Consumer Behavior and Market Segmentation Review

These flashcards cover key terms and definitions from chapters 6, 8, and 9, focusing on consumer behavior, market segmentation, and marketing research.

Consumer Behavior

Processes a consumer uses to make purchase decisions, use, and dispose of goods and services.

Perceived Value

The value a consumer expects to obtain from a purchase.

Utilitarian Value

Value derived from a product that helps solve problems or accomplish tasks.

Hedonic Value

Value that acts as an end in itself, focused on pleasure or emotion.

Need Recognition

Result of an imbalance between actual and desired states triggered by internal or external stimuli.

Evoked Set

Group of brands resulting from an information search from which a buyer can choose.

Nudge

Small intervention that can influence or change a person's behavior.

Cognitive Dissonance

Inner tension after recognizing an inconsistency between behavior and beliefs.

Jilting Effect

Anticipating a desirable option only for it to become unavailable.

Churning

When many customers switch brands due to dissatisfaction or competition.

Market Segmentation

Dividing a market into meaningful and measurable groups with similar needs or characteristics.

Demographic Segmentation

Segmenting markets by age, gender, income, ethnicity, or household life cycle.

Psychographic Segmentation

Segmenting based on personality, motives, and lifestyle.

Behavioral Segmentation

Grouping customers based on buying behavior such as usage rate or loyalty.

Target Market

A group a company aims its marketing mix toward.

Undifferentiated Targeting Strategy

One marketing mix for an entire market.

Concentrated Targeting Strategy

Focusing marketing efforts on one specific segment (niche).

CRM

Customer Relationship Management uses data to personalize offerings and build loyalty.

Sampling

Selecting a subset from a larger population for research.

Probability Sample

Each element has a known chance of being selected.

Random Error

Variation caused by chance when selecting samples.