| Term | Definition |
|---|
| Consumer Behavior | behavior that consumers display: in searching for, purchasing, using, evaluating and disposing of, products and services that they expect will satisfy their needs. |
| Personal Consumer | The individual who buys goods and services for: his or her own use, household use, a family member or 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/ |
| Developing the Marketing Concept | Production, Product and Selling concepts develop |
| Production Concept | Assumes that consumers are interested primarily in product availability at low prices; |
| Production Concept | Marketing objectives: cheap, efficient production, intensive distribution, market expansion |
| Product Concept | The idea that consumers will buy the product that offers them the highest quality, best performance and most features. |
| Marketing Myopia | A focus on the product rather than consumer needs it appears to satisfy. Marketing objectives: continuous quality improvement and addition of new features without regard to consumer preference; not listening to your consumers. |
| Customer Value | the ratio between customer's perceived benefits (economic, functional and psychological) and the resources (monetary, time, effort, psychological) used to obtain those benefits. |
| Perceived Value | Diners at an exclusive restaurant in NY where a meal with beverages may cost $300pp may expect unique and delicious food, immaculate service, and beautiful decor. |
| Value proposition | Defines how a company's product or service fulfills customers expectations..Lexus claims to deliver to its buyers quality, zero defects in manufacturing and superior, personal post-purchase service. |
| Customer satisfaction | individual's perception of the performance of the product or service in relation to his or her expectations. |
| Customer retention | Loyal customers buy more products, less price sensitive (willing to pay more), will defend your product, pay less attention to competitor advertising, spread positive WOM |
| Customer profitability-focused marketing | Tracks costs and revenues of individual customers and then categorizes them into tiers based on consumption behaviors that are specific to the company's offerings. |
| Customer pyramid | Customers are grouped into four tiers: platinum-loyal customers; gold-heavy user, but price sensitive; iron-no special treatment; lead-cost company $, may spread (-) WOM |
| Needs | Essence of marketing concept: marketers do not create them, they make consumers aware of them |
| Motivation | Driving force w/in individuals that impels them to action |
| Innate Needs | Food, water, air, shelter, sex |
| Acquired Needs | Learned in response to our culture or environment. Secondary needs. |
| Generic goals | General categories of goals that consumers see as a way to fulfill their needs. |
| Product specific goals | Specifically branded products or services that consumers select as their goals. |
| Promotion focus | People interested in their growth and development, have more hopes and aspirations |
| Prevention focus | People interested on safety and security, are more concerned with duties and obligations. |
| Rationality | Implies that consumers select goals based on totally objective criteria such as size, weight, price, or mpg |
| Emotional | motives imply the selection of goals according to personal or subjective criteria |
| Hierarchy of needs | No ___ is every completely satisfied--the lowest level of ____ remains largely unsatisfied; new and higher _____ emerge when one ____ is "fairly well" satisfied |
| Personality | Inner psychological characteristics that both determine and reflect how a person responds to his or her environment. |
| Personality | May be similar amongst individuals; is consistent and enduring; however it can change due to abrupt event, gradual maturing process |
| Freudian theory | Id, Superego & ego: unconscious needs or drives are at the heart of human motivation |
| Neo-Freudian theory | social relationships are fundamental to the formation and development of personality |
| Trait theory | quantitative approach to personality as a set of psychological traits |
| Id | warehouse of primitive or instinctual needs for which individuals seeks immediate satisfaction |
| Superego | Individuals internal expression of society's moral and ethical codes of conduct |
| Ego | Individuals conscious control that balances the demands of the id and superego |
| Neo-Freudian theory | we seek goals to overcome feelings of inferiority and we continually attempt to establish relationships with others to reduce tensions |
| Innovativeness | The degree to which consumers are receptive to new products, services or practices |
| Dogmatism | Degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs |
| Social character-Inner directed | One who relies on own values when evaluating products; innovators |
| Social character-other directed | One who looks to others; less likely to be innovators |
| Need for uniqueness | Consumers who avoid appearing to conform to expectations or standards of others |
| Optimum stimulation level (OSL) | Personality trait that measures the level or amount of novelty or complexity that individuals seek in their personal experiences. |
| Variety-novelty seeking | Measures a consumers degree of variety seeking i.e exploratory purchase behavior, use innovativeness, vicarious exploration |
| Trait Theory | Personality theory focusing on psychological characteristics; any distinguishing, relatively enduring way in which one individual differs from annother |
| Cognitive Personality Factors | Need for cognition (NC) and visualizers vs verbalizers |
| Need for cognition | person's craving for enjoyment of thinking; person more likely to respond to ads rich in product info |
| Consumer materialism | possessions are essential for some personalities |
| Fixated consumption behavior | consumers obsessed with certain products or categories of products; frequently display them share them with others |
| compulsive consumption behavior | "addicted" or "out of control" consumers; who purchase to make themselves feel better |
| Brand personality | Traits associated w/ a brand; BMW driven performance, Levi's 501 jeans dependable and rugged etc. |
| Absolute threshold | lowest level at which an individual can experience a sensation; problem of advertising clutter |
| differential threshold | minimal difference that can be detected between two similar stimuli |
| Selective exposure | consumers seek out messages which are pleasant, sympathetic, reassuring |
| Selective attention | heightened awareness when stimuli meet their needs; consumers prefer different messages and mediums |
| Figure and ground | organization of the visual field into objects that stand out from their surroundings |
| Grouping | the perceptual tendency to organize stimuli; helps memory and recall |
| Learning | process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior |
| Learning | a process that changes according to acquired knowledge and actual experience |
| Classical conditioning | a behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone. |
| Applications of classical conditioning | Repetition, stimulus generalization and stimulus discrimination |
| repetition | increases the association between conditioned and unconditioned stimulus; ad ______ becomes annoying |
| stimulus generalization | having the same response to slightly different stimuli; helps "me too" products to succeed; useful in product extensions |
| stimulus discrimination | basis of positioning which looks for unique ways to fill needs |
| instrumental (operant) conditioning | learning based on a trial-and-error process w/ habits forced as the result of positive experience (reinforcement) resulting form certain responses or behaviors |
| cognitive learning theory | the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment |
| retention | info stored; long term memory; episodically: by the order in which it is acquired or semantically according to significant concepts |
| attitude | learned predisposition to behave in a consistently favorable or unfavorable manner w/ respect to a given object |
| Tri-component attitude model | cognition-->affect-->conation |
| Cognitive | knowledge and perceptions that are acquired through direct experience with attitude object and related information from various sources |
| Affective | consumers emotions or feelings about a particular product or brand |
| Conative | Intention to buy; likelihood or tendency that a person will take a certain action or behave in a particular way with regard to the object/product/service |
| attitude-toward object model | attitude is function of the presence and evaluation of product specific beliefs and attributes ; useful to measure attitudes toward brands |
| theory of trying to consume | attitude theory designed to account for many cases where the action or outcome is not certain but instead reflects the consumers attempt to consume or purchase |
| strategies of attitude change | change the basic motivational function |
| strategies of attitude change | associating a product with an admired group or event |
| strategies of attitude change | resolving two conflicting attitudes |
| strategies of attitude change 4 | altering components of the multi-attribute model |
| strategies of attitude change | changing beliefs about competitors brands |
| cognitive dissonance theory | discomfort occurs when a consumer holds conflicting thoughts about a belief or an attitude object; post purchase discomfort |
Combine with other sets
Share on Facebook
Share on MySpace