Chapter 5 book Flashcards
(22 cards)
Consumer behaviour
The study of how individuals or groups select and use goods and services to satisfy their needs or wants.
What influences a consumers buying behaviour?
- Cultural factors (Exert the broadest and deepest influence)
- Social factors
- Personal factors
Reference groups
All the groups that have a direct or indirect influence on a customers attitudes or behaviour
An opinion leader
Is the person who offers informal advice or information about a specific product or product category.
For instance, which is best or how to use a particular brand.
What is the most influential primary reference group?
Family. It is the most important consumer buying organisation in society and they constitute the most influential primary reference group.
Brand personality
A specific mix of human traits that we can attribute to a particular brand.
What are the 5 key psychological processes?
- Motivation
- Perception
- Learning
- Emotions
- Memory
When is an individual motivated to buy a product?
A need that becomes a motive when it is aroused sufficiently enough to act.
Motivation has both direction (selection over another) and intensity (power of the pursuit)
Perception
Perception is the process of how information is interpreted to create a meaningful picture and affects consumer behaviour
Learning
Induces changes in our behaviour arising from experience.
Brand association
Consists of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes and so on that become linked to a brand.
Memory
Can be long term (LTM) or short term (STM)
LTM structures are assumed to be formed through an associated model of links and nodes. Nodes are stored information with strong of weak connected links.
The 5-stage model of a buyers decision process
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase behaviour
Consumer don’t always pass through all five, might skip a few or go back to a step before. But provides good frame of reference.
What are the four information sources for a buyer?
- Personal
- Commercial
- Public
- Experimental
What two factors can intervene between the intention of a purchase and the actual purchase decision?
- The attitude of others
- Unanticipated situational or perceived risks
Behavioural decision theory (BDT)
The theory on how consumers make decisions. Not all decisions are made deliberately and rationally. Many consumers make seemingly irrational decisions buying items.
Decision heuristics
The ‘mental shortcuts’ or rules of thumb consumers make in a decision process
The three types of decision heuristics
- The availability heuristic
- The representativeness heuristic
- The anchoring and adjustment heuristic
The availability heuristic
Consumers base their decisions on how quickly and easily a particular item is available
The representativeness heuristic
Consumers base their decision on how representative or similar the product is to other product
The anchoring and adjustment heuristic
Consumers arrive at an initial judgement and then adjust it based on additional information
Decision framing
Is the manner in which choices are presented to and seen by a decision maker.
Framing effects are pervasive and can be powerful.
