mkt 3411 TORI

assumptions from economics

no cost or time restraints

heurisitcs

knowing the origin

contrast effects

survey only v survey after hours of volunteering
all alternatives and consequences are known

compromise effects

preferences are clear
most consumers don't like extremes, pick the middle to justify

reference points

changing perception by what you put in the environment, choosing the cheaper out of the two options with the same ingredients
the problem is clear and unambiguous

framing effects

has a single well defined goal
doing something extra to opt out an alternative

consumer behavior

study of consumer decision making and its impacts

reasons to study consumer behavior

marketing strategy, regulatory policies, social marketing and to become informed

marketing strategy and customer value

market analysis
segmentation
marketing strategy
consumer decision process
outcomes

market analysis

consumers, company, competitors, conditions

segmentation

identify product related need sets
group customers with similar needs
describe each group
select an attractive segment

marketing strategy

how we provide superior value
product
price
place
promotion

outcomes of marketing strategy

firm outcomes
individual
societal

firm

product position
sales and profits
customers satisfaction

individual

need satisfaction
injuries consumption

societal

economic outcomes
physical environment outcomes
social welfare

values

beliefs about what is desirable

self oriented

belief about what is desirable for individuals

other-oriented

beliefs about appropriate relationships

environment-oriented

beliefs about how to interact with economic technical and physical environment

causes of value shifts

shifts in beliefs about what is desirable

generational shifts

as one moves out, you grow up with different society that influences your values

examples of self-oriented value shifts

religious/secular
postponed or immediate gratification
sensual gratification/abstinence
material/non-materialism

religious/secular

chic-fil-a
hobby lobby
positive/negative consumption based on your religion

material v non-material

material need is driven by social media

sensual gratification

condomns
bc
body spray
lingerie
gourmet donuts

voluntary simplification

reduced reliance on consumption and material possessions

environment-oriented values

cleanliness
change v. tradition
performance v. status
problem solving v. fatalistic
overcoming nature v. admiring it
risk taking v. security

cleanliness

highest level of personal hygiene products to save time
rumba

change v tradition

society likes change in the sake of changing for good
iPhone 10 v 8

performance v status

want things that will perform well not stoop status

problem solving v fatalistic

home depot
hair dye

overcoming nature v admiring it

reusable straws

enviroprenurial marketing

environmentally friendly marketing practice

risk taking v security

now by need for security
facebook and mariott
lifelock

other-oriented values

individualism v collective
competiveness v cooperation
masculinity
youth
limited families
uniformity

individualism v collective

customerization

competitiveness v cooperation

reality tv shows
airbnb

masculinity

men's skincare
publix

youth

trend toward valuing older consumers, boomers have highest income and just getting older
AARP

limited families

value
23 and me

uniformity

trend toward diversity
dove

marketing strategy and values

green marketing
greenwashing
cause related marketing

green marketing

developing products who use or disposal is less harmful to the environment than traditional versions, with a positive impact on the environment.

greenwashing

environmental claims are unsubstantiated
green cleaners suck
bamboo sheets
biobag

cause related marketing

ties a company to an issue/cause with the goal of improving sales or corporate image while providing benefits to the use
toms
yoplait

demographics

size, distribution and structure of a population

influence of demographic on consumer behavior

directly and indirectly

class to mass

affordable luxury products

Subjective discretionary income (SDI)

how much a consumer estimates he has to spend on nonessentials

cognitive age v chronological age

how old you feel v how old you are
marketing based on age

generation (Cohort)

group of people who have experienced a common social, political, historical and economic environment

cohort analysis

process of describing and explaining attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors

silent generation
before 1946
fastest growing demographic among social networks

gerontrographic segment
healhty indulger- still in market
healthy hermit- at home
ailing outgoers- not healthy but out
frail recluses-withdrawn from marketplace activities

main source of info

tv
news

market trageted

jewelry
assisted living
jitterbug
frozen meals

baby boomers
1946-1964
\=

active retirement

main source of information

internet
radio
tv

market targeted

our time
river cruise
frozen meals for 2

generation x
1965-1975

forgotten generation
dual income house
latch key
divorced parents

market target

home depot
hgtv

info

facebook
tv
email

millennials
1977-1994

gen y
low marriage rate
hit with recession hardest
divorce is norm
respect diversity

market target

social media by influencers
user generated content

info

facebook
youtube

gen z
1995-2009

digital natives
value personal responsibility, civic engagement and diversity
purchase with relationship building brands or well-run businesses

target

social media
insta
snapchat
twitter
youtube
subscription boxes
Advertising-gaming

social stratification

societal rank, social class system and status crystallization

societal rank

social standing, social class: one's position relative to others in society

social class system

hierarchical division of society into distinct and homogeneous groups with respect to attitude, values and lifestyles

status crystallization

degree of consistency on status dimension

high crystallization

staying in same social class as you were born in

low crystallization

shifting between social classes

influencing purchasing behavior with crystallization

better for marketers with high crystallization

determining social strata

single item measures- education
multi item measure -education and occupation

hollingshead index

ISP\= (occupation score*7) + (education score *4)

households

family and nonfamily

family

people related by blood or adoption under one household
traditional family
step family

family life cycle (HLC)

traditional: grow up --\> have children --\> grow old --\> usually women outlive
now: go any which order

motivators of consumption at each stage of HLC

single-entertainment and convenience
young couple- relaxation, recreation, status, signaling
full nest- convenience, time savings, safety
empty nesters- recreation, gift giving

HLC/occupational category matrix

The vertical axis is the particular stage in the HLC, which determines the problems the household will likely encounter; the horizontal axis is a set of occupational categories, which provide a range of acceptable solutions.

marketing strategy and family decision making

discover which family members are involved at each stage (joint or individuals)
determine motivations and interests of each member
develop a strategy for each participant

3 consumer socialization

consumer skills
consumption related preferences
consumption related attitudes

consumer skills

capabilities necessary for purchases to occur

consumption related preferences

knowledge, attitudes and values that cause people to attach differential evaluations to products, brands and retail outlets

consumption related attitudes

cognitive and affective orientation toward marketplace to stimuli

instrumental training

direct attempt to bring about response
teaching

modeling

behaviors learned through observing others
mimicking

meditation

parent alters child's initial interpretation

reference group

group of an individual uses as a guide for behavior

dissociative

do not want to associate with group doing certain things

aspirational

inspired by another group

criteria for classifying groups

attraction
membership- in-group or outgroup
type of contact- direct or indirect

primary influence

strong influencers to you

secondary

less influencing groups of people

consumption subcultures

Identifiable hierarchy
Set of shared beliefs and values
Unique jargon and rituals
modes of expression

brand communties

non-geographically bound community based on a set of relationships among owners of a brand

online communities

interact overtime around a topic of interest on the internet

social networks

10% of advertising

reasons marketers use social media

consumer use is high \= acquisition potential is high
consumer share brand information online\= interacting via social media leads to greater recall, connectedness and increased purchase likelihood