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Notes for chapters 1-4

by: Shelby Deese

Notes for chapters 1-4 4413

Marketplace > Mississippi State University > Marketing > 4413 > Notes for chapters 1 4
Shelby Deese
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worksheets made available on my courses completed with notes from class
Consumer Behavior
Dr. Michael Breazeale
Class Notes




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This 11 page Class Notes was uploaded by Shelby Deese on Tuesday February 2, 2016. The Class Notes belongs to 4413 at Mississippi State University taught by Dr. Michael Breazeale in Winter 2016. Since its upload, it has received 105 views. For similar materials see Consumer Behavior in Marketing at Mississippi State University.


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Date Created: 02/02/16
1 | P a g e MKT 4413 Consumer Behavior Dr. Breazeale Chapter 1: Buying, Having, and Being: An Introduction to Consumer Behavior What do we mean when we say “consumer behavior? The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs or desires. What is a consumer? Any entity (person, group, or organization) that identifies a need or a desire, makes a purchase and then disposes of the product in the stages of the consumption process. What are heavy users? Term used by marketers to identify their customers who consume their products at large volumes What is the 80/20 Rule? General rule of thumb stating that 20% of customers in a product category account for about 80% of sales What other consumer characteristics might help us to better segment our customers? Age: generally people around the same age share similar interests Gender: even if the product is needed by males & females, it more than likely needs to be marketed differently in order to appeal to each gender Family Structure: based on things such as marital status, or life stage Social Class and Income: people sharing life patterns can be marketed to in similar ways Race and Ethnicity: share common culture Geography: share similar tastes for clothes, utensils What do we mean by the term, “lifestyle”? a pattern of consumption that reflects a persons choices of how to spend their time and money 2 | P a g e What is relationship marketing? The strategic perspective that stresses the long term, human side of buyer-seller interactions What is database marketing? Tracking consumers buying habits very closely, then crafting products and messages tailored precisely to peoples wants and needs based on this information What is Big Data? The collection and analysis of extremely large datasets to identify patterns of behavior What is role theory? the perspective that many consumer actions resemble the action in a play and that consumers act out various roles, assuming behaviors that correspond with those roles and employing props appropriate to the role What does it mean to consume? To eat, drink, ingest, listen to, read, utilize, or in the case of an idea, to consider something What is a motivation? an internal state that activates a goal oriented behavior What is a goal? Desired end state What is drive theory? the basic mechanism that drives much of our behavior is a set of biological needs that produce unpleasant states of arousal What’s the difference between utilitarian and hedonic needs? Utilitarian: practical, basic needs of survival; Hedonic: need for things that give you status, sometimes considered a “want” What is the culture of participation? Our current culture in which individuals can interact freely with other individuals, companies, and organizations, in which we can create shared content and build on the content of others What is positivism (or modernism)? A paradigm that assumes that human reason is supreme 3 | P a g e What is interpretivism (postmodernism)? The belief that we live in a complex social and cultural world and that meaning is individually created based on our shared experiences. So, what are the key concepts we covered in this chapter? 1. Consumer behavior is a process. 2. Marketers need to understand the wants and needs of different consumer segments. 3. Our choices as consumers relate in powerful ways to the rest of our lives. 4. Our motivations to consume are complex and varied. 5. Technology and culture create a new “always on” consumer. 6. Many different types of specialists study consumer behavior. 7. There are differing perspectives regarding how and what we should understand about consumer behavior. 4 | P a g e MKT 4413 Consumer Behavior Dr. Breazeale Chapter 2: Decision-Making and Consumer Behavior What is involvement? a persons perceived relevance of an object based on their inherent needs, values, and interests What are 5 kinds of perceived risk for consumers? Monetary, functional (ex: changing cell phone companies), physical, social (ex: clothing, makeup), psychological How can marketers create more involvement? Print advertising is considered high involvement, while tv is low involvement. Even though TV is low involvement, advertisers attempt to grasp the attention of the customer by making them fall for the message, or placing the ad in the middle of a popular show. What are the three types of consumer decision-making? Cognitive (usually most involvement), habitual, affective What are the steps in the cognitive consumer decision-making process? 1. problem recognition 2. Information search 3. alternative evaluation Problem Recognition: your current state does not match your desired state Information Search: survey the environment for all options (prepurchase search, external/internal search) Alternative Evaluation: look at all items you came up with during your search What is the evoked set? All alternatives that a consumer knows about What is the consideration set? Alternatives that the consumer actively considers 5 | P a g e What is mental accounting? Principle that states that decisions are influenced by the way that a problem is posed, in terms of potential gains or potential losses. What is a knowledge structure? A set of beliefs and the way we organize them in our mind What is a positioning strategy? Convincing consumers to consider a marketer’s product within a specific category What is the Multiattribute Model of Choice? A model that assumes that more than 1 factor is important when making complex decisions and the individual factors contribute different amounts to the ultimate decision What are evaluative criteria? Demensions that consumers use to judge the merits of competing products What do you need to know to develop a sales strategy? 1. brands being considered 2. evaluative criteria used by consumer 3. consumers rating of each brands performance on each dimension 4. How can you change perceived value? 1. increase performance rating of product 2. decrease rating of a competitor 3. increase or decrease an important criteria weight 4. add new dimension 5. decrease price of product Product Choice: product you choose to take advantage of Postpurchase Evaluation: satisfied or dissatisfied; buyers remorse What is postpurchase evaluation? How you feel about the decision you made 6 | P a g e What is habitual decision-making? Decisions a consumer makes with little or no conscious effort What is purchase momentum? When a consumers initial impulse purchase actually increases the likelihood that the consumer will buy even more impulse buys What is priming? Placing cues in the environment that makes consumers more likely to act in a certain way even though they’re unaware of the influence What are heuristics? Mental rules of thumb that consumers use to make decision making quicker and easier, using fewer mental resources What is ethnocentrism? The tendency to prefer products from ones own country over those from other countries or cultures What is affect? Raw emotional reactions to various stimuli So, what are the key concepts we covered in this chapter? 5. The three categories of consumer decision-making are cognitive, habitual, and affective. 6. A cognitive purchase decision is the outcome of a series of stages that results in the selection of one product over competing options. 7. We often fall back on well learned “rules-of-thumb” to make decisions. 8. We make some decisions on the basis of an emotional reaction rather than as the outcome of a rational thought process. 7 | P a g e MKT 4413 Consumer Behavior Dr. Breazeale Chapter 3: Cultural Influences on Consumer Decision-Making What is culture? a societies personality; includes both abstract ideas such as values and ethics, and material objects such as automobiles, clothing, food, art, and the sports a society produces What are the three functional areas of a cultural system? Ecology, social structure, ideology What are values? Beliefs that some condition is preferable to its opposite What core values tend to define American culture? freedom, youth, achievement, materialism, activity What is enculturation? Learning the values and beliefs endorsed by ones own culture through experience and socialization agents such as parents, friends, and teachers What is acculturation? Process of learning the values and belief systems of another culture What are crescive norms? Unspoken rules that evolve over time to govern social behavior What are customs? Controls basic behavior (taking out the trash) What are mores? A custom with strong moral overtone (incest, cannibalism) What are conventions? Rules that govern how we conduct our daily lives (wouldn’t put a bed in the living room) What is cooptation? When a product is adapted and somewhat transformed from a subculture into a culture (hip hop music, organic foods) What is art product? An object we admire strictly for its beauty or the emotional reaction it inspires (sculpture) What is craft product? An object we admire because of the beauty with 8 | P a g e which it performs a function (iphone) What is a creative subsystem? Generates new symbols and products What is a managerial subsystem? Selects, makes tangible, produces, and manages the sidtribution What is a communication subsystem? Gives meaning to new products and provides it with a set of symbolic attributes What are cultural gatekeepers? Tastemakers who decide which products, trends, and ideas make it through the funnel What is reality engineering? Marketers appropriate elements of popular culture and use them as promotional vehicles (ex: distressed jeans, product placement, mall scent) What is a myth? A story that contains symbolic elements that represent a cultures ideals What is a ritual? a set of multiple symbolic behaviors that occurs in a fixed sequence and is repeated periodically What is sacred consumption? Occurs when we set apart objects from everyday normal activities and treat them with respect and awe What is profane consumption? Describes objects and events that are ordinary or everyday that don’t share the specialness of sacred ones What is sacralization? When everyday objects or things become sacred What is objectification? When we attribute sacred qualities to mundane items What is creolization? When foreign influences integrate with local meanings, creating sometimes off permutations of the original culture symbols What is an etic perspective? Focuses on commonalities across cultures 9 | P a g e What is an emic perspective? Stressing variations across cultures and the belief that each culture is unique, with its own value systems, conventions, and regulations What is Hofstede’s Dimension of National Culture? an instrument that measures cross cultural values by scoring a country on independent dimensions: power distance, individualism, masculinity, uncertainty avoidance, long term orientation, and indulgence vs. restraint So, what are the key concepts we covered in this chapter? 1. A culture is a society’s personality; it shapes our identities as individuals. 2. Our deeply held cultural values dictate the types of products and services we seek out or avoid. 3. We distinguish between high culture and low culture. 4. Many modern marketers are reality engineers. 5. Myths are stories that express a culture’s values, and in modern times marketing messages convey these values. 6. Many of our consumption activities including holiday observances, grooming, and gift giving are rituals. 7. We describe products as either sacred or profane. 8. Products that succeed in one culture may fail in another if marketers fail to understand the differences among consumers in each place. 9. Western culture has a huge impact around the world, although people in other countries don’t necessarily ascribe the same meanings to products as we do. 10 | P a g e MKT 4413 Consumer Behavior Dr. Breazeale Chapter 4: Consumer and Social Well-Being What is business ethics? the rules of conduct that guide actions in the marketplace; the standards against which people judge what is right and wrong What is consumerspace? The environment in which individuals dictate to companies the types of products they want and how, when, and where (if at all) they want to learn about those products What is materialism? The importance that people place on worldly possessions What is consumerism? A modern movement for the protection of the consumer against useless, inferior, or dangerous products, misleading advertising, and unfair pricing What is Transformative Consumer Research (TCR)? A perspective that promotes research projects with goals of helping people or bringing about social change; this sees consumers as collaborators in research rather than as a “phenomenon” upon which to do research What is social marketing? Strategies such as those that marketers normally use to promote for-profit products that are instead used to encourage positive behaviors or discourage negative behaviors What is cause marketing? A strategy that aligns marketers with a particular cause to generate business while also providing social benefits What is Corporate Social Responsibility (CSR)? Processes that encourage an organization to make a positive impact on its various stockholders in the community, including consumers, employees, and the environment Data Privacy and Identity Theft: identity theft occurs when someone steals your personal information and uses it without your permission 11 | P a g e Market Access: the ability of consumers to find and purchase goods and services. This is an issue for people with disabilities, people who live in some rural areas where grocery stores or internet access are not readily accessible, or people who are illiterate What is media literacy? Refers to a consumer’s ability to access, analyze, valuate, and communicate information in a variety of forms, including print and non-print messages Sustainability and Environmental Stewardship: What is sustainability? based on a simple principle, everything that we need for our survival and well-being depends either directly or indirectly on our environment What is green marketing? Strategy that involves the development and promotion of environmentally friendly products – stressing that attribute when the manufacturer communicates with consumers What is greenwashing? When marketers make false or exaggerated claims about how environmentally friendly their products are What are some aspects of the dark side of consumer behavior? Consumer terrorism, addictive consumption, technology addiction, compulsive consumption, exploited consumers, illegal consumption So, What are the key concepts we covered in this chapter? 1. Ethical business is good business. 2. Marketers have an obligation to provide safe and functional products as part of their business activities. 3. Consumer behavior impacts directly on major public policy issues that confront our society. 4. Consumer behavior can be harmful to individuals and to society.


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