Download Chapter 1: buying, having, & being (Exam 1) | Comprehensive Questions and Answers Latest U and more Exams Economics in PDF only on Docsity!
Chapter 1: buying, having, & being (Exam 1) | Comprehensive Questions and Answers Latest Updated 2024/2025 With 100% Verified Solutions Buyer behavior - what merely happens at the moment the consumer hands over money or credit card & receives good or service name for consumer behavior in its early development stages(1960/70s) interaction between consumers & producers at the time of purchase Consumer behavior - Study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs & desires Which type of Behavior is an "ongoing process"? - Consumer behavior Why did Consumer Behavior become a separate discipline from Marketing? - Consumers didn't always act/react as marketing theory suggested--they rejected mass-marketed products Consumers want differentiated products that reflect their own special needs, personalities, & life style Exchange - Transaction where 2 or more organizations/people give & receive something of value Integral part of marketing Expanded view of Consumer Behavior - Includes issues that influence consumer before, during, & after a purchase emphasizes ENTIRE consumption process Prepurchase Issues (CB perspective) consumption process - How does a consumer decide that he/she needs a product?
What are the best sources of info to learn more about alternative choices? Prepurchase Issues (Marketer perspective) consumption process - How are consumer attitudes toward products formed and/or changed? What cues do consumers use to infer which products are superior to others? Purchase Issues (CB perspective) consumption process - Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer? Purchase Issues (Marketers perspect) consumption process - How do situational factors (time pressure/store displays) affect the consumer's purchase decision? Postpurchase Issues (CB perspective) consumption process - Does product provide pleasure or perform intended function? How is product eventually disposed of, & what are the environmental consequences of this act? Postpurchase Issues (Marketers prsptv) consumption process - What determines whether consumer will be satisfied w/ product & whether they'll buy it again? Does consumer tell others about product experiences & influence their purchase decision? Consumer - Identifies a need/desire, makes a purchase, & then disposes of the product during 3 stages in consumption process *may be organizations or groups
Market Segmentation process - Identifies groups of consumers who are similar in 1 or more ways Devises strategies that appeal to 1 or more groups Companies can define Market Segments by - Identifying their most loyal, core customers (heavy users) Heavy Users - a company's most loyal, core customers 80/20 Rule - Used by marketers as a rule of thumb 20% of users account for 80% of sales Consumers are segmented by: - demographics psychographics community(comsumption, cultural/subcultural membership) Relationship marketing Database marketing Demographics - statistics that measure observable aspects of a population Descriptive characteristics of a population: age gender family structure social class/income(redneck bank example) race/ethnicity geography age distribution
birth rate Psychographics - aspects of a consumer's lifestyle & personality Community - heavily influences consumer behavior consumption cultural/subcultural sorority Consumption Communities - Online Web Groups Members share opinions & product recommendations to use or avoid particular brands Forms bond w/ group members Pressure to buy for group approval Strongly influences purchase decisions MORE influential than what we see on commercials, magazines, billboards Cultural/Subcultural membership - shapes consumer values & beliefs In a large society, people share values/strongly held beliefs about way world should function EX: Hispanics, teens, Midwesterners, Lady GaGa's "little monsters" Marketing Segmentation Strategies - targeting a brand only to specific groups of consumers who share well-defined & relevant characteristics
both a product of & an inspiration for marketers a fundamental premise of (the Modern field of) Consumer Behavior - People often buy products not for what they do, but for what they mean Chooses brand that has an image or personality consistent with their underlying needs Role Theory - Sociological perspective--much of CB resembles actions in a play consumers often buy products for what it means NOT for what it does Evaluative criteria used in 1 role may be quite different from other roles Marketers provide each "actor" with props needed to play all varied roles Brand Personality - image created by brand's advertising, packaging, branding, & other marketing strategies Brand Loyalty - When product/service succeeds in satisfying our specific needs/desires = Repeat purchasing decision(reward) Reflects conscious decision to continue buying same brand bond b/w product & consumer, difficult for competitors to break Personality dimensions to differentiate Brands (Aaker's) - Sincere Exciting Competent Sophisticated Rugged Sincere brand personality - domestic honest
genuine family-oriented EX: Honda, wrangler jeans "genuine" Exciting brand personality - daring spirited imaginative up-to-date/trendy young unique EX: Range Rover (Mercedes?) mountain dew "do the dew!" Competent brand personality - reliable responsible dependable efficient intelligent/technical successful/confident EX: Toyota, Maytag "depend on us" Sophisticated brand personality - glamorous charming romantic upper class EX: Porsch, Cartier jewelry "brillance, elegance, exuberance" Rugged brand personality - tough sturdy outdoorsy
Want - a specific manifestation of a need that personal & cultural factors determine 1 way that society has taught us that the need can be satisfied Utilitarian Need - a desire to achieve some functional or practical benefit *emphasizes objective, tangible attributes of products *we need to replensih products when we run out of them EX: person loads up on green veggies for nutritional reasons EX: miles per gallon in car, durability of pair of jeans Hedonic Needs - an experimental need involving emotional responses or fantasies *subjective & experimental we might look to a product to meet our needs for excitement, self-confidence, or fantasy-to escape mundane routine aspects of life EX: luxury brand's promise of user pleasure Productivity orientation - refers to a continual striving to use time constructively *trying new things to check off bucket list of experiences want to achieve before moving on to others *motivated to purchase product w/ both types of benefits (Utilitarian & Hedonic) EX: buys mink coat for luxury image & to keep warm Consumer Needs classification - Affiliation Power Uniqueness Need - a basic biological motive Creates tension for the consumer & they attempt to reduce or elminate it Need for Affiliation - to be in the company of other people
Relevant to products & services for people in groups EX: team sports, sororities, frequenting bars, hanging out at shopping malls Need for Power - to control one's environment Products/services allow feeling of mastery over our surroundings EX: "hopped up" muscle cars, loud boom boxes(impose musical taste on others), luxury resorts promising response to every whim of pampered guests Need for Uniqueness - to assert one's individual identity Products that pledge to bring out our distinctive qualities EX: Cachet perfume claims to be "as individual as you are" Maslow's Hierarchy of Needs - Used to understand consumer motivations Physiological Safety Belongingness Ego Self-Actualization *fixed order of development-must attain certain level before activating a need for the next *specifies types of product benefits people might look for depending on stage of mental/spiritual development or economic situation *progresses up until dominant motivation is ultimate goals (justice/beauty) Physiological needs - water, sleep, food Products: medicine, staple items, generics EX: Quaker oat bran "It's the right thing to do" Mcdonalds ad of wined up business man "wake up with a premium roast coffee" *satisfied 1st need for Safety - security, shelter, protection
Travel to remote countries in a day rather than weeks Concentration in urban centers, population growth in developing countries, increasing demands for modernization *internet & word of mouth EX: etsy Internet - backbone of our society Widespread access to devices (personal computers, digital video & audio recorders, webcams, smartphones) ensures consumers of any age in virtually any part of world can create & share content *easy for consumers around world to exchange info about experiences with products/services, music, restaurants, movies *Impact continues to expand as more people around the world log in the Digital Revolution - one of the most significant influences on consumer behavior Impact will continue to expand as more people around world log in *texting, tweeting, pinning accepted daily part of life Electronic marketing - breaks down barriers of time & location = increased convenience Increased use of handheld/wireless devices make info available away from computers whether at home or around globe *e-consumers are not limited to shopping only their local retail outlets EX: shop 24/7 without leaving house, read newspaper without going outside for copy, see tomorrows weather without waiting for 6pm news B2C e-commerce - businesses selling to consumers not all about this anymore C2C e-commerce - consumers selling to consumers Revolution created by the cyberspace explosion
Virtual Brand Communities - group of thousands of people from all over world united/brought together by a shared passion/interest Now not limited to local communities when looking for friends or fellow fans of wine/hip- hop/skateboarding *expands consumption communities beyond local availability EX: world of warcraft, Amazon product reviews, RateMyProfessor Digital Native - consumers who grew up "wired" in a highly networked, always-on world where digital technology always existed Horizontal Revolution - info doesn't just flow from big companies/governments down to people info flows across people as well We can each communicate with huge #s of people by a click on a keypad characterized in part by prevalence of social media Social Media - online means of communication, conveyance, collaboration, & cultivation among interconnected & interdependent networks of people, communities, & organizations enhanced by technological capabilities & mobility *made possible by internet & web 2. *influence expands everyday as more people join online communities *enable culture of participation EX: facebook, twitter, pinterest, youtube, LinkedIn Social Media/Social Network stats - -If you were paid $1 every time article is posted on Wikipedia you'd earn $156.23/hr -80% of companies use LinkedIn as their primary recruiting tool -More than 1.5 billion pieces of content are shared on Facebook daily
EX: sorority pattern of how preferences spread thru a social group Macroeconomics - consumers relations with the marketplace EX: effects of fashion mags price & expense of items advertised during high unemployment periods Semiotics/Literary Criticism - verbal & visual communication of meaning EX: ways in which underlying messages communicated by models & ads are interpreted Demography - measurable characteristics of a population EX: effects of age, income, & marital status of a mags readers History - societal changes over time EX: ways our culture's depictions of "femininity" in mags have changed over time Cultural Anthropology - society's beliefs & practices EX: ways fashions & models in mags affect readers definition of masculine vs feminine behavior (role of working women, sexual taboos) Micro CB (individual focus) l l l l l v Macro CB (social focus) - experimental psych clinical psych developmental psych human ecology
microeconomics social psych sociology macroeconomics semiotics/literary criticism demography history cultural anthro the focus of consumer research - still a debate Applied: improves effectiveness of marketing practices Academic: understanding consumption for its own sake has encouraged expansion to embrace social problems Paradigm - the fundamental assumptions(set of beliefs) researchers make about WHAT they're studying & HOW to study it a general way to classify consumer research shift may be underway -- positivism vs interpretivism perspectives of how/what we should understand about CB Positivism approach (Modernism) - currently dominant paradigm Human reason is supreme / consumer is rational decision maker a single, objective truth discoverable by science Encourages us to: stress function of objects, celebrate technology, & regard world as rational/ordered place with clearly defined past-present-future *critics say it puts too much emphasis on material well-being & is governed by an ideology that stresses homogeneous views of a predominantely white male culture EX: we assign value to products to help us create order Academic focus
