Consumer Behavior & Technology Flashcards
Marketing
The activity, set of institutions, and processes for creating, communicating, and delivering offerings that have value for customers, clients, partners, and the society
Marketers work to identify unmet or partially satisfied consumer needs
Consumer Behavior
The study of consumers’ choices during searching, evaluating, purchasing, and using products that they believe would satisfy their needs
Explains how people spend their money, time, and effort with offerings from marketers
Irrational Consumers: Price Perception
Q: How do consumers rate wines?
- Rationality: Year, Type, Origin
- Reality: Price
Price Quality Heuristics:
- When participants were presented two identical wines with diff price tags
- They consistently rate the more expensive wine higher
Irrational Consumers: Price Decoy
Including a “medium” size so that customers are more enticed to purchase the larger size
- Small: $3
- Medium: $6.5
- Large: $7
Marketing Concept
The premise that marketing consists of satisfying consumers’ needs, creating value, retaining customers, and meeting organizational goals
Production Concept:
- Cheap, efficient production, and intensive distribution, not product variations
- Availability > Variety
Product Concept:
- Products that offers the highest quality, best performance, and the most features
- Quality > Affordability
- Marketing Myopia: Focusing on the product uniqueness, rather than the needs
- Creativity > Functionality
Selling Concept:
- Selling products that the marketer has decided to produce
- Consumers are unlikely to buy the product unless they are aggressively persuaded
- Sales > Satisfaction/Retention
ex. Door to door sales, Persuasive marketing
STP
Segmentation:
Involves identifying groups with common needs
- Limited Resources: Invest in potential customers with the highest return
- Competition: Competing organizations are better at attracting certain segments
Targeting:
- Marketer chooses the segment that they will pursue with distinct offerings
- Respond similarly to marketing action
Positioning
- How the consumer thinks about a marketer’s product vs the competitor’s product
- A distinct image that a brand occupies in consumers’ minds
Marketing Mix
Product:
Features, Designs, Brands, Packaging
- Post-Purchase Benefits: Warranties and Return Policies
Price:
- Discounts, Allowances, Payment Methods
Place:
- Distribution: In-Stores, Outlets, Delivery, Geographic Location
Promotion
- Advertising, Sales Promotion, Public Relations, Sales Efforts
- Build awareness and increase demands
Role of Technology
Technologies create value exchange
- Makes it easier to access information, entertainment, and customized products
Consumers pay for content with personal information
- Reviews, Browsing and Purchasing History
Cross-Screen Marketing
Promotional strategy that consists of tracking and targeting users across different devices
- Advertisers can send personalized ads based on the consumer’s interests while surfing online
Value
Consumers’ perception of what they gained vs what they gave up to purchase a product/service
Perceived Value
Relative and Subjective
Customer’s perception of a product desirability compared to a competitor’s product
Value Proposition
Value statement of an innovation, service, or feature intended to make a company or product attractive to customers
Unique Selling Proposition (USPs) act as a memorable way to differentiate yourself from the competition
Customer Satisfaction Stages
Loyalists: Highly satisfied and continue to purchase
Apostles: Provide positive word-of-mouth
Defectors: Feel neutral and are likely to switch to a company that offers a lower price
Terrorists: Spread negative word-of-mouth
Hostages: Unhappy but stay with the company because of the monopolistic environment or low price
Mercenaries: Satisfied but are not really considered loyal and will move from company to company
Customer Retention
Goal: Make customers continue to stay and support the company
Benefits of Loyal Customers:
- Buy more products
- Less price-sensitive
- Pay less attention to competitors
- Spread positive word-of-mouth
- Refer to other customers
- Constitute a ready-made market for new models of existing products
Forms of Engagement
Emotional Bonds:
Personal commitment and attachment
- Social media marketing attempts to get consumers to engage emotionally with products and brands
Transactional Bonds:
Inner mechanics that facilitate exchanges between consumers and sellers
- Assortment and transaction ease could shape the relationship
