Consumer Behavior Exam 1 UCF

Consumer behavior

study of individuals, groups, or organizations and their processes used to select and use products/services which have different impacts on the market

Consumer behavior factors

Demographics, lifestyle, and culture values

External infuences

Culture, subculture, demographics, social status, reference groups, family, marketing activities

Internal Influences

Perception, learning memory, motives, personality, emotions, attitudes

Internal and external influences lead to

Self concept and lifestyle

Self concept and life style lead to

Needs, desires, and the decision process

Decision process

(Situations)

-> problem recognition -> information search -> alternative evaluation & selection -> outlet selection & purchase -> post purchase processes

Market Segment

Portion of large market hose needs differ somewhat from the larger market

Ultimate purpose of segmentation

Segments are unique and firms that segment their products are more successful than others

Steps in market segmentation

1. Identify product related need sets

2. Grouping customers with similar needs

3. Describing each group

4. Selecting an attractive segment to serve

Marketing strategy

How a company provides superior customer value to its target market involving the formulation of a marketing mix.

Bringing value to a customer

Providing a customer more value than a competitor while reaping a profit

Difference of value

Difference between all benefits derived from a total product and all costs of acquiring those benefits

Most reliable way to achieve sustainable competitive advantage

Differentiation, creating better value than competition

AMA Code of ethics

Honesty, fairness, respect, transparency, citizenship

Culture

complex whole that includes knowledge, belief, art, law, morals, customer, and any other capabilities and habits acquired by humans as members of society

Norms

Rules that specify or prohibit certain behaviors in a specific situation

Values

widely held beliefs that affirm what is desirable

Sanctions

penalties ranging from mild social disapproval to banishment

Self oriented values

reflect the objectives and approaches to life that the individual members of society find desirable

Other oriented values

reflect a society's view of the appropriate relationships between individuals and groups within that society

Environment oriented values

A society's relationship to its economic, technical, and physical environment

Hofstede's dimensions

Power distance, individualism, masculinity, long term orientation, uncertainty avoidance, indulgence

Power distance

Extent to which the less powerful accept and expect unequal distribution

Individualism

extend to which people feel independent

Standardization

Expanding globally but not adapting to local culture to save on costs

Glocalization

adapting products/services to local culture on a global scale (mcdonalds varying menu)

Purchasing power

households income level combines with accumulated wealth

Cognitive

ones perceived age, a part of one's self concept

Age cohort

group of persons who have expienceed common social, political, historical and economic environment

Cohort analysis

process of describing and explaining the attitudes, values, and behaviors of cohorts

Social class

hierarchical division of society into relatively distinct and homogeneous groups

Conspicuous consumption

purchasing expensive items to demonstrate one's wealth. Flexing

Family decision making

process by which decisions that directly orindirectly invovle two or more family members

Consumer socialization

process by which young people acquire skills, knowledge, and attitudes relevant to their functioning

Brand communities

non geographically bond community based on structures set of social relationships among owners of brand and psychological relationships w brand

Consumption subculture

distinctive subgroup of society that self selects on the basis of a shared commitment to particular class, brand, or activity.

Information influence

occurs when an individual uses the behaviors and opinions of reference group as potentially useful

Normative influence

Occurs when an individual fulfills group expectations to gain direct reward or avoid sanction

Identification influence

Occurs when an individual has internalized group norms and values

Acculturation

Degree to which immigrants have adapted to new culture

What is the predominant subculture in the US for Hispanics?

Mexican Americans

McNeal's model

Observing, making requests, making selections, assisted purchases, independent purchases

Market maven

crucial amounts of information to members about extensive range of products

Stimulation

Themes that encourage current owners of a brand to talk about impressions of brand

Simulation

Involves having widely acknowledged opinion leaders recommending a product or brand in an advertisement

Brand community

Non geographically bound community that is based on structured set of social relationships among owners of a brand and psychological relationship they have with the brand itself