Marketing and Consumer Behavior: Key Concepts and Strategies

Ethnocentric

Marketing based on cultural or ethnic background.

Geographic

Marketing based on location (city, region, climate).

Demographic

Marketing based on measurable traits like age, gender, income.

Behavioristic

Marketing based on customer behavior and buying patterns.

Self-efficacy

Confidence in one's ability to perform tasks.

Motivation

Internal drive to meet needs or achieve goals.

Attitude

Learned tendency to respond positively or negatively toward something.

Skill

Ability to perform a specific task.

Factoring

Selling accounts receivable to get immediate cash.

Financing

Providing or arranging funds for customers to buy products.

Auditing

Reviewing financial records for accuracy.

Positioning

Shaping how a product is perceived relative to competitors.

Population density

Number of people in a geographic area.

Cultural values

Beliefs and traditions influencing behavior.

Family size

Number of people in a household (demographic variable).

Lifestyle

Activities, interests, and opinions of a group.

Interactivity

Two-way communication between company and customers.

Addressability

Ability to identify and reach individual customers.

Creativity

Using imaginative approaches in marketing or content.

Control

Customer's ability to choose the information they see.

Psychological pricing

Pricing to influence perception (e.g., $9.99).

Price skimming

Setting a high price first, then lowering it over time.

Penetration pricing

Setting a low price to quickly gain market share.

Profit maximization

Setting prices to earn the highest short-term profit.

Producer (Manufacturer) brand

Brand owned and controlled by the manufacturer.

Trademark

Legal protection for a brand name or symbol.

Private distributor

Brand owned and managed by a retailer (store brand).

Creating long-term partnerships

Building ongoing relationships between channel members.

Risk-taking function

Assuming responsibility for theft, obsolescence, or excess inventory.

Marketing support function

Providing sales force, advertising, promotion, publicity.

Logistics function

Arranging transportation and storage of products.

Viral marketing

Marketing designed to spread quickly online.

User-generated content

Content created by consumers (reviews, posts, videos).

Omni-channel retailing

Integrating multiple sales channels (online, in-store).

Mobile marketing

Marketing through mobile devices and apps.

Digital marketing

Marketing using electronic and online channels.

Predatory marketing

Aggressive marketing intended to undermine competitors.

Consumer Product Safety Commission (CPSC)

U.S. agency for unsafe product regulation.

Federal Trade Commission (FTC)

U.S. agency regulating unfair or deceptive business practices.

Better Business Bureau (BBB)

Monitors businesses, provides ratings, and mediates complaints.

General Data Protection Regulation (GDPR)

EU law for consumer data privacy.

Convenience products

Items bought frequently with minimal effort.

Shopping products

Items that require comparison before buying.

Specialty products

Unique items customers make a special effort to obtain.

Distribution

Getting products from manufacturer to customer.

Segmentation

Dividing the market into meaningful groups.

Product (Marketing Mix)

What is being sold (features, quality, design).

Price (Marketing Mix)

Cost to the customer.

Growth stage

Rapidly increasing sales and rising profits; competition begins to enter.

Maturity stage

Sales peak and growth slows; competition is intense.