Arkansas Marketing Unit 5 – Consumer Behavior

Competition
a term that encompasses the notion of individuals and firms striving for a greater share of a market to sell or buy
Consumer Behavior
the study of consumers and how they make decisions
Demographics
the descriptive characteristics of a market such as age, gender, race, income, and educational level
Discretionary Income
the amount of income left after paying basic living expenses and taxes
Disposable Income
amount of income left after paying taxes, available for saving and spending
Emotional Motives
the forces of love, affection, guilt, fear, or passion that compel consumers to buy
Geographic Segmentation
dividing consumers into markets based on where they live
Market Segmentation
a way of analyzing a market by specific characteristics in order to create a target market
Mass Marketing
directs a company’s marketing mix at a large and heterogeneous group of consumers
Monopoly
the type of market in which there is only one supplier offering a unique product
Needs
anything you require to live
Non-price Competition
de-emphasizes price by developing a unique offering that meets an important customer nneed
Price Competition
rivalry among businesses on the basis of price and value
Psychographics
people’s interests and values
Rational Motives
the reasons to buy based on facts or logic
Target Market
group of customers with very similar needs to whom the company can sell its products
Wants
unfulfilled desires