BU432 Chapter Notes - Chapter 1: Culture Jamming, Big Data, Market Segmentation
BU432 Chapter 1
An Introduction to Consumer Behaviour
Consumer Behaviour: People in the Marketplace
• Need to know demographics (age, gender, ethnicity) and psychographics (lifestyle, interests,
attitudes, values, personality)
• Consumption communities where members share opinions and recommendations about
anything
• As members of a large society, people share certain cultural values, or strongly held beliefs,
about the way the world should function
o Same with subcultures, smaller groups, or teams
• The use of market segmentation strategies means that an org targets its product, service, or
idea only to specific groups of consumers rather than to everybody – even if it means that other
osues ho do’t elog to this taget aket ae’t attated to it
• Brads ofte hae leal defied iages, o pesoalities, that adetisig, pakagig,
branding, and other marketing elements help to shape
o A consumer may believe that if she buys and uses the g/s, its desirable qualities will rub
off on her
• When a g/s succeeds in satisfying our specific needs ot desires, we may reward it with many
years of brand loyalty, a bond between product and consumer that is very difficult for
competitors to break
What is Consumer Behaviour?
• Consumer behaviour is the study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and
desires
Consumer Behaviour is a Process
• Used to be called buyer behavior, reflecting an emphasis on the interaction between consumers
and producers at the time of purchase
• Consumer behaviour is an ongoing process, not merely what happens at the moment a
consumer hands over money or a credit card and in turn receives a g/s
• The exchange, in which 2 or more orgs or people give & receive something of value, is an
integral part of marketing
• The expanded view emphasized the entire consumption process, which includes the issues that
influence the consumer before, during, and after the purchase
Cosues’ Ipat o Maketing Strategy
• Consumer response is the ultimate test of whether a marketing strategy will succeed
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• Data about consumers helps marketers define the market and identifies the threats to a brand
and opportunities for it
• Focus on tomorrow
Segmenting Consumers
• Marketing segmentation identifies groups of consumers who are similar to one another in one
or more ways and then devises marketing strategies that appeal to one or more groups
• Building brand loyalty – id most faithful or heavy users
• 80/20 Rule- 20% of users account for 80% of sales
• Demographics- statistics that measure observable aspects of a population, such as birth rate,
age distribution, and income
• Psychographics- diffeees i osues’ pesoalities, attitudes, alues, ad lifestles
Age
• Often try to attract 1 age group then broaden appeal later on
Gender
Family Structure and Life Stage
Social Class and Income
Ethnicity
Geography
• Climate changes drastically from region to region in Canada, which makes segmenting some
products by region a profitable strategy
Lifestyles
Segmenting by Relationships and Big Data
• A key success is building relationships that will last a lifetime between brands and customers
• Relationship marketing involves making an effort to interact with customers on a regular basis,
giving them reasons to maintain a bond with the company over time
• Database marketing taks speifi osues’ uig haits e losel ad afts poduts
ad essages tailoed peisel to people’s ats ad eeds ased o this ifo
• Big data
• Types of relationships a person may have with a product:
• Self-concept attachment- the podut helps to estalish the use’s idetit
• Nostalgic attachment: the product serves as a link with a past self
• Interdependence: the podut is a pat of the use’s daily routine
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• Love: the product elicits emotional bonds of warmth, passion, or other strong + feelings
Maketig’s Ipat o Cosues
Marketing and Culture
• Pop-culture consists of the music, movies, sports, books, celebrities, and other forms of
entertainment consumed by the mass market and is both a product of and an inspiration for
marketers
• Our lives are affected in far-reaching ways by how we acknowledge cultural events and social
issues
• Consumer-generated content- consumers themselves voice their opinions about products,
brands, and companies on blogs, podcasts, and social networking sites
The Meaning of Consumption
• People often buy products not for what they do but for what they mean
• The roles products play in our lives go well beyond the tasks they perform
The Global Consumer
• Now consumers can connect with other consumers and have similar experiences with other
consumers around the globe (ecommerce and social media helped enable this)
• Global consumer culture – people around the world are united by their common devotion to
brand-name consumer goods, movie stars, and celebrities
• Much of our inter-connectedness to developments in technology that allows us to link with
companies – and each other- regardless of our physical location
• U-commerce- the use of ubiquitous networks, whether in the form of wearable technology or
customized advertisements beamed at us on our phones, that enable real-time connections in
business and consumption behaviour
• ^ global marketing means that even smaller companies are looking to expand overseas
• This ^ pressure to understand how consumers in other countries are the same as or
different from the from the consumers in the host country
Virtual Consumption
• Breaks down many of the barriers caused by time and location
• Selling to consumers: B2C commerce consumers selling to consumers: C2C commerce
• E-consumers are not limited to local retail outlets in their shopping nor are they limited to their
local communities when looking for friends
• Horizontal revolution allowed us to communicate with one another as info flows across people
• Social media – the online means of communication, conveyance, collaboration, and cultivation
among interconnected and interdependent networks of people, communities, and organizations
enhanced by technological capabilities and mobility
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find more resources at oneclass.com
Document Summary
What is consumer behaviour: consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires. Age: often try to attract 1 age group then broaden appeal later on. Geography: climate changes drastically from region to region in canada, which makes segmenting some products by region a profitable strategy. Interdependence: the p(cid:396)odu(cid:272)t is a pa(cid:396)t of the use(cid:396)"s daily routine. Love: the product elicits emotional bonds of warmth, passion, or other strong + feelings. The meaning of consumption: people often buy products not for what they do but for what they mean, the roles products play in our lives go well beyond the tasks they perform. Marketing ethics and public policy: conflicts between succeeding in market and desire to conduct business honestly and to max the well-being of consumers by providing them with safe and effective g & s.
