consumer behavior ch. 1-4
what does goals in long-term cultures tend to include
"profits 10 years from now"
consumer literacy
"the ability to find and manipulate text and numbers to accomplish consumption-related tasks within a specific market context in which other skills and knowledge are also employed"
what does goals in short-term cultures tend to include
"this year's profits"
major ethnic sub cultures ranked by percentage
1) hispanic 2) african american 3) Asian
what are the 4 steps to market segmentation
1. Identifying products-related need sets 2. grouping customers with similar need sets 3. describing each group 4. selecting an attractive segment to serve
What are the 4 interrelated parts to a conceptual model of consumer behavior?
1. external influences include culture, reference groups, demographics, and marketing activities. 2. internal influences include perception, emotions, attitudes, and personality. 3.self-concept & lifestyle 4. decision process.
what are the 4 segments that have been identified
1. healthy indulgers, ailing outgoers, healthy hermits, and frail recluses
what are the seven key considerations for each geographic market that a firm is contemplating
1. is the geographic area homogeneous or heterogeneous with respect to culture 2. what needs can this product or a version of it fill in this culture 3. can enough of the people needing the product afford the product 4. what values or patterns or values are relevant to the purchase and use of this product 5. what are the distribution, political, and legal structres for the product 6. in what ways can we communicate about the product 7. what are the ethical implications of marketing this product in the country
what are the main characteristics of guanxi
1. the notion of a continuing recipocal relationship over an indefinite period of time 2. favors are banked 3. it extends beyond the relationship between two parties to include other parties within the social network (it can be transferred) 4. the relationship network is built among individuals not organizations 5. status matters-relationship with a senior will extend to his suordinates but not vise versa 6. the social relationship is prior to and a prerequisite to the business relationship
what are the 2 basic approaches to the measurement of social classes
1. use a combinatin of several dimensions, a multi-item index 2. use a single dimension, a single-item index
Green Naives
11% Environmental issues have not registered with this group in terms of beliefs or actions. Sedentary; Lower income
Skeptical individuals
13% Believe in environmental issues like global warming and carbon emission concerns. Skeptical of corporate green efforts. Very high income and education; Urban coasts; Male
antiglobals
13%-negative toward international brands, don't like brands that preach American values, don't trust multinationals. Higher in the United Kingdom and China. Lower in Egypt and South Aftrica
Proud Traditionalist
14% Environmental efforts forced on keeping home running efficiently and effectively (insulation and water efficient products). Focused on family and hard work. Rural Midwest.
Eco-Chic
14% environmentally concerned, but actions don't match beliefs. More interested in appering to be green to "ride the wave of environmenal consciousness" May try ech-friendly products but tend to return to their favorite non-green brands. Young adults
eco-centrists
16% highly committed to and concerned about environment. Beliefs reflected in their consumption behaviors across a wide range of products Will pay more for eco-friendly products. Cynical about corporate green efforts-viewed as merely marketing tacts. High education and income: Urban South and West
Frugal Earth Mothers
18% Environmental efforts focused on running a more efficient home to save money (buy used, wash in cold water, air dry clothes) Focused on practicality and lowering day-to-day costs. Lower income; Rural; Female
Global Dreamers
23%-positive toward international brands, and buy into their positive symbolic aspects, less concerned about corporate responsibility to the local country. Equally distributed across countries
in the us where do the normal business conversatins occur
3 to 5 feet apart
Global Citizens
55%-positive toward international brands, view them as a signal of higher quality, most concerned about corporate responsibility to the local country
Respectful Stewards
7% Most highly concerned about environment. Beliefs reflected in their consumption behaviors. Will pay more for eco-friendly products. Not cynical about corporate green marketing efforts. Focused on community and culture. Lower education and income. Hispanic: Urban.
eco-villains
7% highly dismissive of environmental concerns. Don't believe global warming exists. Highly negative of corporate green efforts-seen as marketing ploys. Middle income; Male, smaller metro areas.
Global agnostics
9%- don't base decisions on global brand name, evaluate as they would local brands, don't see global brands as special. Higher in the United States and South Africa. Lower in Japan, Indonesia, China and Turkey
what is a defining characteristic of american society
A strong emphasis on individualism
what are the steps in Selecting a target market
A) grouping customers with similar need sets. B) selecting an attractive group to target. C) describing each group. D) identifying product-related need sets.
what is included in marketing communications?
A) price B) advertising C) public relations D) packaging
major sources of immigration
Asia-36.4% mexico- 14.1% europe- 11.5%
global teenage culture
Mass media Less and less culture is US centric only
is american culture soup or salad?
Soup
T/F China has put legal restrictions on the use of sex appeals in ads
True
T/F Compared with US and Australian ads, ads in Hong Kong and India contain few sex appeals.
True
Ethical Issues in cross culture marketing
Using weak government regulations to market cigarettes to youth in other countries. Taking advantage of cheap labor.
greenwashing
a firm promotes environmental benefits that are unsubstantiated and which they don't deliver
age cohort or generation
a group of persons who have experience a common social, political, historical, and economic environment
generation, or age cohort
a group of persons who have experienced a common social, political, historical, and economic environment
modern
a marriage in which husband and wife share responsibility. both work, and they share homemaking and child care responsibilities
traditional
a marriage in which the husband assumes the responsibility for providing for the family and the wife runs the house and takes care of the children
market segment
a portion of a larger market whose needs differ somewhat from the larger market
subculture
a segment of a larger culture whose member share distinguishing values and patterns of behavior
What is the field of consumer behavior
a 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.
index of social position (ISP)
a two-item index that is well developed and widely used
Instrumental materialism
acquisition of things to enable one to do something
product position
an image of the product or brand in the consumer's mind relative to competing products and brands
nonverbal communication systems
arbitrary meaning a culture assign actions, events and things other than words
regional subcultures
arise as a result of climatic conditions, the natural environment and resources, the characteristics of the various immigrant groups that have settled in each region, and significant social and political events
how do most Latin Americans, Asians, and Indians tend to view time
as being less discrete and less subject to scheduling
ascribed role
based on an attribute over which the individual has little or no control
purchasing power parity (PPP)
based on the cost of standard maarket basket of products bought in each country
gender roles
behaviors considered appropriate for males and females in a given society
balancer
believes in CRM but generally doesn't act accordingly
monochronic time perspective
believing that a person does one thing at a time, strong orientation toward the present and short-term future
pre-depression generation
born before 1930. they are conservative and concerned with financial and personal security
depression generation
born between 1930 and 1945. major market for upscale children's furniture, toys, strollers, car seats, and clothing
generation x
born between 1965 and 1976 first generation to be raised mainly in dual-career households
generation y
born between 1977 and 1994 rivaling the baby boom generation also called the echo boom
generation z
born between 1995 and 2009 labeled the digital natives
norms
boundaries that culture sets n behavior/rules that specific or prohibit certain behaviors in specific situations
attribution-oriented
concerned about motives behind CRM
collective activity
consumers will look toward others for guidance in purchase decisions and will not respond favorably to promtional appeals to "be an individual"
voluntary simplicity
consumers' efforts to reduce their reliance on consumption and material posessions
time percpective
culture's overall orientation toward time
demographics
describe a population in terms of its size, struture, and distribution
structure
describes the society in terms of age, income, education, and ocupation
Shoppers who care about mall essentials and brand-name merchandise are known as ________ shoppers.
destination
what does developing regulatory guidelines involve?
developing policies, guidelines, and laws to protect and aid consumers,
religious subcultures
different religions that prescribe differing values and behaviors
working-class aristocrats
dislike the upper-middle class and prefer products and stores positioned at their social-class level
skeptic
doubts sincerity or effectivness of CRM
socially concerned
driven by desire to help
what does creating more informed individuals involve?
educating consumers about their own consumption behaviors as well as marketers' efforts to influence it in such a way as to create a more sound citizenship, effective purchasing behavior, and reasoned business ethics
baby boom generation
end of wwII and 1964 large size makes them very important to marketers
single-item indexes
estimate social status on the basis of a single dimension such as education, income, or occupation
consumer cost
everything the consumer must surrender in order to receive the benefits of owning/using the product.
enviropreneurial marketing
evironmentally vriendly marketing practices strategies, and tactics initiated by a firm to achieve a competitive diffentiation
class to mass
expanding opportunities for less affluent consumers to afford luxury.
Marketing strategy ends with conducting a market analysis.
false
Most economically developed societies are legitimately referred to as marketing societies.
false
Self-concept is a major step in the consumer's decision process.
false
The first step in the consumer decision process is budget setting.
false
What is market analysis
gathering data and tracking trends related to the company, competitors, conditions, and consumers.
mature market
generally defined as consumers 55 years of age and over
traditional housewife
generally married. prefers to stay at hom. very home and family centered. desired to please husband and children. seeks satisfaction and meaning from household and family maintenance as well as volunteer activities. experiences strong pressure to work outside the home and is well aware of forgone income opportunity. feels supported by family and generally content with role.
trapped housewife
generally married. would prefer to work, but stays at home because of young children, lack of ouside opportunites, or family pressure. seeks satisfaction and meaning outside the home. does not enjoy most household chores. has mixed feelings about current status and is concerned about lost opportunities.
frail recluses
have accepted their old-age status adn have adjusted their lifestyles to reflect reduced physical capability and social roles
ailing outgers
have health problems that limit their physical abilities, but their positive outlook means they remain active within financial constraints.
distribution
having the product available where target customers can buy it
are cultures homogenous or heterogenous
heterogenous
social class system
hierachical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles
success dimension
higher value on possessions as a means for demonstrating sucess
lifestyle
how one lives
what are some additional communication factors that can cause problems
humor, style and pace
what do you need to be award when negotioning with a Japenese company
in negotiations where the buy has more power, buyers are more likely to use that power to extract higher prices in the US, not true in Japan
Terminal materialistm
in the acquisition of item for the sake of owning the item itself
marketing communications
includes advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products.
Injurious consumption occurs when
individuals make consumption decisions that have a negative impact on their long-run well being.
Green Marketing
involves developing products whose production, use or disposal is less harmful to the environment than the traditional version of the product, developing products that have a positive impact on the environment or trying the purchase of a product to an environmental organization or event
What is marketing strategy
involves setting appropriate levels for the marketing mix as a function of the segments being targeted and the market conditions that exists.
digital savvy
leading-edge digital users who are early adopters and diffusers of information related to technology in terms of information related to technology in terms of techology ownership, internet usage, and cell phone feature usage
guanxi
literally translated as personal connections/relationships on which an individual can draw to secure resources or advantages when doing business as well as in the course of social life
does India, Hungary, Brazil, Hong Kong and China have short-term orientation or long term orientation?
long-term orientation
What are the five stages that interplay between consumer behavior and marketing strategy?
market analysis, market segmentation, marketing strategy, consumer decision process, outcomes at the individual, firms, and societal level
what are two applications of consumer behavior?
marketing strategy & informed individuals
what 4 areas can consumer behavior be applied
marketing strategy, regulatory policy, social marketing, and creating informed individuals
Cause markeing or cause-related marketing (CRM)
marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause
career working women
married or single. prefers to work. derives satisfaction and meaning from employment rather than, or in addition to , home and family. experiences some conflict over her role if younger children are at home, but is generally content. views home maintenance as a necessary evil. feels pressed for time.
trapped working woman
married or single. would prefer to stay at home, but works because of economic necessity or social or family pressure. does not derive satisfaction or meaning from employment. Enjoys most household activities, but is frustrated by lack of time. feels conflict about her role, particularly if younger children are home. resents missed opportunites for family, volunteer, and social activities. is proud of financial contribution to family
what are the problems of literal translations and slang expressions
means associated with words, the absence of some words from various languages, and the difficulty of pronouncing certain words
Tiger leadership
new leadership style prowling around Southeast Ashia which combines the brashness of Western enterpreneurial style with a tireless Asian work ethic
Does verbal language translation generally present major problems as long as we are careful
no
gerontographics
one segmentation approach to the mature market that incorporates agin processes and life events related to the physical health and mental outlook of older consumers.
gerontographics
one segmentation approach to the mature market that incorporates aging processes and live events related to the physical health and mental outlook of older consumers
cognitive age
one's perceived age, a part of one's self-concept.
social class and social standing are used interchangeably to mean societal rank
one's positon relative to other on one or more dimensions valued by society
polychronic time perspective
orientation toward the present and the past/time is less discrete and subject to scheduling
achievement role
performance criteria over which the individula has degree of control
healthy indulgers
physically and mentally healthy and are thus active, independent, and out to enjoy life
healthy hermits
physically healthy, but life events, often the death of a spouse, have reduced their self-concept and they have become withdrawl
Centerality dimension of materialism
place a higher value on the importance of obtaining possessions
demographics
population's size, distribution and structure
what are the 6 major generations functioning in America today
pre-Depression, depression, baby boom, generation x, generation y, and generation z
environmental-oriented values
prescribe a society's relationship to its economic and technical as well as its physical environment
What are the steps in the consumers decision process
problem recognition, information search, alternative evaluation, purchase, use and post purchase evaluation.
cohort analysis
process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.
nouveaux riches
professional athlete who owns 5 or 10 luxury cars, multiple homes, and so forth
conspicuous consumption
purchase and use automobiles, homes, yachts, clothes, and so forth primarily to demonstrate their great wealth
service
refers to auxiliary or peripheral activities that are performed to enhance the primary product or primary service
structure of a population
refers to its age, income, education, and occupation makeup
social crystalization
refers to the consistency of individuals and families on all relevant status dimensions
size
refers to the number of individuals in the society
distribution
refers to the physical location of individuals in terms of geographic region and rual, suburban and urban location
other-oriented values
reflect a society's view of the appropriate relationships between individuals and groups within a society
Other-oriented values
reflect a society's view of the appropriate relationships between individuals and groups within that society
self=oriented values
reflect the objectives and approaches to life that the individual members of society find desirable
what are the 3 catergories of values that affect behaviors
related to self, others, and the environment
etiquette
represents generally accepted ways of behaving in social situations
what does developing marketing strategy involve?
setting levels of the marketing mix based on an understanding of the market and segments involved to create desirable outcomes
Does the US and the United Kingdom and Australia have short-term orientation or long term orientation?
short-term orientations
multi-item indexes
take into account numerous variables simultaneously and weight these according to a scheme that reflects societal views
price
the amount of money one must pay to obtain the right to use the product
marketing stratergy
the answer to the question, How will be provide superior customer value to our target market?
what is social marketing
the application of marketing strategies and tactics to alter application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole.
social marketing
the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole
Culture
the complex whole that includes knowledge, belief, art, law, morals, customs and any other capabilities and habits acquired by humans as members of society.
Power distance
the degree to which people accept inequality in power, authority, status and wealth as natural or inherent in society
customer value
the difference between all the benefits derived from a total product and all the costs of acquiring those benefits.
what is Customer value
the difference between all the benefits derived from a total product and all the costs of securing those benefits.
What do you need to be aware of in verbal communication when traveling in Britain or Australian
the differences in pronunciation, timing, and meaning might be differerant
"meishi"
the exchange of business cards when two people meet
what determines degree to which culture influence behavior
the extent the individual identifies with that culture
social class system
the hierarchical division of a society into relatively permanent and homengeous groups with respect to attitudes, values, and livestyles.
personal space
the nearest that others can come to you in various situations without your feelings uncomfortable
cohort analysis
the process of describing and explaining the attitudes, values, and behaviors of an age group as well predicted its future attitues, values and behaviors.
marketing mix
the product, price, communications, distribution, and services provided to the target market
sanctions
the result of violations of cultural norms/penalties ranging from mild social disapproval to banishment from the group
target market
the segment of the larger market on which we will focus our marketing effort
gender identity
the traits of feminity (expressive traits such as tenderness and compassion) and masculinity (instrumental traits such as agressivness and dominance)
ethnic subculture
those whose members' unique shared behaviors are based on a common racial, language or national background
what are the seven variable that influence nonverbal communications
time, space, symbols, relationships, agrements, things, and etiquette
self-concept
totality of an individual's thoughts and feelings about him or herself
A segment is a portion of a larger market whose needs differ somewhat from the larger market.
true
Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experience, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
true
If a company's customers value variety, the firm can provide superior value by offering more variations of its product.
true
One of the elements marketers use in their evaluation of the attractiveness of various segments is the segment size.
true
T/F Compared with Americans, Korean and Chinese consumers have traditionally been much less comfortable dealing with new situations or ways of thinking
true
T/F cultural creatives are more likely to cross traditional ethnic boundaries in seeking out products
true
t/f a tightly defined social class system does not exist in the US
true
t/f at present the rate of population growth is moderate, average age is increasing and souther and wersern regions are growing
true
t/f in many Latin American, Asian, and middle east countries, virtually all prices are negotiated prior to sale, including those for industrial products
true
t/f use of credit is lower in long-term oriented cultures, whee cash and debit usage is more common
true
using Coleman and Rainwater's system, describe American society in terms of what 7 major categories
upper-upper, lower-upper, upper-middle, middle, working class, upper-lower, and lower-lower
the meaning of time varies between cultures in what two major ways
what we call time perspective and interpretations assigned to specific uses of time
injurious consumption
when individuals or groups make consumption decision that have negative consequences for their long-run well-being
gender
whether a person is biologically male or female
cultural values
widely held beliefs that affirm what is desirable
secular society
without religion, separates church and state, does not endorse religion