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13 Cards in this Set
- Front
- Back
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Who are consumers
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a. Market segments
b. Focus on segments, not mass marketing c. Segmentation variables - Customer characteristics = descriptors i. Geographic ii. Demographic – income, age, occupation, family size 1. Age = cohort analysis = millenials, gen x, iii. Psychographic – lifestyle, personality, interests |
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Segmenting in technology - based markets
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diffusion of innovations
a. The adoption curve below is big for this section b. Diffusion – new technology comes out i. If innovators like it they spread positive word of mout ii. Product then grows through adoption curve iii. If innovators don’t spread positive word of mouth, the new technology diffuses |
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Why do consumers buy?
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a. The buyer decision process below applies
b. Products offer benefits that service a need c. Take characteristic of product to translate it into benefit i. Detergent is powerful on stains = You’re buying clean clothes (benefit) |
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Factors influencing buyer behavior - cultural
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i. Culture
ii. Social class 1. Lower 2. Working 3. Upper 4. middle |
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Factor influencing buyer behavior - social
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i. Reference groups
1. Church etc.. 2. Opinion leaders a. Warren buffett ii. Family iii. Roles and status 1. Parent 2. Employee 3. student |
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Factor influencing buyer behavior - personal
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i. Age
ii. Lifestyle 1. Jeep 2. REI iii. Personality 1. SELF concept” theory = Actual vs ideal self (nike) 2. Self image – consumption = expression of self (porsche) 3. Brand personality (pilsbury) |
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Memory sequential effects - memory
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short-term memory: 7+2 vs 4+0
i. We can take a lot in through our senses ii. Our brains can retain a lot of info iii. Between the intake and long term memory is SHORT TERM MEMORY iv. 4+0 = we can process about 4 pieces of info at once v. We have limited short term memory so our info that we portray as a marketer needs to be short, clear, and concise |
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Memory sequential effects - counterarguing
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a. If your mind is thinking about something beside the main point, you are more likely to accept the main point because you aren’t focused on stopping the persuasion.
b. Your mind wants to argue points, by redirecting your mind marketers can reduce counterarguing. |
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Memory sequential effects - regret (and counterfactuals)
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a. Missing a plane by 2 min. vs. 2 hours and 2 min.
i. You are much angrier when missed by 2 minutes ii. This is a counterfactual 1. When you are way late, you don’t think about what caused you to miss it 2. When you miss by 2 minutes, you think of counterfactuals, you think…. a. Oh if I wouldn’t have brushed my teeth. b. Oh if I wouldn’t have used the snooze 3. Silver medalists counterfactual is = I missed the gold by that much 4. Bronze medalists counterfactuals is = at least I got on the stand. The other option was 4th place and no medal a. Bronze medalists are happier than silvers |
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Memory sequential effect - magical thinking
- law of contagion - correlation implies causations - illusion of control - power of symbols |
a. Law of contagion- we make connections and imply things that don’t really exist
i. Chocolate shaped like cockroaches- you don’t want it ii. Drinking from a brand new bedpan – you don’t want it b. Correlation implies causations i. Breastfed children have higher IQs ii. This correlates, but might not be the real cause c. The illusion of control i. Choosing lottery numbers ii. They will pay more for the ticket when they can choose the number d. Power of symbols i. The swastika always brings a bad feeling |
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Buyer Decision Process
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a. Need recognition
b. Info search c. Evaluate alternative i. Multi attribute – 4 attributes with weights, which is greatest overall ii. Conjunctive model – 4 attributes with a minimum requirement iii. Lexicographic – 4 attribute in order of most important |
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Buyer Decision Process
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d. Purchase decision
e. Postpurchase behavior i. Cognitive dissonanece = there is one thing you don’t like, but you like the overall thing 1. Low involvement – paper clips – skip steps b and c and possibly e 2. High involvement – car – do all the steps |
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The adoption curve: (with %)
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- innovators - 2.5
- early adopters - 13.5 - early majority 34 - late majority - 34 - laggards - 16 |
