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Questions and Answers
What is the primary goal of understanding consumer behavior?
What is the primary goal of understanding consumer behavior?
What market-coverage strategy involves targeting one or few segments or niches?
What market-coverage strategy involves targeting one or few segments or niches?
What is the most basic determinant of a person's wants and behavior?
What is the most basic determinant of a person's wants and behavior?
What is the primary benefit of understanding how consumers respond to different product features, prices, and advertising appeals?
What is the primary benefit of understanding how consumers respond to different product features, prices, and advertising appeals?
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What is the outcome of a need being aroused to a level of intensity?
What is the outcome of a need being aroused to a level of intensity?
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What is the term for a group of people with shared value systems based on life experiences and situations?
What is the term for a group of people with shared value systems based on life experiences and situations?
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What is the primary focus of the field of consumer behavior?
What is the primary focus of the field of consumer behavior?
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What is the first stage of the buyer decision process?
What is the first stage of the buyer decision process?
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What is the purpose of market segmentation?
What is the purpose of market segmentation?
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What is the definition of positioning in marketing?
What is the definition of positioning in marketing?
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What is the outcome of a consumer forming an intention to buy the most preferred brand?
What is the outcome of a consumer forming an intention to buy the most preferred brand?
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What is the main reason for understanding the consumer's needs and buying process?
What is the main reason for understanding the consumer's needs and buying process?
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Study Notes
Understanding Consumer Behavior
- Understanding consumer behavior is crucial in getting more business and creating strong customer relationships.
- It involves studying individuals, groups, or organizations and their processes to satisfy needs and the impacts on consumers and society.
Market-Coverage Strategies
- There are three market-coverage strategies:
- Undifferentiated mass marketing: targets the whole market with one offer, ignoring segments.
- Differentiated segmented marketing: targets several different segments with separate offers for each.
- Concentrated niche marketing: concentrates on one or few segments or niches.
Factors Affecting Consumer Behavior
- Cultural factors:
- Culture: most basic determinant of a person's wants and behavior.
- Subculture: group of people with shared value systems based on life experiences and situations.
- Social class: contains the structure in a society that are relatively permanent and ordered divisions whose members share values, interests.
- Social factors:
- Groups: small groups influence behavior.
- Family roles and status: being a husband, wife, manager, or worker.
- Personal factors:
- Age and life-cycle stages.
- Occupation.
- Economic circumstance.
- Lifestyle.
- Personality and self-concept.
- Psychological factors:
- Motivation: a need becomes a motive when it is aroused to a level of intensity.
- Perception: a motivated person is ready to act based on how he understands the situation.
- Learning: experiences, beliefs, and attitudes.
Buyer Decision Process
- Need recognition: buyer recognizes a need triggered by a stimulus.
- Information search: based on personal and public sources of information.
- Evaluation of alternatives: consumers will evaluate different product and brand options that will deliver the highest level of benefits for them.
- Purchase decision: consumers may form an intention to buy the most preferred brand because he has evaluated all the alternatives and identified the value it will give him.
- Post-purchase behavior: the consumer will assess whether he is satisfied or not with the product.
Market Segmentation, Targeting, and Positioning
- Market segmentation: divides the market into distinct groups of customers (segments).
- Market targeting: selects the most attractive segments to focus on.
- Market positioning: determines how to position your product and make it appealing.
- Targeting: evaluates the various segments and decides how many and which ones to target.
- Positioning: is defined as the company's offering and image to occupy a place in the target market's mind.
- Positioning strategies:
- By product attributes: characteristics of the product or customer benefits.
- By product class: distinguishing yourself from others who offer the same product.
- Product differentiation: physical environment, service, personnel, location, and image differentiation.
Requirements for Effective Segmentation
- (Not provided in the original text)
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Description
Test your knowledge of consumer behavior and understand how individuals, groups, and organizations make purchasing decisions. Learn how to satisfy customer needs and create strong customer relationships. Explore the impact of consumer behavior on society and business.
