Consumer Behaviour Flashcards
(36 cards)
What does consumer behaviour allows us to do?
- Identify target markets and segments
- Identify opportunities and unmet/latent needs
- Discover how attitudes can be changed (through marketing and persuasion)
- Understand how consumers choose products and how they perceive brands and stores
What are the 3 consumer roles?
- buyer
- payer
- user
What are the 5 decision-making process of consumer behaviour?
- Need recognition
- information search
- alternative evaluation
- purchase decision
- post-purchase behaviour
What is another name for the decision making process of consumer behaviour?
Hierarchy of Effects Model of Consumer Behaviour
What is need recognition?
The process that occurs whenever the consumer sees a discrepancy between a desired state and an actual state that is sufficient to activate/initiate the decision-making process.
What are the 2 motives that may originate for a decision or choice of activity?
Negative: involve actively making a decision in order to remove a negative circumstance or solve a problem (informational motives)
Positive: involves sensory gratification, intellectual stimulation/master, and social approval (transformational motives).
What is information search?
A process whereby a consumer searches for appropriate information in order to make a reasonable decision.
What do a customer’s extensiveness of search depend on?
- product attributes
- involvement and memory
- expertise and experience, including vicarious experience
- purchase situation
What are the 3 product attributes?
- search goods
- experience goods
- credence goods
What are search goods?
Those with attributes that can be evaluated prior to purchase or consumption. Consumers rely on prior experience, direct product inspection and other information search activities to locate information that assists in the evaluation process. Most products fall into the search goods category e.g. clothing, office stationery, home furnishings
What are experience goods?
Those that can be accurately evaluated only after the product has been purchased and experienced. Many personal services fall into this category e..g restaurants, hairdresser, beauty salon, theme park, travel holiday.
What are credence goods?
Those that are difficult or impossible to evaluate even after consumption has occurred. Evaluation difficulties may arise because the consumer lacks the knowledge or technical expertise to make a realistic evaluation or, alternatively because the cost of information-acquisition may outweigh the value of the information available. Many professional services fall into this category e.g. accountant, legal services, medical diagnosis/treatment, cosmetic surgery.
What does involvement and memory refer to?
Involvement refers to the perceived relevance of the product to the consumer based on their needs, values and interests. The higher the involvement of the product (more relevant it is to your life), the greater the search
What are the 5 types of risk?
Types of risk: functional, financial, social, physical, obsolescence.
What does expertise and experience, including vicarious experience mean?
How much expertise/experience you have in regards tot the product — direct (your own experience) or if search is vicarious (through other people), then search is minimised.
What does purchase situation mean?
Crowded vs. quiet shopping places e.g. do I need extra warranty?
High vs. Low involvement products: More/less attention, advanced/basic understanding of needs, high/low consumption evaluation, slow/fast decisions.
What is alternative evaluation?
Process that involves the consumer identifying a small number of products in which he or she is interested. The consumer narrows down the choices by deciding which of all the possibilities are feasible, and by comparing the pros and cons of each remaining option.
What are the 2 consumer mental aids?
- Evoked Set – refers to a mental list (selective) of acceptable brands.
- Heuristics – refer to the rules consumers employ to simplify the decision-making process and make alternative evaluation easier (decision rules or “rules-of-thumb”) e.g. satisficing and escalation of commitment
What is satisficing?
A situation where people seek solutions or accept choices or judgements that are “good enough” for their purposes (rather than an optimal solution).
What is escalation of commitment?
The phenomenon where people justify increased investment in a decision, based on their cumulative prior investment, despite new evidence suggesting that the cost moving forward of continuing the decision outfights the expected benefit.
e.g. Sunk cost fallacy: a cost has already been incurred and cannot be recovered.
What is purchase decision?
Encouraging product trial (limited-time exploration) is an important objective for firms. It provides an explanatory phase in consumer behaviour.
What is purchase decision affected by?
Attitudes of others and expected situational factors.
What is post-purchase behaviour?
Involves the consumer evaluating and thinking about their choice. They evaluate the products’ performance in the light of their own expectations (which change over time), attempt to close the gap between their desired and actual state/experience, and look for evidence that the decision they’ve made is the right one.
When is a customer most vulnerable?
Consumers are most vulnerable once they have made a decision to purchase; this is where marketers can help build satisfaction and loyalty.
