Understanding Consumer Behavior: Factors and Segmentation, Apuntes de Inglés Técnico

¡Descarga Understanding Consumer Behavior: Factors and Segmentation y más Apuntes en PDF de Inglés Técnico solo en Docsity!

Instituto Politecnico Nacional

Escuela superior de comercio y administración

Unidad Tepepan

Consumer

Behavior

Compiled by: ● Teacher: Silvia Elena Osuna Urrea ● Student: Norma Angélica Pérez Pérez ● Student: José Roberto Cancino Magaña Reviewed by: ● Jefe del departamento de Licenciado en Relaciones Comerciales: M en C Eduardo Ponce García

• UNIT I. INTRODUCTION TO THE CONSUMER BEHAVIOUR
• Class 1: What is Consumer Behaviour?
  • Building Customer Value, Satisfaction and Loyalty
  • Evaluation 1:
• Class 2 Customer Perceived Value
  • Market segmentation: to whom are we marketing?
  • Evaluation
• Class 3 Relationship marketing: building bonds with consumers
  • Evaluation
• UNIT II. SOCIO-CULTURAL FACTORS OF THE CONSUMER BEHAVIOR
• Class 4 What influences consumer behavior?
  • Cultural Factors
  • Evaluation
• Class 5 Social Factors
  • Cultural Factors
  • Family
  • Evaluation
• Class 6 Roles and Statuses
  • Personal Factors
  • Evaluation
• UNIT III PSYCHOLOGICAL FACTORS OF THE CONSUMER BEHAVIOR
• Class 7 Personality’s theories
  • Evaluation
• Class 8 Motivation
  • Perception
  • Evaluation
• Class 9 Sensory systems
  • Evaluation
• Class 10 Sensory thresholds
  • Evaluation
• Class 11 Perceptual selection
  • Evaluation
• Class 12 Behavioral learning theories
  • The role of learning in memory
  • Evaluation
• Class 13 Attitudes
  • Evaluation
• Class 14 Attitude models
  • Evaluation
• UNIT IV. THE CONSUMER AND MARKETING
• Class 15 Bases for Segmenting Consumer Markets
  • Geographic Segmentation
  • Demographic Segmentation
  • Psychographic Segmentation
  • Evaluation
• Class 16 Behavioral Segmentation
  • Behavioral variables
  • The conversion model.
  • Evaluation
• BIBLIOGRAPHY

UNIT I. INTRODUCTION TO THE CONSUMER BEHAVIOUR

Class 1: What is Consumer Behaviour?

How many times throughout the day do people make product decisions? If you stop to think about it, many product decisions are made every day, some without much thought. What should I wear? What should I eat? What am I going to do today? Many product decisions are answered routinely every day and they help move the economy of cities, countries and ultimately the world. To define consumer behavior: it is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services. A more in depth definition will also include how that process impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry and economics. Consumer buyer behaviour is considered to be an inseparable part of marketing and Kotler and Keller (2011) state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants. Buyer behaviour has been defined as “a process, which through inputs and their use though process and actions leads to satisfaction of needs and wants”. Consumer buying behaviour has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers. Alternatively, consumer buying behaviour “refers to the buying behaviour of final consumers, both individuals and households, who buy goods and services for personal consumption” (Kumar, 2010, p.218). From marketers’ point of view issues specific aspects of consumer behaviour that need to be studied include the reasons behind consumers making purchases, specific factors influencing the patterns of consumer purchases, analysis of changing factors within the society and others.

Building Customer Value, Satisfaction and Loyalty

Creating loyal customers is at the heart of every business. Managers who believe the customer is the company’s only true “profit center” consider the traditional organization chart in a pyramid with the president at the top, management in the middle, and frontline people and customers at the bottom. Successful marketing companies invert the chart. At the top are customers; next in importance are frontline people who meet serve, and satisfy customers; under them are the middle managers, whose job is to support the frontline people so they can serve customers well; and at the base is top

2. Why do successful marketing companies place the customers at the top in the pyramid?

---

Complete the Traditional and the modern organization chart Top management

---

---

Customers

---

Frontline people

---

Top managemen t

Class 2 Customer Perceived Value

Consumers are more educated and informed than ever, and they have the tools to verify companies’ claims and seek out superior alternatives. How then do customers ultimately make choices? They tend to be value maximizers, within the bounds of search costs and limited knowledge, mobility and income. Customers estimate which offer will deliver the most perceived value and act on it. Whether the offer lives up to expectation affects customer satisfaction and the probability that the customer will purchase the product again. Customer – perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total customer benefit is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the products, services, personnel, and image involved. Total customer cost is the perceived bundle of costs customers expect to incur in evaluating obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychological costs. Customer – perceived value is thus based on the difference between what the customer gets and what he or she gives for different possible choices. The customer gets benefits and assumes costs. The marketer can increase the value of the customer offering by some combination of raising economic, functional, or emotional benefits and/or reducing one or more of the various types of costs. The customer choosing between two value offerings, V1 and V2, will examine the ratio V1:V and favor V1 if the ratio is larger than one, favor V2 if the ratio is smaller than one, and be indifferent if the ratio equals one. Vocabulary Meaning Market offering The product or service that is sold into the marketplace Purchase To buy something; something bought Marketer Someone who works in marketing Costs The expenses involved in doing or making something Income All the money received by a person or company during a given period

● The consumers in the segment will respond in the desired way to the marketing mix designed for them. Demographics Are statistics that measure observable aspects of a population, such as birth rate, age distribution or income. The national statistical agencies of European countries and pan-European agencies such as EuroStat15 are major sources of demographic data on families, but many private firms gather additional data on specific population groups. The changes and trends revealed in demographic studies are of great interest to marketers, because the data can be used to locate and predict the size of markets for many products, ranging from mortgages to baby food. We’ll also consider other important characteristics that are not so easy to measure, such as psychographics – differences in consumers’ personalities and tastes which can’t be measured objectively. For now, let’s summarize a few of the most important demographic dimensions, each of which will be developed in more detail in later chapters. However, a word of caution is needed here. The last couple of decades have witnessed the growth of new consumer segments that are less dependent on demographics and more likely to borrow behavioural patterns and fashions across what were formerly more significant borders or barriers. It is now not so uncommon to see men and women, or grandmothers and granddaughters, having similar tastes. Hence, useful as they might be, marketers should beware of using only demographic variables to predict consumer tastes. Age. Consumers in different age groups have very different needs and wants, and a better understanding of the ageing process of European consumers will continue to be of great importance to marketers as well as public policy decision-makers. While people who belong to the same age group differ in many other ways, they do tend to share a set of values and common cultural experiences that they carry throughout life. Marie Claire, the French magazine that is published in 25 editions and 14 languages, has noticed that its circulation and readership has fallen in past years, due primarily to not keeping pace with its younger readers and their reading habits. In the past, article length was typically nine to ten pages, and what is now desired is two to five pages. Rather than concentrating on serious articles on contemporary women’s issues, the newer and younger readership is looking for something more fun and entertaining. Finding the balance of ‘fun’ (e.g. ‘Four Celebs secrets to fabulous legs’) and ‘serious’ (e.g. ‘The role of the veil in Islamic dress’) has been the challenge in bridging women readers of different age groups. Gender Many products, from fragrances to footwear, are targeted at men or women. Differentiating by sex starts at a very early age – even nappies are sold in pink-trimmed versions for girls and blue for boys. As proof that consumers take these differences seriously, market research has revealed that many parents refuse to put baby boys in pink nappies!

One dimension that makes segmenting by gender so interesting is that the behaviours and tastes of men and women are constantly evolving. In the past most marketers assumed that men were the primary decision-makers for car purchases, but this perspective is changing with the times. Sometimes, the gender segmentation can be an unintended product of an advertising strategy. Wranglers launched a European campaign featuring macho Wild West values such as rodeo riding, after an earlier campaign, featuring a supermodel, had made their sales of jeans to women grow 400 per cent but put men off their brand. Family structure A person’s family and marital status is yet another important demographic variable, since this has such a big effect on consumers’ spending priorities. Young bachelors and newly-weds are the most likely to take exercise, go to wine bars and pubs, concerts and the cinema and to consume alcohol. Families with young children are big purchasers of health foods and fruit juices, while single-parent households and those with older children buy more junk food. Home maintenance services are most likely to be used by older couples and bachelors. Social class and income Websites for women marketing opportunity Segmenting by gender is alive and well in cyberspace. In France, for example, a group of women started the country’s first women’s electronic magazine and web portal called Newsfam.com. These entrepreneurs are hoping to reproduce the success of American sites like iVillage.com and Women.com. To underscore the idea that men and women differ in their tastes and preferences (the French would say vive la différence!), a website for high-tech products called Hifi.com opened a sister site just for women called herhifi.com. It avoids jargon, offers friendly advice and finds ways to make home entertainment systems relevant to women. Probably a sound strategy, considering that six out of every ten new internet users are female.

● Consumption which is specific between different cultural groups (differences in values, lifestyles, behavioral patterns, etc. among different cultures and subcultures). Even then, the problem of specifying the relevant borders arises. Cultural borders do not always follow national borders. Although national borders are still very important for distinguishing between cultures, there may be important regional differences within a country, as well as cultural overlap between two countries. Add to this immigration and the import of foreign (often American) cultural phenomena, and you begin to understand why it is very difficult to talk about European countries as being culturally homogeneous. For example, it is important to distinguish between, say, Dutch society with all its multicultural traits and Dutch culture, which may be one, albeit dominant, cultural element in Dutch society. Furthermore, Dutch culture (as is the case with all cultures) is not a static but a dynamic phenomenon, which changes over time and from contact, interaction and integration with other cultures. Vocabulary Meaning Market segment Part of a market; a group of costumers with specifics needs, defined in terms of geography, age, sex, in come… Marketing mix The set of all the various elements in a marketing program, and the way a company integrates them. Achievement Something successfully accomplished or performed. Hierarchically Any system of persons or things ranked one above another. Consumer profile A description of the characteristics of the consumers of a particular product, in terms of age, class, in come, etc…

Evaluation 2

1. Name some aspects that contribute to form the CPV.

---

---

---

2. Write the variables for each market segmentation category

Category Variables

Behavioural Geographics Demographics Psychographic

Database marketing A systematic approach to the gathering, consolidation, and processing of consumer data (both for customers and potential customers) that is maintained in a company's databases. Trend A tendency or direction (in some aspect of human behaviour) Brands A product that is distinguished from those of competitors by a name, sign, symbol, design etc.

Evaluation 3

1. Match the columns. Write the letter inside the parenthesis.

1. ( ) Commerce a) A systematic approach to the gathering, consolidation, and processing of consumer data (both for customers and potential customers) that is maintained in a company's databases.
2. ( ) Client b) The set of all the various elements in a marketing program, and the way a company integrates them.
3. ( ) Trend c) Something successfully accomplished or performed
4. ( ) Marketing d) To buy something; something bought.
5. ( ) Brands e) All the money received by a person or company during a given period.
6. ( ) Market segment f) Working or acting together willingly for a common purpose or benefit.
7. ( ) Product g) Trade: the buying and selling of goods, and all related activities.
8. ( )Marketing mix h) Part of a market; a group of costumers with specifics needs, defined in terms of geography, age, sex, in come.
9. ( ) Consumer profile i) Something made, manufactured or produced by a mechanical, industry or natural process; anything capable of satisfying a want or a need. 10.( ) Achievement j) A product that is distinguished from those of competitors by a name, sign, symbol, design.

11.( ) Purchase k) The expenses involved in doing or making something. 12.( ) Co-operative chain l) A person or organization that hires professional services. ( of a lawyer, advertising agency, etc) 13.( ) Database marketing m) A description of the characteristics of the consumers of a particular product, in terms of age, class, in come, etc. 14.( ) Costs n) A tendency or direction ( in some aspect of human behaviour) 15.( ) Income o) The process of identifying and satisfying consumers` needs desires.

UNIT II. SOCIO-CULTURAL FACTORS OF THE CONSUMER BEHAVIOR

Class 4 What influences consumer behavior?

Consumer behavior is the study of how individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Marketers must fully understand both the theory and reality of consumer behavior. A consumer’s buying behavior is influenced by cultural, social, and personal factors, cultural factors exert the broadest and deepest influence.

Cultural Factors

Culture, subculture, and social class are particularly important influences on consumer buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. Through family and other key institutions, a child growing up in the United States is exposed to the following values: achievement and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness. A child growing up in another country might have a different view of self, relationship to others, and rituals. Marketers

Vocabulary Meaning Social class Abroad group in society having common economic, cultural, or political status. Racial Groups A set of individuals whose identity as such is distinctive in terms of physical characteristics or biological descent. Demographic niches Is the subset of the market on which a specific product is focused.

Evaluation 4

1. - Choose the correct words to complete the text below:

Personal Factors Services Organizations

Consumer Behavior Marketers

What influences consumer behavior? Consumer behavior is the study of how individuals, groups, and __________select, buy, use and dispose of goods, ________, ideas, or experiences to satisfy their needs and wants. __________must fully understand both the theory and reality of _________________. A consumer’s buying behavior is influenced by cultural, social, and ______________, cultural factors exert the broadest and deepest influence.

Class 5 Social Factors

In addition to cultural factors, a consumer’s behavior is influenced by such social factors as reference groups, family, and social roles and statuses. a) A person’s reference groups consist of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior.

1. Groups having a direct influence on a person are called membership groups. i. Some memberships groups are primary groups such as family, friends, neighbors, and co- workers with whom the person interacts fairly continuously and informally. ii. Some membership groups are secondary groups such as religious, professional groups that tend to be more formal. b) People are significantly influenced by their reference groups in at least three ways:

1. Reference groups expose an individual to new behaviors and lifestyles, influencing attitudes and self-concept.
2. They create pressures for conformity that may affect actual product and brand choices.
3. People are also influenced by groups to which they do not belong: a. Aspirational groups are those a person hopes to join. b. Dissociative groups are those whose values or behavior an individual reject. The buyer evaluates these elements together with the monetary cost to form a total customer cost. c. Manufacturers of products and brands where group influence is strong must determine how to reach and influence opinion leaders in these reference groups. d. An opinion leader is the person in informal, product-related communications who offers advice or information about a specific product or product category. e. Marketers try to reach opinion leaders by identifying demographic and psychographic characteristics associated with opinion leadership, identifying the media read by opinion leaders, and directing messages at opinion leaders.

Cultural Factors

Culture, subculture, and social class are particularly important influences on consumer buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. Through family and other key institutions, a child growing up in the United States is exposed to the following values: achievement and success, activity, efficiency and practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, and youthfulness. A child growing up in another country might have a different view of self, relationship to others, and rituals. Marketers must closely attend to cultural values in every country to understand how to best market their existing products and find opportunities for new products. Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, racial groups, and geographic regions. When subcultures grow large and affluent enough, companies often design specialized marketing programs to serve them. Culture is the fundamental determinant of a persons’ wants and behaviors. Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, racial groups, and geographic regions. a) Multicultural marketing grew out of careful marketing research that revealed that different ethic and demographic niches did not always respond favorable to mass-market advertising.