Chapter 5

Question 1

consumer buying behavior

Answer 1

the buying behavior of final consumers - individuals and households that buy goods and services for personal consumption

Question 2

consumer market

Answer 2

all the individuals and households who buy or acquire goods and services for personal consumption

Question 3

Two parts of a consumer’s black box

Answer 3

• the buyers characteristics
• buyers decision process

Question 4

culture

Answer 4

the set of basic values, perceptions, wants, and behaviors learned by a member of soceity from family and other important institutions

-spot cultural shifts (ex: shift to be more envirnmentally or health conscious)

Question 5

subculture

Answer 5

a group of people with shared value systems based on common life experiences and situations

-nationalities, racial groups, geographic regions

Question 6

Four important subculture groups

Answer 6

1. Hispanic – fastest growing, tend to buy more branded higher quality products, family oriented, brand loyal
2. African-American - more price conscious, brands are important, most fashion conscious ethnic group
3. Asian-American - most affluent, second-fastest growing, most tech-savvy, most brand concious of all ethnic groups
4. Mature- not “stuck in their ways”

Question 7

social class

Answer 7

relatively permanent and ordered divsions in a society whose members share similar values, interests, and behaviors

• combination of income, occupation, education, wealth etc.
• people can change social classes

Question 8

group

Answer 8

two or more people who interact to accomplish individual or mutual goals

Question 9

reference groups

Answer 9

direct or indirect points of comparision in forming a person’s attitudes or behavior

-aspirational group is a group to which an individual wishes they belong (ex: NBA)

Question 10

opinion leaders

Answer 10

person within a reference group who, because of skills, knowledge, personality or other characteristics, exerts social influence on others

-influentials or leading adopters

Question 11

buzz marketing

Answer 11

use buzz marketing by enlisting or creating opinion leaders to serve as brand ambassadors who spread the word about their products

Question 12

other social factors that influence buying behavior

Answer 12

• family members
• role and status

Question 13

personal factors that influence buyer’s decisions

Answer 13

• age and life-cycle stage
• occupation
• economic situation
• lifestyle (activities, interests, opinions) - AIO dimensions
• personality
• brand personality – human traits that apply to brands (ex: sincerity, excitement, competance, sophistication, ruggeddness)

Question 14

psychological factors that influence a buyer’s decisions

Answer 14

• motive (drive)
• perception
• learning
• belief
• attitude

Question 15

perception

Answer 15

• the process by which people select, organize, adn iterpret information to form a meaningful picture of the world
  1. selective attention = the tendency for people to screen out most of the information to which they are exposed
  2. selective distortion = describes the tendency of people to interpret information in a way that will support what they already believe
  3. selective retention = consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands

Question 16

learning

Answer 16

changes in individuals behavior arising from experience

Question 17

belief

Answer 17

a descriptive thought that a person holds about something

Question 18

attitude

Answer 18

a persons consistently favorable or unfavorable evaluations, feelings and tendencies toward an object or ideas

Question 19

complex buying behavior

Answer 19

high consumer involvement in a purchase and significant ercieved differences among brands

ex: computers

Question 20

dissonance reducing buying behavior

Answer 20

high involvement but few percieved differences among brands

ex: carpeting

*post-purchase dissonance = after-sale discomfort when they notice certain disadvantages of the purchased carpet brand or hear favorable things about a brand not purchased

Question 21

habitual buying behavior

Answer 21

low consumer involvement and few significantly percieved brand differences

ex: salt
- brand familiarity rather than brand conviction – they have no strong feelings, they select a brand bc its familiar
- tv is effective for ads

Question 22

variety seeking buying behavior

Answer 22

low consumer involvement but significant percieved brand differences

ex: buying cookies
- switching occurs for the sake of variety rather than dissatisfaction

Question 23

buyer decision process

Answer 23

• need recognition
• information search
• evaluation of alternatives
• purchase decision (affected by attitudes of others and unexpected situational factors)
• postpurchase behavior (satisfied or not?)

**in routine purchases, consumers skip steps

Question 24

cognitive dissonance

Answer 24

buyer discomfort cause by post purchase conflict

Question 25

Adoption process of a new product

Answer 25

-the mental process through which an individual passes from first hearing about an innovation to final adoption

five stages:

1. awareness
2. interest
3. evaluation
4. trial
5. adoption

Question 26

Five adopter groups

Answer 26

1. innovators - try new ideas at some risk (younger, more educated, higher income)
2. early adopters- opinion leaders that adopt new ideas early but carefully
3. early majority - adopt new ideas before average person (not really leaders)
4. late majortiy - skeptical - adopt only after majority have tried it
5. laggards- adopt changes only when they have become tradition