chapter 5 Flashcards
consumer behaviour
the study of how individuals, groups, and organisations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. a consumer’s behaviour is influenced by cultural, social, and personal factors.
culture
the fundamental determinant of a person’s wants and behaviour. the view of the self, relationships to others, and rituals might differ between children raised in different countries.
subculture
provides more specific identification and socialisation for their members.
social classes
relatively homogeneous and endure divisions within a society. the social classes are lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, and upper uppers.
reference groups
all the groups that have a direct (face-to-face) or indirect influence on their attitude or behaviour.
membership groups
groups that have a direct influence.
primary groups
groups with whom the person interacts fairly continuously and informally.
secondary groups
groups that tend to be more formal and require less continuous interaction.
aspirational groups
those a person hopes to join.
dissociative groups
those whose values or behaviour an individual rejects.
opinion leader
person who offers informal advice or information about a specific product or product category.
cliques
small groups whose members interact frequently.
family
society’s most important consumer buying organisation; it constitutes the most influential primary reference group.
family of orientation
consists of parents and siblings. a person acquires an orientation toward religion, politics, economics, and a sense of personal ambition, self-worth, and love.
family of procreation
includes the person’s spouse and children. has a more direct influence on everyday buying behaviour.
role
consists of the activities a person is expected to perform. marketers should consider the family life cycle, psychological life cycle, and the critical life events or transitions and occupations, because these factors influence the consumption patterns of consumers. each role in turn connotes a status.
personality
a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli, including buying behaviour.
brand personality
a specific mix of human traits that we can attribute to a particular brand. consumer may choose brands with a brand personality consistent with their actual self-concept, ideal self-concept, or others’ self-concept.
lifestyle
a person’s pattern of living in the world as expressed in activities, interests, and opinions. lifestyles are partly shaped by whether consumers are more money constrained or time constrained.
core values
the belief systems that underlie attitudes and behaviours.
biogenic needs
arising from physiological states of tension such as hunger, discomfort, and thirst.
psychogenic needs
arise from psychological states of tension such as need for recognition, esteem, or belonging.
motive
a need becomes a motive when it is aroused to a sufficient level of intensity to drive us to act.
freud’s theory of human motivation
freud assumed that the psychological forces shaping people’s behaviour are largely unconscious and that a person cannot fully understand his or her own motivations.
laddering
technique which lets us trace a person’s motivations from the stated instrumental ones to more terminal ones.
maslow’s theory of human motivation
maslow sought to explain why people are driven by particular needs at particular times. his answer was that human needs are arranged in a hierarchy from most to least pressing (from one to five).
herzberg’s theory of human motivation
herzberg developed a two-factory theory that distinhuished dissastifiers (factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction). the absence of dissatisfiers is not enough to motivate a purchase; satisfiers must be present.
perception
the process by which we select, organise, and interpret information inputs to create a meaningful picture of the world.
sensory marketing
marketing that engages the consumers’ senses and affects their perception, judgement, and behaviour. it can be manifested subconsciously to shape perceptions of more abstract qualities (brand personality aspects) of a product/service or by affecting the perceptions of specific product/service attributes (eg. colour, taste, or shape)
selective attention
explains how we screen most stimuli out because we cannot possibly attend to all ads or brand communications a day. people are most likely to notice stimuli that relate to a current need/they anticipate/whose deviations are large in relationship to the normal size of the stimuli.
selective distortion
the tendency to interpret information in a way that firs our preconceptions.
selective retention
when we are likely to remember good points about a product we like and forget good points about competing products.
drive
a strong internal stimulus impelling action.
cues
minor stimuli that determine when, where, and how a person responds.
generalisation
when one associates a product/service of a company with others of the same company.
associative network memory model
views long-term memory as a set of nodes and links. nodes are stored information connected by links which vary in strength.
brand associations
all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become links to the brand node.
memory encoding
describes how and where information gets into the memory. the strength of the resulting association depends on how much we process the information at encoding (eg. how much we think about it).
memory retrieval
the way information gets out of the memory.
heightened attention
a person becomes more receptive to information about a product.
consumer buying decision process
- problem recognition
- information search
- evaluation of alternatives
- purchase decision
- post-purchase behaviour
belief
a descriptive thought that a person holds about something.
attitudes
a person’s enduring favourable or unfavourable evaluations, emotional feelings, and action tendencies toward some object or idea.
expectancy-value model
posits that consumers evaluate products and services by combining their brand beliefs (positive and negative) according to importance.
functional risk
the product does not perform to expectations.
physical risk
the product poses a threat to the physical well-being or health of the user or others.
financial risk
the product is not worth the price paid.
psychological risk
the product affects the mental well-being of the user.
time risk
the failure of the product results in an opportunity cost of finding another satisfactory product.
availability heuristic
where consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind.
representativeness heuristics
where consumers base their predictions on how representative or similar the outcome is to other examples.
anchoring and adjustment heuristic
where consumers arrive at an initial judgement and then adjust it - sometimes only reluctantly - based on additional information.
decision framing
the manner in which choices are presented to and seen by a decision maker.
mental accounting
describes the way consumers code, categorise, and evaluate financial outcomes of choices. the core principle: consumers tend to segregate gains, integrate losses, integrate smaller losses with larger gains, segregate small gains from large losses.
prospect theory
maintains that consumers frame their decision alternatives in terms of gains and losses according to a value function. consumers are generally loss-averse.
organisational buying
the decision-making process by which formal organisations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
business market
consists of all the organisations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. the overall business market includes institutional and government organisations in addition to profit-seeking companies.
institutional market
consists of schools, hospitals, and other institutions that provide goods and services to people in their care. in most countries, government organisations are major buyers of goods and services.
straight rebuy
the purchasing department reorders items like office supplies and bulk chemicals on a routine basis and chooses from suppliers on an approved list.
modified rebuy
buyer wants to change product specifications, prices, delivery requirements, or other terms.
new task
purchaser buys a product or service for the first time.
systems buying and systems contracting
most business buyers prefer to buy a total problem solution from one seller; systems buying. therefore, many sellers have adopted systems contracting, in which one supplier provides the buyer with all the MRO (maintenance, repair, and operating) supplies.
buying centre
the decision-making unit of a buying organisation. it consists of all those individuals and groups who participate in the purchasing decision-making process, who share common goals and the risks arising from the decisions. it includes all organisational members who play the roles of initiator, user, influencer, decider, approver, buyer, or gatekeeper.
buying phases
eight stages in the buying-decision process in the buy grid framework:
1. problem recognition
2. general need description
3. product specification
4. supplier search
5. proposal solicitation
6. supplier selection
7. order-routine specification
8. performance review
product value analysis (PVA)
an approach to cost reduction that studies whether components can be redesigned, standardised, or made by cheaper methods of production without adversely affecting product performance.
vertical hubs
type of e-hub centred on industries (plastics, steel, chemicals, etc.)
functional hubs
type of e-hub eg. logistics, media buying, and advertising.
stockless purchase plans
blanket contracts where the supplier promises to resupply as needed, at agreed-upon prices, over a specific period.
vendor-managed inventory
when companies shift the ordering responsibility to their suppliers by signing long-term contracts that ensure a steady flow of materials. the suppliers are privy to the consumer’s inventory levels and take responsibility for continuous replenishment programs.
buyer-supplier relationship categories
- basic buying and selling
- bare bones: require more adaptation by seller and less cooperation and information exchange.
- contractual transaction
- customer supply: cooperation is the dominant form of governance.
- cooperative systems: participants are united in operational ways, but neither demonstrates structural commitment through legal means or adaptation.
- collaborative
- mutually adaptive: many relationship-specific adaptations, but without achieving strong trust or cooperation.
- customer is king: seller adapts to meet the customer’s needs without expecting much adaptation or change in exchange.
consumer’s and supplier’s specific investments
expenditures tailored to a particular company and value chain partner.
opportunism
some form of cheating or undersupply relative to an implicit or explicit contract. this is a concern because firms must devote resources to control and monitoring that would otherwise be allocated to more productive purposes. when a supplier has a good reputation, it is more likely to avoid opportunism to protect this valuable intangible asset.
