Consumer Behavior Exam 3

microcultures

a group who share similar values and tastes that are subsumed within a larger culture
Affect consumer culture, culture is universal and hierarchical
individuals may belong to many cultural groups at once

socialization

learning about everyday experience through observation

how is culture learned

through socialization , enculturation, acculturation, and ethnic identification

enculturation

learning native culture

acculturation

learning about culture other than native one

ethnic identification

degree to which consumers feel a sense of belonging to their culture

consumer ethnocentrism

Belief native products are superior

Modeling

process of imitating others' behavior

shaping

adapt to a culture rewards and sanctions

verbal communication

transfer of info through spoken or written word
Dialects- Specific to a region

Metric equivalence

numeric uniformly across cultures

globish

Reduces the English vocabulary to around 1500 words

Globalization

marketing strategy may be global but the implementation and tactics should be local

Five Step Decision Making Process

1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision (Choice)
5. Post-Purchase evaluation

low involvment

low risk, habitual decision making

high involvement

high risk. extended decision making

involvement

the degree of personal relevance that a consumer finds in a CB act

types of risk

financial, social, performance, physical, time

decision fatigue

emotional and mental strain resulting from a burden of choices
- may lead to physical and emotional distress

search behavior

Ongoing
Pre Purchase
Internal
External

ZMOT

zero moment of truth

Evaluative criteria

Attributes
Features
Potential benefits

Determinant criteria

The most carefully considered criteria
Directly related to choice made

How do marketers determine which criteria consumers use?

Techniques:
Surveys
Warranty registrations
Conjoint analysis
Perceptual mapping

Situational factors

Value varies with situations
contextual effects that are not enduring
Temporary conditions- that impact CB

antecedent conditions

time, shopping orientation, personal traits, resources, mood, security/fear

purchase environment

servicescape, atmospherics, nudges, experience, ownership

postpurchase processes

consumer satisfaction, product disposal, alternative markets

Time and consumer behavior

Time pressure sense of urgency
Time of year seasonality
Time of day circadian cycle

Shopping orientations

Acquisitional, Epistemic, Experiential, Impulsive

Acquisitional

Activity shopping for a specific purchase
Ex: Have a headache, need to buy an Advil

Epistemic

Activities oriented towards gathering knowledge

Experiential

Fun, excitement, interest, relaxation
Ex: Buy a wedding dress or make it an experience

Impulsive

Orientation of spontaneity

Three additional antecedent conditions

Resources: budgeted amount
Mood: exaggerates everything
security/fear

Servicescape

services physical environment

Atmospherics

feelings created by the total aura of physical environment

Atmosphere elements

Odors, music, merchandising, social setting, color
These can all nudge!!

recommerce

Selling or trading your possessions (squeeze more value from them)

swishing

Organizing parties to exchange clothing/accessories

Underground economy

Used product sales (flea markets, garage sales, etc)

disposal

Trash
Recycling
Recommerce
Swishing
Underground economy

Green marketing

products that supposedly satisfy both the need of consumers and society in a sustainable way

greenwashing

unsubstantiated
and/or exaggerated claim(s) to
deceive consumers into believing
that a company's products are
environmentally friendly.

Sustainable marketing concept

Genuinely delivering value to customers in a way that natural and human capital are preserved or enhanced

Linear economy vs. circular economy

marketing's impact on environment

Stimulating (over-) consumption
Use of environmental goods to increase profit margins
Unnecessary packaging
Long supply chains

garbage patch

parts of the ocean with a high density of human trash, primarily plastics, that weighs over 250,000 tons

what can we do as marketers about moving from green to sustainable?

- Integrate a sense of mission into the core of business

- Integrating social and environmental causes into products

- Focus on long term financial gains. Financial gains by companies that integrated sustainability into their core business up 40% in 2013 due to consumer demand

- Top down, rather than bottom up approach

Sustainability as a competitive advantage***

ventoso ship supply case

Italian sailboat manufacturer looking to change consumer behavior with specific targeting marketing campaigns and understand the purchasing rationale of the Italian consumer to aid development of a new international marketing campaign

Conducted interviews with potential buyers within a similar demographic to investigate the concept of an "ideal sailing boat", looked into Photosort, and Sensory Marketing

Marketing Rebellion - Chapter 11

notes: transforming culture was not just the right thing to do, it was the profitable thing to do

care about employees and culture will extend to caring about processes products and customers (ex: when paul fired an employee over safety for the nuns in mexico)

practical cultural change looks like demonstrating change at the top from the ceo, unifying measurement that drives the right behaviors, make visible what is hidden, submit to the truth that customers are the marketers, take control and not look for the easy way out, do something dramatic

the traditional CMO is dead, main functions of a successful CMO are to educate, analyze, and collaborate (advertising agencies are dying)

measurement will be a signifiant hurdle to winning int he world of the third rebellion

fans vs customers, fans want to be part of what you do, customers dont really care about your team or culture, wistia created fans

if you truly connect in a personal human way, your marketing can end, if you are delivering a product that solves a problem, then the human centered culture of your company and organic customer connection drives demand and sales

Ted Radio Hour (2017) "Decisions decisions decisions"

how we make the choices we make, and how we learn to live with them

examples in the podcast: diet pepsi that there is more than one perfect product, campbell's prego made extra chunky sauces giving consumers many choices

choice overload problem, companies are overloading consumers with choice ( the advice for companies was to cut, less is more) ex: head and shoulders went down to 15 types and saw an increase in sales

paralyzed by choice, heart vs mind and gut vs reason ( constantly asking yourself what I want and what should I chose, they don't give the same answer), choice is learned

chose is the great american virtue, correlation of culture with choice and individualism

the value of choice depends on our ability to perceive differences between the options
- easy choice is that one alternative is better than the other, hard choices are hard because there is no best option (make it easier is to commit)

TED Radio Hour (2018) "Nudge"

It's hard to change habits, but a gentle push can move us in the right direction
deceptively simple "nudges" for managing our kids, our health, and our aspirations
small tweaks in the words we use and behaviors can have huge impacts and outcomes
the easiest way to make someone to make the right choice is to reverse the choice, make people to chose to opt out instead of opting in
make kids eat more apples by putting them in a bag and cutting them up

paradoxial nudge that smoking is bad when they go through mindfulness

growth mindset is that you can grow your skills and abilities, praising intelligence puts kids in a fixed mindset

girls desire to be in careers they wont fail in because they were taught to smile pretty and not fail while boys were taught to play rough
raising girls to be perfect and boys to be brave
teach girls to be brave, show progress not perfection ex: girls who code

nudging people is to understand the choice, finding the psychological blockage, change from a choice to a rule (ex: brushing your teeth isnt a choice it is a rule unlike working out)

HBR IdeaCast (2021) "How Business Leaders Can Fight Climate Change"

notes:
- bill gates pays attention to climate change, wants to get to net zero of carbon admissions by 2050, we can't get all the countries of the world to be a part of this
we need good policies but we need to increase the supplies of global innovation
consumers can move to needle through clean products (impossible burger, beyond burger), buying an electric vehicle that uses less materials, drive green premium to zero
employers can move the needle by they have a lot of purchasing power, buy clean aviation fuel for when their employees travel, take capital and invest in these breakthrough companies, make sure they are not holding back policies

synopsis: Bill Gates, philanthropist and founder of Microsoft, argues that, even as we work to end the global pandemic, we can't lose sight of another existential threat: climate change. He says that we need to take aggressive action to get to net zero carbon emissions by 2050 and insists that regulation isn't enough. Businesses need to pave the way forward by investing much more heavily in climate-friendly innovation. Gates speaks with HBR editor in chief Adi Ignatius about his new book, "How to Avoid a Climate Disaster: The Solutions We Have and the Breakthroughs We Need.