midterm: 1

Why is it important for businesses to learn about their heavy users?

80/20 rule: 20 percent of users account for 80 percent of sales. Faithful customers will comprise a very important market segment.

The economics-of-information perspective argues that advertising is important. Why?

Advertising reduces the amount of search time the consumer has to give up in order to acquire a product or service. Advertising offers important information for the customer, acting as a service.

Give two examples of important legislation that relates to American consumers.

Child Protection Act: Prohibits the sale of dangerous toys and other items. 1966 Federal Cigarette Labeling and Advertising Act: requires cigarette packages to carry a warning label from the Surgeon General 1967

What is popular culture, and how does this concept relate to marketing and consumer behavior?

Consisting of music, movies, sports, books, celebrities, and other forms of entertainment that the mass market produces and consumes, is both a product and inspiration for marketers. GoPro sponsors athletes.

What is the difference between C2C and B2C e-commerce?

Consumers selling to consumers as opposed to the traditional business selling to consumers. ebay, blogs, craigslist

What is role theory and how does it help us understand consumer behavior?

Consumers take on roles as if in a play, complete with props, lines and costumes. To put on good performance they consume what's necessary to live up to their role. People often take on several roles (workplace, home, church, sports, school).

Name two different disciplines that study consumer behavior. How would their approaches on the issue differ?

Demography: product role in the measurable characteristics of a population. Microeconomics: product role in the allocation of individual or family resources. 1. Families living Falmouth are likely to buy a BMW than a family living in Buxton. 2. Concentration of family incomes exceeding $150k/year live in Falmouth.

Define social marketing and give an example of the technique.

Marketing a product on the grounds of social change. Detergent company donating books to support literacy, beer companies sponsoring campaigns against drunk driving.

What is database marketing?

Marketing that involves tracking specific consumer buying habits. Wal-Mart discovered interesting buying habit of customer who were stocking up before a hurricane truck. Beer and pop-tart sell a lot.

What is market segmentation? Three Examples:

Marketing to specific groups of consumers who share well-defined and relevant characteristics. Pepsi: for those who think young.

What are the major differences between positivist and interpretivist paradigms in consumer research.

Positivist may argue with quantifiable evidence whereas an interpretivist may argue with qualitative evidence.

What is the primary difference between Transformative Consumer Research and other kinds of consumer research?

Promotes research projects that include the goal of helping people or bringing about social change. Anti tobacco commercials try to reduce smoking consumption. Marlboro markets to promote this action by making it seem like its cool / sexy.

What do we mean by the term global consumer culture?

Sophisticated marketing strategies that unite people around the world by their common devotion to brand name consumer goods, movie stars, celebrities and leisure activities. Coke advertises worldwide, recognizable in most urban areas.

What are demographics? Three Examples:

The observable measurements of a population's charactoristics, such as age distribution, birthrate, and income

Provide the definition of consumer behavior.

The process involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

This chapter states that "people often buy products not for what they do but what they mean." Explain the meaning of this statement and provide an example.

There's more to the product than the item or service itself. If you buy an Apple computer, it means you will get excellent repair and service.

What do we mean by exchange?

Transaction in which one or more organizations or people give and receive something of value, integral part of marketing.