• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

Card Range To Study



Play button


Play button




Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

122 Cards in this Set

  • Front
  • Back
demographic segmentation
socio-economic status (SES)
geodemographic segmentation
Types of market segmentation
segmentation by usage
segmentation by benefit
Product lifecycle
school of research
Definition of consumer behaviour
The mental, emotional and physical activities that people engage in when
selecting, purchasing, using, and disposing of products and services so as to
satisfy needs and desires.
Positivist approach assumptions
All behaviour has objectively identifiable causes and effects, which can be
isolated, studied and measured.
• When faced with a problem or a decision people process all the relevant
information available to deal with it.
• After processing this information people make a rational decision about the
best choice to take or decision to make.
Interpretivist approach assumptions
Cause and effect cannot be isolated because there is no single objective
reality everyone can agree on;
• Reality is an individual’s subjective experience of it, so each consumer’s
experience is unique;
• People are not simply, or always, rational information processors or decision
makers, because this view takes no account of an individual’s emotional life
(what has been called fantasies, feelings and fun).
Difference between consumer and customer
The term customer usually implies a relationship over
time between the buyer and a particular brand or retail outlet.
Demographic trends
The population is ageing.
Members of the postwar
baby boom are now middleaged.
The proportion of young people in the population, especially between 15–20
years, is declining.
• Average household sizes have declined, with a great increase in oneperson
• Women are having fewer children and giving birth later in life.
Geodemographic segmentation definition
Geodemographic implies, this segment is based
on the idea that people who live in the same neighbourhood will tend to be of the
same Socioeconomic
Status, and where each of the three SES factors of income,
education and occupation will also be similar.
Psychological segmentation areas of behaviour
Activities How do people spend their time? (for example, work,
entertainment, shopping)
Interests What are people most interested in? (for example, family, job,
recreation, food)
Opinions How do people view themselves and their world? (for
example, politics, business, education, the future).
What did the marketing concept do
marketing concept did was to provide a focus for a changing
producer orientation from one of unthinking control and dominance of the
relationship to one of greater sophistication.
Market conditions for segmentation to work
Product characteristics which determine customer response
Relative advantage
• Compatibility
• Complexity
• Trialability
• Observability
Levitt’s Total Product Concept
Generic product.
Expected product.
Augmented product.
Potential product.
Areas of risk
1. Performance – will it do what it is supposed to?
2. Financial – will it be worth the money?
3. Physical – will it be safe?
4. Time – Will it be time-consuming to return?
5. Social – Even if she likes the suit, will the office?
6. Psychological – Is it me?
Types of self image
Actual self image: the traditional concept of how people actually
see themselves
Ideal self image: how people would like to see themselves
Social self image: how people think others see them
Ideal social self image: how people would like others to see them
Personality theories
Definition of learning
Learning is the relatively permanent process by which changes in behaviour,
knowledge, feelings or attitudes occur as the result of prior experience.
Learning approaches
Behaviourist approach
Cognitive approach
Types of conditioning
Classical (Pavlov)
Operant (Skinner)
Component of the socioeconomic status SES
Component of psychological segmentation
Components of segmentation by usage
Volume of purchase
Frequency of purchase
Definition of Diffusion of new products
the process by which an innovation . . . is communicated through certain channels
over time among the members of a social system.
distribution of adoption
early adopters
early majority
late majority
Components of the individual perspective
learning, memory and thinking
Theory X
People are inherently lazy so they must be motivated by external incentives
• They will pursue their own goals, which run counter to those of the organisation,
so they need extra controls to keep them in line
• They are quite irrational and incapable of selfdiscipline or selfcontrol
• The rare individuals who are rational, controlled and selfmotivated will therefore have to manage others.
Theory Y
People seek meaning and a sense of accomplishment and to exercise autonomy and be independent in their work
• As they are basically controlled and selfmotivated
they will find external controls and incentives demeaning
• If they are only given the chance to do so they will come to regard the organisation’s goals as their own.
Definition of motivation
A general term for any part of the hypothetical psychological process which
involves the experiencing of needs and drives and the behaviour that leads to the
goal which satisfies them.
Buying behaviour =
Ability + Opportunity + Motivation
BB = f(A,O, M)
Maslow hierarchy of needs
self-actualisation needs
self-esteem needs
social needs
safety needs
Physiological needs
Types of conflict
approach - approach
avoidance - avoidance
approach - avoidance
Types of needs
Instituations that have the most influence on our socialization
Roles in family purchasing decision
strategies for family conflict resolution
Consumer life-cycles stages
• Bachelor unmarried person under 35
• Newly married under 35, no children
• Full nest I married, youngest child under 6
• Full nest II married, youngest child 6–12
• Full nest III married, youngest child in teens
• Empty nest I married, children left home
• Empty nest II married, child left home, retired
• Solitary survivor widow(er), children left home, still working
• Retired solitary survivor As above but retired
Stages of development (Piaget)
Sensory Motor Stage (birth to two years)
Preoperational Stage (two to seven years)
Concrete Operations Stage (seven to eleven years)
Formal Operations Stage (11 years on)
Definition of assimilation
children assimilate new information about the world into their cognitive
system, their existing way of thinking.
Definition of adaptation
children’s existing way of thinking is not
sufficiently complex to let them make sense of some new information.
threephase model of development
I. pre-economic
II. micro-economic
III. macro-economic
External Influences on Consumer Socialisation
social norms
marketing and advertising
Types of groups
Primary and Secondary Groups
Formal and Informal Groups
Membership and Reference Groups
Factors influencing the effectiveness of status symbols
Exclusivity – only a few people should be eligible to acquire it
• It should be relatively expensive
• It should be of good quality
• It should be of limited supply
• It should be used by honoured and respected people
Methods for measuring social class
Social values - Ideal factors
social conformity
Social values - actualities
progress, achievement and success
efficiency and practicality
mastery of environment
attitude components
sources of attitudes
direct experience
changing Attitudes
Mere exposure
Persuasive communication.
Cognitive dissonance.
parts of the process of communication
source of the communication
the communication itself
the audience
Heuristics used in decision-making
the representative heuristic, the attitude heuristic
the availability heuristic.
Consumer Decision Process
Recognising problem
Internal information search
External information search
Evaluating alternatives
Purchase processes
major factors that influence their choice of store
Consumer rights
1 Safety.
2 Be informed.
3 Choose.
4 Be heard.
5 A clean environment.
6 Privacy.
Coping with risks
Information Gathering
Relying on brand loyalty
Some official seal of approval
The image of a major new brand
The image of the store
antecedants causing a consumer to act on a problem
Changing circumstances
Depleted stock
Dissatisfaction with stock
Marketing influences
Product add-ons
Threshold of awareness definition
Absolute threshold, marks the difference between sensing and not sensing
Just noticeable difference
Minimum amount of difference one can detect
price just noticeable threshold
15 to 20%
Common properties of the sense
Threshold of awareness
Sensory adaptation
Figure and ground
Gestalt psychology
Whole is more than the parts, we search for meaning, patterns
Perceptual constancy
Our perception of things remain constant.
The Representative Heuristic
pick out something familiar in a new object and then equate its similarity with one we know.
The Attitude Heuristic
Starting off with liking or disliking a product then believing what we would want to be true about it,
Availability Heuristic
estimating the likelihood of something occurring using the availability of relevant data from our memory.
Illusion - figure and ground
the way we perceive things against a background; the way we need a background before we can pick out an object in the environment.
Illusion - grouping
we structure our perceptions is by grouping things into patterns.
Illusion - closure
If certain things are familiar to us our perceptual process will close the gaps in the picture, thereby providing the necessary contour lines for us to perceive it as a distinct object.
Zeigarnik Effect
Because of this need to complete an incomplete picture, things that we cannot complete tend to bother us, and therefore stick in the memory.
Reductionist Approach:
All human behavior can be reduced to consumerism, such as a doctor-patient relationship. What is missing is the psychological content of the relationship.
Uses 40 categories to divide up Americas zip code districts From the Blue Blood estates to Public assistance to Grain Belt.
Devides Britain into 38 types of Neighborhoods.
Traditionalists, devoted to husband children and home is a churchgoer has no higher education and watches a lot of TV. 25%
Chic suburbanite, Highly educated and sophisticated reads and watches little TV. 20%
Militant mother, Maried young and has children. Husband has insecure job, not happy with her lot, listens to rock and watches a lot of TV. 20%
Contented housewife, a younger version of Thelma but without the religion avoids news and looks for wholesome family entertainment. 18%
Elegant socialite, Big city version of Candice through career rather than community. 17%
(Values and Lifestyles) The most elaborate psychological segmentation classification. Was carried out in the 70’s and classified Americans into 9 categories such as Survivor, sustainer, believer, belonger, struggler. Updated in the 80’s VALS-2 reduced to 8 categories.
Pressures that lead companies to the development of new products:
1. Declining birth rates.
2. Technological innovation the shortening of PLC’s.
3. Pressure of organizational change and renewal.
Successful Innovation
The most potent secret lies in changing some aspect, however small, of the way society is organized, which results in satisfying a demand that consumers were perhaps unaware that hey had.
3 main types of Innovation
1. Continuous: Modifications to existing products, new models and flavors. New model car, a new flavor of yougurt.
2. Dynamically Continuous: Requires more change in consumer behavior. Can be the modification of an existing product or the creation of a new one. Compact disks, new foods.
3. Discontinuous: Requires a new form of consumer behavior. The rarest innovations but th ones with the greatest social impact. Telephone, Radio, TV.
1. Freudian Psychoanalysis
The human personality is made up of the id, ego and superego.
a. Id – raw impulses of sex and aggression. Unconscious.
b. Ego – rational conscious thinking part of our personality.
c. Superego – Unconscious, deals with morality our conscience. Responsible for our feelings of guilt.
Freud’s Developmental Stages
a. Oral Stage – Lack of Satisfaction produces a hostile sarcastic personality and to much satisfaction a dependant gullible personality.
b. Anal Stage – Strictness leads to an anal personality and laxness leads to disorder and messiness.
c. Phallic Stage – is crucial to determining ones attitudes towards people of the opposite sex and positions of authority.
1. Neo- Freudian Psychoanalysis
Felt that Freud gave to much importance to biological drives. Neo-Freudians tend to de-emphasize the id in favor of the Ego.
Karen Horney states that people can be classified according to their relationships with others:
1. Compliant
2. Aggressive
3. Detached
This is measured on a CAD personality scale.
1. Self Theory
Centered on the work of Carl Rogers.
People try to live up to their potential. The fact that their potential so often remains unfulfilled is due to the oppressive effects of family school and other social institutions that shape the lives of the subjects.
Rogers believes that people are basically rational and are motivated to be the best that they can be.
1. Trait Theory:
The leading theorist is Raymond Cattell. He states that we all have characteristics called traits that are shared but we all differ on the strengths of various traits.
Cattel eventually came up with a list of 16 different factors on which he bases personality profiles. His personality test known as the 16PF is now widely used in job selection and vocational guidance. Cattell suggests that there are 3 important sources of personality data: Life data, self-report questionnaire data, and objective data from personality tests.
Brand Personality
A more modest and attainable approach in marketing is the development of a brand personality. To give a product characteristics such as old fashioned, elegant rugged or masculine.
Stimulus Generalization
The dog would salivate not only at the usual bell but also at other bells with a similar sound.
Stimulus Discrimination
– The dog can be trained not to salivate at certain bells and salivate at the sound o others.
Operant Conditioning
– Training using conditional techniques.
Positive Reinforcement – Press the bar to get a reward.
Extinction – Remove the reward to stop the behavior.
Negative reinforcement – Press the bar to avoid pain.
Punishment – Giving pain after an undesirable action.
Consumer Applications of Operant Conditioning
It is important at all cost that consumers are not punished (get a bad product) after a purchase.

There is no cheaper form of positive reinforcement than saying thank you or following up with a thank you note.
The Cognitive Approach
Was founded By Wolfgang Kohler.
The cognitive school emphasizes the importance of knowledge and insight.
The greatest advantage of an insightful solution is that unlike trial and error learning it can be applied to new situations.
There is a link between the psychology of perception and the psychology of learning, the concept of memory.
The process of committing to memory seems to involve 3 distinct stages.
1. You register a stimuli. Less than a second.
2. Short term memory. Decide whether you want to remember the stimuli. Up to 30 seconds.
3. Long term memory. The information is processed, repeated or rehearsed so that it sticks.
Making Learning Meaningful
Repetition has diminishing returns.
May be very effective when there is little competition but may cancel each other out when there is a lot of competition.

Visuals are very effective. That is why symbols are used to represent brands.

Self-referencing – The act of relating information to ones own life.

Mnemonics – Breaking information down into groups and associating each group of information to a trigger.

Meaningfulness – We learn things by linking them to thing that we already know. We organize our memories into packages called schemas.

Modeling – Seeing other people doing something and using them as models for our own behavior.
Creating Needs
There is no evidence that needs can be created, however existing needs can be stimulated.
The use of symbols to represent products. Symbols are much more powerful than words.
It is hard to tell what a symbol means to a particular individual. Even Freud said sometimes a cigar is just a cigar.
Remember the prunes example and what they represent.
What is a Family?
A group of two or more people living together who may be related by blood, marriage or adoption.
Nuclear Family
Immediate Family.
Extended Family
Grandparents cousins and the list goes on.
Changes in Family
The extended family is now pretty rare in western countries.
It is now also pretty rare for the man to be the sole bread winner.
The rate of divorce has also increased.
Households are based on where people live together rather than with whom.
People living together in institutions are not considered households.
People who live alone are considered a household.
Consumer Socialization
Parents do not give specific training in this area they act as role models.
Co-shopping usually is a mother child thing and it is a useful way to spend time together in today’s busy world. On these trips children learn about budgeting, choosing between products, brands and quality. Co-shopping once again is a two way process. Children may become role models for their parents when shopping for such stuff as VCRs and CDs.
Primary groups
Primary groups are small face to face groups, typically around 4 to 8 people. Most of us belong to several such groups as these at any given time.
Secondary groups
Secondary groups are to large to be considered primary usually above 20 people. Members of a dental association or of religions are examples.
Properties of Group Life
Unintended group influence Couples tend to have similar patterns of consumer behavior to each other, patterns that are systematically different fromother couples who met in different kinds of neighborhoods. This is an extension of Geodemographic segmentation.
Conditions Necessary for someone to exert consumer influence:
1. There is an ongoing personal relationship.
2. The other person is an expert or knowledgeable in the field.
3. You do not personally have the information to evaluate the product.
4. You do not trust the vendor’s sale pitch.
Conformity and consumer Norms
1. Most of us feel uncomfortable if our buying behavior is out of step with the people around us for example not owning a TV.
2. People who do not mind such conformity are likely to be opinion leaders. Especially of new products and innovations.
3. It might just take the support of one other person to make conformity resistable.
4. Most of us accept some silly opinions if they seem to be the norm of our group. For example Bermuda shorts are attractive. The whole fashion industry is based on this.
Conspicuous Consumption
The buying of products for what they stand for so as to claim status.
Having a carpet in your office or the key to the executive lavatory can be a matter of great importance to people. It is also a cheap way for companies to reward employees.
People settle for symbols of status. For example organized crime gives to charity in order to get respect.
1. Stable – once formed will keep that form.
2. Long Lasting – will be stable over years.
3. Learned – we are not born with it.
4. Predisposition to respond – links to the actual behavior.
5. In a certain way – emphasizes consistency.
Forming Attitudes
1. Classical conditioning
2. Stimulus generalization – Heinz 57 varieties.
3. Stimulus discrimination – To negate the effects of me to products.
4. Operant conditioning or reinforcement
5. Cognitive learning
Strategies for changing attitude
Low consumer involvement – use an advertising blitz or conditioning.
Increasing involvement - Try to increase the consumers involvement by associating the product with a political cause or health concern.
Involvement – Use the multi-attribute model
a. Change beliefs – anything that claims to last the longest, be the most reliable or give the best value for the money.
b. Changing Evaluations – Changing the way a consumer evaluates a product. For example baked beans have always been cheap and convenient but when consumers discovered that they were high in fiber and healthy the way they were evaluated changed.
c. Changing beliefs and evaluations – Removing or adding attributes. Adding fiber to bread or removing caffeine from coffee. Adding vitamins to milk and removing it’s fat content.
The two most important factors in changing peoples attitudes are:
1. Credibility – The communicator should be perceived as an expert and trustworthy. Arguing against ones own interests is especially effective! Fast smooth talkers seem to be perceived as more credible. Sleeper effect – a not so credible spokesperson gives a message. After time the sender is forgotten but the message remembered.
2. Attractiveness – Using celebrities. It is said that this technique works only up to a point on trivial issues.
key questions are considered in evaluating the effectiveness of the message:
1. Reason or Emotion – Modern research looks more into the effects of different levels of emotion rather than the distinction between the two. It seems to be the combination of high emotional arousal plus specific instructions on what to do that is most effective.
2. Images or Statistics – Apparently the vividness of an individual picture is much more persuasive than words. All the cracks adding up to the size of a basketball.
3. One sided or two sided argument - For uninformed people or people that share the same opinion the one sided argument approach is more effective. For well informed people or people that don’t share the same opinion the two sided approach is more effective.
4. Primacy or Recency effect – There is an obvious relevance to the timing of adds on radio and TV with relation to the time of the purchasing decision.
5. Size of attitude discrepancy – It is much easier to change the attitudes of the target audience when there is only a small discrepancy.
Factors which effect the way the audience will perceive a message and how they will respond to it:
1. Self-Esteem – It seems that people with low self-esteem are much more susceptible to persuasion. This seems to concur with Milgams and Asch’s studies.
2. Social approval – Allied to self-esteem is finding people who have a deeply felt need for social approval.
3. Prior Experience – The most important factor in audience attitude change. Inoculation and forewarning.
4. Public commitment – When people make a public commitment that jives with group norms rather than a private commitment they are more likely to change their behavior. Examples are, Kurt Lewin’s Offal studies. Tupperware parties.
5. Mood –
a. Content – The add should be upbeat and happy.
b. Context – The add should be placed in a program that is upbeat.
Why do people go shopping?
• To get out of the house.
• To get info on what is available.
• To meet friends.
• To break up routine.
• Exercise
• To feel important as a household provider.
9 Images of the consumer:
1. Chooser – The most prevalent image.
2. Communicator – The acts of buying are nonverbal communication.
3. Explorer – Hunting for bargains, exploring.
4. Identity-Seeker – Defining who one is through purchases.
5. Hedonist
6. Victim – Overcharging manipulation cartels.
7. Rebel – Younger people, Tearing jeans.
8. Activist – Greens and boycotts
9. Citizen - Political linked to a community
Components of the social perspective
Family Influences
Social and Developmental Influences
The Influence of Small Groups
The Influence of Social Class
Cultural Influences
Exam question: Advertising
1. Model of communication
- Encoding
- Transmission via medium
- Decoding

2. Factors affecting persuasiveness of message
- Credibility
a. expert
b. trustworthy

3. Nature of communication
- approval to reason or emotion
- images or stats ar emore convincing?
-message one-sided or two-sided
-primacy or recency effect
-size of discrepancy in attitude being adressed
4. Nature of the audience
-need for social approval
-previous exposure

5. cultural factors
- humour or ser

6. perception
Decision rules