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95 Cards in this Set
- Front
- Back
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What is Consumer Behavior?
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Processes a consumer uses to:
make purchase decisions use goods or services includes factors that influence purchase decisions Psychological factors Demographic factors Market Factors |
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Consumer Behavior 2 main themes
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1) consumers make purchase decisions
2) consumers use and dispose of produce |
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5 stages consumer decision making process
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-need recognition
-information search -evaluation of alternatives -purchase -postpurchase behavior |
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is order important in the decision making process
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no, sometimes process doesn't get finished (no buy)
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DEFINE: Need Recognition
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result of an imbalance between actual and desired states
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what is related to need recognition that creates it and define them both
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stimuli
internal stimuli - occurrences you experience (stomach growl ) external stimuli - outside source (color, design, advertisement, etc) |
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4 ways marketing managers try to created an unfulfilled need aka a want
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Usually done through ads and promotions
Point out when a current product isn’t performing properly Point out the consumer is running out of an product Point out how another product seems superior to the one currently used |
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DEFINE: Internal Information Search
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recalling information stored as a memory
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DEFINE: external information search and state the 2 types
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Seek information in outside environment
Non-marketing controlled Marketing controlled |
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DEFINE: nonmarketing controlled information source
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not associated with advertising or promotion (personal experience, personal sources, public sources)
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DEFINE: marketing controlled information source
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product information source that originates with marketers promoting the product (media advertising)
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Need Less information:
Risk? Knowledge? Product Experience? Level of Interest? |
Less Risk
More Knowledge More experience Low interest |
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Need More information:
Risk? Knowledge? Product Experience? Level of Interest? |
More Risk
Less Knowledge Less product experience high level of interest |
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DEFINE: evoked set
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group of brans, resulting from an information search, from which a buyer can choose
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3 methods to use in evaluation of alternatives
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1) pick product attribute and rid all that don't have it
2) cutoffs - mins and maxes on attributes 3) ranking |
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4 factors in decision making process
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cultural
social individual pyschological C-SIP |
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DEFINE: cognitive dissonance
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inner tensions that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
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Marketers can minimize through:
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Effective Communication
Follow-up Guarantees Warranties |
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Consumers can reduce dissonance by:
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Seeking information that reinforces positive ideas about the purchase
Avoiding information that contradicts the purchase decision Revoking the original decision by returning the product |
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DEFINE: involvement
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Involvement is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.
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Why is involvement important?
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One of the main determinants of the type of decision a consumer is making
Clues marketer in to what kind and how much information the consumer needs to decide (type and extent of information search) |
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What are the factors that affect levels of involvement?
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-previous experience
-interest -perceived risk of negative consequences -social visibility -situation |
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High involvement purchases require:
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extensive and informative promotion to target market
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low involvement purchases require
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in store promotion, eye catching package design and good displays
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social influences on buying decisions
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-reference group
-opinion leaders -family members |
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2 Types of Reference Groups
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-Direct (face to face)
-Indirect (non-membership) |
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2 Types of Direct Reference Groups
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Primary (informal group...family, friends, co workers)
Secondary (large formal group..clubs, organizations) |
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2 types of indirect reference groups
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-aspirational (groups you'd like to joion but must conform to norms)
-non-aspirational (group you want to avoid) |
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Describe opinion leaders and give 5 examples
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Often first to try new products
Opinion leaders can be “manufactured” by marketers Movie stars, sports figures, celebrities Group sanction or association Friends, relevant social groups examples: peer groups group referrals endorsements sports figures celebrities |
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Social Influence: Family Members
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Most important social institution for many consumers
Family members assume different roles (initiator, influencer, decision maker, purchaser, consumer) Have to make sure you understand which one(s) you are marketing to Ex. breakfast cereal |
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Purchase Roles in a Family
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Initiators
Influencers Decision Makers Purchasers Consumers Children Influence Purchase Decisions |
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study chart with purchase decision maker vs. consumer
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slide 32
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chap....7
Target Market Selection Process |
Select Market to study
-choose bases for segmentation -select descriptors -profile and analyze segments -select target markets -design implement maintain marketing mix |
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What is Market Segmentation
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process of dividing a market into meaningful relatively similar identifiable segments or groups
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what is establishing product position
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creating a mental image of the product in the minds of the consumer
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what is market? what is market segment?
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Market - People or organizations with needs or wants and the ability and willingness to buy
Market Segment - A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. |
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Why segment? (5 piece flow chart)
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Market segmentation -- more precise definition of customers needs and wants -- more accurate marketing objectives --- improved resource allocation -- better marketing results
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4 Criteria for segmentation
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1) substantiality
2) identifiability measuribility 3) accessibility 4) responsiveness |
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DEFINE: Substantiality as it relates to segmentation
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Segment must be large enough (or important enough) to warrant a special marketing mix.
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DEFINE: Identifibility Measurability as it relates to segmentation
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Segments must be identifiable and their size measurable.
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DEFINE: Accessibility as it relates to segmentation
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Members of targeted segments must be reachable with marketing mix.
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DEFINE: Responsiveness as it relates to segmentation
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Unless segment responds to a marketing mix differently, no separate treatment is needed.
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4 Bases for Segmentation
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1) Geography
2) demographics 3) psycho graphics 4) behavioral criteria |
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Criteria for Geographic Segmentation
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Region of country or world
market size market density climate |
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Bases for Demographic Segmentation
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Age
Gender Income Ethnic background Family Life Cycle: age, marital status, children |
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Pyschographic Segmentation on basis of:
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Personality: traits, attitudes and habits
Motives: appealing to emotional motivation behind a purchase Lifestyles: how people spend their time, their beliefs, socio-economic characteristics Geo-demographics: Combines geographic, demographic and lifestyle segmentation |
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buzzword for pyschographic segmentation
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geodemographic segmentation
segementing into lifestyle categories: geographic demographic lifestyle |
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Segmentation: BEHAVIORAL CRITERIA
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Occasion: When people buy (or get the idea to buy) and when they actually purchase
Benefits sought: What specific benefits the consumer is looking for from the product Usage rate: Heavy versus light users/consumers of a product or service User status: Non-users, ex-users, potential users, first time users, regular users Loyalty level: Degree of commitment to the brand/unwillingness to brand switch |
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DEFINE: Usage-Rate Segmentation
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Dividing a market by the amount of product bought or consumed.
80/20 rule says 20 percent of all customers generate 80 percent of the demand. |
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DEFINE: Target Market
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A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
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DEFINE: Undifferentiated Targeting Strategy
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Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.
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Advantages and Disadvtanges of Undifferentiated Targeting
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Advantages:
Potential savings on production and marketing costs Disadvantages: Unimaginative product offerings Company more susceptible to competition |
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DEFINE: Concentrated Targeting Strategy
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A strategy used to select one segment of a market for targeting marketing efforts.
Select a very specific market niche |
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Advantages and Disadvantages of Concentrated Targeting Strategy
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Advantages:
Concentrate resources ($, labor) Develop highly specific marketing mix Deep understanding of cust. Establish a strong position Disadvantages: Segments can shrink or change If you do poorly you are out--no risk diversification |
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DEFINE: Multisegment (differentiated) targeting strategy
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A strategy that chooses
two or more well-defined market segments and develops a distinct marketing mix for each. |
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Advantages and Disadvantages of Multisegment Targeting Strategy
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Advantages:
Higher profits Larger market share Economies of scale Disadvantages: Higher costs for promotion, inventory, marketing research, management Cannibalization of other existing products |
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DEFINE: Positioning
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Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization.
Mental image of a product, brand, or group of products in consumers’ minds relative to competing offerings |
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Effective Positioning does the following
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Assess the positions of competing products
Determine the dimensions of these positions that are important to the consumer Choose an effective market position where marketing mix will have greatest impact |
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Bases for Positioning
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Attribute
Price and Quality Use or Application Product User Product Class Competitor Emotion |
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Consumer Analysis Process
(Market Segmentation, Identifying Target Market, Establishing Product Position) |
Market Segmentation
Dividing overall market into groups Identifying Target Market Identified group warranting its own marketing mix Establishing Product Position Creating a mental image of the product(s) in the minds of the consumer |
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chapter 9....
product concepts and branding |
Focus on the issue of defining what a product is, how branding can make a difference in marketing products.
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DEFINE: Product
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Everything, both favorable and unfavorable, a person receives in an exchange.
Physical thing, service, idea Warranty Reputation Brand Perception by others |
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4 types of consumer products
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convenience product
shopping product specialty product unsought product |
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DEFINE: convenience product
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A relatively inexpensive item that merits little shopping effort.
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DEFINE: Shopping
Product |
A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.
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DEFINE: specialty product
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A particular item that consumers
search extensively for and are reluctant to accept substitutes. |
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DEFINE: unsought product
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Products the consumer is not knowledgeable about or aware of, may even have a negative interest.
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5 differentiating factors in product type
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Level of effort in shopping process
Level of involvement with product Price Availability of substitutes Relative newness of the product to the market |
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DEFINE: Product Item
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A specific version of a product that can be designated as a distinct offering among an organization’s products.
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DEFINE: Product Line
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A group of closely-related product items.
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DEFINE: Product Mix
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All products that an organization sells.
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DEFINE: Product Mix Width and name 3 advantages
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The number of product lines an organization offers.
-Diversifies risk Capitalizes on established reputations Targets more customers |
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DEFINE: Product Line Depth and name 4 advantages
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The number of product items in a product line.
-Attracts buyers with different preferences Increases sales/profits by further market segmentation Capitalizes on economies of scale Evens out seasonal sales patterns |
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5 Benefits of Product lines
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-advertising economies
-package uniformity -standardized components -efficient sales and distribution -consumer belief in equivalent quality |
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3 adjustments to product items, lines and mixes
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-product modification
-product repositioning -product line extension or contraction |
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DEFINE: Planned Obsolescence
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The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.
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Why would we reposition existing brands?
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Changing consumers’ perceptions of a brand
Changing Demographics Declining Sales Changes in social environment |
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DEFINE: Product Reposition
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Repositioning a Product
Adjusting a product’s present position can strengthen/ increase its market share and profitability. Repositioning is accomplished by changing the product’s features, price, distribution, or image. Adding new products to the line may necessitate the repositioning of older products. |
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DEFINE: Product line Extension
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Line Extension
Development of a product that is closely related to existing products in the line but meets different customer needs Is a less expensive, low risk alternative May focus on the same or a new segment Can be used to counter competing products Many “new products” are really line extensions. |
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DEFINE: Brand
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A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
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5 Reasons Brand is important
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Product identification
Repeat sales (brand loyalty) Generate new product sales Quality or image association Product differentiation |
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DEFINE: brand name
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That part of a brand that can be spoken, including letters, words, and numbers.
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DEFINE: Brand Mark
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The elements of a brand that
cannot be spoken. |
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DEFINE: Brand Equity
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The value of company and brand names
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DEFINE: Master Brand
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A brand so dominant that it comes to
mind immediately when a product category, use, attribute, or benefit is mentioned. (Band-Aid, Jell-O, Crayola, Vaseline) |
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Characterisitcs of an effective brand name
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Is easy to pronounce
Is easy to recognize and remember Is short, distinctive, and unique Describes the product, use, and benefits Has a positive connotation Reinforces the product image Is legally protectable |
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Study flow chart of Branding strategies
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Brand - Manufacturer's vs. Private
Manu---Individual/Family/combo Private--Individual/Family/combo |
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DEFINE: Manufacturer's brand
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The brand name of a manufacturer
e.g. Ford Mustang, Maxwell House Coffee, Shredded Wheat |
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DEFINE: Private Brand
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brand name owned by a wholesaler or a retailer
e.g. Sam’s American Choice (Wal-Mart) |
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DEFINE: Generic Brand
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A no-frills, no-brand-name, low-cost product that is simply identified by its product category.
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5 Advantages of Private Brand
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Earn higher profits
Less pressure to mark down prices Manufacturer may drop a brand or become a direct competitor to dealers Ties customer to wholesaler or retailer No control over distribution of manufacturers’ brands |
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Advantages of Manufacturer's Brand
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Develop customer loyalty
Attract new customers Enhance prestige Offer rapid delivery, can carry less inventory Ensure dealer loyalty |
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DEFINE: Individual Brand
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Using different brand names for different products
e.g. Procter and Gamble products |
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DEFINE: Family Brand
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Marketing several different
products under the same brand name e.g. Sony products |
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DEFINE: Cobranding
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Placing two or more brand names on a product or its package
Ingredient branding: part of the product (Intel Inside) Cooperative branding: brands get equal treatment and borrow brand equity (Coach version of Lexus) Complimentary branding: marketed together, with a suggested usage (Bacardi and Coke) Works best when two brands are equal in strength and target same customers |
