marketing chapter 3a

Consumer behavior

The buying behavior of final consumers (individuals and households that buy goods and services for personal consumption) ex, An individual purchasing groceries, clothing, or a streaming subscription for personal use.

Final consumer (or end consumer)

Individuals and households that purchase products and services for their own personal use ex, A student buying a smartphone or a family booking a vacation for themselves.

Consumer market

All the individuals and households that buy or acquire goods and services for personal consumption ex, Millions of consumers buying food, clothing, and healthcare services every day.

Marketing

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return ex, A company designing products that meet customer needs to secure long-term loyalty and revenue.

Stimulus-response model

A framework showing how marketing and environmental stimuli enter the consumer's black box and produce specific buyer responses ex, Observing how a product's price and promotional ads interact with a buyer's personal characteristics to shape their final purchase decision.

Black box of the buyer/consumer

The internal part of the consumer's mind containing their characteristics and decision process that determines how they react to external stimuli ex, The hidden psychological and cognitive processes occurring inside a customer's mind between seeing an ad and deciding to buy.

Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions ex, Growing up in a society that strongly emphasizes individual achievement, personal success, and independence.

Subculture

A group of people with shared value systems based on common life experiences and situations ex, The Catalan community sharing a distinct regional identity, traditions, and language in Spain.

Total market strategy

Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences ex, Smartphone brands featuring people from diverse backgrounds using the same devices to stay connected rather than making separate ads for every culture.

Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors ex, Grouping individuals based on a combination of occupation, education, income, and wealth that influences holiday and housing preferences.

Membership groups

Groups to which a person belongs and that directly influence their behavior ex, A student's close group of friends, sports team colleagues, or hobby club members.

Reference groups

A group that serves as a direct or indirect point of comparison or reference in forming a person's attitudes or behavior ex, A fitness enthusiast being influenced by professional athletes or fitness creators on social media without personally knowing them.

Opinion leaders

A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others ex, A friend who always knows which smartphone offers the best value and whose advice others actively seek out.

Word-of-mouth influence

The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior ex, Three friends enthusiastically recommending a streaming service, making a consumer far more likely to subscribe than if they had just seen an ad.

Influencer marketing

Enlisting established influencers or creating new influencers to spread the word about a company's brand ex, Partnering with a tech YouTuber to review a new laptop or a fitness creator to promote sports nutrition.

Online social networks

Online social communities—blogs, online social media, brand communities, and other online forums—where people socialize or exchange information and opinions ex, Consumers visiting Reddit or online review forums to read user opinions before purchasing a gaming console.

Role

The activities that people in an individual's surroundings expect that individual to perform ex, A student attending classes, a sports captain leading teammates, or a manager coordinating employees.

Status

The respect that society attaches to a particular role ex, A young professional purchasing specific business attire and accessories to reflect their new professional status in a firm.

Life stage

Major life situations and transitions that people experience as they move through life, which impact their consumption patterns ex, Moving out of the family home, starting a first job, getting married, or becoming a parent.

Lifestyle

A person's pattern of living as expressed through their activities, interests, and opinions ex, A consumer spending weekends hiking and traveling, leading them to buy outdoor adventure gear and apparel brands like Patagonia.

Activities - Interests - Opinions (AIO)

The three core dimensions used by marketers to measure and categorize a person's lifestyle patterns ex, Tracking what people spend their time doing, what they care about most, and how they view themselves and the world.

Personality

The unique psychological characteristics that distinguish one person from another, influencing their habitual responses to the environment ex, An adventurous person being more willing to try a new restaurant or adopt innovative technology quickly.

Brand personality

The specific mix of human traits that may be attributed to a particular brand ex, Apple being associated with innovation and creativity, or Rolex being linked to prestige and sophistication.

Self-concept/Self-image

The way people see themselves, or the way they would like others to see them, which they often express through product and brand choices ex, An environmentally conscious consumer buying sustainable products that reinforce their personal self-image.

Motive

A need that is sufficiently pressing to direct the person to seek satisfaction of the need ex, Hunger becoming so intense after a few hours of classes that a student actively leaves to look for food.

Maslow's Hierarchy of Needs

A psychological framework organizing human needs into five hierarchical levels ranging from basic physiological needs to self-actualization ex, Food delivery services satisfying physiological needs while luxury items target higher-level esteem needs.

Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world ex, Two consumers looking at the same advertisement but interpreting its message in completely different ways.

Selective attention

The tendency for people to screen out most of the incoming information to which they are exposed every day ex, A consumer who is shopping for a new laptop suddenly noticing laptop ads everywhere while ignoring unrelated product commercials.

Selective distortion

The tendency of people to interpret information in a way that fits with what they already believe ex, A skeptical consumer reading an article about electric vehicles and focusing strictly on charging time limitations rather than improvements.

Selective retention

The tendency for people to retain information that supports their existing attitudes and beliefs while forgetting contradictory information ex, A loyal customer of a smartphone brand remembering all positive reviews about their brand while quickly forgetting praise for competitors.

Learning

Changes in an individual's behavior arising from experience ex, A consumer repeating a purchase because a previous experience with a brand was positive and satisfying.

Learning theory

A framework explaining how consumer behavior is shaped through the interaction of drives, stimuli, cues, responses, and reinforcement ex, A strong drive to get fit leading someone to buy running shoes, and getting a comfortable fit reinforcing future purchases from that same brand.

Generalization

The tendency to extend a positive or negative experience with one product to other similar products from the same brand ex, Buying running accessories and sportswear from the same brand because of a great prior experience with their running shoes.

Belief

A descriptive thought that a person holds about something ex, A consumer thinking that a specific airline is reliable or that electric vehicles are environmentally friendly.

Attitude

A person's relatively consistent evaluations, feelings, and tendencies toward a particular object or idea ex, A consumer holding a consistently favorable feeling toward sustainable products and an unfavorable feeling toward fast fashion.

Complex buying behavior

Consumer buying behavior characterized by high consumer involvement in a purchase and significant perceived differences among brands ex, Purchasing a first home, choosing a master's degree program, or buying an expensive high-end camera.

Dissonance-reducing buying behavior

Consumer buying behavior occurring when a consumer is highly involved with an expensive or risky purchase but sees few differences among brands ex, Buying home insurance where providers look very similar, leading to potential post-purchase doubt.

Cognitive dissonance (post-purchase dissonance)

Post-purchase buyer discomfort or uncertainty caused by lingering doubts about trade-offs and alternative choices ex, Feeling second-guessing doubts after buying an expensive car because competing brands offered different benefits.

Habitual buying behavior

Consumer buying behavior characterized by low consumer involvement and few perceived significant brand differences ex, Buying everyday routine goods like paper towels, bottled water, or table salt out of familiarity.

Variety-seeking buying behavior

Consumer buying behavior characterized by low consumer involvement but significant perceived brand differences, leading to frequent brand switching for the sake of trying something new ex, Switching between different flavors of ice cream, breakfast cereals, or snack chips purely for variety.

The buyer decision process

The five stages consumers go through in making a purchase: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior ex, Moving from recognizing that an old laptop is too slow all the way to evaluating models and reviewing the purchase afterwards.

Need recognition

The first stage of the buyer decision process in which the consumer recognizes a problem or need triggered by internal or external factors ex, Realizing you are thirsty or seeing a friend's new smartphone and wanting an upgrade.

Information search

The stage of the buyer decision process in which the consumer is motivated to search for more information from personal, commercial, public, or experiential sources ex, Browsing consumer reviews, asking friends, and comparing car models online.

Evaluation of alternatives

The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set ex, Comparing three car models based on price, fuel efficiency, and performance attributes.

Purchase decision

The stage of the buyer decision process in which the consumer decides about which brand to purchase, subject to potential peer advice or situational influences ex, Choosing a preferred brand at checkout after weighing features and price.

Post-purchase behavior

The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction with the product ex, Evaluating whether a newly purchased laptop met expectations, leading to repeat purchases or sharing online reviews.