business

Question 1

Define the term “consumer buyer behavior” and explain its significance in marketing.

Answer 1

Consumer Buyer Behavior:
- Definition: The buying behavior of final consumers (individuals and households) who purchase goods and services for personal consumption.
- Importance: Understanding consumer behavior helps businesses develop effective marketing strategies, product design, pricing, and promotion.

Question 2

Describe the five categories of adopters according to Rogers’ Diffusion of Innovation theory (Innovators, Early Adopters, Early Majority, Late Majority, Laggards), and their characteristics.

Answer 2

rogers’ Diffusion of Innovation Theory:
- Innovators (2.5%): Venturesome, well-educated, financially secure, open to new ideas.
- Early Adopters (13.5%): Opinion leaders, young, above-average education, at the forefront of innovation.
- Early Majority (34%): Risk-averse, require reassurance, above-average in age, education, and income.
- Late Majority (34%): Skeptical, adopt due to social or economic factors, below-average education and income.
- Laggards (16%): Suspicious of new ideas, resistant to change, lowest income, education, and social status.

Question 3

Analyze the potential challenges Sontanya might face in targeting different adopter categories for their new Thought Recognition Software product.

Answer 3

Purchase Decision-Making Process:
- Need recognition: Identifying a problem or need to be satisfied.
- Information search: Gathering information from various sources about potential solutions.
- Evaluation of alternatives: Assessing different options based on specific criteria.
- Purchase decision: Choosing an option and making the purchase.
- Post-purchase behavior: Evaluating satisfaction and potential cognitive dissonance.

Question 4

Discuss the factors that influence the consumer purchase decision-making process for a technologically advanced product like Thought Recognition Software.

Answer 4

Customer Satisfaction Strategies:
- Exceeding customer expectations through superior product quality and performance.
- Providing excellent customer service and support, both pre- and post-purchase.
- Implementing effective complaint handling and resolution processes.
- Offering warranties, guarantees, and after-sales services.
- Gathering and responding to customer feedback and suggestions.

Question 5

Explain the difference between opinion formers and opinion leaders

Answer 5

. Opinion Formers, Leaders, and Followers
- Opinion Formers: Experts perceived as authorities by consumers (e.g., doctors, celebrities).
- Opinion Leaders: Individuals with perceived skills or expertise who influence peer groups.
- Opinion Followers: The majority who seek guidance from opinion leaders and formers.

Question 6

What are the six reasons why customers make purchases?

Answer 6

To Improve: Customers purchase to enhance or improve their current situation.
- To Satisfy: They buy to satisfy needs or desires.
- To Protect: Purchases are made for safety, security, or protection.
- To Reduce: Customers may buy to reduce risk, effort, or discomfort.
- To Save: Purchases can be driven by the desire to save money or resources.
- (Sub)Conscious: Some purchases are influenced by subconscious motivations

Question 7

Why is understanding target market consumer behavior crucial for marketing strategy?

Answer 7

Marketing mix should align with the target audience’s needs and characteristics.
- Understanding target market consumer behavior is crucial.
- Ensuring maximum perceived value leads to customer retention.
- Key elements: Market analysis, segmentation, consumer decision process, marketing strategy.

Question 8

List and briefly explain the four categories of influences on buyer behavior?

Answer 8

Cultural: Culture, subculture, social class.
- Social: Reference groups, family, roles, and status.
- Personal: Age, occupation, economic situation, lifestyle, personality, and self-concept.
- Psychological: Motivation, perception, learning, beliefs, and attitudes.

Question 9

Describe the four stages of the A.I.D.A. model and their significance in the buyer’s journey

Answer 9

Attention: Grabbing the customer’s attention.
- Interest: Generating interest in the product or service.
- Desire: Creating a desire or want for the offering.
- Action: Prompting the customer to take action and make a purchase.

Question 10

What are the main stages of the consumer decision-making/product acquisition process

Answer 10

The consumer decision-making/product acquisition process involves several stages: motive development, information gathering, product evaluation, product selection, acquisition, and re-evaluation

Question 11

Explain the difference between functional needs and psychological needs?

Answer 11

The need/problem recognition stage involves consumers realizing they have an unsatisfied need or want. Needs can be functional (related to product performance) or psychological (personal gratification)

Question 12

Describe the two types of information search that consumers undertake after recognizing a need.

Answer 12

After recognizing a need, consumers engage in information search which can be internal (using their own knowledge and memory) or external (internet, friends, consumer reports, etc.). The amount of searching depends on the type of purchase.

Question 13

what are the different types of risks that consumers may consider during the information search stage?

Answer 13

During the information search stage , consumers may consider various risks, such as performance, financial, safety, social, and psychological risks, which influence their decision-making

Question 14

How does the communication model relate to the consumer decision-making process?

Answer 14

The communication model depicts the process of transmitting a message from a sender to a recipient, involving encoding, a channel, decoding, and potential noise or feedback. This model can be applied to understand how marketing communications reach and influence consumers during the decision-making process.

Question 15

Explain the “consideration set” concept in the evaluation of alternatives stage

Answer 15

Rational” model suggests creating a “consideration set” after information search
- Consideration set includes Universal, Retrieval, and Evoked alternatives

Question 16

What factors are typically considered when evaluating alternatives before purchase?

Answer 16

Act may be affected by the nature of the product
- Regular or one-off purchase; for regular, no decision process unless circumstances change
- Once decided, customers want a simple process to complete the transaction

Question 17

How does the nature of the product (regular vs. one-off) affect the purchase/acquisition stage?

Answer 17

Process doesn’t end after purchase
- Vital for organizations to ensure customers feel happy and valued for loyalty

Question 18

Discuss the three post-purchase strategies mentioned for enhancing customer loyalty.

Answer 18

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Post-Purchase Strategies:
- Maintain communication with customers
- Provide product guarantees
- Encourage customer feedback

Question 19

How does the “rational” model of consumer behavior differ from other models in the decision-making process?

Answer 19

consumers make decisions based on logical and rational considerations, carefully weighing the pros and cons of each alternative. Other models, such as the emotional or impulsive models, acknowledge that consumer decisions can be influenced by factors like emotions, impulses, and psychological biases, which may lead to less rational decision-making.

Question 20

Analyze the role of brand and longevity in the evaluation of alternatives.

Answer 20

Brands and longevity play a significant role in the evaluation of alternatives. Well-established brands with a long history and reputation can provide a sense of trust and reliability, which can influence consumers’ perceptions of quality and value. Longevity can also signal a brand’s ability to adapt and remain relevant over time, which can be an important consideration for some consumers.

Question 21

Provide examples of effective communication and feedback strategies in the post-purchase stage.

Answer 21

Follow-up emails or calls to ensure customer satisfaction and address any concerns or questions.
b. Providing clear instructions, tutorials, or support resources to help customers get the most out of their purchase.
c. Offering loyalty programs, discounts, or exclusive offers to encourage repeat purchases and foster customer loyalty.
d. Actively soliciting customer feedback through surveys or reviews, and responding promptly to address any issues or incorporate suggestions for improvement.
e. Maintaining an active presence on social media and other online platforms to engage with customers and address queries or concerns.