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MOS 1021 Unit #8 > Chapter 11 > Flashcards

Chapter 11 Flashcards

1
Q

What is the focal point of marketer’s efforts when it comes to consumers?

A

Their buying decisions

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2
Q

Why do most large companies research consumer buying
decisions in great detail?

A

To answer questions about:
- What consumers buy
- Where they buy
- How and how much they buy
- When they buy
- Why they buy

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3
Q

What can marketers find out by studying actual consumer purchases?

A
  • What they buy
  • Where
  • How much
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4
Q

Why is learning about the WHYS behind consumer not so easy?

A

Answers are often locked deep within the consumer’s mind. Often, consumers themselves don’t know exactly what influences their purchases.

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5
Q

What is the central question for all marketers?

A

Given all the characteristics (cultural, social, personal, and psychological) affecting consumer behaviour, how
do we best design our marketing efforts to reach our consumers most effectively?

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6
Q

What are the 4 characteristics affecting consumer behaviour?

A
  1. Cultural
  2. Social
  3. Personal
  4. Psychological
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7
Q

Who does the study of consumer behaviour begin and end with?

A

With the individual

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8
Q

What was the field of consumer behaviour referred to as in the past?

A

Buyer behaviour

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9
Q

What did the name buyer behaviour reflect emphasis on?

A

The actual exchange of goods for money

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10
Q

What do marketers now recognize about the field of consumer behaviour?

A

Study of consumer behaviour is an ongoing process that starts long before the consumer purchases a product or service, and continues long after he or she consumes
it.

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11
Q

What does the new and extended definition of consumer behaviour now say about building relationships with customers?

A

In order to build brand loyalty and lasting relationships with their customers, marketers must be
aware of several issues before, during, and after purchase

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12
Q

What are the 3 stages of the consumption process?

A
  1. Pre-purchase
  2. Purchase
  3. Post-purchase
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13
Q

What are some issues that arise in the pre-purchase stage from the consumer’s perspective?

A
  • How does a consumer decide that
    he or she needs a product?
  • What are the best sources of information to learn more about alternative choices?
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14
Q

What are some issues that arise in the pre-purchase stage from the marketer’s perspective?

A
  • How are consumer attitudes toward
    products formed and changed?
  • What cues do consumers use to infer which products are superior to others?
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15
Q

What are some issues that arise in the purchase stage from the consumer’s perspective?

A
  • Is acquiring a product a stressful or
    pleasant experience?
  • What does the purchase say about the consumer?
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16
Q

What are some issues that arise in the purchase stage from the marketer’s perspective?

A
  • How do situational factors, such as time pressure or store displays, affect the consumer’s purchase decision?
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17
Q

What are some issues that arise in the post-purchase stage from the consumer’s perspective?

A
  • Does the product provide pleasure or perform its intended function?
  • How is the product eventually disposed of, and what are the environmental consequences of this act?
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18
Q

What are some issues that arise in the post-purchase stage from the marketer’s perspective?

A
  • What determines whether a consumer will be satisfied with a product and whether he or she will buy it again?
  • Does this person tell others about his or her experiences with the product and affect their purchase decisions?
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19
Q

What are some examples of what consumer’s responses to a product can range from?

A

Can range from actual purchase to merely engaging in word-of-mouth communications about the product

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20
Q

What are consumer’s responses to a product an ultimate test of?

A

Of whether or not a marketing strategy is successful.

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21
Q

What are the 5 personal factors that influence a buyer’s decisions?

A
  1. Occupation
  2. Age and life stage
  3. Economic situation
  4. Lifestyle
  5. Personality and self-concept
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22
Q

How does occupation influence a buyer’s decision? Give an example

A

Occupation affects goods and services bought.
Ex: Blue-collar workers tend to buy more rugged work clothes, whereas executives buy more business suits

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23
Q

What do marketers try to identify in occupational groups?

A

Identify the occupational groups that have an above-average interest in their products and services. Companies can even specialize in making products needed by a given occupational group

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24
Q

Give an example of a company specializing in making products needed by a specific occupational group.

A

Red Kap makes rugged, durable work clothes and uniform apparel for the automotive and construction industries
“Workwear. Built Better.”

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25
Q

How does age and lifestyle influence a buyer’s decision? Give an example

A

People change the goods and services they buy over their lifetime. Also shaped by the stage of the family life cycle—the stages through which families might pass as they mature over time

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26
Q

What kinds of categories (of products) are often age related?

A
  • Tastes in food
  • Clothes
  • Furniture
  • Recreation
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27
Q

What do life-stage changes usually result from?

A

Demographics and life-changing events

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28
Q

What are examples of life-changing events that can trigger life-stage changes?

A
  • Marriage
  • Having children
  • Purchasing a home
  • Divorce
  • Children going to university
  • Changes in personal income
  • Moving out of the house
  • Retirement
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29
Q

How do marketers often define their target markets?

A

In terms of life-cycle stage and develop appropriate products and marketing plans for each stage

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30
Q

What is one of the leading life-stage segmentation systems?

A

Environics Analytics PRIZM Segmentation system. PRIZM uses over 30,000 variables related to demographics, lifestyles, consumer behaviours, and settlement patterns in Canada to classify Canadian neighbourhoods into 68 unique lifestyle types

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31
Q

What is an example of a life-stage group?

A

Grads&Pads: young urban renters,
usually living near universities. Mix of well-educated singles and couples, students and recent grads, white-collar professionals, and service workers. They tend to be new to the workforce and enjoy a healthy, active lifestyle.

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32
Q

How does life-stage segmentation provide as a powerful marketing tool?

A

For marketers in all industries to better find, understand, and engage consumers. With data about the makeup of consumer life stages, marketers can create targeted, actionable, personalized campaigns

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33
Q

How can marketers create personalized campaigns based on life-stage segmentation?

A

Based on how people consume and interact with brands and the world around them

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34
Q

How does economic situation influence a buyer’s decision?

A

A person’s economic situation will affect his or her store and product choices. Marketers watch trends in spending, personal income, savings, and interest rates.

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35
Q

How have most companies taken more steps to create more customer value in today’s value-conscious times?

A

By redesigning, repositioning, and repricing their products and services.

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36
Q

What is an example of a company redesigning, repositioning, and repricing to create more customer value?

A

Target has put more emphasis on the “Pay Less” side of its “Expect More. Pay Less.” positioning promise

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37
Q

What is lifestyle?

A

A person’s pattern of living as expressed in his or her activities, interests, and opinions

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38
Q

True or false: People coming from the same subculture, social class, and occupation may have quite different lifestyles

A

True: Lifestyle is a person’s pattern of living as expressed in his or her psychographics.

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39
Q

What is lifestyle a measure of?

A

Major AIO dimensions

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40
Q

What are the AIO dimensions?

A
  1. activities (work, hobbies, shopping, sports, social events)
  2. interests (food, fashion, family, recreation)
  3. opinions (about themselves, social issues, business, products)
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41
Q

What can capture something more than a person’s social class or personality?

A

Lifestyle. It profiles a person’s whole pattern of acting and interacting in the world.

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42
Q

When used carefully, what can the lifestyle concept help marketers understand?

A

Changing consumer values and how they affect buyer behaviour

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43
Q

Consumers don’t just buy products, they buy_____

A

The values and lifestyles those products represent

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44
Q

What kinds of lifestyle segments do marketers look for and what can those segments be defined by?

A

Those with needs that can be served through special products or marketing approaches. Such segments might be defined by anything from family characteristics or outdoor interests to the foods people eat

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45
Q

What is personality?

A

The unique psychological characteristics that distinguish a person or group

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46
Q

What types of traits is personality usually describes in terms of?

A

Self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness

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47
Q

How can personality be useful in consumer behaviour?

A

In analyzing consumer behaviour for certain product or brand choice

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48
Q

What is the idea surrounding brands also having personalities?

A

Consumers are likely to choose brands with personalities that match their own

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49
Q

What is brand personality?

A

The specific mix of human traits that may be attributed to a particular brand

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50
Q

What are the 5 brand personality traits?

A
  1. Sincerity (down-to-earth, honest, wholesome, and cheerful)
  2. Excitement (daring, spirited, imaginative, and up-to-date)
  3. Competence (reliable, intelligent, and successful)
  4. Sophistication (glamorous, upper class, charming)
  5. Ruggedness (outdoorsy and tough)
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51
Q

What has one consumer behaviour expert said about how personality determines the types of things we consume?

A

“Your personality determines what you consume, what TV shows you watch, what products you buy, and [most] other decisions you make”

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52
Q

Give examples of brands and their associated personality trait.

A

Ford F150 = “ruggedness,”
Apple = “excitement,”
Washington Post = “competence,” Method = “sincerity,”
Gucci = “class and sophistication.

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53
Q

What do many brands build their positioning and brand stories around?

A

Personality traits

54
Q

What is self-concept?

A

A.k.a self-image
The idea is that people’s possessions contribute to and reflect their identities—that is, “we are what we consume.”

55
Q

What must marketers first understand to understand consumer behaviour?

A

The relationship between consumer self-concept and possessions. Hence, brands will attract people who are high on the same personality traits.

56
Q

What is an example of brands using self-concepts?

A

More than targeting specific demographic segments, MINI appeals to personality segments—to people who are “adventurous, individualistic,
open-minded, creative, tech-savvy, and young at heart,” just like the car.

57
Q

What is the process in which consumers make buying decisions called?

A

The buyer decision process

58
Q

What are the 5 stages in the buyer decision process?

A
  1. Need recognition
  2. Information search
  3. Evaluation and alternatives
  4. Purchase decision
  5. Post-purchase behaviour
59
Q

When does the buying process start and end?

A

Starts long before the actual purchase and continues long after

60
Q

Why do marketers need to focus on
the entire buying process rather than on the purchase decision only?

A

Starts long before the actual purchase and continues long after.
It might result in a decision not to buy.

61
Q

Do consumers pass through all five stages with every purchase in a considered way?

A

No, buyers may pass quickly or slowly through the buying decision process

62
Q

How do the stages of the buying decision process look like in routine purchases?

A

In more routine purchases, consumers often skip or reverse
some of the stages

63
Q

What does the buying decision process usually depend on?

A

The nature of the buyer, the product, and the buying situation.

64
Q

Give an example of how the buying decision process can be altered?

A

Ex: a person buying a regular brand of toothpaste recognizes the need and goes right to the purchase decision, skipping information search and evaluation

65
Q

Overall what does the buying decision process show?

A

Shows all the considerations that arise when a consumer faces a new and complex purchase situation.

66
Q

What is need recognition in the buying decision process?

A

Process starts with need recognition—the buyer recognizes a problem or
need

67
Q

What can needs in the need recognition step be triggered by?

A
  1. Internal stimuli
  2. External stimuli
68
Q

What is internal stimuli?

A

When one of the person’s normal needs—for example, hunger or thirst—rises to a level high enough to become a drive

69
Q

What is external stimuli?

A

Ex: an advertisement or a chat with a friend might get you thinking about buying a new car.

70
Q

What should marketers do in the need recognition stage of the buying decision process?

A

Should research consumers to find out what kinds of needs or problems arise, what brought them about, and how they led the consumer to this
particular product.

71
Q

Can the information search stage of the buying decision process be skipped?

A

Interested consumer may or may not search for more information. If the consumer’s drive is strong and a satisfying product is near at hand, he or she is likely to buy it then

72
Q

When does the information search stage of the buying decision process start?

A

When consumer’s drive isn’t necessarily strong enough to purchase on the spot, they may store the need in memory or undertake an information search related to the need

73
Q

What is an example of storing needs in memory during the information search stage?

A

Once you’ve decided you need a new car, at the least, you will probably pay
more attention to car ads, cars owned by friends, and car conversations. Or you may actively search online, talk with friends, and gather information in other ways

74
Q

What are the 4 sources consumers can obtain information from?

A
  1. Personal sources (family, friends, neighbours, acquaintances)
  2. Commercial sources (advertising, salespeople, dealer and manufacturer web and mobile sites, packaging, displays)
  3. Public sources (mass media, consumer rat-ing organizations, social media, online searches, and peer reviews)
  4. Experiential sources (examining and using the product)
75
Q

How does the influence of information sources vary?

A

Relative influence of information sources varies with the product and the buyer

76
Q

Traditionally where have consumers received the most information about a product from?

A

From commercial sources—those controlled by the marketer

77
Q

What tends to be the most effective information scource?

A

Tend to be personal

78
Q

What is the difference between commercial sources and personal sources?

A

Commercial sources normally INFORM the buyer, but personal sources LEGITIMIZE or EVALUATE products for the buyer.

79
Q

Can a neighbour telling you about a product be more effective than an advertising campaign?

A

Few advertising campaigns can be as effective as a next-door neighbour leaning over the fence and raving about a wonderful experience with a product you are considering

80
Q

In today’s time how do consumers share personal product information?

A

Share product opinions, images, and experiences freely across social
media

81
Q

Where can buyers find an abundance of user-generated reviews online?

A

Can find user-generated reviews along-side the products they are considering at sites ranging from Amazon.ca or BestBuy.ca to Yelp, TripAdvisor, and Epicurious

82
Q

What is Yelp’s goal?

A

“To connect people with great local
businesses” by maintaining a huge,
searchable collection of candid reviews from people who’ve used those businesses. “Reviews for anything you could need,” says Yelp. “We know just the place.”

83
Q

What happens to consumers as more information is obtained?

A

The consumer’s awareness and knowledge of the available brands and features increase.

84
Q

In the example of searching for a new car, how can gaining more information affect the consumer’s awareness and knowledge of available brands and features?

A

May learn about several available brands. The information might also help you to drop certain brands from consideration.

85
Q

What should marketers do in the information-gathering stage?

A

Must design its marketing mix to make prospects aware of and knowledgeable about its brand. It
should carefully identify consumers’ sources of information and the importance of each source

86
Q

What is the next step after consumers use information to arrive at a set of final brand choices?

A

Next, marketers need to know about alternative evaluation

87
Q

What is alternative evaluation?

A

How consumers process information to choose among alternative brands

88
Q

Do consumers use a simple evaluation process in all buying situations?

A

Unfortunately, consumers do not use a simple and single evaluation process in all buying situations. Instead, several evaluation processes are at work.

89
Q

What does the way consumers go about evaluating purchase alternatives depend on?

A

The individual consumer and the specific buying situation.

90
Q

What are some examples of different individual consumers and their specific buying situations?

A

In some cases, consumers use careful calculations and logical thinking. At other times, the same consumers do little or no evaluating. Instead, they buy on impulse and rely on intuition. Sometimes, consumers make buying decisions on their own; sometimes, they turn to friends, online reviews, or salespeople for buying advice

91
Q

In the car example, how may the car brands be organized to proceed with the evaluation of alternatives stage?

A

Narrowed your car choices to three brands. And suppose that you are primarily interested in four attributes—price, style, operating economy, and performance. By this time, you’ve probably formed beliefs about how each brand rates on each attribute.

92
Q

In the car example, what attributes influence the consumer to choose a brand over others in the evaluation of alternatives stage?

A

It’s not as clear as choosing one car that rates best on all attributes. Might base your buying decision mostly on one attribute, and your choice would be easy to predict. If you wanted style above everything else, you would buy the car that you think has the most style.

93
Q

Do most buyers consider one or several attributes in the evaluation of alternatives stage?

A

Most buyers consider several attributes, each with different importance.

94
Q

How can marketers predict and affect consumers’ choices more reliably?

A

By knowing the importance that consumers assign to each attribute

95
Q

What should marketers do in the evaluation of alternatives stage?

A

Study buyers to find out how they evaluate brand alternatives. If marketers know what evaluative processes go on, they can take steps to influence the buyer’s decision.

96
Q

What happens at the end of the evaluation stage right before the purchase decision stage?

A

The consumer ranks brands and forms purchase intention

97
Q

Generally, the consumer’s purchase decision will be to buy the most preferred brand, but what two factors can come between the purchase INTENTION and purchase DECISION?

A
  1. Attitudes of others
  2. Unexpected situational factors
98
Q

How can the attitudes of others come in between purchase intention and decision in the car example?

A

If someone important to you thinks that you should buy the lowest-priced car, then the chances of you buying a more expensive car are reduced.

99
Q

How can unexpected situation factors come in between purchase intention and decision?

A

The consumer may form a purchase intention based on factors such as expected income, expected price, and
expected product benefits. However, unexpected events may change the purchase intention

100
Q

What is an example of unexpected situation factors coming in between purchase and decision in the car situation?

A

The economy might take a turn for the worse, a close competitor might drop its price, or a friend might report being disappointed in your preferred car

101
Q

Do preferences and purchase intentions always result in an actual purchase choice?

A

No

102
Q

Does the marketer’s job end when the product is bought?

A

No

103
Q

After the product is bought how can consumers react to it?

A

The consumer will either be satisfied or dissatisfied and will engage in postpurchase behaviour of interest to the marketer

104
Q

What determines whether the buyer
is satisfied or dissatisfied with a purchase?

A

The answer lies in the relationship between the consumer’s expectations and the product’s perceived performance.

105
Q

What happens if the product falls short of expectations?

A

Consumer is disappointed

106
Q

What happens if the product meets expectations?

A

Consumer is satisfied

107
Q

What happens if the product exceeds expectations?

A

Consumer is delighted

108
Q

The larger the negative gap between
expectations and performance, the greater the ________

A

Consumer’s dissatisfaction

109
Q

Why should sellers only promise what their brands can deliver?

A

So that buyers are satisfied

110
Q

What is cognitive dissonance?

A

Buyer discomfort caused by post-purchase conflict.
Results after almost all major purchases

111
Q

Although after the purchase, consumers are satisfied with the benefits of the chosen brand and
are glad to avoid the drawbacks of the brands not being bought, why do they feel uneasy?

A

Every purchase involves compromise. So, consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Thus, consumers feel at least some postpurchase dissonance for every purchase

112
Q

Why is it so important to satisfy the customer?

A

Customer satisfaction is a key to
building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value.

113
Q

How do satisfied customers act in the post-purchase behaviour stage?

A

Satisfied customers buy a product again, talk favourably to others about the product, pay less attention to competing brands and advertising, and buy other products from the company.

114
Q

How do many marketers go beyond merely meeting the expectations of customers?

A

They aim to delight customers

115
Q

How do dissatisfied customers respond in the post-purchase behaviour stage?

A

Bad word of mouth often travels
farther and faster than good word of mouth. It can quickly damage consumer attitudes about a company and its products

116
Q

Why can’t companies simply wait for dissatisfied customers to volunteer their complaints?

A

Most unhappy customers never tell
the company about their problems
Therefore, a company should measure customer satisfaction regularly

117
Q

How can a company measure customer satisfaction regularly?

A

It should set up systems that encourage customers to complain.
In this way, the company can learn how well it is doing and how it can improve.

118
Q

What can marketers find by studying the overall buyer decision process?

A

May be able to find ways to help consumers move through it

119
Q

What is an example of what marketers should do in the post-purchase behaviour stage?

A

If consumers are not buying a new product because they do not perceive a need for it, marketing might launch
advertising messages that trigger the need and show how the product solves customers’ problems.

120
Q

What should marketers do if customers know about the product but are not buying because they hold unfavourable attitudes toward
it?

A

Marketers must find ways to change either the product or consumer perceptions

121
Q

What is a new product?

A

A good, service, or idea that is perceived by some potential customers as new.

122
Q

What is the adoption process?

A

The mental process through which
an individual passes from first
hearing about an innovation to
final adoption

123
Q

Can a new product have been around for a while?

A

Yes! Our interest is in how consumers learn about products for the first time and make decisions on whether to adopt them

124
Q

What is adoption?

A

The decision by an individual to become a regular user of the product.

125
Q

What are the 5 stages in the adoption process?

A
  1. Awareness
  2. Interest
  3. Evaluation
  4. Trial
  5. Adoption
126
Q

What is the awareness stage in the adoption process?

A

The consumer becomes aware of the new product but lacks information about it

127
Q

What is the interest stage in the adoption process?

A

The consumer seeks information about the new product.

128
Q

What is the evaluation stage in the adoption process?

A

The consumer considers whether trying the new product makes sense.

129
Q

What is the trial stage in the adoption process?

A

The consumer tries the new product on a small scale to improve his or her
estimate of its value.

130
Q

What is the adoption stage in the adoption process?

A

The consumer decides to make full and regular use of the new product.

131
Q

What does the adoption process model suggest?

A

That marketers should think about how to help consumers move through these stages.

132
Q

What is an example of marketers helping consumers move through the stages of the adoption process?

A

If a company finds that many consumers are considering its products but are still tentative about buying one, it might offer sales
prices or special promotions that help get consumers over the decision hump.

MOS 1021 Unit #8 (1 decks)

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