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Exam 4 Consumer Behavior Flashcards

(44 cards)

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1
Q

What is segmentation?

A

Dividing a market into meaningful smaller markets or submarkets based on common characteristics

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2
Q

What are six characteristics that a good segment should have?

A
  1. Sizable
  2. Identifiable
  3. Reachable
  4. Respond Differently
  5. Coherent
  6. Stable
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3
Q

What is target marketing?

A

Directing one’s marketing efforts into specific segments (target markets)

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4
Q

What are four different strategies for targeting consumers, in order of most specific to most general?

A
  1. Customized Target Marketing
    - A unique product is created for the needs of a unique consumer
  2. Concentrated Target Marketing
    - Target a large portion of a small market
  3. Differentiated Target Marketing
    - Develop different value offerings for different targeted segments
  4. Undifferentiated Target Marketing
    - Mass market
    - Differentiate on price
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5
Q

What is positioning?

A

Communicating value to one’s target market by connecting consumers’ needs and wants to what the product has to offer

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6
Q

What are four different positioning strategies? Provide an example of each.

A

Positioning by:

  1. CORE BENEFIT
  2. PRICE
  3. USAGE SITUATION
  4. PRODUCT USER
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7
Q

What are two potential benefits of segmentation?

A
  1. Enables us to respond to our consumers’ unique wants and needs
  2. Escapes the “Majority Fallacy:”–Pursuing the majority segment can be a fallacy because the largest segment, where competition tends to be most intense, is not always the most profitable.
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8
Q

What are two potential drawbacks of segmentation?

A
  1. Sales-Costs Tradeoff: Sales may increase with more specialized products, but so do costs (multi-product lines are more costly).
  2. Cannibalization of Sales: Our product may “eat” share from our other products.
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9
Q

What are four categories of segmentation? Provide an example of each.

A
  1. Demographic Segmentation: Age, gender, income, social class, …
  2. Geographic Segmentation: Climate, population density, region, geodemography
  3. Psychographic Segmentation: Personality, lifestyle, preferences
  4. Behavioral Segmentation: Benefits, occasion, product usage
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10
Q

Until recently, men and women’s gender roles were distinct. What are agentic goals (men) versus communal goals (women)?

A

Men: AGENTIC GOALS: Mastery, Self-reliance, Self-efficacy, Strength, Emotionlessness
Women: COMMUNAL GOALS: Affiliation, relationship building, emotionality, home orientation, submissiveness

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11
Q

Today, women make the majority of households purchase decisions in the US. What are a few examples of product categories for which women make the majority of purchase decisions?

A

Home Furnishings, Vacations, new Homes, New Bank Accounts…

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12
Q

Describe key differences in men and women’s preferred shopping media

A

Women make more purchases online, but men make more mobile purchases

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13
Q

Describe key differences in men and women’s preferred shopping styles

A

Men = “Hunters”, more goal-directed, spend less time shopping, 72% check price, 65% try on will purchase
Women: “Foragers” - Shop as an end to itself, spend more time shopping, prefer to ask sales staff for info, 86% check price, 25% trying something on will purchase

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14
Q

Describe why you might want to target your marketing efforts toward kids and what might be the best means of reaching them

A

They are a primary market, influence market and future market. How to reach? TV–they don’t distinguish commercials from programming

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15
Q

Describe why you might want to target your marketing efforts toward teenagers and what might be the best means of reaching them

A

Why: market power, doing more shopping for family, developing brand loyalty
How: Texting, video, online brand WOM, consumer-generated content

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16
Q

According to Saatchi and Saatchi, what are four basic value conflicts that characterize teenagers?

A
  1. Autonomy vs. belonging
  2. Rebellion vs. conformity
  3. Idealism vs. pragmatism
  4. Narcissism vs. intimacy
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17
Q

What are four tips for engaging with teenage consumers?

A
  1. Don’t talk down to them
  2. Stay true to your brand image
  3. Entertain them & keep it short
  4. Sympathize, but keep it light
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18
Q

Describe why you might want to target your marketing efforts toward middle age adults?

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A

Why: “baby boomers” ~70 million, agents of something change, have purchasing power (biggest impact on the economy)

19
Q

What are the different ways that middle age adults spend their money, depending on whether they have kids or are empty-nesters?

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A
  1. Raising kids: Spend on housing, cars, entertainment

2. Empty-nesters:Spend on food, apparel, retirement

20
Q

Describe why you might want to target your marketing efforts toward the elderly?

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A

Why: Seniors control >50% of discretionary income, 13% of Americans >65, seniors of the future will be more affluent

21
Q

What are two tips for engaging with the elderly?

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A
  1. Avoid an “old” image

2. Ensure THEY can reach you

22
Q

Define “social class,” and describe how it is determined

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A

A consumer’s standing in society; determined by: education, occupation, income, neighborhood, parents

23
Q

What are the different lifestyle traits associated with each social class?

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A
  1. Working/Lower: eat at home, shop mass-merchandise, buy local, buy US, savings but no investment accounts, focus on local concerns and immediate needs
  2. Middle: eat out/take-out, mid-priced clothing stores, buy home furnishings, go camping/fishing, watch movies, listen to popular/country music, nice home in a nice neighborhood
  3. Upper/Upper Middle: shop in boutique/upscale stores, go to museums, see live theater, enjoy art, listen to npr, have investments, prestige brands in good taste, focus on global concerns and long-term goals
24
Q

What are two different suggestions for targeting people by social class?

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A
  1. Consider the lifestyle traits of the target class

2. Introduce “low end” and “high end” versions:

25
What are four different methods of geographic segmentation? Provide an example of each
1. Climate: Temperate, Hot, Rainy, Dry 2. Population Density: Urban, Suburb, Exurb, Penturbia, Rural 3. Region: Neighborhood, Town, City, State, Country; Northeast, South, Midwest, West; Mountains, Plains, Deserts, Ocean, Jungle 4. Geodemography: Potential Rating Index by Zip Market (PRIZM)
26
How might you modify your marketing strategies for an urban vs. rural location?
1. Rural: targeting marketing campaign, overcome barriers of access to shopping, emphasize dependability, traditions, values, use tactics based on establishing trust 2. Urban: create dif. versions of campaign to appeal to diverse consumers, create novel, vivid, intense ads to compete, emphasize innovation, newness, freshness, use tactics based on providing facts
27
What are the differences between local vs. national marketing?
Smaller consumer base, More homogeneous consumer base, Marketing is generally less expensive, Better placed to understand local values and culture, Easier to develop relationships with customers, Easier to respond quickly to changes in the market
28
What is the PRIZM system for geodemographic segmentation?
PRIZM categorizes consumers based on demographic, consumer behavior, and geographic data--provides info about segments' demographic, lifestyle and media traits
29
How are consumers grouped into social and lifestyle groups in the PRIZM system?
based on demographic, consumer behavior, and geographic data
30
What sort of information does the PRIZM system provide to marketers?
provides information about segments’ demographic, lifestyle, and media traits
31
What are four methods of behavioral segmentation? Provide an example of each
1. Product Benefits: Apple Jacks v. Apple Orbits 2. Usage Occasions: Seasonal Candy 3. Usage Frequency: Frequent Airline Rewards 4. Purchase History: Amazon suggested
32
One of the most common product benefits used to segment consumers is price. One price segmentation model segments consumers based on perceived pain, the amount of anxiety and negative feelings they experience when paying what they believe to be a high price for a product, and perceived value, the amount of product differentiation a consumer perceives among products. What are the four customer segments that result from this model? What preferences are associated with each segment?
High Pain, High Value: VALUE segment High Pain, Low Value: PRICE segment Low Pain, High Value: LOYAL segment Low Pain, Low Value: CONVENIENCE segment
33
What is an example of a marketing tactic that targets consumers based on usage situation?
Seasonal Candy, and different types of packaged honey
34
What is an example of a marketing tactic that targets consumers based on usage frequency?
Frequent flyer rewards programs
35
What is an example of a marketing tactic that targets consumers based on purchase history?
Amazon and facebook suggested links
36
What is psychographic segmentation?
Segment market into groups based on similarities in personality, preferences, and lifestyle characteristics
37
What is the VALS system of psychographic segmentation? What two factors does the VALS system use to segment consumers into different groups?
Measures consumer activities, interests, and enduring attitudes and values - segmented into 8 groups based on RESOURCES and PRIMARY MOTIVES
38
What are the eight different VALS segments, and what consumption habits are associated with each?
1. BELIEVERS: buy American, look for bargains, slow to change habits 2. THINKERS: Value-oriented, little interest in image 3. STRIVERS: emulate successful people, image conscious, limited income 4. ACHIEVERS: premium products, read about business/news 5. MAKERS: not interested in being "worldly" or having material possessions, comfort, durability, value, basics 6. EXPERIENCERS: spend on clothes, fast food, music, follow fashion/fads, impulse buyers, thrill seekers 7. INNOVATORS: possessions indicate own style, "finer" things, new products/tech 8. SURVIVORS: brand loyal when possible, scout for coupons/sales
39
What are the Big Five personality traits? Define each
1. OPENNESS: Appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious 2. CONSCIENTIOUSNESS: A tendency to show self-discipline, act dutifully, and aim for achievement. 3. EXTRAVERSION: The tendency to seek stimulation and the company of others. 4. AGREEABLENESS: A tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others. 5. NEUROTICISM: A tendency to easily experience unpleasant emotions such as anxiety, anger, or depression (emotional stability).
40
What are the characteristics of the Big Five (e.g., stability, heritability, etc)?
1. Stable: Some changes post-college (OEN typically decrease, CA increase), but for the most part, your standing will stay the same 2. Heritable: Up to 50% or so for each dimension 3. Largely cross-cultural 4. Predictive of other personal attributes and activities: Morning doves versus night owls, Marital satisfaction 5. Found in both self- and peer-reports
41
How do women and men compare on Big Five traits?
Women are higher on all levels. >1 on Neuroticism and almost Conscientiousness
42
What areas of the country are high and low on each of the Big Five traits?
Open: High = West coast, NYC, Low = Midwest Conscientious: High = Florida, South, Low = NY Extroverted: Spotted, Low: Southern Cali Agreeable: High = GA, AL, Low = NYC Neurotic: High = NYC, Low = Florida, TX, WA, Central
43
What sorts of behaviors are the Big Five traits associated with?
Open: Artists and creative professions; More liberal and tolerant of homosexuality, legalizing marijuana, abortion Conscientiousness: Related to religiosity and healthy behavior Extraverison: Extraverted people socialize more, but don’t necessarily tend to have more friends—they’re indiscriminate Agreeableness: Positively associated with religiosity, spending time with friends and having guests over; Negatively associated with going out to bars, joining clubs Neuroticism: Associated with lower rates of exercise, higher rates of disease, and lower life expectancy
44
What are the advantages and disadvantages of personality segmentation?
Advantages: Distinctive patterns of behavior, tendencies, qualities, or personal dispositions that differentiate individuals; Lead to consistent responses across varying environments; Reflected in consumption choices Disadvantages: Personality measures aren’t always good at predicting particular behaviors (level of specificity, some influences are powerful, act inconsistently); may be best thought of as a moderator

Consumer Behavior (9 decks)

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