Marketing Terms From Chapter 1-6 Consumer Behavior

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What is Consumer Behavior?

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

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Consumer:

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A person who identifies a need or desire, makes a purchase, and then disposes of the product

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Market Segmentation

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Similar consumers
Example: “Heavy Users” of fast-food industry

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Segmenting Consumers: Demographics

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Age
Gender
Family Structure & Marital Status
Social Class & Income
Race & Ethnicity
Geography

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Segmenting Consumers: Lifestyles

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Psychographics
The way we feel about ourselves
The things we value
The things we do in our spare time

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The Meaning of Consumption

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People often buy products not for what they do, but for what they mean

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Brands

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Convey image/personality
…Define our place in modern society
…Help us to form bonds with others who share similar preferences

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Global Consumer Culture

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People united by common devotion to:
Brand name consumer goods
Movie stars
Celebrities
Leisure activities
Pressure to understand similarities and differences of customers in various countries

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Marketers tell people what they should want

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Marketerspace vs. Consumerspace
Response: Marketers recommend ways to satisfy basic biological needs

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JFK’s “Declaration of Consumer Rights” (1962)

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The right to safety
The right to be informed
The right to redress
The right to choice

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Positivism

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Function of objects/products
Celebrate technology
World as a rational, ordered place

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Interpretivism

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We each construct our own meanings
Consumption of products = diverse experiences

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Sensation:

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The immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers) to basic stimuli such as light, color, sound, odors, and textures

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Perception:

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The process by which sensations are selected, organized, and interpreted

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Size:

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The size of the stimulus itself in contrast to the competition helps to determine if it will command attention.

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Color:

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Color is a powerful way to draw attention to a product.

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Position:

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Stimuli that are present in places we’re more likely to look stand a better chance of being noticed.

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Novelty:

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Stimuli that appear in unexpected ways or places tend to grab our attention.

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What are the 4 stimulu selection factors?

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size, color, position, and novelty

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Hedonic Consumption

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Design/form = function/substance

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Trade Dress:

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Colors that are strongly associated with a corporation, for which the company may have exclusive rights for their use.
Kodak’s use of yellow, black, and red
Tide’s color combination and bulls-eye

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Kansai engineering:

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A philosophy that translates customers’ feelings into design elements.

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Differential Threshold:

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The ability of a sensory system to detect changes or differences between two stimuli. The minimum difference that can be detected between two stimuli is known as the j.n.d. (just noticeable difference).

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Weber’s Law:

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The stronger the initial stimulus, the greater a change must be for it to be noticed

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Subliminal perception:

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Occurs when the stimulus is below the level of the consumer’s awareness.

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Subliminal techniques:

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Embeds: Tiny figures that are inserted into magazine: advertising by using high-speed photography or airbrushing.

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Does subliminal perception work?

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There is little evidence that subliminal stimuli can bring about desired behavioral changes.

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Attention:

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The extent to which processing activity is devoted to a particular stimulus.

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Attention economy:

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The Internet has transformed the focus of marketers from attracting dollars to attracting eyeballs.

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Perceptual selection:

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People attend to only a small portion of the stimuli to which they are exposed.

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Experience:

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The result of acquiring and processing stimulation over time

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Perceptual vigilance:

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Consumers are aware of stimuli that relate to their current needs

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Perceptual defense:

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People see what they want to see - and don’t see what they don’t want to see

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Adaptation:

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The degree to which consumers continue to notice a stimulus over time

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WHAT are the 4 Personal Selection Factors

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experience, perceptual vigilance, perceptual defense, and adaptation

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Closure Principle:

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People tend to perceive an incomplete picture as complete.

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Principle of Similarity:

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Consumers tend to group together objects that share the same physical characteristics.

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Figure-ground Principle:

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One part of a stimulus will dominate (the figure) and other parts will recede into the background (the ground).

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Semiotics:

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Field of study that examines the correspondence between signs and symbols and their role in the assignment of meaning.

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A message has 3 components:

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1) Object: the product that focuses the message
2) Sign: the sensory imagery that represents the intended meanings of the object
3) Interpretant: the meaning derived

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Learning:

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a relatively permanent change in behavior caused by experience
Incidental learning
Ongoing process

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Classical Conditioning

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Pavlov
CS + UCS = response

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Repetition of exposure

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Type of medium used
Extinction
Tommy Hilfiger knockoffs

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Stimulus Generalization

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Halo effect
“Piggybacking” strategy
Masked branding
Family branding, product line extensions, licensing, look-alike packaging

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Stimulus Discrimination

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Brand positioning
Unique attributes of brand
Anti-Counterfeiting Coalition combats “knockoffs”

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Behaviors =

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positive outcomes or negative outcomes


Deliberate behavior to obtain a goal

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Positive reinforcement

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Frequency marketing, thank you letters, rebates, follow-up phone calls

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Reinforcement schedules include…

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Fixed-interval (seasonal sales)
Variable-interval (secret shoppers)
Fixed-ratio (grocery-shopping receipt programs)
Variable-ratio (slot machines)

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Cognitive Learning Theory

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People = problem solvers
Active use of information to master environment
Conscious hypotheses

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Observational Learning

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We watch others and note reinforcements they receive for behaviors
Vicarious learning
Socially desirable models/celebrities who use or do not use their products

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Modeling:

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imitating others’ behavior

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Memory:

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acquiring information and storing it over time so that it will be available when needed

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Chunking

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Informational unit in short-term memory (STM)
Brand name
Area code of telephone number
Optimal size for retrieval

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Activation models of memory

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Associative network of related information
Knowledge structures of interconnected nodes
Hierarchical processing model

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The forces that drive us to buy/use products…

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Are usually straightforward
Can be related to wide-spread beliefs
Are emotional & create deep commitment
Are sometimes not immediately recognizable to us

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Motivation:

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the process that leads us to behave they way we do

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The Motivation Process

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Need creates tension
Tension creates drive to reduce/eliminate need
Desired end state = consumer’s goal
Products/services provide desired end state and reduce tension

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Types of Needs

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Biogenic
Psychogenic
Utilitarian
Hedonic

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Motivational Strength

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Degree of willingness to expend energy to reach a goal
Biological vs. learned needs
Drive Theory
Expectancy Theory

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Maslow's heiracrchy of needs

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self actualization, ego, belongingness, safety, physiological

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Involvement:

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perceived relevance of an object based on one’s needs, values, and interests

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Inertia:

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consumption at the low end of involvement

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Flow state:

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true involvement with a product

Playfulness
Being in control
Concentration/focused attention
Mental enjoyment of activity for its own sake
Distorted sense of time
Match between challenge at hand and one’s skills

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Vigilante marketing

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Consumer’s interest in processing marketing communications

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Purchase Situation Involvement

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Differences that may occur when buying the same object for different contexts

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Dimensions of Involvement

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Personal interest in product category
Risk importance
Probability of bad purchase
Pleasure value of product category
Sign value of product category (self-concept relevance)

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Strategies to Increase Involvement

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Appeal to hedonistic needs
Use novel stimuli in commercials
Use prominent stimuli in commercials
Include celebrity endorsers in commercials
Build consumer bonds via ongoing consumer relationships

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Value:

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a belief that some condition is preferable to its opposite

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Self Concept:

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The beliefs a person holds about his or her own attributes and how he or she evaluates these qualities

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Dimensions of the Attributes of Self Concept:

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Content
Positivity
Intensity
Accuracy

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Self-esteem:

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Refers to the positivity of a person’s self-concept.

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Social Comparison:

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A process by which consumers evaluate themselves by comparing themselves with others (particularly comparisons with idealized images of people in advertising)

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Self-esteem Advertising:

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Attempts to change product attitudes by stimulating positive feelings about the self.

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Actual Self:

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A person’s realistic appraisal of the qualities he or she does and does not possess

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Ideal Self:

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A person’s conception of how he or she would like to be
Partially molded by elements of a consumer’s culture

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Role Identities:

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Different components of the self

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Symbolic Interactionism:

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Stresses that relationships with other people play a large part in forming the self

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Self-fulfilling prophecy:

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By acting the way we assume others expect us to act, we wind up confirming these perceptions

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The Looking-Glass Self:

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The process of imagining the reactions of others toward us

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Self-Consciousness:

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A painful awareness of oneself magnified by the belief that others are intently watching.

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Public Self-Consciousness:

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A heightened concern about the nature of one’s public “image”
Results in more concern about the appropriateness of products and consumption activities

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Self Monitoring:

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Awareness of how one presents oneself in a social environment

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Symbolic self-completion theory:

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People who have an incomplete self-definition tend to complete this identity by acquiring and displaying symbols associated with it.

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Self-image congruence models:

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Products will be chosen when their attributes match some aspect of the self.

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Products most likely to be used as symbols have three characteristics:

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They must have visibility in use
The product must show variability
The product must have personalizability

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Endowment effect:

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The tendency of an owner to evaluate an object more favorably than a non-owner
Impact increases with length of ownership

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Marketing Strategies to capitalize on endowment effect:

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Sampling
Visualization of product ownership

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Extended Self:

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External objects that consumers consider a part of themselves

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Four Levels of the Extended Self:

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(1) Individual Level: Personal possessions
(2) Family Level: Residence and furnishings
(3) Community Level: Neighborhood or town one is from
(4) Group Level: Social groups
A consumer may also feel that landmarks, monuments, or sports teams are part of the extended self.

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Sex-Typed Traits:

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Characteristics stereotypically associated with gender

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Sex-Typed Products:

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Many products are sex-typed (i.e., they take on masculine or feminine attributes and are associated with gender)

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Androgyny:

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Refers to the possession of both masculine and feminine traits
Sex-typed people: Stereotypically masculine or feminine
Androgynous people: Mixed gender characteristics

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Personality has four essential characteristics:

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1. Behavior shows consistency over time.
2. Behavior should distinguish the person from others.
3. Personality characteristics are not rigidly connected to specific types of behavior.
4. Personality variables often moderate the effects of other variables on behavior.

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Freud’s Psychoanalytic Theory

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Personality results from the clash of 3 forces - the id, the ego, and the superego

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Id:

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Oriented toward immediate gratification
The id is selfish, illogical, and ignores consequences
hedonic

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Pleasure principle:

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Behavior is guided by the primary desire to maximize pleasure and avoid pain

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Superego:

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A person’s conscience

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Ego:

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The system that mediates between the id and the superego

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Reality principle:

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The ego finds ways to gratify the id that will be acceptable to the outside world

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Trait Theory:

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An approach to personality that focuses on the quantitative measurement of personality traits

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Personality Traits:

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Identifiable characteristics that define a person.
Allocentrics : Trait of being socially outgoing
Idiocentrics : Trait of being quiet and reserved

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Brand personality:

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The set of traits people attribute to a product as if it were a person

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Personality

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refers to the internally based dispositions of the person.

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Life-style

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refers to how people live, how they spend their money, and how they allocate their time

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Psychographic research groups consumers according to (AIOs)

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Activity questions ask consumers to indicate what they do, what they buy, and how they spend their time.
Interest questions focus on what the consumers’ preferences and priorities are.
Opinion questions ask for consumers’ views and feelings on such things as world, local, moral, economic, and social affairs.

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PRIZM (Potential Rating Index by Zip Market):

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Classifies every U.S. Zip Code into one of 62 categories
Rankings in terms of income, home value, and occupation on a ZQ (Zip Quality) Scale
Categories range from most affluent “Blue-Blood Estates” to the least well-off “Public Assistance”
Different clusters exhibit different consumption patterns

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Three Self-Orientations:

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Principle orientation: Guided by a belief system
Status orientation: Guided by opinions of peers
Action orientation: Desire to impact the world around them

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Psychographic segmentation can be used:

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To define the target market
To create a new view of the market
To position the product
To better communicate product attributes
To develop overall strategy
To market social and political issues

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Methods like VALS 2, PRIZIM and RISC often result in:

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clever descriptions of a target market that can result in stereotypes.
can result in managers disparaging the target group.
can cause managers to view the target market as more homogeneous than it really is.