Consumer Behavior

Market Segmentation {Ans: The process of grouping a market (i.e. customers, stores, products) into smaller subgroups}Variable {Ans: Any quantity or quality that can take on a range of values.}Good market segmentation has these qualities: {Ans: - Similarity of observations within segments - Difference between observations in different segments - Stability over time - Each segment is large enough to be relevant - Each segment must make sense & be actionable}Just Noticeable Difference {Ans: The incremental change required to detect a difference between two similar stimuli How big of a price decrease is noticed? Is it enough for people to take action?}Absolute Sensory Threshold {Ans: The minimum level of stimuli needed to experience sensation (too small to see something, too soft to hear it)}Consumer Journey - AIDA {Ans: 7 RINGS Awareness - I see it Interest - I like it Desire - I want it Action - I got it}