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MKT 310 Consumer Behavior

by: Marissa Sarlls

MKT 310 Consumer Behavior MKT 310

Marketplace > University of Kentucky > Marketing > MKT 310 > MKT 310 Consumer Behavior
Marissa Sarlls
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About this Document

Book notes
Consumer Behavior
Dr. Dan Sheehan
Class Notes
Marketing, Consumer, behavior




Popular in Consumer Behavior

Popular in Marketing

This 4 page Class Notes was uploaded by Marissa Sarlls on Sunday May 8, 2016. The Class Notes belongs to MKT 310 at University of Kentucky taught by Dr. Dan Sheehan in Spring 2016. Since its upload, it has received 32 views. For similar materials see Consumer Behavior in Marketing at University of Kentucky.


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Date Created: 05/08/16
MKT 310 Chapter 1: Buying, Having, Being: An Introduction to Consumer Behavior Introduction:  Demographics—the observable measurements of a population’s characteristics, such as birthrate, age distribution, and income o US Census Bureau is a major source of demographic data on US families  Consumption communities—web groups where members share views and product recommendations online o There is pressure on each group member to buy things that will meet with the group’s approval  Market segmentation strategies—targeting a brand only to specific groups of consumers who share well-define and relevant characteristics, even if it means consumers not in this group aren’t attracted to it  People often purchase a product because they like its image or because they feel its “personality” somehow corresponds with their own… some believe the product’s qualities will “magically” rub off on them o Brand loyalty, which is a bond between product and consumer Consumer Behavior Is An Ongoing Process (Objective 1)  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 and desires (buyer behavior)  Exchange—a transaction in which two or more organizations or people give and receive something of value o Emphasizes the entire consumption process, which includes the issues that influence the consumer before, during, and after a purchase  Consumer—a person who identifies a need or desire, makes a purchase, and then disposes of the product during the three stages of the consumption process (See Figure 1.1 pg. 7) o A person can act as an influencer by recommending certain products without actually buying or using them Consumers Impact on Marketing Strategy (Objective 2)  Marketers have to understand the wants and needs of different consumer segments  Heavy users—a name companies use to identify their customers who consumer their products in large volumes o 80/20 rule—20% of users account for 80% of sales  Marketers use the data to locate and predict the size of markets for many products  Demographics: o Agesometimes marketers develop a product to attract one age group and broaden later on (ex. Red Bull) o Gender we make gender distinctions at a very early age  Ex: all-female marketing team at P&G “chicks in charge” made toothpaste for females o Family structure a person’s family/marital status…spending priorities o Social class & incomepeople who belong to the same social class are approximately equal in terms of income and social standing in the community so they socialize together  The distribution of wealth is important bc it determines which groups have the greatest buying power and market potential o Race & ethnicityour society is becoming increasingly multicultural, thus new opportunities develop to deliver specialized products  African Americans, Hispanic Americans, and Asian Americans are the 3 fastest growing ethnic groups in the US  McDonald’s regards ethnic customers as trendsetters o Geographymarketers tailor offerings according to different areas o Lifestyles how we feel about ourselves, things we value, hobbies  Relationship marketing—the strategic perspective that stresses the long- term, human side of buyer-seller interactions  Database marketing—tracks specific consumers’ buying habits very closely and crafts products and messages tailored precisely to people’s wants and needs based on this information o EX: Walmart stocks up on Pop-tarts and beer when a big storm approaches o Big data—the collection and analysis of extremely large data sets o In a single day, consumers create 2.5 quintillion bytes of data o The volume of information increases, as does its velocity o EX: Macy’s tracked the parking lot on Black Friday to predict sales Marketing’s Impact on Consumers (Objective 3)  Our choices as consumers relate in powerful ways to the rest of our lives o Popular culture is marketing is popular culture  Popular culture—the music, movies, sports, books, celebrities, and other forms of entertainment that the mass market produces and consumes o Pillsbury Doughboy is an example of an effective spokescharacter for a product  Role theory—the perspective that much of consumer behavior resembles actions in a play…as in a play, each consumer has lines, props, and costumes necessary to put on a good performance o Marketers must provide each of us “actors” with the props we need to play all of our varied roles  Our relationships with brands evolve over time…types: o Self-concept attachment—the product helps to establish the user’s identity o Nostalgic attachment—the product serves as a link with a past self o Interdependence—the product is a part of the user’s daily routine o Love—the product elicits emotional bonds of warmth, passion, or other strong emotion What Does It Mean to Consume? (Objective 4)  Our motivations to consume are complex and varied  People often buy products not for what they do but for what they mean (Ex: Peeps marshmallows)  People choose between these archrivals (or other competitors) largely due to their brand images—meanings that have been carefully crafted  Motivation—refers to the processes that lead people to behave as they do. o It occurs when a need is aroused that the consumer wishes to satisfy. The need creates a state of tension that drives the consumer to attempt to reduce or eliminate it o Utilitarian need—a desire to achieve some functional or practical benefit, as when a person loads up on green veggies for nutritional reasons  Emphasize the objective, tangible attributes of products o Hedonic need—an experiential need, involving emotional responses or fantasies  Subjective and experiential o Goal—the desired end state of the consumer o Drive—the desire to satisfy a biological need in order to reduce physiological arousal  Drive theory—concept that focuses on biological needs that produce unpleasant states of arousal (e.g. your stomach grumbles during morning class)  If a behavior reduces the drive, we naturally tend to repeat it o One’s degree of motivation depends on the distance between one’s present state and the goal o Most current explanations of motivation focus on cognitive factors rather than biological ones to understand what motivated behavior o Expectancy theory—suggests that expectations of achieving desirable outcomes —positive incentives—rather than being pushed from within motivate our behavior  Want—a specific manifestation of a need that personal and cultural factors determine  We describe motivation in terms of its strength, or the pull it exerts on the consumer; and its direction, or the particular way the consumer attempts to reduce it  Productivity orientation—a continual striving to use time constructively.  How we classify consumer needs: o Psychologist Henry Murray developed a set of 20 psychogenic needs that result in a specific behavrio  Autonomy—being independent  Defendance—defending the self against criticism  Play—engaging in pleasurable activities o Individuals with high need for achievement value personal accomplishment (e.g. women high in achievement choose business clothes)  Need for affiliation—to be in the company of other people (groups)  Need for power—to control one’s environment  Need for uniqueness—to asset one’s individual identity o Hierarchy of Needs—a framework that specifies different levels of motives that depends upon the consumer’s personal situation; helps understand personal growth & spiritual “peak experiences”  Implies that the order of development is fixed—that is, we must attain a certain level before we can activate the next; it is culture-bound  Figure 1.2 pg 22Physiological, safety, belongingness (social), ego needs (esteem), self-actualization The Global “Always On” Consumer (Objective 5)  Technology and culture create a new “always on” consumer; we have instant access to so much more  Megacity—a metropolitan area with a total population of more than 10 million people (20 in the world)  Electronic marketing makes our lives a lot easier o B2C e-commerce—business selling to consumers through electronic marketing o C2C e-commerce—consumer-to-consumer activity through Internet; virtual brand communities  Virtual worlds—immersive 3-D virtual environments such as Second Life  Digital native—young people who have grown up with computers and mobile technology; multitaskers with cell phones, music downloads, and instant messaging on the internet; people who are comfortable communicating online and by text and I'm rather than by voice  Horizontal revolution—a fundamental change in how consumers communicate via social media, whereby information doesn’t just flow from big companies and governments; information flows across people as well  Social media—the set of technologies that enable users to create content and share it with a large number of others  Synchronous interactions—those that occur in real time, like when you text back-and- forth)  Asynchronous interactions—those that don’t require all participants to respond immediately, like when you text a friend and get an answer the next day)  Culture of participation—the driving philosophy behind social media that includes a belief in democracy; the ability to freely interact with other people, companies, and organizations; open access to venues that allow users to share content from simple comments to reviews, ratings, photos, stories, and more; and the power to build on the content of others from your own unique point of view Consumer Behavior as a Field of Study (Objective 6)  Many different types of specialists study consumer behavior but only more recent  Consumer researchers are everywhere o Ex: JC Penny sent staffers to hang with 50 women to see how they behave  Consumer behavior is an interdisciplinary field o Depending on the training and interests of the researchers, they will approach the same consumer phenomenon in different ways at different levels o It focuses on how marketers influence consumers and how consumers use the products and services marketers sell o Micro (individual consumer) vs. Macro (social focus; the consumer as a member of groups or of the larger society) Consumer behavior (p. 28) pyramid  Micro experimental psychology, clinical psychology, etc.  Macrocultural anthropology, history, demography, etc. Two Perspectives on Consumer Research (Objective 7)  There are differing perspectives regarding how and what we should understand about consumer behavior  Researchers who study consumer behavior do so both for academic purposes and to inform marketing organizations about practical decisions  One general way we classify consumer research is in terms of the fundamental assumptions the researchers make about what they study and how to study it  Paradigm—a set of beliefs that guide our understanding of the world o Paradigm shift—occurs when a competing paradigm challenges the dominant set of assumptions o Positivism—sometimes called modernism; the basic set of assumptions underlying the dominant paradigm at this point in time  A research perspective that relies on principles of the “scientific method” and assumes that a single reality exists; events in the world can be objectively measured and the causes of behavior can be identified, manipulated, and predicted  Encourages us to stress the function of objects, to celebrate technology, and to regard the world as a rational, ordered place with a clearly defined past, present, and future o Interpretivism—or postmodernism; questions these assumptions  Stresses the importance of symbolic, subjective experience and the idea that meaning is in the mind of the person rather than existing “out there” in the objective world  Pastiche—[the world is] a mixture of images and ideas  Focuses on regarding consumption as offering a set of diverse experiences o Table 1.2 pg. 30 o


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