Summary chapter 1,3,4,5,9,13 for the elective Multicultural Consumer Behaviour at European Studies.
Last 4 pages are (possible) exam questions with answers.
Consumer behaviour: The study of consumers actions during searching for, purchasing, using, evaluating and
disposing of products and services that will satisfy their needs.
Algorithms: Series of steps used to predict buyer behavior (what we know about you)
The production concept: Consumers want products at low prices.
The product concept: Customers want a product with quality and best performance.
Marketing myopia: more focus on the product than on the needs it presumes it will satisfy.
Selling concept: Consumers are unlikely to buy a product unless they are aggressively persuaded to do so. It
does not consider customer satisfaction. Can lead to negative word of mouth.
Marketing concept: The essence of marketing consists of satisfying needs, creating value and retaining
customers.
Consumer research: Refers to the process and tools used to study consumer behaviour.
Market segmentation: Process of dividing a market into segments of consumers with common needs. (women
all have the need for tampons when they have their period).
Targeting: Means that the marketers select a segment and perusing them.
Positioning: The process by which a company creates a distinct image for its products compared to competitive
produces in consumers’ minds. (district benefits) ex. New flavours.
Four elements of the marketing mix
- Product or service: the features the design brands packing of a product.
- Price: includes discounts and allowances or payment methods
- Place: the distribution of the product or service through stores and other outlets
- Promotion: the advertising and sales
The societal marketing concept marketers to fulfil the needs of the target audience in ways that improve
preserve and enhance society’s wellbeing while meeting their business objectives at the same time. (Starbucks
stops selling plastic straws) marketers attract and maintain loyal customers this way.
The internet enables marketer’s consumer information on internet searches through cookies.
Customer value: The ratio between customer perceived benefits (economical or functional) and the resources
they used to obtain it (money time etc). Is something worth the money or worth the time?
Customer satisfaction: How does a product or service match the expectations of a customer. Customers are
generally satisfied if the product matched their expectation and less satisfied if the product didn’t match their
expectation at all.
Customer retention: Turning customers into long term customer relations, which is cheaper than retaining new
customers.
Customer pyramid: Groups customers into four tiers. It tracks costs and revenues of individual consumers.
Marketers develop marketing strategies for each group:
- The platinum Tier: heavy users who are not price sensitive high profitable for a company
- The gold tier: heavy users but more price sensitive less profitable
- The iron tier: spending volume and profitability do not use special treatment from the company.
- The lead tier: customers who cost the company money because they need more attention than merit
by spending.
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,Internal marketing: Where instead of “selling” to the public or potential consumers, your company instead sells to
its employees. The purpose is to improve employee engagement within, increase overall brand reach, and also that
employees can now provide value to potential customers because they believe in and understand the company’s
goals and vision themselves.
Consumer behaviour stems from four disciplines: Psychology (mind) Sociology (development and structure of
human society) Anthropology compares human societies and cultures. Communication is the process of
imparting or exhaling information personally or through media channels and suing persuasive strategies.
Input stage: Two influence factors the firm with their marketing efforts and social cultural influences, which
can be family or friends etc. It concludes how information of a product reaches a consumer.
The process stage: focus on how consumers make decisions.
Output stage: consists of two post-decision activities: purchase behaviour and post-purchase evaluation.
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, Chapter 3
Motivation: is the driving force that impels people to act.
Needs: Things that are required most basic needs are needs for shelter and food.
- Personality consumers often buy a product because brands give them a certain personality which
matches the personality of the customer (vans skaters)
- brand personification when consumers attribute certain human characteristics to a brand (exciting
or sophisticated)
- Anthropomorphism attributing human characteristics to something that is not human at all (Mr
clean) people trust him.
Figure: The motivation process
Two types of needs:
1. Physiological needs or biogenic needs (primary biological) need for food, shelter and sex.
2. Psychological needs are learned from a social environment (self-esteem, prestige, affection and
power, achievement). Both types of needs affect the buying behaviour. Need for a home and so
shelter is a physiological need, however what type of home is a psychological need.
Goals are sought-after results of behaviour; all human behaviour is goal oriented.
- Generic goals outcomes that consumers seek with their physiological and psychical needs.
- Product specific goals are outcomes that consumer seek by using a given product.
Needs and goals are interdependent. Needs are never fully satisfied, new needs emerge as old ones are
satisfied. Success and failure influence goals, for example when u successfully got your bachelor’s degree,
someone wants to obtain their master agree as well.
Frustration: The feeling that results from failure to achieve a goal.
Defense mechanisms: Cognitive and behavioral ways to handle frustration. Defense mechanisms are used
when people cannot cope with frustration. They are often developed to protect one’s ego from feelings of
failure when goals are not achieved.
Some examples of defence mechanisms are:
- Aggression
- Rationalization inventing reasons for not being able to achieve a goal
- Regression childish of immature behavior when not be able to achieve a goal
- Projection blaming someone or something else for not achieving a goal
- Daydreaming enables a person to fill unachieved goals
- Withdrawal withdrawing from a situation
Murray’s list of psychotic needs
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