Consumer Behaviour

Question 1

What is consumer behaviour?

Answer 1

reflects the totality of consumers decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, people and ideas by (human) decision making units over time (Jacob, 1976)

Question 2

What does consumer behaviour involve?

Answer 2

• more than buying
• involves many decisions
• is a dynamic process
• can involve many people such as a consumer and customer.

Question 3

What is the model of consumer behaviour?

Answer 3

environment - marketing stimuli (product, price, place and promotion), other (economic, technological, social cultural)
buyers black box - buyers characteristics, buyers decision proces
buyers responses - buying attitudes and preference. Purchase behaviour what the buyer buys, when, where and how much. Brand engagement and relationships.

Question 4

What are the different buyer characteristics?

Answer 4

• culture - culture and subculture, brands often supplement their already diverse general market offerings with programs tailored to important subcultural segments e.g. Black Americans
• social - groups, social networks, influences, family and roles and status
• personal - ages and life stage, occupation economic situation, environmental situation, lifestyle personality and self concepts - people buying decisions reflect and contribute to their whole pattern of acting and interacting in the world e.g. the retailer title Nine sells more than just women’s apparel , sells an entire sports, participation and activities lifestyle to ‘ordinary women capable of extraordinary things’
• psychological - motivation, perception, learning, beliefs and attitudes.

Question 5

What are buying decisions affected by?

Answer 5

incredibly complex combination of external and internal influences.

Question 6

What is culture?

Answer 6

the set of basis values, perceptions, wants and behaviours learned by a member of society from family and other important institutions.

Question 7

What are subcultures?

Answer 7

groups of people within a culture with shared value systems based on common life experiences and situations

Question 8

What is an example of culture?

Answer 8

IKEA in Chins - modification to suit local market and reflect Chinese apartment sizes, advertising will be done on Chinese social media and micro blogging website, Weibs had been popular - also provide Chinese cuisines in their IKEA stores.

Question 9

What do social factors involve?

Answer 9

memberships groups - groups to which a person belongs.
reference group - serve as direct or indirect points of comparison or reference in forming a persons attitude or behaviour’s. aspirational reference - one to which the individual wishes to belong.
Dissociative reference group - groups whose attitude’s, values and behaviours we disapprove of and do not wish to emulate.

Question 10

What is an example of social factors?

Answer 10

Abercrombie and Fitch - used to market towards younger people, they would hire good looking people in their stores, because good looking people attract good looking people and want to market to cool and good looking people only to target a specific group of customers.

Question 11

What are online social networks?

Answer 11

communities such as blogs, social media, brand communities and other online forums where people can socialise or exchange information and people.

Question 12

What are opinion leaders/influence?

Answer 12

people within a reference group whom because of special skills, knowledge, personality or other characteristics can exert social influence on others e.g. Stanley cup, $750 million on revenue in 2023, products gone viral on social media platforms such as TikTok.

Question 13

What are personal factors?

Answer 13

lifestyle is a pattern of living as expressed in his or her psychographics.

Question 14

What does personal factors involve?

Answer 14

activities (work, hobbies, sports, social events)
- interests (food, fashion, family, recreation)
- opinions (about themselves, social issues, business products)
There are 5 brand personality traits: 1. Sincerity, 2. Excitement, 3. Competence, 4. Sophistication, 5. Ruggedness

Question 15

What is an example of personal factors?

Answer 15

Beyond Meat has got off to a good start trying to change ingrained consumer attitudes and behaviours through its plant based meat products. The beyond burger cooks like a beef patty. It sizzles, it oozes and sizzle we know is what sells.

Question 16

What are psychological factors?

Answer 16

This includes Maslow Hierarchy of Needs - a need is an internal state of tension caused by disequilibrium from an ideal/desired physical or psychological state. Hierarchy starts from the bottom.

Question 17

What are the different things in Maslow’s hierarchy?

Answer 17

1. Physiological needs - hunger thirst
2. Safety needs - security, protection
3. Social needs - sense of belonging, love
4. Esteem needs - self esteem, recognition, status
5. Self actualisation needs - self development and realisation.
   Human needs are arranged in a hierarchy, starving people will take little interest in the latest happenings in the art world.

Question 18

What does motivation involve?

Answer 18

Social needs - are externally directed and relate to other individuals.
Non-social needs - these for which achievement is not based on other people.
functional needs - needs that motivate the search for offerings that solve consumption related problems.
symbolic needs - needs that relate to how we perceive ourselves how were perceived by others and how we relate to others.
Hedonic needs - needs that relate to sensory pleasure.

Question 19

What is perception?

Answer 19

process by which people select, organise and interpret information to form a meaningful picture of the world.

Question 20

What are the perceptual procceses?

Answer 20

• selective attention - tendency for people to screen out most of the information to which they are exposed.
• selective distortion - tendency for people to interpret information in a way that will support what they already believe
• selective retention - tendency to remember good points made about a brand they favour and forget good points made about competing brands

Question 21

What does need recognition involve?

Answer 21

problem recognition is the perceived difference between an actual and an ideal state. An ideal state is the way we want things to be. An actual state is the way things are.

Question 22

What does information search involve?

Answer 22

internal search is the process of recalling stored information from memory based on past information on products and brands.
External search is the process of collecting information from outside sources e.g. magazines, dealers, ads.

Question 23

What does evaluation of alternatives involve?

Answer 23

cognitive (function) vs affective (emotions they will have) decision making. High v low effort decision making.

Question 24

What are the processes in buyer’s decisions?

Answer 24

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decisions
5. Past purchase behaviour`

Question 25

What doe past purchase behaviour involve?

Answer 25

satisfaction vs dissatisfaction, repurchases and long term relationships, disposition options.

Question 26

What are the types of buying behaviour?

Answer 26

high involvement - complex buying behaviour (house, cars). low involvement - variety seeking buying behaviour (food delivery). dissonance - reduce buying behaviour (e.g. bank, wifi). habitual buying behaviour (coffee, shampoo).

Question 27

What is panic buying?

Answer 27

Fuelled by anxiety and willingness to go lengths to fuel those fears. Helps people feel in control of a situation, people feel need to do something that's proportionate to what we perceive is the level of crisis.