Consumer Behavior Final Exam Review.pdf

I take the final test country with highest savings

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I take the final test. Country with highest savings: Luxembourg Lowest savings: Greece Chapter 14 - Psychographics A description of consumers based on their psychological and behavioral characteristics 1. Values - abstract, enduring beliefs, about what is right /wrong, important, or good/bad 2. Personality - an internal characteristic that determines how individuals behave in various situations 3. Lifestyle - people’s patterns of behavior, represented by activities, interests,and opinions (AIOs) Understand the value system Global Value A person’s most enduring, strongly held, and abstract value (e.g. freedom). Terminal Value Highly desired end states (e.g. social recognition) Instrumental Value The values needed to achieve the desired end states (e.g. cheerfulness) Domain Specific Value Values that may only apply to a specific area of activities (e.g. family) Materialism is a domain specific value bc it relates to the way that we view the acquisition of material goods Understand the concept of materialism - placing importance on money and material goods Consumerism & Its impact on Individual’s Behavior
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On a 5-point scale (1-least, 5-most) Think as a consumer (vs. individual) in a water crisis. The Concept of Individualism Individualism vs. Collectivism E.g. Dual entitlement & Price Fairness A product increase from $10 to $15 as costs arise. However, when costs are reduced, firms can still charge at $15. Works in individualism culture but maybe not collectivism culture Understand the comparison between individualism vs. collectivism Personality Internal characteristics that determine how people behave in various situations Patterns of behavior, tendencies, qualities, or personal dispositions What makes us different from one another Consistently influences the way in which we respond to our environment Reflected in consumption choices “Big 5” personality traits Neuroticism - A tendency to easily experience unpleasant emotions such as anxiety, anger, or depression. Extroversion - Energy, surgency, and the tendency to seek stimulation and the company of others. Agreeableness - A tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others. Conscientiousness - A tendency to show self-discipline, act dutifully, and aim for achievement. Openness to Experience - Appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious Understand Lifestyles Know the components AIOS Activities, interests, and opinions (AIOs) - an individual’s lifestyle What is 80/20 Rule? 80% of effects come from 20% of causes Chapter 15 - Innovation Innovation An offering that is perceived as new by consumers within a market segment and that has an effect on existing consumption patterns • Definition (narrow vs. broad) • Innovation types 1. Continuous: “Limited effect on existing consumption patterns” 2. Dynamic Continuous: “Pronounced effect on consumption patterns… often involves new technology
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