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Consumer Behavior
The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
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Personal Consumer
The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend. Organizational Consumer: A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.
Copyright 2007 by Prentice Hall
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Segmentation: Process of dividing the market into subsets of consumers with common needs or characteristics Targeting: The selection of one or more of the segments to pursue Positioning: Developing a distinct image for the product in the mind of the consumer
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Successful Relationships
Customer Value - ratio between customers
perceived benefits and the resources used to obtain those benefits.
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Use technology to help customers customize what you make Focus on the products perceived value, as well as the need that it satisfies Understand customers needs to develop offerings that they perceive as more valuable than competitors offerings
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CHAPTER TWO
The Consumer Research Process
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- Deductive logic
-from generalities to specifics
IK
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Quantitative Research
Descriptive Enables marketers to predict consumer behavior (positivism). Uses experiments, survey techniques, and observation.
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Qualitative Research
Consists of depth interviews, focus groups, metaphor analysis, collage research, and projective techniques. Administered by highly trained intervieweranalysts. Findings tend to be subjective. Small sample sizes.
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Quantitative Research
Study Purpose Describe target market Results for strategic marketing decisions Types of Questions Close-ended Attitude scales Data Collection Methods Observation Experimentation Questionnaires
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Quantitative Research
Sampling Methods Large Probability samples
Data Analysis Analyzed by researchers who collected data Look for key words Subjective
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Data Analysis Coded, tabulated, and entered into database Use of statistical methods
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Secondary Data
Data that have been collected for reasons other than the specific research project at hand Includes internal and external data
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Attitude Scales
Likert scales: easy to prepare and interpret; simple for consumers to answer Semantic differential scales: relatively easy to construct and administer Behavior intention scales: also easy to construct and administer Rank-order scales: subjects rank items in order of preference in terms of some criteria
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Likert Scale
Please place the number that best indicates how strongly you agree or disagree with each of the following statements about shopping online in the space to the left of the statement.
1 = Agree Strongly 2 = Agree 3 = Neither Agree or Disagree 4 = Disagree 5 = Disagree Strongly
_____ a. It is fun to shop online. _____ b. Products often cost more online. _____ c. It is a good way to find out about new products.
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4 3
Excellent
Availability
Number of Titles
Clarity of Picture
Ease of Access
Cost
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Rank-Order Scale
Rank the following computer manufacturers in terms of hotline help by placing a 1 next to the one who provides the best telephone help, a 2 next to the second best, until you have ranked all six.
_____ IBM _____ Dell _____ Compaq _____Hewlett Packard _____ Gateway _____ NEC
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Projective Techniques
1. Word Association Techniques
1. Simple 2. Controlled 3. Successive
2. Completion Techniques
1. Sentence 2. Story
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Non-probability:
IK
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CHAPTER THREE
Market Segmentation and Strategic Targeting
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Market Segmentation
The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.
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Segmentation Studies
Discover the needs and wants of groups of consumers to develop specialized products to satisfy group needs Used to identify the most appropriate media for advertising
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HiHighs (stroke)
LowHighs (chase)
Low
HiLows (tickle)
LoLows (starve)
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Use-Situation Segmentation
Segmenting on the basis of special occasions or situations For example:
Whenever our daughter Jamie gets a raise, we take her out to dinner When Im away on business, I try to stay at a suites hotel I always buy my wife flowers on Valentines Day
Benefit Segmentation: Segmenting on the basis of the most important and meaningful benefit
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VALS Framework
Figure 3-7
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Differentiated
Several segments with individual marketing strategies
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CHAPTER FOUR
Consumer Motivation
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Types of Needs
Innate Needs
Physiological, Primary or Biogenic needs:
Positive or Supply needs Negative or Avoidance needs Specie maintenance need
Acquired needs
Psychological, Secondary or Psychogenic
Ego defensive needs Ego bolstering needs Affectional needs
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Goals
The sought-after results of motivated behavior Generic goals are general categories of goals that consumers see as a way to fulfill their needs Product-specific goals are specifically branded products or services that consumers select as their goals
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Goal Conflicts
Positive Motivation: A driving force toward some object or condition Approach Goal (A positive goal toward which behavior is directed) Negative Motivation: A driving force away from some object or condition Avoidance Goal (negative goal from which behavior is directed away) Conflicts: Approach/Approach Approach/Avoidance Avoidance/Avoidance
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Goal Adjustments
Substitute Goals Are used when a consumer cannot attain a specific goal he/she anticipates will satisfy a need The substitute goal will dispel tension Substitute goals may actually replace the primary goal over time Frustration Failure to achieve a goal may result in frustration. Some adapt; others adopt defense mechanisms to protect their ego.
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Defense Mechanism
Methods by which people mentally redefine frustrating situations to protect their self-images and their self-esteem:
- Aggression - Rationalization - Regression - Withdrawal - Projection - Daydreaming (Autism) - Identification - Repression
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Arousal of Motives
Physiological arousal Emotional arousal Cognitive arousal Environmental arousal
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Cognitive School
Behavior is directed at goal achievement Needs and past experiences are reasoned, categorized, and transformed into attitudes and beliefs
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Needs Concerned with Affection between People: Affiliation, Rejection, Nurturance, Succorance, Play
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A Trio of Needs
Power
individuals desire to control environment
Affiliation
need for friendship, acceptance, and belonging
Achievement
need for personal accomplishment closely related to egoistic and selfactualization needs
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CHAPTER FIVE
Personality and Consumer Behavior
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Theories of Personality
Freudian theory
Unconscious needs or drives are at the heart of human motivation
Trait theory
Quantitative approach to personality as a set of psychological traits
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Freudian Theory
Id Superego Ego
Consumer researchers using Freuds personality theory see consumer purchases as a reflection and extension of the consumers own personality
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Trait Theory
Focus on measurement of personality in terms of traits Trait - any distinguishing, relatively enduring way in which one individual differs from another Personality is linked to broad product categories and NOT specific brands
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Social character
Sensation seeking
Variety-novelty seeking
Copyright 2007 by Prentice Hall
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Consumer Innovativeness
Personality trait that fosters a willingness to create and accept change Further broken down for hi-tech products
Global innovativeness Domain-specific innovativeness Innovative behavior
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A GENERAL CONSUMER INNOVATIVENESS SCALE 1. I would rather stick to a brand I usually buy than try something I am not very sure of. 2. When I go to a restaurant, I feel it is safer to order dishes I am familiar with. A DOMAIN-SPECIFIC CONSUMER INNOVATIVENESS SCALE 1. Compared to my friends, I own few rock albums. 2. In general, I am the last in my circle of friends to know the titles of the latest rock albums.
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Dogmatism
The degree of rigidity a person displays toward things unfamiliar and information contrary to his or her own established beliefs
Need for Uniqueness: Consumers who avoid conforming to expectations or standards of others
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Social Character
Ranges on a continuum for innerdirectedness to other-directedness Inner-directedness rely on own values when evaluating products Innovators Other-directedness look to others less likely to be innovators
Copyright 2007 by Prentice Hall
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter Five Slide
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Variety-Novelty Seeking
Measures a consumers degree of variety seeking Examples include:
Exploratory Purchase Behavior Use Innovativeness Vicarious Exploration
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Visualizers Verbalizers .
Copyright 2007 by Prentice Hall
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall Chapter Five Slide
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Brand Personification
Consumers perception of brands attributes for a human-like character Mr. Coffee is seen as dependable, friendly, efficient, intelligent and smart.
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Different Self-Images
Actual Self-Image Ideal Self-Image Social Self-Image Ideal Social Self-Image Expected Self-Image Out-to self
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How consumers see themselves How consumer would like to see themselves How consumers feel others see them How consumers would like others to see them How consumers expect to see themselves in the future Traits an individual believes are in her duty to possess
Chapter Five Slide
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Extended Self
Possessions can extend self in many ways:
Actually Symbolically Conferring status or rank Bestowing feelings of immortality Endowing with magical powers
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Virtual Personality
You can be anyone Gender swapping Age differences Mild-mannered to aggressive Altering the Self-Image: Using self-altering products to express individualism by: Creating new self Maintaining the existing self Extending the self Conforming
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CHAPTER SIX
Consumer Perception
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Perception
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world Elements of Perception
Sensation Absolute threshold Differential threshold Subliminal perception
Copyright 2010 Prentice Hall Copyright 2007 byPearson Education, Inc. Publishing as Prentice Hall
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Sensation
Sensation is the immediate and direct response of the sensory organs to stimuli
A stimulus is any unit of input to any of the senses.
The absolute threshold is the lowest level at which an individual can experience a sensation.
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Subliminal Perception
Stimuli that are too weak or too brief to be consciously seen or heard
They may be strong enough to be perceived by one or more receptor cells.
Is it effective?
Extensive research has shown no evidence that subliminal advertising can cause behavior changes Some evidence that subliminal stimuli may influence affective reactions
Chapter Six Slide
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Aspects of Perception
Selection
Organization Interpretation
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Perceptual Selection
Selection Depends Upon:
Includes the products physical attributes, package design, brand name, advertising and more Based on familiarity, previous experience or expectations.
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Perceptual Organization.
Figure and ground: The figure is sharp, ground is usually hazy. Marketers usually design so the figure is the noticed stimuli. Grouping: Grouping stimuli by proximity, similarity etc.. It helps memory and recall. Closure: Supplying in missing details to complete an experience Good Figures: People tend to perceive familiar, well-known, symmetrical designs better than unfamiliar or odd ones
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Interpretation
People hold meanings related to stimuli
Stereotypes Stereotypes Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
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Interpretation
Positive attributes of people they know to those who resemble them Important for model selection
Stereotypes
Stereotypes
Physical Appearances
Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
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Interpretation
Verbal messages reflect stereotypes
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
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Interpretation
First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive
Stereotypes
Stereotypes
Physical Appearances
Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
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Interpretation
Consumers perceive and evaluate multiple objects based on just one dimension
Stereotypes
Stereotypes
Physical Appearances
Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
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Product Positioning
Establishing a specific image for a brand in the consumers mind in relation to competing brands Conveys the product in terms of how it fulfills a need Successful positioning creates a distinctive, positive brand image
Copyright 2010 Prentice Hall Copyright 2007 byPearson Education, Inc. Publishing as Prentice Hall
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Perceptual Mapping
An analytical technique that enables marketers to plot graphically consumers perceptions concerning product attributes of specific brands
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Positioning of Services
Image is a key factor for services Services often want a differentiated positioning strategy to market several versions of their service to different markets.
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SERVQUAL scale used to measure gap between customers expectation of service and perceptions of actual service. A more recent measure is: RATER - Reliability, Assurance, Tangibles, Empathy, and Responsiveness
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Price/Quality Relationship
The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.)
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Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Types
Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk
Chapter Six Slide
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CHAPTER SEVEN
Consumer Learning
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