Exam 1 Notes Chapter 1 Consumer behavior: the study of individuals, groups, or organizations and the processes they use

e to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society o A complex, multidimensional process o Successful marketing decisions by firms, nonprofit organizations, and regulatory agencies require an understanding of the processes underlying consumer behavior o Successful marketing decisions require organizations to collect information about specific consumers involved in the marketing decision at hand o Marketing practices designed to influence consumer behavior involve ethical issues that affect the firm, the individual, and society Social marketing: the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole o No direct benefit to a firm Customer value: the difference between all the benefits derived from a total product and all the costs of acquiring those benefits o It is critical that a firm consider value from the customers perspective Total product: a products feature, price, communications, distribution, and services Market segment: a portion of a larger market whose needs differ somewhat from the larger market o Four steps: 1. Identifying product-related need sets 2. Grouping customers with similar need sets 3. Describing each group 4. Selecting an attractive segments to serve Need set: used to reflect the fact that most products in developed economies satisfy more than one need Target market: the segment(s) of the larger market on which we will focus our marketing efforts Marketing strategy: answer to the question, How will we provide superior customer value to our target market? Marketing mix: the product, price, communications, distribution, and services provided to the target market Product: anything a consumer acquires or might acquire to meet a perceived need Marketing communications: include advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products Price: the amount of money one must pay to obtain the right to use the product Consumer cost: everything the consumer must surrender in order to receive the benefits of owning/using the product Distribution: having the product available where target consumers can buy it

Service: auxiliary or peripheral activities that are performed to enhance the primary product or primary service Product position: an image of the product or brand in the consumers mind relative to competing products and brands Customer satisfaction: when customers continue to believe that your brand meets their needs and offers superior value after they have used it Injurious consumption: when individuals or groups make consumption decisions that have negative consequences for their long-run well-being Conceptual model: captures the general structure and process Self-concept: the totality of an individuals thoughts and feelings about him/herself Lifestyle: how one lives

Chapter 2 Four basic types of world citizens: o Global citizens o Global dreamers o Antiglobals o Global agnostics Culture: the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society Norms: rules that specify or prohibit certain behaviors in specific situations Cultural values: widely held beliefs that affirm what is desirable Sanctions: penalties ranging from mild social disapproval to banishment from the group Other-oriented values: reflect a societys view of the appropriate relationships between individuals and groups within that society o Individual/collective o Youth/age o Extended/limited family o Masculine/feminine o Competitive/cooperative o Diversity/uniformity Environment-oriented values: prescribe a societys relationship to its economic and technical as well as its physical environment o Cleanliness o Performance/status Power distance: the degree to which people accept inequality in power, authority, status, and wealth as natural or inherent in society o Tradition/change o Risk taking/security o Problem solving/fatalistic o nature

Self-oriented values: reflect the objectives and approaches to life that the individual members of society find desirable o Active/passive o Sensual gratification/abstinence o Material/nonmaterial Instrumental materialism: the acquisition of things to enable one to do something EX: skis can be acquired to allow one to ski Terminal materialism: the acquisition of items for the sake of owning the item itself EX: art is generally acquired for the pleasure of owning it o Hard work/leisure o Postponed gratification/immediate gratification o Religious/secular Verbal communication systems: languages Nonverbal communications systems: the arbitrary meanings a culture assigns actions, events, and things other than words Monochromatic time perspective: believing that one person does one thing at a time; having a strong orientation toward the present and the short-term future Polychromic time perspective: having an orientation toward the present and the past Personal space: Guanxi: literally translated as personal connections/relationships on which an individual can draw to secure resources or advantages when doing business as well as in the course of social life Demographics: describe a population in terms of its size, structure, and distribution Purchasing power parity (PPP): based on the cost of standard market basket products bought in each country Glocalization: global localization; adapting products and services to local considerations

Chapter 3 Voluntary simplicity: consumers efforts to reduce their reliance on consumption and material possessions Enviropreneurial marketing: environmentally friendly marketing practices, strategies, and tactics initiated by a firm to achieve a competitive differentiation Green marketing: marketers response to Americans increasing concern for the environment o Generally involves: Developing products whose production, use, or disposal is less harmful to the environment than the traditional versions of the product Developing products that have positive impact on the environment Tying the purchase of a product to an environmental organization or event

Greenwashing: whereby a firm promotes environmental benefits that are unsubstantiated and on which they dont deliver Cause-related marketing (CRM): marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause o Not to be confused with social marketing Gender: whether a person is biologically a male or female o Gender identity: the traits of femininity (expressive traits such as tenderness and compassion) and masculinity (instrumental traits such as aggressiveness and dominance) o Gender roles: the behaviors considered appropriate for males and females in a given society o Ascribed role: an attribute over which the individual as little or no role EX: gender o Achievement rule: based on performance criteria over which the individual has some degree of control EX: occupational role o Traditional gender orientation: a marriage in which the husband assumes the responsibility for providing for the family and the wife runs the house and takes care of the children o Modern: a marriage in which husband and wife share responsibilities; both work, and they share homemaking and child care responsibilities

Chapter 4 Digital savvy: leading-edge digital users who are early adopters and diffusers of information related to technology in terms of technology ownership, internet usage, and cell phone feature usage Demographics: describe a population in terms of its size, distribution, and structure Class to mass: strategy used when consumers with modest incomes often want to trade up to luxury brands Subjective discretionary income: (SDI) an estimate by the consumer of how much money he or she has available to spend on nonessentials Cognitive age: defined as ones perceived age, a part of ones self-concept; how old you feel Generation/age cohort: a group of persons who have experience a common social, political, historical, and economic environment Cohort analysis: the process of describing and explaining the attitudes, values, and behaviors of an age group as well as predicting its future attitudes, values, and behaviors Mature market: generally defined as consumers 55 years of age and over Gerontographics: one segmentation approach to the mature market that incorporates aging processes and life events related to physical health and mental outlook of older consumers o Four segments: Healthy indulgers

Ailing outgoers Healthy hermits Healthy hermits Frail recluses Societal rank: ones positions relative to others on one or more dimensions valued by society Social class system: hierarchical division of a society into relatively distinct and homogeneous groups with respect to attitudes, values, and lifestyles Status crystallization: Conspicuous consumption: purchasing and using automobiles, homes, yachts, clothes, and so forth primarily to demonstrate their great wealth Nouvaux riches: Working-class aristocrats: individuals who are proud of their ability to do real work and see themselves as the often-unappreciated backbone of America Single-item indexes: estimate social status on the basis of single dimension such as education, income, or occupation Multi-item indexes: take into account numerous variables simultaneously and weight these according to a scheme that reflects societal views o Index of Social Position: (ISP) a two-item index that is well developed and widely used; scales, weights, formulas, and social-class scores Designed to measure or reflect an individuals or familys overall social position within a community Both scales were developed before the rapid expansion of the role of women

Chapter 5 Subculture: a segment of a larger culture whose members share distinguishing values and patterns of behaviors Ethnic subcultures: those whose members unique shared behaviors are based on a common racial, language, or national background Event marketing: involves creating or sponsoring an event that has particular appeal to a market segment Hispanic: a person of Cuban, Mexian, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race Acculturation: the degree to which an immigrant has adapted to his or her new culture Secular society: the education system, government, and political process are not controlled by a religious group, and most peoples daily behaviors are not guided by strict religious guidelines Religious subcultures: o Born-again Christians: characterized by a strong belief in that literal truth of the Bible, a very strong commitment to their religious beliefs, having had a born-again experience, and encouraging others to believe in Jesus Christ

Regional subcultures: arise as a result of climatic conditions, the natural environment and resources, the characteristics of the various immigrant groups that have settled in each region, and significant social and political events