MKTG 2910 Consumer Behavior – SP12 Final Exam Review Sheet (Rev. 5.12) NOTE: Be familiar with/understand these terms and concepts for final exam.
Why marketers study CB: Marketers who understand CB put out better products that are mutually beneficial in value to the customer and the firm. The firm can only build value by understanding what leads to high-value. Qualitative Research: Discovery that is gathered in a relatively unstructured way (ie: interviews case analysis focus groups) they are RESEARCHER DEPENDENT requires researcher to interpret via his or her opinion. Quantitative Research: Test research that is gathered in a relatively structured manner. Uses numerical measurement (ie: questionnaires or sales data) NOT researcher dependent results are objective.
Consumer Value Framework (CVF): consumer behavior theory that illustrates factors that shape consumption –related behaviors and ultimately determine the value associated with consumption. Value lies at the heart of CVF and value results from the consumption process, which represents the decision making process of consumers seeking value. Customer Relationship Management (CRM): Systematic management information system that collects, maintains, and reports detailed information about customers to enable a more customer-oriented managerial approach. External Influences: Social and cultural aspects of life as a consumer. Social Environment: Elements that specifically deal with the way other people influence consumer decision -making and value Situational Influences: Includes the situation in which the consumer is making the purchase: Atmospherics: manipulate the retail environment (ie music) Servicescape: continuum of hedonic vs utilitarian in how the service Is presented (ie a spa vs a bank) E-store Design: multi-channel shopping Internal Influences: Things that go on inside the mind and heart of the consumer that influence their purchase decision. Psychology: Cognition: Thinking or mental processes that often become knowledge. Related to Intentional Learning. Affect: feelings related with certain objects or activities. Emotional/Imagery.
Personality: Individual differences.
Two basic types of Value:
Hedonic: Fun immediate gratification. Related to Pleasure.
Utilitarian: Is pragmatic and practical. Related to Maslow’s Hierarchy of Needs. Total Value Concept (TVC): Business practice wherein companies operate with the understanding that products provide value in multiple ways. Marketing strategy: The way companies go about creating value for customers. Is most effective when firms adopt the Total Value Concept . (ie: many brands provide benefits that produce both utilitarian and hedonic value) Marketing Tactics: Ways marketing management is implemented: involves price, promotion, product and distribution (placement) decisions. Market segmentation: Separation of a market into groups based on the different demand curves associated with each group. Target Markets: Identified segment or segments of a market that a company serves. Perceptual maps: tool used to depict graphically the positioning of competing products. Two attributes are relative to product and some sort of continuum.
Customer Lifetime Value (CLV): Approximate worth of a customer to a company in economic terms; overall profitability of an individual customer. CLV= npv (sales-costs)+ npv (equity) sales-costs= present value equity=future value.
Consumer Decision-Making Process (five steps): 1. Need Recognition 2. Search for Information 3. Evaluate Alternatives 4. Choice 5. Post Choice Evaluation. Decision making perspectives (three types)
Behavioral Influence Perspective: Assumes many consumer decisions are actually learned responses to environmental influences. Example: Soothing music in a store makes you browse longer. Experiential Perspective: Assumes consumers often make purchases and reach decisions based on the affect or feeling attached...
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