Chapter 1 – Consumer Behavior and Marketing Strategy

What is a ​consumer? ​What is ​consumer behavior? (​ Slides)

● Consumer
○ Anyone engaged in the selection, acquisition, or usage of products in the
global marketplace
● Consumer behavior
○ Social Science or field of study that examines the psychological and
behavioral processes undertaken by the consumer in the selection,
acquisition, use and disposal of products, services, experiences, or ideas
in order to satisfy perceived needs or wants

What is ​relationship marketing? ​(Slides)

● A strategic management philosophy that prioritizes the long-term enhancement

of existing customer relationships over new customer acquisition and short term
(transaction) profitability

What is ​cost ​versus ​benefit? ​How does it relate to ​customer value? ​(Slides)

● Cost vs benefit:
○ Cost: what the consumer gives up in time, money, or effort to acquire a
product
○ Benefit: what the consumer receives in return for the cost of acquisition
○ The consumers evaluation of costs vs benefits (positives vs negatives)
yields the consumers perception of value
■ Value: the consumer’s post-consumption evaluation of the
difference between all the benefits derived from a total product and
all the costs of acquiring those benefits

What other disciplines in social science are related to consumer behavior?

(Slides)

● History and management

What is a ​market segment? ​What is a ​target marketing? ​What are the four steps of
marketing segmentation?(​ p. 13, Slides)

● Market segment
○ A portion of a larger market whose needs differ from the larger market
● Target marketing
○ The process of dividing a marketing into clusters of consumers
(Segmenting) based on needs, then concentrating marketing efforts on
one more segments that closely match the firm’s product offerings
(Targeting), and using the marketing mix to position the firm and or it’s
products as the best solution to the targeted consumers’ needs
(Positioning).
● 4 Steps of Marketing Segmentation:
○ Identifying product related need sets
○ Grouping customers with similar need sets
○ Describing each group
○ Selecting an attractive segment to serve (can be more than 1)

What is ​product repositioning? ​(Slides)

● An intentional attempt by the firm to change the psychological position of a

product, brand, or brand image
● Usually means redefining the meaning of the product to the consumer
● Most effective when it involves a redesign of the entire marketing mix to fit the
desired target market

What are the steps of the ​Consumer Decision Process? ​(p. 25 [Figure 1-3], Slides)
Hint: The steps are listed in order in box on the far right of Figure 1-3.

● Problem Recognition
● Information Search
● Alternative Evaluation and Selection
● Outlet Selection and Purchase
● Post Purchase Process
 ​ nd ​lifestyle​? (p. 26)
What are ​self-concept a

● Self concept
○ The totality of an individual’s thoughts and feelings about him or herself
● Lifestyle
○ How one lives including the products one buys, how one uses them, and
what one thinks and feels about them

Chapter 2 – Cross-Cultural Variations in Consumer Behavior

What is ​culture? ​(p. 40, Slides)

● 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

What are ​norms, cultural values, ​and ​sanctions? (​ p. 41 & Slides)

● Norms
○ Specify ranges of appropriate behavior
● Cultural values
○ Widely held beliefs
● Sanctions
○ Penalties for violating norms

What are the ​quartet of institutions ​that influence culture? (Slides)

● Family, School, Church, and Media

What are the major components of ​nonverbal communications? ​(p. 54, Slides)

● Time, Space, Symbols, Relationships, Agreements, Things, Etiquette

What is ​time perspective? ​(pp. 54-56) ​Hint: Understand the meaning and
differences between m​ onochronic & polychronic time perspectives.

● Time perspective
○ Monochromatic: time is seen as a physical object that we can schedule,
waste, lose it and so forth; believing that a person does one thing at a
 time, we have a strong orientation towards the present and short term
future
■ Do one thing at a time
■ Concentrate on the job
■ Take deadlines and schedules very serious
■ Are committed to the job or task
■ Emphasize promptness
■ Are accustomed to short term relationships
○ Polychronic: latin americans, asians and indians view time as less discrete
and less subject to scheduling; view simultaneous involvement in many
activities as natural; people and relationships take priority over schedules,
and activities occur at their own pace rather than a time; orientation
towards the present and past
■ Do many things at once
■ Are highly distractible and subject to interruptions
■ Consider deadlines and schedules secondary
■ Are committed to people and relationships
■ Base promptness on the relationship
■ Prefer long term relationships

What are Hofstede’s Dimensions of Culture (Slides) ​Hint: Focus more on

individualism vs. collectivism than the other dimensions)

● Individualism
○ Individualism: cultural tendency to place high value on self-reliance,
individual initiative, personal achievement, competitiveness, and the
nuclear family
○ Collectivism: cultural tendency to place high value on harmony,
cooperation, conformity, collective achievement, and the extended family
● Masculinity
○ strong
● Power distance
○ The extent to which people accept the fact the principle division of
authority and privilege among different groups within a society
● Uncertainty avoidance
○ Either risk taking or not
● Long-term orientation
○ Future rewards vs short term benefits
 ● Indulgence
○ Enjoying life and having fun vs meeting strict social norms

Chapter 4 – The Changing American Society: Demographics & Social

Stratification

What are the measures that indicate how many babies will be born? (Slides)

● Future fertility
○ Fecundity: the physiologic capability of women to reproduce (more
predictable)
○ Fertility: the actual reproductive performance (less predictable)

What are ​age cohort ​and ​cohort analysis?

​ (p. 117)

● Age cohort: aka a generation, is a group of persons who have experienced

common social, political, historical, and economic environment
● Cohort analysis: the process of describing and explaining the attitudes, values,
and behaviors of an age group as well as predicting its future attitudes values
and behaviors

​ nd what are they comprised of​? (​ pp. 110-117 & Slides)

What are ​demographics a

● Demographics: the size, structure, and distribution of a population

● Components of demographics:
○ Population and size
○ Occupation
○ Education
○ Income
○ Age

What are the major ​American Generations? (​ Depression , Baby Boomers , Gen X ,
Gen Y , Gen Z & Generation Alpha [Slides] ) ​Hint: There are several questions on
the generations. You should know them well enough to recognize them from a
few descriptors (hints); but you don’t have to memorize the slides.
What are ​Xennials? (​ Slides)

● Between generation X and Y

What is the ​Hollingshead Index of Social Position (ISP)? ​(Slides)

● a two-item index that is well developed and widely used to determine social
position