Consumer Behavior Test 1 Ginder Chapter 1 & 2

What are examples of consumed consumers and crimes against businesses

-Shrinkage refers to inventory and cash losses caused by shoplifting and employee theft. - -Serial wardrobers buy a garment, wear it once, and return it. - -Counterfeiting is where companies or individuals sell fake versions of real products to customers.

What is the 80/20 rule?

80% of your business comes from 20% of your customers

What is the definition of a consumer

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

What are some of the major regulatory agencies and their responsibilities

Consumer Product Safety Commission (CPSC): Protects the public from potentially hazardous products. Through regulation and testing programs, the CPSC helps firms make sure their products won't harm customers Environmental Protection Agency (EPA): Develops and enforces regulations aimed at protecting the environment. Such regulations have a major impact on the materials and processes that manufacturers use in their products and thus on the ability of companies to develop products. Federal Communications Commission (FCC): Regulates telephone, radio, and television. FCC regulations directly affect the marketing activities of companies in the communications industries, and they have an indirect effect on all firms that use broadcast media for marketing communications. Federal Trade Commission (F TC): Enforces laws against deceptive advertising and product labeling regulations. Marketers must constantly keep abreast of changes in FTC regulations to avoid costly fines. Food and Drug Administration (FDA): Enforces laws and regulations on foods, drugs, cosmetics, and veterinary products. Marketers of pharmaceuticals, over-the-counter medicines, and a variety of other products must get FDA approval before they can introduce products to the market.

post purchase issues

Consumer: Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this act? Marketer: What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and influence their purchase decisions?

What are some of the major bases of market segmentation

Demographics, Psychographics, Behavior

What are some of the dark sides of consumer behavior

Harmful consumer behaviors, such as excessive drinking and cigarette smoking, can stem from social pressures. The cultural value many of us place on money encourages activities like shoplifting and insurance fraud. Exposure to unattainable ideals of beauty and success creates dissatisfactions with our bodies or our achievements.

How are marketing and consumer behavior related to popular culture

Marketers of culture not only use pop culture to advertise and manipulate the values, mind-set, and purchasing behavior of consumers, but also shape pop culture itself.

What is the difference between needs and wants? Rational vs. hedonic?

Needs: States of felt deprivation; the actual Wants: A specific manifestation of a need that personal and cultural factors determine Rational: Traditional approaches to consumer behavior focus on the abilities of products to satisfy Hedonic: have become equally important.

What are the stages in the consumption process

Pre-purchase issues, purchase issues, post-purchase issues

Pre-Purchase Issues

Recognize needs for a product, Find sources of information, Search alternative choices

Why is market regulation needed

Regulations prevent financial fraud and limit the risks financial institutions can take with their investors' money.

What is database marketing

enabled by Big Data, involves tracking consumers' buying habits very closely and creating products and messages tailored precisely to people's wants and needs based on this information.

What is cause marketing

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

Purchase issues

is acquiring a product a stressful or pleasant experience?what does the purchase say about the consumer?

What is popular culture

is both a product of and an inspiration for marketers.

Why is the field considered interdisciplinary

it is composed of researchers from many fields who share an interest in how people interact with the marketplace.

What is market segmentation?

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

What is consumer behavior

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

What options do dissatisfied consumers have

•Consumers have three options to pursue when they are dissatisfied with a product/service/brand: 1.voice response 2.private response 3.third-party response

How does it apply to consumer behavior

•Consumers often develop relationships with brands. Products and brands often have deeper meanings for us.

What are social marketing and corporate social responsibility

•Corporate social responsibility (CSR) refers to the processes that encourage an organization to make a positive impact on the various stakeholders in its community, including consumers, employees, and the environment. • •Social marketing uses marketing techniques normally employed to sell products or services for profit to encourage positive behaviors and to discourage negative activities.

What is market access

•For many consumers, market access (i.e., their ability to find and purchase goods and services) is limited because of physical, mental, economic, or social barriers.

What are green marketing and greenwashing

•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. • •Greenwashing occurs when companies make false or exaggerated claims about how environmentally friendly their products are.

What are identity theft and phishing scams

•Identity theft occurs when someone steals your personal information and uses it without your permission. • •Phishing scams occur when people receive fraudulent emails that ask them to supply account information.

What is role theory

•The sociological perspective of role theory takes the view that much of consumer behavior resembles actions in a play.

What is business ethics, and why is it important for marketing

•are rules of conduct that guide actions in the marketplace; these are the standards against which most people in a culture judge what is right and what is wrong, good, or bad.

What is corrective advertising

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

What is the triple-bottom line approach to business

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

What is compulsive consumption

•refers to repetitive and often excessive shopping performed to relieve tension, anxiety, depression, or boredom.

What is materialism

•refers to the importance people attach to worldly possessions.

What are the many purposes of consumer research

•work for manufacturers, retailers, marketing research firms, governments, nonprofits, colleges, and universities.