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Marketing > Chapter 2: Consumer Behaviour > Flashcards

Chapter 2: Consumer Behaviour Flashcards

0
Q

Companies use CB to understand

A

Target consumers

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1
Q

What is consumer Behaviour interested in?

A 
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
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2
Q

Companies use CB to design

A

P&S better suit customers

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3
Q

What is CPDP

A

Consumer purchase decision process

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4
Q

What is the CPDP

A

A process by which consumers make a purchase decision

Making choices

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5
Q

The CPDP is influenced by

A

Marketing mix
Sociocultural influence
Psychological influences
Situational influences

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7
Q

How many stages in CPDP

A

5

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8
Q

What is problem recognition?

A

Consumer perceives he has a need

Perceived a different between actual and ideal situation

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9
Q

How do marketers activists CPDP/problem recognition?

A

Show shortcoming of competing or currently owned products

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10
Q

What is information search?

A

The consumer seeks for value

What product can satisfy newly discovered need

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11
Q

What are the two kinds of searches?

A

Internal

External

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12
Q

Internal search involves

A

Scanning memory for previous experiences
(Using or owning product before)
Or read about information concerning product

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13
Q

Internal search is sufficient when

A

Products are purchased frequently

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14
Q

An external is used when

A

Risk of bad decision is high

Cost of gathering information is low

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15
Q

What are the sources of external information?

A

Personal sources
Public sources
Marketer dominated sources

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16
Q

What are personal sources?

A

Asking people that consumer trusts

E.g friends and relatives

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17
Q

What are public sources?

A

Searching or consulting people or organizations

Product rating organizations
Government agencies
Consumer oriented TV programs
Feature articles in newspaper and magazines

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18
Q

What are marketer dominated sources?

A

Getting information from sellers through

advertisements
Company websites
Salespeople
POP displays

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19
Q

What is POP?

A

Point of purchase

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20
Q

How does information help consumers?

A

Clarify their problem

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21
Q

After searching for information, consumers set

A

Criteria

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22
Q

What is criteria

A

Points to consider

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23
Q

After information search, consumer has to choose from

A

Alternatives

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24
Q

Alternatives are

A

Brand names that meet the criteria

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25
Q

What is alternative evaluation?

A

Consumer assesses the value of various alternatives

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26
Q

Alternative evaluation can be done

A

Consciously

Mentally

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27
Q

In alternative evaluation, the consumer first

A

Weighs the criteria according to importance

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28
Q

Second step in alternative evaluation is to

A

Consider brands that might meet the new criteria

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29
Q

What is a consideration set

A

Group of brands that a consumer consider acceptable from among all the brands in the product class that he is aware of

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30
Q

Step three of alternative evaluation involves the consumer

A

Developing consumer value perceptions (overall rating)

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31
Q

In consumer value perceptions, the consumer gives each brand

A

A performance rating against the set criteria.

Then multiply against the importance

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32
Q

In purchase decision,

A

Consumers have made up their made up their mind about the brand and model they are going to purchase

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33
Q

In purchase decision, consumer consider

A

the value of making the purchase

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34
Q

The two choices that affect buying value are

A

From whom to buy

When to buy

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35
Q

Whom to buy affects buying value because

A

Different sellers of the same product provide differing levels of value

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36
Q

Different sellers provide different value in

A

Customer service
After sales assistance
Convenience

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37
Q

The decision of whom to buy from is affected by

A

Consumer past purchase experience
Recommendations from personal sources
Seller’s terms of sales

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38
Q

Why do people consider when to buy?

A

Actual purchase may be delayed

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39
Q

Actual purchase is delayed due to

A 
Stock availability
Offers coupon/rebate 
Stores atmosphere 
Shopping experience is satisfactory 
Salesperson 
Financial terms
Faces time pressure
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40
Q

In post purchase behaviour, consumers

A

Evaluate the value of product in consumption or use

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41
Q

After buying, the consumer begins to

A

Compare it with his expectations

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42
Q

The buyer starts to decide if he is

A

Satisfied or dissatisfied

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43
Q

A consumer feels that he is unsure if he has made a right decision after purchase. It is known as

A

Cognitive dissonance. It is a feeling of anxiety

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44
Q

Satisfaction or dissatisfaction affects

A

Value perception

Repeat purchase behaviour

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45
Q

Value perception will cause consumer to

A

Tell other people about it

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46
Q

How do companies help customers overcome cognitive dissonance?

A

Providing reassurance

Reaffirming the purchase decision

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47
Q

Companies provide assurance by

A

Offering warranties
Money back guarantee
After sales service support
Technical trouble shooting

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48
Q

How do companies reaffirm the purchase decision?

A

Run advertisement (show high quality, reliability, performance, unique features)

Send personalized communication to thank customers for purchase. Offer them guidance
Letters emails

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49
Q

How consumer make decision are influenced by

A

Frequency of purchase

Importance in lives (involvement)

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50
Q

The level of involvement depends on

A

Relative cost to consumer
Personal consequences
Affects self image

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51
Q

High involvement purchase are

A

Expensive
Can have serious consequences
Could reflect on ones’ image

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52
Q

Low involvement purchase are

A

Low priced
Used in private (will not affect image)
Purchased frequently does not have personal consequence

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53
Q

What are the three problem solving variations?

Involvement for each one?

A

Extended
Limited
Routine

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54
Q

What does consumer do in extended problem solving?

A

Spends large time and effort

  • external search
  • evaluation of attributes of multiple alt brands
55
Q

Limited involvement is used when buyer

A

Has little time and effort to spend

56
Q

What does consumer do in limited problem solving?

A

Spends time and effort

  • external search
  • limits the number of brands to consider
57
Q

How does consumer behave in routine?

A

Repeats purchase of brands

Proven reasonably satisfying

58
Q

Brands that have different rankings are called

A

Leaders

Challengers

59
Q

Low involvement brands that are market leaders should

A

Maintain product quality
Avoid stock outs
Develop ads to reinforce and assure

60
Q

Low involvement products that are market challengers should

A

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)

61
Q

The five stages are

A 
Problem Recognition
Information search 
Alternative evaluation
Purchase decision
Post purchase Behaviour
62
Q

High involvement products that are market leaders should

A

Advertising

Personal selling: provide customers with information (unique selling points)

63
Q

For high involvement products whose brands are brand challengers, they should use

A

Comparative ads

Novel evaluative criteria for judging competing
Change consumer mind about Impt. Criteria

64
Q

Consumer involvement is also influenced by

A

Situational influences

65
Q

The situational influences are

A 
Purchase Task
Social surroundings 
Physical surroundings 
Temporal effects 
Antecedent states
66
Q

Purchase task is the

A

Reason for engaging in the decision

67
Q

Social surrounding is

A

Who else the consumer is making the decision with

Close friends: straightforward

68
Q

Physical surroundings is the

A

Store decor
Music
Crowding

69
Q

Physical surroundings affects how

A

At ease the customer feel

70
Q

Temporal affect is

A

The time of the day

Amount of time available

71
Q

Antecedent states is the

A

Consumer mood

Cash on hand

72
Q

What are the major psychological influences on consumer behaviour?

A 
Motivation
Personality
Perception
Learning
Values, Behaviour attitudes 
Consumer lifestyle
73
Q

What is motivation ?

A

Energizing force that simulates behaviour to satisfy need

74
Q

Marketers are interested in arousing

A

Need

75
Q

What is the hierarchy of needs called

A

Maslow

76
Q

What are the needs, starting from the lowest

A 
Physiological
Safety
Social
Personal
Self actualisation
77
Q

Physiological needs are

A

Basic felt needs to survive

78
Q

Safety needs involve

A

Self preservation

Physical well being

79
Q

Social needs are concerned with

A

Friendship, socializing

Love

80
Q

Personal needs are

A 
Self esteem 
Status
Achievement
Prestige
Self respect
81
Q

Self actualisation needs involve

A

Personal fulfillment

82
Q

What is personality?

A

Persons consistent behavior or responses to recurring situations

83
Q

Personality is revealed in a person’s

A

Self concept

84
Q

What is self concept

A

The way people see themselves

And the way they believe others see them

85
Q

Self concept is made up of

A

Actual self

Ideal self

86
Q

Products support an individual’s

A

Self concept

87
Q

Perception is the process

A

Select
Organizes
Interpret

Create meaningful picture of the world

88
Q

What kinds of selective perceptions are there?

A

Selective exposure
Selective comprehension
Selective retention

89
Q

When do people have selective exposure?

A

Pay attention to messages that are consistent to their attitude and beliefs

Ignore inconsistent one

90
Q

Selective comprehension happens when

A

Consumers interpret messages so that it is consistent with attitude and beliefs

91
Q

Selective retention occurs when

A

Consumers choose to remember information that are consistent with beliefs and attitudes

Refuse to retain does that are inconsistent minutes just after exposure

92
Q

What is the anxiety felt when they can’t anticipate the outcome of making a purchase?

A

Perceived risks

93
Q

Learning is

A

Process by which individual choose to behave

94
Q

Learning is due to

A

Repeated experiences

Reasoning

95
Q

What are the three kinds of learning

A

Behavioral
Cognitive
Brand loyalty

96
Q

Behavioural learning is the process

A

Developing automatic responses
Through repeated exposure

Need-cue/stimulus-action-reward

97
Q

Cognitive learning is

A

The process of developing responses to a situation
Making connections between 2 or more ideas
Observing outcomes of others behaviors

98
Q

In cognitive learning, it is

A

Mental problem solving

No direct experience

99
Q

Brand loyalty is

A

Process of habit formation

Comes with learning and routine problem solving

100
Q

An attitude is a

A

Learned predisposition to respond to an object favorably or unfavorably

101
Q

What are beliefs?

A

Subjective perception

On how product performs on various attributes

102
Q

How are beliefs and attitudes related?

A

Beliefs play a part in attitude formation

103
Q

How do marketers change attitudes

A

Change consumer beliefs
Change perceived importance of attributes
Add new attributes

104
Q

What is consumer lifestyle?

A

Mode of living

How people spend their time and resources

105
Q

What is consumer lifestyle known as?

A

Psychographics

106
Q

What are the different lifestyle groups?

A

Ideals motivated
Achievement motivated
Self expression motivated

107
Q

Ideals motivated groups are

A

Guided by knowledge and principles
Tend to be conservative
Conventional and practical
Durability functionality

108
Q

Achievement motivated groups are

A 
Trendy
Goal directed
Stylish products (show off) 
Image is important 
Established brands important
109
Q

Self expression motivated groups

A 
Young
Enthusiastic 
Impulsive
Desire for social or physical activity
Variety and risk
Energy 
Fashion items
Socializing 
Looking good
Latest things
110
Q

What are the social cultural influences on consumer behavior?

A 
Personal influence
Reference groups
Family influence
Social class
Culture and subculture
111
Q

Personal influence is the

A

Views, opinions and behaviour of other people that influence a consumers purchase decision

112
Q

Personal influence involves

A

Opinion leadership

Word of mouth

113
Q

Opinion leadership are held by individuals who are

A

Considered to be knowledgeable about particular products and services

114
Q

Opinion leaders have

A

Direct or indirect social influence

On others purchase decision

115
Q

Word of mouth is

A

A form of communication when people influence each other during conversations

116
Q

How is word of mouth effective?

A

It is powerful

Authentic: trustworthy friends

117
Q

Reference groups are people to whom

A

Individuals look to for self appraisal

Source of personal standards

118
Q

Reference groups can influence by

A

Providing information
Their attitudes
Aspiration levels: set consumer standards

119
Q

What are the reference groups ?

A

Membership groups
Aspiration groups
Dissociative group

120
Q

How does family influence consumer?

A

Consumer socialization
Family life cycle
Family decision making

121
Q

What is consumer socialization?

A

What consumers learn as a child by watching and interacting with adults in purchase situations

Through their own experience of purchasing

122
Q

How are purchase decisions affected in family cycle?

A

Consumers act different in different phases of life

123
Q

How does family decision making affect purchase decision making

A

Style of decision making
Spouse dominant
Joint decision making

124
Q

What are the roles in family decision making?

A 
Information gatherer
Influencer
Decision-maker
Purchaser
User
125
Q

What is a social class?

A

Homogenous divisions in society

126
Q

Characteristics of a social class

A

Similar values, interest, behaviour, attitudes, lifestyle

Relatively permanent

127
Q

What determines social clSs

A

Source of income (not level)

Education

128
Q

What are the three major social class categories?

A

Upper
Middle
Lower

129
Q

People in lower social class tend to

A

Have short term orientation
More emotional than rational
Think in concrete not abstract
See fewer personal opportunities

130
Q

People in higher social class

A

Tend to focus on achievements and the future

think in abstract or symbolic terms

131
Q

What is culture?

A

Set of values, ideas and attitudes that are learned and shared among members

132
Q

What is subculture?

A

Subgroups within larger culture

133
Q

How does culture affect?

A

Different culture have different behaviours and preferences

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