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- Acquiring information on events outside the organization to identify and interpret potential trends
Demographic characteristics of the population and its values.
Description of a population according to characteristics such as age, gender, ethnicity, income, and occupation
Born between 1946-1964
- 56-58% most consumer products
- Concern for children, grandchildren, health, and retirement.
- Born between 1965-1976
- "Baby Bust" number of children born declined each year
- Self-reliant, supports racial/ethnic diversity, better educated than previous generation.
Income, expenditures, and resources that affect the cost of running a business or household.
- Slow economic activity
- Businesses decrease production, unemployment rises, many consumers have less money
Amount of money made in one year by a person, household or family unit
Money a consumer has after paying taxes to use for food, shelter, clothing, transportation.
Money after paying taxes and necessities.
- Inventions from applied science or engineering research.
- Each new wave can replace existing products and companies.
Each company has a similar product.
One firm sells the product.
- Restrictions state and federal laws place on businesses with regard to the conduct of its activities.
- *exist to protect companies as well as consumers*
- Moral principles and values that govern the actions and decisions of an individual or group
- *Serve as guidelines on how to act rightly and justly when faces with moral dilemmas*
- Society's standards and values that are enforceable in the courts.
- 58% of US adults rate the ethical standards of business execs as only "fair to poor"
- 90% think white-collar crimes are common
- 76% say lack if ethics in business people contribute to tumbling societal moral standards
Consumer Bill of Rights
Codified the ethics of exchange between buyers and sellers, including rights to safety, to be informed, to choose, and to be heard.
Charging manufactures cash or free goods to stock new products.
Collection of trade secrets of proprietary information about a company's competitors.
Accepting gifts, consultant fees, and favors
Code of Ethics
- Formal statement of ethical principles and rules of conduct.
- *86% if companies have some sort of ethics code and one of every four large companies has corporate ethics officers*
Employees who report unethical or illegal actions of their employers.
- Moral philosophy that focuses on the "greatest good for the greatest number."
- *if the benefits exceed the costs, then the behavior is ethical. If not, then the behavior is unethical*
Purchase decision process
- Stages a buyer passes through in making choices about which products or services to buy
- *Five Stages:
- Problem Recognition
- Information Search
- Alternative Evaluation
- Purchase Decision
- Post-Purchase Behavior
- Actions a person takes in purchasing and using products and services
- *Includes the mental and social processes that come before and after these actions**
Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision.
Scanning your memory for previous experiences with products or bands
- Personal, social, and economic significance of a purchase to the consumer.
- *High involvement-Buying a house or car
- *low involvement- Toothpaste or soap
Post purchase behavior
- After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied.
- *Satisfied buyers tell three other people about their experience, dissatisfied, nine people*
Energizing force that stimulates behavior to satisfy need
Someone's consistently behavior or responses to recurring situation
*Guides and directs behavior*
the way people see themselves and the way they believe others see them
- Process by which someone selects, organizes, interprets information to create a meaningful picture of the world.
- *Depends on what important to the person*
Anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase.
- Behaviors that result from repeated experience or reasoning
- *Helps consumers in purchase decisions*
- Favorable attitude toward and consistent purchase of a single brand over time.
- *Results from the positive reinforcement of previous actions. Reduces risk and saves time*
- Tendency to respond to something in a way consistently favorable or unfavorable way.
- *shaped by our values and beliefs*
- Consumer's perceptions of how a product or brand performs.
- *Based on personal experience, advertising, and discussions with other people*
- Individuals who have social influence over others.
- *Important for products & services that provide a form of self-expression*
Word of mouth
- People influencing each other in personal conversations.
- *most powerful and authentic information sources. Viewed as trustworthy among friends.*
Of US consumer product sales are based on word of mouth.
- People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
- *Affects consumer purchases. Influences info, attitudes, and aspiration levels that help set consumer standards.
Subgroups within a larger culture. Have unique values, ideas and attitudes.
- Members born between 1977-1994
- 72 million
- Increased births, as a result of the Baby Boomers having children.
- Systematic assessment of a firm's objectives, strategies, and performance in the domain of social responsibility.
- *Ronald McDonald houses*
Idea that organizations are part of a larger society and are accountable to that society for their actions.
Marketing efforts to produce, promote, and reclaim environmentally sensitive products.
3 largest social ethnic subcultures in US
Will account for almost $3 trillion for goods and services in 2012
- 50% immigrants under 25
- Will pay premium price for quality
- Prefer American-made products
- Strongly influences by family and peers.
- 2nd largest spending power of 3
- Focus on comparing w/ Caucasians
- Spend on clothing, rentals, and audio.
- Motivated by quality and choice.
- 70% immigrants under 35
- Highly Educated who hold managerial and professional positions
- Taste is sensitive to specific Asian nationalities
- Hard work, family ties, appreciation for education
- The most entrepreneurial in US