BUS 359 Consumer Behavior Chapter 1

Three stages in consumption

1. Pre-purchase stage: Customer becomes conscious of product. 2. Service encounter stage: Customer purchases product 3. Post-purchase stage: Producer of product collects feedback from customers to help improve and enhance product.

What are descriptive characteristics of a population, or demographics?

1. age 2. gender 3. income 4. occupation

B2C e-commerce C2C e-commerce

1. businesses selling to consumers 2. consumer to consumer activity

80/20 rule

20% of users account for 80% of sales.

Megacity

A metropolitan area with a total population of more than 10 million people.

What is a consumer?

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

Paradigm

A set of beliefs that guide our understanding of the world.

Exchange

A transaction in which two or more organizations or people give and receive something of value. *Integral part of marketing*

Market segmentation strategies

An organization that targets its product, service. or idea to specific groups of consumers.

Interpretivism

Argues that our society emphasizes science and technology too much. (opposite of positivism)

Horizontal revolution

Characterized in part by the prevalence of social media

Heavy users

Companies refer to their most faithful customers as heavy users.

The U.S Census Bureau

Major source of demographic data on U.S. families.

Basic marketing concept

Organizations exist to satisfy needs.

Positivism

Regarding the world as rational. An ordered place with a clearly defined past, present, and future.

Consumer Culture Theory (CCT)

Research that regards consumption from a social and cultural point of view.

Big Data

The collection and analysis of extremely large datasets

Consumption communities

The growth of the web has created thousands of online consumption communities, where members share opinions and recommendations about anything. Ex: Fantasy league line-ups, iPhone apps.

Role Theory

The sociological perspective takes the view that consumer behavior resembles actions in a play.

What is consumer behavior?

The study of individuals, groups, or organizations and the processes they use to select, secure use and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Brand loyalty

This is a bond between product and consumer that is difficult for competitors to break.

Database marketing

Tracking specific consumers' buying habits and crafts products and messages specific to their wants and needs. Ex: Walmart

Influencer

When he or she recommends certain products without actually buying or using them. Ex: Children influence parents on what to purchase.

Relationship marketing

develop a relationship with customers and give them solid reasons to maintain a bond with the company over time.

Self-concept attachment

the product helps to establish the users 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