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BU325 Final > Chapter 4 - Consumer Behaviour > Flashcards

Chapter 4 - Consumer Behaviour Flashcards

1
Q

Consumer Decision Process

A
  1. Need recognition
  2. Information search
  3. Alternative evaluations
  4. Purchase Decision
  5. Post Purchase decision
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2
Q

Need recognition -

A

the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need, and they want to go from their needy state to a different, desired state.

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3
Q

Functional needs

A

pertain to the performance of a product or service

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4
Q

Psychological needs -

A
  • pertain to the personal gratification consumers associate with a product and/ or service
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5
Q

Information Search

A
  • Search for information about the various options that exist to satisfy that need
  • The length and intensity of the search are based on several factors, including the degree of perceived risk associated with purchasing the products or service and the importance of the product to the consumer
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6
Q

Internal search for information

A

buyers examine their own memory and knowledge about the product or service, gathered through past experiences

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7
Q

External search for information -

A

buyers seek information outside their personal knowledge base to help make the buying decision

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8
Q

Factors Affecting Consumers’ Search Processes -

A

The perceived benefits vs perceived costs of search - is it work the time and the effort to search for information about a product or service
The locus of control -

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9
Q

Internal locus of control

A
  • people believe they have some control over the outcomes of their actions, engage in more search activities
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10
Q

External locus of control

A
  • consumers believe that fate of other external factors control all outcomes - in this case it does not matter how much information they gather
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11
Q

Types of risk -

A
  • Performance
  • Financial
  • Social
  • Physiological
  • Psychological
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12
Q

Performance risk

A

involves the perceived danger inherent in a poorly performing product or service

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13
Q

Financial risk

A

risk associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service

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14
Q

Social risk

A

involves the fears that consumers suffer when they worry that others might not regard their purchases positivity

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15
Q

Physiological risk

A

can also be called a safety risk. Refers to the fear of actual harm should not perform properly

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16
Q

Psychological risk

A

associated with the way people will feel if the product or service does not convey the right image

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17
Q

Alternative Evaluation

A

Must sift through choices available and evaluate the alternatives

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18
Q

Retrieval sets -

A

consists of brands or stores that can be readily brought forth from memory

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19
Q

Evoked sets -

A

include only brands or stores considered when making a purchase decision

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20
Q

Evaluate criteria -

A

consists of a set of important attributes about a particular product that are used to compare alternative products

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21
Q

Determinant attributes

A

product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

  • Many important and desirable attributes are equal among the various choices, consumers look for something to differentiate one brand from another
22
Q

Decision Rules

A

set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives

23
Q

Compensatory decision rule

A
  • assumes that the consumer, when evaluating alternatives trades off one characteristic against another
24
Q

Noncompensatory decision rule

A

choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes

25
Q

Decision heuristics -

A

mental shortcuts that help consumers narrow down their choices

Price, brand, product presentation

26
Q

Purchase Decision

A

Retailers use various tactics to increase the chances that consumers will convey their positive evaluations into purchases - create urgency, track behaviour of consumers

27
Q

Purchase Decision Situational Factors

A

having merchandise in stock, offering multiple payment options, having many checkout lanes open and placing the checkout conveniently in the store, delivery, price matching, warranty, etc.

28
Q

Post Purchase

A

marketers are particularly interested because it entails actual, rather than potential consumers

29
Q

Customer Satisfaction

A

build realistic expectations, demonstrate correct product use, stand behind the product or service by providing money-back guarantees and warranties, encourage customer feedback

30
Q

Postpurchase dissonance -

A

buyers remorse or cognitive dissonance is an internal conflict that arises from an inconsistency between two beliefs or between beliefs and behaviour

31
Q

Customer loyalty

A
  • customer loyalty develops over time with multiple repeat purchases of the product or brand from the same marketer
  • Attempt to build and nurture a loyal relationship with their customers
32
Q

Factors Influencing Consumer Buying Decisions

A
  • Psychological
  • Social
  • Situational
33
Q

Psychological Factors

A

motives, attitudes, perceptions, learning, lifestyle

34
Q

Motives

A

is a need or a want that is strong enough to cause the person to seek satisfaction

35
Q

Maslow Hierarchy of Needs

A
  • Physiological needs - basic biological necessities of life: food, drink, rest, and shelter
  • Safety needs - protection and physical well-being
  • Love (social) needs - relate to our interactions with others
  • Esteem needs - allow people to satisfy their desires
  • Self-actualization - occurs when you feel completely satisfied with your life and how you live
36
Q

Attitude

A
  • a person’s enduring evaluation of their feelings about personal behavioural tendencies toward an object or idea - cognitive component (reflects what we believe to be true) affective (what we feel about the issue at hand), behavioural (actions we take based on what we know/how we feel)
37
Q

Perception

A

is the processes by which we select, organize, and interpret information to form a meaningful picture of the world

38
Q

Learning

A

refers to a change in a person’s thought process or behavior that arises from experience and takes place throughout the consumers decision process

39
Q

Lifestyle

A
  • refer to the way consumers spend their time and money to live
40
Q

Social Factors -

A
  • Family - firms must consider how families make purchase decisions and how various family members might influence these decisions
41
Q

Reference groups -

A

is one or more persons an individual uses as a basis for comparison regarding beliefs, feelings, and behavious

42
Q

Situational Factor

A

Factors affecting the consumer decision process; those that are specific to the purchase and shopping situation and temporal state that may override, or at least influence, psychological and social issues

43
Q

Sensory Situation -

A

Store atmosphere, salespeople, crowding, in-store demonstrations, promotions, packaging

44
Q

Involvement and Consumer Buying Decisions
- high involvement

A

greater attention detail, deeper processing

  • Develops strong attitudes and purchase intentions
45
Q

Low involvement -

A

less attention, peripheral processing

  • Generates weak attitudes and increased use of cues
46
Q

Extended Problem Solving

A

A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a great deal of risk

47
Q

Limited Problem Solving

A

Occurs during a purchase decision that calls for, at most, a moderate amount of time and effort - customers engage in this when they have had some prior experience with the product or service and the perceived risk is moderate

48
Q

Impulse buying

A

a buying decision made by customers on the spot when they see merchandise

49
Q

Habitual decision making

A

purchase decision process in which consumers engage with little conscious effort

50
Q
A

BU325 Final (18 decks)

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