3. Consumer behaviour & consumer culture Flashcards
What is the definition of consumer behaviour?
The consumer’s personality and tendencies when it comes to purchasing a product
Example: The grocery store knows people get hungry when they smell food, so they put it in the front and when people are hungry they tend to buy things that they want and not need
Why is it important to know how the consumer behaves?
- To satisfy consumer wants with a product
- Identifying unmet needs
- Identify opportunities for value creation
- Find ways to change their behaviour
What is the definition of rational decision making model?
A model which describes how individuals should behave to maximise some outcome
What are the steps within this model?
- Define the problem
- Identify the decision criteria
- Allocate weights to the criteria
- Develop the alternatives
- Select the best alternative
Describe two types of consumer behaviour
- Maximizers
- Exhaustively compares products to seek the best value
- unhappier with outcomes
- Satisficers
- Accepts whatever is good enough
- happier with outcomes
Who are the parties involved in the consumer decision process?
- Buyer
- involved in all 5 steps
- User
- need recognition
- purchase
- post-purchase evaluation
- Payer
- only evaluation of alternatives and purchase
What are the steps in a consumer decision-making process?
- Need recognition
- Information search
- Alternative evaluation
- Purchase decision
- Post-purchase behaviour
- What is the definition of need recognition?
Realising that the consumer is lacking something hence a need needs to be satisfied
Example: Promoting breakfast at night to promote breakfast for the next day
- What is the definition of information search?
Collecting data related to the purchase
involving:
- Product attributes (SEC)
- Involvement and memory
- Expertise and experience
- Purchase situation
What is the definition of SEC?
SEC stands for Search, Experience and Credence which are product attributes that help buyers decide
Describe each attribute of SEC
- Search
- Consumers rely on prior experience, direct product inspection and other sources
- E.g clothing, home furnishing
- Experience goods
- Can only be evaluated after the product has been purchased
- Restaurants, hairdressers, travel
- Credence goods
- Based on the consumers lack of knowledge that it cannot be evaluated whether the service was a good value or not
- accountant, legal services, medical
What is the definition of alternative evaluation?
Comparing the brands that have the product that the consumer wants to purchase
What steps are involved in alternative evaluation?
- Evoked set: mental list of acceptable brands
- Evaluation criteria: objective and subjective
- Heuristics: Filters to narrow down the decision process
What is the definition of purchase decision?
The point in the process which the consumer purchases their preferred brand based on certain factors.
What are the factors involved in the purchase decision?
- Product trial: testing the product
- Compensatory decision rules: the weight of certain aspects outweighing another
