Ba 492 Midterm 1 Study Guide

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Consumer Behavior- BA 492: Midterm Study Guide
Chapter 1: Buying, Having, and Being
* Consumer Behavior: study of processes involved when people or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy their needs and desires. * exchange—a transaction where two or more organizations or people give and receive something of value—is an integral part of marketing. * The expanded view emphasizes the entire consumption process. This view would include issues that influence the consumer before, during, and after a purchase. * Consumer: person who identifies a need or desire, and purchases the product. * 3 types: purchaser, user, or influencer

* Can also be an organization or group
* David Ogilvy: Founder of advertisement- “Consumer is like a wife” * Consumer’s impact on marketing
* Knowledge and data about consumers help define the market and identify threats and opportunities * Defining markets leads to consumer segmentation
* Market segmentation: identifies groups of consumers who are similar to one another in one or more ways and then devises strategies that appeal to one or more groups. There are many ways to segment a market. * 80/20 Rule: 20% top consumers account for 80% profits * Can segment based on usage, demographics, or psychographics * Demographics: age, race, income, gender, education, family structure, geography (US Census Bureau) * Psychographics: personality, lifestyle

* Relationship marketing interact with consumers regularly, maintain bond (Apple) * Database marketing: tracking specific consumers’ buying habits and crafting products and messages tailored precisely to people’s wants * Popular culture: marketers influence preferences for goods (like new years, Christmas..) and the way we evaluate others based on products they own * Cultivation Theory: impacts through affluence is depicted in media (and distorts reality) * Meaning of consumption: people often buy products not for what they DO but for what they MEAN * Consumers can develop relationships with brands:

* Self concept attachment: product helps to establish user’s identity * Nostalgic: reminds them of their past selves
* Interdependence: Depends on product
* Love: elicits emotional bonds and feelings with product * Global Consumer: unites people with common devotion to brand name goods, movie stars, celebrities.. * Digital Native: students who grew up wired in a highly networked, technology world * Horizontal revolution: information flows across people thanks to technology * Web 2.0: rebirth of internet as social, interactive medium * Synchronous interactions: occur in real time like texting * Asynchronous interactions: don’t require all participants to respond immediately, like email * Social media platforms enable a CULTURE OF PARTICIPATION: belief in democracy * Need (Basic biological motive) VS. Want (Society taught us need can be satisfied) * Marketers can’t make us buy something we don’t need- the goal is to fulfill our needs (don’t know enough about people to manipulate them) * Advertising: helps communicate availability of products that are designed to meet existing needs * Economics of information perspective: advertising is important source of consumer info * The failure rate for new products ranges from 40-80%. Although people may think that advertisers use magic to sell products, marketers are only successful when they promote good products. * Public policy and consumerism: concern for welfare of consumers * Counteract bad marketer’s push for faulty products * Culture jamming: strategy to disrupt efforts from corporate world to dominate cultural landscape- form of CONSUMER ACTIVISM * Transformative consumer research: promotes research projects to help...
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