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MARK 301 > Ch. 3 - Consumer Behaviour > Flashcards

Ch. 3 - Consumer Behaviour Flashcards

1
Q

What are the three types of customers?

A
  • Final buyers/consumers
  • Business buyers who buy for the use of the company
  • Government buyers who buy on behalf of public services
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2
Q

Final Consumers

A

Individuals and households who buy goods and services for personal consumption

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3
Q

Black Box of the Consumer

A

The idea that we don’t know why consumers buy certain goods. Businesses need to do market research to hypothesize why consumers behave the way they do.

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4
Q

Purchase Decision-Making Process

A
  1. Need Recognition
  2. Information Search
  3. Evaluation of Alternatives
  4. Purchase Decision
  5. Post-purchase Evaluation
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5
Q

Need Recognition

A

An individual becomes aware of a difference between a desired state and an actual state. This is the first stage of the purchase decision-making process.

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6
Q

How is need recognition triggered?

A

Two ways: consumer level and marketer level.
Consumer level: e.g. something breaks, product solves a problem in your life
Marketer level: e.g. owned product is out of date, visually appealing

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7
Q

What are some examples of needs to fulfill?

A

Examples include: physiological, inventory, reference group change, dissatisfaction, boredom (variety seeking)

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8
Q

Information Search

A

The second stage of the purchase decision-making process. Involves looking for products to satisfy the need recognized in stage one.

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9
Q

What are the different sources of information?

A
  • Personal
  • Experiential
  • Commercial
  • Public
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10
Q

Personal Source of Information

A

Family, friends, neighbours

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11
Q

Experiential Source of Information

A

Handling/using a product yourself

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12
Q

Commercial Source of Information

A

A firm-controlled source of information (informative, but less influential). Examples include: advertising, salespeople

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13
Q

Public Source of Information

A

An independent source of information (informative and influential). Examples include: government agencies, consumer groups

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14
Q

Consideration Set

A

The products or brands that consumers evaluate when purchasing

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15
Q

Evaluation of Alternatives

A

The third stage of the purchase decision-making process. Consumers rank the products in their consideration set usually based on a set of criteria. Consumers will often follow their heart/intuition

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16
Q

Purchase Decision

A

The fourth stage of the purchase decision-making process. Consumers choose their highest ranked product in their consideration set. A consumer’s purchase intention does not always match their actual purchase decision.

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17
Q

Why might a consumer’s purchase intention not turn into their actual purchase decision?

A
  • Not easy to justify/get others’ approval
  • Price hikes
  • Negative word of mouth
  • Out of stock
  • Run into more desirable alternatives before purchase is made
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18
Q

Post-purchase Evaluation

A

The fifth and final stage of the purchase decision-making process. Consumers evaluate their purchase decision based on product performance compared to their expectations. Consumers will take action based on their satisfaction.

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19
Q

What is a consumer’s satisfaction level based on a product’s performance compared to their expectations?

A

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

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20
Q

What actions might a consumer take based on their level of satisfaction with their purchase?

A

Complaining (dissatisfied), spread positive/negative word of mouth, repeat purchasing (satisfied/delighted)

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21
Q

What factors affect a consumer’s purchasing decision?

A
  • Marketing mix influences
  • Psychological influences
  • Socio-cultural influences
  • Situational influences
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22
Q

Marketing mix influences on the consumer decision-making process

A

Product, Price, Promotion, Place

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23
Q

High Involvement Purchases

A
  • Purchases that consumers research extensively before purchasing
  • Need to stand out and fulfill their purpose
  • Expensive, buy once and you’re good for a while
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24
Q

Low Involvement Purchases

A
  • Purchases that are habitual and low risk
  • Need to fulfill their purpose
  • Cheap, consumed (need to be repurchased regularly)
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25
Q

Give an example of a high involvement purchase

A

Examples include: cars, smartphones, appliances

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26
Q

Give an example of a low involvement purchase

A

Examples include: toothpaste, bread, fast food

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27
Q

True or False: Consumers need to go through all stages of the purchase decision-making process for low involvement purchases.

A

False. Consumers often go from need recognition (stage 1) to a purchase decision (stage 4) for low involvement purchases. Consumers will spend less time making low involvement purchases compared to high involvement purchases.

28
Q

Cognitive Dissonance

A

Buyer discomfort caused by post-purchase conflict. Occurs when a consumer receives information which contradicts their existing beliefs. The consumer feels that there are better alternatives.

29
Q

List the 5 situational influences on consumer purchase decisions

A
  • Purchase Task
  • Social Surroundings
  • Physical Surroundings
  • Temporal Effects
  • Antecedent States
30
Q

Purchase Task

A

The reason for engaging in a purchase decision (e.g. buying a gift or buying for yourself). People tend to spend more on others (especially people they respect)

31
Q

Social Surroundings

A

How others influence a person’s purchase decisions

32
Q

Physical Surroundings

A

Lighting, smell, music, mannequins

33
Q

Temporal Effects

A

Time of day/year, day of the week, amount of time available to shop

34
Q

Antecedent Effects

A

Mood (consumers are more impulsive when they are happy), amount of cash on hand

35
Q

Psychological Influences on consumer purchase decisions

A
  • Motivation
  • Personality
  • Perception
  • Learning
  • Values, beliefs, attitudes
  • Lifestyle
36
Q

Psychological Influences: Motivation

A

A need that is sufficiently pressing to direct a person to seek its satisfaction (why consumers buy what they do)

37
Q

Maslow’s Hierarchy of Needs

A

From top to bottom: Self-actualization, Esteem, Love/Belonging, Safety, Physiological. The needs at the bottom need to be fulfilled to fulfill the needs at the top.

38
Q

Physiological Needs

A

Basic needs for survival that must be satisfied first. E.g. food, water, shelter, breathing

39
Q

Safety Needs

A

Self-preservation and physical well-being

40
Q

Social Needs (Love/Belonging)

A

Needs concerned with love and friendship (relationships)

41
Q

Esteem Needs

A

The need for achievement, status, prestige, and self-respect

42
Q

Self-Actualization

A

The full realization of one’s creative, intellectual, and social potential through internal drive

43
Q

Personality

A

A person’s character traits that influence behavioural responses

44
Q

Attention

A

Devoting cognitive resources to a stimulus

45
Q

What 3 attributes describe attention?

A
  • Selective (one can decide what to focus on)
  • Dividable (can be divided, can multi task)
  • Limited (we can only do so much at once)
46
Q

What different methods do companies use to get consumers’ attention?

A
  • Novelty (unique marketing)
  • Humour
  • Zeigarnik Effect
47
Q

Zeigarnik Effect

A

Tendency to remember interrupted or incomplete tasks more easily than completed tasks. In marketing, stimuli can be incomplete to get consumers to devote cognitive resources to process the stimulus (thus they are more likely to remember the stimulus)

48
Q

Exposure

A

Contact with a stimulus

49
Q

Why do marketers care about exposure without attention?

A

Exposure leads to familiarity and recognition. Generally, the more often we see something, the more we like it (mere exposure effect)

50
Q

Perception

A

The process by which people select, organize, and interpret information to form a meaningful picture of the world

51
Q

Learning

A

Changes in an individual’s behaviour arising from experience (learn from observation, experience, or thinking)

52
Q

Learning Process

A
  1. Drive (problem recognition)
  2. Cues (something to satisfy drive)
  3. Response (effort to satisfy drive)
  4. Reinforcement (happens when response is satisfying; know that a product can satisfy a drive)
53
Q

Values

A

Deeply held beliefs that are resistant to external influences, but may change over time

54
Q

Belief

A

A descriptive thought about an object based on personal experience, advertising, and word of mouth

55
Q

Attitude

A

A consistent evaluation of a target object which has action implications. Attitude is shaped by values and beliefs

56
Q

Culture

A

Set of basic values, perceptions, wants and behaviours learned from family and important institutions. Core values that remain stable or change slowly

57
Q

Subculture

A

A group of people with shared value systems based on common life experiences and situations

58
Q

Properties of Groups

A
  • Norms
  • Status
  • Roles
59
Q

Norms

A

Values, attitudes, and behaviours that the group deems appropriate for members

60
Q

Status

A

Relative position within a group (e.g. hierarchy)

61
Q

Roles

A

Behaviour the group expects of individuals who hold specific positions within the group

62
Q

Reference Group

A

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

63
Q

Aspirational Group

A

A reference group that you want to be in

64
Q

Dissociative Group

A

A reference group that you do NOT want to be in

65
Q

Associative Group

A

A group that you belong to

MARK 301 (14 decks)

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