1 Introduction to Consumer Behavior & Design Thinking

Vocabulary flashcards covering key terms and concepts from the lecture on design thinking, consumer behavior fundamentals, Maslow needs, market segmentation, and contemporary consumer trends.

Design Thinking

A human-centered, iterative approach to innovation that balances user needs, technological possibilities, and business success through six stages: Empathize, Define, Ideate, Prototype, Test, and Implement.

Empathize (Stage 1)

The design-thinking phase focused on deeply understanding users through interviews, observation, and other qualitative research to uncover latent needs and emotional drivers.

Define (Stage 2)

The phase where insights from Empathize are synthesized into a clear problem statement framed from the user’s perspective.

Ideate (Stage 3)

The brainstorming phase that encourages divergent thinking to generate a wide range of creative solutions without judgment.

Prototype (Stage 4)

Building quick, tangible representations of ideas—such as sketches or mock-ups—to learn, iterate, and identify improvements before full investment.

Test (Stage 5)

Gathering feedback from real users on prototypes to validate assumptions, uncover usability issues, and refine solutions iteratively.

Implement (Stage 6)

Rolling out the validated solution to market while continuing to refine it based on ongoing user feedback.

Empathy Map

A visual framework that captures what a user says, thinks, does, and feels, along with their pains and gains, to synthesize user research.

Latent Needs

User requirements or desires that are not immediately obvious and often surface through deep empathy research.

Divergent Thinking

A creative process used in Ideate that welcomes all ideas—conventional or unconventional—to explore broad possibilities.

Iterative Process

A cyclical approach of prototyping, testing, and refining that characterizes design thinking and continuous improvement.

Customer

The person or entity who purchases a good or service from a business.

Consumer

The end user who actually uses or benefits from the product or service.

Customer vs. Consumer Distinction

Recognizing that the purchasing decision maker (customer) may differ from the end user (consumer), affecting targeting and messaging.

Consumer Behavior

The study of how individuals or groups select, purchase, use, and dispose of products, services, or experiences.

Physiological Needs

Basic survival requirements such as food, water, and shelter that drive essential purchases.

Safety Needs

The desire for protection, stability, and security, motivating purchases like insurance or home security systems.

Social Needs

The need for belonging, friendship, and acceptance, often satisfied through social media, clubs, or gifting.

Esteem Needs

Desire for status, recognition, and achievement, driving purchases of luxury goods or branded items.

Self-Actualization Needs

Pursuit of personal growth and fulfillment, motivating spending on travel, education, or creative activities.

Consumer Trend

An evolving pattern in how people think, feel, and behave toward products, brands, or services, shaped by cultural, social, and technological forces.

Sustainability & Ethical Consumption

A trend where consumers favor eco-friendly products, ethical labor practices, and supply-chain transparency.

Digital-First & Mobile Behavior

Consumer preference to interact with brands primarily through digital platforms, especially smartphones, expecting seamless mobile experiences.

AI & Personalization Expectations

Rising demand for tailored recommendations and real-time customization enabled by artificial intelligence.

Wellness & Mental Health Focus

A trend where consumers prioritize mental and physical well-being, seeking products and services that support holistic health.

Instant Gratification & Convenience

Expectation for fast, simple transactions such as same-day delivery, one-click checkout, and on-demand services.

Experience over Ownership

Preference—especially among younger consumers—for memorable, shareable experiences rather than possessing physical goods.

Market Segmentation

Dividing a broad consumer market into smaller groups with shared characteristics to tailor marketing strategies effectively.

Demographic Segmentation

Grouping consumers by age, gender, income, education, family size, or occupation to align products with life-stage needs.

Geographic Segmentation

Segmenting markets based on location such as country, region, climate, or population density to address regional preferences.

Psychographic Segmentation

Classifying consumers by lifestyle, values, personality, or social class to connect with underlying motivations.

Behavioral Segmentation

Grouping consumers by purchase frequency, usage rate, brand loyalty, or benefits sought to target based on actual actions.

Product Development (Marketing Application)

Using consumer insights to co-create offerings that solve real problems or fulfill unmet needs.

Pricing Strategy

Setting prices based on perceived value, psychological cues, or segment sensitivity, such as tiered or value-based pricing.

Promotion & Communication

Crafting messages that resonate with consumer emotions, motivations, and decision styles to build connections and drive action.

Placement & Distribution

Choosing channels and timing that match consumer shopping preferences, enabling omnichannel experiences.

Customer Experience Design

Mapping and optimizing every touchpoint of the consumer journey to remove friction and enhance satisfaction and loyalty.