marketing

consumer behavior

processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use

value

a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct

perceived value

the value a consumer expects to obtain from a purchase

utilitarian value

a value derived from a product or service that helps the consumer solve problems and accomplish tasks

hedonic value

a value that acts as an end in itself rather than as a means to an end

need recognition

The first stage of the buyer decision process

result of an imbalance between actual and desired states

want

recognition of an unfulfilled need and a product that will satisfy it

stimulus

any unit of input affecting one or more of the five senses

information search

the second stage of the buyer decision process

internal information search

the process of recalling past information stored in the memory

external information search

the process of seeking information in the outside environment

non-marketing-controlled information source

a product information source that is not associated with advertising or promotion

marketing-controlled information source

a product information source that originates with marketers promoting the product

evoked set

a group of brands resulting from an information search from which a buyer can choose

nudge

a small intervention that can change a person's behavior

evaluation of alternatives and purchase

the third stage in the buyer decision process

to buy

ultimately the consumer has to decide:

whether \__ \___

when \__ \___

what \__ \___

where \__ \___

how to pay

planned purchase

typically made after the consumer has collected a large amount of information (home, car)

partially planned purchase

typically made when the consumer knows the product category but waits until shopping to choose a specific style or brand (clothing, furniture)

Impulse purchase

often low-priced items or items on sale or purchased with a coupon, sometimes triggered by a nudge (food or snack item)

psychological ownership

consumers sometimes develop feelings of ownership without even owning the good, service, or brand

jilting effect

anticipation of receiving a highly desirable option only to have it become inaccessible

data breaches

can cause loss of loyal customers, revenue

cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

involvement

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

routine response behavior

the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time

limited decision making

the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

extensive decision making

the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information

culture

the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

subculture

A group of people with shared value systems based on common life experiences and situations

social class

a division of a society based on social and economic status.

reference group

all of the formal and informal groups in society that influence an individual's purchasing behavior

primary membership group

a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers

secondary membership group

a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group

aspirational reference group

a group that someone would like to join

norm

a value or attitude deemed acceptable by a group

nonaspirational reference group

a group with which an individual does not want to associate

opinion leader

an individual who influences the opinions of others

socialization process

how cultural values and norms are passed down to children

separated self-schema

a perspective whereby a consumer sees himself or herself as distinct and separate from others

connected self-schema

a perspective whereby a consumer sees himself or herself as an integral part of a group

influences on buying decisions

gender, age, family life-cycle stage, non-traditional life cycles, personality

perception

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events

selective exposure

The process by which individuals screen out messages that do not conform to their own biases.

selective distortion

a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

selective retention

a process whereby a consumer remembers only that information that supports his or her personal beliefs

motive

Cause for action

business marketing

the marketing of goods and services to individuals and organizations for purposes other than personal consumption

business product

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

consumer product

a product bought by final consumers for personal consumption

content marketing

a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant and consistent

strategic alliance

a collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another

OEMs (original equipment manufacturers)

individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers

NAICS (North American Industry Classification System)

a detailed numbering system developed in North America to classify business establishments by their main production processes

derived demand

business demand that ultimately comes from the demand for consumer goods

inelastic demand

demand in which changes in price have little or no effect on the amount demanded

joint demand

the demand for two or more items used together in a final product

Fluctuating Demand

demand for business products is more volatile than for consumer products

major equipment (installations)

capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings

accessory equipment

goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment

raw materials

Unprocessed natural products used in production

component parts

either finished items ready for assembly or products that need very little processing before becoming part of some other product

processed materials

products used directly in manufacturing other products

supplies

consumable items that do not become part of the final product

Business Services

expense items that do not become part of a final product

buying center

all the individuals and units that play a role in the purchase decision-making process

quality

how good or bad something is

service

Any activity that fulfills a human want or need and returns money to those who provide it.

price

The amount of money exchanged for a good or service

new buy

a situation requiring the purchase of a product for the first time

modified rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

straight rebuy

a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers

market

people or organizations with needs or wants and the ability and willingness to buy

market segment

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

4 Criteria of Segmentation

sustainability

identifiability and measurability

accessibility

responsiveness

segmentation bases

characteristics of individuals, groups, or organizations

geographic segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

Age Segmentation

Marketers use a variety of terms to refer to different age groups

Gender segmentation

dividing a market into different segments based on gender

Income segmentation

Income level influences consumers' wants and determines their buying power.

Ethnic Segmentation

to meet the needs and wants of expanding ethnic populations, some companies make products geared toward specific ethnic groups

family life-cycle segmentation

Consumption patterns among people of the same age and gender differ because they are in different stages of the family life cycle.

family life cycle

a series of stages determined by a combination of age, marital status, and the presence or absence of children

psychographic segmentation

dividing a market into different segments based on social class, lifestyle, or personality characteristics

benefit segmentation

the process of grouping customers into market segments according to the benefits they seek from the product

usage-rate segmentation

dividing a market by the amount of product bought or consumed

satisficers

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

optimizers

business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one