Intro - Chapter 1 Flashcards
(26 cards)
What is Consumer Behavior?
It’s a 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. It is dynamic because you need to manage consumer expectations and involves more than just a calculated transaction.
The challenge for marketers is to understand the needs and wants of different consumer segments.
EX: McDonald’s doesn’t proclaim itself to have the best burgers, but because they’re cheap, it gets people to come back.
What is a brand?
It’s a promise that must be fulfilled. Having a brand allows consumers to recognize you. They were created so companies could get away from competing on price.
What is a brand image? What about brand elements?
A brand image is decided by the consumer based on how they perceive it.
Brand elements include things like logos, slogans, jingles, etc. that distinguish brands from each other.
EX: Nike’s brand image is perceived as empowering and inclusive and inspires people to achieve greatness. Their brand elements are the iconic orange, the Swoosh, and the slogan “Just Do It.”
Why consumer behavior?
Since organizations exist to satisfy consumer needs, knowing consumers is crucial for driving relevant marketing decisions.
Also, consumer decisions aren’t always rational, so marketers try and meet the consumers where they are through different comms strategies and brand signals.
EX: Charmin bear –> makes the brand friendly and approachable while humanizing the purchase.
What is the Horizontal Revolution?
Marketing comms no longer flow top-down from companies to consumers. Social media has played a big role in this because it’s allowed for collaboration and cultivation among interconnected and independent networks of people.
What is the Internet of Things (IoT)?
The growing network of interconnected devices embedded in objects that speak to one another
EX: Nike uses IoT to develop their Nike Training Club app, which delivers personalized fitness advice to customers.
What is M2M (machine to machine comms)?
Direct comms between two machines, w/out the interference of humans.
EX: self-driving cars
What is the significance of Artificial Intelligence (AI)?
Enables hyper-personalization, speeds up repetitive tasks, better decisions that are driven by real-time data
EX: Target Circle gives customers personalized deals.
What is Big Data?
Using data can allow marketers to build two-way relationships with customers.
EX: Spotify takes your listening data and creates customized playlists like the “daylist” (songs that fit a certain mood/aesthetic) or the Daily Mix. This creates value for the user, increasing brad loyalty.
Consumer Trend: What is the sharing economy?
This is a new economic model that leverages peer-to-peer (P2P) or shared access to goods and services, facilitated by online community-based platforms. People can rent or borrow what they need rather than buying it.
EX: Uber (cars), Airbnb (lodging), Rent The Runway
Consumer Trend: Authenticity and personalization
Consumers demand products that they know where the item comes from and that “real people” have been invovled in creating the product. This also applies to hyper-targeted advertising.
EX: More brands are tapping into the customization service, including Function of Beauty which offers fully personalized hair care products. They are also transparent about where their ingredients come from and their action towards eco-friendly packaging and product development.
Consumer Trend: Blurring of gender identity and gender roles as well as diversity and multiculturalism
EX: Fenty Beauty creating makeup products n over 50 skin shades
EX: Dove Real Beauty campaign showcases women of all races, ages, and body types.
Consumer Trend: Social Shopping
Consumers can crowdsource feedback on purchasing decisions
EX: Texting a friend asking if you should buy the Baggu Crescent Bag or going on TikTok to see other’s reviews. No more lone consumption!
Consumer Trend: Income Inequality
The gap between rich and poor will continue to grow in the United States, which will exacerbate pressure toward a dual society of haves (in
gated communities) and have-nots.
EX: The middle market is shrinking because luxury brands like Gucci promote their aspirational and status boosting value while budget brands like Walmart use taglines like “Everyday Low Prices” to appeal to cost conscious customers.
Consumer Trend: Healthy and ethical living
A continued emphasis on wellness, physical health, and environmental sustainability.
EX: The Honest Company is committed to creating personal care and cleaning products that are safe, non-toxic, and natural. They are also open about the social causes they support (Baby2Baby).
Consumer Trend: Simplification
Consumers want experiences over things!
EX: The Darling Millennials (Marty’s neighbors) have no kids so they are able to spend their income on EXPERIENCES, namely traveling to all different places
Consumer Trend: Interconnection and IofT
EX: More “smarthomes” that have Amazon Alexa products. More smart devices like Fitbits and Oura Rings.
Consumer Trend: Anonymity
Data hacking, cyberbullying, and advertising tracking will fuel a desire for “the right to be forgotten. There will be greater emphasis on regulating online businesses as public utilities
and on forcing advertisers to reveal when they have paid for online advertising.
EX: Consumers are flocking to Snapchat because they don’t save posts. Privacy-oriented payment systems like PayPal and Apple Pay allow for transactions without directly revealing financial information.
What is Responsible Marketing?
Ethical, transparent, and sustainable practices in marketing that prioritize the well-being of consumers, society, and the environment.
EX: Patagonia created a campaign that urged consumers to purchase used garments rather than buying new (even if it is made by them!).
What is a need? What is a want?
Need is something people must have to live or achieve a goal (EX: Water)
Want is a specific manifestation of a need that personal or cultural factors determine (EX: energy drink with adaptogens).
Where do we find consumer researchers?
Just about anywhere! They can work for manufacturers, retailers, research firms, governments, nonprofits, and colleges.
You’ll find them in labs using neural imaging machines or malls interviewing shoppers.
What are the stages in the consumption process?
- Prepurchase: How does a consumer decide that they need a product, and what are the sources of info to learn more about different options? What cues do consumers use to infer which products are better than others?
- Purchase: Is acquiring the product a stressful or pleasant experience? What does the purchase say about the customer?
How do situational factors affect their decision? - Postpurchase:
Does the product deliver on its intended function? How is the product eventually disposed of? What determines whether or not a consumer is satisfied or if they’ll repurchase? Do they talk about their experiences with other people?
What is Alpha Mode?
When you are actively paying attention and your brain is cognitively engaged and processing info to make a decision (slow thinking, life changing events).
What is Beta Mode?
Zombie like, autopilot consumption of information. This is the default mode. Marketers need consumers to shift from beta to alpha mode to digest marketing comms.
EX: You are watching a YT video but can’t remember what you just watched or you are in your grocery store buying the things you normally get.
