Consumer behaviors

[Ch.1] Consumer behavior (definition)

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 these processes have on the consumer and society.

[Ch.1] Market segment

A portion of a larger market whose needs differ somewhat from the larger market (market segmentation).

[Ch.1] Need set

The idea that most products in developed economies satisfy more than one need — e.g., a watch can meet status needs or style needs beyond just telling time.

[Ch.1] Marketing strategy (definition)

The answer to the question: How will we provide superior customer value to our target market? Requires a consistent marketing mix.

[Ch.1] Marketing mix elements

Product, Communications, Price, Distribution, and Service — the elements provided to the target market as part of marketing strategy.

[Ch.1] Marketing communications

Includes advertising, the sales force, public relations, packaging, and any other signal the firm provides about its products; an effective strategy considers target market, intended effect, message, media, and timing.

[Ch.1] Consumer decision process

The process that intervenes between the marketing strategy (as implemented in the marketing mix) and firm/consumer outcomes — consumers must see a need, become aware, decide the product is best, buy it, and become satisfied.

[Ch.1] Product position

An image of the product or brand in the consumer's mind relative to competing products and brands; the most basic outcome of a firm's marketing strategy.

[Ch.1] Firm outcomes (Ch.1)

Product position, sales and profits, and customer satisfaction.

[Ch.1] Social marketing

Marketing efforts by nonprofits (and commercial brands) aimed at influencing consumption patterns for social benefit, e.g., Haggar's support of the ASPCA.

[Ch.1] Experience vs. product/service

Products and services are largely external to the customer, while an experience is largely internal to each customer; marketers increasingly sell experiences.

[Ch.2] Culture (definition)

The complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society.

[Ch.2] Values → norms → sanctions → consumption

Cultural values give rise to norms and associated sanctions, which in turn influence consumption patterns. Cultures evolve and change slowly over time (not static).

[Ch.2] Three categories of cultural values

Self-oriented values, Other-oriented values, and Environment-oriented values.

[Ch.2] Sensual gratification/abstinence (value)

A self-oriented value describing cultural acceptance of sensory pleasure; Muslim and many Asian cultures are more conservative/abstinent on this value than Western cultures.

[Ch.2] Nonverbal communication factors across cultures

Time, Space, Symbols, Relationships, Agreements, Things, and Etiquette — all vary in meaning across cultures.

[Ch.2] Time (cross-cultural)

The meaning of time varies between cultures in two major ways: time perspective (past/present/future orientation) and time interpretations (e.g., punctuality norms).

[Ch.2] Space (cross-cultural)

Use and meaning of space vary across cultures, including space connected to rank and personal space norms.

[Ch.2] Guanxi

A concept describing the complex, relationship-based nature of Chinese business/personal relationships (contrasted with the quicker, easier way Americans form relationships).

[Ch.2] Etiquette (definition)

The generally accepted ways of behaving in social situations; behaviors considered rude in one culture may be acceptable in another.

[Ch.2] Demographics (definition)

Descriptions of a population in terms of its size, structure, and distribution; both a result and a cause of cultural values.

[Ch.2] Purchasing Power Parity (PPP)

A measure marketers use instead of average/median income to evaluate markets, based on the cost of a standard market basket of products bought in each country.

[Ch.2] Considerations for entering a foreign market

Whether the geographic area is culturally homogeneous/heterogeneous, what needs the product fills, whether enough people can afford it, relevant values, distribution/political/legal structures, how to communicate, and the ethical implications of marketing there.

[Ch.2] Global youth culture

Worldwide mass media has the largest influence on converging youth lifestyles, values, and purchases; technology matters, but U.S. youth/brands no longer lead the way.

[Ch.2] Symbol color example — White

Symbol for mourning/death in the Far East; symbolizes purity in the United States.

[Ch.2] Symbol color example — Purple

Associated with death in many Latin American countries.

[Ch.2] Symbol color example — Red

Unlucky/negative in Chad, Nigeria, and Germany; positive in Denmark, Romania, and Argentina.

[Ch.3] Traditional, Current, Emerging American values (T/C/E)

A framework for classifying American cultural values by whether they are traditional (declining), current (still dominant), or emerging (rising) over time.

[Ch.3] Environment-oriented values (definition)

Values that prescribe a society's relationship to its economic, technical, and physical environment.

[Ch.3] Other-oriented values (definition)

Values that reflect a society's view of the appropriate relationships between individuals and groups within that society.

[Ch.3] Diversity as an emerging American value

American culture is evolving toward valuing diversity more than uniformity; 61% of Americans view increased racial/ethnic diversity as a positive change, especially among younger generations.

[Ch.3] Cause-related marketing (CRM)

Marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause (e.g., Dove's Self-Esteem campaign for Unilever).

[Ch.3] Green marketing challenge

Overcoming consumer biases is critical to green marketing success — e.g., electric cars are seen as better for the environment but also more costly and less reliable, so eco-products must still deliver clear consumer benefits.

[Ch.3] Gender roles shift in marketing

Gender roles in the U.S. are shifting, with both genders making many purchase decisions — e.g., women influence 85% of all vehicles sold; brands like JIF have moved from 'Choosy mothers' to 'Choosy moms and dads.'

[Ch.3] Gender-based product strategy trend

Moving beyond stereotypes: rather than just adapting colors (e.g., pink tools) to fit gender stereotypes, companies redesign product features for functionality (e.g., cushioned handles, tools redesigned to fit women's hands).

[Ch.4] Generations (in order, oldest to youngest)

Pre-Depression, Depression, Baby Boom, Generation X, Generation Y (Millennials), Generation Z, Generation Alpha.

[Ch.4] Generation Y / Millennials (years)

Born 1980–1996; finishing college/starting careers, focusing on financial stability; see their generation as unique due to technology use, music/pop culture, tolerance, intelligence, and clothes.

[Ch.4] Generation Z (years)

Born 1997–2012; called Digital Natives, Generation @, or iGeneration; has roughly $140 billion in purchasing power; emphasizes self-expression, authenticity, and wants to interact with brands rather than be talked at.

[Ch.4] Generation Alpha (years)

Born 2013–present.

[Ch.4] Generation X trait (Ch.4)

Xer women are (across all generations) the highest viewers of home-improvement media and most likely to engage in home improvement projects.

[Ch.4] Baby Boomer trend (health)

As Boomers enter their 60s–70s, chronic health issues (e.g., incontinence) increase, creating demand for products that don't disrupt an active lifestyle (e.g., Depend Guards and Shields).

[Ch.4] Gerontographics — 4 segments of the mature market

Healthy Indulgers, Ailing Outgoers, Healthy Hermits, and Frail Recluses.

[Ch.4] Social stratification

The process by which members of a society are classified into a hierarchy of distinct social classes/status positions.

[Ch.4] Social class measurement — two approaches

Single-item index (uses one variable, e.g., income or occupation) and multi-item index (combines several variables); multi-item indexes are generally more accurate.

[Ch.4] Multi-item social class indexes

Hollingshead Index of Social Position and the Index of Social Position (ISP).

[Ch.4] Upper class as a market segment

Upper classes serve as important market segments for luxury products and as a symbol of 'the good life' to the upper-middle class (e.g., TAG Heuer watches).

[Ch.4] Middle Americans (marketing target)

Middle class consumers are the primary target for home improvement centers, garden shops, and auto parts stores; they seek bargains without sacrificing quality.

[Ch.5] Subculture (definition)

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

[Ch.5] Ethnic subculture (definition)

A subculture whose members' unique shared behaviors are based on a common racial, language, or nationality background.

[Ch.5] Black Americans — buying power

Represents $1.8 trillion in buying power, expected to grow over 25% by 2024; on average younger than the white population with lower average education/income, but strong opportunities exist across a broad income range (top 20% earn >$182,000).

[Ch.5] Hispanic Americans — buying power

Estimated at $1.5 trillion, expected to grow to $1.9 trillion by 2023; roughly 34% of Hispanic population growth is from immigration, making acculturation level a major driver of attitudes/behavior.

[Ch.5] Hispanic Americans — language

Less than 30% of Hispanics (age 5+) speak English exclusively at home, so Spanish-language ads are often more effective, though effectiveness depends on acculturation level.

[Ch.5] Hispanic generational consumer groups

First Generation Adults, Second Generation Adults, and Third(+) Generation Adults — generational groups that drive differences in language, national identity, and values; acculturation is closely tied to language use and generation.

[Ch.5] Asian Americans — buying power

The highest-educated and highest-income ethnic group; estimated purchase power of $1.2 trillion, expected to grow to $1.6 trillion by 2024; the most diverse group in nationalities, languages, and religions.

[Ch.5] Native Americans — buying power

About 570 tribes, each with its own language/traditions; overall buying power estimated at $118 billion, nearly a 200% increase since 2000.

[Ch.5] Asian Indian Americans — traits

Well-educated, affluent, fluent in English, retain strong cultural ties; place high value on children's education, and husbands often play a dominant role in family decisions.

[Ch.5] Arab Americans — key facts

More than 80% are U.S. citizens (majority U.S.-born); 66% identify as Christian, 24% as Muslim; tired of negative stereotyping.

[Ch.5] Christian subcultures (religious)

Roman Catholic, Protestant, and Born-Again Christian.

[Ch.5] Non-Christian subcultures (religious)

Jewish, Muslim, and Buddhist.

[Ch.5] Regional subcultures — causes

Arise from climate conditions, natural environment/resources, characteristics of immigrant groups that settled in the region, and significant social/political events.

[Ch.6] Traditional family (definition)

A married opposite-sex couple and their own or adopted children living at home.

[Ch.6] Stepfamily (definition)

A married-couple family household with at least one child under 18 who is a stepchild (a son or daughter through marriage).

[Ch.6] Evolving American household trends

Single-parent families, cohabitation with children, blended families, changing family size, multipartner fertility, mothers in the workforce, and mothers as breadwinners.

[Ch.6] Household life cycle — age groupings

Younger (

[Ch.6] Family decision making (definition)

The process by which decisions that directly or indirectly involve two or more family members are made; family purchases are often emotional and affect family relationships (unlike organizational buying).

[Ch.6] Determinants of family purchase roles

The culture/subculture the family exists in, role specialization of family members, degree of involvement each has in the product area, and personal characteristics of family members.

[Ch.6] Conflict resolution approaches in family purchases

Bargaining (compromise), Impression Management (misrepresenting facts to win), Use of Authority (claiming expertise/appropriate role), Reasoning (logical argument), Playing on Emotion (silent treatment/withdrawal), and Additional Information (getting outside data/opinion).

[Ch.6] Piaget's Stage 1 — Sensorimotor

Ages 0–2: behavior is primarily motor; the child does not yet 'think' conceptually, though cognitive development is occurring.

[Ch.6] Piaget's Stage 2 — Preoperational

Ages 3–7: characterized by rapid development of language and conceptual growth.

[Ch.6] Piaget's Stage 3 — Concrete Operations

Ages 8–11: the child develops the ability to apply logical thought to concrete problems.

[Ch.6] Piaget's Stage 4 — Formal Operations

Ages 12–15: cognitive structures reach their greatest development; the child can apply logic to all classes of problems.

[Ch.6] Consumer socialization (definition)

The process by which young people acquire skills, knowledge, and attitudes relevant to their functioning as consumers; occurs primarily through family, but also advertising and friends.

[Ch.7] Reference group (context)

A group whose presumed perspectives or values are being used by an individual as the basis for their current behavior; classified using four criteria (per Ch. 7 learning objectives).

[Ch.7] Consumption subculture

A group whose members organize their lives around a common consumption interest; the larger market often adopts/appropriates their symbols over time (e.g., sneakerhead culture reaching mainstream fashion).

[Ch.7] Brand community

A community of consumers organized around the lifestyle, activities, and ethos of a brand; can add value to product ownership and build intense brand loyalty (e.g., Harley Owners Group, Jeep desert safaris).

[Ch.7] Three forms of reference group influence

Informational influence, Utilitarian (normative) influence, and Value-expressive (identification) influence.

[Ch.7] Informational influence (definition)

Influence based on the similarity of a reference group's members to the potential consumer, or the expertise of the influencing member (e.g., an athlete endorser recommending a product).

[Ch.7] Identification influence (definition)

Influence based on the fact that the individual has internalized the group's values and attitudes; advertising shows the product is consistent with the group's (and individual's) beliefs.

[Ch.7] Opinion leader (context)

An individual who informally gives advice or information about a specific product/product category to others (mavens, influentials, e-fluentials are related concepts).

[Ch.7] Strategies to generate WOM/opinion leadership

Advertising, Product Sampling, Retailing/Personal Selling, and Creating Buzz.

[Ch.7] Innovation (definition)

An idea, practice, or product perceived to be new by the relevant individual or group; new products fall on a continuum from no change to radical change based on market perception.

[Ch.7] Continuous innovation

Requires relatively minor changes in behavior(s) that are unimportant to the consumer (e.g., a new soft drink flavor, an annual iOS update, new packaging colors).

[Ch.7] Dynamically continuous innovation

Requires a moderate change in an important behavior, or a major change in a behavior of low/moderate importance (e.g., electric toothbrushes, film-to-digital cameras, touchscreens replacing keyboards).

[Ch.7] Discontinuous innovation

Requires major changes in behavior of significant importance to the individual or group (e.g., the Internet, personal computers, smartphones, VR headsets, mainstream EVs).

[Ch.8] Perception (context)

The process by which sensations (exposure, attention, interpretation) are selected, organized, and interpreted; central to how consumers form memories and make decisions.

[Ch.8] Three factors that determine attention

Stimulus factors, Individual factors, and Situational factors.

[Ch.8] Stimulus factors (definition)

Physical characteristics of the stimulus itself (e.g., size, color, position, isolation, contrast, expectations) that are under the marketer's control and can attract attention independent of the individual/situation.

[Ch.8] Position (stimulus factor)

The placement of an object in physical space or time; items easy to find/stand out attract more attention (e.g., retail end-caps; top-left of print ads is a high-impact zone in the U.S.).

[Ch.8] Isolation (stimulus factor)

Separating a stimulus object from other objects (e.g., 'white space' in advertising) to attract and hold attention.

[Ch.8] Individual factors affecting attention

Motivation and Ability.

[Ch.8] Situational factors affecting attention

Clutter and Program Involvement.

[Ch.8] Program involvement (definition)

Interest in the program or editorial content surrounding ads; has a positive influence on attention/advertising effectiveness.

[Ch.8] Hemispheric lateralization

Refers to specialized activities that take place on each side of the brain, relevant to nonfocused attention processing.

[Ch.8] Three aspects of interpretation

Cognitive interpretation, Affective interpretation, and (their combination in forming) overall meaning of a stimulus.

[Ch.8] Affective interpretation (definition)

The emotional or feeling response triggered by a stimulus such as an ad (e.g., an emotional response to a pet-insurance ad among dog owners).

[Ch.8] Three characteristics that determine interpretation

Individual characteristics, Situational characteristics, and Stimulus characteristics.

[Ch.8] Expectation bias

The tendency for interpretations to be consistent with expectations; e.g., consumers rate a well-known brand's performance higher than an identical unknown-brand product.

[Ch.8] Figure–ground

A stimulus is presented so it is perceived as the focal object to be attended to, while all other stimuli are perceived as background; commonly used in advertising to make the brand stand out.

[Ch.9] Short-term memory (STM)

The portion of memory where information is stored temporarily as it is being processed (limited capacity, brief duration).

[Ch.9] Long-term memory (LTM)

Storage of information for a long period of time; a complex web of associations, including schematic memory of how an action sequence should occur (e.g., drinking a soft drink to relieve thirst).