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Mark 4100 Exam 1
consumer behavior - the totality of consumers' decisions with respect to the acquisition, consumption, and disposition of goods, services, time, places, and ideas by human decision-making units (over time) (to maximize utility) consumer behavior reflects - the totality of decisions, about the consumption, of an offering, by decision-making units, over time the totality of decisions - whether what why how when where how much/how often/how long about the consumption - acquisition, usage, disposition of an offering - products, services, activities, experiences, people, ideas (offered by a marketing organization to consumers) by decision-making units - Information gatherer, influencer, decider, purchaser and user over time - hours, days, weeks, months, years acquisition - the process by which a consumer comes to own or experience an offering usage - the process by which a consumer uses or consumes an offering (very core of consumer behavior) disposition - the process by which a consumer discards an offering
stretched spenders - live paycheck to paycheck and feel anxious about their financial situation carefree spenders - live paycheck to paycheck and do not feel anxious about their financial situation security seekers - don't live paycheck to paycheck, yet feel anxious about their financial situation cushioned savers - don't live paycheck to paycheck and do not feel anxious about their financial situation "liquid" consumption - short-term, access based, dematerialized, and focused on values of flexibility, adaptability, lightness, and detachment "solid" consumption - enduring, ownership-based, and material ways to acquire an offering - buying, trading, renting or leasing, bartering, gifting, finding, stealing, sharing ways of disposing an offering - find a new use for it, get rid of it temporarily, get rid of it permanently sales of a product can be increased when the consumer - 1. uses larger amounts of the product
- uses the product more frequently
- uses it for longer periods of time what affects consumer behavior? - 1. psychological core
- the process of making decisions
- the consumers culture
- consumer behavior outcomes internal factors that affect consumer behavior - -motivation, ability, opportunity (MAO) -exposure, attention, perceptions and comprehension -memory and knowledge
culture - the typical or expected behaviors, norms, and ideas that characterize a group of people reference groups - group of people consumers compare themselves with for information regarding behavior, attitudes, or values values, personality, and lifestyles - relatively broad and stable psychographic characteristics that influence a range of consumer behaviors over time, but usually with a modest effect on each specific behavior symbols - external signs that consumers use to express their identity problem with common sense - -make decisions based on a few (biased) samples -do not know what info to use or how to weigh types of info -many biases are hard to overcome projection bias/ethnocentrism - the tendency to assume that others (or future you) share similar values, beliefs, thoughts, or preferences with you availability bias - operates on the notion that if something can be recalled, it must be important, or at least more important that alternative solutions which are not as readily recalled survivor bias - the tendency to only look at people/things that passed some selection threshold and reaching an incorrect conclusion default bias - people tend to accept the presented choice (people do not like change, from the presented choice or their own past behavior) marketing - the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for individuals, groups and society perceptual map - graph that plots the results of how consumers view other brands in comparison with their own copy testing or pretesting - testing an ad's effectiveness before it appears in public
primary data - data originating from a researcher and collected to provide information relevant to a specific research project secondary data - data collected for some other purpose that is subsequently used in a research project explanatory research - what do consumers think about introducing a new product? descriptive research - what factors, among many, are important to my sales? causal/experimental research - Would changing my package size affect my sales? quantitative information - survey, scanner panel data, data mining qualitative information - interviews, focus groups in-house research - one's own marketing research department external research - hiring marketing professors as consultants to conduct the research survey - a method of collecting information from a sample of consumers, predominantly by asking questions focus groups - a form of interview involving 8-12 people; a moderator leads the group and asks participants to discuss a product, concept, or other marketing stimulus storytelling - A research method by which consumers are asked to tell stories about product acquisition, usage, or disposition experiences. These stories help marketers gain insights into consumer needs and identify the product attributes that meet these needs. independent variable - The "treatment" or the entity that researchers vary in a research project.
order of means-end chain model - product --> attribute --> benefit --> instrumental value --> terminal value data mining - Searching for patterns in a company database that offer clues to customer needs, preferences, and behaviors. netnography - Observing and analyzing the online behavior and comments of consumers. research foundation - A nonprofit organization that sponsors research on topics relevant to the foundation's goals. trade group - A professional organization made up of marketers in the same industry. questionnaire do's - -organize branching questions -use simple words -make opening questions clear and simple -pretest the questionnaire questionnaire don'ts - -double-barreled questions -overlapping choices (exhaustive and mutually exclusive) -avoid hard estimates -avoid leading questions -avoid long questionnaires levels of measurement - -nominal (categorical) -ordinal (ordered info) -interval (ordered info and difference known info) -ratio (comparative info no real zero point) new(er) consumer research methods - -eye tracking (screen-based, wearable, web-based) -brain activity (EEG, fMRI) -facial expression analysis
-skin conductance (arousal level) ethical issues - -helps improve consumer experiences and build customer relationships -higher costs -cultural expectations -privacy -deceptive practices motivation - An inner state of activation that provides energy needed to achieve a goal. motives affect - -attention, information search, perception -attitudes -behavior outcomes of high MAO - 1. goal relevant behavior
- high effort information processing and decision-making
- involvement motivated reasoning - Processing information in a way that allows consumers to reach the conclusion that they want to reach. enduring involvement - Long-term interest in an offering, activity, or decision. situational (temporary) involvement - Temporary interest in an offering, activity, or decision, often caused by situational circumstances. cognitive involvement - Interest in thinking about and learning information pertinent to an offering, an activity, or decisions. affective involvement - Interest in expending emotional energy and evoking deep feelings about an offering, an activity, or a decision.
maslow's hierarchy of needs - physiological, safety, social, egotistic, self-actualization products and maslow's - -one product can fulfill multiple needs -products (as a strategy) can be connected to higher order approach-avoidance conflict - An inner struggle about acquiring or consuming an offering that fulfills one need but fails to fulfill another. approach-approach conflict - An inner struggle about which offering to acquire when each can satisfy an important but different need. avoidance-avoidance conflict - An inner struggle about which offering to acquire when neither can satisfy an important but different need. goal - Outcome that we would like to achieve. promotion-focused goals - consumers are motivated to act in ways to achieve positive outcomes prevention-focused goals - consumers are motivated to act in ways to avoid negative outcomes regulatory focus - -group setting (how others behave) -cultural differences (western: promotion, eastern: prevention) -psychological distance (far: promotion, near: prevention) appraisal theory - A theory of emotion that proposes that emotions are based on an individual's assessment of a situation or an outcome and its relevance to their goals. self-control - Process consumers use to regulate feelings, thoughts, and behavior in line with long- term goals, rather than to pursue short-term goals. Ego depletion - Outcome of decision-making effort that results in mental resources being exhausted.
perceived risk - The extent to which the consumer anticipates negative consequences of an action, for example, buying, using, or disposing of an offering, to emerge and positive consequences to not emerge. performance risk - uncertainty about whether the product or service will perform as expected financial risk - higher if an offering is expensive physical risk - potential harm a product or service might pose to one's safety social risk - potential harm to one's social standing that might arise from buying, using, or disposing of an offering psychological risk - reflects concern about the extent to which a product or service fits with the way they perceive themselves time risk - Uncertainties over the length of time consumers must invest in buying, using, or disposing of the offering. intrinsic motivation - stimulation or drive stemming from within oneself -based on expectation of person satisfaction extrinsic motivation - encouragement from outside force -performed based on expectation of an outside reward ability - The extent to which consumers have the required resources to make an outcome happen. determinants of ability - financial resources, cognitive resources, emotional resources, physical resources, social/cultural resources, education and age financial literacy - an expertise about financial matters, with major implications for consumer behavior
