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BUAD473 EXAM 1Chapter 1:- Consumer behavior: a set of decisions made about the acquisition, use, or disposal of products, services, activities, experiences, people, or ideas by human decision making units over time.o How a person buys productso i.e. dipping chocolate placed next to strawberries in storeso One or more decision making entitieso Includes how we use time- Offering: a product, service, activity, experience, people, or idea offered by a marketing organization to consumers.o Acquiring: process by which a consumer comes to own an offering. Can be buying, renting, leasing, trading, or sharing Acquisition behavior can be affected by deadlines (i.e. have a gift card/coupon and waiting until last possible second to use itbecause you don’t want to miss out on best purchase), interruption during purchase, or consumers experiencing a loss/having a negative experienceo Using: process by which a consumer uses an offering. Important for marketers must be sensitive to when consumers are likely to use a product, whether they find it effective, whether they control their consumption of it, and how they react after using it – spreading pos or neg word of mouth?o Disposition: the process by which a consumer discards an offering. Marketers see profit opportunities in addressing disposition concerns i.e. eco friendly/biodegradable products.- Decision Making Units: information gatherer, influencer, decider, purchaser, usero Many roles can be fulfilled by one individual while engaging in consumer behavior and a group can engage in consumer behavior together. i.e. car purchasing as a family*Entire markets are designed around linking one consumers disposition decision to other consumer acquisitions.Consumer Behavior and Emotions- Researchers have studied the powerful role that emotions play in consumer behavior.- Pos/neg emotions such as hope, fear, regret, guilt, embarrassment, and general moods can affect how consumers think, the choices they make, how they feel after making a decision, what they remember, and how much they enjoy an experience.o i.e. love can sometimes describe how we feel about certain brands/possessions1What affects consumer behavior?- Cultural environment affects what motivates consumers, how they process information, and the kinds of decisions they make.- Age, gender, social class, ethnicity, families, friends, and other factors affect consumer values and lifestyles and then influence the decisions that consumers make.1. The psychological corea. Motivation, ability, and opportunityi. Jason is motivated to decide where to go on vacationb. Exposure, attention, perception, and comprehensioni. Therefore he will make sure he is exposed to relevant information. He won’t pay attention to all vacation info, so he will be exposed to info he will never consciously perceive. He has to determine and identify what he has perceived to comprehend the information (what country/mountain resort is involved).c. Memory and knowledgei. To recall information later, it depends on Jason’s motivation, ability, and opportunity. Jason may “store” info in his memory, but his decision will be based only on info he can retrieve from memory (**important key point for marketers trying to create strong brand images).d. Forming and changing attitudesi. Jason will form attitudes towards vacations he categorized and comprehended. His attitudes could change as he encounters new information. Attitudes DO NOT always predict behavior! i.e. pos attitude towards the gym doesn’t mean you’ll go2. The process of making decisionsa. Problem recognition and the search for informationi. Happens when we realize unfulfilled need. Jason realized he needed to go on a vacation and then exposed himself to info about it.b. Making judgments and decisionsi. high effort decisions (investing a lot of time to exert to make it) vs. low effort decisions (i.e. which toothepaste to bring). High effort decisions will result in lasting attitudes and memories because much thought was put into it while low effort engages in less info search and processes info less deeply– less enduring attitudes/memories.c. Making post decision evaluationsi. Evaluating whether expectations weren’t met, were met, or were surpassed3. The consumer’s culture: External Processesa. Culture: typical or expected behaviors, norms, and ideas that characterize a group of people.2b. Reference group: a group of people consumers compare themselves with for information regarding behavior, attitudes, or values. You share your values with this group and respect their opinions. Word of mouth referral comes from within these groups. Make us feel as if we should behave in a certain way.c. Diversity influences: regional, ethnic, and religious groups that directly or indirectly affect the decisions we make. Age, gender, and education background can also affect his impressions of what constitutes a “good vacation”.d. Household and social class influencese. Values, personality, and lifestyles4. Consumer behavior outcomes and issuesa. Symbols: external signs that consumers use to express their identity. b. Consumer behaviors can diffuse through a market: Jason may tell friends about prospective trip and this may influence their vacation decisions. It can also spread negative information – can have pos and neg effects for marketers.c. Consumer behavior, ethics, and responsibilityWho benefits from the study of consumer behavior?- Marketing managers: need consumer insights to determine what consumer and clients value.o Marketing: the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings with value for individuals, groups, and society.- Ethicists and advocacy groups: marketer’s actions sometimes raise important ethical questions. Concerned consumers sometimes join advocacy groups to creative a public awareness.- Public policy makers and regulators: its crucial that legislators, regulators,and government agencies develop policies and rules to protect consumers from unfair, unsafe, or inappropriate marketing practices. Likewise, marketer’s decisions are affected by these actions. Understanding how consumers comprehend info is important for guarding them against misleading advertising.- Academics: important to be able to pass along this consumer behavior knowledge to students who are learning about it in school. Academic research is useful for all stakeholders of consumer behavior.-

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