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Consumer Behavior Final Exam Reviw

Consumer Behavior Final Exam Reviw

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Consumer Behavior Final Exam Reviw

Chapter 12:
Family Consumption Roles
o Consumption Roles are all about how people work and consume within a family.  These are very important to marketers because a family serves as a Consumer Unit. o Socialization: the process by which we develop relevant behavioral patterns gained within the confines of technological advances as well as through interaction with others.  In other words this is the process by which children learn the rules of the world through family interaction.  Factors affecting the degree of parents’ influence on children:  Age of child  Family’s social class  Child’s sex  Family characteristics (e.g., strict vs. permissive parents)  Whether or not the family is online

Role Specialization affects the decision making process and types of purchases.
o The term enacted role infers the actual overt behavior displayed by an individual in a particular capacity. o The term perceived role is an individual’s assumed obligation in the execution of a particular chore. o The term prescribed role reflects the expectations of others regarding appropriate modes of behavior for a person in a particular capacity.

8 Family Consumption Roles
o Influencers: members whose opinions affect product purchase o Gatekeepers: members who regulate the flow of information into the household o Deciders: members with the authority to make decisions o Buyers: members who act as purchasing agents

and widowed persons.o Preparers: members who ready a product for consumption o Users: members who use or consume a product o Maintainers: members who attend to the upkeep of a product o Disposers: members who determine when and how to discard a product Husband & Wife Decision Factors o Factors influencing the roles of husband and wife in family decisions:  Egalitarianism: a value stressing equality in marital relations  Involvement: relevance assigned by a spouse to an activity  Empathy: emotional participation in the feelings of the other spouse  Recognized authority: a right to decide assigned to one spouse The Family Life Cycle o The Traditional FLC:  Bachelorhood stage  Young.  Frequently have sufficient disposable income to indulge themselves.  Nonfamily households consist of single persons. a career oriented family. a marriage with a pre-existing child. and clothing and accessories. etc. unmarried couples. . a same-sex family. basic home furnishings. travel and entertainment. the purchase and maintenance of automobiles. divorced persons without children. single men and women who have established households apart from their parents.  Apt to spend their incomes on rent.  Honeymooner stage  Parenthood stage  Postparenthood stage  Dissolution stage o Modernized FLC  This is anyone NOT going through the Traditional Family Life Cycle  Could be a childless family.

   Generational Marketing o Serves as basis for market segmentation o Identifies differences in behaviors and response patterns of each cohort o Helps marketers select appropriate promotional appeals for each targeted cohort o Postwar cohort: born between 1928 and 1945  Lived through the period of economic growth and social tranquility that followed WWII causing members to seek material possessions to alleviate life’s uncertainties. tends to live beyond its means and enjoys conspicuous consumption. 39 percent of single women and 46 percent of single men ages 20 to 29 years old lived with their parents.6 million in 2007.  Latchkey kids: children who return from school to a locked and empty home while their parents are away at work  Around one-third of all school age children (around 5 to 7 million) are latchkey kids.  This segment constitutes a lucrative market for items such as travel. there were 17.S. as well as dating services.  Many Xers are the dotcom world changers and engaged leaders of various causes. reaching over 13. clothing. Boomerang children: grown adults who continue to live or return to their parents’ home  In 2005. o Boomers I cohort: born between 1946 and 1954  Known as Woodstock generation. o Boomers II cohort: born between 1955 and 1965  Has ingrained sense of entitlement and tends to pursue goals of selfinterest and instant personal gratification. sporty automobiles. convenience food. In 2005.  Divorces have been as responsible for this trend as births without marriage. Single parenthood: households that are headed by a single parent continue to rise in number. The live-alones: the number of men and women who live alone continues to rise. . households fit the nontraditional family mold. o Generation X cohort: born between 1965 and 1976  Tends to be unhappy about economic problems and displays somewhat contradictory behavior.4 million single-female households and 13 million single-male households. Around 85 percent of all U.

attitudes.  These people tend to spend a lot of time on the internet. gurus. to speak its mind.o Generation Y Cohort: born between 1977 and 1994  Often described as idealistic. o They have gained this knowledge through their own personal interest. visual. o These people are trying to get you to convert to their choice of products. attitudes. and through their wide range of connections to other people they are able to heavily interest others. o They process marketers’ communication and translate messages to the rest of us Agents Of Change .parties who actively seek to modify our beliefs. and mavens who casually provide advice to others. and to dress at is pleases o Generation Z Cohort: born between 1995 and 2008  The children or early teens of older and wealthier parents who have fewer siblings  Intensively exposed to and experienced with the digital world Chapter 13: Word Of Mouth o Personal Influence   Any change in a person’s beliefs. and individualistic  Tends to be anti-corporate. influential individuals. person-to-person communication between a noncommercial source and a receiver o WORD OF MOUTH  Opinion Leaders . such as experts.knowledgeable. or behavior that occurs as a consequence of interpersonal communication Personal influence can be verbal. or both. or behavior. o E-fluentials: individuals who exert an exponential influence in shaping and driving public opinion through the Internet . socially conscious. and can have more effect on the purchase decision than commercial sources of information.

Surrogate Buyer o Usually someone like a Wardrobe Consultant. and the like start on the streets and is adopted by the celebrities. o When it’s a person to whom the shopper shares a strong tie:  What is being relied on is the purchase pal’s familiarity and understanding of the buyer’s individual’s characteristics and needs. Usually for pay. etc)  Ideal model. our job would be done. Early Majority. music.  This started with political observations.  NOT REALISTIC .  Says that ALL THE INFO PEOPLE LEARN COMES DIRECTLY FROM THE MEDIA. a Doctor. o The Trickle-Up Model  Says that products or styles originating among the typical emulators or recipients gain acceptance among the elite and celebrity influencers  Says that things like fashion. (Not so true anymore) o The Trickle-Down Model  Says that personal influence passes from higher-status influencers to classes below them  Basically. or a Service o o o o Specialist. Usually specializes for a specific product or category. direct. or work colleague. o The Purchase Pal’s main contribution tends to be functional – the source’s specific product experiences and general marketplace knowledge are being relied on. and forceful impact on a captive mass-audience. classmate.Purchase Pal o Usually a neighbor. because if we could get our message as marketers to influential people. celebrities and important people discuss and show off products and we as consumers adopt the products. Usually have a more formal relationship. Five Models of Information Sharing o The Hypodermic Needle Model  The mass media has an immediate. High Level Of Accountability. o The Two-Step Model  Says that that opinion leaders and e-fluentials mediate the flow of message contents to passive information recipients  Think the Diffusion Model (Innovators.

Identifying Opinion Leaders o Four methods of identifying opinion leaders:  The Sociometric Method: Close scrutiny of interpersonal communication within small communities  The Self-Designating Method: Respondents recount their own leadership activities  The Key Informant Method: Knowledgeable persons about a group identify likely influential members  The Objective Method: Artificially creating opinion leaders o Marketers have spent a long time trying to find these opinion leaders. by every method possible.o The Multi-Step Model  Says that information flow is triggered by the mass media and the Net as well as during advice-seeking situations and casual conversations  ****REALLY REALISTIC MODEL****  We (as consumers) have conversations in which we give advice separate ones in which we seek advice. and often even identify who these people are and what they’re about. Viral Communication o Basically when Word of Mouth (WOM) catches fire and spreads from person to person. read what consumers are saying. *** o The huge advantage for marketers is that we can go online.  Vivid WOM – custom tailored to a situation  Live WOM – exchanges occur between individuals  Limitless: just a few influencers can ignite a chain reaction  Immediate: occurs in a close temporal and spatial situation  Memorable: stored in memory with more links to other concepts o ***Growth of the Internet has rendered WOM one of the most powerful communication means. and between these conversations is the flow of information from person to person. Teaser Campaigns o Teaser campaigns: promotions that drop bits of information and withhold the particulars . o One reason it works so well is because it feels like it’s neutral and that it’s not forcing information down your throat.

o Social Class is HARD to see in AMERICAN CULTURE  Class distinctions in the United States are subtle due to:  Egalitarianism: feelings of equality among people  Size of middle class: most people feel they belong to the middle class  Mobility: movement on the social ladder  Income inconsistency with status: class and income are not well correlated  Once you can see it.  Social Class vs.  Marketers then design promotional messages precisely calibrated to each social class needs. Income  People tend to casually equate earnings with social class. national brands  Choice of where to shop  Saving.  Class and income are not very well correlated. quantities. o Social Stratification: the act of classifying members of a society based on their economic and social standing  Social stratification provides one basis that marketers use for segmentation purposes.  Social class standing often influences various aspects of consumer behavior.  You can’t fully understand it without looking directly at each class.Chapter 14: How Does Social Class Work? o Social class is fairly universal. investing. and spending patterns  Credit use  Amount of effort expended in search activity  Not easy to measure class.  Databases are developed to identify clusters of consumers with shared characteristics. . including:  Types. social class is generally a better predictor than income for most consumer purchases. and qualities of acquired products  Preference for store brands vs. it’s an extremely valuable segmentation tool. also difficult to determine where each person falls in it.  For marketers.

but knowing how to behave w/ it.g. income. . education) coincide with one another. than your status is crystallized. o Reputational Measures: individuals in a group rank others’ social-standing. possessions.  ***Basically.***  Incongruity .  Marketers are interested in pinpointing incongruities--exceptions to the phenomenon of status crystallization. white picket fence. o Objective Measures: class membership is based on assessing one or more demographic and/or socioeconomic variables.  Manicured lawn.means that your status isn’t shown in your characteristics. if you look at all the stuff you have. o Objective investigations of social class employ one of two methods:  Single-variable indexes: the researcher uses a single indicator of class membership such as occupation or income to assess class standing  Composite-variable indexes: the researcher uses a weighted average of several socio-economic measures to calculate an overall index of a person’s class standing Status Crystallization o Status crystallization vs. etc.  Husband and Wife Joint Activities o The Working Class (40-43 percent) o The Under Class (12 percent) Methods of Measuring Social Class o Subjective Measures: respondents classify themselves on the social ladder. incongruity  Status crystallization is the extent to which our social-status indicators (e.Multi-Tiered Social Class In The US o The Upper Class (1 percent)  Not just having money.. o The Middle Class (45-47 percent)  Many symbols are associated with being middle class. and it’s in-line with your class.

Chapter 15: The Meaning Of Culture o Culture Is:  A society’s distinctive and learned mode of living. o Key Informants: soliciting views of experts on a culture. values. and morals necessary to function productively in a society  Enculturation: the process of introducing youth with society’s norms and values  Acculturation: the process of learning the norms. o Content Analysis: reviewing a culture’s media and literature output. we must maintain cultural sensitivity by accepting and respecting the views and actions of others even though they may be markedly different than ours. interacting. and responding to environmental stimuli  This mode is transmitted and shared between its members. Ethnocentrism o Is the tendency to make cross-cultural evaluations based on one’s own beliefs and values. and behaviors of a different culture o Culture includes both material (tangible) and abstract (intangible) elements. skills. o Cultural Lag:  Is the delay between rise of a technological innovation and the point of publics’ acceptance or rejection of it.  Mechanical and technical traits can mature quickly. Cultural Assessment Techniques o Ethnography: using unobtrusive observation of people in a culture. .  The tangible and intangible components of a culture do not necessarily evolve at the same pace. while ideological traits may linger behind.  In today’s diverse culture. o Direct Questionnaires: using research instruments to ascertain cultural tendencies. o Culture Is Acquired Through:  Socialization: the process by which we acquire knowledge.

 Implications of power distance extend to decision making and promotional strategy. people care for others and tend to be concerned about the environment as well as quality of life. people are seen as equals. as well as their reaction to such threats  In high uncertainty avoidance societies.  In low uncertainty avoidance societies.  In low power-distance cultures. people place greater importance on earnings. people obey authority without question. o Masculinity  The degree to which the dominant values in a society are success.  In societies low on masculinity. o Uncertainty Avoidance  The extent to which people feel threatened by ambiguous situations.  Implications of uncertainty avoidance extend to adoption and branding decisions. and things  In societies high on masculinity. people are willing to assume greater risk.Hofstede’s Cultural Dimensions o Culture’s can be assessed by noting their stance on:  Power Distance  Uncertainty Avoidance  Individualism  Masculinity  Term Orientation o Power Distance  The degree to which less powerful members of a society accept the fact that power is not distributed equally  In high-power distance cultures. and feel less need to restructure their activities to avoid it. and achievement. targeting. people tend to place greater importance on group affiliation and approval of others. people tend to be inner directed and make individual decisions based on their own values.  Implications of individualism extend to promotional messages deemed appropriate for different societies. and positioning.  Implications of masculinity extend to the fields of segmentation. people have low tolerance for risk and feel the need to counter it. o Individualism  The tendency of people to look after their own self interest rather than the interests of an entire group  In societies high on individualism. money.  In societies low on individualism. material possessions. .

 Ethnic microcultures include African American. as well as the immediacy of gratification of ones needs  In short-term oriented societies. they seek long-term solutions to problems. where people are less patient. Microcultures o Coverage of this topic encompasses both ethnic as well as consumption microcultures. place reduced value on the elderly. present. o Cultural relevance: understanding a microculture’s distinctive values. and values that are meaningless to a particular microculture. the HOG)  Such groups are identified by hierarchical social structure.o Team Orientation  A culture’s mode of viewing time-related societal aspects such as its past. and the accultured (28 percent) o Consumption microcultures: distinctive subgroups of society that self-select on the basis of a shared commitment to a particular product class. and aspirations  Marketers should present products and promotions in light of these unique characteristics. people are characterized by patience. icons. as well as distinctive jargon.  In long-term oriented societies. time is of the essence. perseverance. customs. rituals. or consumption activity (e. and Asian American consumers.g. among others. brand. and seek quick fixes to problems. and modes of symbolic expression.. o Hispanic Microcultures  Can be divided into three acculturation segments: the unaccultured (40 percent). . bicultured (32 percent). and future. shared beliefs and values. unique ethos.  Implications of term orientation extend to promotional messages. and respect for the past and elderly.  Marketers should avoid symbols. Hispanic American.  Consumption microcultures include the Harley-Davidson Owners Group (HOG) and Dead Heads and the Grateful Dead Organization.

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