Consumer Behavior and Marketing Concepts

A comprehensive set of flashcards covering key concepts in consumer behavior and marketing, including definitions and explanations.

Marketing Segmentation

The process of dividing a market into distinct subsets of consumers with common needs or characteristics.

Target Market Selection

The process of evaluating and selecting specific market segments to enter.

Product and Service Positioning

Creating a distinct image for a product or service in the minds of the target audience.

Marketing Mix (the 4 Ps)

A set of marketing tools used to pursue marketing objectives: Product, Price, Place, and Promotion.

Consumer Behavior

The actions that a person takes in buying and using products/services, including psychological and social processes.

Culture

The most basic cause of consumer behavior that shapes social and personal factors.

Sub-culture

Groups of people with shared value systems, such as ethnic groups or social classes.

Perception

The process by which people interpret and make sense of the world around them.

Learning

Changes in behavior arising from experience.

Belief

A descriptive thought that a person holds about something, which can influence consumer behavior.

Attitude

Evaluations and feelings toward an object or idea that are often difficult to change.

Social Factors

Factors such as family, roles, and social networks that influence consumer behavior.

Cultural Shifts

Changes in societal values or behaviors that can affect consumer needs and preferences.

Psychological Determinants

Factors related to the mental processes that shape consumer decisions, including beliefs and attitudes.

Belief

a descriptive thought that a person holds about something

attitude

evaluating and feelings toward an object/ideas - are difficult to change

what shapes consumer behavior?

beliefs. not reality

Transparency and Honesty

1. Marketers must provide clear and truthful information about how consumer data is collected and used. Deceptive practices not only erode trust but can also lead to legal repercussions.

Data Privacy and Security:

Safeguarding consumer information is paramount. Unauthorized data sharing or breaches can cause significant harm to individuals and damage a brand's reputation.

Avoiding Targeting Consumers with Vulnerabilities for Exploitation:

While personalization can enhance user experience, it should not exploit vulnerabilities. For instance, targeting individuals struggling with gambling addiction with related advertisements is unethical and can exacerbate harmful behaviors.

Respect for Consumer Autonomy:

Consumers should have control over their data and the choice to opt-in and out of targeted advertising. Respecting these preferences fosters trust and aligns with ethical marketing practices.

 

Case Study: Unethical Targeting in the Gambling Industry

A notable example involves a compulsive gambler who was inundated with personalized ads from a betting company, despite attempts to quit. This aggressive marketing strategy not only ignored the individual's well-being but also violated ethical standards by exploiting a known vulnerability.