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64 Cards in this Set
- Front
- Back
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Consumer behaviour |
the conduct consumers display when searching for, purchasing, using, evaluating, and disposing, products and services they expect will satisfy their needs - what they buy - why they buy it - how consumers think - how they dispose of it - how often they use it - how often they buy |
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Consumer roles |
Consumer/user-consumes or uses product Buyer-undertakes activities to obtain product Payer-provides money (or other value) to obtain the product --Marketers must decide who to target-- |
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Personality |
A person's unique psychological make-up and how it consistently influences the way a person responds to their environment -reflects individual differences -consistent and enduring -change due to major life events/maturing -different but similar to motivation and needs -nature vs nurture -allows marketers to categorise consumers on the basis of trait(s) |
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Freudian theory of personality |
Three component parts of mind id-driven by basic drives/needs, in accordance with pleasure principle, instinctual, impulsive ego-driven by reality principle, works to balance id and superego-to achieve ids drives in most realistic way, to benefit long term, rational superego-driven by morality principle, works to act in socially acceptable ways, judges sense of wrong and right using guilt to encourage socially acceptable behaviour |
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Neo-Freudian theory of personality |
Agrees with Freud but believes social relationships are fundamental to personality Seek to overcome feeling of inferiority Continually attempt to establish relationships with others to reduce tensions |
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Trait theory of personality |
distinguishing and enduring way individuals differ from another via identifiable characteristics -quantitative measurement of personality -personality is combination of particular traits -uses personality tests to identify differences in traits -assumes many dimensions to personality |
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Myers-Briggs/Big five personality dimensions |
Openness to experience The degree to which a person is open to new ways of doing things Conscientiousness The level of organisation and structure a person needs Extroversion How well a person tolerates stimulation from people Agreeableness The degree to which we defer to other people Neuroticism Emotional instability/how well a person copes with stress |
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Personality trait examples |
-Need for uniqueness/inner-directed -Susceptibility to interpersonal influence/outer-directed -Superstition -Pro-environment -Romanticism -Willingness to spend money -Enjoyment of shopping -Need for cognition -Need for affect -Impulsiveness -Self-consciousness -Extroversion -Neuroticism |
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Perception |
The process by which an individual selects, organises, and interprets stimuli to form a meaningful and coherent picture of the world -sensation -absolute threshold -differential threshold -subliminal perception |
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Sensation |
The immediate and direct response of the sensory organs to simple stimuli -sight, sound, smell, taste, touch Varies according to: -quality of individuals sensory receptors -amount/intensity of stimuli -interest in stimuli -ability to catch attention Stimuli which goes against expectation can often catch more attention |
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Absolute Threshold |
The lowest level at which we can experience a sensation
Constant or increase of exposure to stimuli, we notice it less, ie absolute threshold increases. |
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Just Noticeable Difference (Differential Threshold) |
The minimal difference that can be detected between two stimuli As sensory input decreases, ability to detect changes in input/intensity increases |
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Sensory adaption |
Constant or increase of exposure to stimuli, we notice it less, ie absolute threshold increases. Need to gain attention through use of stimuli that conflicts with expectations |
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Weber's Law |
The Just Noticeable Difference between two stimuli is not absolute/fixed The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different |
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Perceptual Selection |
The tendency not notice and more quickly forget stimuli that causes emotional discomfort and contradicts our prior beliefs |
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Selective exposure |
Consumers seek out messages they find pleasant and avoid painful or threatening ones |
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Selective attention |
Consumers exercise a great deal of selectivity in the amount of attention they give to stimuli |
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Perceptual defence |
Consumers screen out stimuli that are important for them not to see, even though exposure has taken place |
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Perceptual blocking |
Consumers protect themselves from being bombarded with stimuli by simply tuning out |
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Attention |
The extent to which processing activity is devoted to a particular stimulus Stimulus factors that affect attention -size and intensity -colour and movement -position -isolation -format -information quality |
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Perceptual Interpretation |
The assignment of meaning to sensations -both a cognitive and affective component -is individual and personal -is based on expectations -interference and weakness of stimuli -the narrower experience, the more limited the interpretation |
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Perceptual distortion |
Physical appearance Descriptive terms Stereotypes expectation of what specific situations or people might be like Irrelevant cues When required to form difficult judgement, respond to irrelevant cues First impressions Tend to be lasting even though perceiver doesn't yet know which stimuli are important Halo effect Evaluation based on only one of many dimensions available |
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Diffusion process |
The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time |
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Adoption process |
the stages through which an individual consumer passes in arriving at a decision to try (or not), to continue using (or discontinue) a new product
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Consumer innovativness |
The degree to which consumers are receptive to new products/services/practices
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Diffusion of innovation |
DIFFUSION is the macro process concerned with the spread of a new product (and innovation) from its source to the consuming public
ADOPTION is a micro process that focuses the stages through which an individual consumer passes when deciding to accept or reject a new product |
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Elements in the defusion process |
-The innovation
(new product/service/idea/practice) -The channels of communications (mass media/salespeople/word of mouth) -The social system (ie target market) -Over a period of time |
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Product oriented definitions |
CONTINUOUS INNOVATION -modification/improvement of existing product -least disruptive DYNAMICALLY CONTINUOUS INNOVATION -new or modified product for an established behaviour/need -mildly disruptive DISCONTINUOUS INNOVATION -consumers required to adopt new behaviour patterns -highly disruptive |
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Product characteristic that influence diffusion |
RELATIVE ADVANTAGE degree to which consumer perceive new product superior to existing substitute COMPATIBILITY degree to which consumers perceive product is consistent with present needs and practices COMPLEXITY degree to which new product is difficult to understand or use degree to which new product is capable of being tied on a limited bases ease with which a product’s benefits can be observed or described topotential consumers |
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Channels of communication |
Speed of innovation depends on communication between: -marketer and consumer -consumer and consumer (word of mouth -impersonal sources (advertising and editorial) -interpersonal sources (salespeople and opinion leaders) Diffusion of new product usually takes place in a social system (ie market segment/target market) Orientation and values of the system influence the speed and acceptance of an innovation |
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Social system influence diffusion |
Diffusion of new product usually takes place within a social system
The values of the members of the social system is likely to influence the acceptance/rejection of new products The more modern a social system, the more accepting of innovation. The more traditional, the more resistance. |
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Time and diffusion |
Purchase time
Amount of time between consumers' initial awareness of new product and point at which they accept/reject it Identification of adopter categories Classification scheme showing where consumer stands compared to others in terms of time taken to adopt new product Rate of adoption How long it takes new product to be adopted by members of social system |
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Adopter categories |
Innovators Very eager to try new ideas, risk taking, more cosmopolitan social relationships, communicate with other innovators Early adopters Integrated into local social systems, group is consulted before adopting new idea, greatest number of opinion leaders, role models Early majority Adopt new ideas just prior to average time, seldom hold leadership positions, deliberate for some time before adopting Late majority Adopt new ideas just after average time, adopting may be both economical necessity and reaction to peer pressure, innovations approached cautiously Laggards Last to adopt innovation, most 'localite' in outlook, oriented to the past, suspicious of the new |
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Sequence and proportion of adopter categories |
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Diffusion enhancement Strategies |
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The adoption process |
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Family |
“Twoor more persons related by blood, marriage or adoption who reside together inthe same household” |
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Changing demographics/trends of the family |
People marrying later Leads to smaller families with fewer children More women continue to work Leads to family unit becoming wealthier Increased number of single-parent families Families now include same-sex couples Growth in non-famiy households De facto relationships increasing More lone-person households Divorce rate 45% |
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Functions of the family |
Socialisation of family members Economic wellbeing Emotional support Provision of a family lifestyle |
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Socialisation of family members |
Imparting basic vales and modes of behaviour
Socialisation skills manners, goals, morals, values passed through direct instruction/observation Consumer socialisation is passing on of marketplace skills and knowledge Child consumer socialisation is where children learn about consumption and purchase behaviour from family members |
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Four family types in the child consumersocialisation process |
Authoritarian parents High level of control over children in attempt to shield from outside influence Engage in socially-oriented communication Neglecting parents Distant from children and do not exert much control over them Minimal effort to encourage capabilities Democratic parents Foster balance between rights of parents and rights of children Encourage self-expression & autonomy Engage in conceptually oriented communication Permissive parents Remove as many restraints from children as possible Believe children have adult rights but few responsibilities |
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Traditional family life cycle/stages |
Young singles
Income spent on rent cars travel entertainment Easy to reach through specialised magazines and TV shows Young marrieds High combined disposable income Considerable start-up home expenses Parenthood Full nest Family structure and needs change over this 20-25 year stage Post-parenthood Empty nest Highest disposable income Retirement provides travel opportunities Dissolution follow more frugal lifestyle |
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Family decision making |
Families interact and influence each other when making purchase decisions Family is decision-making unit Roles include influencer gatekeeper decider buyer user maintainer disposer Consensual purchase decision Members all agree on desired purchase, differing only in how it will be achieved Accommodative purchase decision Members have different preferences or priorities and cannot agree on purchase Factors determining degree of family decision conflict -Interpersonal need -Product involvement and utility -Responsibility -Power |
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Children |
Young children have access to significant discretionary income for personal use Have high level of media exposure From preschool age, children have understanding of TV advertising Many teens work part time, have significant purchasing power and influence over family purchase decisions University aged dependents consume wide range of necessities and discretionary items, and exert influence over purchase decisions |
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Social class |
The division of members of a society into a hierarchy of distinct status classes, so members of each class have relatively the same status, and members of all classes have either more or less status Ranked from low to high status Membership services as reference group for individual's attitudes and behaviour Those who want to advance their social class may emulate the behaviour of that class Many promotional messages are targeted at specific social strata |
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Measurement of social class |
Subjective Self perception Indicates where individuals feel they belong However most classify themselves as middle class Repetitional Judge social class of others in community Approach is somewhat impractical Objective Use demographic or sociaographic information obtained through questionaire Variables include Occupation Income Education Geo-demographic data (sometimes) |
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Nature of social class |
Social standing is derived and influences behaviour upon: -Socioeconomic factors Occupation Education Ownership Income Suburb Social standing Upper class Middle class Working class Lower class Unique behaviours Preferences Purchases Consumption Communication |
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Affluent consumer |
Attractive targets as have disproportionately larger share of discretionary income
Major purchases of sports cars, fashion clothing, expensive alcohol, increased leisure activities More likely to read certain magazines and newspapers eg BRW Watch less TV, but prefer news and current affairs opposed to comedies and soaps This market is limited in Aus, so is not segmented further |
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Middle class consumer |
-Middle 50% of household income -'Households of university educated adults who use computers to make a living, are involved in children's education, confident can maintain quality of family's life' In Western countries, middle class is shrinking China, India Malaysia, middle class is growing |
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Working class and other non-affluentconsumers |
Still attractive segment as represent large numbers of consumers 20% consumers represent low-income earners (10% of disposable income in Aus) Income primarily spent on necessities such as food, clothes, housing. health Food can represent indulgence and this group is most at risk of obesity due to low budget and poor knowledge |
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Subculture |
A subculture is a distinctcultural group that exists as an identifiable segment within a larger, morecomplex multicultural society.Members of a specific subculturepossess: •beliefs•values•customs that set them apart, but otherwiseadhere to most of the dominant cultural beliefs -ETHNICITY -RACE -GENDER |
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Ethnic subculture |
Many Australian citizens retain a sense of identity and pride in languageand customs of their ancestors.Over 200 community languages incommon use.Reflects impact of mass migration toAustralia since World War II.Approximately 25% of Australians were born overseas.76.8% only speak English at home,the rest of the population speak languages such as Mandarin, Italian, Greek andCantonese. Ensures significant markets for people of anon-English-speaking background (NESB).
Ethinic mediain Aus Over 100 publications publishedregularly in over35 non-Englishlanguages.A number of ethnic radio stations.SBS TV and radio dedicated to this market.Pay TV also has several channels dedicatedto programs in specific languages. |
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Religious subculture |
-Most religions are represented inAustralia. -Members of religious groups are, attimes, likely to make purchases that are influenced by their religion. -Consumer behaviour is directly affected by religion interms of products that are symbolically and ritualistically associated with thecelebration of religious holidays e.g. Christmas and Easter. -Religious background affects socialattitudes and needs. |
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Age subcultures |
Australia has an ageing population.People living longer - life expectancy has increased to mid-80s.Fertility rates are steady at 1.89 babies per woman.Generally being born at a later age.Age cohort - a group of individuals born around the same time:e.g. there is a large cohort (baby boomers) now approaching retirement age.Age cohorts of interest due to distinct lifestyles. |
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Generation Z |
1995 onwards Will form 13% of population by 2015.Key characteristics (expected):•workin service-based industries•willmarry later•highchance of being overweight or obese•largeconsumers of internet and technology (touch generation)•spenders•materialistic. |
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Generation Y |
'80-'94
Number approximately 5.3 million Australians. Key characteristics: •moreopento change •verysophisticatedtechnologically •disloyaltobrands, highly loyal to relationships•mostinfluencedby friends and peers •focused on short term wants •creditdependent •apolitical •career-focusedandambitious •media-savvy •highlyeducatedconfidentandself-focused. |
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Generation X |
'65--'79 Number approximately 4 millionAustralians.>Key characteristics: •highlyeducated •lesslikely to own a home •slowerto start a family •notgood savers •spenddisproportionately more on recreation •valuefor money powerful influence on purchase behaviour •jobsatisfaction more important than salary•favour brand names. |
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Baby boomers |
'46-'64
Numberaround 5.1 million Australians.Key characteristics: •consumptionoriented and motivated consumers •stronginterest in leisure and travel •brandloyal •youthfuloutlook (denying aging). |
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Elderly consumers |
Prior to '46/WWII Numberapproximately 3 million Australians.Key characteristics: •perceivethemselves to be younger than their chronological age - fourfactors: feel age, look age, do age,interest age •viewretirement as starting over •lowtechnology/internet knowledge •greaterdiversity of interests, opinions and activities. |
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Culture |
Culturemay be thought of as a society’s personality.
It has: •Abstract ideas – values, ethics,attitudes, etc. •Material objects and services –cars, clothing, food
Cultureis“the sum of total learned beliefs, values and customs that serve to direct theconsumer behaviour of members of a particular society” Cultureincludes shared meanings, rituals, norms and traditions among the members of anorganisation or society |
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Ritual |
A type of symbolic activity consisting of a series ofsteps (multiple behaviours) occurring in a fixed sequence and repeated over time” (Schiffman et al., 2014: 400)Øe.g.,18th birthday, graduation, weddingRitualised behaviour is typically formal andis often scripted behaviour(e.g.,church,law court).For marketers, rituals tend to haveproducts (ritual artefacts) associated with them. |
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Australian 10 core values |
•Achievement •Power •Hedonism (pleasure, indulgence) •Stimulation (excitement, change) •Self-direction •Universalism (social justice, nature)•Benevolence •Tradition •Conformity •Security |
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Useof Culture by Marketers |
-Appropriate symbols - -Observe customs§ -Consider groups possibly alienated -Achieve resonance (fit betweenmessage and feelings of consumer) -Offerings tailored to ritual eg weddings/Christmas |
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A Framework for Alternative Global Marketing Strategies |
For a standardised product, the communicationsstrategy should be
Standardised Communications -Global Strategy Uniform product / Uniform Message
Localised Communications -Mixed Strategy Uniform product / Customised message For a localised product, the communications strategy should be StandardisedCommunications MixedStrategy Customisedproduct / Uniform Message LocalisedCommunications LocalStrategy Customisedproduct / Customised Message |
