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Consumer Behavior

consumer behavior

the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

consumer behavior

Marketing strategies and tactics are based on explicit or implicit beliefs about what?

implicit decisions

Decisions based on explicit assumptions and sound theory and research are more likely to be successful than are decisions based solely on

consumer behavior

Knowledge of _______ can be an important competitive advantage and can greatly reduce the odds of bad decisions and market failures.

customer value

is the difference between all the benefits derived from a total product and all the costs of acquiring those benefits.

Providing superior customer value

requires the organization to do a better job of anticipating and reacting to customer needs than the competition does.

Using consumer research as the foundation of marketing management and studying consumer behavior

How can firms provide superior customer value?

Design marketing mix, segmenting the market place, positioning and differentiating products and developing market research studies

What ways can you use consumer research as the foundation of marketing management?

benefits of the problems they solve or the opportunities they offer

Consumers make purchases not for products or services but for what?

Various regulatory bodies

This exists to develop, interpret, and/or implement policies designed to protect and aid consumer.

Consumer behavior

Effective regulation of many marketing practices requires extensive knowledge of what?

Social marketing

is the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole.

consumer behavior

commercial marketing strategy, successful social marketing strategy requires a sound understanding of

decision making perspective

Consumers are rational decision makers
Consumer perceive a problem and proceed to solve it

experiential perspective

Consumers consume to have fun, create fantasies, and obtain emotional arousal

Behavioral Perspective

Consumption results from the direct influence of behavior by environmental forces (ie. sales promotions, economic pressures, culture)

pitfalls to avoid when studying consumer behavior

-"Me" mentality
-Single-minded explanation
-Application only

theory

This allows us to make predictions about factual events based on our understanding of underlying principles.

1. Overarching framework to explain behavior
2. Underlying principles explain observations
3. Hypotheses

Theory provides guidance through...

market segment

a portion of a larger market whose needs differ somewhat from the larger market

Four steps to segmentation

-Identify product-related need sets
-Group customers with similar need sets
-Describe each group
-Select an attractive segment(s) to serve
are four steps to what?

assess segment viability.

-Of sufficient size
-Measurable
-Differentiated
-Reachable
are four factors used to what?

segmentation strategies

-Mass marketing
-Concentrated marketing
-Differentiated marketing
Are what type of strategies?

mass marketing

offering the same product to the entire consumer population

concentrated marketing

selecting one market segment, even though the product may also appeal to others

differentiated marketing

selecting two or more different segments

product positioning

the placement of a product, service, outlet, etc. in the mind of the consumer is called?

perceived benefits
image
attributes
against competitors or a combination of two or more

What are five ways used to position products, services, outlets, etc.

repositioning

shifting position in the consumer's mind through changes in important product, price, distribution, and promotional and/or personal selling benefits.

outcomes of the firm

Product positioning
Sales
Customer Satisfaction
are all outcomes of what?

outcomes of the individual

Need Satisfaction
Injurious Consumption
are all outcomes of what?

outcomes of society

Economic
Physical Environment
Social Welfare
are all outcomes of what?

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