Q1:

Consumer behavior is the study of consumers' choices during searching, evaluating, purchasing,
and using products and services that they believe would satisfy their needs.

Individual consumer behavior studies individual motivations, needs, preferences, and decision-
making processes, considering personal values, attitudes, lifestyle, perception, learning, and
social influences that shape their purchasing decisions.

An organizational consumer is a business or industrial entity that purchases goods, services, or

resources for its operations or objectives. Understanding their decision-making processes,
purchasing behaviors, and relationships with suppliers is crucial.

Organizational consumers involve multiple departments, consider budget constraints, and

consider long-term contracts, while individual consumers make decisions based on personal
preferences, emotions, and immediate needs.

Q2:

Maslow's hierarchy of needs, proposed by psychologist Abraham Maslow, outlines five levels of
human needs, with individuals motivated to fulfill lower-level needs before advancing to higher-
level needs.

5 levels of Maslow's hierarchy of needs are as follows:

1. Physiological needs: These are the basic biological needs required for survival, such as the
need for food, water, shelter, sleep, and oxygen.
2. Safety needs: Once the physiological needs are satisfied, individuals seek security and safety.
This includes the need for personal and financial security, health, stability, and protection from
physical and emotional harm.
3. Love and belongingness needs: The next level refers to the need for social interactions, love,
and a sense of belonging. This includes the need for friendships, intimacy, family, and social
connections.
4. Esteem needs: Once the lower-level needs are met, individuals strive for self-esteem and the
recognition of others. This involves the need for self-respect, confidence, achievement,
recognition, and a sense of competence.
5. Self-actualization needs: The final level represents the highest level of human needs, which
involves the need for personal growth, self-fulfillment, and realizing one's full potential. This
includes pursuing personal interests, creativity, problem-solving, and finding meaning and
purpose in life.

Maslow's theory suggests that individuals progress through needs sequentially, but may prioritize
higher-level needs based on their unique circumstances and motivations.

Q3:

4 types of segmentation:
- Demographic segmentation is a market segmentation technique that helps organizations
understand their target market based on demographic variables like age, gender, education,
income, and occupation, enabling effective customer service and marketing campaigns. (Ex:
Coca-Cola, a soft drink company, frequently targets young adults aged 15 to 25 through
marketing campaigns featuring depictions of young men or women.)
- Psychographic segmentation is the systematic arrangement of individuals based on shared
personal values, political beliefs, aspirations, and psychological traits. (Ex: A snack food brand
segmented customers who enjoy tailgates and football games, transforming marketing from easy
snacks for kids to party appetizers for adults.)
- Geographic segmentation is the classification of customers based on their location and
shopping habits, based on six factors (location, timezone, climate, cultural preferences, language,
and population type and density) that typically align with their needs and cultural preferences.
(Ex: An ice cream company targets the hottest regions in a country, thereby increasing its sales
and customer base.)
- Behavioral segmentation is a method of grouping customers based on common behaviors they
display when interacting with a brand. This includes spending, purchasing, browsing, brand
interactions, loyalty, and product feedback. (Ex: Utilizing behavioral segmentation email
marketing strategies, businesses can send targeted content and emails to customers who have
items in their cart for an extended period.)

Q4:

5 steps of the consumer decision-making process:

1. Problem recognition: Recognizes the need for a service or product.
2. Information search: Gathers information.
3. Alternatives evaluation: Weighs choices against comparable alternatives.
4. Purchase decision: Makes the actual purchase.
5. Post-purchase evaluation: Reflect on the purchase they made.

Q5:

Personality: The inner psychological characteristics that both determine and reflect how we think
and act.

Generally, researchers agree on these issues:

1. Personality reflects individual differences: Personality, a unique combination of traits, allows
marketers to categorize consumers into groups based on their willingness to accept foreign-made
products.
2. Personality is generally consistent and enduring: Personality is consistent and enduring,
making it crucial for marketers to explain consumer behavior. They can appeal to relevant traits
in target consumers, such as those who prefer innovative products.
3. Although it is enduring, personality can change (e.g., life circumstances and getting older):
Personality, despite being enduring, can evolve due to life events like marriage, childbirth, death,
job changes, or maturity, as individuals adapt to new experiences and perspectives.

3 approaches to understanding the impact of personality on consumer behavior:

1. Freudian concepts: A theory maintaining that unconscious needs or drives, especially
biological and sexual ones, are at the heart of human motivation and personality.
2. Neo-Freudian premises: Neo-Freudian theory posits that, in addition to Freud’s concepts,
social relationships are crucial factors in the development of personality.
3. Measuring distinct traits: The CAD scale measures the extent to which individuals are
Compliant (those who move toward others and wish to be loved, wanted, and appreciated),
Aggressive (those who move against others and desire to excel and win admiration), and
detached (are those who move away from others and seek independence, self-reliance, self-
sufficiency, and life without obligations).

Personality traits: are inner psychological characteristics that distinguish one individual from
other individuals.

Brand personification: Communicating human features of a brand in advertising.

The relationship between brand personality and two human characteristics:

1. Attachment Anxiety: The degree to which people are concerned about whether they are worthy
of love
2. Avoidance Anxiety: One’s view of others in the context of attachment
5 underlying dimensions of brand personality:
1. Excitement: Modern, imaginative, innovative
2. Sophistication: Associated with social status and trendy
3. Affection: Likeable and personable
4. Popularity: Sought after, in demand
5. Competence: Reliable, proficient, credible

Product personality and gender:

Product personality often assigns gender to brands, varying by culture. Hispanic consumers
associate personality characteristics with U.S. retailers like Walmart, Old Navy, and Sears, such
as detail-oriented, successful businesswoman, friendly, and elegant.

Product personality and geography:

Consumers associate brands with geographic locations, enhancing their memory and likeability.
Geographic brand names, like Texas Best Barbecue Sauce and Old El Paso salsa, capitalize on
local influences.

Q6:

Perception: The process by which individuals select, organize, and interpret stimuli into a
meaningful and coherent picture of the world.

3 aspects of perception: the selection, organization, and interpretation of stimuli.

Sensation: The immediate and direct response of the sensory organs to stimuli (units of input to
the senses, as captured by the sensory receptors).
Sensory Input:
1. Sight
2. Scent
3. Touch
4. Sound
5. Taste
6. Impact on Culture

Subliminal perception: A situation occurs when the sensory receptors receive stimuli that are
beneath the person’s conscious awareness (i.e., the absolute threshold).

The Stimulus:
- Contrast
- Shocking or unrealistic images

Perceptions Are Affected by:

- Expectations
- Motives
- Selective Perception:
* Selective Exposure
* Selective Attention
* Perceptual Defense
* Perceptual Blocking

Perceptual Organization:
- Gestalt psychology
- Figure and ground
- Grouping
- Closure

Product Placement: A form of promotion where marketers “disguise” promotional cues by

integrating products (i.e., “figures”) into TV shows films, or other entertainment content (i.e.,
“grounds”) or building entertainment content around products

Intrinsic and Extrinsic Cues:

1. Intrinsic – physical characteristics of the product
2. Extrinsic – not inherent in the product
Perceptual Interpretation:
- Stereotyping
- Triggers:
* Physical appearance
* Descriptive terms
* First impressions
* Halo Effect

Perceived Value:
- Reference price
- Price-quality relationship
- Positioning
- Image and quality

How Consumers Handle Risk:

- Information
- Brand loyalty
- Store image
- Price-quality relationship

Positioning: The process by which a company creates a distinct image and identity for its
products, services, or brands in consumers’ minds.

Positioning Process:
1. Define the market, buyers and competition.
2. Identify key attributes and research consumers’ perceptions
3. Research consumers’ perceptions on competing offerings.
4. Determine preferred combination of attributes.
5. Develop positioning concept that communicates attributes as benefits.
6. Create a positioning statement and use it to communicate with the target audiences.

Other Types of Positioning:

- Premier positioning
- Positioning against the competition
- Key attribute
- Un-owned positioning
- Repositioning