Flashcards

Consumer Behaviour (CB)

The study of how people buy, use, and react to products and services.

Basic CB Process

Need → Want → Exchange → Costs & Benefits → Value

Exchange

Trading something you give up for something of greater value.

Consumption

Using goods/services to create value.

Relationship Marketing

Building long-term customer loyalty through positive experiences.

Touchpoints

Every direct interaction between a customer and a company.

Market Orientation

A company culture focused on understanding and serving customers.

Undifferentiated Marketing

One product for everyone, mass marketing.

Differentiated Marketing

Different products for different groups.

One-to-One Marketing

A unique product for each customer.

Niche Marketing

Serving one small, unique segment.

Internationalization

When companies expand to global markets.

Technology's Role in CB

Changes how people shop and creates big data.

Big Data

Massive amounts of customer information used to predict behaviours.

Predictive Analytics

Using data to predict customer actions.

Internet of Things (IoT)

Everyday products collecting and sending data.

Machine Learning in Marketing

AI tools that automate marketing tasks.

Consumer Value Framework (CVF)

A model showing factors shaping consumer behaviour.

Internal Influences

Cognition, effects, personality/lifestyle that influence behaviour.

Cognition

Thinking and mental processes related to learning.

Affect

Emotions and feelings tied to consumption.

Utilitarian Value

Functional, practical value.

Hedonic Value

Emotional, pleasure-based value.

Value Co-Creation

Both company and customer create value.

Customer Lifetime Value (CLV)

Total profit expected from a customer.

CLV Formula

CLV = NPV(Sales – Costs) + NPV(Equity from referrals).

Relationship Quality

Strength of the connection between customer and company.

Marketing Myopia

Focusing only on quick profits instead of long-term needs.

Perceptual Process Steps

Exposure → Attention → Distortion.

Exposure

When a consumer comes into contact with a stimulus.

Sensation

The immediate response of the senses to a stimulus.

Attention

Focus of mental energy on certain stimuli.

Comprehension

The meaning assigned to what a consumer senses.

Sensory Marketing

Marketing that appeals to the senses.

Selective Perception

Consumers filter information based on beliefs.

Clutter in Marketing

Too much information competing for attention.

Just Meaningful Difference (JMD)

Smallest change that affects consumer behaviour.

Explicit Memory

Memory formed from intentional learning.

Implicit Memory

Memory formed without active attention.

Mere Exposure Effect

Preference for familiar things.

Classical Conditioning

Learning through association.

Instrumental Conditioning

Learning through rewards or punishments.

Signal Theory

Marketing messages send signals beyond words.

Effective Source in Marketing

Likeability, attractiveness, expertise, trustworthiness.

Counterargument vs Support Argument

Counterargument = disagreement; Support = agreement.

Information Intensity

Too much information makes comprehension harder.

Framing

Presentation of information changes its meaning.

Priming

Exposure to one stimulus influences perception of another.

Sensory Memory

Very short-term memory from senses.

Workbench Memory

Memory where info is actively used.

Long-Term Memory

Permanent storage of information.

Moving Info into Long-Term Memory

Helped by repetition, dual coding, and chunking.

Associative Network

Mental network of concepts linked together.

Schema

Mental framework of knowledge.

Prototype

Best example of a category in your mind.

Script

Knowledge of what normally happens in a situation.

Motivation

The drive to satisfy a need or want.

Maslow’s Hierarchy of Needs

Physiological → Safety → Love/Belonging → Esteem → Self-Actualization.

Utilitarian Motivation

Motivation to solve a problem.

Hedonic Motivation

Motivation for fun or pleasure.

Regulatory Focus Theory

Prevention vs. promotion in consumer focus.

Involvement

Personal relevance of a product or decision.

Product Involvement

Ongoing interest in a product category.

Situational Involvement

Interest for a specific purchase.

Enduring Involvement

Long-term passion.

Emotional Involvement

Strong emotions tied to a purchase.

Personality

Unique psychological traits influencing behaviour.

Psychoanalytic Approach to Personality

Freudian idea of Id, Superego, and Ego.

Trait Approaches to Personality

Focus on specific traits of an individual.

Lifestyle

The way a person lives.

Psychographics

Study of lifestyles, values, and activities.

Self-Concept

How a person sees themselves.

Self-Congruency Theory

Preference for brands matching self-image.