Consumer Behaviour

Question 1

What is consumer behaviour?

Answer 1

SOR model: stimulus, organism, response

Question 2

What are the two key principles of consumer behaviour?

Answer 2

1) individuals react on the basis of perception - not on the basis of objective reality
2) objective product features does not equal consumer benefits

Question 3

Consumer decision process model

Answer 3

Need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation, disposal

Question 4

Need recognition: key driver of consumer behaviour

Answer 4

Change in desired state: life stage, new tastes, technologies
Change in actual state: stock depletion, problem removal, problem avoidance

Question 5

What is needed for someone to engage in high effort information processing and decision making?

Answer 5

Motivation: an inner state of arousal that denotes energy to achieve a goal (2 types)
Ability: financial resources, cognitive ability, physical ability, education and age
Opportunity: time, distraction, amount of information, complexity of information, repetition of information

Question 6

What affects motivation?

Answer 6

1) goals and needs
2) values, personal relevance
3) perceived risk

Question 7

Consumer behaviour definition

Answer 7

Reflects the totality of consumer’s decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, and ideas by (human) decision-making units (over time)

Question 8

When is motivation high?

Answer 8

Intentional

Unintentional

Question 9

How can consumer goals be defined?

Answer 9

Maslow’s hierarchy of needs
Lower-level needs to higher-level: physiological needs, safety and security, love and belonging, self-esteem, self actualisation

Question 10

How can marketers appeal to higher order goals?

Answer 10

The consumer connection bridge: product feature, functional benefit, emotional benefit, goal

Question 11

Goal-based positioning and means-end chain

Answer 11

Deepens consumers’ understanding of a brand by showing how brand helps to achieve goals
Features>benefits>emotions>essence>goal
Connect to higher order goals=brand loyalty

Question 12

Perceptual process

Answer 12

[ojective]Stimuli: sight,smell,sound, texture, taste
[subjective]Sensation: sensory receptors, attention
[subjective]Meaning: interpretation, response

Question 13

Biases in the perceptual process

Answer 13

• two forms of attention: pre conscious, focal
• stimulus related factors
• context related factors
• consumer related factors: beliefs, motivation

Question 14

Attention-drawing techniques

Answer 14

1) self-relevant
2) pleasant stimuli
3) surprising stimuli
4) easy to process

Question 15

Gestalt laws: innate laws of organisation

Answer 15

• proximity
• similarity
• closure
• continuity
• symmetry

Question 16

Memory

Answer 16

Sensory input> short-term memory> long-term memory
Short term: positive habituation, negative habituation, elaboration
Long term: spreading activation, what fires together wires together, activation/retrieval

Question 17

Brand definition

Answer 17

Name,term,sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers to differentiate them from those of the competition

Question 18

Types of associations

Answer 18

1) product performance expectations (classical Pavlovian conditioning)
2) referential associations (evaluative conditioning-indirect)
3) emotions ( evaluative conditioning-direct)

Question 19

What is an attitude?

Answer 19

A person’s favourable and/or unfavourable evaluations of the object in question (thing, action, concept, person)

Question 20

Functional theory of attitudes

Answer 20

Utilitarian function, value expressive function, ego-defensive function, knowledge function

Question 21

Components of attitudes: ABC model

Answer 21

Affect (feelings), beliefs (cognitions), conation (behaviour)

Question 22

ABC model: hierarchy of effects

Answer 22

1) think, like, buy
2) think, buy, like
3) like, buy, think
4) buy, feel, think

Question 23

Fighting negative associations/ improve customers’ attitude

Answer 23

1) strengthening positive associations
2) creating new associations
3) increase the importance of positive associations
4) changing meaning of negative association
5) Decrease competitor’s ratings of an association

Question 24

Dual attitudes model

Answer 24

Implicit attitude, explicit attitude

Question 25

Theory of planned behaviour

Answer 25

Beliefs and evaluation> attitude> intention> behaviour

Question 26

Elaboration likelihood model

Answer 26

Central route, peripheral route

Question 27

Reference group

Answer 27

A group which presumed values or perspectives are used by N individual as the basis for behaviour.

Question 28

Types of reference groups

Answer 28

Aspirational groups, associate groups, dissociative groups

Question 29

Why do people make referrals?

Answer 29

1) helping other consumers feel better/make better decisions
2) helping the company/reciprocity
3) sharing enthusiasm/positive feelings
4) self related: attention/recognition/appreciation by others

Question 30

Why are people influenced by WOM?

Answer 30

Relevance, reliable, vivid information

Question 31

Managing WOM

Answer 31

Observe, facilitate, moderate, initiate

Question 32

Likelihood of ulterior motive inferences decreases when

Answer 32

1) WON is sent by friends
2) conversation is initiated by receiver
3) reward is shared between sender and receiver
4) symbolic incentives are used

Question 33

Rational choice theory principles

Answer 33

• people maximise benefits and minimise costs
• people compare the potential outcomes of all considered actions, and choose an action that yields maximum utility or value

Question 34

The rational decision maker

Answer 34

1) define the problem
2) identify the attributes
3) weight the attributes
4) generate alternatives
5) rate each alternative on each criterion
6) compute the optimal decision

Question 35

7 principles of the irrational decision maker

Answer 35

1) people prefer the status quo
2) losses loom larger than gains
3) people are influenced by sunk costs
4) people are influenced by the consideration set
5) people are influenced by reference points
6) people a are influenced by ease of informational retrieval - availability heuristic
7) visceral cues influence preferences and decisions

Question 36

Identity

Answer 36

A person’s mental model of him/herself

-individual, rational, collective

Question 37

Brands as an identity tool

Answer 37

Self-expression, social connection, symbol of personal achievement, provide self-esteem

Question 38

Hofstede’s four dimensions of national culture

Answer 38

Power distance, individualism vs collectivism, masculinity vs femininity, uncertainty avoidance

Question 39

Satisfaction and dissatisfaction definition

Answer 39

A positive or negative feeling based on the experience of purchasing, consuming or using a product

Question 40

3 dimensions to judge covariant ion

Answer 40

Distinctiveness, consistency, consensus

Question 41

Principles in making attributions

Answer 41

Discounting,augmentation

Question 42

How to respond to complaints

Answer 42

Respond, thank for complaint, recommend better alternatives, route complaints within company, provide refunds coupons apologies, email