Marketing 4 Ultimate Summary.

Marketing 4 Ultimate Summary

Chapter 7

• Consumer behavior: the study of the process involved when individuals or groups buy, use or dispose of goods, services, ideas, experiences to satisfy needs or wants.

Interdependent dimensions, study of: culture, social groups, individuals.

• Groups:

• Primary groups: Friends, neighbors & family.
• Secondary groups: religious, professional and trade union groups.
• Reference groups: groups that have direct/indirect influence on someone’s attitude/behavior.
• Aspirational groups: person does want to belong
• Dissociative groups: person doesn’t want to belong, rejects values/norms/behavior
• Disclaimant groups: person does belong, individual avoids values/norms/behavior
• Family of orientation: parents & siblings
• Family of procreation: children & spouse

• Shopping reasons: depends on product category/store type/culture

Hedonic reasons:

• Social experiences
• Sharing common interests
• Interpersonal attraction
• Instant status
• “Thrill of the hunt”

• Shopping types:

• Economic consumer (most value with little costs)
• Personalized consumer (building a personality with the product)
• Ethical consumer
• Apathetic consumer (know what they want, hard to influence)
• Recreational consumer (“spending time” while shopping)

• Major consumer trends:

• Cocooning
• Non-consumption
• Individualism/Mass Customization
• Laid-back lifestyle
• Live Life in the Fast Lane
• Environmentalism (and Green Marketing; CSR)
• Time Poverty
• Return to value (back to basic values)
• Increased Emphasis on Nutrition and Exercise

• Marketing Intelligence System: gathering as much information as possible, trying to find, explain and react to consumer trends.

• Topics on consumer behavior:

[pic 1]

5. Cultural influences:

• Cultural = fundamental determinant of a person’s wants and behavior. Conceptualized as the meanings that are shared by people in a social group.
• Subcultures → specific identification; but the first culture is still ruling.  

4. Income and social class:

• Relatively homogenous and enduring divisions on a society, hierarchically ordered and with members that share similar values, interests and behavior. They show distinct product and brand preferences in many areas.
• Painful: difference between rich and poor is getting bigger.

3. Individuals decision making

• Individuals

- Age and stage in the life cycle

- Occupation

- Personality and self concept:

• Personality: distinguish human psychological traits → response to stimuli. Brand personality: brand related to specific mix of human traits
• Lifestyle and values: lifestyle → pattern in life, activities, interests and opinions. Core values and social values.

4 key psychological processes that influence consumer responses:

1. Motivation:

• Physic biogenic: hunger, thirst, discomfort
• Psycho psychogenic: recognition, esteem, belonging
• Need: motive, drives us to act

Freud’s theory:

• Unconscious psychological forces
• Mostly unware of reaction
• Laddering/projective techniques (word association)

Maslow’s theory:

        Needs pyramid

                                5: self-development

                                4: self-esteem

                                3: sense of belonging/love

                                2: security

                                1: primary needs (food, drink, shelter)

        Herzberg:

• Two factor theory.
• Distinguish dissatisfiers and satisfiers; absence of dissartisfiers is not enough motivation to purchase

2.  Consumer perception:

• A motivated person is ready to act.

• Perception = the process by which we select, organize and interpret information inputs to create a meaningful picture of the world.

Three processes:

1. Selective attention:

Attention is the allocation of processing capacity to some stimulus.

Voluntary attention: on purpose

Involuntary attention: grabbed by someone or something.

                Selective screening: process where we screen most stimuli

• More likely to recognize stimuli that relate to a current need
• More likely to recognize stimuli they expect
• Weber’s law

2. Selective distortion: tendency to interpret information in a way that fits our perceptions. Consumers often misinterpret information to be consistent with prior brands and product beliefs/expectations.

3. Selective retention: tendency to interpret information in a way that fits our perceptions. Consumers will often misinterpret information to be consistent with prior brands and product beliefs/expectations.

4. Subliminal perception: selective perception mechanisms require consumers’ active engagement and thought. Marketers embed covert, subliminal messages on packaging and ads.

• Perspectives on consumer behavior:

• Behaviorists perspective: focuses on the impact of external influences on consumer behavior.
• Information-processing perspective: how consumers mentally process/store/retrieve/ use marketing information in the decision process.
• Emotional perspective: consumer affections (emotional responses) should be included in the explanation of consumer decision-making.
• Cultural perspective: marketing is a value transmitter that shapes culture and is shaped by it. Marketing is the channel through which cultural meanings are transferred to consumer goods.

Cross-Cultural Consumer Behavior Framework (De Mooij & Hofstede, 2011):

[pic 2]

Types of problem-solving: EPS vs. HDM

[pic 3]

• Personality: human psychological traits, leading to consistent and enduring responses to environmental stimuli

• Brand personality: specific mix of human traits that attribute to particular brand.

5 brand personalities:

• Sincerity (down to earth, honest, cheerful)
• Excitement (daring, spirited, imaginative, up to date)
• Competence (reliable, intelligent, successful)
• Sophistication (upper class, charming)
• Ruggedness (outdoorsy, tough)

• Lifestyle: a person’s pattern of living, expressed in activities/interests/opinions
• Need becomes motive when aroused to a sufficient level of intensity to drive consumer to act in order to reach a desired goal.
• (Herzberg’s theory: two-factor theory. Distinguishes dissatisfiers and satisfiers; absence of dissatisfiers is not enough motivation to purchase.)

• Perception: the process by which we select/organize/interpret information inputs to create a meaningful picture of the world.

• Stimuli people will notice:

• Stimuli related to a current need
• Stimuli anticipated.
• Stimuli whose deviations are large in relationship to the normal size of the stimuli (Weber’s law)

• Selective distortion: tendency to interpret information in a way that fits our perceptions. Consumers will often misinterpret information to be consistent with prior brands and product beliefs/expectations.

• Subliminal perception: selective perception mechanisms require consumers’ active engagement and thought. Marketers embed covert, subliminal messages on packaging and ads.

• Hedonic bias: people have a tendency to attribute success to themselves and failure to external causes

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• Brand association: brand-related thoughts/feelings/perceptions/images/experiences/beliefs/attitudes/etc. that are linked to the brand node.

• Perspectives on consumer behavior:

• Behaviorists perspective: focuses on the impact of external influences on consumer behavior.

Classical conditioning: known response and neutral response to create response for a product

Operating conditioning: positive rewarding

• Information-processing perspective: how consumers mentally process/store/retrieve/ use marketing information in the decision process.

Ongoing cognitive process and problem solving:

• Emotional perspective: consumer affections (emotional responses) should be included in the explanation of consumer decision-making.
• Cultural perspective: marketing is a value transmitter that shapes culture and is shaped by it. Marketing is the channel through which cultural meanings are transferred to consumer goods.
• Multi perspective:

• Buying process (five stages model):

1. Problem recognition:

- Problem/need is triggered by internal/external stimuli

- Occurs whenever a consumer recognizes a difference between current state and desired state

1. Information search (4 major sources)

• Personal: friends, family, neighbors
• Commercial: advertising, websites, salespeople
• Public: mass-media, consumer-rating organizations
• Experiential: handling/examining/using the product

-> Internal vs. External Search:

- Internal search: scanning memory to assemble product alternative information.

- External search: obtaining information from ads, retailers, catalogs, friends, family, people-watching, web sites

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