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All main topics / HTW Consumer Behaviour / Marketing

Consumer Behaviour (81 Cards)

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why do ppl buy things, and why is it important to know??
why buy:
- show status
- prestige
- style
- quality
- reputation
- reliability

why important to know?
awareness, commitment to customers must come from every area of your company
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conusmer behaviour (def)
study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires
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stages in the consumption process
Consumer Marketer
Prepurchase Issues Desicion about liking the product, learning about alternatives find out Consumers attitude, how does consumer define ranking of products
Purchase Issues is aquiring a product stressful or pleasant?, what does the purchase say about the customer? how are consumer desicions influened by situational factors? (store displays, time pressure
Postpurchase Issues Is product pleasing?, provides intened functions? what is needed for consumer satisfaction? will consumer come back, even recomend it?
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factors influencing consumer behaviour
psychological (motivation, perception, memory, belief...)
Personal (education, eco. status, age)
social (household type, reference groups)
buyers responses (service, brand selection, bestseller..)
cultural (culutre, subculture, social class)
environmental (economic, technological, political)
marketing programs
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role theory (def)
people act in certain situations in certain roles (father, sportsmen, business traveler...), job of the marketer is to realize the current role of the consumer, and provide the required products... (products and services for a large variety of roles is required)
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from micro to macro consumer behaviour
experimental psychology perception, learing and memory
clinical psychology psychological adjustment
microeconomics, Human ecology individuals and family resource allocation
social psychology behaviour of individuals as members of a soc. group
sociology social institutions and group relationships
macroeconomics consumers relations with the marketplace
demography measurable characteristics of a population
history societal changess over time
cultural anthropology society's beliefs and practices
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2 perspectives on consumer research
1. positivist approach
(objective, tangible, predicitve results)

2. interpretivist approach
(socially constructed, understanding, interactive)
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How does perception work, goal of marketer?

convert raw data into meaning
goal: attact many different channels, get audiences attention

exposure: stimuli on many different channels

attention: extend of processing activity to a particular stimulus
based on perceptual selection - contrast creation
personal selection: depeding on situation, needs, wants

interpretation: according to learned patterns and expectations, meaning  trough set of beliefs and attitudues
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hedonic consumption (def)
mulitsensory experiences, awake emotions, by using different sensory stimuli
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Vision
communication via: color, size, styling

visual elements: store design, packaging
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Scents
scented clothes, stores, cars, household products, advertisement
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Sound
audio watermarking: background music, associating with music
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Touch
haptic senses - touch helps for getting confidene in products,

people have tendency to touch a product
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Taste
influenced by biological and cultural factors
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webers law
to attrack attention, you need always a bigger stimulus than the first one
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perceptual map (def and draw)


identify inmportant dimensions and ask consumers to place you and competitors.

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motivation (def)
process that lead ppl to behave in a certain way
need is aroused, customers wishes to satisfy
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motivational approaches
need for achievment: value personal accomplishment
luxury

need for affiliation (zugehörigkeit): be in a group
alcohol, sports

need for power: controll environment
fancy cars, loud speakers

need for uniqueness: individuality
perfumes, certain clothing
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Mot. approach (maslov) inkl. products
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Involvement (def + areas)
a persons perceived relevance
with ads, products + purchase desicions
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level of involvement
intertia:
lack of interest
desicion out of habit
no motivation to consider alternatives

FLOW: (flow state)
obsession
great meaning
optimal experience
playfulness
being in control
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how to increase motivation to process information?
(5 methods)
- use celebrities
- provide values customers appreciate
- appeal to hedonic needs
- use novel stimuli (unusual elements, sudden silence...)
- use prominent stimuli (loud music, fast action
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Values (link to cobe, and why?)
belief of something being preferable to something else

link to cobe:
cultural values
consumptions-specific
product-specific

why:
essential to learn about other cultures
future growth in foreign markets
question if focus on standartized or localized strategies
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the Self-Concept
beliefs a person holds about his attributes and how he evaluates these qualities
help guide many purchase decisions

inner private self & outer pulic self

actual self vs. ideal self
try to fill gap
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multiple selves
every person plays multiple selves according to situation

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the extended self
self defined by objects

individual level: clothes, daily used-products
family level: house, furniture
community level: where do you live
group level: ascociated with certain ppl demonstrated value in society (sport teams, landmarks, monuments)
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female sex roles
Megan: low income, stylish, tech-savvy

Allison: Educated, middle income, career-minded, sophisticated

Elizabeth: intelligent, spontaneous, rich career woman, who likes travel fitness and career
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male sex roles
breadwinner: focused on success, looks for respectability, wants material sucess, achievements

rebel: rebellion, independence, adventure, potency

man-of-action hero: sythesis of the before mentioned
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Brand personality
set of characteristics of a product, used like it would be a person

- change over time

creation and communication of a strong brand personality creates competitive advantage
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male sex roles
breadwinner: focused on success, looks for respectability, wants material sucess, achievements

rebel: rebellion, independence, adventure, potency

man-of-action hero: sythesis of the before mentioned
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the Self-Concept
beliefs a person holds about his attributes and how he evaluates these qualities
help guide many purchase decisions

inner private self & outer pulic self

actual self vs. ideal self
try to fill gap
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psychographics
demographics shows who buys
psychographics show WHY!

ppl can be grouped to 3 categories
- interests
- attitudes
- opinions
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why use psychographic data?
- define target market
- create new view of market
- position product
- better communication
- develop overall strategy
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psychographics graphical overview
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Desicion making process (overview)
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perspectives on desicion making
rational perspective is the general assumption
if it is required it is used

maybe impulsive shopping, purchase momentum, even by more since allready started

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Problem recognition
gap between current state and desired state
of difference is significant - then problem recognition

3 stages

no problem: acutual stage is ok, ideal is a little bit higher
opportunity recognition: big gap between actual and ideal (buy a car
need recognition: actual state decreases, (car running out of petrol)
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information search
pre-purchase search
on-going search

internal and external search
directed learning (previous experience)
incidental learning (accidental)


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perceived risk
purchase decisions with extensive research come along with perceived risk / belief that the product as negeate consequences:

-monetary risk
-functional risk
-physical risk
-social risk (how person is perceived by souroundings)
-psychological risk (self-respect, self-perception)
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evaluation of alternatives (evoked set, categorization), how to strategically apply categorization
evoked set: products in memory, used before and famous ones

levels of categorization:


strategic implication of categorization:
positioning
identify competitors
locate products (will people find our product)
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product choice (How made)
choice made among the
-evaluation criteria
-determinant attribute - help customer, convince about with is the determinant attribute

Heuristics
mental shortcuts
market beliefs
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queuing theory
study of waiting in lines
people tend to think the product is good if people wait in line, they also get quickly annoyed
(more in western cultures)

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point-of-purchase stimuli (POP)
Product display or demonstration, coupon-dispensing machine, or an employee how gives out free samples
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expectancy disconfirmation model
belief of product performance (certain quality-expectation) based on gained experience or word-of-mouth
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total quality management
set of mgmt and engeneering procedures in order to reduce errors and increase quality
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product disposal
outdated product

lateral cycling - exchange old with new
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supermarket psychology
design-technique of supermarkets - shop more than basic needs

colors and music influence moods
green = fresh, blue=trust

most important products on eye-level

slotting fees - payed positioning on front of the aisle

scarcity creates perceived value

basic needs are hard to find, because they will be sold no matter what, lots of distraction
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reference groups (def)
actual or imaginary individual or group having significant relevance on others evaluation and behaviour
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influence by reference groups
informational knowledge
utilitarian sourroundings, what do others do?
value-expressive having a certain image, how do you want to be seen

high complexity and risk leed to high influence trough refernce groups
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Types of power of reference groups
referent power: power by having a role models character
information power
legitimate power: authorities, law, social system
Expert power: power through expertise
reward power: power of being honored, accepted, even tangible rewards
coercive power: social / physical power (Zwang)
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how are you influenced by reference groups
normative influence: norms and values , leads us to adopt, (parents)

comparative influence: we compare ourselves to a group, the closer we are, the bigger their influence
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brand communities
group of people sharing common intrerst in a product

Community events
collective value creation
consumer tribe

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aspirational reference groups
you are unknown...

groups we look up to, we wanna be in this group
(firms using athletes to represent product..)
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membership reference groups
you are known..

physical nearness
exposure - see each other often
group cohesiveness
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act in groups (effects)
- de-individualization
- social loafing (someone else will do it)
+ shared responsibilities
+ clear yes or no in groups

bandwagon effect: following leader
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group conformity (why?)
cultural pressure
fear of deviance (abweichung)
commitment
group is unanimous (einstimmig)
susceptibility (anfälligkeit) to interpersonal influence
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characteristics of opinion leaders
-innovators
-early and innovative communicators
-socially active
-appear conscious and narcissistic
-well-informed
-opinion seekers
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word-of-mouth communication, + why used (3 reasons)
information about products transmitted from individual to individual

-considered reliable and trustworthy
-very powerfull, especially if consumer is not familiar with product category

why used?
-involvement in product
-knowledge about product
-concerne about product - warn

negagive WOM is more powerful then positive WOM
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viral marketing
spread via pre-existing social networks
self-replicating
form: WOM, videos, games, images, text messages...
goal: need of being appealing

spread in short period of time
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household decision making roles
initiator - starts discussion
gatekeeper handles money and information
influencer i. e. kids
buyer
user
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today's family
less and later marriage
more breakups
more one-adult households
smaller families
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kids as decision-makers
consumers in training

primary market
influence market
future market
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consumer socialisation
the process by which young people acquire skills, knowledge and attitudes relevant to their functioning in the marketplace

sources:
Family (authoritarian, disregardfull (vernachläsigend), soft/yielding/indulgent

Media (TV / Web as electronic babysitters)
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5 steps of becoming a consumer
1. observing
2. making requests
3. making selections
4. making assisted purchases
5. making independent purchases
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social class
defines consumer spending and economic behaviour

there is desire to state the social class or the desired one

it also defines the attitude towards money

variables:
income, family background, occupation

status can be earned/achieved or inherited/ascribed
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social class categories, about cobe
Crash Dieters
26% of population, cutout non-essential spending
Scrimpers
13%, lower expectations, go for lower brands
Abstainers
15%, buying big purchases on credit and paying later
Balancers
9%, willing to switch categories, microwave instead of a fridge
Treaters
12% , have hard time budgeting the money
Justifiers
12%, willing to spend, but has to be justified (they have the money)
Ostriches
9%, don’t buy anything
Vultures
4%, look for bargains (best option in the market), have money
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mobility in status
vertical mobility - from ascribed to achieved status

horizontal mobility - relocation (place a to place b)
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status symbol (def)
buy products that show "we made it"

show of relative to others...
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lifestyles (def)
pattern of consumption
how to spend leisure time, how to spend disposable income

products are building blocks of lifestyles, can create community amoung product users
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Subcultures
melting pot

consumers belong to many different subcultures based on
age - race - ethnic background - residence

this has strong influences on consumption patterns
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mircoculture
subculture based on the identification with a certain lifestyle

comes with its own unique set of norms, vocabulary, product preferences
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ethnic and racial subcultures
subculture of tied togehter ppl based on common cultural and/or genetic ties

should always be considered for marketing

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high/ low context


high context: relational, collective thinking, cooperative, teamwork, long-term relationsships, traditions,

low-context: competitive, task-oriented, short-term, change over traditions
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de-ethnicisation
process of a product associated with a specific ethnic group is taken and marketed to another ethnic group:
sushi, mc-donalds, pizza/pasta
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acculturation
Process of movement and adaptation to one country's cultural environment by a person from another country

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progressive learning model
how people adopt to new culture

-the faster the more exposed to it
-mix old and new culture

ppl who have strong ethnic identification:
- negative attitude for new culutre
- media in native language
- loyal to certain brands
- most time prestige brands
- buy brands that advertise to their ethnic group

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religious subcultures
influence on food, attitudes on sexuality, birth rates, household form, income, consumption in general
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age subcultures
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diffusion of innovations
process of a new product/service/idea spreads through a population

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requirment for sucessful adoption of new product
compatibility
trialability (testbarkeit)
complex
observable
relative advantage
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tendencies
environmental consumerism
- recycling, Corporate responsability

political consumerism
- boycotts

global marketing
- further exporting western lifestyle
Flashcard set info:
Author: CoboCards-User
Main topic: HTW Consumer Behaviour
Topic: Marketing
School / Univ.: HTW Chur
City: Chur
Published: 17.01.2015
Tags: HTW, Tourism
 
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