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49 Cards in this Set
- Front
- Back
The Nature of Consumer Behaviour |
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ORGANIZATIONS AS CONSUMERS |
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Marketing Strategy and Consumer Behaviour |
The firm can succeedonly if consumers see aneed that its productcan solve, becomeaware of the productand its capabilities,decide that it is the bestavailable solution,proceed to buy it, andbecome satisfied withthe result of thepurchase. |
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A Trio of Needs |
• Power – individual’s desire to control environment • Affiliation – need for friendship, acceptance, and belonging • Achievement – need for personal accomplishment – closely related to egoistic and self-actualizationneeds |
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The “why” of consumption |
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Consumer behaviour is a process |
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A Simple Model of Consumer Decision Making |
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Impact of Digital Transformation and Technologies |
Marketers Consumers |
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Marketers |
•More products andservices throughcustomization •Instantaneous exchanges •Collect and analyze data |
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Consumers |
•Power •Information •New Products andGadgets |
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Consumer Innovation |
• Market-oriented definitions – Based on consumer exposure • Consumer-oriented definitions – Consumer judges it as “new” • Firm-oriented definitions – Product is “new” to the company • Product-oriented definitions – Continuous – Dynamically continuous – Discontinuous |
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Adoption Process and Extended Decision Making |
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CONSUMERS AROUND THE GLOBE The Imperative to Be Multinational |
• Global Trade Agreements • Winning Emerging Markets • Acquiring Exposure to OtherCultures • Country-of-origin (COO) Effects • Country-of-manufacturing(COM) • Country-of-design (COD) • Country-of-assembly (COA) • Country-of-parts (COP) |
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Multinational Reactions toBrand Extensions |
• A global brand does not alwayshave success with brandextensions • Example Coke brand extension –Coke popcorn – Eastern culture saw fit andaccepted the brand extension – Western culture did not see fit |
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Consumer culture |
• More and more of our personal identities and the relationshipsbetween people are mediated through consumption.Consumer society is thus characterized by a consumer culture. • The core of consumer culture is that consumption goes farbeyond solving practical and utilitarian problems. • In a reality, consumption becomes more a matter of culturalmeaning and less a matter of utility. • Consumption branding and marketing have become some ofthe prime reflectors of current cultural values, norms and socialroles. • Economy and cultures of consumption are thus closelyintertwined. |
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Consumer Acculturation in International Management |
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Acculturation (Continued) |
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Bases for Segmentation inConsumer Behaviour |
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Self & Lifestyle |
• Self concept is the totality of anindividual’s thoughts andfeelings about oneself. • Lifestyle is how one lives,including the products one buys,how one uses them, what onethinks about them, and how onefeels about them. |
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Different Self-Images |
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Independent/InterdependentSelf-Concepts |
Individuals with anindependent self-concept tendto be •Individualistic •Egocentric •Autonomous •Self-Reliant, and •Self-Contained Individuals with aninterdependent self-concepttend to be •Obedient •Sociocentric •Holistic •Connected, and •Relation oriented |
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Shopping Types |
• Economic shopper • rational and goal-oriented shopper. • Personalized shopper • tends to form strong attachments to store personnel. • Ethical shopper • likes to support local small shops. • Apathetic shopper • does not like shopping and sees it as a necessary chore. • Recreational shopper • sees shopping as a fun and social activity. • Hate-to-shop shopper |
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Shopping Motivations and Experiences 1 |
• Retailing is like theater – the consumer’s evaluation of stores andproducts may depend on the type of ‘performance’ they witness. • The actors (e.g. salespeople) • The setting (the store environment, atmospheric) • Props (store displays or image) • Like a brand personality, a number of factors such as perceivedconvenience, sophistication and the expertise of salespeopledetermine store image. • With increasing competition from non-store alternatives, creatinga positive shopping experience and competing for customers’attention are important. |
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Shopping Motivations and Experiences 2 |
• With increasing competition from non-store alternatives, creating apositive shopping experience has never been more important. • We don’t make many purchase decisions until we’re actually in thestore, point of purchase (POP) stimuli are very important sales tools. • product samples, elaborate package displays, place-based media,and in-store promotional materials such as ‘shelf talkers’. • POP stimuli are particularly useful in promoting impulse buying,which happens when a consumer yields to a sudden urge for aproduct. |
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Organizational Buyer Segments andMarketing Strategy |
Buyers can be segmented by their approach to the seller andthe decision Transactional exchanges Short term and few relational investments Lack of loyalty Relational exchanges Long term and high relational investments Strong loyalty Sellers must adapt strategies for these different buyer types |
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Personality definition |
• Personality is an individual’scharacteristic response tendenciesacross similar situations. • While motivations are theenergizing and directing force thatmakes consumer behaviorpurposeful and goal directed, thepersonality of the consumer guidesand directs the behavior chosen toaccomplish goals in differentsituations. |
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Personality |
1. Multi-trait Approach • The Five- - Factor Model is the most commonly used bymarketers and identifies five basic traits that areformed by genetics and early learning. .2. Single Trait Approach • Consumer Ethnocentrism • Need for Cognition • Consumers’ Need for Uniqueness |
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Personality- Multitrait Approach |
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Theories of Personality |
• Freudian theory – Unconscious needs or drives are at the heart of humanmotivation • Neo-Freudian personality theory – Social relationships are fundamental to the formation anddevelopment of personality • Trait theory – Quantitative approach to personality as a set ofpsychological traits |
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Freudian Theory |
• Id – Warehouse of primitive orinstinctual needs for whichindividual seeks immediatesatisfaction • Superego – Individual’s internal expression ofsociety’s moral and ethical codesof conduct • Ego – Individual’s conscious control thatbalances the demands of the idand superego |
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Neo-Freudian Personality Theory |
• Social relationships are fundamental to personality • Alfred Adler: – Style of life – Feelings of inferiority • Harry Stack Sullivan – We establish relationships with others to reduce tensions • Karen Horney’s three personality groups – Compliant: move toward others – Aggressive: move against others – Detached: move away from others |
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Trait Theory |
• Focus on measurement of personality in terms oftraits • Trait - any distinguishing, relatively enduring way inwhich one individual differs from another • Personality is linked to broad product categories andNOT specific brands |
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Use of Personality in Marketing Practice |
Sometimesconsumerschoose productsthat fit theirpersonality. Other times, consumersuse products to bolsteran area of theirpersonality where theyfeel weak. Brand image is what people think of and feel when theyhear or see a brand name. Brand personality is a set of human characteristics thatbecome associated with a brand and are a particulartype of image that some brands acquire. |
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Attitudes and Influencing Attitudes |
• An attitude is an enduring organization ofmotivational, emotional, perceptual, and cognitiveprocesses with respect to some aspect of ourenvironment. • Social marketing refers toattempts to changeconsumers’ attitudes andbehaviors in ways that arebeneficial to society as awhole. |
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Three hierarchies of effects |
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Do Attitudes Predict Behaviour |
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Behavioural learning theories |
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The Nature of Learning and Memory |
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The Nature of Motivation |
• Motivation is the reason for behavior. • A motive is a construct representing an unobservable inner force that stimulates andcompels a behavioral response and providesspecific direction to that response. • Marketing Strategy Based on Multiple Motives:Involvement is a motivational state caused byconsumer perceptions that a product, brand, oradvertisement is relevant or interesting. |
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Model of the Motivation Process |
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Motivation Theory & Marketing Strategy |
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Consumer involvement |
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Types of Consumer Involvement |
• Cognitive involvement– where a person is motivated tolearn all she/he can about the product. • Product involvement– the consumer’s level of interest inmaking a particular purchase, which can range from inertiato very high involvement. • Message-response involvement(advertising involvement) –the consumer’s interest in processing marketingcommunications. • Ego involvement(enduring involvement) – the importanceof a product to a consumer’s self-concept. |
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Strategies to Increase Involvement |
• Appeal to the consumer’s hedonic needs. • Use novel stimuli. • Use prominent stimuli. • Include celebrity endorsers. • Build a bond with consumers by maintaining an ongoingrelationship with them. • Online platform continues to provide companies withopportunities for creating loyal bonds with customers andthe possibility to personalize products and services. |
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The perceptual process |
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The Nature of Perception |
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Interpretation is determined by |
1. Individual Characteristics – Traits, Learning and Knowledge and Expectations 2. Situational Characteristics – The situation provides a context within which the focal stimulus isinterpreted. – The contextual cues present in the situation play a role inconsumer interpretation independent of the actual stimulus. 3. Stimulus Characteristics – Traits – Organization (Proximity, Closure, Figure-Ground) – Changes (Sensory Discrimination, JND) |
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Stimulus Characteristics- Changes (J.N.D.) |
• Marketers need to determine the relevant j.n.d. for theirproducts – so that negative changes are not readily discernible to the public – so that product improvements are very apparent to consumers |
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Advertising Appeals |
• Comparative • Fear • Humor • Abrasive • Sex • Audience participation • Timely • Celebrities |