consumer behavior final

depth interviews

"1-on-1 interviews" somewhat lengthy non-structured

societal marketing concept

"enlightened marketers", calls on marketers to fulfill their target markets in ways that improve society as a whole while simultaneously meeting business objectives

usage situation/occasion

"i buy my wife flowers on valentine's day" "i try to stay at the holiday inn when im gone for a week or more for business"

brand relationship

1. Active customers- more relational, greater trust and commitment to the marketers 2. Passive customers- less relational 3. Customers seek both personal connections and functional features a. Special treatment b. Confidence benefits c. Social benefits

perceived brand loyalty

1. Behavior- frequency and consistency of buying a given brand 2. attitude - consumer's feeling of commitment to the brand 3. Frequency reward program- marketers offer rewards and benefits to those who purchase products consistently a. Switchers- seek to obtain bargains b. Consumer innovators- prime target for new products, not brand loyal

positioning process

1. Defining the market in which the product or brand competes, who the relevant buyers are, and the offering's competition. 2. Identifying the product's key attributes and researching consumers' perception regarding each of the relevant attributes. 3. Researching how consumers perceive the competing offerings on the relevant attributes. 4. Determining the target market's preferred combination of attributes. 5. Developing a distinctive, differentiating, and value-based positioning concept that communicates the applicable attributes as benefits. 6. Creating a positioning statement focused on the benefits and value that the product provides and using it to communicate with the target audiences.

the consumer research process

1. Defining the objectives of the research 2. Collecting and evaluating secondary data 3. Designing a primary research study 4. Collecting primary data 5. Analyzing the data 6. Preparing a report

criteria for effective targeting

1. Identifiable 2. Sizable 3. Stable 4. Accessible 5. Congruent with company's objectives and resources

motives

1. Losing weight to avoid health problems= negative 2. Losing weight to look better= positive 3. Rational motives- made selections based on totally objective criteria (weight, size, price, or miles per hour etc) 4. emotional motives- made selection based on personal or subjective data

dynamics of motivation

1. Needs are never fully satisfied 2. New needs emerge as old needs are satisfied 3. Success and failure influence goals a. Levels of aspiration (success of goals leads to higher goals, etc)

arousal of motives

1. Physiological arousal- bodily needs 2. Emotional arousal- 3. Cognitive arousal- thoughts lead to awareness, commercial about the meaning of home leads to calling one's parents behaviorist school- considers motivation to be a mechanical process Cognitive school- all behavior is directed at goal achievement

demographics

1. person's age, gender, ethnicity, and income a. social class- defined by income, education, occupation

microtargeting

1. personalized advertising messages a. Narrowcasting (opposite of broadcasting)

failure to achieve a goal

Frustration is the feeling that results from failure to achieve a goal, and defense mechanisms are cognitive and behavioral ways to handle frustration.

formation of new goals

Needs and goals are interdependent; neither exists without the other. However, people are often not as aware of their needs as they are of their goals. Human needs are never fully or permanently satisfied. As individuals attain their goals, they develop new ones. If they do not attain their goals, they continue to strive for old goals or they develop substitute goals.

positioning

The process by which a company creates a distinct image and identity for its products, services, or brands in consumers' minds

perceptual mapping

a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a company's product, product line, or brand is displayed relative to their competition

customer lifetime value

a forecasted estimate of how much a customer will spend on a particular product or service over the entire "stay" with the offering's seller

consumption rooted segmentation

a. Usage and purchase behaviors b. Attitudes and preferences regarding the product type of segmentation

VALS

a. stands for values and lifestyles i. 3 primary motivations 1. Ideals a. Thinkers- high resource, high innovation b. Believers- low resource, low innovation 2. Achievement a. Achievers- high resource, high innovation b. Strivers- low resource, low innovation 3. Self-expression a. Experiencers- high resource, high innovation b. Markers- low resource, low innovation 4. Innovators- combination of all three 5. Survivors- little/none of the above of the three motivators

consumer rooted segmentation

a.Empirical personal features b. personality , lifestyles, and sociocultural values type of segmentation

needs associated with inanimate objects

acquisition conservancy order retention construction

secondary research

already existing information that was originally gathered for research purpose other than the present research

rank order scales

asked to rank items in order of preference with some kind of criterion (exp- quality, value for money)

product concept

assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features

geodemographics

based on the premise that people who live close to one another are likely to have similar financial means

mallows hierarchy of needs

basic needs: physiological needs & safety needs psychological needs: belongingness and love needs & esteem needs self-fulfillment needs: self actualization

consumer behavior

behavior consumers display in searching from purchasing, using, evaluating, and disposing of products and services, that they expect will satisfy their needs - focuses on how indiv/fam/customers will make decisions to spend their money/resources on items what/why/when/where/how often they buy

personal consumer

buys goods/service for their own use, for use of the household, for gift. Bought for final use by individuals, referred to as end users

validity

collects appropriate data needed to answer questions

focus groups

consists of 8-10 ppl who meet w moderator to focus on a particular product

semantic differential scale

consists of a series of bipolar adjectives (good/bad) on the ends of odd numbered (usually 5 or 7) continuum, sometimes even numbered option is used to eliminate neutral answer

bases for segmentation

consumer-rooted, consumption rooted

consumer bases

demographics geodemographics personality traits psychographics lifestyle/VALS

projective techniques

disguised tests that contain stimuli, designed to make it easier for consumers to express themselves 1. Word association 2. Sentence completion 3. photo/visual storytelling 4. Role playing

motivation

driving force within individuals that impels them into action - caused by tension due to unfulfilled need

controlled experiment

ensures any difference in the outcome is due to different treatments of the variable under study

simple random sample

every member of population has a known and equal chance of being selected

quantitative research

experimentation/survey research

qualitative research

focus groups/in depth interviews/specific approaches, can use discussion guides

premier positioning

focuses on the brand's exclusivity. Positioning against the competition acknowledges competing brands.

marketing myopia

focuses on the needs of the company instead of defining the company and its products in terms of the customers' needs and wants. It results in the failure to see and adjust to the rapid changes in their markets

usage rate

heavy, medium, light users and nonusers (prospective adopters vs.persistent non adopters)

personal interview survey

high cost, slow speed, high response, difficult geo, problematic bias, difficult supervision

segmentation

identification of distinct segments within a given market or population

organizational consumer

includes profit/non-for-profit biz, govt, and institutions, all must buy products in order to run their organizations

customer satisfaction

individual consumers perception of the product in relation to his/her expectation

quota sample

interviews given # of people in each category (exp= 50 men 50 women)

umbrella positioning

is a statement or slogan that describes the universal benefit of the company's offering. At times, this statement does nor refer to specific products. For example, Campbell's slogan, "Soup is good food," promotes all soups without any reference to the Campbell's brands.

repositioning

is the process by which a company strategically changes the distinct image and identity that its product or brand occupies in consumers' minds. Companies do so when consumers get used to the original positioning and it no longer stands out in their minds. Similarly, when consumers begin to view the old positioning as dull, marketers must freshen up their brands' identities.

psychographics

lifestyles a. Activities, interests, opinions (AIOs) b. Personality traits c. Sociocultural values d. VALS- stands for values and lifestyles

types of attitude scales

likert scales, semantic differential scales, behavior intention scale, rank order scale

online interview survey

low cost, fast speed, self-selected response, excellent geo

mail survey

low cost, slow speed, low response, excellent geographic

test marketing surveys

mail, telephone, personal interview, online

production concept

maintains that consumers are mostly interested in product availability at low prices, marketing objectives are cheap, efficient production and intensive distribution

selling concept

maintains that marketers' primary focus is selling the products that they have decided to produce

marketing concept

maintains that the essence of marketing consists of satisfying consumers needs, creating value, and retaining customers

customer retention

make it in the best interest of customer to stay with a company rather than switch to another company 1. Loyal customers buy more products 2. Loyal customers are less price sensitive and pay less attention to others advertising 3. Servicing existing customers is cheaper 4. Loyal customers spread positive word of mouth and refer other customers

observational research

marketers recognize that the best way to gain an in depth understanding of a relationship bw ppl and products is by watching them in the process of buying or using product

behavior intentions scale

measures likelihood that consumers will act a certain way in the future

systematic random sample

member is selected as random and then every nth is selected

telephone survey

mod cost, immediate speed, moderate response, good geo, moderate bias, easy supervision

physiological observation

monitor respondent's pattern of information processing

likert scale

most popular, check number corresponding to their level of agreement/dis, equal number of choices on either side of neutral choice, benefit- can look at each question individually or the survey as a whole

primary research

new research especially designed and collected for purposes of a current research problem

substitute goals

not as satisfactory as primary goal, may be sufficient to dispel uncomfortable tension

product-specific goals

outcomes that consumers seek by using a given product or service

generic goals

outcomes that consumers seek in order to satisfy physiological and psychological needs

external secondary research

outside firm or company, can be free (library), public/govt data

innate (primary) needs

physiological needs such as food water air sex etc -AKA primary needs bc needed to sustain life

stratified random sample

population is divided into mutually exclusive groups (such as age groups) and then random samples are drawn from each group

cluster sample

population is divided into mutually exclusive groups (such as blocks) and then the researcher draws a sample of groups to interview

non probability sample

population understudy has been predetermined in non random fashion ex: convenience, judgement, quota

key attribute

positioning is based on a brand's superiority on relevant attributes. Un-owned positioning is when a position is not associated with a product from the category.

trio of needs

power, affiliation and achievement -power= individual's desire to control his/her environment - affiliation= desire for friendship, acceptance, belonging -achievement= personal accomplish is the goal

marketing mix

product/service price place promotion

benefit segmentation

products- 1. Functional 2. Value for money 3. Social benefit 4. Positive emotional benefits 5. Negative emotional benefits services - 1. Social benefits 2. Special treatments benefit 3. Confidence benefits

mystery shoppers

professional observers who pose as customers and interact with and provide unbiased evaluations of the company's service personnel to see opportunities for improvement w/o bias

acquired (secondary) needs

psychological needs we learn in response to our culture/environment such as self-esteem, prestige, affection, power, etc

disciplines upon which consumer behavior is built

psychology, sociology, social psychology, cultural anthropology, and economics

consumer panels

purchase data from secondary data providers who collected consumer behavior data from households, etc

qualitative vs. quantitative

qualitative= 1. purpose- designed to provide insight about new product ideas and identify strategies aimed at target markets. 2. Types of questions/methods- open-ended, not structured, etc 3. Main methods- focus groups, depth interviews 4. Sampling methods- small, nonprobability, not usually representative of entire population 5. Analysis- look for "themes" quantitative= 1. Purpose- aimed at describing target market, results used for making strategic marketing decisions 2. Types of questions/methods- close-ended, predefined response choices 3. Main methods- surveys, observation of customers, experimentation, consumer panels 4. Analysis- coded and entered into database, statistical method of analysis

customer value

ratio b/w the customer's perceived benefits and the resources used to obtain those benefits

test marketing

real-world feedback, selection of market area and then introduce product to that area to see actual response

judgement sample

researcher uses his/her judgement to select population members who are good sources for accurate info

probability sample

respondents are selected in a way that every member of the population studied as a known, non-zero chance on being selected ex: simple random sample, systematic sample, stratified sample, cluster sample

reliability

same questions produce same feelings

behavioral targeting

segmentation based on usage behavior

targeting

selecting the segments that the company views as prospective customers and pursuing them

convenience sample

selects most accessible pop members from whom to obtain info (exp- classroom of students)

compliant analysis

should encourage customers to 1. Complain about an unsatisfactory product 2. Provide suggestions for improvements by completing forms asking specific questions beyond the routine 3. Establish listening posts such as hotlines where designated employees listen to comments or ask for comments

needs reflecting ambition, power, accomplishment and prestige

superiority achievement recognition exhibition infavoidance

brand loyalty

tendency of some consumers to continue buying the same brand of goods rather than competing brand

positioning

the process by which a company creates a distinct image and identity for its products, services, and brands in consumers' minds

market segmentation

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

customer loyalty/profitability

tracks costs and revenues of individual customers and then categorizes them into tiers based on consumption behaviors that are specific to the company's offerings 1. Platinum- heavy users, not price sensitive, willing to try new offerings 2. Gold- heavy users, not as profitable bc more price sensitive, ask for discounts, likely to buy from several buyers 3. Iron- spending volume and profitability do not merit special treatment from the company 4. Lead- actually cost the company money bc they claim more attention than merited by their spending and spread negative word of mouth

usage bases

usage rate, usage situation/occasion, benefit segmentation, perceived brand loyalty, and brand relationship

internal secondary research

within company, customer lifetime value profiles