ICON 3800 Exam One

Consumer Behavior

Set of value-seeking activities that take place as people address their needs.

Consumption

The process through which customers acquire and use a product or service.

Relationship Quality

The level of connection between a business and consumer, characterized by high satisfaction for strong relationships and brand switching for low ones.

Value

A concept that includes Utilitarian (functional and objective) and Hedonic (experiential and subjective) aspects, together making the total value concept.

Corporate Strategy

How the company defines itself.

Marketing Strategy

How value is created for the consumer.

Basic Consumption Process Steps

1) Need, 2) Want, 3) Exchange, 4) Cost and Benefit, 5) Reaction, 6) Value.

Need

When the current state does not match the desired state.

Want

The motivation to take action based on needs.

Exchange

The decision to give up something in return for something of greater value.

Costs in Exchange

Time, money, and effort given up in exchange.

Tangible Benefits

Measurable gains from a product or service.

Intangible Benefits

Abstract gains that are hard to measure, such as morale and trust.

Reaction Stage of BCP

Evaluation of the costs versus the benefits.

Value Perception

Occurs when the benefits outweigh the costs.

Internal Influences

Personal influences that reside in the mind and heart of a consumer.

External Influences

Social aspects and temporary situational influences affecting consumers.

Situational Influences

Factors like economic stability, time of year, and store environment that affect consumer behavior.

Experience in Value

The primary vehicle through which a consumer perceives value.

Consumer Behavior and Society

Has a greater effect on society by driving the economy, culture, and environmental health.

Consumer Value Framework (CVF) Major Parts

1) Internal/External Influences, 2) Consumption Process, 3) Value, 4) Relationship Quality.

Flow of Strategies

Corporate Strategy → Marketing Strategy → Tactics.

Perceptual Map

Visualizes consumer perceptions about a company and benchmarks it against competitors.

Attributes in a Perceptual Map

Two most important attributes to the consumer.