Understanding customer behaviour Flashcards
what are consumer products?
products for personal or household use
what are organisation products?
-for use in the organisation of a business or organisation
-to manufacture other products
-for resale to others
roles in the consumer buying process?
- initiator
- influencer
- decider
- buyer
- user
what are the two paradigms of consumer behaviour?
- information processing (cognitive psychology)
- consumer culture theory
how does information processing see consumption?
Sees consumption as a largely rational
process based on need recognition
how does consumer culture theory see consumption?
as a much less rational process. More socio-cultural + experiential activity
what is information processing?
the process by which a stimulus is received, interpreted, stored in memory and later retrieved.
what are the types of consumer decisions?
-extended problem solving (e.g buying a car)
-variety seeking behaviour (e.g buying cookies)
-limited problem solving (e.g carpet buying)
-habitual problem solving (e.g buying salt)
what is the consumer buying decision process?
- Need recognition / problem awareness: functional
(resource depletion; unpredictable failure); emotional need;
need inhibitors, need simulation - Information search: internal (from memory), external;
building awareness set - Evaluation of alternatives: reducing to evoked set (choice
criteria (see the next slide) - Purchase: types of consumer decisions; high / low
involvement; store or online - Post-purchase evaluation: Cognitive dissonance
what are the influences on consumer behaviour (personal)?
-Information processing
-Motivation & values
-Beliefs & attitudes
-Personality
-Lifestyle
-Life cycle
what are the influences on consumer behaviour (social)?
-culture + subculture
-social class
-reference groups
what is perception?
the complex process by which people
select, organise & interpret sensory stimulation into a meaningful picture of the world
what is influence marketing?
involves using individuals who have social (media) influence to reach consumer
what are the challenges for companies around influencer marketing?
-Costs of key influencers
-Influencers working with multiple brands
-Overuse of influencers by company
-Poor brand with influencer
-Lack of regulation
-Influencer fraud
what is centralised purchasing?
Bulk, repetitive buying of smaller group
of goods; focus on knowledge about costs and suppliers
