Foundation of Marketing – Chapter 5 – Consumer Behavior

consumer behavior
the process involved when individuals or groups select, purchase, use and dispose of products to satisfy their needs and desires
involvement
the relative importance of perceived consequences of the purchase to a consumer (financial risk and social)
perceived risk
the belief that choice of a product has potentially negative consequences (financial, physical, social)
problem recognition
the process that occurs whenever the consumer sees a significant difference between the current state of affairs and some desired state; initiates the decision making process
information search
the process by which a consumer searches for appropriate information to make a reasonable decision
search marketing
marketing strategies that involve the use of internet search engines
search engine marketing
search marketing strategy in which marketers pay for ads for better positioning
behavioral targeting
the marketing practice by which marketers deliver advertisements for products a consumer is looking for by watching what the consumer does online
evaluative criteria
the dimensions consumers use to compare competing product alternatives
heuristics
a mental rule of thumb that leads to a speedy decision by simplifying the process
decision making process
problem recognition; information search; evaluation of alternatives; product choice; postpurchase evaluation
brand loyalty
a pattern of repeat product purchases, accompanied by an underlying positive attitude towards the brand, based on the belief that the brand makes superior products compared to the competition
consumer satisfaction/dissatisfaction
the overall feelings or attitude a person has about a product after purchasing it/accurate expectations
cognitive dissonance
the anxiety or regret a consumer may feel after choosing form among several similar attractive choices
perception
the process by which people select, organize, and interpret information from the outside world
exposure
the extent to which a stimulus is capable of being registered by a person’s senses
interpretation
the process of assigning meaning to a stimulus based on prior associations a person has with it and assumptions he or she makes about it
motivation
an internal state that drives us to satisfy needs by activating goal-oriented behavior
hierarchy of needs
categorizes motives according to five levels of importance (physiological, safety, belonging/social, ego needs/esteem, self-actualization)
behavioral learning theories
theories of learning that focus on how consumer behavior is changed by external stimuli
classical conditioning
the learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on its own, but will cause a similar response over time because of association with the first stimulus
operant conditioning
learning that occurs as a result of rewards and punishments
cognitive learning theory
theory of learning that stresses the importance of internal mental processes and that views people as problem solvers who actively use information from the world around them to master their environment
attitude
an individual’s overall feeling toward an object (affective/feelings, cognitive, behavioral/intentions)
affect
the feeling component of attitiudes; the overall emotional response a person has to a product
cognition
the knowing component of attitudes; the beliefs or knowledge a person has about a product and its important characteristics
personality
the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment
self-concept
an individual’s self-image that is composed of a mixture of beliefs, observations, and feeligns about personal attributes
family life cycle
a means of characterizing consumers within a family structure on the basis of difference stages through which people pass as they grow older
lifestyle
a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences
psychographics
the use of psychological, sociological, and anthropological factors to construct market segments
activities, interests, opinions (AIO)
measures of consumer activities, interests, and opinions used to place consumers into dimensions
sensory marketing
marketing techniques that link distinct sensory experiences such as unique fragrance with a product or service
time poverty
consumers’ belief that they are more pressed for time than ever
subculture
a group within a society whose members share a distinctive set of beliefs, characteristics, or common experiences
microcultures
groups of consumers who identify with a specific activity or art form
consumerism
a social movement that attempts to protect consumers from harmful business practices
environmentalism
a broad philosophy and social movement that seeks conservation and improvement of the natural environment
Kyoto Protocol
a global agreement among countries that aims at reducing greenhouse gases that create climate change
environmental stewardship
a position taken by an organization to protect or enhance the natural environment as it conducts its business activities
social class
the overall rank or social standing of groups of people within a society according to the value assigned to factors such as family background, education, occupation, and income
status symbols
visible markers that provide a way for people to flaunt their membership in higher social classes
mass-class
the hundreds of millions of global consumers who now enjoy a level of buying power sufficient enough to let the afford high quality products except for very big ticket items
reference group
an actual or imaginary individual or group that has a significant effect on an individual’s evaluations, aspirations, or behavior
opinion leader
a person who is frequently able to influence others’ attitudes or behaviors by virtue of his or her active interest and expertise in one or more product categories
observational learning
learning by watching actions of others and noting what happens to them as a result of their actions
evoked set
the spread of things that come to mind when considering alternatives
multiattribute model of attitudes
Attitude = Sum of beliefs towards (performance on attribute x importance attached to attribute); and example of information integration.
influencers on consumer decision makgin
social (subculture, trends), internal (personality, age, lifestyle etc), situational (scent, store)