Consumer Behavior (CH 1)

What are some demographic segmentations

1. Age 2. Gender 3. Family Structure 4. Social Class and Income 5. Race and Ethnicity 6. Geography 7. Lifestyles

What are the three stages in the Consumption Process?

1. Prepurchase 2. Purchase 3. Postpurchase A. Desire B. Purchase C. Disposal

80/20 Rule

20 percent of users account for 80 of sales.

Culture od Participation

A belief in democracy; the ability to freely interact with other people, companies, and organizations;open access to venues that allow users to share content form simple comments to reviews, ratings, photos, stories, and more; and the power to build on the content of others from your own unique point of view.

Megacity

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

Pastiche

A mixture of images and ideas

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.

Want

A specific manifestation of a need that personal and cultural factors determine.

Exchange

A transaction in which two or more organizations or people give and receive something of value

Digital Native.

Always-on, never knew a time without cyberspace.

B2C e-commerce

Business to consumer cyberspace sales.

Why is consumer behavior a process?

Consumer behavior is 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. A consumer may purchase, use, and dispose of a product, but different people may perform these functions. In addition, we can think of consumers as role players who need different products to help then play their various parts.

User-generated content

Everyday people voice their opinions about products, brands, and companies on blogs. podcasts, and social networking sites, and even film their own commercials that thousands view on sites such as YouTube.

Net Neutrality

Everyone is guaranteed equal access to the "pipes" we rely on to access cyberspace

Virtual Worlds

Immersive games where people can become part of the game.

Relationship Marketing

Interact with customers on a daily basis and give then solid reasons to maintain a bond with the company over time.

Consumer Behavior

It is 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

Marketers have to understand the wants and needs of different consumer segments.

Market segmentation is an important aspect of consumer behavior. Consumers can be segmented according to many dimensions, including product usage, demographics (the objective aspects of population, such as age and sex), and psychographics (psychological and lifestyle characteristics). Emerging developments, such as the new emphasis on relationship marketing and the practice of database marketing, mean that marketers are much more attuned to the wants and needs of different consumer groups.

Our motivations to consume are complex and varied

Marketers try to satisfy consumer needs, but the reasons people purchase any product can vary widely. The identification of consumer motives is an important step to ensure that a product will satisfy appropriate needs. Traditional approaches to consumer behavior focus on the abilities of products to satisfy rational needs (utilitarian motives), but hedonic motives (e.g., the need for explanation of for fun) also play a key role in many purchase decisions.

Our choices as consumers relate in powerful ways to the rest of our lives.

Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to our understanding of both public policy issues (e.g., ethical marketing practices ) and the dynamics of popular culture.

Consumption Communities

Members share opinions and recommendations about products and services.

Heavy Users

Most faithful users

Horizontal Revolution

Prevalence of social media

Consumer Culture Theory (CCT)

Refers generally to research that regards consumption from a social and cultural point of view rather than more narrowly as an economic exchange.

There are different perspectives regarding how and what we should understand about consumer behavior.

Researchers who study consumer behavior do so both for academic purposes and to inform marketing organizations about practical decisions. We can roughly divide research orientation into two approaches: The positivist perspective emphasizes the objectivity of science and the consumer as a rational decision maker. The interpretivist (or CCT) perspective, in contrast, stresses the subjective meaning of the consumer's individual experience and the idea that any behavior is subject to multiple interpretations rather than to one single explanation.

What are the 4 types of relationships a person might have with a product?

Self-concept attachment Nostalgic attachment Interdependence Love

Need

Something a person must have to live or achieve a goal

Synchronous interactions

The Interactions that occur in real time.

Technology and culture create a new "always-on" consumer

The Web and social media transform the way consumers interact with companies and with each other. Online commerce allows us to locate obscure products from around the world, and consumption communities provide forums for people to share opinions and product recommendations.

Positivism (modernism)

The basic set of assumptions underlying the dominant paradigm at this point in time . 1. The nature of reality goal is an objective, tangible single prediction. 2. Knowledge generation is time-free and context independent 3. The view of causality is the existence of real causes 4. Research relationship is separation between researcher and subject.

Brand Loyalty

The bond between the product and the consumer that is difficult for competitors to break.

Big Data

The collection and analysis of extremely large datasets.

C2C e-commerce

The cyberspace version of consumer to consumer selling

Demographics

The descriptive characteristics of a population.

Many different types of specialists study consumer behavior

The field of consumer behavior is interdisciplinary; it is composed of researchers from many different fields who share an interest in how people interact with the marketplace. We can categorize these disciplines bu the degree to which their focus is micro ( the individual consumer) or macro ( the consumer as a member of groups or of the larger society).

Asynchronous Interactions

The interactions that don't require an immediate response.

Popular culture

The music, movies, sports, books, celebrities, and other forms of entertainment that the mass market produces and consumes.

Interpretivism (postmodernism)

The newer paradigm that questions Positivism. 1. The nature of reality goal is socially constructed and has multiple understandings. 2. The knowledge generated is time bound and context dependent. 3. The view of causality is multiple, simultaneous shaping events. 4. The research relationship is Interactive, cooperative with researcher being part go the phenomenon under study.

Social Media

The online means of communication, conveyance, collaboration, and cultivation among interconnected and interdependent networks of people, communities, and organizations enhanced by technology capabilities and mobility.

Love

The product elicits emotional bonds of warmth, passion, or other strong emotion.

Self- Concept attraction

The product helps to establish the user's identity

Interdependence

The product is part of the user's daily routine

Nostalgic Attachment

The product serves as a link with a past self

Web 2.0

The rebirth of the internet as a social, interactive medium from its original roots as a form of one way transmission from producers to consumers.

Role Theory

The view that much of consumer behavior resembles actions in play

Database marketing

Tracking specific consumers' buying habits closely and crafts products and messages tailored precisely to people's wants and needs based on this information.

Market Segmentation Strategies

an organization targets its product, service or idea only to specific groups of consumers rather than to everybody.