Consumer Behaviour

Question 1

How does the Oxford English Dictionary (2016) define a customer?

Answer 1

A customer is “a person who buys goods or services from a shop or business.”

Question 2

What is consumer behaviour according to Arnould et al. (2004)?

Answer 2

It’s how individuals or groups acquire, use, and dispose of products, services, ideas, or experiences.

Question 3

Name the four general consumer profiles by Schiffman et al. (2013).

Answer 3

Economic, Personalising, Ethical, Alphabetic consumers.

Question 4

What are the main stages in the Consumer Decision Making Process?

Answer 4

Need recognition, Information search, Evaluation of alternatives, Choice and purchase, Post-purchase evaluation

Question 5

What is the first stage in the Consumer Decision Making Process?

Answer 5

Need recognition (External Stimulus & Internal Stimulus)

Question 6

What is the second stage in the Consumer Decision Making Process?

Answer 6

Information search (Internal info search - memory, external info search)

Question 7

What is the third stage in the Consumer Decision Making Process?

Answer 7

Evaluation of alternatives

Question 8

What is the fourth stage in the Consumer Decision Making Process?

Answer 8

Choice and purchase,

Question 9

What is the fifth stage in the Consumer Decision Making Process?

Answer 9

Post-purchase evaluation

Question 10

What differentiates high-involvement and low-involvement products?

Answer 10

High-involvement: high risk/cost; requires more decision effort. Low-involvement: low risk/cost; decision is quicker and often based on familiarity.

Question 11

What is the concept of “Satisficing”?

Answer 11

Making an acceptable, rather than optimal, decision due to time/effort constraints.

Question 12

Define Hedonism & Utilitarianism in consumer context

Answer 12

Hedonism: pleasure-seeking. Utilitarianism: practicality-focused. Products often have a mix of both.

Question 13

Define Hedonism in consumer context

Answer 13

pleasure-seeking.

Question 14

Define Utilitarianism in consumer context.

Answer 14

practicality-focused. Products often have a mix of both.

Question 15

What are the components of the Servicescape?

Answer 15

Physical elements of a consumption environment, such as layout, lighting, signage, scent.

Question 16

What are the two schools of learning in consumer behaviour?

Answer 16

Cognitive Learning (Learning is Knowledge) and Behavioural Learning (Operant/Classical Conditioning).

Question 17

What are the four types of reinforcement/punishment in Operant Conditioning?

Answer 17

Positive reinforcement, Negative reinforcement, Positive punishment, Negative punishment.

Question 18

What is the Tri-Component Model of Attitudes? (Schiffman and Wisenblit, 2015)

Answer 18

Cognitive (beliefs), Affective (feelings), Conative (intentions/actions).

Question 19

What is the Theory of Planned Behaviour by Ajzen (1991)?

Answer 19

Behaviour is influenced by attitude, subjective norms, and perceived behavioural control.

Question 20

List the four attitude functions by Schiffman and Wisenblit.

Answer 20

Utilitarian, Ego-Defensive, Value-Expressive, Knowledge.

Question 21

What is Gender Schema Theory?

Answer 21

Children develop schemas based on observed gender norms and use them to guide behaviour.

Question 22

What is the “Experience Economy”?

Answer 22

Businesses create memorable customer experiences that may lead to personal transformation.

Question 23

What is the the economic consumer?

Answer 23

is quite sensitive to price, quality and assortment of merchandise. Personnel and the store are viewed as tools in their purchase of goods

Question 24

What is the the personalising consumer?

Answer 24

shops where they are known by name. Strong personal attachments are formed with store personnel

Question 25

What is the the ethical consumer?

Answer 25

shops where they feel they should shop

Question 26

What is the the alphabetic consumer?

Answer 26

shops only because they have to

Question 27

Psychological Factors Influencing Consumer Behaviour

Answer 27

- Motivation - Perception - Learning (memory) - Beliefs & Attitudes - Personality & ‘The Self-Concept’

Question 28

What is the self-concept?

Answer 28

*Self-concept is how someone thinks about, perceives or evaluates themselves *People project a role that is reinforced by exterior accoutrements appropriate for the role *People buy products that contribute to the self-concept

Question 29

What is the Self-Categorization Theory (Turner 1987)

Answer 29

-Self-Categorization Theory explains how individuals define themselves based on group memberships. -It suggests that people shift between personal and social identities depending on the context

Question 30

Goffman – The Presentation of Self in Everyday Life (1959)

Answer 30

- Roles not identities - We act out a whole range of different roles, performing for an ‘audience’ - What we wear, what we say, how we behave give clues to who we are trying to be

Question 31

What are personal influences?

Answer 31

* Occupation * Education * Economic situation * Age & lifecycle stage

Question 32

What are social influences?

Answer 32

* Household type * Reference groups * Aspirational groups * Roles & status

Question 33

Influence of reference groups

Answer 33

* Socialisation – The process of becoming an effective and integrated member of society by attaining and replicating norms, customs and ideologies in order to maintain continuity * Compliance – Adherence without belief : acquiescence * Conformity – The social pressure to behave in similar ways to other people

Question 34

Cultural Influences

Answer 34

* Culture * Subculture * Social Class

Question 35

Environmental Influences

Answer 35

* Political – Local, National, International governments * Economic * Social * Technological

Question 36

Shaping vs Mirroring

Answer 36

* The “mirror” perspective assumes that advertising reflects values that already exist (Holbrook, 1987) * Whereas the “shaping” argument states that advertising can shape the target audience’s values (Davies, Spencer, Quinn, & Gerhardstein, 2002; Pollay, 1986).

Question 37

Evoked sets

Answer 37

Brands that the buyer is willing to consider

Question 38

Inert sets

Answer 38

The buyer is aware of this group of brands. They are considered acceptable but are not preferred.

Question 39

Inept Sets

Answer 39

The buyer does not consider these brands worthy of consideration

Question 40

Expected Utility Theory (Arnould, Price and Zinkhan, 2004)

Answer 40

This theory typically assumes that decision makers are rational and have complete information

Question 41

Post-Purchase Dissonance

Answer 41

This is when an individual has made a purchase however they have some form of doubt surrounding the purchase.

Question 42

What are the 3 last Ps from the 7ps?

Answer 42

* People * Physical evidence * Process

Question 43

What does PEOPLE mean in relation to the 7ps?

Answer 43

* Personnel in key position to influence customer perceptions * Service quality inseparable from service provider * Training is crucial * Know expectation of customer * Adopt customer-first policy (Kotler 2016)

Question 44

What does PROCESS mean in relation to the 7ps?

Answer 44

* Procedures and mechanisms by which a service is acquired * Efficient & effective * Enjoyable experience for customer (Kotler 2016)

Question 45

What does PHYSICAL EVIDENCE mean in relation to the 7ps?

Answer 45

* Environment in which the service is delivered * Has a big impact on the customers decision * E.g. prospective customers look through a restaurant window at décor, furnishings, appearance of waiters * Colour and noise are major factors (Kotler 2016)

Question 46

The Affective Component

Answer 46

This component represents the consumer’s emotions or feelings regarding a product

Question 47

The Conative Component

Answer 47

This component considers the likelihood that a consumer will behave in a certain way based on their attitudes

Question 48

Consumers who have a high need for cognition are...

Answer 48

likely to respond well to detailed product information

Question 49

Consumers who have a low need for cognition are...

Answer 49

likely to form positive attitudes in response to ads who feature attractive models or celebrities

Question 50

The ego-defensive function

Answer 50

refers to holding attitudes that protect our self- esteem or that justify actions that make us feel guilty.

Question 51

The Value-Expressive Function

Answer 51

-Attitudes reflect a consumer’s values and beliefs -Value-expressive attitudes show who we are, and what we stand for.

Question 52

What is Experiential marketing?

Answer 52

"Experiential marketing is marketing that the consumer wants to get involved in. Often this involvement then gives the opportunity to try and use the product, indeed to experience it" Chitty, Barker and Valos (2011, p312

Question 53

What are the The 4 Key Characteristics of Experiential Marketing? (Schmitt, 2006)

Answer 53

* Methods and Tools are eclectic * Focus on Customer Experiences * Examining the Consumption Situation * Customers as Rational and Emotional Animals

Question 54

What is the Locus of Control?

Answer 54

* Internal locus – believe that they control the events in their lives by their own effort and skill. * External locus – believe that events in their lives are due to uncontrollable forces. (Boshoff and Van Zyl, in Koers, 2011, p291)