Consumer Behaviour Definitions

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Definitions for Consumer Behaviour

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Consumer behaviour study of processes involved when individuals/groups select purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires
Role theory consumer behaviour resembles action/roles in plays (e.g. choosers, communicators, identity seekers, pleasure seekers, victims, rebels activist)
Market segmentation defines segments whose members are similar to one another in one or more characteristics and different from members of other segments (e.g. demographic, psychographic and geographic) Strategy targeting brand only to specific groups rather than to everybody
Relationship marketing marketers believe that key to success is in building lifelong relationships between brands and customers (e.g. charity donations, member exclusive offers) (shared consciousness, rituals and traditions, sense of moral responsibility)
Database marketing firms track consumers buying habits by computer and craft products and information tailored specifically to people’s wants and needs
Brand community a set of consumers who share a set of social relationships based on usage or interest in a product
Consumer society a society where social life is organised less around our identities as producers or workers in the production system, and more according to our roles as consumers in the consumption system
Global consumer culture culture in which people around the world are united through their common devotion to brand name consumer goods, movie stars, celebrities and leisure activities
Glocalisation products and services that are both developed and sold to global customers but designed so that they suit the needs of local markets.
Political consumer ‘vote with shopping basket’ to influence companies to care about other issues such as human rights and the environment
Positivism a research perspective that relies on the principles of the scientific method and assumes that a single reality exists; events in the world can be objectively measured and the causes of behaviour can be identified, manipulated and predicted
Interpretivism a research perspective that produces ‘thick’ description of a consumer's subjective experiences and stresses the importance of the individuals social construction of reality.
Postmodernism theory that questions the search for universal truths and the values the existence of objective knowledge fragmentation, de-differentiation, hyperreality, chronology, pastiche, anti-foundationalism, reversals of production and consumption, decentering of the subject, juxtaposition of opposites
Hyperreality phenomenon associated with modern advertising in which what is initially stimulation of hyper becomes real
Pastiche the playful and ironic mixing of existing categories and styles
Culture accumulation of shared meaning, rituals, norms and traditions among the members of an organisation or society
Cultural dimensions IBM Study from 1960's power distance, uncertainty avoidance, masculine vs feminine, individualism vs collectivism
Crescive norms norms that we discover as we interact, include customers, mores and conventions
Cultural stories every culture develops stories and ceremonies that help members make sense of the world
Myths (definition, characteristics and functions) stories with symbolic element that represent shared emotions/ideals of a culture characteristics: conflict between two opposing forces, outcome is moral guide for people, myths reduce anxiety by providing guidelines functions: metaphysical, cosmological, sociological, psychological
Rituals set of multiple, symbolic behaviours that occur in fixed sequence and tend to be repeated periodically
Fortress brands (rituals) brands that consumer closely link with rituals and ceremonials which makes them unlikely to be replaced
Ritual artifacts items or consumer goods used in the performance of rituals
Sacred consumption objects and events that are ‘set apart’ from normal activities that are treated with awe or respect
Profane consumption consumer objects and events that are ordinary and not special
Sacralisation when ordinary objects, events or people take on sacred meaning
Objectification when we attribute sacred qualities to mundane items through processes like contamination
Collecting systematic acquisition of a particular object or set of objects
Desacralisation sacred item/object is removed from its special place or is duplicated in mass quantities e.g. Eiffel Tower
Fashion system (4 models) people or organisations involved in creating symbolic meaning and transferring these meanings into cultural goods Includes psychological, economics, sociological and medical models
trickle down theory benefits the wealthy, conspicuous consumption
meme theory idea or product that enters the consciousness of people over time e.g. tunes, catch phrases
Collective selection process by which certain symbolic alternatives are chosen over others by members of a group
Core values common general values shared by a culture
Enculturation Acculturation learning the beliefs and values of one’s own culture learning the value system and behaviours of another culture
Antecedent states factors used to help identify the situation, e.g. situational factors, usage context, time pressure, mood, shopping orientation
Purchase environment more specific, rich in detail, e.g. shopping experience, point of purchase stimuli, sales interactions
Post-purchase processes consumer satisfaction, product disposal, alternative markets
Time poverty a feeling of having less time available than what is required to meet the demands of everyday living
Flow time in flow state we become absorbed in activity and notice nothing else, not good time for advertising (e.g. sports, daydreaming)
Queuing theory mathematical study of waiting lines, waiting for new product could reflect good quality, waiting for too long creatives negative feelings
Sensory marketing companies pay extra attention to the impact of sensations on our product experience, affects product usage and evaluation
Co-consumer other patrons in a consumer setting
Expectancy disconfirmation model consumers form beliefs about the product based on prior experience and/or communications about the product that imply a certain level of quality. Actual satisfaction depends on the degree to which performance is consistent with those expectations
Kano model approach to customer satisfaction, operates with three types of expectation (basis, performance and enthusiasm) -> product experience is important for customer satisfaction
Conscientious consumerism LOHAS occurs on personal health margin with a growing interest in global health Lifestyles of health and sustainability, worry about and environment and want products to be produced in a sustainable way
Divestment ritual where you dispose empty possession of private meanings to prevent contagion
Sensory systems products and commercial messages often appeal to our senses, but because of profusion of these meanings, most won’t influence us
Haptic senses senses felt through touch
Phonemes individual sounds that might be more or less preferred by consumers
Absolute threshold minimum amount of stimulation a person can detect on any sensory channel, to give product attention it needs to be above this threshold
Differential threshold ability of sensory system to detect changes in or differences between two stimuli
Just noticeable difference (JND) minimum change required in a stimulus that can be detected (e.g. price change)
Subliminal perception refers to stimulus below the level of the consumers awareness, stimulus can be made more prominent through.........
Embeds figures inserted into magazines advertising by using high speed photography or airbrushing
Subliminal auditory processing sounds, music or voice text inserted into advertising (e.g. John Cleese in Schweppes)
Interpretation meaning we assign to sensory stimuli, which is based on a schema
Schema an organised collection of beliefs and feelings represented in a cognitive category
Stimulus Organisation (3 principals) Gestalt Psychology, a school of thought that maintains people derive meaning from the totality of a set of stimuli rather than from an individual stimuli Principal of Closure: consumers think that incomplete picture is complete (e.g. JB whisky advertisement) Principle of Similarity: consumers group objects together that share similar characteristics (e.g. firms with extended product line) Principal of Figure Ground: one part of the stimulus will dominate whilst the others will recede into the background
Perceptual Map where brands are perceived in consumers minds, determines how brands are currently perceived to determine future positioning (e.g. Burberry)
Perception selectivity process in which people attend only to a small portion of stimuli to which they are exposed
Behavioural learning theories assuming learning takes place as a result of responses to external events -> stimulus response connections (i.e. intuition)
Classical conditioning stimulus that elicits response is paired with another stimulus that initially does not elicit a response on its own (e.g. dog with bell and meat)
Stimulus generalisation process that occurs when behaviour caused by reaction to one stimulus occurs in the presence of another, similar, stimuli
Stimulus discrimination when behaviour caused by two stimuli is different to when consumers learn to differentiate a brand from its competitors
Instrumental conditioning (operant conditioning) individuals learn to inform behaviours that produce positive outcomes and to avoid those that yield negative outcomes (e.g. owner of new shops provides perks to new customers to generate repeat business)
Cognitive theories focus on consumers as problem solvers who learn when they observe (thought through)
Activation models of memory approaches to memory stressing different levels of processing that occur to activate some aspects of memory rather than others, depending on the nature of the processing task
State dependent retrieval people are better able to access information if their internal states is same as time of recall as it was when the information was learned
Mood congruence effect underscores desirability of matching consumers mood at the time of purchase when planning exposure to marketing
Familiarity and recall prior familiarity with an item enhances recall
Highlighting effect consumers learning about brands according to their strength of association between brands and their attributes
Salience recall refers to brand prominence or level of activation in the memory
von Restorff effect increased novelty of stimulus improves recall
Starch test scores on familiarity with advertisement (i.e. noted, associated and read most)
Nostalgia bittersweet emotion where we view the past with sadness and longing
Utilitarian used to achieve purpose
Hedonic more of enjoyment, stimulates senses
Goal valence encourages consumer to approach positive goal (eat apple as healthy) and avoid negative goal (bad breath)
Drive theory biological needs that produce unpleasant states of arousal (e.g. hunger)
Expectancy theory behaviour is pulled by expectation of achieving desirable outcomes (i.e. positive incentives)
Theory of cognitive differences (approach-approach motivational conflict) based on premise that people have a need for order and consistency in their lives and that a state of tension is created when beliefs or behaviours conflict with one another (i.e. live with consequences of choice, reassure it is a good decision)
Maslow's Hierarchy of needs Self actualisation: showing self fulfillment, enriching experiences (e.g. travel, education) Ego needs: linking product to success (e.g. credit cards, cars, shoes) Belongingness: showing acceptance through brands (e.g. brand clothing and deodorant) Safety: security, shelter, protection (e.g. safe car, security system) Physiological: water, sleep, food
Freudian theory (three states) most human behaviour stems from fundamental conflict between a person's desire to gratify physical needs and necessity to function as responsible member of society id: almost entirely oriented towards immediate gratification, animalistic instinct, tempted by desires, maximise pleasures -> selfish and illogical ego: mediates between id and superego, makes compromises, finds way to gratify id in way that is acceptable towards outside world superego: counteracts id, systems is persons conscience, internalises society rules and prevents id seeking self gratification
Personality traits identifiable characteristics that define a person
Materialism the importance people attach to worldly possessions (big 5 neo-Freudian inventory)
Brand personality Brand personification Brand anthropomorphism set of traits people attribute to product as if it were a person give non-humans human like traits (animism) given non-humans both human form and human like traits (e.g. Absolut Vodka vs Stoli Vodka, trendy vs traditional)
Involvement persons perceived relevance of an object based on their inherent needs
Inertia consumption low end of involvement, decisions made out of habit because lack motivation to consider alternatives (e.g. tissues)
Psychographic studies use of psychological, sociological and anthropological factors to determine how the market is segmented by propensity of grounds within the markets - and reasons - to make decision about product, person, ideology or otherwise hold attitude or use a method
Geodemography using data on consumer expenditures and other socioeconomic factors with geographic information about the areas people live to identify consumers with similar consumption patterns
ABC Model of attitudes three components to attitude, emphasises inter-relationships between knowing, feeling and doing Affect: way consumer feels about objects (e.g. I like Colgate toothpaste) Behaviour: person intention to do something with regard to an attitude object (e.g. I intend to buy Colgate) Cognition: beliefs consumer has to attitude object (e.g. Colgate prevents countries
Principal of Cognitive Consistency consumers value harmony among their thoughts, feelings and behaviours and they are motivated to maintain uniformity
Cognitive dissonance people have need for order and consistency in their lives and state of tension created when beliefs or behaviours conflict with one another
Self perception theory alternative explanation of dissonance effects, assumes people use observations of own behaviour to determine what their attitudes are
Social judgement theory assume people assimilate new information about attitude objects in light of what they already know and feel
Latitudes of rejection and acceptance formed around attitude standard, ideas that fall in latitude will be favourably received whilst those falling outside won’t
Balance theory considers relations among elements a person might perceive as belonging together, involves relations between the person and their perceptions, an attitude object and some other person/object -> triad
Elaboration Likelihood Model (ELM) approach that one of two routes to persuasion (central vs peripheral) will be followed, depending on the personal relevance of a message; route taken determines relative importance of message contents vs other characteristics such as source attractiveness
Two factor theory repetition as advertising technique, net effect of positive learning factor and negative tedium factors that define that repetition initially is favourable before increased exposure causes advertising fatigue -> varying content of advertisement would be more favourable
Refutational argument negative issue raised then dismissed
Discretionary income the money available to a household over and above what it requires to have a comfortable standard of living, its an indicator of the propensity/ability of people to spend on consumption goods
Consumer confidence reflects how pessimistic or optimistic people are about the future health of the economy and how they will fare in the future
Behavioural economics how consumer’s motives and their expectations about the future affect their current spending and how these individual decisions add up to affect a society’s economic welfare
Social stratification artificial divisions in society, scarce/valuable resources are distributed unequally to status positions
Achieved status person receives rewards/status because of his hard work
Ascribed status inherited money/wealth
‘Nouveau riches’ conspicuous consumption, experience anxiety, status symbols purchased
‘Old money’ don’t need to prove they have money
Horizontal mobility moving from one position to another roughly equivalent social status, eg nurse to teacher
Upward mobility becoming better off than your parents - higher social class, eg Cinderella
Downward mobility becoming worse off, eg going on unemployment benefits or becoming homeless
Psychological perspectives on self defines personality as the combination of the characteristic patterns of thoughts, feelings and behaviours that make an individual's’ distinctive character
Self concept the beliefs a person holds about his/her own attributes and how he/she evaluates these qualities
Attribute dimensions content (physical attractiveness vs. mental aptitude), positivity (self esteem), intensity, stability over time and accuracy (how self perceptions correspond to reality)
Self esteem positivity of a person’s self concept, often related to acceptance by others
Social comparison evaluate yourself based on interactions with others, this is increased due to exposure to adverts (artificial images)
Ideal self our conception of how we would like to be
Actual/real self our more realistic appraisal of the qualities we have
Impression management we work to ‘manage’ what others think of us by using products and services
Self/product congruence consumers respond favourably to products/brands that help to improve, enhance or maintain their self-concept
Actual self congruity brand image matches consumer’s actual self
Ideal self congruity brand image matches consumer’s ideal self
Social self congruity brand image matches consumer’s social self
Ideal social self congruity brand image matches consumer’s ideal social self Virtual identity
Symbolic interactionism: relationship with other people play a large part in forming the self
Looking-glass self taking the role of others and imagining the reactions of others towards you, take readings of our own identity by ‘bouncing’ signals of others and trying to project what impression they have of us
Self-consciousness awareness of self
Symbolic self-completion theory people who have an incomplete self-definition complete the identity by acquiring and displaying symbols associated with it
The extended self individual, family, community and group - possessions are an extension of the self
Ahuvia ‘Beyond the extended self’ (2005) 3 relationships between two identities Demarcating - the consumer makes a choice between the two identities Compromising - where the consumer would try to create an identity that lies somewhere between the two identities Synthesising: where the consumer seeks to synthesis a new identity which takes on the positive aspects of both identities, but not the negative aspects
Agentic roles men are expected to be assertive and have certain skills
Communal roles women are taught to foster harmonious relationships
Sex-typed traits characteristics we stereotypically associate with one gender or another
Sex-type products take on masculine or feminine attributes (eg Gillette male razor, Venus female razor)
Masculinity three traditional models of masculinity study of male images and the complex cultural meaning of masculinity Breadwinner - respect and achievement vs autonomy, lacks independence, conforms Rebel - immaturity stigma vs conformity stigma, independent Man-of-action - synthesises the positives from the other two, but not the negatives
Sex-typed people stereotypically masculine or feminine - females more sensitive to pieces of information, men consider the overall themes, concern with their behaviour is matching the culture’s definition of gender roles
Sex-typed people stereotypically masculine or feminine - females more sensitive to pieces of information, men consider the overall themes, concern with their behaviour is matching the culture’s definition of gender roles
Metrosexual concerned with appearance, high disposable income
Androgyny possession of both masculine and feminine traits
GLBT consumers characteristics high disposable income, likely to have high paid jobs and a second hours, still largely ignored by marketers
Body image a consumer’s subjective evaluation of his/her physical self, marketing strategies often exploit consumer’s tendencies to distort their body images by preying on insecurities about appearance, creating a gap between real and ideal physical self and consequently the desire to purchase products and services to narrow that gap
Ideals of beauty exemplar of appearance, varies across cultures and over time in the same society, part of beauty seems to be genetic or intrinsic and part appears to be cultural or learned
Body decoration and mutilation separate group members from non-group, place individual in social organisation, place the person in a gender category, enhance sex-role identification, indicate desired social conduct, indicate high status or rank, provide a sense of security
Occupational prestige stable over time and similar across countries, single best indicator of social class
Income not distributed evenly across countries, how money is spent is more influential on class than income, better indicator of class as stable over time, often a result of class, occupation and education, better predictor of major non-status/nonsymbolic expenditures
Social class better predictor of lower to moderately priced symbolic purchases
Luxury goods can be functional, a reward or a luxury
Taste cultures differentiate people in terms of their aesthetic and intellectual preferences, largely reflect education and income, e.g. rich people prefer ballet and opera, poor people prefer boxing and wrestling
Economic capital income
Social capital number of friends, family and their social class, where they work etc, networks
Cultural capital set of distinctive and socially rare tastes and practices - opera, pubs, gigs etc, education, manners
Great British Class Survey (8 classes) elite, established middle class, technical middle class, new affluent workers, traditional working class, emergent service workers and precariat/precarious proletariat
Status symbols what matters is having more wealth/fame than others
Status-seeking motivation to obtain products that will let others know you have ‘made it’
Typology of Status Signalling (4 types) Patrician: signal to each other, use quiet signals, high wealth and low need for status Parvenu: associate with other have and want to disassociate with have-nots, use loud signals, high wealth and high need for status Proletarian: do not engage in signalling, low wealth and low need for status Poseur: aspire to be have, mimic the Parvenus, low wealth and high need for status
Conspicuous consumption the desire to provide the prominent visible evidence of your ability to afford luxury goods, eg private villa, low license plate number
Parody display deliberately avoid status-symbols, seek status by mocking it
Microcultures a community of consumers who participate in or otherwise identify with specific art forms, popular culture movements and hobbies, share a strong identification with an activity or art form, have own unique set of norms, vocab and product insignious
Ethnic subculture a self-perpetuating group of consumers who share common cultural or genetic ties where both its members and others recognise it as a distinct category
De-ethnicisation occurs where a product we associate with a specific ethnic group detaches itself from its roots and appeals to other groups as well
Acculturation occurs, at least in part, with the influence of acculturation agents - friends, family, organisations, media
Consumer acculturation (Penaloza 1994) (four immigration features culture) Assimilation: immigrants adopt lifestyle of new country, eg products that are identified in mainstream culture Maintenance: immigrants maintain aspects from home, eg continue to eat ethnic food Resistance: immigrants resist the new culture Segregation: immigrants are separated from the residents of country
4 acculturation strategies for local majority consumers (Luedicke, 2011) 1. multiculturalism strategy - majority citizens embrace the immigrants as enrichments to the social-cultural fabric 2. ‘pressure cooker’ strategy - majority citizens who expect immigrants to abandon their original culture and to assimilate to the local culture 3. ‘segregation strategy’ - majority citizens who, by denying access to the newcomers, leave immigrants no choice but to pursue their original cultures ways at a distance from the mainstream 4. ‘exclusion strategy’ - majority citizens who proactively exclude immigrants from their local area
Reference groups an actual or imaginary individual/group conceived of having significant relevance upon an individual's evaluations, aspirations and behaviour
Informational influence (reference groups) an individual seeks information about brands from experts, friends, neighbours, independent testing agency, based on knowledge, credible sources
Utilitarian influence (reference groups) an individual's decision to purchase a brand is influenced by people who they have social interaction with, family members preferences and their own preferences, complying to the image others expect of you
Value-expressive influence (reference groups) individual feels the purchase will enhance their image to others, make them be admired/respected by others, give them the characteristic they would like to have, notion of ideal self
When are reference groups important? (7 power types) Social power: capacity to alter the actions of others Referent power: when people imitate the behaviour of a person they admire Information power: when someone knows something others would like to know, eg websites that evaluate products Legitimate power: someone is given power due to social agreements, eg police Expert power: when someone has specific knowledge about a content area Reward power: when someone can provide positive reinforcement, eg cash reward Coercive power: influencing a person by social or physical intimidation
Membership reference groups people the consumer actually knows, advertisers use ‘ordinary people’
Aspirational reference groups people the consumer does not know but admires, adverts use celebrity spokespeople
Avoidance groups motivation to distance oneself from other people/groups
Anti-brand communities coalesce around a celebrity, store or brand, but in this case they’re united by their disdain for it
Deindividuation individual identities veecome submerged within a group
Social loafing people don’t devote as much to as task when their contribution is part of a larger group
Risky shift group members show a greater willingness to consider riskier alternatives following group discussion than if members made their own decisions
Factors influencing conformity cultural pressures, fear of deviance, commitment, group characteristics (unanimity, size, expertise), susceptibility to interpersonal influence
Opinion leaders have influence, experts, technically competent or legitimate power, unbiased evaluation - do not represent the interests of one particular firm, socially active, similar to the consumer, among the first to buy and interested in product category
Market maven actively involved in transmitting marketplace information of all types, overall knowledge of how and where to get products, good source of information for new products and sales
Surrogate consumer marketing intermediary hired to provide input into purchase decisions however consumer relinquishes control over decision making functions, eg interior designer, wedding planner,
How do we find opinion leaders? (two methods) Self-designating method: ask individual's whether they consider themselves to be opinion leaders, easy to apply to a large group of potential opinion leaders, inflation or unawareness of own importance/influence Key informant method: key informants identify opinion leaders
Word-of-Mouth communication more reliable form of marketing, social pressure to conform, influences 2/3rds of all sales, powerful when we are unfamiliar with the product category
Directed learning existing product knowledge obtained from previous information search or experience of alternatives
Incidental learning mere exposure over time to conditioned stimuli and observations of others
Internal search scanning our memory bank to assemble information about products
External search information is obtained from adverts, friends, brochures etc
Evoked set comprises these products already in memory (the retrieval set) plus those prominent in the retail environment
Inept set alternatives the consumer is aware of but would not consider buying
Inert set alternatives not under consideration
Basic level category where items have a lot in common but still a wide range present
Superordinate category more abstract
Subordinate category includes individual brands
Heuristics mental shortcuts, to decrease time and effort to make a decision
Consumer inertia the tendency to buy a brand out of habit merely because it requires less effort
Brand loyalty repeat purchasing behaviour that reflects a conscious decision to continue buying the same brand
Non-compensatory decision rules (define and three rule types) shortcuts to make choices, a products with a low standing on one attribute cannot make up for this position by being better on another attribute Lexicographic rule: select the brand that is best on the most important attribute Elimination-by-aspects rules: must have a specific feature to be chosen Conjunctive rules: minimum cutoffs are established - brand chosen if it meets all the cut-offs
Compensatory decision rules (define and two rules) collective decision making, give a product a chance to make up for its shortcomings Simple additive rule: choose the alternative with the most positive attributes (even though some maybe be meaningless/unimportant) Weighted additive rule: consumer takes into account the relative importance of positively rates attributes
Extended problem solving decision is related to the person’s self concept and the outcome has a high degree of risk/unfamiliar product that carries risk
Sandwich generation adults who care (financial and practical care) for their parents as well as their own children
Boomerang kids adult children who return to live with their parents
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