Consumer BB Exam 3
Terms
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- "RESIGNED SEGMENT"
- kids in denmark swede, korea and other countries that have low expectations of the future and of material success, alienated from society.
- "BOOTSTRAPPERS"
- nigeria, mexico, US and india family oriented, achievemen seekers with hopes and dreams for the future.
- "UPHOLDERS"
- vietnam and indonesia, taiwan, and other nations are dutiful and conformning, seeking a rewarding family life and upholding traditions.
- "QUIET ACHIEVERS"
- CONFORM TO SOCIETAL NORMS AND ARE AMBITIOUS FOR SUCCESS
- "THRILLS AND CHILLS"
- teens in the US Germany, England and other European countries, fun seeking free spending consumers from mainly middle class or upper class backgrounds.
- "WORLD SAVERS"
- hungary, phillipines, venezualea and several other countries are characterized by good grades, altruism, and high career aspiractions
- Generation Y
- 1979-1994 a media and tech savvy group, use high tech products to communicate, play games, do homework and shop. Approx 4 million turn 21 every year, around the world,teens tast eis very similar
- Brand Loyalty Y
- website for teens mad eby MAcys to make them think od Macys as a destination and then as they grow up as for their homes,their children and themselves
- positioning Y
- in japan they use high school girls because they have an uncanny ability to predict which products will be hits, fads catch on with teen snad then the general consumer
- effective advertising Y
- incorportes symbols, ussues and langauge to which the target group can realte. messages need to talk to teens not at them. use alternative music, sports figures, short snappy phrases not long wined
- Generation X
- born from 1965 to 1976 members are building careers, having families and buying homes. however fewer of them own their own homes today. alot of them return home to live after college or to save money not moving out into their 30s "boomerang kids" they influence family decisions, feel less pressure to settle down than earlier generations. they take tim eot reserch a purchase and likes to customize offerrings to their personal needs and taste. Key segment for music, mocies, budger tracel beer and alcohol, also important targets for markeers of PCs DVDs and other tech like things
- Advertising X
- born with TV, cynical about obvious marketing techniques react positively to messages they see as clever or in tube with their values, attitudes and interests
- Media X
- can be rached through popular radio statoins, and network cable TV and magazines
- Baby Boomers
- 1946- 1964 make up the largest demographic group in the US, they have considerable buying power and are an influential segment Value individualism, wan the freedom to do what they want when and where they want, they tend to watch more TV as they get older nd spend more time browsing the internet than others..
- Different Subgroups of Baby boomers
- three subsegments: leading boomers, core boomers, and trailing boomers or Gappers 63-69,
- Gray Market
- consumers over 65, women outnumber men. less likely to search for information and more liekly to have difficulty remembering and making more complex deciions. susceptible to the truth effect
- Market of Aging Pop
- seniors represent a growing pop for health related and medial rpoducts and servieces and retirement communities. products for those whoare senstitive to aging as well
- how seniors/grays can be targeted
- through programs like CNN and preium pay cable and oldies rock and roll stuff
- ethnic groups
- share a common heritage, set of belieds religion and experienceds that set them apart from others in society inc. hispanic, african american, adian, ilalia irish jewish polish
- acculturation
- move to differt culture, experiencing itm and learning it
- enculturation
- learning your own culture
- multicultural marketing
- the use of strategies that appeal to a variety of cultures at the same time
- groups that the spanish can be divided into
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1) acculturated , those who speak mostly english, high assimilation
2)bicultural who can function in either english or spanish
3)traditional who speak mostly spanish - intensity of ethnic identification
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how strongly people identify with their ethnic group
those who strongly identify with their ethnic group and are less acculturated into the mainstream culture are more likely to exhibit the consumption patterns of the ethnic groups
Strong identification leads to a higher level of husband dominated decisions, more likely to be influenced by radio ads, billboards, damily and coworkers, less likely to use coupons - Product Development Hispanic
- they are using makeup companies that have developed makeup for darket skin
- Advertising Messages Hispanic
- react positively to ads using ethic spokespeople who are perceived are more trustworthy, cant just translate a message doesnt always work out
- accomodation theory
- the more effort that one puts forth in trying to communicate with an ethnic group, the more positive the reaction
- African Americans
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watch more TC and have more positive attituses toward ads than Anglos
have a llot of influene on whats cool in the market - Asian Americans
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third largest and fastest growing major subculture in the US, more diverse than the Spanish culture, more people from differnet cultures
-strong emphasis on family, tradition and cooperation
-shop a lot check prices online mre than other consumers
-median income is higher than US median
-models are overrepresented - Ethnic Groups around the world
- french canadians, more stables for scratch cooking , more soft drinks, bere and wine, less frozenveggie, strong patriotism
- social class hierarchy
- higher classes of some people than to others, members of a particular social class tend to share similar values and behavior patterns, it helps people determine what their role in society is or what they would liek it ot be
- lower class
- most likely to be culture bound tend to be the most different from other classes in terms of lifestyle, dress and eating behaviors
- upper class
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varied group of individuals who incluse the aristocracy, the new social elite(nouveaux riche) and the upper middle class( professionals)
-many are price conscious, and more likely tha other classes to carefull research their purchases-nouveaux riche are upper class consumers who have acquired a great deal of status and wealth in their own lifetimes they collect items that are symbolic of acquired wealth and power(furniture, cars,) - middle class
- primarily white collar workers many who have attended college but have not completed, values and consumption patterns vary but man y look to the upper class for proper dining etiquette, but they also have lower class tendencies, premium cable
- overprivileged
- families with an income higher tahn the average in their class
- class average
- families with an average income in a particular class
- underprivileged
- families iwht an income lower than the average in their class
- trickle down effect
- when trends go down to the lower classes from upper
- status float
- when trends go up from lower class to upper.. blue jeans, tatoo
- income v social class
- more money doesnt mean higher social class, overlapping amounts of money in social classes, but lower class people who earn less arent seen as higher, incom eincreases with age, but doesnt mean that class is higher-income is a better indicator of consumer behavior, social class is a better predictor of consumption
- occupation and education
- the greatest determinant of education is occupation which often requires more education
- inherited status
- you get it from your paretns at birth
- earned status
- acquired later in life from personal achievements
- Social class indexes
- Indec of status characteristics and index od ssocial position are criticized as out of date
- CSI-consumerized status index
- assesses consumers education occupation area od residence and income. CSi is easy fo rinterviewers to administer and for consumers to answer
- Market of Aging Population
- seniors represent a growing pop for health related and medial rpoducts and servieces and retirement communities. products for those whoare senstitive to aging as well
- underprivilged
- have incomes below the median
- Computerized status index
- uses consumer education, occupation, area od residence and income to determince social class
- status crystallization
- when consumers are consistant across the various dimensions social class is easy to determine
- upward mobility,
- the ability to move up in class
- working class
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blue collar workers, traditional stereotype of hard hatted middlemen, heavily depend on family memeberasfor economic and social supprt , more of a local orientatio socially psychologically and geographically than other classes, local athletic teams, etc.
-likely to spend mroe than save, when they ave tthey use bank accounts instead of investments, judge product quality based on price, higher price, better qulity - homeless
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consumers who lack shelter and live on the streets or in makeshift structures, cars or vacant homes
-they are growing,
-mad eup of alcohol and drug users, members of female headed householdsa, etc
-struggle for survival, scavenging - marketing implications-social class
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different products for different calasses: Annheiser busch, michelob for upper, budweiser, for middl and busch for loweer
-upper class themes: you've made it, just reward for your hard work
-messages for lower class-more localized orientation focusing on home , friends and favored activities
-try to reach upper class through magazines (Robb Report, town and country, new york times), public tv
-middle: heavy tv and magazine
-lower: heavy tv less likely to read - nuclear family
- father mother and children
- extended family
- nuclear family plus relatives (grandparents, aunts uncles and cousins)
- household
- broad term including a single person living alone or a group of individuals who live together in a common place whether or not they're related
- family life cycle
- differnet stages of fmaily life depending on the age of the parentsand how many children are living at home
- main factors altering the basic household structure
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-delayed marriage: men at 27, women at 25
-cohabitation: living together outside marriage
-dual careers: women concerned aobur career advancement or woman works just to get money
-divorce-more common
-smaller families - household decision roles
- roles that different household members play in a household decision
- household member types
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gatekeeper: household members who collect and control info important to the decision
influencer: household members who try to express their opinions and influence the decision
decider: the person who determines which product or service will be chosen
buyer: the member who gets the prduct or service
user: the members who use the product - expressive
- roles that involve indication of family norms
- conflicts and when they occur in household roles
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-reasons for buying
-who should make the decision
-which option to choose
-who gets to use the product or service - Roles of spouses
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husband dominant decision- made primally by the male head of household
wife dominant decision-made primarily by the female head of household
autonomic decision-equally likely to be made by the husband or wife or both (mens clothes, oys, games_
syncratic decision-made jointly by the husband and wife (vacations, fridges) - bargaining
- fair exchange
- concession
- spouse gives in on some points to get what he or she wants in other areas
- syncratic decision
- made jointly by husband and wife
- autonomic decision
- equally liekly to be made by the husband or the wife
- household types that determine the nature of childrens influences
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authoritarian househols-stress obedience
neglectful -exert little control (children more control)
democratic-encourage self expressoin
permissive- remove constraints (children more control) - psychographics
- description of consumers based on their psychological and behavioral characteristics
- values
- beliefs that a given behavior or outcome is desireable or good
- value system
- total set of values and their relative importance
- global values
- represent the core of an individuals value system
- terminal values
- highly desired end states. equality and salvation
- instrumental values
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those needed to acheve these desired end states
loving forgiving, helpfullness. they help achieve terminal values - domain specific values
- relevant only to particular areas of activity such as religion family or consumption
- materialism
- satisfaction is guaged on on terms of what htey have acquired in life
- hedonism
- pleasure seeking, things that make people feel good , luxury cars, home entertainment
- means end chain analysis
- helps unerstand how values link to attributes in products and services like liking ligh tbeer because it has less calories , dont want to gain weight, want to be healthy
- lifestyles
- manifestations or actual patterns of behavior
- aspirational reference group
- groups we admire and wish to be life but are not currently a member of. ec. younger brother wants to be like older brother
- associative reference group
- groups to whih we actually belong such as a clique of friends, an extended family
- dissociativce reference groups
- groups whose attitudes values, behaviorswe disapprove of and do not wish to emulate. ex. KKK
- brand community
- a soecialized group of consumer with a structured set of relationships incolving a particlar brand fellow customers of that brand and the product in use
- primary reference group
- a group with which we have face to face interaction such as family, peers, and professors
- secondary reference group
- one tha tmay influence us even though we have no direct contact with its members internet chat group or musical fan club. even though impersonal it can still influence our behavior
- homophily
- the similarity among members of a group
- tie strength: strong weak
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strong tie- two people are connected by a close intimate relationship, often characterized bt frequent inerpersonal contact
-weak tie relatoinship people have a more distant nonintimate relationshop with limited interpersonal contact - what influences how quickly information is transmitted amoung consumers within a group?
- homophily, degree of contact and network density
- norms
- societies collective decisions about what behavior should be
- brand choice congruence
- the likelihoos that consumers will but what others in their group buy
- conformity
- the tendency for an indivual to behave as the group behaves
- complaince
- different eddect of notmatice influcence means doing what someone asks us to do
- reactance
- doing the opposite of what the individual or group wants us to do
- what are the two types of decisions researchers have hypothesized reference groups influence
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1-whether we buy a product within a given category
2-what brand we buy - reference groups are they likely to influence on whether we buy luxury items?
- they may exert some influence n wherther we buy a luxury item-friends with iPod or Dvd player, but not necessarily necessities
- products consumed in public that give others the opportunity to observe which brad we have purchased prediction
- cars are publicly consumed items so people see what we but, but people dont necessarily see what mattress we buy because it is consumed in private. hard for groups o develop norms when a good is consumed in private,
- informational influence
- the extent to which sources influence consumers simply by providing information
- innovation
- an offering thats new to the marketplace
- continuous innovation
- there is no behavior change only product change, limited effect on existing consumption patterns used in much the same way as products before it
- dynamically continuous innovation
- pronounced effect on consumption practices, often inovations incorporate a new technology. somewhat of a behavioral change
- discontinuous innovation
- a product so new that we have never known anything like it before airplanes and internet serivce providers at one time discontinuous innovations. basically it is new to the world
- diffusion
- the percentage of the population that has adopted an innovation at a specific point in time
- s shaped dffusion curve
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adoption of the products begis relatively slowly and after a period the rate of adoption increases dramatically with many people adoping and then many many more poeople and then it increases at a decreasing rate
-innovation is associated wiht some risk, diffusion may be slow initially because consumers arent sure if the product will be in the market for a long period of time (computers and CD players) - exponential diffusion curve
- starts out quick and then increases at a slower rate
- cultural categories
- the natural grouping of objects that reflect our culture. time, space, occasions
- cultural principles
- ideas or values that specify how aspects of our culture are organized and/or how they should be perceived or evaluated
- emblematic function
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use of products to symbolize membership in social groups
women-dresses