chapter 1

Question 1

What is the definition of consumer behavior?

Answer 1

Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

Question 2

How has the Internet changed consumer behavior?

Answer 2

The Internet has impacted consumer behavior by:
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Giving access to more product information.
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Providing online shopping options (“e-commerce”).
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Facilitating consumer-to-consumer interaction through social media

Question 3

What is market segmentation?

Answer 3

Market segmentation is a marketing strategy that involves dividing a broad target market into smaller, more homogenous groups of consumers who have common needs, characteristics, or behaviors.

Question 4

What are some examples of ethical issues in marketing

Answer 4

Ethical issues in marketing can include:
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Marketing to vulnerable consumer groups (e.g., children).
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Privacy concerns related to data collection.
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Sustainability and environmental impact of products.
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Deceptive advertising practices.

Question 5

What is meant by the “dark side” of consumer behavior?

Answer 5

The “dark side” of consumer behavior refers to the negative consequences of consumption, such as:
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Compulsive consumption
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Consumer addiction
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Illegal activities (e.g., shoplifting)

Question 6

What are the stages of consumer behavior?

Answer 6

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Acquisition: The process of finding, learning about, and purchasing a product.
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Usage: How the consumer uses the product and what needs or wants it fulfills.
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Disposition: What the consumer does with the product after its use (e.g., recycling, discarding).

Question 7

Why is it important to study consumer behavior?

Answer 7

Understanding consumer behavior helps businesses to:
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Segment markets effectively.
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Improve product positioning strategies.
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Develop appropriate marketing mixes.
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Identify new market opportunities.
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Predict consumer reactions to marketing efforts.

Question 8

What is the decision making process

Answer 8

Problem Recognition: The consumer realizes they have a need or want that isn’t fulfilled. This could be due to a malfunctioning product or simply wanting something new.

Information Search: After recognizing the need, the consumer looks for information to solve the problem. This search can be internal (past experiences) or external (asking others or researching). However, not everyone searches extensively, especially for big purchases.

Evaluation of Alternatives: The consumer compares different products or brands that might meet their need. They tend to focus on brands they recognize or associate with the product category.

Product Choice: The consumer chooses a product based on decision rules—either eliminating options without key features or weighing pros and cons depending on the purchase’s importance.

Post-Purchase Evaluation: After buying, the consumer evaluates their satisfaction with the product. A positive experience increases the chances of future purchases, while dissatisfaction can lead to returns or negative feedback.