Consumer Behavior MKT 351

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Exam 1 Study Ch. 1-5

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52 Terms

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Segmentation

Process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.

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Target Market

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix.

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Positioning

The place that a brand occupies in the mind of the customer and how it is distinguished from competitors' products.

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Repositioning

Changing consumers' perceptions of a brand in relation to competing brands.

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Marketing Mix

The 4 Ps: Price, Place, Product, Promotion.

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Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products.

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External Influences

Factors such as culture, subculture, demographics, social status, reference groups, and family that affect consumer behavior.

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Norms

Specify ranges of appropriate behavior.

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Values

Enduring beliefs upon which a person acts.

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Sanctions

Penalties for violating norms.

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Nonverbal communication

Time:

• Monochronic – linear and fixed

• Polychronic – less discrete and subject to detailed scheduling

Space: your personal space (and its size)

Symbols: hand gestures, color meaning, beauty standards/expectations

Relationships: power distance, norms

Agreements: formality of contracts, expectations

Things: gift giving, materialism

Etiquette: what is rude vs not (such as Americans being very loud in public

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Monochronic Time

A time orientation that is linear and fixed, where time is seen as set and to be strictly followed.

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Polychronic Time

A time orientation that is less discrete and subject to detailed scheduling, where time is seen as flexible.

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Myths

Stories that express a culture’s values and include symbolic elements representing shared emotions or ideals.

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Rituals

Symbolic behaviors that occur in a fixed sequence and are repeated periodically.

  • Grooming

  • Gift-giving

  • Holidays

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Cultural Appropriation

The act of taking or using things from a culture that is not your own without showing understanding or respect for that culture.

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Cultural Shifts

Significant changes in societal values, beliefs, norms, and practices.

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Other-oriented

  • Individual/collective

    • Do we value individualism, or do we prefer to stick with a group?

  • Competition/Cooperation

    • Do we encourage working together, or standing out?

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Self-oriented

  • Sensual gratification/abstinence

    • Do we want people to indulge, or abstain?

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Cause-related Marketing

Marketing that ties a company and its products to an issue or cause to improve sales or corporate image.

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Fit

Refers to how well the nonprofit and the for profit organizations go together, seem like the partnership makes sense, or "fit" together.  

  • So, Chevrolet and American Cancer Society has low fit or bad fit, Apple and (RED)  has low/bad fit, but Home Depot and Habitat for Humanity have good or high fit

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Social Marketing

An approach that uses marketing techniques to influence behavior for the benefit of individuals and society.

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Things to consider when doing LGBTQ+/gender-based marketing

  • LGBTQ+ cares about what the product/company supports

    • 65% of LGBTQ+ consumers buy from brands that support causes they care about

  • Gender roles

  • Ascribed role: little control over

  • Achievement role: based on performance and individuals can control (somewhat)

    • Women are more likely to do the shopping for the home and everyone in the home

    • Women influence more than 85% of car purchases

    • And 62% of cars sold were bought by women

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Demographics

Describes a population in terms of its size, distribution, and structure.

  • Occupation

  • Education

  • Income

  • Age

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Cognitive Age

Changes in the ability to think, learn, and remember that occur as individuals age.

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Pre-depression (greatest) Generation

Individuals born prior to 1930

Remember: WWII, and may have served

Products: Health services, single-serving prepared foods

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Depression (silent) generation

Born between 1930-1945

Products: Travel, active lifestyle products, financial services

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Baby boom generation

Born between 1946-1964

Remember: Vietnam War (but may have been too young to be drafted

Products: Gifts for grandkids, travel, school supplies, anti-aging products

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Generation X (forgotten)

Individuals born between 1965 and 1976, known for their entrepreneurial spirit and emphasis on career advancement.

Products: food at home, housing, healthcare, entertainment, transportation

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Generation Y (Millennials)

Individuals born between 1977 and 1994, characterized by independence and diversity.

Remember: 9/11, Great Recession, climate change

Products: Brand names, customizable products, have stared buying houses, building families

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Generation Z

Individuals born between 1995 and 2009, known as digital natives and open to diversity.

  • Products:

    • Want constantly updated offerings and variety

    • Omnichannel shoppers

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Generation Alpha

Born 2009 and on

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Social Classes

a hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles

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Upper-upper class

old money - inherited wealth

Buy: luxury cars, original art, travel

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Lower-upper class

“Nouveaux-riche”

Conspicuous consumption

Buy: Yachts, clothes, homes, automobiles

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Upper-middle class

Occupation and education is key identifier

Typically college grads

Buy: Financial services, furniture, travel

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Middle class

White-collar and high-paid blue-collar workers

Sensitive to shifts in the economy

Buy: Modest homes, DIY projects, retirement planning

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Working class

Skilled and semiskilled factory, service, and sales workers

Live in somewhat undesirable neighborhoods

Buy: Fewer experiences (vacations, concert tickets) and more physical products (a nicer TV, products for hobbies or home improvement)

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Upper-lower class

Poorly educated and often have minimum-wage jobs

Buy: What they need, Walmart and Dollar General

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Lower-lower class

Very low incomes, very little education

Buy: Rent to own goods, Often taken advantage of: “sin” product marketing

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Subcultures

A segment of a larger culture whose members share distinguishing values and patterns of behavior.

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African Americans

  • In general:

    • Buying power is expected to increase

  • Products should consider their unique needs

  • Communication should target the sub-subculture and income level

  • Cultural shift:

    • Consumers are expecting more from brands that are targeting minority groups

  • Consumers expect brands to include other groups

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Hispanics

  • In general:

    • Also, have an expected growth in buying power that is greater than whites’

    • Are the fastest growing ethnic subculture in the US

  • Communication should include Spanish-language media

    • McDonald's Example

  • Consider level of acculturation

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Asian Americans

  • In general:

    • Highest-educated and highest-income subculture

    • Also has higher expected growth than whites

  • Most diverse group

  • In-language communication is great – but be sure to choose the right language!

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Native Americans

  • In general:

    • Also expected to have higher growth rate of buying power

    • Have been taking increasing pride in heritage and less tolerant of stereotypes

      • Land O’Lakes

  • Typically geographically concentrated

  • Marketing efforts should focus on long-run support and involvement

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Asian-Indian Americans

  • In general:

    • Value education and financial security

  • Range of religious subcultures

    • Hinduism

    • Buddhism

    • Jainism

    • Sikhism

    • Islam

    • Judaism

    • Christianity

    • Zoroastrianism

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Arab Americans

  • In general:

    • Most live in urban areas (LA, NYC, Detroit, Chicago, and DC)

    • Tend to be stereotyped

  • Religion:

    • 63% Christian

    • 24% Muslim

    • 13% other or no affiliation

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Religion

  • Roman Catholic

  • Protestant

  • Born-Again Christian

  • Jewish

  • Muslim

  • Buddhist

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Acculturation

The degree to which an immigrant has adapted to his or her new culture.

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Generational differences in ethnic subcultures

  • Income, education, language, and identification with the culture change over generations

  • Japanese Americans:

    • Issei: first generation

    • Nisei: second generation

    • Sansei: third generation

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Regional subcultures

variations in consumer preferences and behaviors based on geographic locations

  • Example: Marketing strategies for products in Quebec may emphasize French language and culture, reflecting the distinct regional identity within Canada

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Standardization

Creating a uniform marketing approach across different markets. When you keep your product the same regardless of your target market

EX: the iPhone itself and its features will be the same