chapter 4: consumer behaviour

Question 1

importance of consumer behaviour

Answer 1

consumers drive marketing strategies, so firms must understand their needs

Question 2

the consumer decision process

Answer 2

1. need recognition
2. information search
3. alternative evaluation
4. purchase decision
5. post-purchase

Question 3

step 1 of the consumer decision process: need recognition

Answer 3

consumers recognize they have an unsatisfied need

functional needs: performance of product or service

psychological needs personal gratification consumers associate with a product or service

marketers must balance these needs, and use tactics to remind of needs or create new ones

Question 4

step 2 of the consumer decision process: information search (define the two types of searches)

Answer 4

internal search: buyers examine own memory/knowledge about product from experience

external search: when buyers seek info outside their personal knowledge

Question 5

internal locus of control

Answer 5

when consumers believe they have some control over the outcomes of their actions; engage in more search activities

Question 6

external locus of control

Answer 6

when consumers believe that fate/other external factors control all outcomes

Question 7

performance risk

Answer 7

perceived danger inherent to a poorly performing produce or service

Question 8

financial risk

Answer 8

risk associated with initial cost and costs of using item

Question 9

physiological risk

Answer 9

safety risk: fear of harm should the product not perform properly

Question 10

psychological risk

Answer 10

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

Question 11

step 3 of the consumer decision process: alternative evaluation

Answer 11

-evaluative criteria
-determinant attributes

Question 12

attribute sets: retrieval sets

Answer 12

brands/store that can easily be remembered/retrieved

Question 13

attribute sets: evoked sets

Answer 13

only brands/stores considered when purchasing

Question 14

attribute sets: evaluative criteria

Answer 14

attributes about particular product used to compare alternatives

Question 15

attribute sets: consumer decision rules

Answer 15

set of criteria consumers use to select among alternatives

Question 16

consumer decision rules: compensatory

Answer 16

assumes that the consumer trades off one characteristic for another (good for bad)

ex: paying more for a product for more features

Question 17

consumer decision rules: non-compensatory

Answer 17

choosing product/service on basis of a subset of its characteristic regardless of values of other attributes

ex: car might be better, but rejected due to higher cost

Question 18

consumer decision rules: decision heuristics

Answer 18

mental shortcuts to narrow down options (price, brand, product presentation)

Question 19

step 4 of the consumer decision process: purchase decision

Answer 19

some companies create urgency (“almost sold out”)

Question 20

step 5 of the consumer decision process: postpurchase

Answer 20

entails 3 outcomes

1. customer satisfaction
2. post-purchase dissonance (buyer’s remorse)
3. customer loyalty

Question 21

factors affecting consumer decision process

Answer 21

social factors: family, reference groups, culture
situational factors: purchase situation, temporal state
psychological factors: motives, attitudes, perceptions, learning lifestyles

Question 22

psychological factors: safety needs

Answer 22

protection and physical well-being

Question 23

psychological factors: love (social needs)

Answer 23

interactions with others

Question 24

psychological factors: esteem needs

Answer 24

allow people to satisfy inner desires

Question 25

psychological factors: self-actualization

Answer 25

being content with your own life

Question 26

psychological factors: attitude and the 3 components

Answer 26

one’s enduring evaluation of their feelings about and behavioural tendencies towards an object or idea

1. cognitive component: what we believe to be true
2. effective component: what we feel
3. behaviour component: actions we take based on what we know and feel

Question 27

psychological factors: perception

Answer 27

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

Question 28

psychological factors: learning

Answer 28

change to one’s thought process or behaviour that arises from experience

affects attitudes and perceptions
affected by social experiences

Question 29

societal factors: family

Answer 29

are decision makers for household, are influencers

Question 30

societal factors: reference groups

Answer 30

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

Question 31

societal factors: culture

Answer 31

shared meanings, beliefs, morals, values, and customs of a group of people

Question 32

situational factors

Answer 32

affects consumer decision process; thse that are specific to the purchase and shopping situation and temporal state that may override/influence psychological and social issues

ex: purchase situation, sensory situation

Question 33

temporal state

Answer 33

our state of mind alters our preconceived notions of what we are going to purchase

Question 34

extended problem solving

Answer 34

purchase decision process with devoted time and effort

Question 35

limited problem solving

Answer 35

moderate level of time and effort

Question 36

habitual decision making

Answer 36

little conscious effort