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What is Consumer Behaviour?
The Study of processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
Characteristics of a personal consumer?
- -Purchase for self, family friend, household
Characteristics of an organizational Consumer?
- -A business, government agency, or other institution (profit and not-for-profit)
- -Purchase for organization
What is the Production Concept?
Assumes that consumers are interested primarily in product availability at low prices.
What is the product concept?
Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features.
What is the Selling Concept?
Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so.
What is the Marketing Concept?
Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition.
What is Primary Research?
When the data is collected by the researcher specifically for the research question at hand.
What is Secondary Research?
When the researcher uses pre-existing data to anwser a new research question.
What do Brands do?
- -They convey image/ personality
- -help us to form bonds with others who share similar preferences
What is Segmentation?
Process of dividing the market into subsets of consumers with common needs or characteristics.
What is Targetting?
The selection of one or more of the segments to pursue.
What is Positioning?
Developing a distinct image for the product in the mind of the consumer.
What are the 4P's of the product mix?
Product, Price, Place, Promotion.
What is Customer Value?
- -Customer's Perceived benefits and the resources needed to obtain them
- -Relative and subjective
- -Value proposition
What is Customer Satisfaction?
- -Perception vs. Expectations
What is Customer Retention?
- -The objective of providing value is to retain highly satisfied customers.
- -Loyal customers are key.
What is Consumer Addiction?
Psychological dependency on products or services. Ex// Alcohol, smoking, drugs.
What is the definition of segmentation?
The process of grouping customers within a market according to similar needs, habits or attitudes that can be addressed through marketing.
Behavioral and attitudinal segmentation?
Ex// Benefits sought , rate of usage, attitude toward product and usage, price sensitivity.
What is Demographic segmentation?
Age, Gender, family status, household size, income, occupation, education.
Geographic segmentation is?
Location, distance, climate.
What is psychographic segmentation?
Lifestyle, activities, interests
What is VALS framework?
Slide 27/76 Lecture slides 2.1
What is Concentrated Marketing?
Concentrated on one segment.
What is differentiated marketing?
Several segments with individual marketing targets.
Physiological (or biogenic) needs that are considered primary needs or motives.
Generally psychological (or psychogenic) needs that are considered secondary needs or motives
- -The general categories of goals that consumers see as a way to fulfill their needs.
- -Ex// "I want to get a graduate degree."
- -The specifically branded products or services that consumers select as their goals.
- Ex// "I want to get an MBA in Marketing from Kellogg School of Management."
4 characteristics of selecting a goal?
- -Personal experiences
- -Physical capacity
- -Prevailing cultural norms and values
- -Goal's accessibility in the physical and social environment.
A positive goal toward which behaviour is directed.
A negative goal from which behaviour is directed away.
Rationality implies that consuimers select goals based on totally objective criteria such as size, weight, price, or miles per gallon.
- The selection of goals according to personal or subjective criteria.
- -These can be powerful.
Failure to achieve a goal may result in frustration. Some adapt; others adopt defense mechanisms to protect their ego.
What are the 7 defense mechanisms against frustration?
What are the 4 arousal of Motives?
- -Physiological arousal
- -Emotional arousal
- -Cognitive arousal
- -Environmental arousal
What is Physiological arousal?
Bodily needs at any one specific moment in time.
What is Cognitive Arousal?
Ex// An advertisement that provides reminders of home might trigger instant yearning to speak with one's parents.
Behaviorist school philosophy?
- -Behaviour is response to stimulus
- -Elements of conscious thoughts are to be ignored
- -Consumer does not act, but reacts.
- Ex// A buyer who buys on impulse.
What is the Cognitive school philosophy?
- - Behavior is directed at goal achievement
- -Need to consider needs, attitudes, beliefs, etc. in understanding consumer behavior.
What are Maslow's Hierarchy of Needs?
- -Self Actualization (Self-fulfillment)
- -Ego Needs (Prestige, status, self-esteem)
- -Social Needs (affection, friendship, belonging)
- -Safety and Security Needs (Protection, order, stability)
- -Physiological Needs (Food, air, water, shelter)
What are the trio of needs?
- -Power- individual's desire to control environment.
- -Affiliation- Need for friendship, acceptance and belonging.
- -Achievenment-Need for personal accomplishment, closely related to egoistic and self-actualization needs.