Iñigo Lamadrid Sebastián

Market and Consumer Behavior

1.- What are the two types of market?

R/. Consumer market and industrial market.

2.- What are the steps of the consumer decision making process?

1. Problem recognition.
2. Information search.
3. Alternatives evaluation.
4. Purchase decision.
5. Post-purchase decision evaluation.

3.- What are the steps of the customer journey?

1. Consciencia: El cliente se da cuenta que tiene una necesidad.

a. Boca a boca
b. Radio, TV, Gráfica impresa
2. Consideración: El cliente evalúa las alternativas.
a. Publicidad online
b. E-commerce
3. Compra: El cliente compra el producto.
a. Tienda
b. Online
4. Retención: La marca retiene al cliente y el cliente puede volver a comprar.
a. Foros
b. Conocimiento de base
5. Recomendación: El cliente satisfecho, recomienda la marca o el producto.
a. Promociones
b. Redes sociales

4.- What happens in the problem recognition?

R/. Perceive a difference between the ideal and real situations, which are sufficient to
generate a decision (unsatisfied need).

5.- How can the information search be?

● Internal: dig into your memory experiences with products or brands.

● External: when experience or knowledge is insufficient
○ Personal sources: Family and friends.
○ Public sources: Consumer magazines or articles.
○ Market dominated sources: Company information (websites), social media
and influencers.

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6.- What happens in the alternatives evaluation?

R/. Prospective buyers have developed criteria for what they want in a product, now they
weigh their prospective choices against comparable alternatives. Alternatives may present
themselves in the form of lower prices,additional product benefits, product availability, or
something as personal as color or style options.

7.- What happens in the purchase decision?

R/. Once they have gathered all the facts, including feedback from previous customers,
consumers should arrive at a logical conclusion on the product or service to purchase and
decide where, when and how to buy.

8.- What happens in the post purchase decision?

R/. This part of the consumer decision-making process involves reflection from both the
consumer and the seller.

● Did the purchase meet the need the consumer identified?

● Is the customer happy with the purchase?
● How can you continue to engage with this customer?

9.- Do the five stages of the buying decision process always apply?

R/. It depends on the level of involvement (personal, social and economic).

10.- What factors are present in personal factors?

● Demographics
● Life stage
● Lifestyle
● Personality

11.- What factors are present in social factors?

● Culture: Refers to the set of values, ideas and attitudes that members of a group
learn and share.
● Subculture: Is called each of the subgroups of a national culture with its own ideas,
attitudes and values.
● Family: The influence of the family on consumer behavior stems from three fronts:
○ Socialization as a consumer.
○ Stages of the family life cycle: Refers to the different phases a family goes
through, each with identifiable buying behaviors.
○ Decision-making within the family or household.
● References groups: They are people to whom the individual turns as a basis for
evaluation or as a source of personal standards.
■ Membership group: You belong and have the same characteristics.
■ Aspirational group: You want to belong to that group.

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■ Dissociative group: You don’t want to belong to that group.

○ Worth of Mouth: Publicidad de boca en boca (must effective and efficient).
■ When it's positive: Reaches up to 3 people.
■ When it's negative: Reaches up to 9 people.
○ Infuencers: You pay someone to promote your product or brand.
● Social class: Relatively permanent and orderly divisions of society, whose members
share similar values, interests, and behaviors.

12.- What factors are present in psychological factors?

● Motivation: Behavioral driving force for the satisfaction of a need.

● Personality: It refers to the behaviors or constant responses of the person to
recurrent situations. Personality traits enduring characteristics of the person or their
relationship with others.
● Perception: Process by which we select, organize and interpret information to form a
meaningful picture of the world.
● Learning: It consists of the behaviors that result from repeated experiences and
reasoning (brand loyalty).
○ Impulses: need that generates an action in the individual.
○ Cues: stimulus or symbol perceived by the consumer.
○ Responses: action taken to satisfy the stimulus.
○ Reinforcements: consists of the reward.
● Beliefs and attitudes: Beliefs are learned predisposition to respond to an object or
class of objects consciously, favorably, or unfavorably. Attitudes are formed based on
learned values and beliefs. Subjective consumer perception of how good a product or
brand is relative to different attributes.
● Lifestyle: It’s the way of living that is identified with the way in which people use their
time and resources, what they consider important and what they think of themselves
and the world.

13.- What factors are present in situational factors?

● Purchase task: What’s the objective of buy something.

● Social environment: Who will you go shopping with influences the decision.
● Physical environment: Take into account if the store looks good, smells good, etc,
so you can have a positive or negative experience.
● Temporal effects: You buy different things depending on the time that you have and
the moment you go shopping.
● Background state: Feeling influences what you’re going to buy.

Environmental Scanning

1.- ¿What’s environmental scanning?

R/. It’s the process of continuously obtaining information about events that occur outside the
organization in order to identify and interpret possible trends.

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2.- ¿What are the trends of environmental scanning?

R/. Social, economic, technological, competitive and regulatory.

3.- What includes social trend?

R/. Demographics, generations, types of family, migration, changes in occupation and

healthy eaters.

4.- What’s the economic trend?

R/. It refers to the economy translated into the income, expenses and resources that affect a
company or household.

5.- What are the two aspects of the economic forces?

R/. Macroeconomics that is the perspective of the market and microeconomics that is the
perspective of consumer income.

6.- What’s the gross income?

R/. Total amount of money a person, household, or family earns.

7.- What’s the disposable income?

R/. The money left over after taxes to pay for food, housing, clothing, and transportation.

8.- What’s the discretionary income?

R/. The money left over after paying taxes and buying basic goods, money to buy luxury
goods.

9.- What’s the technological trend?

R/. Technology consists of the inventions and innovations contributed by applied science and
by research in the field of engineering.
10.- What are some of the technological trends of 2023?

R/. Metaverso, machine learning, artificial intelligence, virtual reality, Web 3.0, worldwide
connection, loT and intelligent robotics.

11.- What are the effects of technology?

● Cost reduction in technology – quality, service and relationships.

● Create value by creating new products.
● Technology changes existing products and the way they are manufactured.

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12.- What’s the competitive trend?

R/. Refers to other companies that could offer a product that meets the needs of a specific
market.

13.- What are the types of competition?

R/. Pure, monopolistic, oligopoly and pure monopoly.

14.- What's pure competition?

R/. Each company has a product similar to the others.

15.- What’s monopolistic competition?

R/. Many vendors compete with their products in a substitution environment.

16.- What’s oligopoly competition?

R/. Occurs when a few companies control much of the industry's sales.

17.- What’s pure monopoly competition?

R/. When a single company sells the product in question.

18.- What’s the regulatory trend?

R/. Regulation consists of the restrictions that state and federal laws place on businesses
with respect to their activities, and exists to protect companies and consumers.

Market Segmentation

1.- What’s market segmentation?

R/. It consists of dividing potential buyers into groups that have similar needs, similar
characteristics and respond similarly to a marketing action.

2.- What are the steps for segmentation?

1. Objectives (set the objective).

2. Divide the market into groups (types of segmentation).
3. Validate the segment (buyer persona).
4. Marketing actions.

3.- What are the types of segmentation?

R/. Demographic, geographic, psychographic and behavioral.

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4.- What’s the demographic type?

R/. This type of segmentation takes into account factors such as age, gender, income,
education level, occupation, marital status, ethnicity and religion.

5.- What’s the geographic type?

R/. This segmentation approach recognizes that consumer preferences, needs and
behaviors can vary based on their geographic location. It considers variables such as
countries, regions, states, cities or even specific neighborhoods to define market segments.
It also takes into account factors like climate, cultural differences, population density, urban
or rural areas and economic factors specific to each geographic location.
6.- What’s the psychographic type?

R/. This segmentation takes into account factors such as personality traits, social class,
lifestyles, interests, opinions and activities.
Status, exclusivity and prestige.

7.- What’s the behavioral type?

R/. Based on certain observable actions or attitudes of prospective consumers such as

where they shop, what benefits they seek, how often they shop and why they shop. It’s like
pattern consumption.

8.- What’s the buyer persona?

R/. It’s a fictional representation of an ideal customer based on research and data about real
customers. The persona is typically given a name, photo and detailed description that brings
the fictional character to life.

9.- What’s positioning?

R/. Is the place a product or brand occupies in consumers' minds (perception) in relation to
important attributes that are compared to competing products or brands. It must match the
value proposition.

10.- What are some basis for positioning?

R/. The attribute, price, quality, use or application and competitor.

11.- What’s the perceptual map?

R/. It’s a graphic way of representing the location of products or brands in the minds of
customers in two or more dimensions.