Chapter 2: Consumer Behaviour Flashcards
Companies use CB to understand
Target consumers
What is consumer Behaviour interested in?
How consumers make purchase decisions What they buy Why they buy How they choose to buy When they buy Where to do go and buy
Companies use CB to design
P&S better suit customers
What is CPDP
Consumer purchase decision process
What is the CPDP
A process by which consumers make a purchase decision
Making choices
The CPDP is influenced by
Marketing mix
Sociocultural influence
Psychological influences
Situational influences
How many stages in CPDP
5
What is problem recognition?
Consumer perceives he has a need
Perceived a different between actual and ideal situation
How do marketers activists CPDP/problem recognition?
Show shortcoming of competing or currently owned products
What is information search?
The consumer seeks for value
What product can satisfy newly discovered need
What are the two kinds of searches?
Internal
External
Internal search involves
Scanning memory for previous experiences
(Using or owning product before)
Or read about information concerning product
Internal search is sufficient when
Products are purchased frequently
An external is used when
Risk of bad decision is high
Cost of gathering information is low
What are the sources of external information?
Personal sources
Public sources
Marketer dominated sources
What are personal sources?
Asking people that consumer trusts
E.g friends and relatives
What are public sources?
Searching or consulting people or organizations
Product rating organizations
Government agencies
Consumer oriented TV programs
Feature articles in newspaper and magazines
What are marketer dominated sources?
Getting information from sellers through
advertisements
Company websites
Salespeople
POP displays
What is POP?
Point of purchase
How does information help consumers?
Clarify their problem
After searching for information, consumers set
Criteria
What is criteria
Points to consider
After information search, consumer has to choose from
Alternatives
Alternatives are
Brand names that meet the criteria
What is alternative evaluation?
Consumer assesses the value of various alternatives
Alternative evaluation can be done
Consciously
Mentally
In alternative evaluation, the consumer first
Weighs the criteria according to importance
Second step in alternative evaluation is to
Consider brands that might meet the new criteria
What is a consideration set
Group of brands that a consumer consider acceptable from among all the brands in the product class that he is aware of
Step three of alternative evaluation involves the consumer
Developing consumer value perceptions (overall rating)
In consumer value perceptions, the consumer gives each brand
A performance rating against the set criteria.
Then multiply against the importance
In purchase decision,
Consumers have made up their made up their mind about the brand and model they are going to purchase
In purchase decision, consumer consider
the value of making the purchase
The two choices that affect buying value are
From whom to buy
When to buy
Whom to buy affects buying value because
Different sellers of the same product provide differing levels of value
Different sellers provide different value in
Customer service
After sales assistance
Convenience
The decision of whom to buy from is affected by
Consumer past purchase experience
Recommendations from personal sources
Seller’s terms of sales
Why do people consider when to buy?
Actual purchase may be delayed
Actual purchase is delayed due to
Stock availability Offers coupon/rebate Stores atmosphere Shopping experience is satisfactory Salesperson Financial terms Faces time pressure
In post purchase behaviour, consumers
Evaluate the value of product in consumption or use
After buying, the consumer begins to
Compare it with his expectations
The buyer starts to decide if he is
Satisfied or dissatisfied
A consumer feels that he is unsure if he has made a right decision after purchase. It is known as
Cognitive dissonance. It is a feeling of anxiety
Satisfaction or dissatisfaction affects
Value perception
Repeat purchase behaviour
Value perception will cause consumer to
Tell other people about it
How do companies help customers overcome cognitive dissonance?
Providing reassurance
Reaffirming the purchase decision
Companies provide assurance by
Offering warranties
Money back guarantee
After sales service support
Technical trouble shooting
How do companies reaffirm the purchase decision?
Run advertisement (show high quality, reliability, performance, unique features)
Send personalized communication to thank customers for purchase. Offer them guidance
Letters emails
How consumer make decision are influenced by
Frequency of purchase
Importance in lives (involvement)
The level of involvement depends on
Relative cost to consumer
Personal consequences
Affects self image
High involvement purchase are
Expensive
Can have serious consequences
Could reflect on ones’ image
Low involvement purchase are
Low priced
Used in private (will not affect image)
Purchased frequently does not have personal consequence
What are the three problem solving variations?
Involvement for each one?
Extended
Limited
Routine
What does consumer do in extended problem solving?
Spends large time and effort
- external search
- evaluation of attributes of multiple alt brands
Limited involvement is used when buyer
Has little time and effort to spend
What does consumer do in limited problem solving?
Spends time and effort
- external search
- limits the number of brands to consider
How does consumer behave in routine?
Repeats purchase of brands
Proven reasonably satisfying
Brands that have different rankings are called
Leaders
Challengers
Low involvement brands that are market leaders should
Maintain product quality
Avoid stock outs
Develop ads to reinforce and assure
Low involvement products that are market challengers should
Encourage trial (free sample, coupons, rebates) to break buying habit
Develop ads to get into consideration set
Link brand attributes with high involvement issues (use extended problem solving)
The five stages are
Problem Recognition Information search Alternative evaluation Purchase decision Post purchase Behaviour
High involvement products that are market leaders should
Advertising
Personal selling: provide customers with information (unique selling points)
For high involvement products whose brands are brand challengers, they should use
Comparative ads
Novel evaluative criteria for judging competing
Change consumer mind about Impt. Criteria
Consumer involvement is also influenced by
Situational influences
The situational influences are
Purchase Task Social surroundings Physical surroundings Temporal effects Antecedent states
Purchase task is the
Reason for engaging in the decision
Social surrounding is
Who else the consumer is making the decision with
Close friends: straightforward
Physical surroundings is the
Store decor
Music
Crowding
Physical surroundings affects how
At ease the customer feel
Temporal affect is
The time of the day
Amount of time available
Antecedent states is the
Consumer mood
Cash on hand
What are the major psychological influences on consumer behaviour?
Motivation Personality Perception Learning Values, Behaviour attitudes Consumer lifestyle
What is motivation ?
Energizing force that simulates behaviour to satisfy need
Marketers are interested in arousing
Need
What is the hierarchy of needs called
Maslow
What are the needs, starting from the lowest
Physiological Safety Social Personal Self actualisation
Physiological needs are
Basic felt needs to survive
Safety needs involve
Self preservation
Physical well being
Social needs are concerned with
Friendship, socializing
Love
Personal needs are
Self esteem Status Achievement Prestige Self respect
Self actualisation needs involve
Personal fulfillment
What is personality?
Persons consistent behavior or responses to recurring situations
Personality is revealed in a person’s
Self concept
What is self concept
The way people see themselves
And the way they believe others see them
Self concept is made up of
Actual self
Ideal self
Products support an individual’s
Self concept
Perception is the process
Select
Organizes
Interpret
Create meaningful picture of the world
What kinds of selective perceptions are there?
Selective exposure
Selective comprehension
Selective retention
When do people have selective exposure?
Pay attention to messages that are consistent to their attitude and beliefs
Ignore inconsistent one
Selective comprehension happens when
Consumers interpret messages so that it is consistent with attitude and beliefs
Selective retention occurs when
Consumers choose to remember information that are consistent with beliefs and attitudes
Refuse to retain does that are inconsistent minutes just after exposure
What is the anxiety felt when they can’t anticipate the outcome of making a purchase?
Perceived risks
Learning is
Process by which individual choose to behave
Learning is due to
Repeated experiences
Reasoning
What are the three kinds of learning
Behavioral
Cognitive
Brand loyalty
Behavioural learning is the process
Developing automatic responses
Through repeated exposure
Need-cue/stimulus-action-reward
Cognitive learning is
The process of developing responses to a situation
Making connections between 2 or more ideas
Observing outcomes of others behaviors
In cognitive learning, it is
Mental problem solving
No direct experience
Brand loyalty is
Process of habit formation
Comes with learning and routine problem solving
An attitude is a
Learned predisposition to respond to an object favorably or unfavorably
What are beliefs?
Subjective perception
On how product performs on various attributes
How are beliefs and attitudes related?
Beliefs play a part in attitude formation
How do marketers change attitudes
Change consumer beliefs
Change perceived importance of attributes
Add new attributes
What is consumer lifestyle?
Mode of living
How people spend their time and resources
What is consumer lifestyle known as?
Psychographics
What are the different lifestyle groups?
Ideals motivated
Achievement motivated
Self expression motivated
Ideals motivated groups are
Guided by knowledge and principles
Tend to be conservative
Conventional and practical
Durability functionality
Achievement motivated groups are
Trendy Goal directed Stylish products (show off) Image is important Established brands important
Self expression motivated groups
Young Enthusiastic Impulsive Desire for social or physical activity Variety and risk Energy Fashion items Socializing Looking good Latest things
What are the social cultural influences on consumer behavior?
Personal influence Reference groups Family influence Social class Culture and subculture
Personal influence is the
Views, opinions and behaviour of other people that influence a consumers purchase decision
Personal influence involves
Opinion leadership
Word of mouth
Opinion leadership are held by individuals who are
Considered to be knowledgeable about particular products and services
Opinion leaders have
Direct or indirect social influence
On others purchase decision
Word of mouth is
A form of communication when people influence each other during conversations
How is word of mouth effective?
It is powerful
Authentic: trustworthy friends
Reference groups are people to whom
Individuals look to for self appraisal
Source of personal standards
Reference groups can influence by
Providing information
Their attitudes
Aspiration levels: set consumer standards
What are the reference groups ?
Membership groups
Aspiration groups
Dissociative group
How does family influence consumer?
Consumer socialization
Family life cycle
Family decision making
What is consumer socialization?
What consumers learn as a child by watching and interacting with adults in purchase situations
Through their own experience of purchasing
How are purchase decisions affected in family cycle?
Consumers act different in different phases of life
How does family decision making affect purchase decision making
Style of decision making
Spouse dominant
Joint decision making
What are the roles in family decision making?
Information gatherer Influencer Decision-maker Purchaser User
What is a social class?
Homogenous divisions in society
Characteristics of a social class
Similar values, interest, behaviour, attitudes, lifestyle
Relatively permanent
What determines social clSs
Source of income (not level)
Education
What are the three major social class categories?
Upper
Middle
Lower
People in lower social class tend to
Have short term orientation
More emotional than rational
Think in concrete not abstract
See fewer personal opportunities
People in higher social class
Tend to focus on achievements and the future
think in abstract or symbolic terms
What is culture?
Set of values, ideas and attitudes that are learned and shared among members
What is subculture?
Subgroups within larger culture
How does culture affect?
Different culture have different behaviours and preferences
