Collective decision making

where more than one person is involved in the purchasing process for products or services that may be used by multiple consumers

Organizational decision making

purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale.

Household decision making

•       Family household: at least 2 people living together who are related by blood or marriage

•       Nuclear family: mom, dad, and at least 1 child

•       Extended family: 3 generations living together

•       Usually grandparents, but can also include uncles, aunts, cousins, etc.

Sandwich generation

Adults care about kids and parents

Boomerang kids

Return home to live with parents. Spend more money on entertainment and less on needs

Family life cycle

•       Family life cycle (FLC) concept combines trends in income and family composition with change in demands placed on income

•       As we age, our preferences/needs for products and activities tend to change

Consumer socialization 

process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace

5 stages of consumer development

Observing, making request, making selections, making assistant purchases, making independent purchases

Standard of living trend

The average American’s standard of living continues to improve due to:

•       An increase of women in the workforce

•       Increases in educational attainment

Behavioral economics

concerned with “human” side of economic decisions

Consumer confidence

the extent to which people are optimistic or pessimistic about the future health of the economy

Discretionary income

money available to a household over and above that required for a comfortable standard of living

Social class

a consumer’s standing in society

Homogamy

We tend to marry people in similar social class

Social stratification

social arrangements in which some members get more resources than others by virtue of relative standing, power, or control

Ascribed vs. achieved status

Achieved = earned; Ascribed = Inherited

Mass class

Upper-upper class, lower-upper class, upper middle class, lower middle class, upper lower class, lower lower class

Social mobility

passage of individuals from one social class to another

Occupational prestige

A person’s occupation tends to be strongly linked to one’s use of social resources and time

Taste culture 

differentiates people in terms of their aesthetic and intellectual preferences

Cultural capital

•       set of distinctive and socially rare tastes and practices

•       “Refined” behavior that admits a person into the realm of the upper class

•       Etiquette lessons and debutante balls

people’s desire to provide prominent visible evidence of their ability to afford luxury goods

Parody display

deliberately avoiding status symbols

Subcultures

members share beliefs and common experiences that set them apart from others

the process of movement and adaptation to one’s country’s cultural environment by a person from another country

4 conflicts of teen market

•        Autonomy vs. belonging:

•        break from family but attach to peers

•        Rebellion vs. conformity:

•        rebel against social standards but want to be accepted by society

•        Idealism vs. pragmatism:

•        view adults as hypocrites and see themselves as sincere

•        Narcissism vs. intimacy:

•        obsessed with own needs but want to connect with others

Digital natives

First to grow up with computers in their homes, in a 500-channel TV universe

Generation Y

people born between 1977 and 1994

•        Multi-taskers with cell phones, music downloads, IM on Internet

Generation X (baby busters)

-        Consumers born between 1966 and 1976 (33-43)

-        Today’s Gen Xer is both values-oriented and value-oriented”

-        Desire stable families, save portion of income, and view home as expression of individuality

Baby Boomers

•        Consumers born between 1946 and 1965 (44-63)

•        “Woodstock generation” created a revolution in style, politics, consumer attitudes

•        Active and physically fit

•        Currently in peak earning years

•        Consumers ages 35-44 spend the most on housing, cars, and entertainment

•        Food, apparel, and retirement programs

•        “Midlife crisis” products

The Gray market

•        Born before 1945 (64+)

•        Traditionally neglected  by marketers

•        People are now living longer/healthier lives

•        “Zoomers” = active, interested in life, enthusiastic consumers with buying power

•        Spending increasing amounts on exercise facilities, cruises, tourism, cosmetic surgery and university courses

•        Most brand loyal of any age group

•        Fastest growing group of Internet users

rules dictating what is right or wrong

•       Customs: norms handed down from the past that control basic behavior

•       Mores: custom with a strong moral overtone

•       Conventions: norms regarding the conduct of everyday life

•       Mores: custom with a strong moral overtone

Myth

a story containing symbolic elements that represent the shared emotions/ideals of a culture

•       Sacred consumption: involves objects and events that are set apart from normal activities that are treated with respect or awe

•       Profane consumption: involves consumer objects and events that are ordinary and not special