2023_session 1_Introduction to Consumer Behavior

Consumer Behavior

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Marketing Strategy

A plan of action designed to promote and sell a product or service, taking into account the target market, competition, and overall business goals.

Behavioral Insights

The application of behavioral science to understand and influence human behavior, often used in the design of public policies.

Decision-making processes

The cognitive processes involved in making choices, including gathering information, evaluating options, and selecting the best course of action.

Internal Influences on Consumer Behavior

Factors within the individual that affect their decision-making process, such as emotions, heuristics, and individual learning theories.

External Factors on Consumer Behavior

Factors outside of the individual that influence their decision-making process, such as social power, cultural values, and the impact of new technologies.

Consumer Values

The beliefs and principles that guide consumer behavior and influence their preferences and choices.

Sensory Marketing

The use of sensory stimuli, such as scent and music, to create a positive consumer experience and influence consumer behavior.

Nudging

A behavioral economics concept that involves subtly influencing people's choices and behaviors through positive reinforcement and indirect suggestions.

Grounded Cognition

A theory that suggests that cognitive processes are influenced by sensory experiences and bodily sensations.

Big Data

Large and complex data sets that can be analyzed to reveal patterns, trends, and associations, often used in predicting customer preferences and behaviors.

Gen Z

A new generation of consumers with specific desires, mentioned as a challenge for companies to attract and understand.

Alterations

Changes or modifications that a company has recently experienced.

Communication and distribution strategy

A plan developed to effectively reach and engage potential customers, considering how the company communicates and distributes its products or services.

Personas

Detailed characterizations of the new type of customers the company may be dealing with, including their specific consumption behavior and preferences.

Cost estimation

The process of estimating the expenses or budget required for proposed activities or strategies.

Target audience

The specific group of people that the company aims to reach and attract with its products or services.

Consumers

The individuals or groups who purchase and use products or services.

Purchaser

an actor in the consumer behavior process who makes the actual purchase.

User

an actor in the consumer behavior process who uses the product.

Influencer

an actor in the consumer behavior process who influences the purchasing decision.

Knowledge and data about customers

helps to define the market, identify threats/opportunities to a brand, develop appropriate marketing and communication tools, and identify emerging segments.

Marketing Strategy Framework

a framework that includes strategic objectives, situational analysis, description of segments, positioning and targeting, core strategy, and implementation of the marketing mix.

Traditional-Oriented Strategy

A traditional-oriented strategy refers to a business approach that focuses on maintaining and preserving traditional practices and values. This strategy is often seen in industries or organizations that have a long history and strong adherence to established norms and customs. It involves resisting change and innovation in favor of maintaining stability and continuity. The goal of a traditional-oriented strategy is to uphold traditional methods, processes, and values, even in the face of evolving market conditions and technological advancements.

Customer-Oriented Strategy

A customer-oriented strategy is a business approach that focuses on meeting the needs and preferences of customers. It involves understanding customer expectations, delivering high-quality products or services, and providing excellent customer service. This strategy aims to build long-term relationships with customers, increase customer satisfaction, and ultimately drive business growth. Examples of customer-oriented strategies include personalized marketing campaigns, offering customized products or services, implementing loyalty programs, and actively seeking and responding to customer feedback.

Customer-centric

Customer-centric refers to a business approach that focuses on meeting the needs and preferences of customers. It involves putting the customer at the center of all business decisions and strategies. This approach aims to enhance customer satisfaction, loyalty, and overall experience.

Product Centric

Product Centric Marketing is a marketing approach that focuses on promoting and selling a specific product or range of products. It involves creating marketing strategies and campaigns that highlight the features, benefits, and unique selling points of the product to attract and engage customers. This approach typically emphasizes product development, pricing, and distribution strategies to maximize sales and profitability. Product Centric Marketing is commonly used by companies that have a strong product portfolio and want to drive sales by showcasing their products to the target audience.nknown

Brand perception

how consumers perceive a brand

Media usage

the types of media that consumers use

Communication

the type of communication that consumers are reactive to