Consumer Behavior 3-4

Digital Technologies

Allow much greater customization of products, services and promotional messages than older marketing tools. They enable marketers to adapt elements of the marketing mix more quickly and efficiently, and to build and maintain relationships with customers on a much greater scale.

What is a key benefit of digital technologies for marketers?

Digital technologies enable marketers to adapt elements of the marketing mix more quickly and efficiently, offering greater customization of products, services, and promotional messages.

Consumers have more power than ever before.

Consumers can use intelligent agents to locate the best prices, bid on marketing offerings, bypass distribution, and shop globally 24/7 from home.

Consumers have access to more information than ever before.

Consumers can easily find product reviews from previous buyers, compare features of different product models online, and subscribe to virtual communities based on shared interests.

What are two ways digital technologies empower consumers?

Digital technologies empower consumers by allowing them to locate the best prices using intelligent agents and to access a vast amount of product information, including reviews from previous buyers.

Marketers can and must offer more services and products than ever before.

The digitalization of information enables sellers to customize products and services while still selling them at reasonable prices.

The exchange between marketers and customers is increasingly interactive and instantaneous (rapid).

Unlike traditional one-way advertising, digital exchanges allow for rapid, interactive communication and feedback between marketers and customers.

Marketers can gather more information about the consumers more quickly and easily.

Marketers can track consumers’ online behavior and gather information by requiring website visitors to register and provide data before accessing site features.

What is the key difference between traditional advertising and digital marketing in terms of interaction?

Traditional advertising is a one-way street where the message flows from marketer to consumer, while digital marketing allows for two-way, interactive communication and immediate feedback.

Impact reaches beyond PC-based connection to the web.

While most digital communications presently occur via PC-based web connections, the broader impact of digital technologies extends beyond this mode.

Societal marketing concept

Requires marketers to adhere to principles of social responsibility, satisfying target market needs and wants in ways that preserve and enhance the well-being of consumers and society as a whole.

Restructured definition of marketing concept

Calls on marketers to fulfill the needs of the target audience in ways that improve society as a whole, while also fulfilling the objectives of the organization.

How does the 'restructured definition of marketing concept' expand on traditional marketing goals?

The 'restructured definition of marketing concept' expands on traditional goals by calling on marketers to fulfill target audience needs in ways that also improve society as a whole, beyond just fulfilling organizational objectives.

Primary Data

Data collected specifically for its own purpose, such as marketers gathering data using surveys, focus groups, or experiments for their marketing decisions.

Secondary Data

Data collected by one entity for one purpose and subsequently used by another entity for a different purpose.

Explain the key difference between Primary Data and Secondary Data.

Primary Data is collected specifically for its own purpose (e.g., surveys for a specific marketing decision), while Secondary Data is collected by one entity for one purpose and then used by another entity for a different, subsequent purpose.

Survey

A set of structured questions consumers answer in writing or digitally, used to gather data on opinions, preferences, behaviors, etc.

Focus Group

A moderated discussion with 8–12 participants who share their thoughts and feelings about a product, brand, or concept.

Interview

A one-on-one, in-depth conversation where the interviewer explores the consumer’s opinions, preferences, and behaviors.

Storytelling

A research method where consumers narrate personal stories related to how they acquired, used, or discarded a product, gaining emotional insight.

Photography and Pictures

A research method where participants respond to or create visual content to express feelings or thoughts about products or experiences.

Diaries

A research method where consumers record their daily interactions with a product or service over a period of time.

In consumer behavior research, what is the value of using 'Diaries' as a research tool?

Using 'Diaries' as a research tool allows researchers to gain insights into consumers' daily, real-time interactions with a product or service over an extended period. This can reveal behavioral patterns, emotional responses, and usage contexts that might not be captured in a single interview or survey.

Experiments

Controlled testing where researchers manipulate variables to see how they influence behavior.

Field Experiment

Similar to a lab experiment, but conducted in real-world settings to capture actual consumer behavior.

Conjoint Analysis

A statistical method where consumers are asked to evaluate multiple product features to determine what matters most to them.

Observations and Ethnographic Research

Watching and recording how consumers behave in real life to uncover insights they may not verbalize.

Purchase Panels

Long-term tracking of what consumers buy and when, often using loyalty cards or apps.

Database Marketing

Using a compiled database of consumer purchases and behaviors to develop targeted marketing strategies.

Netnography

A form of ethnography that studies online communities, reviews, and social media to understand consumer behavior.

Describe 'Netnography' and how it helps marketers understand consumer behavior.

Netnography is a form of ethnography that studies online communities, reviews, and social media. It helps marketers understand consumer behavior by observing and analyzing digital interactions, conversations, and trends within these online spaces, providing insights into consumer opinions, preferences, and brand perceptions.

Psychophysiological Reactions and Neuroscience

Techniques like tracking eye movement, heart rate, or brain activity to see how consumers react at a subconscious level.