Consumer Behavior Exam 1

consumer behavior

The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

needs, identity

We choose brands that have an image consistent with our ____ & desires and that is aligned with our _____

self-concept

Consumer Brand Attachments: _______

The product helps to establish the user’s identity

nostalgic

Consumer Brand Attachments: _______

The product serves as a link to the consumer’s past

interdependence

Consumer Brand Attachments: _______

The product is a part of the user’s daily routine

love

Consumer Brand Attachments: _______

The product elicits emotional bonds of warmth, passion, or other strong emotion

market segmentation

A marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action

demographics

Type of Segmentation

_______: quanitfiable characteristics

• Age

• Gender

• Income

• Education

• Family life cycle

• Religion

• Socio-economic status

geographic

Type of Segmentation

• Location

• Time zone

• Climate/season

• Urban city

• Language

• Cultural Preferences

psychographic

Type of Segmentation

______: subjective characteristics

• Opinion

• Values

• Activity

• Behavior

• Interest

• Attitudes

behavioral

Type of Segmentation

• Purchase behavior

• Occasion

• Usage

• Loyalty

• Benefits

• Customer journey

Pareto Principle

20% of a firm's customers are responsible for 80% of sales

cultural distinctiveness

the feeling of being different and separated from the surrounding cultural environment

need

something we must have to live or achieve a goal

want

a specific manifestation of a need that personal and cultural factors define

utilitarian

Utilitarian vs Hedonic

functional

hedonic

Utilitarian vs Hedonic

emotional or experiential

utilitarian

Utilitarian vs Hedonic

Cooking a basic, nutritious meal at home or grabbing a quick protein bar to fuel your body.

hedonic

Utilitarian vs Hedonic

Booking a table at an exclusive, multi-course fine dining restaurant for the sensory and social experience

business ethics

Rules of action that guide conduct in the marketplace

materialism

The importance people attach to worldly possessions

status

Materialists are more likely to value possessions for their ____ and appearance-related meaning

people, pleasure

Non-materialists value possessions that link them to other _____ and provide _____ through use

publicly consumed

Materialists value expensive products that are ____. _____

personal

Non-materialists value cherished items with _____ significance

hedonic treadmill

We buy things we think will make us happy, but then satisfaction diminishes after purchase

provenance

Knowing where your goods come from

curation

products are carefully chosen by an expert

political, economic, social, tech, legal, environmental

PESTLE FRAMEWORK

P_____

E____

S____

T_____

L_____

E____

consumer activism

PESTLE - Political

______: Consumers band together to attack what they view as unsafe or otherwise harmful

corporate sociopolitical activism

PESTLE - Political

____ _____ ____:Companies take a stand on a controversial issue

market access

PESTLE - Economic

___ _____: The ability to find and purchase goods & services

functionally illiterate

PESTLE - Literacy

___ ____: describes a person whose reading skills are not adequate to carry out everyday tasks, such as reading

the newspaper or the instructions on a pill bottle

media literacy

PESTLE - Literacy

____ ____: a consumer’s ability to access, analyze, evaluate, and communicate information in a variety of forms, including

print and nonprint messages.

financial literacy

PESTLE - Literacy

___ ____: a consumer’s ability and confidence to manage personal finances

cancel culture

PESTLE - Social Environment

__ ___: The act of collective boycotting of something or someone after a perceived wrongdoing

responsibility

PESTLE - Social

_____: Organizations make a positive impact on stakeholders

social

___ marketing: Marketing a cause like a product

cause

___ marketing: A for-profit company aligns with a cause

conscious consumerism

the practice of making purchasing decisions based on the impact those choices have on the environment, society, and personal values

sustainability

Everything that we need for our survival and well- being depends, either directly or indirectly, on our natural environment.

circular economy

a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting.

green marketing

the practice of developing and advertising products based on their real or perceived environmental sustainability

green washing

misleading consumers that your products are environmentally sustainable

shrinkage

Consumer Theft Fraud

____: Theft/loss

serial wardrobing

Consumer Theft Fraud

____. _____: Wear and return

sensation

How our sensory receptors respond to stimuli

• Sight

• Touch

• Hearing

• Taste

• Smell

perception

The process by which people select, organize and interpret these sensations.

What we add to senses to give them meaning.

hedonic consumption

How consumers interact with the emotional aspects of products

Stores use senses to entice customers to buy.

emotional

Hedonic Consumption

Purchases are _______

experiences

Hedonic Consumption

We crave _______

sensory marketing

Companies think carefully about the impact of sensations on our product experience

illuminance

Vision

______: the amount of light we perceive on an object, impacts mood, highlights products, and can guide traffic in a store

shape

Vision

____: the perceived space occupied by an object in the perceptual field as comprised by the outer boundaries of the object.

surface cover

Vision

___ ___: affects how we perceive an object.

location

Vision

_____: positioning, orientation, spacing and movement of an object in relation to other objects

yellow

Color

Optimistic and youthful

Used to grab window shoppers attention

red

Color

Energy

Often seen in clearance sales

blue

Color

Trust and security

Banks

orange

Color

Aggressive

CTA; subscribe, buy, or sell

black

Color

Powerful and sleek

Luxury products

purple

Color

Soothing
Beauty or anti-aging products

trade dress

Color: ___ ___

The non-functional physical detail and design of a product or its packaging, which [indicates] [or] [identifies] the product’s source and distinguishes it from the products of others.

aesthetic bias

Products that are deemed more attractive are lead us to think the product will be more useful or higher in quality.

sounds

_____ impact feelings and behavior

● Pleasant music makes time seem to pass faster, leading to increased spending

● Slow music may encourage browsing

● Aligning music with product type can increase preference for products.

touch

haptic = ____

perceive, risk

Touch helps us ______

Reduces ___

endowment effect

an emotional bias that causes individuals to value an owned (or touched) object higher than its market value.

contamination effect

if another person has touched an item we like it less and are less likely to buy it

exposure, attention, interpretation

The Stages of Perception

E_____
A_____
I_____

sensory threshold

the point at which a stimulus is strong enough to make a conscious impact on our awareness

absolute threshold

the weakest amount of a stimulus that a person can detect 50% of the time

2 stimuli

differential threshold = changes between __ _____

just noticeable difference

Minimum detectable difference between 2 stimuli

weber’s law

The stronger the initial stimulus, the greater a change must be for us to notice it

also weber’s law

At what percent off will you begin to shop?

Attention

Perception Stage 2: _____

The extent to which processing activity is devoted to a particular stimulus

stimulus, recipient

Perception Stage 2: Attention

Depends on…

______

_____

Sensory overload

perceptual selection

we attend to only a small portion of the stimuli to which we are exposed

vigilance

Perceptual Selection Factors: Perceptual ________

We are aware of stimuli that relate to our current needs

defense

Perceptual Selection Factors: Perceptual ______

We ignore or distort stimuli that are threatening

adaptation

Perceptual Selection Factors: _______

The degree to which consumers continue to notice a stimulus over time

stimulus selection factors

Characteristics of the stimulus that make it noticeable

contrast, size, color, position, novelty

Some stimulus selection factors

interpretation

Perception Stage 3: _______ - meanings we assign to stimuli

patterns, expectations

Perception Stage 3: Interpretation

We interpret the stimuli to which we do pay attention according to learned _____ and _______

gestalt psychology

Stimulus Organization

we interpret meaning from the totality of a set of stimuli rather than from an individual stimulus.

closure principle

Stimulus Organization

we interpret an incomplete picture as complete

similarity principle

Stimulus Organization

group similar items together

figure ground principle

Stimulus Organization

one part of the stimulus will dominate (the figure) while the other parts recede into the background (ground

semiotics

The field of _____- helps us to understand how marketers use symbols to create meaning

signs, symbols, meaning

Semiotics is about ___ and _____ and how we assign _____

object

Semiotic Relationships

____ (Product)

sign

Semiotic Relationships

____ (Image)

interpretant

Semiotic Relationships

_____ (Meaning)

icon

Semiotic Relationships

____ - resembles product

index

Semiotic Relationships

____ - shares a property

symbol

Semiotic Relationships

_____ - agreed-up association

brand positioning

“The act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”

intentional

_____ Learning: Learning that happens on purpose, when a consumer actively tries to remember or understand information.
Example: Comparing and memorizing features of different laptops before buying one.