UANL LNI | Consumer Behavior (mid-term exam)

CONSUMER BEHAVIOR

The behavior that consumers display in  searching for, purchasing, using,  evaluating, and disposing of products  and services that they expect will satisfy  their needs.

PERSONAL CONSUMER

The individual who buys goods and  services for his or her own use, for  household use, for the use of a family  member, or for a friend.

ORGANIZATIONAL CONSUMER

A business, government agency, or other  institution (profit or nonprofit) that buys  the goods, services, and/or equipment  necessary for the organization to  function.

MARKETING CONCEPT

Assumes that to be successful, a  company must determine the needs  and wants of specific target markets  and deliver the desired satisfactions  better than the competition.

CONSUMER RESEARCH

The process and  tools used to study  consumer behavior.

SEGMENTATION

Process of dividing  the market into  subsets of  consumers with  common needs or  characteristics.

TARGETING

The selection of one  or more of the  segments to pursue.

POSITIONING

Developing a distinct image  for the product in the mind  of the consumer.

4Ps OF MARKETING (MKT MIX)

Product, price, place, promotion.

PRODUCT

This represents the physical or intangible offering that a company provides to its customers. It includes the design, features, quality, packaging, branding, and any additional services or warranties associated with the product.

PRICE

Refers to the amount of money customers are willing to pay for the product or service. Setting the right price is crucial, as it not only affects the company's profitability but also influences consumer perception and purchasing decisions.

PLACE

Involves the strategies and channels used to make the product or service accessible to the target market. It encompasses decisions related to distribution channels, retail locations, online platforms, and logistics.

PROMOTION

Involves all the activities a company undertakes to communicate the value of its product or service to the target audience. This includes advertising, sales promotions, social media marketing, and any other methods used to create awareness and generate interest in the offering.

CUSTOMER VALUE

Defined as the ratio between  the customer’s perceived  benefits and the resources  used to obtain those  benefits. Perceived value is relative  and subjective. Developing a value  proposition is critical.

CUSTOMER SATISFACTION

The individual's perception of  the performance of the product  or service in relation to his or  her expectations. Customers identified based on  loyalty include loyalists,  apostles, defectors, terrorists,  hostages, and mercenaries.

CUSTOMER RETENTION

The objective of providing value  is to retain highly satisfied  customers.

LOYAL CUSTOMERS

They buy more products. They are less price sensitive. They pay less attention to  competitors’ advertising. Servicing them is cheaper. They spread positive word of  mouth.

SOCIAL MARKETING CONCEPT

Marketers adhere to principles of social  responsibility in the marketing of their  goods and services; that is, they must endeavor to satisfy the needs and  wants of their target markets in ways  that preserve and enhance the well- being of consumers and society as a  whole.

QUANTITATIVE RESEARCH

Descriptive in nature. Enables marketers to “predict”  consumer behavior (positivism). Research methods include  experiments, survey techniques, and  observation. Findings are descriptive, empirical, and  can be generalized to larger  populations.

QUALITATIVE RESEARCH

Consists of depth interviews, focus  groups, metaphor analysis, collage  research, and projective techniques. Administered by highly trained  interviewer-analysts. Findings tend to be subjective. Small sample sizes.

SECONDARY DATA

Data that has been collected for  reasons other than the specific  research project at hand.

INTERNAL DATA

Data generated in-  house. May include analysis of  customer files. Useful for calculating  customer lifetime value.

EXTERNAL DATA

Data collected by an  outside organization. Includes federal  government,  periodicals,  newspapers, books,  search engines. Commercial data is also  available from market  research firms.

OBSERVATIONAL RESEARCH

Helps marketers gain an in-depth  understanding of the relationship  between people and products by  watching them buying and using  products. Helps researchers gain a better  understanding of what the product  symbolizes. Is  often used to design products  to meet needs.

MECHANICAL OBSERVATIONAL RESEARCH

Uses mechanical or electronic device  to record consumer behavior or  response. Consumers’ increased use of highly  convenient technologies will create  more records for marketers. Product audits which monitor sales are  heavily used by companies.

ATTITUDE SCALES

1)likert scales, 2) semantic differential scales, 3) behavior intention scales, 4) rank-order scales.

LIKERT SCALES

Easy for researchers to prepare  and interpret, and simple for consumers to  answer

SEMANTIC DIFFERENTIAL SCALES

Relatively easy  to construct and administer

BEHAVIOR INTENTION SCALES

Also easy to  construct and administer

RANK-ORDER SCALES

Subjects rank items in  order of preference in terms of some criteria.

DEPTH INTERVIEW

Usually 30 minutes to 1 hour, Nonstructured, Interpreted by trained researcher, Listen to words as well as “body  language”

FOCUS GROUP

8-10 participants, Lasts about 2 hours, Always taped or videotaped to assist  analysis, Often held in front of two-way mirrors.

PROJECTIVE TECHNIQUES

Research procedures designed to  identify consumers’ subconscious  feelings and motivations, Consist of a variety of disguised  “tests”

METAPHOR ANALYSIS

Based on belief that metaphors are the  most basic method of thought and  communication. Zaltman Metaphor Elicitation  Technique (ZMET) combines collage  research and metaphor analysis to  bring to the surface the mental models  and the major themes or constructs  that drive consumer thinking and  behavior.

SAMPLES

Are a subset of the population  used to estimate characteristics of the  entire population. Researcher must choose probability or  nonprobabililty sample.

SAMPLING PLAN

Whom to survey, How many to survey, How to select them.

CONCENTRATED MARKETING

One segment.

DIFFERENTIATED

Several segments with individual  marketing sizes.

MARKET SEGMENTATION

The process of dividing a  potential market into  distinct subsets of consumers and selecting  one or more segments as  a target market to be  reached with a distinct  marketing mix.

BASES FOR SEGMENTATION

Geographic, Demographic, Psychological, Psychographic, Sociocultural, Use-Related, Usage-Situation, Benefit Sought, Hybrid.

GEOGRAPHIC SEGMENTATION

The division of a total potential  market into smaller subgroups on  the basis of geographic variables (e.g., region, state, or city)

DEMOGRAPHIC SEGMENTATION

Age, Sex, Marital Status, Income , Education , Occupation.

PSYCHOLOGICAL SEGMENTATION

Motivations, Personality, Perceptions, Learning, Attitudes.

PSYCHOGRAPHIC SEGMENTATION

Also known as Lifestyle Analysis, Psychographic variables include  attitudes, interests, and opinions  (AIOs), Framework for psychographic segmentation: VALS (values, attitudes, and lifestyles).

VALS- Siglas

Values, attitudes, and lifestyles.

VALS CONCEPT

"Values and lifestyle" is the most popular segmentation system that combines lifestyles and values. It is based on Maslow's hierarchy of needs and the concept of social character.

VALS SEGMENTS

Innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors.

INNOVATORS

Are successful, sophisticated individuals; they lead people and have high self-esteem. Because they possess abundant resources, they display the three primary motivations to varying degrees. They are leaders of change and the most receptive to new ideas and technologies. Their purchases reflect a cultivated taste for niche, exclusive goods and services.

THINKERS

Motivated by ideals; abundant resources. They are mature, reflective, and satisfied individuals who feel comfortable. They tend to be well-educated and actively seek information during their decision-making process. They favor durability, functionality, and value in products.

BELIEVERS

Motivated by ideals; limited resources. They are highly traditional and respect rules and authority. As they are essentially conservative, they are slow to change and averse to technology. They choose familiar products and established brands.

ACHIEVERS

Motivated by achievement; abundant resources. They lead goal-oriented lifestyles centered around family and career. They avoid situations that promote high stimulation or change. They prefer premium products that reflect their success to their peers.

STRIVERS

Motivated by achievement; limited resources. They are trendy and fun-loving. With low disposable income, they often have narrow interests. They prefer stylish products that mimic the purchases of wealthier individuals.

EXPERIENCERS

Motivated by self-expression; abundant resources. They appreciate what is unconventional. Active and impulsive, they seek stimulation from the new, the eccentric, and the risky. They spend a relatively high portion of their income on fashion, socializing, and entertainment.

MAKERS

Motivated by self-expression; limited resources. They value practicality and self-sufficiency. They choose constructive manual activities and spend their free time with family and close friends. As they prefer value over luxury, they purchase basic products.

SURVIVORS

They lead lives with a narrow focus. With the least resources, they do not display a primary motivation and often feel powerless. Their fundamental concerns are security and certainty, making them loyal to brands and prone to purchasing discounted goods.

SOCIOCULTURAL SEGMENTATION

Family Life Cycle, Social Class, Culture, Subculture, and Cross-Culture.

USE- RELATED SEGMENTATION

Rate of usage (heavy vs light), awareness status (aware vs unaware), brand loyalty (brand loyal vs brand switchers).

USAGE SITUATION SEGMENTATION

Segmenting on the basis of special  occasions or situations.

BENEFIT SEGMENTATION

Segmenting on the basis of the most  important and meaningful benefit.

NEEDS

Are the essence of the marketing  concept.    Marketers do not create  needs but can make consumers aware  of needs.

MOTIVATION

Is the driving force within  individuals that impels them to action.

INNATE NEEDS

Physiological (or biogenic) needs that are  considered primary needs or motives.

ACQUIRED NEEDS

Learned in response to our culture or environment. Are generally psychological  and considered secondary needs.

GOALS

The sought-after results of motivated  behavior

GENERIC GOALS

Are general categories of  goals that consumers see as a way to  fulfill their needs

PRODUCT- SPECIFIC GOALS

Are specifically  branded products or services that  consumers select as their goals

POSITIVE MOTIVATION

A driving force  toward some object  or condition. Toward which  behavior is directed

NEGATIVE MOTIVATION

A driving force away  from some object or  condition. From  which behavior is  directed away.

RATIONALITY

Implies that consumers  select goals based on totally objective  criteria such as size, weight, price, or  miles per gallon

SUBSTITUTE GOALS

Are used when a consumer cannot  attain a specific goal he/she anticipates  will satisfy a need. May actually replace  the primary goal over time.

FRUSTRATION

Failure to achieve a goal may result in  frustration. Some adapt; others adopt defense  mechanisms to protect their ego.

DEFENSE MECHANISM

Methods by which people mentally  redefine frustrating situations to  protect their self-images and their self-  esteem.

AGGRESSION

In response to frustration, individuals often resort to aggressive behavior to protect their self-esteem. The professional tennis player who slams their racket against the ground when disappointed with their game, or the baseball player who physically intimidates the umpire over a decision, are examples of such behavior. The same applies to consumer boycotts against companies or stores.

RATIONALIZATION

Sometimes, people resolve frustration by inventing convincing reasons for their inability to achieve their goals (for example, not having enough time to practice) or by arguing that the goal is not worth the effort (for example, how important is it to achieve a high bowling score?).

REGRESSION

An individual may respond to a frustrating situation with childish or immature behavior. A shopper at a clearance sale, for example, might fiercely fight over merchandise, even tearing a piece of clothing if another interested buyer refuses to let go, before resigning to lose the purchase.

WITHDRAWAL

Frustration is sometimes resolved simply by withdrawing from the situation. For example, an individual struggling to get a promotion within an organization might decide to spend their time more constructively on other activities and simply leave the organization.

PROJECTION

An individual might redefine a frustrating situation by projecting the blame for their own failures or inadequacies onto other objects or people. For example, a golfer who misses a shot might blame their golf clubs or caddy.

AUTISM

Daydreaming (or fantasy) allows individuals to achieve imaginary gratification of unmet needs. A shy and lonely person, for example, might daydream about a romantic adventure.

IDENTIFICATION

People resolve feelings of frustration by subconsciously identifying with other people or situations they consider relevant. For example, "real-life case" advertisements often depict a stereotypical situation where an individual experiences frustration and then overcomes the problem by using the advertised product. If the viewer identifies with the frustrating situation, they may adopt the proposed solution and purchase the advertised item.

REPRESSION

Another way individuals avoid the tension arising from frustration is by repressing the unsatisfied need. Individuals may "forget" the need by pushing it out of their conscious state. Repressed needs sometimes manifest indirectly. A wife unable to have children might decide to teach at a school or work at a library; her husband might volunteer at a youth club. The manifestation of repressed needs in a socially acceptable way is called sublimation, another type of defense mechanism.

BEHAVIORIST SCHOOL

Behavior is response to stimulus, Elements of conscious thoughts are to be ignored, Consumer does not act, but reacts

COGNITIVE SCHOOL

Behavior is directed at goal achievement, Needs and past experiences are reasoned,  categorized, and transformed into attitudes and  beliefs

MASLOW’S HIERARCHY OF NEEDS

Physiological needs, safety and security needs, social needs, ego needs, self-actualization.

A TRIO OF NEEDS

Power, affiliation, achievement.

MOTIVATIONAL RESEARCH

Qualitative research designed to  uncover consumers’ subconscious or  hidden motivations. Attempts to discover underlying  feelings, attitudes, and emotions.

METAPHOR ANALYSIS

The use of one form of expression to describe or represent feelings about another form is called a metaphor. Several consumer behavior theorists have come to consider that people use metaphors as the most fundamental resource for thought and communication.

STORYTELLING

This technique involves gathering customers and asking them to tell everyday life stories regarding the use of the product under study.

WORD ASSOCIATION AND SENTENCE COMPLETION

Respondents are given words, one at a time, and asked to mention the first word that comes to mind after hearing each word. This technique is extremely useful for studying consumers' associations with existing brand names and products in development.

THEMATIC APPERCEPTION TEST

Developed by Henry A. Murray, this test consists of showing individuals images and asking them to tell a story about each image.

DRAWING PICTURES AND PHOTO-SORTS

Visual images are often used to study consumers' perceptions of various brands and to develop new advertising strategies.

ZALTMAN METAPHOR ELICITATION TECHNIQUE (ZMET)

The first patented market research tool in the United States, it relies on visual images to assess consumers' deep and subconscious thoughts about products, services, and marketing strategies.

PERCEPTION

The process by which an individual  selects, organizes, and interprets  stimuli into a meaningful and coherent  picture of the world. How we see the world around us.

SENSATION

The immediate and direct response of  the sensory organs to stimuli.

STIMULUS

Is any unit of input to any of  the senses.

ABSOLUTE THRESHOLD

Is the lowest  level at which an individual can  experience a sensation.

DIFFERENTIAL THRESHOLD

Minimal difference that can be detected  between two similar stimuli. Also known as the just noticeable  difference (the j.n.d.)

J.N.D

Just noticeable difference (Umbral diferencial)

WEBER’S LAW

The j.n.d. between two stimuli is not an  absolute amount but an amount  relative to the intensity of the first  stimulus. States that the stronger  the initial stimulus, the greater the  additional intensity needed for the  second stimulus to be perceived as  different.

DETERMINE THE  RELEVANT J.N.D. FOR THEIR PRODUCTS

So that negative changes are not readily  discernible to the public, so that product improvements are very  apparent to consumers.

SUBLIMINAL PERCEPTION

Stimuli that are too weak or too brief to  be consciously seen or heard may be  strong enough to be perceived by one  or more receptor cells.