Consumer Behavior (Kent State University)

1985 AMA Definition Of Marketing
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services, to create exchange values that satisfy individual and organizational objectives.
Marketing Concept
Focusing on consumer needs
Positioning
The place a brand occupies in the mind of the consumer relative to other product offerings in the category primarily depends on the individual consumer’s perception of the benefits that flow from the attributes of the product.
Consumer Sovereignty
The individual consumer is the ultimate authority on what is best for him or herself.
Social Market Concept
An approach to decision making that focuses on the societal consequences of satisfying individual consumer needs for private for profit businesses.
Social Market
Programs launched by government and private nonprofit organizations to discourage deleterious consumption behavior (cigarette smoking, excessive drinking, abuse of illicit drugs, unsafe sexual practices) or encourage beneficial consumption behavior (healthy lifestyles, nutrition, exercise, etc.)
Strategic Marketing Planning
The core consumer needs the organization satisfies.
Consumer Product
Every want-satisfying attribute a consumer perceives in making an exchange, including psychological as well as physical benefits.
Perception
see, hear, touch, taste, smell, or sense internally, something, event, or relation, and to organize, interpret, and derive meaning from the experience.
CONVENIENCE GOODS: MARKETING STRATEGY
Goods the consumer buys frequently, and with a minimum of effort, like staples and impulse goods

ex: Milk, Toothpaste, Bread, candy bar

SHOPPING GOODS: MARKETING STRATEGY
Goods that are purchased less frequently and the consumer makes comparisons: Homogeneous (gas) and Heterogeneous (car)
(complementary goods)
SPECIALTY GOODS: MARKETING STRATEGY
goods that have unique characteristics and/or brand identification: No reasonable substitutes exist
The 4P’s of the marketing mix
Product
Price
Promotion
Place or Distribution
Market Segmentation
The process of dividing large heterogeneous markets into smaller, homogeneous subsets of people or businesses with similar needs and/or differing responsiveness to marketing mix offerings.
Target Market
A homogeneous (same) segment of the market to which a marketer directs a specific marketing program.

, a specific group of consumers that have similar wants and needs

Target Audience
includes the target market, but also includes groups of people other than typical prospects, such as people who influence the purchase of the product by a typical prospect.
Post Hoc Ergo Popter Hoc
(“After this, therefore because of this”). Attempts to prove that because a second event followed a first event, the second event was the result of the first.
DEMOGRAPHIC SEGMENTATION VARIABLES
Based on a population’s statistical characteristics such as sex, age, ethnicity, education, occupation, income, or other quantifiable factors
GEOGRAPHIC SEGMENTATION VARIABLES
segmenting markets by region of a country or the world, market size, market density, or climate
PSYCHOGRAPHIC SEGMENTATION VARIABLES
Dividing a market into different segments based on social class, lifestyle, or personality characteristics
BEHAVIORAL SEGMENTATION VARIABLES
Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product
Promotion
Advertising
Sales
Publicity and Public Relations
Personal selling
Economics
A social science that studies the allocation of society’s scarce resources among alternative uses for the satisfaction of human needs.
Perfect Competition
A market structure in which a large number of firms all produce the same product
Factors of Production
Land, Labor, Capital, Entrepreneurship
MARKET DEMAND: ECONOMICS
Demand is the entire schedule of the various quantities of a particular commodity that consumers are willing and able to buy at given prices, holding all others things equal (cetaris paribus)
DETERMINANTS OF DEMAND
Price of the product
Income
Preferences
Prices of closely related goods (substitutes and complements)
Behavioral Postulate
A consumer who makes consistent choices
Transitive Preference Ordering
Mathematical property of the consumer’s preference ordering
If A>B and B>C, then A>C.
MARKET SUPPLY: ECONOMICS
Supply is the entire schedule of the various quantities of a particular
commodity that a firm is willing and able to produce at given prices,
holding all other things equal (cetaris paribus).
fear appeal
Attempting to change people’s behaviors by use of a message that induces fear.
PRICE ELASTICITY OF DEMAND
Elasticity =
Relative change in the quantity /
Relative change in price
Ceteris Paribus
“All other things equal”
externalities
A divergence between private and social costs and benefits results in market failure
MARKET DEMAND: ECONOMICS
is the entire schedule of the various quantities of a particular commodity that consumers are willing and able to buy at given prices, holding all others things equal (cetaris paribus)
MARKET DEMAND: MARKETING
is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program.
Pareto Optimality
In the absence of externalities, when the economy is in general equilibrium, no consumer can be made better off without making another consumer worse off.
social class
an individual’s relative position in society
social status
An individual’s relative position within a social class
SUBJECTIVE MEASURES
Measures based on individual perceptions
REPUTATIONAL MEASURES
perception of others
single variable indexes
Occupation is the best single indicator of social status
Primary Labor Market
Steady, stable and preferably rising source of income, and the increasing opportunity for upward social mobility
Secondary Labor Market
Inferior social status, insecure employment, often hard and unpleasant working conditions, typically but not always low-paying; e.g., seasonal construction jobs.
pragmatism
Grant an idea or belief to be true, what concrete difference will it’s being true make in anyone’s actual life?