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Consumption is the sole end and purpose of all production, and the welfare of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer Consumer sovereignty - the idea that consumers’ needs and wants determine the shape of all economic activities. Con...

Consumption is the sole end and purpose of all production, and the welfare of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer Consumer sovereignty - the idea that consumers’ needs and wants determine the shape of all economic activities. Consumption is the process by which goods, services, or ideas are used and transformed into value. The experience is the product as much as or more than the actual food and beverage. Consumption: * Driven primarily by basic needs and practical desires * its impact depends on the balance and sustainability of the goods consumed * seen as a normal part of daily life Consumerism - is a movement that promotes the interests of the purchaser of goods or services. * Driven by psychological, social, and cultural factors * excessive and conspicuous consumption beyond our basic needs * often associated with negative impacts, such as promoting materialism, contributing to overconsumption, and leading to resource depletion Consumer behavior is an ongoing process, not merely what happens at the moment a consumer hands over money or a credit card and, in turn, receives some good or service. Consumer behaviour models: Traditional Learning: how consumers learn and make choices based on their primary needs. Economic: consumers try to meet their needs while spending as few resources (e.g. money) as possible. Psychoanalytical: individual consumers have deep-rooted motives, both conscious and unconscious, that drive them to make a purchase. Sociological: purchases are influenced by an individual's place within different societal groups Contemporary Engel-Kollat-Blackwell (EKB) Model: five-stage decision process that consumers go through before purchasing: need recognition, information search, evaluation, purchase, and post-purchase behavior. The Black Box Model (Stimulus-Response model) says that customers are individual thinkers who process internal and external stimuli to make purchase decisions. Hawkins-Stern Model: Focuses on impulsive purchases, suggesting that visual cues and sudden urges can trigger unplanned buying. Nicosia Model: how advertising messages influence consumer attitudes and decisions. Webster and Wind Model: B2B buying behavior. Applications for consumer behaviour: marketing strategy (product, price, distribution, promotion, service) Regulatory policy Social marketing Informed individuals Consumer research, also known as market research or consumer insights research, is defined as the process of collecting and analyzing information about consumers’ preferences, behaviors, and attitudes toward products, services, brands, or market trends. Projective techniques are designed to measure feelings, attitudes, and motivations that consumers are unable or unwilling to reveal otherwise. They are based on the theory that the description of vague objects requires interpretation, and this interpretation can be based only on the individual’s own attitudes, values, and motives. surveys: The collection of information from a sample of individuals through their responses to questions. Experimentation involves changing one or more variables (product features, package color, advertising theme) and observing the effect the change has on another variable (consumer attitude, repeat purchase behavior, learning). Scaling is a technique used for measuring qualitative responses of respondents such as those related to their feelings, perception, likes, dislikes, interests and preferences. PSYCHOLOGICAL FACTORS Perception is the process of selecting, organizing, and interpreting information. This process includes the perception of select stimuli that pass through our perceptual filters, which are organized into our existing structures and patterns, and are then interpreted based on previous experiences. Sensory marketing (sense marketing or sense appeal advertising) refers to techniques deployed by brands that engage a potential customer through their five senses – sight, sound, touch, smell, and taste. Sensory thresholds Absolute thresholds of perception - level of stimuli intensity below which people do not know of a stimulus’s existence, and above which they become aware of it. The line between something and nothing. Differential thresholds of perception - The minimal difference that can be detected between two stimuli. Also known as the j.n.d. (just noticeable difference). Perceptual mapping - A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands. Information processing is a series of activities by which stimuli are perceived, transformed into information, and stored. Selective exposure is a theory within the practice of psychology, often used in media and communication research, that historically refers to individuals' tendency to favor information that reinforces their pre-existing views while avoiding contradictory information. The theory is primarily attributed to Leon Festinger, a social psychologist who introduced the concept as part of his broader cognitive dissonance theory in the 1950s. Learning is any change in the content or organization of long-term memory or behavior and is the result of information processing. Conditioning - The process through which consumers learn to associate a particular response with a specific stimulus. Classical conditioning attempts to create an association between a stimulus (e.g., brand name) and some response (e.g., behavior or feeling). Operant conditioning attempts to create an association between a response (e.g., buying a brand) and some outcome (e.g., satisfaction) that serves to reinforce the response. Motivation - The psychological energy, or driving force, that pushes us to pursue our goal(s). Attitudes - Relatively enduring evaluation of something, where the something is called the attitude object. Multi-Attribute Attitude Model: Framework that can be used to measure consumers' attitudes towards specific products or services. The model identifies how consumer attitudes are informed by measuring and evaluating the attitudes of a product, the beliefs about those attributes, and the relative importance we give those attributes. 3 PASKAITA PERSONAL FACTORS Personality - is the enduring characteristics and behavior that comprise a person’s unique adjustment to life, including major traits, interests, drives, values, self-concept, abilities, and emotional patterns. Why do personality traits matter in marketing? Targeting & positioning Product positioning Brand personality Predicting consumer behavior Customization of marketing message Theories of personality Freudian theory - unconcious needs or drives are at the heart of human motivation Neo-Freudian theory - social relationships are fundamental to the formation and development of the personality Trait theory - a quantative approach to personality as a set of psychological traits Multitrait personality theory identifies several traits that, in combination, capture a substantial portion of the personality of the individual. Trait theory takes a lexical approach to personality, which assumes that traits can be described using single adjectives or descriptive phrases. Single-trait theories emphasize one personality trait as being particularly relevant to understanding a particular set of behaviors. Consumer Ethnocentrism reflects an individual difference in consumers’ propensity to be biased against the purchase of foreign products. Need for Cognition reflects an individual difference in consumers’ propensity to engage in and enjoy thinking. Consumers’ Need for Uniqueness reflects an individual difference in consumers’ propensity to pursue differentness relative to others through the acquisition, utilization, and disposition of consumer goods. Brand personality is a set of human characteristics that become associated with a brand. Emotions are strong, relatively uncontrolled feelings that affect behavior. Emotions are strongly linked to needs, motivation, and personality. Types of emotions Consumer coping Coping involves consumer thoughts and behaviors in reaction to a stress-inducing situation designed to reduce stress and achieve more desired positive emotions. Self-concept is defined as the totality of the individual’s thoughts and feelings having reference to himself or herself as an object. It is an individual’s perception of and feelings toward him- or herself. In other words, your self-concept is composed of the attitudes you hold toward yourself. The mere ownership effect, or the endowment effect, is the tendency of an owner to evaluate an object more favorably than a nonowner Brand engagement refers to the extent to which an individual includes important brands as part of his or her self-concept. Lifestyle A - Activities I - Interests O - Opinions Lifestyle marketing is a type of marketing that aims to create a sense of connection between the consumer and the product by emphasizing the lifestyle that the product or service can help to create or improve. The family lifecycle represents the various stages we pass through from early adulthood to retirement. At each stage of the lifecycle consumer preferences are defined by different needs and wants and influenced by different forces. The FLC concept is a model that divides a person’s or family’s life into various stages, each characterized by specific demographic, psychographic, and consumption patterns Family decision-making is the process by which decisions that directly or indirectly involve two or more family members are made. A group is defined as two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent. A reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. Social influence occurs when our beliefs and behaviors begin to match those of the people, we're closest to. This may be subtle, or it may be something we seek out by asking our friends for their opinions. Informational social influence is the change in opinions or behaviour that occurs when we conform to people who we believe have accurate information. Normative social influence when we express opinions or behave in ways that help us to be accepted or that keep us from being isolated or rejected by others. Social comparison theory asserts that this process occurs as a way of increasing the stability of one’s selfevaluation, especially when physical evidence is unavailable. Opinion leadership. This individual is an opinion leader, a person who is frequently able to influence others’ attitudes or behaviors. Demographics - Describe a population in terms of its size, distribution, and structure. The Gini coefficient measures the extent to which the distribution of income within a country deviates from a perfectly equal distribution. A coefficient of 0 expresses perfect equality, where everyone has the same income, while a coefficient of 100 expresses full inequality, where only one person has all the income. Social stratification - a particular form of social inequality categorizing members of a society into distinct groups based on their socioeconomic status. 5 PASKAITA 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. Globe Project Global Leadership and Organizational Behavior Effectiveness (GLOBE) project - a large-scale research program involving the efforts of a team of 160 scholars. The study explored cultural values and their impact on organizational leadership in around 60 countries. The GLOBE study developed a scale of nine cultural dimensions based on a survey of 17,000 middle managers in three industries: banking, food processing, and telecommunications. World Value Survey The World Value Survey (WVS) is a global study of sociocultural changes conducted by a network of social scientists at leading universities worldwide. This survey assesses people's values and beliefs and covers nearly 90 % of the world's population. Nonverbal communication systems are the arbitrary meanings a culture assigns actions, events, and things other than words. Rites of passage - a culturally significant event or ritual that (often) marks an important time or transition in one's life De-ethnicization: when a product becomes part of "mainstream society" (dominant culture) through the removal or disassociation with its original ethnic group (or culture). Sacralization describes the process of everyday objects, people, or events developing sacred status (the locks of hair from my baby’s first haircut. De-sacralization - the removal of sacred symbolism when an object becomes absorbed by mainstream society (dominant culture). Sacred consumption involves objects and events that are ‘set apart’ from normal activities, and are treated with some degree of respect or awe. They may or may not be associated with religion, but most religious items and events tend to be regarded as sacred. Profane consumption involves consumer objects and events that are ordinary, everyday objects and events that do not share the ‘specialness’ of sacred ones. Counter culture - a type of subculture that actively opposes and rejects norms, values, and symbols that reflect the larger culture in which it exists.