Chapter 5

Question 1

Define consumer behavior

Answer 1

The study of how individuals select, buy, use and dispose of goods, services (etc) to satisfy their wants and needs

Question 2

By which 3 factors is a consumers behavior influenced?

Answer 2

• Cultural (culture, subculture and social class)
• Social (family, status and reference groups)
• Personal (age, lifestage, occupation)

Question 3

What are the 5 key psychological processes that influence consumer responses?

Answer 3

• Motivation
• Perception
• Learning
• Emotions
• Memory

Question 4

What 2 needs drive the motivation process?

Answer 4

Biogenic (hunger) and psychogenic (recognition) needs become motives when intensity is high. Motivation has both direction (one over other) and intensity (persuation)

Question 5

What 3 factors drive the perception process?

Answer 5

• Selective attention (screening out of stimuli)
• Selective distortion (interpret info to our belief)
• Selective retention (remember good points)

Question 6

What is the five-stage model of the buying decision process?

Answer 6

• Problem recognition (need triggered by stimuli)
• Information search (level of engagement in searching)
• Evaluation of alternatives (comparing alternatives)
• Purchase decision
• Postpurchase behaviour (satisfaction, action and use)

Question 7

What two levels of information search are there?

Answer 7

• Heightened attention: more receptive about information about a product
• Active information search: active research and surveys

Question 8

What 3 factors can intervene between the purchase intention and the purchase decision?

Answer 8

• Attitude of others
• Unanticipated situational factors
• Perceived risk

Question 9

What is Behavioural Decision Theory (BDT)?

Answer 9

The study of the rationality of decision making processes

Question 10

What are decision heuristics?

Answer 10

Mental shortcuts in the decision process

Question 11

Name 3 types of decision heuristics

Answer 11

• Availability heuristic (how quickly does the particular example come to mind)
• Representativeness heuristic (how representative is the outcome compared to others)
• Adjustment heuristic (after arriving at initial judgement, consumers adjust based on additional information)

Question 12

Define decision framing

Answer 12

The manner in which choices are presented to and seen by a decision maker