Module 3 Flashcards
What is consumer behaviour?
-The study of the process involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs or desires
-The “psychology of consumption”
-Looks at both the buyer and the act of purchase
-Includes: Information research, decision making, purchase, product disposal
Explain the consumer market
-Consumer behaviour: Individuals and households buying goods and services
-Goals: Create marketing programs which trigger desired behaviour
What has research found in consumers?
-Have a need for uniqueness that is expressed through their consumption
-Have a need for touch and prefer tactile information
-Consumers are variety seekers, especially when they are with others or think others are watching
-Consumers are loss averse: drive to avoid losses at all costs is so strong that consumers will often choose the option with the smallest immediate loss (Also quickly regret the decision once the purchase is made)
-Consumers are extreme averse: tend to make choices in the middle
-If consumers are distracted, they will choose tastier food options but if they are not distracted, they will choose what is healthier
-If consumers can’t easily recall a product, they will assume it must be a bad product
-Too much choice can paralyze our decision making as consumers or make us more dissatisfied
What is the meaning of consumption?
-People often buy products not only for what they do, but also what they mean
-If we develop relationships with brands, it’s because of the meaning they have: Image/personality, define our place in modern society, help us form bonds iwth others who share similar preferences
What are the five situational influences?
-Purchase task (gift buying, special occasion, etc.)
-Social surroundings (out with friends, in a fancy restaurant)
-Physical surroundings (decor, music, crowding)
-Temporal effects (time of day, how much time you have to shop)
-Antecedent states (your mood or available cash)
What are the cultural factors of Consumer Behaviour (CB)?
-Culture: Basic trigger of wants and behaviour. Deeply entrenched but when changed, creates opportunity
-Subculture: Shared value systems within groups based on common life experiences and situations (Regional, Demographic, Ethnographic, Age, Religion)
-Sociocultural: Divisions based primarily on socio-economic status (combination of occupation, income, education, wealth and other variables). More difficult to judge than income because, purchase behaviour often relate more to income than to social class, consumers often consume according to parents social class vs. their own, and dual income means that lower social class can live like higher social class
What are the social factors of Consumer Behaviour (CB)?
Reference groups: groups that vary in how they influence. (Includes friendship, shopping, work, celebrities, virtual communities, consumer action groups, brand communities).
-These groups are more influential when: we have less info and experience, we are less confident, we are more committed to the reference group, the reference group is credible, attractive and powerful, the product is conspicuous and the product is a luxury.
Family: household “power-broker(s)” influence buying behaviour (parents, children)
Roles and status: Roles are expected activites and status is the esteem given to role by society
What are the personal factors of Consumer Behaviour (CB)?
Age and life cycle stage: Preferences change over lifetime, family life cycle also matters (traditional and non-traditional)
Occupation: job affects products bought
Economic situation: Personal finances affects buying choices
Lifestyle: Pattern of living in terms of activities, interests, and opinions (AIO)
-Activities: work, hobbies, shopping, sports, social events
-Interests: food, fashion, family, recreation
-Opinions: about selves, social issues, business, products
-The goal is to arrive at a profile of a consumer that is similar based on AIO (psychograph measures lifestyle and develops lifestyle classifications
Self-concept: the beliefs a person holds about his or her own attributes and how s/he evalutes them
-we have actual self and ideal self
What are the psychological influences of Consumer Behaviour (CB)?
Motivation: Energizing forces that stimulate behaviour to satisfy a need
Perception: the process of information
Learning: behavioural change based on experience
Beliefs and attitudes: personal thoughts on subjects and evaluations thereof
What is the difference between perception and sensation?
Sensation: our immediate response to the world around us -What we see, feel, taste, smell and hear
Perception: The process by which sensations are selected, organized and interpreted
Perception is more influential than sensation
-It’s what we take away from the raw sensation, or add to them, that applies to the object/situation/thing at hand
What are perceptual barriers when psychologically influencing consumer behaviour?
Selective attention/perception: Tendency to screen out most information to which you are exposed
Selective exposure and comprehension: People interpreting informatioin in a way that supports what they already believe
Selective retention: People remember the good points about brands they like and forget good points about competing brands
-Can be improved by chunking, rehearsal, recirculation, elaboration
What is percieved risk and subliminal perception? how do they psychologically influence consumer behaviour?
Percieved risk: anxieties felt because the consumer cannot anticipate the outcomes of a purchase and believes there may be negative outcomes
Subliminal perception: Stimuli presented at a level below the threshold of awareness, research suggests it has little to no effect on consumers
What is behavioural and cognitive learning?
Behavioural: The process of developing automatic responses to a type of situation built through repeated exposure to it. A consumer perceives that they have a need, marketers intervene with a cue (such as advertising) and they take action to satisfy their need and then feel rewarded (positive reinforcement)
Cognitive: Involves making connections between two or more ideas or simply observing the outcomes of other’s behaviours and adjusting one’s own behaviour accordingly
-This idea is used when determining how frequently to show an advertisement: reinforcement of the same message over time is more effective in terms of building connections in the mind of the consumer
What are values, attitudes, and beliefs and their psychological influence on consumer behaviour?
Values: very hard for a marketer to influence, as they are often deep-rooted and have developed over many years
Attitudes: relatively consistent evaluations, feelings, and tendencies towards an object or idea
-Guide our thoughts, feelings and behaviours
Belief: descriptive thoughts about an object or idea
What is the consumer decision process?
-Need or problem recognition
-Information research
-Evaluation of alternatives
-Purchase decision
-Postpurchase behaviour
