Chapter 1

Question 1

Consumer behavior

Answer 1

Consumer behavior reflects the total of consumers decisions with respect to the acquisition consumption and disposition of goods, services, activities, experiences, people and ideas by (human) decision-making units (over time)

Question 2

Offering

Answer 2

A product, service, activity, experience, or idea offered by a marketing organization to consumers

Question 3

Consumer behavior reflects

Answer 3

The totality of decisions
About the consumption
Of an offering
By decision making units
Over time

Question 4

Disposition of an offering

Answer 4

Disposition, how consumers get rid of an offering they have previously acquired, can have important implications for marketinger. COnsumers can give away their used possessions, sell them on ebay or on consignment to vintage stores etc.

Question 5

Acquisition

Answer 5

The process by which a consumer comes to own an offering

Question 6

Usage

Answer 6

The process by which a consumer uses an offering

Question 7

Disposal

Answer 7

The process by which a consumer discards an offering

Question 8

Acquisition methods

Answer 8

Buying (Buying is a common acquisition method used for many offerings)

Trading (Consumers might receive a good or service as part of a trade)

Renting or leasing (Instead of buying, consumers rent or lease cars, furniture, vacation homes and more)

Question 9

Bartering

Answer 9

Consumers (and businesses) can exchange goods or services without having money change hands

Question 10

Gifting

Answer 10

Each society has many gift-giving occastions as well as informal rules dictating how gifts are to be given and what is appropriate gift, and how to respond to a gift

Question 11

Finding

Answer 11

Consumers sometimes find goods that others have lost (hats left on a bus) or thrown away

Question 12

stealing

Answer 12

Because various offerings can be acquired through theft, marketers have developed products to deter this acquisition mehtod such as alarms

Question 13

Ways to dispose of a tangible product

Answer 13

Find a new use for it

Get rid of it temporarily (renting or leasing)

get rid of it permanently

Question 14

Sales of products can be increased when the consumer

Answer 14

1) uses larger amounts of the product
2) uses the product more frequently
3) uses the product for longer periods of time

–> bonus packages may motivate consumers to buy more of a product

Question 15

The factors that affect acquisition, usage, and disposition decisions can be classified into four broad domains (what affects consumer behavior)

Answer 15

1) psychological core
2) the process of making decisions
3) the consumers culture
4) consumer behavior outcomes

Question 16

Psychological core (what affects consumer behavior)

Answer 16

Covers motivation, ability, and opportunity; exposure, attention, perception and comprehension; memory and knowledge; attitudes about an offering

Question 17

Reference group

Answer 17

A group of people consumers compare themselves with for information regarding behavior attitudes or values

Question 18

The process of decision making (what affects consumer behavior)

Answer 18

1) problem recognition
2) information search
3) decision making
4) postpurchase evaluation

Question 19

Marketing

Answer 19

The activity set of institutions and process for creating communicating delivering and exchanging offering swith value for individuals groups and society

Question 20

Marketers apply consumer research when making a number of decisions about products and branding

Answer 20

What ideas do consumers have for new products

What attributes can be added to or changed in an existing offering

How should the offering be branded

Packaging and logo

Question 21

Positioning

Answer 21

Another strategic choice is deciding how an offering should be positioned in consumers minds. The desire image should reflect what the product is and how it differs from the competition

Question 22

Making promoting and marketing communication decisions

Answer 22

What are our communication objectives

What should our marketing communication look like

Where should advertising be placed

When should we advertise

Has our advertising been effective

Question 23

Pricing decisions

Answer 23

Price of a product or service can have a critical influence on consumers acquisition, usage and disposition decisions

(what price should be charged; how sensitive are consumers to price and price changes; when should certain price tactics be used)

Question 24

Making distribution decisions

Answer 24

Another important marketing decision involves how products are distributed and sold to consumers in retail stores

Where and when are target consumers likely to show; what do consumers want to see in stores; how should stores be designed

Question 25

Ways to acquire an offering

Answer 25

Buying Trading Renting or leasing Bartering Gifting Finding Stealing

Question 26

offering

Answer 26

a person buying tangible products, consumers use of services, activities, experiences and ideas

Question 27

Three ways to dispose of an offering

Answer 27

find a new use for it Get rid of it temporarily get rid of it permanently

Question 28

Consumer culture (what affects consumer behavior)

Answer 28

External processes. In large part, our consumption decisions and how we process information are affected by our culture. Culture refers to the typical or expected behaviors, norms, and ideas that characterize a group of people

Question 29

Consumer behavior outcomes (and issues) ( what affects consumer behavior)

Answer 29

The psychological core, decision-making processes, and the consumers culture affect consumer behavior outcomes through the symbolic use of products and the diffusion of ideas, products or services through a market. They also influence and are influenced by issues of ethics and social responsibility

Question 30

Who benefits from the study of consumer behavior

Answer 30

Market managers Ethicists and advocacy groups Public policy makers and regulators Consumers and society

Question 31

Marketing managers (who benefits from the study of consumer behavior

Answer 31

The study of consumer behavior provides critical information to marketing managers for developing marketing strategies and tactices. Marketers need consumer behavior insights to understand what consumers and clients value; only then can they develop, communicate and deliver appropriate goods and services

Question 32

Ethicists and advocacy groups (who benefits from the study of consumer behavior)

Answer 32

Marketers actions sometimes raise important ethical questions. Concerned consumers sometimes form advocacy groups to create public awareness of inappropriate practices. They also influence other consumers as well as the targeted companies through strategies such as media statements and boycotts

Question 33

Public policy makers and regulators (who benefits from the study of consumemr behavior)

Answer 33

Understanding consumer behavior is crucial for legislators, regulators and government agencies in developing policies and rules to protect consumers from unfair, unsafe, or inappropriate marketing practices. In turn, marketers decisions are affected by these public policy actions

Question 34

Consumers and society (who benefits from the study of consumer behavior)

Answer 34

Understanding consumer behavior enables marketers and other organizations to provide tools for more informed decision-making

Question 35

Understanding consumer behavior is also important in the academic world for two reasons

Answer 35

Academics disseminate knowledge about consumer behaivor Academics generate knowledge about consumer behaivor. In turn, such academic research is useful to marketing managers, advocacy groups, policy makers, regulators and others who need to understand consumer behavior

Question 36

Some other strategic choices based on consumer research are

Answer 36

Deciding how an offering should be positioned in consumers minds (the desired image should reflect what the product is and how it differs from the competition), Making decisions about the components of the marketing mix (i.e. promotions and marketing communication, pricing, distribution)