marketing strategies real people real choices 8th edition chapter 6

consumer behavior

The process involved when individuals or groups select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Involvement

The relative importance of perceived consequences of the purchase to a consumer.

Perceived Risk

The belief that choice of a product has potentially negative consequences, whether financial, physical, and/or social

Problem Recognition

The process that occurs whenever the consumer sees a significant difference between his current state of affairs and some desired or ideal state; this recognition initiates the decision-making process.

Information search

The process whereby a consumer searches for appropriate information to make a reasonable decision.

Search Marketing

Marketing strategies that involve the use of internet search engines.

Search Engine Optimization (SEO)

A systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business.

Search Engine Marketing (SEM)

Search marketing strategy in which marketers pay for ads or better positioning.

Sponsored search ads

Paid ads that appear at the top or beside the internet search engine results.

Comparison shopping agents or shopbots

Web applications that help online shoppers find what they are looking for at the lowest price and provide customer reviews and ratings of products and sellers.

Evaluative Criteria

The dimensions consumers use to compare competing product alternatives.

Heuristics

A mental rule of thumb that leads to a speedy decision by simplifying the process.

Brand Loyalty

A pattern of repeat product purchases, accompanied by an underlying positive attitude toward the brand, based on the belief that the brand makes products superior to those of its competition.

Consumer Satisfaction/dissatisfaction

The overall feelings or attitude a person has about a product after purchasing it.

Cognitive Dissonance

The anxiety or regret a consumer may feel after choosing from among several similar attractive choices.

Perception

The process by which people select, organize, and interpret information from the outside world.

Exposure

The extent to which a stimulus is capable of being registered by a person's sensory receptors

Subliminal Advertising

Supposedly hidden messages in marketers' communications.

Attention

The extent to which a person devotes mental processing to a particular stimulus.

Interpretation

The process of assigning meaning to a stimulus based on prior associations a person has with it and assumptions he or she makes about it.

Motivation

An internal state that drives us to satisfy needs by activating goal-oriented behavior.

Hierarchy of needs

An approach that categorizes motives according to five levels of importance, the more basic needs beings on the bottom of the hierarchy and the higher needs at the top.

Gamification

A strategy in which marketers apply game design techniques, often by awarding of points, badges, or levels, to non-game experiences in order to drive consumer behavior.

Learning

A relatively permanent change in behavior caused by acquired information or experience.

Behavioral Learning Theories

Theories of learning that focus on how consumer behavior is changes by external events or stimuli.

Classical Conditoning

The learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on it own but will cause a similar response over time because of its association with the first stimulus.

Operant Conditioning

Learning that occurs as the result of rewards or punishments.

Cognitive learning theory

Theory of learning that stresses the importance of internal mental processes and that views people as problem solvers who actively use information from the world around them to master their environment.

Observational learning

Learning that occurs when people watch the actions of others and note what happens to them as a result.

Attitude

A learned predisposition to respond favorably or unfavorably to stimuli on the basis of relatively enduring evaluations of people, objects, and issues.

Affect

The feeling component of attitudes; refers to the overall emotional response a person has to a product.

Cognition

The knowing component of attitudes; refers to the beliefs or knowledge a person has about a product and its important characteristics.

Behavior

The doing component of attitudes; involves a consumer's intention to do something, such as the intention too purchase or use a certain product.

Personality

The set of unique psychological characteristics that consistently influence the way a person responds to situations in the environment.

Self-concept

An individual's self image that is composed of a mixture of beliefs, observations, and feelings about personal attributes.

Family Life Cycle

A means of characterizing consumers within a family structure on the basis of different stages through which people pass as they grow older.

Lifestyle

The pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences.

Psychographics

The use of psychological, sociological, and anthropological factors to construct market segments.

AIOs

)measures of consumer activities, interests, and opinions used to place consumers into dimensions.

Sensory Marketing

Marketing techniques that link distinct sensory experiences such as a unique fragrance with a product or service.

Sensory Branding

The use of direct sensor experiences not only to appeal to customers but also to enhance their brand.

Time Poverty

Consumers' belief that they are more pressed for time than ever before.

Culture

The values, beliefs, customs, and tastes a group of people values.

Subculture

A group within a society whose members share a distinctive set of beliefs, characteristics, or common experiences.

Microcultures

Groups of consumers who identify with a specific activity or art form.

Consumerism

a social movement that attempts to protect consumers from harmful business practices.

Social Class

The overall rank or social standing or groups of people within a society according to the value assigned to factors such as family background, education, occupation, and income.

Status symbols

Visible markers that provide a way for people to flaunt their membership in higher social classes (or at least to make others believe they are members)

Mass class

The hundreds of millions of global consumers who now enjoy a level of purchasing power that's sufficient to let them afford high-quality products -except for big ticket items like college educations, housing, or luxury cars.

Reference group

An actual or imaginary individual or group that has a significant effect on an individual's evaluations, aspirations, or behavior.

opinion Leader

A person who is frequently able to influence others' attitudes or behaviors by virtue of his or her active interest and expertise in one or more product categories.

Gender roles

Society's expectations regarding the appropriate attitude, behaviors, and appearance for men and woman.

Business to business (B2B) markets

The group of customers that include manufacturers, wholesalers, retailers, and other organizations. -- (Also referred to as Organizational markets)

Derived Demand

Demand for business or organizational products caused by demand for consumer goods or services.

Inelastic Demand

Demand in which changes in price have little or no effect on the amount demanded.

Joint demand

Demand for two or more goods that are used together to create a product.

Producers

The individual or organizations that purchase products for use in the production of other goods and services.

Resellers

The individuals, or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations.

Governmental markets

The federal, state, county and local governments that buy goods and services to carry out public objectives and to support their operations.

North American Industry Classification System (NAICS)

The numerical coding system that the united states, Canada, and Mexico use to classify firms into detailed categories according to their business activities.

Buyclass

One of three classifications of business buying situations that characterizes the degree of time and effort required to make a decision.

Straight rebuy

A buying situation in which business buyers make routine purchases that require minimal decision making.

Modified rebuy

A buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making.

new task buy

A new business-to-business purchase that is complex or risky and that requires extensive decision making.

Buying center

The group of people in an organization who participate in a purchasing decision.

Product specifications

A written description of the quality, size, weight, and other details required of a product purchase.

Consumer reference program

A formalized process by which customers formally share success stories and actively recommend products to other potential clients, usually facilitated through an on-line community.

Single sourcing

The business practice of buying a particular product from only one supplier.

Multiple sourcing

the business practice of buying a articular product form several different suppliers.

Reciprocity

A trading partnership in which two firms agree to buy from one another.

outsourcing

the business process of obtaining outside vendors to provide goods or services that otherwise might b supplied in-house.

Offshoring

A process by which companies contract with companies or individuals in remote places like China or India to perform work they used to do at home.

Crowdsourcing

A process in which firms outsource marketing activities (such as selecting an ad) to a community of users.

Reverse marketing

A business practice n which a buyer firm attempts to identify suppliers who will produce products according to the buyer firm's specifications.

Business-to-business e-commerce

on-line exchanges between companies and individual consumers.

Intranet

An internal corporate communication network that uses internet technology to link company departments, employees, and databases.

Extranet

A private, corporate computer network that links company departments, employees, and databases to suppliers and others outside the organization.

Malware

Software designed specifically to damage or disrupt computer systems

Firewall

A combination of hardware and software that ensures that only authorized individuals gain entry into a computer system.

Encryption

The process of scrambling a message so that only another individual (or computer) with the right "key" can unscramble it.