Consumer Behavior Ch. 4-7

advertising

-Stimulation can involve themes designed to encourage current owners to talk about (tell a friend about) the brand or prospective owners to ask current owners (ask someone who owns one) for their impressions. -Simulating opinion leadership involves having an acknowledged opinion leader—such as Phil Mickelson for golf equipment—endorse a brand. -Sampling, sometimes called "seeding," involves getting a sample of a product into the hands of a group of potential consumers. Sampling can be a particularly potent WOM tool when it involves individuals likely to be opinion leaders. -Buzz can be defined as the exponential expansion of WOM. It happens when "word spreads like wildfire" with no or limited mass media advertising supporting it. -creating buzz is a key aspect of guerrilla marketing—marketing with a limited budget using nonconventional communications strategies. Guerrilla market-ing is about making an "intense connection with individuals and speed[ing] up the natural word-of-mouth process.

Single-item indexes

-estimate social status on the basis of a single dimension such as education, income, or occupation -marketers generally think of these as direct influencers of consumption behavior rather than determinants of status that then influence behavior

targeting Gen Z

-known as Digital Natives, Generation @, Net Generation -$200 billion purchasing power -buying patterns formed as young teen will follow through life -reaching Gen Z can be challenging for brands cuz they get bored easily, they use more digital platforms than older generations, and are known to switch among five screens simultaneously

measurements of social status

-single-item index, multi-item index -since an individual's overall status is influenced by several dimensions, single-item indexes are generally less accurate than are well-developed multi-item indexes

demographics or social status?

-social status comes from demographics: income, education, occupation go a long way toward determining one's social class or status -should marketers use an overall measure of social status (multi-item index) or a demographic variables such as income-- -unless the marketer is interested in social standing, they will focus on demographic characteristics as direct influencers on consumer behavior

baby boomers

1946-1964 compared to prior generations, Boomers are -high income, higher education -more tech savvy -define retirement differently (maybe not retiring)

ethnic subcultures

African Americans Hispanics Asian Americans Native Americans Asian-Indian Americans Arab Americans

characteristics of opinion leaders

Experts Unbiased evaluation Socially active Similar to the consumer Among the first to buy -enduring involvement: greater long-term involvement with the product category than the non-opinion leaders in the group; leads to enhanced knowledge about and experience with the product category or activity. -Opinion leadership functions primarily through interpersonal communications and observation.

middle class americans

Growing group due to industrialization lived in suburbs Managers, salesmen, engineers -upward pull strategy: middle class--aspirations to belong to middle class--prefer products consumed by upper-middle class--positioning upper class symbolism for middle class products

Healthy Hermits

Health is good but have withdrawn psychologically and socially; no desire to do anything, might have lost spouse (emotional trauma) Clothing: emphasize conformity prefer/ will pay more for well known brands

Asch phenomenon

Individuals conform to majority rule, even if that majority rule goes against their beliefs

opinion leader

These individuals actively filter, interpret, or provide product- and brand-relevant information to their family, friends, and colleagues. The process of one person's receiving information from the mass media or other sources and passing it on to others is known as the two-step flow of communication.

word-of-mouth (WOM) communications

WOM involves individuals sharing information with other individuals in a verbal form, including face-to-face, on the phone, and over the Internet. -Consumers generally trust the opinions of people (family, friends, acquaintances) more than marketing communications because, unlike marketing communications, these personal sources have no reason not to express their true opinions and feelings. As a consequence, WOM can have a critical influence on consumer decisions and business success. It is esti-mated that 82 percent of consumer purchases are influenced by WOM. -Negative experiences, which are highly emotional and memorable, motivate consumers to talk. While the number varies by situation and product, it is not at all uncom-mon to find that dissatisfied consumers tell twice as many people about their experience than do satisfied consumers.

online community

a community that interacts over time around a topic of interest on the Internet. -Online communities and social networks are attractive for a number of reasons, including • Consumer use is high and rising, with more than two-thirds of online adults and three-quarters of online teens saying they use social networking sites.16 • A majority of consumers who use social network sites use them to share information, including information about brands and products.17 • Customer acquisition potential seems high, with 51 percent of firms on Twitter and 68 percent of firms on Facebook indicating they have acquired a customer through these channels.18 • Roughly two-thirds of consumers who interact with a brand via social media are more likely to recall the brand, share information about the brand with others, feel connected to the brand, and purchase the brand.

step family

a family in which at least one partner has children from a previous marriage; kid under age of 18

social class system

a hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles. "Pure" social classes do not exist in the US or most other industrialized societies

nonfamily household

a householder living alone or exclusively with others to whom he or she is not related -34.4%

traditional family

a married opposite-sex couple and their own or adopted term-37children living at home; 18.7% married couple with children down to 14.4%

Subculture

a segment of a larger culture whose members share distinguishing values and patterns of behavior -identification with subculture produces unique market behaviors -ethnic, religious, geographic

Hollingshead Index of Social Position (ISP)

a two-item index that is well developed and widely used

online social network site

a web-based service that allows individuals to (1) construct a public or semipublic profile within a bounded system, (2) articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system.

consumption subculture

an identifiable, hierarchical social structure; (2) a set of shared beliefs or values; and (3) unique jargon, rituals, and modes of symbolic expression.

family household

at least two people who are related by blood or marriage who occupy a housing unit; 65.6%; two members related by birth, marriage, or adoption

status dimension

biological, emotional, and social components -socioeconomic factors: occupation, education, ownership, income, heritage -social stnding: upper, middle working, lower class -unique behaviors: preferences, purchases, consumption, communication

community vs brand community

brand community is a nongeographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm.9 A community is characterized by consciousness of kind, shared rituals and traditions, and a sense of moral responsibility

household

consists of people who occupy the same housing unit (house, apartment, group of rooms, single room designed to be occupied as separate living quarters)

How to target mature market

gerontographics has identified four segments in mature market -healthy indulgers -ailing outgoers -healthy hermits -frail recluses

group vs reference group

group is defined as two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent. (1) membership, (2) strength of social tie, (3) type of contact, and (4) attraction. Primary groups, such as family and friends, involve strong ties and frequent interaction. Primary groups often wield considerable influence. Secondary groups, such as professional and neighborhood associations, involve weaker ties and less-frequent interaction. dissociative reference groups—can influence behavior just as those with positive desirability do. -Nonmembership groups with a positive attraction—aspiration reference groups—also exert a strong influence. A reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior

Frail Recluses

have accepted their old-age status and have adjusted their lifestyles to reflect reduced physical capabilities and social roles

ailing outgoers

have major health problems, but want to get the most out of life, are as active as possible - clothing- socially acceptable, catalogs, easy dressing features

multistep flow of communication

multistep flow of communication involves opinion leaders for a particular product area who actively seek relevant information from the mass media as well as other sources. These opinion lead-ers process this information and transmit their inter-pretations of it to some members of their groups.

informational influencers

occurs when an individual uses the behaviors and opinions of refer-ence group members as potentially useful bits of information.

societal rank

one's position relative to others on one or more dimensions valued by society

market mavens

people who search, accumulate, and share product knowledge with others -They provide information on product quality, sales, usual prices, product availability, store personnel characteristics, and other features of relevance to consumers.

healthy indulgers

physically and mentally healthy and are thus active, independent, and out to enjoy life

household life cycle (HLC)

segmentation technique that acknowledges that changes in family composition and income alter household demand for products and services

Generation Xers

the generation born between 1965 and 1980 that is comfortable with technology, values work-life balance and creativity -smaller generation -highly educated with more college attendance and graduates than prior, women more highly educated than men -entrepreneurial in approach to jobs; less prone to devote life to a large corporation -more diverse and open to diversity than previous generations -both cynical and sophisticated abt products, ads, shopping -tech savvier than previous

Generation Y (Millennials)

the group of consumers born between 1979 and 1994 -expected to have at least as high of education level as previous generation -factors they believe make their generation unique: technology use, music and pop culture, tolerance, intelligence, clothes

ethnic subculture

those subcultures whose members' unique shared behaviors are based on a common racial, language, or nationality background -Noneuropean ethnic groups 40% in 2020 to 49% in 2040 -white drink most diet cola; black population uses more charcoal; electric espresso maker: Hispanic; white population more fast food the Secret ad represents ethnic diversity African Americcans: 1.1 trillion in buying power grow 25% by 2020; younger and have less education, lower income, but getting more education now; top 20 percentile households earn >$155,000 top 5 percentile earn $280,000:: segments identified by Yankelovich: too diverse a market to just target all Hispanics: avg income is low, purchasing power is $1.3 trillion expected to grow to $1.7 in 2020; income, education, language, identification with Hispanic culture, roman catholicism; 34% of growth in population due to immigration; acculturation plays major role in attitudes and behaviors of hispanic consumers 38% identify as Americans, 17% born in US highest education and income, english as primary language:: Mexican Americans: 66%--southwest and California, other latinos 14%, Puerto Ricans: 10% NYC little bit of higher income than Mexican, Cubans 4% NYC, California:: share mostly common language and roman catholicism Consumer groups: generational groups exist drive differences in language, national identity, values: first generation, second generation, third generation --acculturation is highly related to language use and both are strongly influenced by generational factors --McDonalds commercial is a good example of the Hispanic generational groups

normative influence

utilitarian influence, occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction.

identification influence

value-expressive influence, occurs when individuals have internalized the group's values and norms.

status crystallization

which is moderate in the U.S., reflects the consistency of these status dimensions.

Types of Households

younger (under 35) -single -young couples: no children -full nest 1 (2.2 kids) -single parent 1 middle aged (35-64) -middle aged single 2: live alone, high income to expense ratio -empty nest 1: no children living at home -displayed full nest 1 -full nest 2 -single parent 2 -64 older HLC can be important segmentation variable; each stage has different needs; income, occupation, education heavily influence how individual's needs are met