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107 Cards in this Set
- Front
- Back
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Buyer Behavior
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here, refers to either consumer or organizational purchasing behavior
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Consumer Behavior
type of Buyer Behavior |
dealing with end-user consumption
(for oneself, family, gift-giving) |
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Organizational Purchasing Behavior
type of Buyer Behavior |
dealing with non end-user buying
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What are marketers really selling?
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The product?
Benefits of the product? What types of benefits? Depends on who’s buying Why did you decide to go to OU? Education? In-state tuition? Friends or family? |
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Behaviors that are part of consumer behavior
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Searching for
Evaluating Acquiring Using Disposing of products |
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Customer value
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the difference between all the benefits derived from a total product and all the costs of acquiring those benefits
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Market Analysis Components
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The consumers
The company The competitors The conditions |
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Market Segmentation Involves:
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Identifying product-related need sets
Grouping customers with similar need sets Describing each group Selecting an attractive segment(s) to serve |
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Marketing strategy
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answers the question:
“How will we provide superior customer value to our target market?” |
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Marketing mix
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the product, promotion, price, and place
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Product
Marketing Strategy |
anything a consumer acquires or might acquire to meet a perceived need
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Communications (promotion)
Marketing Strategy |
advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products
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Price
Marketing Strategy |
the amount of money one must pay to obtain the right to use the product
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Consumer cost
Marketing Strategy |
everything the consumer must surrender in order to receive the benefits of owning/using the product.
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Distribution (place)
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having the product available where target customers can buy it.
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Firm outcomes
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Product position – an image of the product or brand in the consumer’s mind relative to competing products and brands
Sales Customer satisfaction |
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Individual outcomes
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Need satisfaction
Injurious consumption – occurs when individuals or groups make consumption decisions that have negative consequences for their long-run well-being |
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Society Outcomes
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Economic outcomes
Physical environment outcomes Social welfare |
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Do Marketers Create Needs?
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One response (politically correct in most marketing camps):
Marketers create awareness of needs that already exist. Really? |
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Culture is a classification
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We categorize people and things to make quicker and easier decisions
Items within a category have similar attributes Items in different categories have different attributes Categories are based on attributes we perceive as important for grouping similar and different items |
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Breadth of category
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The broader the category, the fewer attributes that people/items in the category have in common
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Culture
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My definition: The sum total of learned beliefs, values and norms that serve to direct the behavior of members of a given society/group
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NORMS
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socially defined
rules that specify or prohibit certain behaviors in specific situations |
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VALUES
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widely held beliefs regarding what is desirable
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Values
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Learned through socialization
Enculturation - learning about one’s own culture Acculturation - learning a new or foreign culture |
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Nonverbal communications systems
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The arbitrary meanings a culture assigns actions, events, and things other than words
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Nonverbal Communications
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Time
Monochronic Polychronic Space Symbols Relationships |
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Nonverbal Communications
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Agreements
Things Etiquette |
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Content Analysis
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derives cultural meaning (values, norms, beliefs) from common “texts” (e.g., comic books, movies, television advertisements, song)
Great for when marketers are “removed” from a culture or subculture. Therefore, CA may be valuable for new market entry, penetration into new segments, etc. |
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Ethnographic fieldwork
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derives meaning from deductions of observation. May be obtrusive or non-obtrusive.
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Ethnographic fieldwork 2
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Obviously, does not start with quantitative data.
Is more labor intensive since all data is first-hand. |
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Ethnographic fieldwork 3
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“Thick description” about what is seen is usually desired.
Serious bias may exist as the culture is “seen through my eyes”. But some contend that bias is desirable. Thick description is often accompanied by photography and videography. Remember though, something as simple as counting (as opposed to thick description) may be very revealing. |
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Sacredness
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Important because “sacredness” infers culture
Rituals Gift giving Holidays But, mundane items, places, persons become “sacred” too |
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Sacred Items and Consumption Locales
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Possessions
Homes Cars Shoes? Places Wrigley Field Walt Disney World Yellowstone NP |
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Consumer “Rituals”
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A set of multiple, symbolic behaviors that occur in a fixed sequence and are repeated periodically and are used to create, affirm, or revise cultural meanings (see types of rituals in Ch.12)
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Consumption rituals in other cultures may be markedly different
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Bringing wine to a French host is an insult
Campbell’s soup low appeal in Brazil (lazy) Others? |
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Ritual Examples
As marketers, what can we infer from rituals? |
Baptism
Prayer Graduation Marriage Festival, holiday ritual Mealtimes Birthdays Grooming |
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“Measuring” Culture
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Value measurement surveys:
The Rokeach Value Survey List of Values scale Values and Lifestyles scale Key: we are beginning with data (i.e., quantitative research) |
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Rokeach Value Survey
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Separates terminal from instrumental values (e.g., comfortable life, social recognition; ambitious, cheerful)
Used to find “value” segments e.g., In Brazil: Seg. A - world peace, inner harmony, true friendship (involved in gardening, reading, family) Seg. B - self respect, comfortable life, recognition (involved in fashion, active living, adventure) |
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Marketing Strategy and Values
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Green Marketing
Developing products whose production, use, or disposal is less harmful to the environment than the traditional versions of the product Developing products that have a positive impact on the environment Tying the purchase of a product to an environmental organization or event Confusing terminology such as “sustainable” |
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Marketing Strategy and Values
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Gender-based marketing
Gender roles Traditional Modern Ascribed role Achievement role Segmentation |
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Demographics
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Demographics describe a population in terms of its size, distribution, and structure.
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Some Demographic Variables
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Age, Race, Income, Occupation, Family Life Cycle, Gender, Ethnicity, Education, Family Size, Religion
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The most widely explored demographic “subculture” is...
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AGE!!!!
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Targeting by demographic subculture
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“Most accessible and cost effective” due to accessibility of secondary data (e.g., Census data, American Demographics Magazine)
May reveal trends (e.g., the aging consumer; family structures) |
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generation or age cohort
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A generation or age cohort is a group of persons who have experienced a common social, political, historical, and economic environment.
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Cohort analysis
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Cohort analysis is the process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors.
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A Common Age Typology
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<chart in slides>
Generations are shaped by events and trends during different stages of their lives |
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The Elderly
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More women than men--60% of women over 65 are single
22%>65 vs. 9% in 1960 Perceived age is key to ads No softdrink ads yet 1/3 heavy users Heavy media users The term “self-esteem” was not widely used outside of academia for most of their lives |
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Mid-lifers
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Important segment due to size
Mid 40’s to 60’s Parents of “Busters” Nostalgia a selling point |
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Gen-X: 30-something
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Very skeptical of advertising/politics
“Making less than dad did” Lower relative income compared to parent’s generation http://money.cnn.com/2007/05/25/pf/mobility_study/index.htm?cnn=yes Considerably less job stability Little loyalty to jobs or large institutions |
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20-somethings
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Very likely to attend at least some college
Often have trouble transitioning to the job market Decreasing relative incomes Increasing expectations Conflict with values of older generations This results in: Living at home longer (or returning home) Marrying/family building later Helicopter parents Addresses hard to get |
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Teens (influence of age)
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Sometimes called Millenials
More than Boomers, they are very trend aware Technologically savvy Taught to value self-esteem |
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Societal Rank
Social Stratification |
one’s position relative to others on one or more dimensions valued by society.
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Social Class System
Social Stratification |
a hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles
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Single-Item Indexes
Measuring Social Standing |
Education
Occupation (Socioeconomic Index: SEI) Income Relative Occupational Class Income Subjective Discretionary Income |
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Multi-Item Indexes
Measuring Social Standing |
Hollingshead Index of Social Position
Warner’s Index of Status Characteristics Census Bureau’s Index of Socioeconomic Status |
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African-Americans
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On average, younger than the white population and tend to have less education and lower household income levels
Should not be treated as a single segment Demographics Life stage Lifestyle Marketing requires more than altering media or replacing white actors with black actors |
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Hispanics
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3 generations of Hispanics
First (63%): born outside US, lowest income and educations, Spanish as primary language Second (19%): born in US to immigrant parents, higher income and education Third (17%): born in US to US-born parents, highest education and income, most likely to speak English as the primary language Heavily influenced by Roman Catholic religion Tend to be very brand loyal |
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Religious Subcultures
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Christian subcultures
Roman Catholic Protestant Born-again Christian Non-Christian subcultures Jewish Muslim Buddhist |
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Thought on Communities
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Advantages of Embedding within Community
Communities are “niche” oriented (allowing for product differentiation) Members are loyal because of psychological identification with the group |
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What is a community?
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Anthropological Perspective
is “locality oriented” (a tribe, city, or trading area) Sociological Perspective combines the concept of locality with the “shared interests” of the local community |
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A Modern Perspective of Community
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“Community” is no longer limited by geography but by shared interests. It cannot exist without certain functions played by its members/institutions, which serve to “bind” the community together.
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Functions of Community
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Socialization, Social Control, Social Participation, and Mutual support lead to
LOYALTY!!!! |
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Socialization
Functions of Community Members |
facilitation of prevailing knowledge, social values, and behaviors by community members. Often “one way” communication (non-interactive).
Physical: Climbing walls in sporting goods stores Virtual: Community Message Boards |
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Social Control
Functions of Community Members |
exerting control over opinions and behaviors that may threaten social norms or beliefs of a community
Limiting Brand choice Censorship of “outsiders” (virtual: user ratings systems; phys.: blackballing--BBB) |
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Social Participation
Functions of Community Members |
allowing social exchanges to take place
Virtual: Discussion Groups Physical: Coffee shops |
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Mutual Support
Functions of Community Members |
creating “alliances” that are valued
by the community Physical: Wal-Mart and Girl Scouts Virtual: Webrings |
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Importance of Family
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Key reference group
Critical decision making unit Socialization force |
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What is a family?
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Traditional family – a married couple and their own or adopted children living at home.
“Normal” families not typical anymore Singles up (getting married later) Single parent households up More gay couples Pets |
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Younger (<35)
Household Life Cycle |
Single I
Young married Full nest I Single parent I |
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Middle-aged (35 – 64)
Household Life Cycle |
Single II
Delayed full nest I Full nest II Single parent II Empty nest I |
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Older (> 64)
Household Life Cycle |
Empty nest II
Single III |
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Six basic approaches to resolving purchase conflicts
Conflict Resolution |
Bargaining
Impression management Use of authority Reasoning Playing on emotion Addition information |
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Consumer Socialization
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Consumer socialization is the process by which young people acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace.
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Consumer skills
Content of Consumer Socialization |
those capabilities necessary for purchases to occur such as understanding money, budgeting, product evaluation, and so forth.
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Consumption-related preferences
Content of Consumer Socialization |
the knowledge, attitudes, and values that cause people to attach differential evaluations to products, brands, and retail outlets
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Consumption-related attitudes
Content of Consumer Socialization |
cognitive and affective orientations toward marketplace stimuli such as advertisements, salespeople, warranties, and so forth
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Instrumental training
Process of Consumer Socialization |
occurs when a parent or sibling specifically and directly attempts to bring about certain responses through reasoning or reinforcement
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Modeling
Process of Consumer Socialization |
occurs when a child learns appropriate, or inappropriate, consumption behaviors by observing others
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Mediation
Process of Consumer Socialization |
occurs when a parent alters a child’s initial interpretation of, or response to, a marketing or other stimulus
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The Supermarket as a Classroom
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Stage I: Observing
Stage II: Making Requests Stage III: Making Selections Stage IV: Making Assisted Purchases Stage V: Making Independent Purchases |
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Kids and Purchasing
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Fewer kids/family--each more powerful
Single parents leads to more influence Older, dual career parents mean more dollars Working parents encourage Household participation |
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Normative reference groups
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Groups you refer to in making a purchase or a decision
A frame of reference for information Help define “good” values or appropriate CB Establish pressures to conform |
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Comparative reference groups
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used as positive basis of comparison (e.g., others within your social class); College Students
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Aspirational reference groups
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indirect contact (e.g., heroes) but influential since they are aspired to; Young Professionals
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Negative Reference Groups
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used as a negative basis for comparison (avoidance); HS kids
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Consumption Subcultures
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A distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity.
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Consumption Subcultures have...
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These groups have
Identifiable, hierarchical social structure Set of shared beliefs or values Unique jargon, rituals, and modes of symbolic expression |
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Brand Community
Some Communities |
a nongeographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm
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Virtual Community
Some Communities |
a community that interacts over time around a topic of interest on the Internet
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Reference Group influence
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Informational influence
Normative influence Identification influence |
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Reference Group Influence
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Visible use
Necessity Commitment of the individual to the group Relevance to the group Individual confidence |
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Determinants of Group Influence
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Credibility, power, attractiveness of the group
Perceived risk in purchase (alienation from other groups) E.g., purchasing a Chevy Suburban Conspicuousness of product (the symbolic meaningfulness of the product) E.g., TP brand vs. car brand |
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Word-of-mouth (WOM) communications
Opinion Leadership |
Involves individuals sharing information with other individuals in a verbal form including face-to-face, phone, and the Internet
WOM can occur directly or indirectly Marketing strategies and opinion leaders Advertising Product Sampling Retailing/Personal Selling |
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A Promotion / Advertising Application
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1. Create an awareness of a referent group to be associated w/ brand
2. Allow consumer to be exposed to how brand is in line with referent group’s ideology 3. “Influence” consumer to accept the appropriateness of the referent group for the product – through functionality and imagery 4. Confirm appropriateness of the purchase / use as an indicator of being “part” of the referent group |
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Conformity/de-individualization
Some “Irrational” Group Consumer Behaviors |
Depends on commitment to group, severity of initiation
Would you attempt a keg stand alone? |
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Buying on impulse
Some “Irrational” Group Consumer Behaviors |
22% if shopping alone
42% if in groups of 3+ |
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“Odd” purchases
Some “Irrational” Group Consumer Behaviors |
Tattoos
Tupperware Pampered Chef |
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Belonging
Role Playing |
Belonging (internally driven to play role) – to reduce cognitive dissonance – similar to BT
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Conformity
Role Playing |
Conformity (external pressures) – in conforming to expectations you become a self-fulfilling prophesy
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work roles
Other Roles that influence behavior |
professor, student, accountant, realtor, waiter
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leisure roles
Other Roles that influence behavior |
disc golfer, skier, jogger, artist, Mario Cart Champion
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family roles
Other Roles that influence behavior |
mommy, daddy, eldest daughter
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social roles
Other Roles that influence behavior |
intellectual, country club, gang member, rocker
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Marketing Implications
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As consumers we engage in role-related product cluster identification
A set of products generally considered necessary to properly fulfill a given role Implications: design products that are functionally necessary, or symbolically important For marketers, role transitions matter Many roles have distinct beginnings / transition points in time Marriage, birth, divorce, college, new job How to identify? Implications: Associate products or brands with the fulfilling of the new role |
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Aspirational Overbuying
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Aspirational Overbuying
extreme use of products to compensate for feelings of insecurity in performing a role Conditions: Consumer wants to acquire a role S/he knows role-related products S/he unsure about ability to fulfill role “Props or costumes” (role-related products) substitute for “acting” Examples: Golf clubs, sports cars, fashion, adornment products…others? |
