Chapter 1

Question 1

Consumer behaviour

Answer 1

study of the processes involved when individuals or groups select, purchase, use, or dispose of a products, services, ideas, or experiences to satisfy their needs and desires

Question 2

why no longer called buyer behaviour

Answer 2

o Now know that consumer behaviour is ongoing process that does not even need to involve a purchase and extends beyond what merely happens at the moment an individual hands over money or credit card and in return gets a good or service

Question 3

the exchange

Answer 3

o Is when two + organizations or people give and receive something of value
o Is only a part of the process

Question 4

pre-purchase issues

Answer 4

how do customer decide they want or need a product

Question 5

purchase issues

Answer 5

is engaging in consumption stressful or pleasant

marketer: how are situational factors

Question 6

post purchase issues

Answer 6

does consumption provide pleasure or preform intention

form marketer: will they be satisfied

Question 7

does consumer behaviour focus on today?

Answer 7

Also focuses on tomorrow as anyone can see what is happening today

Question 8

80/20 rule

Answer 8

20% of users are 80% of sales

Question 9

market segmentation

Answer 9

 identifies groups of consumer who are similar to another in one or more ways and devises marketing strategies that appeal to one or more groups

Question 10

2 ways to segment

Answer 10

Demographic
- age, family, social class, ethnicity..

Relationships
- giving customer reason to maintain bond with company over time
ex Sephora point program

Question 11

give example of customer having strong relationship with brand

Answer 11

calling Tim Hortons Tims

Question 12

how can you create relationships with customer?

Answer 12

database marketing

giving tailored ads based on what people want

Question 13

types of marketing culture

Answer 13

Popular culture
- ex Ronald Mcdonald or Lockness Monster

User-generated Content
- Ex: Starbucks asks customer to design their winter cup

Question 14

with consumer trends you must ____ to keep up

Answer 14

keep ahead

as underlying values that drive consumers toward a product are constantly changing

Question 15

Important consumer trends

Answer 15

Sharing economy
 Continued blurring of the boundary between producers and consumers as everyday people
 Will see de-emphasis on owning things such as a car but rather on an as-need basis
 People would rather rent an experience then to own it

Authenticity
 Consumer are placing premium on knowing lineage of companies and like to engage with the brand and creators
 Transparency in supply chain, ingredients and processes

Value-driven consumption
 Consumers will buy in line with their values
 Supporting environment and so on

Decreased emphasis on gender
 More inclusive on race and so on

Social shopping
 Lone decision makers will be harder to find as people want others feedback

Simplification and integration
 Movement away from hyper choice and towards de-cluttering of one’s life and possessions

Higher priority on experiences rather than acquiring things

Anonymity
 People want the right to be forgotten
 Consumers want platforms that do no retain posts or allow users to create alternative identities
 Companies may need to adapt to consumer wanting to deny access to unnecessary information

Question 16

what it is called when parent surrenders to a Childs response

Answer 16

parental yeilding

Question 17

prescribed dose of ethics guidelines

Answer 17

 Disclosure of substantial risk with a product
 Identifying assed features that will increase the cost
 Avoid false or misleading advertising
 Avoid selling or fundraising under the guise of market research

Question 18

who monitors ad campaign for ethics

Answer 18

Canadian Marketing association

Question 19

2 examples from Canadian marketing association

Answer 19

Clarity
- marketing communication must be simple and easy to understand

Accessibility
-  Disclosure of substantial risk with a product
 Identifying assed features that will increase the cost
 Avoid false or misleading advertising
 Avoid selling or fundraising under the guise of market research

Question 20

does marketing create artificial needs?

Answer 20

• Need is a basic biological motive while a want represent one way society has taught us to satisfy them
• Ex: thirst is a biological need many individuals are taught to want coke to satisfy rather then water

Question 21

is marketing necessary

Answer 21

• We are not materialistic enough but focus on the irrational value goods and services give us
• Reduces search time for a product

Question 22

dimensions of the dark side of consumer behaviour

Answer 22

Addictive consumption
o Addiction is the psychological or psychological dependency on products
o Is gaming disorder that is an official disease
o Social media addiction being compared to a chemical dependency

Compulsive consumption
o The born to shop mentality
o Those who shop because they feel compelled to do so rather than because shopping is pleasurable or a functional task
o Shopaholics
o Compulsive consumption is different form impulse buying
o Consumers are not unlike an addicts
o Destructive consumer behaviour can be characterized in 3 ways
 Behaviour is not engaged by choice
 Gratification derived from the behaviour is short lived
 Person experiences strong feelings of regret or guilt afterward
o Ex: Gambling

Illegal activities
o Theft is committed every 5 seconds
o Majority caught are middle-high income who do so for thrill

Anti-consumption

Consumed consumers
- people are used/exploited willingly or not for commercial gain

Question 23

Primary vs Secondary research

Answer 23

primary
- is data collected by researcher specifically for the research question
- is expensive
- ex: survey, focus group, interview, observational, experimental

Secondary
- collected for other reasons
- cheap