Chap 5

Question 1

Economic buyers:

Answer 1

Economists assume that consumer know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money.

Question 2

Influences on consumer behavior:

Answer 2

Marketing mix + All other stimuli → Person making decisions based on: Economic needs, Psychological needs, Social influences, Purchase situation → Consumer decision process → Person does or does not purchase

Question 3

Economic needs:

Answer 3

Which are concerned with making the best use of a consumer’s time and money as the consumer judges it. Some economics needs are: Economy of purchase or use, Efficiency in operation or use, Dependability in use, Improvement of earnings, Convenience.

Question 4

Discretionary income:

Answer 4

What is left of income after paying taxes and paying for necessities. Discretionary income is an elusive concept because the definition of necessities varies from family to family and over time.

Question 5

Need:

Answer 5

Are the basic forces that motivate a person to do something. Needs are more basic than wants.

Question 6

Wants:

Answer 6

Are “needs” that are learned during a person’s life.

Question 7

Drive:

Answer 7

Is a strong stimulus that encourages action to reduce a need. Drives are internal; they are the reason behind certain behavior patterns.

Question 8

Four-level hierarchy of needs:

Answer 8

Physiological, safety, social and personal needs.

Question 9

Physiological needs:

Answer 9

Are concerned with biological needs such as food, liquid, rest and sex.

Question 10

Safety needs:

Answer 10

Are concerned with protection and physical well being (perhaps involving health, financial security, medicine and exercise). Marketers that offer solutions to consumer problems build brand on loyalty.

Question 11

Social needs:

Answer 11

Are concerned with love, friendship, status and esteem; things that involve a person’s interaction with others. Marketers that help people connect with others inspire positive feelings about their own brands.

Question 12

Personal needs:

Answer 12

Are concerned with an individual’s need for personal satisfaction, unrelated to what others think or do. Examples include accomplishment, fun, freedom and relaxation.

Question 13

Perception:

Answer 13

How we gather and interpret information from the world around us.

Question 14

Selective exposure:

Answer 14

Our eyes and minds seek out and notice only information that interests us.

Question 15

Selective perception:

Answer 15

We screen out or modify ideas, messages and information that conflict with previously learned attitudes and beliefs.

Question 16

Selective retention:

Answer 16

We remember only what we want to remember.

Question 17

Learning:

Answer 17

Is a change in a person’s thought processes caused by prior experience.

Question 18

Cues:

Answer 18

Products, signs, ads and other stimuli in the environment.

Question 19

Response:

Answer 19

An effort to satisfy a drive.

Question 20

Reinforcement:

Answer 20

Reinforcement of the learning process occurs when the response is followed by satisfaction. If a product satisfies you you are more likely to buy it in the future.

Question 21

Attitude:

Answer 21

A person’s point of view towards something.

Question 22

Belief:

Answer 22

A person’s opinion about something.

Question 23

Expectation:

Answer 23

An outcome or event that a person anticipates or looks forward to.

Question 24

Trust:

Answer 24

Is the confidence a person has in the promises or actions of another person, brand or company.

Question 25

Psychographics / Lifestyle analysis:

Answer 25

The analysis of a person’s day-to-day pattern of living as expressed in that person’s activities, interests and opinions (AIOs). Activities = Work, Hobbies, Social events, Vacation, Sports, etc… Interests = Family, Home, Job, Fashion, Food, Media, etc… Opinions = Themselves, Social issues, Politics, Family size, Education, etc…

Question 26

Social class:

Answer 26

A group of people who have approximately equal social position as viewed by others in the society. In most countries social class is closely related to a person’s occupation, but it may also be influenced by education, community participation, where a person lives, income, possessions, social skills and other factors.

Question 27

Reference group:

Answer 27

Is the people to whom an individual looks when forming attitudes about a particular topic.

Question 28

Opinion leader:

Answer 28

Is a person who influences others. Opinion leaders aren’t necessarily wealthier or better educated.

Question 29

Culture:

Answer 29

The whole set of beliefs, attitudes and ways of doing things of a reasonable homogenous set of people.

Question 30

Ethnic dimension:

Answer 30

A marketer needs to study ethnic dimensions very carefully because they can be subtle and fast changing. Many firms make the mistake of treating all consumers in a particular ethnic group as homogenous (i.e. all African American as “the black market”). More marketers pay attention to ethnic groups now because the number of ethnic consumers is growing at a much faster rate than the overall society.

Question 31

Purchase reason can vary:

Answer 31

Time, surroundings and why they make the purchase can affect the buying behavior.

Question 32

Consumer decision process:

Answer 32

The consumer decision process begins when a consumer becomes aware of an unmet need. The consumer’s problem-solving process then focuses on how best to meet that need. Problem recognition often happens quickly. How the consumer solves the problem depends on the situation. A consumer may search for information, identify alternatives, decide what factors (criteria) are important and then evaluate one or more alternative products that might meet their need. How much effort is put into the buying decision depends in part on the economic needs, psychological variables, social influences and other purchase influence factors. For instance when a buyer has little involvement in the purchase or the expense is small, a poor buying decision will result in little financial or social risk.

Question 33

Extensive problem solving:

Answer 33

Consumers put much effort into deciding how to satisfy a need.

Question 34

Limited problem solving:

Answer 34

Used by consumers when some effort is required in deciding the best way to satisfy a need.

Question 35

Routinized response behavior:

Answer 35

A consumer regularly selects a particular way of satisfying a need when it occurs.

Question 36

Low-involvement purchases:

Answer 36

Purchases that have little importance or relevance for the customer.

Question 37

Dissonance:

Answer 37

A feeling or uncertainty about whether the correct decision was made.

Question 38

Adoption process:

Answer 38

The steps individuals go through on the way to accepting or rejecting a new idea. Awareness – The potential customer comes to know about the product but lack details. Interest – If the consumer becomes interested, he or she will gather general information and facts about the product. Evaluation – A consumer begins to give the product an mental trial, applying it to his or her personal situation. Trial – The consumer may buy the product to experiment with it in use. Decision – The consumer decides on either adoption or rejection. Confirmation – The adopter continues to rethink the decision and searches for support for the decision – that is, further reinforcement.

Question 39

Consumer behavior in international markets:

Answer 39

Sometimes an understanding of local cultural influences points to new ways to blend the four Ps. Developing a marketing mix that really satisfies the needs of a target market takes a real understanding of consumer behavior and the varied forces that shape it. So when planning strategies for international markets it’s best to involve locals who have a better chance of understanding the experiences, attitudes and interests of your customers.