Chapter 2: Consumer Behaviour Flashcards
0
Q
Companies use CB to understand
A
Target consumers
1
Q
What is consumer Behaviour interested in?
A
How consumers make purchase decisions What they buy Why they buy How they choose to buy When they buy Where to do go and buy
2
Q
Companies use CB to design
A
P&S better suit customers
3
Q
What is CPDP
A
Consumer purchase decision process
4
Q
What is the CPDP
A
A process by which consumers make a purchase decision
Making choices
5
Q
The CPDP is influenced by
A
Marketing mix
Sociocultural influence
Psychological influences
Situational influences
7
Q
How many stages in CPDP
A
5
8
Q
What is problem recognition?
A
Consumer perceives he has a need
Perceived a different between actual and ideal situation
9
Q
How do marketers activists CPDP/problem recognition?
A
Show shortcoming of competing or currently owned products
10
Q
What is information search?
A
The consumer seeks for value
What product can satisfy newly discovered need
11
Q
What are the two kinds of searches?
A
Internal
External
12
Q
Internal search involves
A
Scanning memory for previous experiences
(Using or owning product before)
Or read about information concerning product
13
Q
Internal search is sufficient when
A
Products are purchased frequently
14
Q
An external is used when
A
Risk of bad decision is high
Cost of gathering information is low
15
Q
What are the sources of external information?
A
Personal sources
Public sources
Marketer dominated sources
16
Q
What are personal sources?
A
Asking people that consumer trusts
E.g friends and relatives
17
Q
What are public sources?
A
Searching or consulting people or organizations
Product rating organizations
Government agencies
Consumer oriented TV programs
Feature articles in newspaper and magazines
18
Q
What are marketer dominated sources?
A
Getting information from sellers through
advertisements
Company websites
Salespeople
POP displays
19
Q
What is POP?
A
Point of purchase
20
Q
How does information help consumers?
A
Clarify their problem
21
Q
After searching for information, consumers set
A
Criteria
22
Q
What is criteria
A
Points to consider
23
Q
After information search, consumer has to choose from
A
Alternatives
24
Q
Alternatives are
A
Brand names that meet the criteria
25
What is alternative evaluation?
Consumer assesses the value of various alternatives
26
Alternative evaluation can be done
Consciously
| Mentally
27
In alternative evaluation, the consumer first
Weighs the criteria according to importance
28
Second step in alternative evaluation is to
Consider brands that might meet the new criteria
29
What is a consideration set
Group of brands that a consumer consider acceptable from among all the brands in the product class that he is aware of
30
Step three of alternative evaluation involves the consumer
Developing consumer value perceptions (overall rating)
31
In consumer value perceptions, the consumer gives each brand
A performance rating against the set criteria.
| Then multiply against the importance
32
In purchase decision,
Consumers have made up their made up their mind about the brand and model they are going to purchase
33
In purchase decision, consumer consider
the value of making the purchase
34
The two choices that affect buying value are
From whom to buy
| When to buy
35
Whom to buy affects buying value because
Different sellers of the same product provide differing levels of value
36
Different sellers provide different value in
Customer service
After sales assistance
Convenience
37
The decision of whom to buy from is affected by
Consumer past purchase experience
Recommendations from personal sources
Seller's terms of sales
38
Why do people consider when to buy?
Actual purchase may be delayed
39
Actual purchase is delayed due to
```
Stock availability
Offers coupon/rebate
Stores atmosphere
Shopping experience is satisfactory
Salesperson
Financial terms
Faces time pressure
```
40
In post purchase behaviour, consumers
Evaluate the value of product in consumption or use
41
After buying, the consumer begins to
Compare it with his expectations
42
The buyer starts to decide if he is
Satisfied or dissatisfied
43
A consumer feels that he is unsure if he has made a right decision after purchase. It is known as
Cognitive dissonance. It is a feeling of anxiety
44
Satisfaction or dissatisfaction affects
Value perception
| Repeat purchase behaviour
45
Value perception will cause consumer to
Tell other people about it
46
How do companies help customers overcome cognitive dissonance?
Providing reassurance
| Reaffirming the purchase decision
47
Companies provide assurance by
Offering warranties
Money back guarantee
After sales service support
Technical trouble shooting
48
How do companies reaffirm the purchase decision?
Run advertisement (show high quality, reliability, performance, unique features)
Send personalized communication to thank customers for purchase. Offer them guidance
Letters emails
49
How consumer make decision are influenced by
Frequency of purchase
| Importance in lives (involvement)
50
The level of involvement depends on
Relative cost to consumer
Personal consequences
Affects self image
51
High involvement purchase are
Expensive
Can have serious consequences
Could reflect on ones' image
52
Low involvement purchase are
Low priced
Used in private (will not affect image)
Purchased frequently does not have personal consequence
53
What are the three problem solving variations?
Involvement for each one?
Extended
Limited
Routine
54
What does consumer do in extended problem solving?
Spends large time and effort
- external search
- evaluation of attributes of multiple alt brands
55
Limited involvement is used when buyer
Has little time and effort to spend
56
What does consumer do in limited problem solving?
Spends time and effort
- external search
- limits the number of brands to consider
57
How does consumer behave in routine?
Repeats purchase of brands
| Proven reasonably satisfying
58
Brands that have different rankings are called
Leaders
| Challengers
59
Low involvement brands that are market leaders should
Maintain product quality
Avoid stock outs
Develop ads to reinforce and assure
60
Low involvement products that are market challengers should
Encourage trial (free sample, coupons, rebates) to break buying habit
Develop ads to get into consideration set
Link brand attributes with high involvement issues (use extended problem solving)
61
The five stages are
```
Problem Recognition
Information search
Alternative evaluation
Purchase decision
Post purchase Behaviour
```
62
High involvement products that are market leaders should
Advertising
| Personal selling: provide customers with information (unique selling points)
63
For high involvement products whose brands are brand challengers, they should use
Comparative ads
| Novel evaluative criteria for judging competing
Change consumer mind about Impt. Criteria
64
Consumer involvement is also influenced by
Situational influences
65
The situational influences are
```
Purchase Task
Social surroundings
Physical surroundings
Temporal effects
Antecedent states
```
66
Purchase task is the
Reason for engaging in the decision
67
Social surrounding is
Who else the consumer is making the decision with
Close friends: straightforward
68
Physical surroundings is the
Store decor
Music
Crowding
69
Physical surroundings affects how
At ease the customer feel
70
Temporal affect is
The time of the day
| Amount of time available
71
Antecedent states is the
Consumer mood
| Cash on hand
72
What are the major psychological influences on consumer behaviour?
```
Motivation
Personality
Perception
Learning
Values, Behaviour attitudes
Consumer lifestyle
```
73
What is motivation ?
Energizing force that simulates behaviour to satisfy need
74
Marketers are interested in arousing
Need
75
What is the hierarchy of needs called
Maslow
76
What are the needs, starting from the lowest
```
Physiological
Safety
Social
Personal
Self actualisation
```
77
Physiological needs are
Basic felt needs to survive
78
Safety needs involve
Self preservation
| Physical well being
79
Social needs are concerned with
Friendship, socializing
| Love
80
Personal needs are
```
Self esteem
Status
Achievement
Prestige
Self respect
```
81
Self actualisation needs involve
Personal fulfillment
82
What is personality?
Persons consistent behavior or responses to recurring situations
83
Personality is revealed in a person's
Self concept
84
What is self concept
The way people see themselves
| And the way they believe others see them
85
Self concept is made up of
Actual self
| Ideal self
86
Products support an individual's
Self concept
87
Perception is the process
Select
Organizes
Interpret
Create meaningful picture of the world
88
What kinds of selective perceptions are there?
Selective exposure
Selective comprehension
Selective retention
89
When do people have selective exposure?
Pay attention to messages that are consistent to their attitude and beliefs
Ignore inconsistent one
90
Selective comprehension happens when
Consumers interpret messages so that it is consistent with attitude and beliefs
91
Selective retention occurs when
Consumers choose to remember information that are consistent with beliefs and attitudes
Refuse to retain does that are inconsistent minutes just after exposure
92
What is the anxiety felt when they can't anticipate the outcome of making a purchase?
Perceived risks
93
Learning is
Process by which individual choose to behave
94
Learning is due to
Repeated experiences
| Reasoning
95
What are the three kinds of learning
Behavioral
Cognitive
Brand loyalty
96
Behavioural learning is the process
Developing automatic responses
Through repeated exposure
Need-cue/stimulus-action-reward
97
Cognitive learning is
The process of developing responses to a situation
Making connections between 2 or more ideas
Observing outcomes of others behaviors
98
In cognitive learning, it is
Mental problem solving
| No direct experience
99
Brand loyalty is
Process of habit formation
| Comes with learning and routine problem solving
100
An attitude is a
Learned predisposition to respond to an object favorably or unfavorably
101
What are beliefs?
Subjective perception
| On how product performs on various attributes
102
How are beliefs and attitudes related?
Beliefs play a part in attitude formation
103
How do marketers change attitudes
Change consumer beliefs
Change perceived importance of attributes
Add new attributes
104
What is consumer lifestyle?
Mode of living
| How people spend their time and resources
105
What is consumer lifestyle known as?
Psychographics
106
What are the different lifestyle groups?
Ideals motivated
Achievement motivated
Self expression motivated
107
Ideals motivated groups are
Guided by knowledge and principles
Tend to be conservative
Conventional and practical
Durability functionality
108
Achievement motivated groups are
```
Trendy
Goal directed
Stylish products (show off)
Image is important
Established brands important
```
109
Self expression motivated groups
```
Young
Enthusiastic
Impulsive
Desire for social or physical activity
Variety and risk
Energy
Fashion items
Socializing
Looking good
Latest things
```
110
What are the social cultural influences on consumer behavior?
```
Personal influence
Reference groups
Family influence
Social class
Culture and subculture
```
111
Personal influence is the
Views, opinions and behaviour of other people that influence a consumers purchase decision
112
Personal influence involves
Opinion leadership
| Word of mouth
113
Opinion leadership are held by individuals who are
Considered to be knowledgeable about particular products and services
114
Opinion leaders have
Direct or indirect social influence
| On others purchase decision
115
Word of mouth is
A form of communication when people influence each other during conversations
116
How is word of mouth effective?
It is powerful
| Authentic: trustworthy friends
117
Reference groups are people to whom
Individuals look to for self appraisal
| Source of personal standards
118
Reference groups can influence by
Providing information
Their attitudes
Aspiration levels: set consumer standards
119
What are the reference groups ?
Membership groups
Aspiration groups
Dissociative group
120
How does family influence consumer?
Consumer socialization
Family life cycle
Family decision making
121
What is consumer socialization?
What consumers learn as a child by watching and interacting with adults in purchase situations
Through their own experience of purchasing
122
How are purchase decisions affected in family cycle?
Consumers act different in different phases of life
123
How does family decision making affect purchase decision making
Style of decision making
Spouse dominant
Joint decision making
124
What are the roles in family decision making?
```
Information gatherer
Influencer
Decision-maker
Purchaser
User
```
125
What is a social class?
Homogenous divisions in society
126
Characteristics of a social class
Similar values, interest, behaviour, attitudes, lifestyle
| Relatively permanent
127
What determines social clSs
Source of income (not level)
| Education
128
What are the three major social class categories?
Upper
Middle
Lower
129
People in lower social class tend to
Have short term orientation
More emotional than rational
Think in concrete not abstract
See fewer personal opportunities
130
People in higher social class
Tend to focus on achievements and the future
| think in abstract or symbolic terms
131
What is culture?
Set of values, ideas and attitudes that are learned and shared among members
132
What is subculture?
Subgroups within larger culture
133
How does culture affect?
Different culture have different behaviours and preferences
