Consumer Behavior Exam 1

Marketing

is the whole business seen from the
point of view of its final result, that is, from the
CONSUMER's point of view.

Consumer

those who identify their need or desire,
make a purchase, use a product/service, and then
dispose of it.

Consumer Behavior

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

Consumption Process

Stages consumers go through from need to disposal.

Pre-Purchase Stage

Consumer's search for information and alternatives.

Purchase Stage

Moment of buying a product or service.

Post-Purchase Stage

Consumer's evaluation of satisfaction after purchase.

Attitudes

Consumer's feelings towards products or brands.

Needs/Wants

Basic requirements and desires driving consumer behavior.

Situational Factors

External influences affecting purchase decisions.

Relationship Marketing

Building long-term relationships with customers.
Interacting with customers often.

Database Marketing

Tracking consumer habits for tailored marketing.

Segmenting Consumers by Demographics

• Age
• Gender
• Family structure
• income
• Race or ethnicity
• Geography

Segmenting Consumers by Psychographics

Consumer Lifestyles
▪ The way we feel about ourselves
▪ The things we value
▪ The things we do in our spare time

Self-Concept Attachment

the product helps to establish the user's identity

Nostalgic Attachment

product serves as a link with past self

Interdependence

product part of daily routine

Love Attachment

product elicits warmth, passion, emotion

Consumerism

Social movement promoting consumer rights and welfare.

Social Marketing

the use of marketing concepts to influence individuals' behavior to improve their well-being and that of society

Green Marketing

the practice of promoting products or services that are sustainable and eco-friendly

Dark Side of Consumer Behavior

1. Consumer terrorism - toxic substances, cyberterrorism
2. Addictive consumption - online gaming, social media
3. Compulsive consumption - shopaholics
4. Consumed consumers - human trafficking, prostitutes
5. Illegal acquisition and product use - shrinkage

Consumer Well-Being

Overall satisfaction and happiness from consumption.

Sensation

The immediate response of our sensory receptors to such basic stimuli as light, colour, and sound

Hedonic Consumption

multisensory, fantasy, and emotional aspects of consumers' interactions with products

Sensory Marketing

use vision, smell, hearing, touch, and
taste to enhance consumers' experiences

Perception

The process by which sensations are selected, organized, and interpreted
Stages: exposure, attention, and interpretation

Exposure

Initial contact with a stimulus.

Attention

Extent to which processing activity is
devoted to a particular stimulus

Interpretation

Assigning meaning to a stimulus.

Absolute Threshold

the minimum amount of stimulation that can be detected

Differential Threshold

ability to detect changes or differences between two stimuli

Just Noticeable Difference (J.N.D.)

Minimum change in a stimulus that can be detected

Perceptual Selection

people attend to only a small portion of the
stimuli to which they are exposed.

Perceptual Vigilance

Awareness of stimuli related to current needs.

Perceptual Defense

Ignoring stimuli that contradict personal beliefs.

Adaptation

Reduced response to repeated stimuli over time.

Gestalt

Interpreting stimuli as a whole rather than from any
individual stimulus

Closure Principle

Tendency to perceive incomplete pictures as complete.

Principle of Similarity

Objects that are similar are grouped together.

Figure-Ground Principle

Concept in which one part of a stimulus will dominate, while other parts recede into the background

Semiotics

Study of signs and symbols and their role in assignment of meaning.

Three Basic Components of Marketing Messages (Semiotics)

• Object
• Sign
• Interpretation

Object (Semiotics)

The product represented in a marketing message.

Sign (Semiotics)

The image or representation of the object.

Interpretant (Semiotics)

The meaning derived from the sign.

Perceptual Positioning

Brand perception based on functional and symbolic attributes.

Perceptual Map

Visual representation of brand perceptions in consumers' minds.

Behavioral Learning Theory

Learning occurs as the result of responses to external stimuli in the environment
Ex: Classical conditioning and instrumental conditioning

Classical Conditioning

a learning process that occurs when two stimuli are repeatedly paired

a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Instrumental Conditioning

type of learning in which a behavioral response can be conditioned through reinforcement - either punishment or rewards associated with undesirable or desirable behavior

Repetition (Marketing)

Increased exposure enhances brand awareness. However to much exposure leads to advertising wear out

Stimulus Generalization

the tendency to respond to a stimulus that is only similar to the original conditioned stimulus with the conditioned response

Family Branding

Using the same brand name for multiple products.

Product Line Extensions

Adding new products to an existing brand line.

Licensing

selling the right to use some process, trademark, patent, or other right

Look-Alike Packaging

Designing packaging to resemble another brand.

Instrumental conditions

Instrumental conditions occurs in one of
these ways:
Encourage consumers:

• Positive reinforcement (pleasant response)
• Negative reinforcement (Removing unpleasant behavior)
  Discourages consumers:
• Punishment (unpleasant responses)
• Extinction (no response)

Frequency Marketing

Rewards for repeat customers, like loyalty programs.

Cognitive Learning Theory

Emphasizes internal mental processes in learning.

Observational Learning

Learning by watching others' actions.

Modeling

Imitating behavior of other

Memory

Process of encoding, storing, and retrieving information.

Encoding

Transforming external information into a memory format.

Storage

Maintaining encoded information over time.

Retrieval

Accessing stored information when needed.

Sensory Meaning in Encoding

Meaning derived from sensory experiences.

Semantic Meaning in Encoding

Meaning based on concepts and facts.

Episodic Memories

Memories of personally relevant experiences.

Activation models of memory

Associative network of related information
• Knowledge structures of interconnected nodes
• Hierarchical processing model

Evoked Set

Consumers recall a set of brands in a category

Factors that influence retrieval

• State-dependent retrieval
• Familiarity
• Pictorial versus verbal cues
• Salience

State-Dependent Retrieval

the process whereby information tends to be better recalled when the person is in the same state during encoding and retrieval

Familiarity

Familiarity with a product increases its recall

Pictorial versus verbal cues

Pictorial ads may enhance recall, but they do not necessarily improve comprehension

Salience

Refers to brands prominence in memory

Nostalgia

Marketing strategy leveraging past memories.

Motivation

The processes that lead people to behave as they do. It occurs when a need arises that a consumer wishes to satisfy.

What motivates consumers to buy?

Goal, drive, or want

Goal

Consumer's desired end state

Drive

Degree of consumer arousal (urgency based on biological needs)

Want

Manifestation of consumer needs

Motivational Strength

Willingness to expend effort for goals.

Drive Theory

the belief that behavior is motivated by drives that arise from biological needs that produce unpleasant states of arousal (hunger)

Expectancy Theory

Behavior is pulled by expectations of achieving desirable outcomes (good body shape)

Biogenic Needs

Basic biological requirements for survival.
Ex: Food, water, shelter

Psychogenic Needs

status, power, affiliation

Utilitarian Needs

Needs for tangible attributes of a product

Hedonic Needs

Needs for excitement, self confidence, fantasy

Approach-Approach Conflict

You are faced with two or more equally desirable options but can only approach one

Approach-Avoidance Conflict

An option that satisfies one of your needs, but fails to satisfy another should I approach or avoid?
Ex: eat ice cream and gain weight

Avoidance-Avoidance Conflict

You are faced with two or more equally undesirable options and have to choose one

Need for Affiliation

Desire to connect with others.

• Focus on products that are used in groups (alcoholic beverages, sports bars)

Need for Achievement

Value placed on personal accomplishments.

• Place a premium on products that signify success (luxury brands, technology products)

Need for Power

Desire to control one's environment.

• Focus on products that allow them to have mastery over
  surroundings (muscle cars, loud boom-boxes)

Need for Uniqueness

Desire to assert individual identity.

• Enjoy products that focus on their unique character (perfumes, clothing)

Maslow's Hierarchy

physiological, safety, belongingness, ego needs, self-actualization

Involvement Continuum

Low Involvement Consumption (Inertia) - consumers lack motivation to consider alternatives

High Involvement Consumption - consumers are truly involved with the product, ad, or brand.

Cult Products - involve high loyalty, devotion, worship by consumers.

Consumer Involvement

Engagement level with a product category.