Consumer Behavior Chapter 2

Umbrella

A statement or slogan that describes the universal benefit of the company's offering Example: Campbell's slogan: soup is good food promotes all of Campbell's soups

Benefit segmentation

Based on the benefits that consumers seek from products and services. It represents unfilled needs, they find a unique and prominent benefit, results in loyalty to the brand

Each of the bases for segmentation

Behavioral (evidence based, determined by direct questioning, categorized using objective and measurable criteria, and consists of) 1. Consumer-intrinsic factors (age, marital status, education, gender, income) 2. Consumption based factors (quantity of product purchased, frequency of leisure activities, frequency of buying product) Cognitive (abstracts in consumer's minds, determined by psychological attitudinal questioning, no single definition) 1. Consumer-intrinsic factors (personality types, cultural values, attitudes towards social issues and politics) 2. Consumption specific (attitudes / preferences)

Targeting

Behavioral targeting consists of sending consumers personalized and prompt offers and promotional messages designed to reach the right consumers and deliver them to highly relevant messages at the right time and more accurately than when using conventional segmentation techniques -Tracking online navigation -purchase behavior -predictive analysis

Perceptual mapping

Constructing a map-like diagram representing consumers' perceptions of competing brands along relevant product attributes. Shows: 1. How consumers perceive their brands in relation to competition 2. How to determine the direction for altering undesirable consumer perception of their brands. 3. Gaps, in the form of un-owned perceptual positions, that represent opportunities for developing new brands or products

Perceived brand loyalty and brand relationship

Consumer's loyalty levels to services correlate positively with the benefits consumers believe they have received

Psychographics

Consumers' activities, interests, and opinions; no standardized definitions- versatile. Create statements and asking respondents to indicate their level of agreement or disagreement.

Demographics

Divides consumers to age, gender, ethnicity, income, wealth, occupation, marital status, household type and size, geographic 1. Easy to classify people 2. Cost-effective to locate and reach 3. Can identify new segments created by shifts in age, income, and location 4. Determines behaviors, attitudes, and media exposure patterns

Criteria for effective targeting

Identifiable (segments based on common / shared needs), sizable (must have enough customers), stable and growing (avoid fickle segments), reachable (communicate with consumers effectively and economically), and congruent with marketer's objectives and resources (can't reach every market segment)

Positioning and repositioning

Image and unique identity Process: 1. define market 2. identify product's key attributes 3. research how customers perceive competition 4. determine target market's preferred combination of attributes 5. develop a positioning concept 6. create a positioning statement

Un-owned positions

Perception is not a physical object and cannot be owned. Un-owned means a perception that is not clearly associated with a brand or product. It must be in the mind's of the consumers, not the marketers

Key attribute

Positioning based on relevant attributes often expresses the brand's superiority

Framework

Primary motivations Ideals (guided by knowledge and principles), achievement (demonstrate success to their peers), self-expression (desire social or physical activity, variety, and risk) [low innovation, low resources] Believers (conservative, conventional with traditional beliefs), thinkers (mature, satisfied, comfortable), strivers (trendy, fun-loving, seek approval), achievers (goal-oriented, committed to career and family), makers (building houses, raising children, fixing cars), experiencers (young, enthusiastic, cool) [high resources, high innovation] Survivors (narrow minded, world changes too quickly), innovators (successful, sophistocated, curious)

Segmentation

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

Usage occasion

Recognizes that consumers purchase some products for specific occasions Holidays, seasons

Usage rate

Reflects the differences among heavy, medium, and light users, and nonusers of a specific product, service, or brand; targeting heavy users is a common strategy, but it is very expensive. Rate of usage is related to product awareness status- degree of consumer's awareness of the product and its features- and product involvement- degree of personal relevance

Positioning against competition

Some positioning statements acknowledge competing brands

Repositioning

The process by which a company strategically changes the distinct image and identity that its product or brand occupies in the consumers' minds.

Premier

This strategy focuses on the brand's exclusivity

Personality traits

Through personality tests, researchers can study consumers' personality characteristics and apply them in segmenting markets Example: open minded and perceive less risk than others in trying new things are innovators

VALS

Values and lifestyles -Values and goals (sense of belonging, self-fulfillment, warm relationship with others) -Attitudes towards Life (financial security, quiet evening at home or go to a party, social status importance) -Apparel & Fashion -Gift giving -Control of life (speak in front of group, making own decisions) -Leisure activities (hunting, shooting, movies, sporting event)

Geodemographics

Where a person lives determines consumer behavior; people who live close together are likely to have similar financial means, tastes, preferences, lifestyles, and consumption habits