceptual Defence

Means that we tend to see what we want to see — and we don't see what we don't want to see.

Data Protection

Method of ensuring that personal data is correct and is not misused either by those holding it or others who have no right to access it.

Pop-culture

Music, movies, sports, books, celebrities, and other forms of entertainment that the mass market produces and consumes

Relationship Marketing

Occurs when a company makes an effort to interact with customers on a regular basis, giving customers reasons to maintain a bond with the company over time.

Greenwashing

Occurs when companies make false or exaggerated claims about how environmentally friendly their products are.

Stages of Consumption

Pre-purchase, purchase, post-purchase

What are the main components of the Marketing Mix

Product, Place, Price, and Promotion

Examples of consumed consumers

Prostitutes, organ, blood, and hair donors, and carrying babies as a surrogate

Sensory Inputs

Received by our brains on a number of channels and are picked up by our five senses, thus beginning the perceptual process

Corrective Advertising

Refers to a situation in which a company must inform consumers that a previous message was wrong or misleading

Tripple Bottom Line Approach

Refers to business strategies that strive to maximize return in three ways: financial, social, and environmental.

Endowment Effect

Refers to encouraging shoppers to touch products helps them to imagine they own it, and people value things more if they own them

Compulsive Consumption

Refers to repetitive and often excessive shopping performed to relieve tension, anxiety, depression, or boredom

Business Ethics

Rules of conduct that guide actions in the marketplace

Serial Wardrobers

Shoppers who buy an outfit, wear it once, and return it

Examples of crimes against businesses

Shrinkage, serial wardrobers, and counterfeiting.

Role Theory

Takes the view that much of consumer behavior resembles actions in a play

Corporate Social Responsibility

The Processes that encourages the organization to make a positive impact on the various stakeholders in its community, including consumers, employees, and the environment.

Differential Threshold

The ability of a sensory system to detect changes or differences between two stimuli

Market Access

The ability to find and purchase goods and services

Promotion

The advertising, sales promotion, public relations, and sales efforts that develop product awareness and demand

Purchase

The consumer decides whether acquiring the product is a stressful experience and what the product says about the consumer.

Post-purchase

The consumer decides whether the product provides pleasure or perform its intended function, how the product is eventually disposed of, and what are the environmental consequences of this act

Adaptation

The degree to which consumers continue to notice a stimulus over time or no longer pay attention to a stimulus

Place

The distribution of the product or service through stores and other outlets.

Product

The features, designs, brands, and packaging, along with post-purchase benefits such as warranties and return policies.

Differentiation

The image must differentiate the offering from that of competition by stressing the product's unique benefits.

Sensation

The immediate response of our sensory receptors to basic stimuli such as light, color, sound, odors, and textures

Materialism

The importance people attach to worldly possessions

Price

The list price, discounts, allowances, and payment methods

Marketing Concept

The marketing concept maintains that marketing consists of satisfying consumers' needs, creating value, and retaining customers, and that companies must produce only those goods that they have already determined would satisfy consumer needs and meet organizational goals

Absolute Threshold

The minimum amount of stimulation that can be detected on a given sensory channel

Just Noticeable Difference (Threshold)

The minimum difference that can be detected between two stimuli

Marketing Myopia

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

What factors impact perceptual selection

The nature of the stimulus, consumer expectations, and consumer motives.

Sensory Thresholds

The point at which a stimulus is strong enough to make a conscious impact on a persons awareness

Consumer Research

The process and tools used to study consumer behavior

Perceptual Selection

The process by which people attend to only a small portion of the stimuli to which they are exposed

Perception

The process by which sensations are selected, organized, and interpreted

Segmentation

The process of dividing the market into subsets of consumers with common needs or characteristics

Market Targeting

The selection of one or more of the segments identified to pursue

Consumer Behavior

The study of the processes involved when individuals or groups select, use, purchase, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

Social Marketing

The use of marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving

Why are business ethics important for marketing

These are the standards against which most people in a culture judge what is right and what is wrong, good, or bad. Ethical business is good business

Percetual Vigilance

This means we are more likely to be aware of stimuli that relate to our current needs

Counterfeiting

Unauthorized copying and production of a product EX: Fake Gucci Belts

Audio Watermarking

Used when a unique electronic identifier is embedded in an audio signal, typically used to identify ownership of copyright.

What options do dissatisfied consumers have?

Voice response, private response and third party response.

How do we make meaning of Sensory Inputs

We each put our personal spin on these external stimuli as we assign meanings consistent with our own unique experiences, biases, and desires.

Third Party Response

You can take legal action against the merchant, register a complaint with the Better Business Bureau, or write a letter to the newspaper

love

the product elicits emotional bonds of warmth, passion, or other strong emotion

self concept attatchment

the product helps to establish the user's identity

interdependence

the product is a part of the user's daily routine

nostalgic attachment

the product serves as a link with a past self