Consumer Marketing

  1. What constitutes (makes up) a family?
    Two or more persons related by blood, marriage, or adoption residing together.
  2. What is a household?

    How does a household differ from a family?
    Everyone who lives in one home.

    Those in a household aren't necessarily related.
  3. What is socialization?
    Refers to the process of teaching people to behave in a way that is acceptable to the society they live in.
  4. Significance of socialization to marketers
    Family invokes basic skills, values, behaviors, standards that determine buying habits
  5. What is consumer socialization?
    The process by which children acquire the skills, knowledge, attitudes, and experiences necessary to function as consumers. 

    • -Learned by observing parents, older siblings
    • -Peers have MOST influence on purchases 
    • -Teens often buy based on what their parents disapprove of
  6. What is the socialization agent?
    The person or organization involved in the socialization process. Typically, this is the individual that controls the rewards or punishments given to the child, most often the mother.
  7. Family decision-making (Patriarchal-Husband dominated)
    When the husband's influence is greater than the wife's.
  8. Family decision-making (Matriarchal-Wife dominated)
    When the wife's influence is greater than the husband's.
  9. Family decision-making (Joint-Syncratic decisions)
    When the decisions have equal weight
  10. Family decision-making (Autonomic decisions)
    When the husband or the wife is the primary or only decision maker.
  11. Modeling
  12. Decision-Making Theory - Extensive Problem Solving
    It is when the consumer discovers a new product category or wants to buy a product he does not know well and / or is particularly expensive and / or which present a significant risk regarding his economical or psychological point of view. His lack of “experience” in the matter leads to his lack of decision criteria to make his choice. He has no preference for a brand or a specific product. The level of consumer involvement is high. He will invest a lot of time looking for information and benchmarks to make his choice. The level of uncertainty and confusion about the choice of product can be high. The purchase process is usually quite long. This is the case, for example, for buying a car or a new computer
  13. Decision Making Theory -  Limited Problem Solving
    The consumer has a clear vision of its expectations and decision criteria. He already had an experience with the product and knows it. However, he is still undecided about the brand or a particular model to choose and which one will best meet his needs. The level of consumer involvement is moderate and information seeking is more limited. He will compare available products and especially want to determine which brand is best for him. The purchasing process will be shorter. This is the kind of behavior found for occasional purchases such as clothing, video games and cosmetics.
  14. Decision Making Theory - Habitual (Routinized Response Behavior)
    This is about the everyday purchases with a low level of involvement from the consumer. These are common products – typically Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) – that the consumer knows well. He knows what brand to choose and which product suits him. He does not need specific information or a specific research time to make his choice. The purchase decision is simple and is quickly taken. Usually, the more a product has become a “routine buying behavior” for a consumer, the less he will be responsive to stimuli or initiatives (advertising, discount, etc.) from the other brands.
  15. Howard-Sheth Theory - Levels of Consumer Decision Making
    Says that consumers differ

    • 1. Some require differing levels of information
    • 2. Varying levels of sources are consulted for purchase
    • 3. Varying amounts of time is spent before making decisions
  16. Buying roles - Initiator
    The person with an unsatisfied need or want.

    You, friends, etc. ANYONE
  17. Buying roles - Influencer
    The person who gathers information on products
  18. Buying roles - Decider
    The person who makes the decision of what product to purchase. (Whoever you send the money with)
  19. Buying roles - Purchaser
    The exchange of money/Receiver of product
  20. Buying roles - User/Users
    Whoever ends up using the product
  21. Buying roles - Most important role (Because the marketer can fill it)
    Initiator. If the role never existed, the other roles would not follow.
  22. Buying roles - Most important role when the marketer can't play a role
  23. Cognitive dissonance
    Occurs when consumers attempt to reassure themselves that they made wise purchasing decisions. They seek to rationalize by looking at ads, bragging about product.
  24. Consumer decision rules
    Rules and procedures that consumers use to facilitate brands and other consumption related choices. Rules serve as guidelines to reduce the burden of making difficult decisions.
  25. Compensatory decision rules
  26. Noncompensatory Rule
  27. Lexicongraphic Rule
    When a consumer ranks attributes of a product in terms of perceived relevance of importance.
  28. Decision Making Process: 1. Need Recognition. Recognize an unsatisfied need
    Occurs when a consumer is faced with a problem.
  29. Decision Making Process: 3. Evaluate alternatives to product selected
    Begins when a consumer perceives a need that might be satisfied by the purchase and consumption of a product.

    The consumer typically searches his memory extensively before looking at external sources.
  30. Decision Making Process: 2. Search for things that satisfy the need
  31. Decision Making Process: 4. Purchase
  32. Decision Making Process: 5. Learning, knowledge experience of product/Post purchase behavior
  33. What is an attitude?
    A learned predisposition to behave in a consistently favorable or unfavorable way toward a given object, brand, service, price, package, advertisement, promotion, etc
  34. How do consumers form attitudes?
    From direct experience with products, word of mouth, mass media.
  35. How do consumers attitudes affect their buying behaviors?
    Attitudes are not permanent, they can be resistant to change or change frequently. Situational factors, such as affordability, can sway a consumer's brand loyalty.
  36. What are the characteristics of an attitude?
    • - Are learned
    • - Tend to be long lasting in a person                   
    • - Made up of 3 components 
    • - Have direction
    • - Can change
  37. Three components of attitude (tri-component model)
    Cognitive (knowledge), affective (emotions), and conative (behaviors)
  38. Balance Theory
Card Set
Consumer Marketing
Consumer Marketing 11th Edition