Final Consumer and Business Behavior

Question 1

What are the three types of customers?

Answer 1

1. Consumers who buy for personal use
2. Business buyers who buy for the use of the company
3. Government buyers who buy on behalf of public services

Question 2

Describe consumer behaviour

Answer 2

The buy behaviour of the final consumers - individuals and households who buy goods and services for personal consumption

Question 3

What are the four factors affecting consumers?

Answer 3

Marketing Mix, Situational, Socio-Cultural, Psychological

Question 4

Describe the Situational factor

Answer 4

Purchase task, social surroundings, physical surroundings, temporal effects, antecedent states

Question 5

What is a subculture (included in socio-cultural factor)?

Answer 5

A group of people with shared value systems based on common life experiences and situations (Basis for subculture - ethnicity, religion, race, lifestyle, etc.)

Question 6

How can mistakes be made with cultural differences?

Answer 6

Can happen in terms of translation, like not knowing what certain words mean. Eg. Chevy Nova - “Nova” means “Won’t go” in Spain
Eg. Colgate Cue - “cue” means porno in France

Question 7

How do socio cultural groups affect us?

Answer 7

We are often impacted by the views, opinions, or behviours of others (personal, group, families).

Question 8

List the properties of groups

Answer 8

1. Norms
2. Status
3. Roles: behaviour the group expects of individuals who hold specific positions within the group

Question 9

What is a reference group?

Answer 9

A group that you do not belong to that serves as a point of comparison in forming attitudes and making choices

Question 10

What is an example of a reference group?

Answer 10

Dissociative groups (Dorm example)

Question 11

True or False: Women influence 85% of purchases, including 80% of cars and home renovations

Answer 11

True

Question 12

What percentage of influence do men have over food shopping?

Answer 12

40%

Question 13

Explain Socio Cultural - Personal Influence

Answer 13

1. Opinion leadership: These people are knowledgeable, they have expertise - you loom to them for info, you don’t have to personally know them (ex. Influencers)
2. Word of Mouth - seen as more trustworthy than ads

Question 14

List the 5 psychological influences on consumers

Answer 14

1. Motivation
2. Attention/ Perception
3. Learning
4. Attitudes

Question 15

Explain the influence of motivation

Answer 15

A need is sufficiently pressing to direct the person to seek satisfaction of the need (Biological, psychological). This tells us WHY do consumers buy what they do (think Maslow’s Hierarchy)

Question 16

Explain the influence of Attention

Answer 16

Attention focuses on how many ads do you REMEMBER seeing? And overall exposure.

Question 17

How do marketers gain exposure?

Answer 17

Ads, point of purchase displays, shelf space, product placements, buzz marketing

Question 18

Why do marketers care about exposure without attention?

Answer 18

Exposure leads to familiarity and recognition

Question 19

Explain mere exposure

Answer 19

The more often we see something, the more we like it

Question 20

Define Attention

Answer 20

Devoting cognitive resources to a stimulus

Question 21

List the three attributes of Attention

Answer 21

1. Selective: decide what to focus on
2. Dividable: multi task
3. Limited: we can only do so much at once

Question 22

What are the five ways marketers can get Attention?

Answer 22

1. Novelty/Surprise
2. Sound/motion
3. Cognition
4. Humour
5. Incomplete stimulus

Question 23

Explain the influence of Perception

Answer 23

Perception is constructive: people interpret stimuli on the fly .
Interpretation of stimuli can be affected by hard wired features of the brain, context, individual differences, and expectations

Question 24

What aspects of a product can influence our perception?

Answer 24

1. Labelling/ Language: Cigarettes: light, smooth, filtered. Beef: 95% lean, 5% fat. Vitamin water: “restore”, immune functioning.
2. Package colour: 7UP: green vs yellow. Pudding: chocolate vs vanilla

Question 25

How is the influence of Learning used in marketing?

Answer 25

It focuses on how to satisfy needs in particular ways, what brands represent, what products and services are available, how to use products and services

Question 26

What are the steps in the Learning Process?

Answer 26

1. Drive: A strong stimulus that impels action action to reduce need. 2. Cues: Any objects existing in the environment that determines the nature of the response to a drive. 3. Response: An effort to satisfy a drive. 4. Reinforcement: happens when the response is satisfying

Question 27

Explain the influence of Values, Beliefs, and Attitudes

Answer 27

Attitude: a consistent evaluation of a target object. Belief: a descriptive thought about an action. Values: deeply held beliefs, resistant to external influence but may change over time

Question 28

What are the 5 steps of the Purchase Decision Process?

Answer 28

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase evaluation

Question 29

Explain Need Recognition

Answer 29

Individual becomes aware of a difference between a desired state and an actual condition. Marketers can use tools within the mix when consumer is unaware of need.

Question 30

What are the triggers of Need Recognition?

Answer 30

1. Inventory runs out 2. Changing reference groups 3. Dissatisfaction 4. Boredom, novelty seeking 5. Family life cycle

Question 31

Explain the Information search

Answer 31

Sources of info: personal, experiential, commercial, public. Info search leads to Consideration set: the products or brands that consumers evaluate when purchasing.

Question 32

Explain Evaluation of Alternatives

Answer 32

How do consumers choose from within the consideration set? Choice and ranking depend on The consumer and The product or type of purchase (logical thinking to impulse)

Question 33

Explain the Purchase Decision

Answer 33

Purchase intention turns into decision when: easy to justify and get others' approval, and no unexpected situational even occurs

Question 34

Explain Postpurchase Behaviour

Answer 34

Performance < Expectations = Dissatisfaction Performance = Expectation = Satisfaction Performance > Expectations = Delight

Question 35

What does High involvement purchases involve?

Answer 35

Cognitive dissonance: Buyer discomfort caused by post-purchase conflict Did I make the right purchase?

Question 36

What are the differences between Organization Buyers vs. Final Consumers?

Answer 36

1. Market structure and Demand: Fewer but larger buyers, derived demand based - based on purchases by consumers 2. Nature of buying unit: More people are involved and influenced by the decisions, multiple rational decision makers 3. The decision process: more complex, formalized, dependent. More involvement, higher risk.

Question 37

What are the implication for Marketing based on Few Buyers/Sellers and Rational Buyers?

Answer 37

Few Buyers/Sellers: direct selling is important, Physical distribution is very important. rational Buyers: Ads and other promotion are technical. Price is often negotiated