Marketing Management: Consumer Behavior and Market Segmentation

Comprehensive vocabulary flashcards covering consumer behavior determinants, the ABC model of attitudes, Maslow's hierarchy, bases of market segmentation, and requirements for effective segmentation.

Motivation

An internal state that drives an individual to satisfy needs by activating goal-directed behavior.

Perception

The process by which an individual selects, organizes, and interprets information to form a meaningful picture of the world.

Attitudes

A person's enduring evaluation of his or her feelings about, and behavioral tendencies toward, an object or idea.

ABC Model of Attitudes

A framework illustrating the three components of an attitude: Affect (feelings), Behaviors, and Cognitions (beliefs and thoughts).

Maslow's Hierarchy of Needs

A psychological theory that arranges human needs in ascending order: physiological needs (hunger, thirst), safety needs (security, protection), social needs (belonging, love), esteem needs (status, recognition), and self-actualization needs (self-development, realization).

Learning

The change in an individual's behavior arising from experiences, occurring through the interplay of drives, stimuli, cues, responses, and reinforcement.

Subcultures

Groups of people with shared value systems based on common life experiences and situations.

Reference Groups

One or more people whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors.

Opinion Leaders

Influential individuals who frequently affect the attitudes and behaviors of others, often having high category interest, updated knowledge, and being among the first to buy goods.

Market Segmentation

Dividing a total market into smaller segments of consumers with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

Creating Value for Targeted Customers

A strategic model composed of selecting customers to serve (via segmentation and targeting) and deciding on a value proposition (via differentiation and positioning).

Targeting

The process of evaluating each market segment's attractiveness and selecting the segment or segments to enter.

Differentiation

Differentiating the firm's market offering to create superior customer value.

Positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers.

Geographic Segmentation

Dividing a market into different geographical units such as nations, regions, states, countries, or cities.

Demographic Segmentation

Dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race, and generation.

Psychographic Segmentation

Dividing buyers into different groups based on social class, lifestyle, personality traits, motives, or geodemographics.

Self-values

A person's overarching goals for life and how they desire to live their life.

Self-concept

An individual's perception and mental image of oneself; how a person sees themselves.

Lifestyle (AIO)

A pattern of consumption reflecting a person's choice of how they spend time and money, defined by activities, interests, and opinions.

Big Five Personality Traits (OCEAN)

A model of personality traits consisting of openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Geodemographic Segmentation

The practice of grouping potential customers into neighborhood lifestyle categories by combining geographic, demographic, and lifestyle variables.

PRIZM (Potential Rating Index for Zip Markers)

A geodemographic classification system that groups consumers into distinct neighborhood lifestyle segments such as Brite Lites, Li'l City; Kids & Cul-de-Sacs; Gray Power; and Big City Blues.

Benefits Sought Segmentation

Grouping consumers into market segments according to the specific product benefits and attributes they find most important.

Segment Profile

A description of the typical demographics, media patterns, involvement, and characteristics of consumers in a specific segment, helping marketers adjust marketing mix elements.

Behavioral Segmentation

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product, such as occasion-based purchasing or usage rates.

Pareto Principle (80/20 Rule)

The law of the vital few stating that approximately $20\%$ of all customers generate $80\%$ of the demand.

Differentiable (Segmentation Requirement)

A criterion where segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

Measurable (Segmentation Requirement)

A criterion where the size, purchasing power, and profiles of the segments can be determined and quantified.

Substantial (Segmentation Requirement)

A criterion ensuring that the market segments are sufficiently large or profitable enough to serve.

Actionable (Segmentation Requirement)

A criterion ensuring that effective programs can be designed for attracting and serving the identified market segments.