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66 Cards in this Set
- Front
- Back
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Consumer Behavior
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Behavior consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satusfy their needs.
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Personal Consumer
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Buys goods and services for his or her own personal use, for the use of the household, or as a gift for a friend. The products are bought for the final use by the individuals referred to as the end users or ultimate consumers.
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Organizational Consumer
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Includes profit and not-for-profit businesses, government agencies (local, state, and national), and institutions (schools, hospitals, and prisons), all of which must buy products, equipment, and services in order to run their organizations.
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Marketing Concept
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A business orientation that evolved in the 1950s through several approaches toward doing business: the production concept, the product concept, and the selling concept. Based on the premise that the marketer should make what it can sell, instead of trying to sell what it has made.
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Production Concept
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Assumes that consumers are mostly interested in product availability at low prices. (Developing countries)
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Product Concept
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Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features.
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Selling Concept
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A marketer's primary focus in selling the product(s) that it has unilaterally decided to produce. Typically utilized by marketers of unsought goods (life insurance) and political parties "selling" their candidate.
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Market Segmentation
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The understanding that all consumers are not alike and that it is important to segment the market.
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Consumer Research
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The process and tools used to study consumer behavior.
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Market Targeting
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The selection of one or more of the segments identified for the company to pursue.
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Positioning
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The development of a distince image for the product or service in the mind of the consumer, an image that will differentiate the offering from competing one and squarely communicate to the target audience that the particular brand or service will fulfill their needs better than competing brands.
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Marketing Mix
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Consists of a company’s service and/or product offerings to consumers and the methods and tools it selects to accomplish the exchange. (The four Ps: product, price, place, promotion).
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Three drivers of successful relationships between marketers and every customer
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Customer Value
Customer Satisfaction Customer Retention |
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Customer Value
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The ratio between the customer’s perceived benefits (economic, functional and psychological) and the resources (monetary, time, effort, psychological) used to obtain those benefits.
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Customer Satisfaction
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The individual’s perception of the performance of the product or service in relation to his or her expectations.
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Customer Retention
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Providing value to customers continuously so they will stay with the company rather than switch to a competitor.
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Narrowcasting
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A method that enables them to develop and deliver more customized message to increasingly smaller markets on an ongoing basis.
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Digital Technologies
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Allows much greater customization of products, services, and promotional messages than older marketing tools.
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Societal Marketing
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Requires that all marketers adhere to principles of social responsibility in the marketing of their goods and services.
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Stages of Consumer Decision Making
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1. Input Stage: Influences the consumer’s recognition of a product need
2. Process Stage: Focuses on how consumers make decisions 3. Output Stage: Consists of purchase behavior and post-purchase evaluation |
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Quantitative Research
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Descriptive in nature and is used by researchers to understand the effects if various promotional inputs on the consumer. Research methods include:
Experiments Survey techniques Observation Closed-ended questions |
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Qualitative Research
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Methods include depth interviews and focus groups. Research methods include:
Open-ended questions Depth interviews Focus groups |
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Secondary Data
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Any data originally generated for some purpose other than the present research objectives
Internal data is information generated in-house External data consists of any data collected by an outside organization |
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Primary Data
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The original data performed by individual researchers or organizations to meet specific objectives.
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Likert Scale
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An attitude scale that allows consumers to choose a response or number that corresponds with their level of agreement or disagreement.
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Market Segmentation
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Dividing a market into subsets of consumers with common needs or characteristics.
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Mass Marketing
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Offering the same product and marketing mix to all consumers.
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Geographic Segmentation
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Region (New England)
City size Density of area (urban, suburban, or rural) Climate (humid) |
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Demography
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Age
Gender Marital status Income Education Occupation |
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Psychological Segmentation
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Needs/motivations (e.g. security)
Personality (e.g. extrovert) Perceptions (e.g. low-risk) Learning (e.g. low-involvement) Attitudes (e.g. positive) |
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Psychographic
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Variables include attitudes, interests, and opinions (AIOs); couch potatoes, thrill seekers
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Sociocultural Segmentation
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Family life cycle (e.g. empty-nesters)
Social class (e.g. upper class) Culture (National) Subculture (race/ethnic, profession) Religion |
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Use-related Segmentation
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Rate of usage (heavy vs. light)
Awareness status (aware vs. unaware) Brand loyalty (brand loyal vs. brand switchers) |
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Usage-situation segmentation
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Segmenting on the basis of special occasions or situation (“When I’m away on business, I try to stay at a […] hotel.”)
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Benefit Segmentation
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Segmenting on the basis of the most important and meaningful benefit (toothpaste: Whitens teeth? Cavity protection? Fun? Doesn’t bother sensitive gums?)
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Selecting a Segment
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Measurability- How big is the market? Possible to find out how many people there are in the segment? Where are they?
Accessibility- Can we reach the segment? Are there disruption outlets where we can sell our products, are there special interest magazines where we could advertise? Sustainability- Is the segment big enough to be worthwhile? Are their needs sufficiently unmet by existing products/services for them to be prepared to pay more for out product/service? Is the segment growing? Congruity- Are their needs sufficiently similar? Does our product/service meet the needs better of a larger group than current products/services? |
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Opinion Leadership
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Word of mouth communication
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Motivation Theory
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Suggests that people may provide information or advice to others to satisfy some basic need of their own.
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Market Maven
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A consumer who possesses a wide range of information about may different types of products, retail outlets, and other dimensions of markets.
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Continuous Innovation
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Has the least disruptive influence on established patterns. It involves the introduction of a modified product rather than a totally new product.
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Dynamically Continuous Innovation
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Somewhat more disruptive than a continuous innovation but still does not alter established behavior patterns. It may involve the creation of a new product or the modification of an existing product.
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Discontinuous Innovation
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Requires consumers to adopt new behavior patterns. Examples include airplanes, automobiles, fax machines, and the Internet.
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Characteristics that Influence Consumer Acceptance of New Products
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Relative advantage- the degree to which potential customers perceive a new product as superior to existing substitutes
Compatibility- the degree to which consumers feel a new product is consistent with their present needs, values, and practices. Complexity- the degree to which a new product is difficult to understand or use. Trialability- the degree to which a new product is capable of being tried on a limited basis. Observability- the ease with which a product’s benefits or attributes can be observed, imagined, or described |
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Adopter Categories
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Innovators
Early Adopters Early Majority Late Majority Laggards |
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Stages in Adoption Process
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Awareness
Interest Evaluation Trial Adoption (Rejection) |
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Three levels of consumer decision making
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Extensive problem solving
Limited problem solving Routinized response behavior |
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Extensive problem solving
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Decision making efforts by consumers who have no established criteria for evaluating a product category or specific brands in that category, or have not narrowed the number of brands to a manageable subset.
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Limited Problem Solving
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A limited search by a consumer for a product that will satisfy his or her basic criteria from among a selected group of brands.
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Routinized Response Behavior
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A habitual purchase response based on predetermined criteria.
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Heuristics
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Shortcut decision rules to facilitate the decision-making process.
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Information overload
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Use decision rules to cope with exposure to too much information
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Mood
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Feeling state or state of mind
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Evoked Set or Consideration Set
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The specific brands (or models) a consumer considers in making a purchase within a particular product category.
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Inept Set
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Consists of brands (or models) the consumer excludes from purchase consideration because they are felt to be unacceptable.
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Inert Set
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Consists of brands (or models) the consumer is indifferent towards because they are not perceived as having any particular advantages.
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Compensatory Decision Rule
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A consumer evaluates brand or model options in terms of each relevant attribute and computes a weighted or summated score for each brand.
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Noncompensatory Decision Rules
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Do not allow consumers to balance positive evaluations of a brand on one attribute against a negative evaluation on some other attribute.
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Conjunctive Decision Rule
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The consumer establishes a separate, minimally acceptable level as a cutoff point for each attribute.
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Disjunctive Rule
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The “mirror image” of the conjunctive rule. In applying this decision rule, the consumer establishes a separate, minimally acceptable cutoff level for each attribute (which may be higher than the one normally established for a conjunctive rule).
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Lexiographic Design Rule
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The consumer first ranks the attributes in terms of perceived relevance or importance and then compares the various alternatives in terms of the single attribute that is considered the most important.
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Affect Referral Decision Rule
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Refers to the consumer selecting the brand with the highest perceived overall rating
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Purchase Behavior
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Involves two types of purchases: trial purchase and repeat purchases, which usually signifies that a product meets with the consumer’s approval and that the consumer is willing to use it again
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Post-purchase evaluation
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An assessment of a product based on actual trial after purchase.
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Gifting Behavior
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Can be thought of as the gift exchange that takes place between a giver and a recipient
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Consumption Process
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Consists of three stages: the input stage that establishes the consumption set and consuming style; the process of consuming and possessing, which includes using, processing, collecting, and disposing of things; and the output stage, which includes changes in feelings, moods, attitudes, and behavior toward the product or service based on personal experience.
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Relationship Marketing
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Fosters usage loyalty and a commitment to their company’s products and services.
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