Professional Documents
Culture Documents
ONE
Consumer
Behavior:
Meeting Changes
and Challenges
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Consumer Behavior
The behavior that consumers display in
searching for, purchasing, using,
evaluating, and disposing of products
and services that they expect will satisfy
their needs.
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Personal Consumer
The individual who buys goods and
services for his or her own use, for
household use, for the use of a family
member, or for a friend.
Organizational Consumer: A business,
government agency, or other institution
(profit or nonprofit) that buys the goods,
services, and/or equipment necessary for
the organization to function.
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Product
Price
Place
Promotion
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Successful Relationships
Customer Value - ratio between customers
perceived benefits and the resources used to
obtain those benefits.
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Customer Profitability-Focused
Marketing
Tracks costs and revenues of
individual consumers
Categorizes them into tiers based on
consumption behavior
A customer pyramid groups customers
into four tiers (Platinum, Gold, Iron, Lead)
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CHAPTER
TWO
The Consumer
Research
Process
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Concept of Consumer
Research
No direct way to look into the Black
Box,
so we make logical inferences by
studying other variables:
- Inductive logic
- from specifics to generalities
- Deductive logic
-from generalities to specifics
IK
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Quantitative Research
Descriptive
Enables marketers to predict consumer
behavior (positivism).
Uses experiments, survey techniques, and
observation.
Findings are descriptive, empirical, and can be
generalized to larger populations.
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Qualitative Research
Consists of depth interviews, focus groups,
metaphor analysis, collage research, and
projective techniques.
Administered by highly trained intervieweranalysts.
Findings tend to be subjective.
Small sample sizes.
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Quantitative Research
Study Purpose
Describe target market
Results for strategic
marketing decisions
Types of Questions
Close-ended
Attitude scales
Data Collection Methods
Observation
Experimentation
Questionnaires
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contd.
Quantitative Research
Sampling Methods
Small
Nonprobability samples
Sampling Methods
Large
Probability samples
Data Analysis
Analyzed by
researchers who
collected data
Look for key words
Subjective
Data Analysis
Coded, tabulated, and
entered into database
Use of statistical
methods
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Secondary Data
Data that have been collected for reasons
other than the specific research project at
hand
Includes internal and external data
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Surveys
Data Collection Methods
Personal interview
Mail
Telephone
Online
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Attitude Scales
Likert scales: easy to prepare and interpret;
simple for consumers to answer
Semantic differential scales: relatively easy
to construct and administer
Behavior intention scales: also easy to
construct and administer
Rank-order scales: subjects rank items in
order of preference in terms of some criteria
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Likert Scale
Please place the number that best indicates how
strongly you agree or disagree with each of the
following statements about shopping online in the
space to the left of the statement.
1
2
3
4
5
=
=
=
=
=
Agree Strongly
Agree
Neither Agree or Disagree
Disagree
Disagree Strongly
Excellent
Neutral
Poor
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Rank-Order Scale
Rank the following computer manufacturers in terms
of hotline help by placing a 1 next to the one who
provides the best telephone help, a 2 next to the
second best, until you have ranked all six.
_____ IBM
_____ Dell
_____ Compaq
_____Hewlett Packard
_____ Gateway
_____ NEC
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Projective Techniques
1. Word Association Techniques
1. Simple
2. Controlled
3. Successive
2. Completion Techniques
1. Sentence
2. Story
Customer Satisfaction
Measurement
Customer Satisfaction Surveys
Gap Analysis of Expectations versus
Experience
Mystery Shoppers
Customer Complaint Analysis
Analysis of Customer Defections
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Non-probability:
-
Convenience sample
Judgment sample
Quota sample
Incremental sample
IK
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CHAPTER
THREE
Market
Segmentation
and Strategic
Targeting
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Market Segmentation
The process of dividing a
potential market into
distinct subsets of
consumers and selecting
one or more segments as
a target market to be
reached with a distinct
marketing mix.
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Phase 1
Market Segmentation
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Segmentation Studies
Discover the needs and wants of
groups of consumers to develop
specialized products to satisfy group
needs
Used to identify the most appropriate
media for advertising
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Geographic
Demographic
Psychological
Psychographic
Sociocultural
Use-Related
Usage-Situation
Benefit Sought
Hybrid
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Current Share
High
High
Low
HiHighs
(stroke)
LowHighs
(chase)
HiLows
(tickle)
LoLows
(starve)
Consumption
Low
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Use-Situation Segmentation
Segmenting on the basis of special occasions
or situations
For example:
Whenever our daughter Jamie gets a raise, we
take her out to dinner
When Im away on business, I try to stay at a
suites hotel
I always buy my wife flowers on Valentines Day
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VALS Framework
Figure 3-7
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Identification
Sufficiency
Stability
Accessibility
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Implementing Segmentation
Strategies
Concentrated Marketing
One segment
Differentiated
Several segments with individual
marketing strategies
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CHAPTER
FOUR
Consumer
Motivation
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Types of Needs
Innate Needs
Physiological, Primary or Biogenic needs:
Positive or Supply needs
Negative or Avoidance needs
Specie maintenance need
Acquired needs
Psychological, Secondary or Psychogenic
Ego defensive needs
Ego bolstering needs
Affectional needs
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Goals
The sought-after results of motivated
behavior
Generic goals are general categories of
goals that consumers see as a way to
fulfill their needs
Product-specific goals are specifically
branded products or services that
consumers select as their goals
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Goal Conflicts
Positive Motivation: A driving force toward some object or
condition Approach Goal (A positive goal toward which
behavior is directed)
Negative Motivation: A driving force away from some object
or condition Avoidance Goal (negative goal from which
behavior is directed away)
Conflicts:
Approach/Approach
Approach/Avoidance
Avoidance/Avoidance
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Goal Adjustments
Substitute Goals
Are used when a consumer cannot attain a
specific goal he/she anticipates will satisfy a
need
The substitute goal will dispel tension
Substitute goals may actually replace the
primary goal over time
Frustration
Failure to achieve a goal may result in
frustration.
Some adapt; others adopt defense mechanisms
to protect their ego.
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Defense Mechanism
Methods by which people mentally
redefine frustrating situations to protect
their self-images and their self-esteem:
- Aggression
- Rationalization
- Regression
- Withdrawal
- Projection
- Daydreaming (Autism)
- Identification
- Repression
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Arousal of Motives
Physiological arousal
Emotional arousal
Cognitive arousal
Environmental arousal
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Cognitive School
Behavior is directed at goal achievement
Needs and past experiences are reasoned,
categorized, and transformed into attitudes and
beliefs
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Table 4.3
Murrays List of Psychogenic Needs
Needs Associated with Inanimate Objects:
Acquisition, Conservancy, Order, Retention, Construction
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A Trio of Needs
Power
individuals desire to control environment
Affiliation
need for friendship, acceptance, and
belonging
Achievement
need for personal accomplishment
closely related to egoistic and selfactualization needs
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CHAPTER
FIVE
Personality and
Consumer
Behavior
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Theories of Personality
Freudian theory
Unconscious needs or drives are at the
heart of human motivation
Trait theory
Quantitative approach to personality as a
set of psychological traits
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Freudian Theory
Id
Superego
Ego
Consumer researchers using Freuds
personality theory see consumer purchases as
a reflection and extension of the consumers
own personality
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Neo-Freudian Personality
Theory
Chapter Five
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Trait Theory
Focus on measurement of personality
in terms of traits
Trait - any distinguishing, relatively
enduring way in which one individual
differs from another
Personality is linked to broad product
categories and NOT specific brands
Chapter Five
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Chapter Five
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Consumer Innovativeness
Personality trait that fosters a
willingness to create and accept
change
Further broken down for hi-tech
products
Global innovativeness
Domain-specific innovativeness
Innovative behavior
Chapter Five
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Chapter Five
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Dogmatism
The degree of rigidity a person displays
toward things unfamiliar and
information contrary to his or her own
established beliefs
Need for Uniqueness: Consumers who
avoid conforming to expectations or
standards of others
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Five
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Social Character
Ranges on a continuum for inner-directedness
to other-directedness
Inner-directedness
rely on own values when evaluating products
Innovators
Other-directedness
look to others
less likely to be innovators
Chapter Five
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Chapter Five
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Variety-Novelty Seeking
Measures a consumers degree of
variety seeking
Examples include:
Exploratory Purchase Behavior
Use Innovativeness
Vicarious Exploration
Chapter Five
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Visualizers
Verbalizers
.
Chapter Five
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Chapter Five
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Chapter Five
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Brand Personification
Consumers perception of brands
attributes for a human-like character
Mr. Coffee is seen as dependable, friendly,
efficient, intelligent and smart.
Chapter Five
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Chapter Five
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Chapter Five
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Chapter Five
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Different Self-Images
Chapter Five
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Extended Self
Possessions can extend self in many
ways:
Actually
Symbolically
Conferring status or rank
Bestowing feelings of immortality
Endowing with magical powers
Chapter Five
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Virtual Personality
You can be anyone
Gender swapping
Age differences
Mild-mannered to aggressive
Altering the Self-Image: Using self-altering products
to express individualism by:
Creating new self
Maintaining the existing self
Extending the self
Conforming
Chapter Five
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CHAPTER
SIX
Consumer
Perception
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Perception
The process by which an individual
selects, organizes, and interprets stimuli
into a meaningful and coherent picture of
the world
Elements of Perception
Sensation
Absolute threshold
Differential threshold
Subliminal perception
Chapter Six
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Sensation
Sensation is the immediate and direct
response of the sensory organs to
stimuli
A stimulus is any unit of input to any of the
senses.
Chapter Six
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Differential Threshold
(Just Noticeable Difference j.n.d.)
Minimal difference that can be detected
between two similar stimuli
Webers law
The j.n.d. between two stimuli is not an
absolute amount but an amount relative to
the intensity of the first stimulus
The stronger the initial stimulus, the greater
the additional intensity needed for the
second stimulus to be perceived as
different.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Six
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Marketing Applications
of the J.N.D.
Chapter Six
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Subliminal Perception
Stimuli that are too weak or too brief to
be consciously seen or heard
They may be strong enough to be perceived
by one or more receptor cells.
Is it effective?
Extensive research has shown no evidence
that subliminal advertising can cause
behavior changes
Some evidence that subliminal stimuli may
influence affective reactions
Chapter Six
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Aspects of Perception
Chapter Six
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Perceptual Selection
Selection Depends Upon:
Chapter Six
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Perceptual Selection
Important Concepts
Selective Exposure: Tendency to seek out
message that are pleasant, close to self
identity and promise goal attainment (e.g., will
help make good purchases)
Selective Attention: Motivation, contrast etc.
Perceptual Defense: Tendency to screen out
unpleasant or threatening stimuli
Perceptual Blocking: Avoid being bombarded by
tuning out, TiVo etc.
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Perceptual Organization.
Figure and ground: The figure is sharp, ground is
usually hazy. Marketers usually design so the
figure is the noticed stimuli.
Grouping: Grouping stimuli by proximity,
similarity etc.. It helps memory and recall.
Closure: Supplying in missing details to
complete an experience
Good Figures: People tend to perceive familiar,
well-known, symmetrical designs better than
unfamiliar or odd ones
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Interpretation
People hold
meanings related to
stimuli
Chapter Six
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Interpretation
Positive attributes of
people they know to
those who resemble
them
Important for model
selection
Chapter Six
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Interpretation
Verbal messages
reflect stereotypes
Chapter Six
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Interpretation
First impressions
are lasting
The perceiver is
trying to determine
which stimuli are
relevant, important,
or predictive
Chapter Six
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Interpretation
Consumers perceive
and evaluate
multiple objects
based on just one
dimension
Chapter Six
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Product Positioning
Establishing a specific image for a
brand in the consumers mind in
relation to competing brands
Conveys the product in terms of how it
fulfills a need
Successful positioning creates a
distinctive, positive brand image
Chapter Six
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Chapter Six
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Perceptual Mapping
An analytical technique that enables
marketers to plot graphically
consumers perceptions concerning
product attributes of specific brands
Chapter Six
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Positioning of Services
Image is a key factor for services
Services often want a differentiated
positioning strategy to market several
versions of their service to different
markets.
Chapter Six
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Chapter Six
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Intangible
Variable
Perishable
Simultaneously Produced and Consumed
Chapter Six
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Price/Quality Relationship
The perception of price as an indicator
of product quality (e.g., the higher
the price, the higher the perceived
quality of the product.)
Chapter Six
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Perceived Risk
The degree of uncertainty perceived by the
consumer as to the consequences (outcome)
of a specific purchase decision
Types
Functional Risk
Physical Risk
Financial Risk
Social Risk
Psychological Risk
Time Risk
Chapter Six
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Seek Information
Buy the same brand
Buy the most popular brand
Select by Brand Image
Rely on Store Image
Buy from the same salesperson
Buy the Most Expensive choice
Buy the cheapest
Seek Reassurance, etc.
Chapter Six
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CHAPTER
SEVEN
Consumer
Learning
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