Consumer Behavior exam ch 1-7

80/20 rule

20% of users account for 80% of sales

creates new marketing oppurtunities

A company that sells a global product can explore opportunities abroad if its home market is small or becomes saturated.

levels uneven income streams

A company that sells a product with universal, but seasonal, appeal can use international sales to level its income stream.

global sustainability

Another need that multinationals must consider is the need among all the world's citizens for sustainability—development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

corporate social responsibility

CSR is the process of encouraging organizations to make a positive impact on stakeholders

reduces marketing costs

Companies that sell global products can reduce costs by standardizing certain marketing activities. Companies can achieve further cost savings by keeping an ad's visual component the same for all markets but dubbing TV ads and translating print ads into local languages.

consumption communities

Consumption communities are where members share opinions and recommendations about anything from Barbie dolls to baseball fantasy league team lineups to iPhone apps.

database marketing

Database marketing tracks specific consumers' buying habits very closely and crafts products and messages tailored precisely to people's wants and needs based on this information. The collection and analysis of extremely large datasets is called Big Data. In a single day, consumers create 2.5 quintillion bytes of data. Big Data can influence many areas of consumer life. For instance, monitoring of Google searches for fever and flu can help epidemiologists to identify specific areas of the US that have been hit by flu outbreaks even before patients begin visiting doctors and hospitals.

demographics

Demographics are statistics that measure observable aspects of a population. Some of the most common demographic measures are age, gender, family structure, social class, race or ethnicity, and geography. Even lifestyles can be useful to marketers in that consumers may share demographic characteristics but have very different lifestyles. Marketers try to understand their customers and develop lifelong relationships. Marketers who follow this approach are said to follow the philosophy of relationship marketing. They may also utilize database marketing in order to track consumers' buying habits.

consumer behavior as a process

In the early stages of development, researchers referred to the field as buyer behavior. Marketers now recognize that consumer behavior is an ongoing process, not merely what happens at one point in the transaction cycle. We call the transaction of value between two or more an exchange. It's an integral part of marketing but consumer behavior recognizes that the entire consumption process is relevant for marketers.

local buyers needs

In the pursuit of the potential benefits of global markets, managers must constantly monitor the match between the firm's products and markets in order to not overlook the needs of buyers. The benefit of serving customers with an adapted product may outweigh the benefit of a standardized one.

interdependence

Interdependence means that the product is a part of the user's daily routine.

love

Love means that the product elicits emotional bonds of warmth, passion, or other strong emotion.

marketers understands wants and needs of consumers

Marketers must understand the various consumer segments they are targeting in order to meet the segments' needs. In the ad shown, the woman is fed up with bad financial news. Bianco adjusted its message strategy to address the concerns of its audience. Many dimensions are relevant for understanding consumer needs and wants. Usage (whether heavy or light) can help to focus marketers' energies. In addition there are many demographic variables that can help in understanding groups of consumers.

nostalgic attachment

Nostalgic attachment means the product serves as a link to the consumer's past.

provenance

One important dimension today is provenance: Shoppers are willing to pay more for an item when they know exactly where it comes from, and they are assured that "real people" have thoughtfully selected the things from which they choose.

motivation vs products

People often buy products not for what they do but for what they mean. Products play an extended role in our lives. Motivation refers to the processes that lead people to behave as they do. It occurs when a need is aroused that the consumer wishes to satisfy.

role theory

Role theory takes the view that much of consumer behavior resembles actions in a play. We find that consumers may develop relationships with brands over time. The slide lists some of the types of relationships we may see between consumers and their brands.

self concept attachment

Self-concept attachment means that the product helps to establish the user's identity. This was one of our early points in this chapter.

transformative consumer research

TCR promotes research projects that include the goal of helping people or bringing about social change

failure rate of products

The failure rate for new products ranges from 40-80%. Although people may think that advertisers use magic to sell products, marketers are only successful when they promote good products.

consumer behavior definition

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.`

digital native

The term digital native originated in a 2001 article to explain a new type of student who was starting to turn up on campus. These consumers grew up "wired" in a highly networked, always-on world where digital technology had always existed

market segment strategies

The use of market segmentation strategies means an organization targets its product, service, or idea only to specific groups of consumers rather than to everybody—even if it means that other consumers who don't belong to this target market aren't attracted to it. That's why they make chocolate and vanilla ice cream (and even candied bacon flavor!).

pyramid of consumer behavior

This figure provides a glimpse at some of the disciplines working in the field and the level at which each tackles research issues. The fields closer to the top of the pyramid concentrate on individual behavior. Those toward the base are more interested in the aggregate activities that occur among large groups of people.

paradigm

We call a set of beliefs that guide our understanding of the world a paradigm. Some belief consumer behavior is in the midst of a paradigm shift, which occurs when a competing paradigm challenges the dominant set of assumptions. The basic set of assumptions underlying the dominant paradigm is positivism or modernism. It emphasizes that human reason is supreme and there is a single, objective truth that science can discover. The newer paradigm of interpretivism (or postmodernism) questions these assumptions. This perspective argues that societal beliefs deny the complex social and cultural world in which we really live.

stages in consumption process

We call the person who identifies a need or desire, makes a purchase, and then disposes of the product as a consumer. The purchaser or user might be the same person, or not. You can see in the slide that there are three key stages: 1) prepurchase, 2) purchase, and 3) postpurchase. Marketers need an understanding of all three stages.

positivism/positivist

a research perspective that relies on principles of the "scientific method" and assumes that a single reality exists; events in the world can be objectively measured; and the causes of behavior can be identified, manipulated, and predicted

business ethics

are rules of conduct that guide actions in the marketplace. There are cultural differences in what is considered ethical. It can be difficult to avoid ethical conflicts because our thoughts of what is right and wrong vary among people, organizations, and cultures. These cultural differences certainly influence whether business practices such as bribery are acceptable. Bribing foreigners to gain business has been against the law in the United States since 1977, under the Foreign Corrupt Practices Act. The Organization for Economic Cooperation and Development (OECD), to which most industrialized countries belong, also outlaws bribery. Still, these practices are common in many countries.

interpretivism/interpretist

as opposed to the dominant positivist perspective on consumer behavior, instead stresses the importance of symbolic, subjective experience, and the idea that meaning is in the mind of the person rather than existing out there in the objective world

marketing and pop culture

both effect each other. Marketing effects pop culture and pop culture effects marketing. Music, Movies, Sports, Books, celebs , Entertainment. Marketers influence preferences for movie and music heroes, fashions, food, and decorating choices.

B2C e-commerce

business to consumer

C2C e-commerce

consumer to consumer

culture jamming

consumerism lead to this, is a strategy to disrupt efforts by the corporate world to dominate our cultural landscape.

objective of marketing

create awareness that needs exist, not to create needs

cause marketing

is a strategy that aligns businesses with a cause. toms with shoes and giving back

consumerspace

is an environment where individuals dictate to companies the types of products they want and how, when, and where (or even if) they want to learn about those products.

corrective advertising

market regulation leads to this, means that the company must inform consumers that previous messages were wrong or misleading.

third party response

mean taking legal action or going through an organization like the Better Business Bureau.

voice response

means complaining

private response

means sharing your dissatisfaction with friends

heavy users

most faithful customers

need

motivation occurs when a need is aroused that the consumer wishes to satisfy. The need creates a state of tension that drives the consumer to attempt to reduce or eliminate it. This need may be utilitarian (i.e., a desire to achieve some functional or practical benefit, as when a person loads up on green vegetables for nutritional reasons) or it may be hedonic (i.e., an experiential need, involving emotional responses or fantasies).

cultural anthropology

product role in a society's beliefs and practices . Ways in which fashions and models in a magazine affect readers' definitions of masculine versus feminine behavior (e.g., the role of working women, sexual taboos)

microeconomics/human ecology

product role in allocation of individual or family resources. Factors influencing the amount of money a household spends on magazines.

macroeconomics

product role in consumers' relations with the marketplace. Effects of the price of fashion magazines and expense of items advertised during periods of high unemployment

experimental psychology

product role in perception, learning, and memory processes. How specific aspects of magazines, such as their design or layout, are recognized and interpreted; which parts of a magazine people are most likely to read.

clinical psychology

product role in psychological adjustment. How magazines affect readers' body images (e.g., do thin models make the average woman feel overweight?)

sociology

product role in social institutions and group relationships. Pattern by which magazine preferences spread through a social group (e.g., a sorority)

history

product role in societal changes over time. Ways in which our culture's depictions of "femininity" in magazines have changed over time

semiotics/literary criticism

product role in the verbal and visual communication of meaning. Ways in which underlying messages communicated by models and ads in a magazine are Interpreted

social psychology

product role in the behavior of individuals as members of social groups. Ways that ads in a magazine affect readers' attitudes toward the products depicted; how peer pressure influences a person's readership decisions

demography

product role in the measurable characteristics of a population. Effects of age, income, and marital status of a magazine's readers

materialism

refers to the importance people attach to worldly possessions.

want

the particular form of consumption chosen to satisfy a need

relationship marketing

the strategic perspective that stresses the long-term, human side of buyer-seller interactions

asynchronous interactions

those that don't require all participants to respond immediately, like when you text a friend and get an answer the next day

synchronous interactions

those that occur in real time, like when you text back and forth with a friend

curation

to an expert who carefully chooses pieces to include in a museum exhibit, now applies to a range of consumer products such as food, clothing, and travel.

social marketing strategies

use marketing techniques to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving