consumer behavior - NTNU at TU München

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Study with flashcards and summaries for the course consumer behavior - NTNU at the TU München

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

Explain the meaning of "the Marketing Mix"

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

Explain the concept of "the Rational Man" and how it's related to the consumer's decision making.


→ = "Many ideas bout consumers behavior is based on "The Rational Man". Explain."

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

Why should a company think about market segmentation?

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Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

Regarding perception, we are talking about three different aspects. What aspects?

(There are 3 aspects of perception. What 3?)

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

What is a reference group?

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

Give some examples of reference groups.

(Chap. 11-12, 3)

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

What is "social mobility"?

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Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

Another learning theory is Modeling or Monitoring. Explain.

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

What is an "Opinion Leader"? Explain.

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

What is the meaning of Word of Mouth?

Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

Segmenting by age group has been common over the years, but might today have some disadvantages. Explain.

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Over the years, there have been several attempts to use personality traits to segment groups with limited success. Explain.


"Segmenting is difficult, and some marketers are trying to record personality traits. Is that a good idea?"

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Exemplary flashcards for consumer behavior - NTNU at the TU München on StudySmarter:

consumer behavior - NTNU

Explain the meaning of "the Marketing Mix"

Book Definition:

"The unique configuration of the four basic marketing variables (product, promotion, price and place) that a marketing organisation controls."

  • The Marketing Mix is the combination of the 4 P (Place, Product, Promotion, Price)
  • "a combination of factors that can be controlled by a company to influence consumers to purchase its products."
    • if you want to change your product you can only change 1 out of 4
  • "The marketing mix consists of a company’s service and/or product offerings to consumers and the pricing, promotion and distribution methods needed to accomplish the exchange."

consumer behavior - NTNU

Explain the concept of "the Rational Man" and how it's related to the consumer's decision making.


→ = "Many ideas bout consumers behavior is based on "The Rational Man". Explain."

"rational man":

  • plans every decision he makes
  • based in economics: most decisions are rational as based on needs/requirements
  • no room for feelings/ desires
  • you buy because of the perceived usefulness, not because of a label


decision models: economic models

  • economic man / homo economicus
  • assumption of a rational consumer

other decision models : passive models, emotional models, cognitive models

consumer behavior - NTNU

Why should a company think about market segmentation?

Q&A session:

  • no wasting money/resources promoting a product to a market that does not want it
  • where is your market? → reach that specific market → use "Big Data"


Market Segmentation:

= dividing a market into subsets of consumers with common needs or characteristics

  • diversity in the global marketplace makes market segmentation an attractive, viable, and potentially highly profitable strategy
    • positive force for consumers & marketers
    • standardized marketing campaigns have the risk of being to generalized and then appealing to no one 
    • e.g. income, social class, age & sex of target customers may vary in different countries
  • segmentation studies discover needs & wants of specific consumer groups
    • specialised goods and services can be developed and promoted to satisfy each group’s needs
  • most companies with limited resources → few companies can pursue all the market segments identified
  • targeting: selecting one or more of the segments identified for the company to pursue
  • positioning: develop a distinct image for the product/ service in the consumers mind  to differentiate the offering from competing and squarely communicate that the particular product/ service fulfills their needs best


3 major strategic tools of Marketing (book):

  • market segmentation
  • positioning
  • targeting

consumer behavior - NTNU

Regarding perception, we are talking about three different aspects. What aspects?

(There are 3 aspects of perception. What 3?)

perception definition:

process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world


3 aspects of perception:

  • selection
    • consumers subconsciously are selective to what they percieve
    • stimuli selected depend on 1)consumer's motives and 2)consumer's previous experience
    • selection depends on nature of stimulus, expectations, motives
    • concepts: selective exposure, selective attention, perceptual defense, perceptual blocking
  • organization
    • principles: figure-and-ground (hazy ground, figure as noticed stimuli), grouping, closure
  • interpretation
    • perceptual distortion: physical appearances, stereotypes, first impressions, jumping to conclusions, halo effect


⇒ selecting and organizing based on different criteria

consumer behavior - NTNU

What is a reference group?

In a consumer setting, any group or person that serves as a reference point is considered a reference group.

  • group to represent your market and to refer to when making a decision
  • normative, comparative, direct, indirect reference groups
  • group: ≥ 2 individuals who reach individual or common goals thorough interaction
  • groups can be membership groups or symbolic groups


Membership Groups:

A group you are, or can be a member of.

→ e.g. football team, amateur wine club


Symbolic Groups:

A group you are not and cannot become a member of, even though you act like members of the group.

→ e.g. the national football team, the professional wine club


⇒ reference groups make up the frames of reference that the consumer complies to in a variety of situations 


book definition:

"A person or group that serves as a point of comparison (or reference) for an individual in the formation of either general or specific values, attitudes or behaviour."

consumer behavior - NTNU

Give some examples of reference groups.

(Chap. 11-12, 3)

normative reference groups:

  • define the frames of reference for general, overall values & behaviors
  • reference groups influencing general or broadly defined values or behavior

  • e.g. family


comparative reference groups: 

  • serve as benchmarks for specific/ narrowly defined attitudes/ behavior
  • reference for more precise, clearly defined attitudes and behavior 
  • e.g. neighbors


direct reference group:

  • you interact with the members 
  • e.g. amateur wine club


indirect reference groups: 

  • those individuals/ groups whom a person does not have direct face-to-face contact with
  • e.g. actors in movie, national soccer team

consumer behavior - NTNU

What is "social mobility"?

ability to move up (or down) the social ladder

  • different social classes
  • one of the few ways to move up: education! (most important tool!!)


Definition (Google):

Social mobility is the movement of individuals, families, households, or other categories of people within or between social strata in a society. It is a change in social status relative to one's current sociallocation within a given society.

consumer behavior - NTNU

Another learning theory is Modeling or Monitoring. Explain.

Modelling and Observational Learning

A process by which individuals observe the behavior of others, remember and imitate it.


⚡ no information in the book/ slides besides the definition above!

consumer behavior - NTNU

What is an "Opinion Leader"? Explain.

definition:

"A person who informally gives product information and advice to others."

  •  the people you consult for buying something
  • Opinion leaders know more than anyone else about a certain product/ service
  • Innovators (adopter categories, 2.5%) are opinion leaders
  • early adopters (adopter categories, 13.5%) contain greatest number of opinion leaders


Profile of Opinion Leaders:

  • generalized attributes across product categories
    • innovativeness, willingness to talk, self-confidence, gregariousness, cognitive differentiation
  • category-specific attributes
    • interest, knowledge, special-interest media, exposure, same age, same social status, social exposure outside group
  • creation of opinion leaders: approach socially outgoing people
  • advertisements stimulating opinion leadership


Opinion Leaders are...

  • ...4x more likely to be asked about political issues
  • ...3x more likely to be asked about computers/investments
  • ...2x more likely to be asked about restaurants


Information seekers seek a "strong-tie" source when they know little about a topic, and "weak-tie" when they have some knowledege.


Opinion Leadership:

Process by which one person (= opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients.

→ opinion leaders

→ opinion seekers

→ opinion recipients 

⇒ related to word of mouth?!


Examples of Opinion Leadership:

  • during a break a coworker talks about the movie he saw last night and recommends it
  • someone showing a friend photos of his recent Australian Outback vacation and the friend suggests that using a polarizing filter might produce better pictures

consumer behavior - NTNU

What is the meaning of Word of Mouth?

how people talk about / verbally promote your product

→ related to opinion leadership?!

⚠︎ word of mouth may be uncontrollable (complaint handling)

→ w. r. t. the communication process: the message initiator (source) includes word of mouth

⚠︎ issues with the credibility of (informal) sources


"Perhaps the most important thing for marketers to understand about word of mouth is its huge potential economic impact" (Shiffman, Kanuk & Hansen, 2012)


Word-of-Mouth Communications (book definition):

"Informal conversations between friends concerning products or services."

consumer behavior - NTNU

Segmenting by age group has been common over the years, but might today have some disadvantages. Explain.

No more age limits for what one can and cannot do

  • in some areas age does not explain behavior, people who feel young are young
  • young and old people doing the same things → not getting older socially/ psychologically 
  • rather use feeling: e.g. lifestyle for segmentation
  • people age in different ways: physical, physiological, sociological
  • mature consumers have to be classified into categories based on their own self image
  • categories like relating to health, other people, society, costs,... are not related to physical age

consumer behavior - NTNU

Over the years, there have been several attempts to use personality traits to segment groups with limited success. Explain.


"Segmenting is difficult, and some marketers are trying to record personality traits. Is that a good idea?"

classifying personal traits & using them for marketing is almost hopeless

  • too complicated → does not work
  • no time & costs to do this 


personality definition:

the inner psychological characteristics that both determine and reflect how a person responds to his or her environment

  • personality traits are often not recognizable(they are guarded/ not consciously recognized)
    • consumer innovators: open minded, perceive less risk in trying new things
  • personality reflects individual differences
  • personality can change but is consistent and enduring
  • personality extremely hard and expensive to measure!

 difficult to utilize in marketing

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