CH03: Analyzing Consumer Markets

Question 1

consumer behavior

Answer 1

the study of how customers interact with goods/services to satisfy their needs and wants

Question 2

the 3 types of consumer characteristics

Answer 2

• cultural
• social
• personal

Question 3

cultural factors - consumer characteristics

Answer 3

cultures, subcultures, social classes, etc

Question 4

social factors - consumer characteristics

Answer 4

reference groups and family

Question 5

reference groups

Answer 5

all groups that have a direct or indirect effect on a person’s beliefs, decisions, and behavior

Question 6

types of reference groups

Answer 6

• primary group (family)
• aspirational groups (e.g. professional athletes)
• dissociative groups (e.g. MAGA if you are liberal)
• opinion leader/influencer (offers informal advice)

Question 7

types of family

Answer 7

• family of orientation (how you grew up)
• family of procreation (you, spouse, kids); kids are most likely to influence buying decisions

Question 8

personal factors - consumer characteristics

Answer 8

• age/stage of life cycle
• occupation + economic circumstances
• personality + self-concept
• lifestyle and values

Question 9

the 4 key processes of consumer psychology

Answer 9

• consumer motivation
• perception
• learning
• memory

Question 10

difference between needs, wants, and demands

Answer 10

• needs are basic human requirements
• wants are needs when directed at specific items
• demands are wants that are backed by an ability to pay

Question 11

Maslow’s Hierarchy of Needs

Answer 11

1. physiological
2. safety
3. social
4. esteem
5. self-actualization

Question 12

perception

Answer 12

the process by which we take in information to create a meaningful picture of the world

Question 13

selective attention

Answer 13

people are more likely to notice stimuli that relate to a current need

Question 14

subliminal perception

Answer 14

outdated; people argue that marketers embed covert, subliminal messages into ads and packaging

Question 15

selective distortion

Answer 15

tendency to interpret information in a way that fits our preconceptions

Question 16

types of memory models

Answer 16

short-term memory, long term memory

Question 17

types of long-term memory

Answer 17

• episodic (personal experiences)
• semantic (info about the world)
• procedural (motor skills)

Question 18

brand associations

Answer 18

all brand-related thoughts, feelings, perceptions, images, etc. that become linked to a brand node

Question 19

memory encoding

Answer 19

how and where information gets stored into memory

Question 20

memory retrieval

Answer 20

the way information gets out of memory

Question 21

the 5 stages of the consumer buying process

Answer 21

1. problem recognition
2. information search
3. evaluation of alternatives
4. purchase decision
5. post-purchase behavior

Question 22

the 5 sets involved in consumer decision making

Answer 22

1. total set
2. awareness set
3. consideration set
4. choice set
5. actual choice

Question 23

expectancy-value model

Answer 23

brand attributes are multiplied by weightings to produce a preference ranking

Question 24

heuristics

Answer 24

rules of thumb that customers use in making purchasing decisions

Question 25

the 2 routes of elaboration likelihood model

Answer 25

central route: attitude is based on consumer’s diligent, rational consideration

peripheral route: attitude results from the consumer’s association of a brand with either positive or negative peripheral cues (e.g. celebrity endorsement, credible source, strong emotional responses)

Question 26

the 6 types of perceived risk

Answer 26

• functional
• physical
• time
• financial
• psychological
• social

Question 27

types of post-purchase behavior

Answer 27

satisfaction, actions, uses, disposal