Chapter 5

Question 1

Consumer behaviour

Answer 1

Those activities directly involved in obtaining, consuming, and disposing of products and services, including the decision processes that precede and follow these actions

Question 2

Consumer packaged goods (CPG)

Answer 2

Low-involvement consumer products, typically low-priced items such as paper towels, batteries, toothpaste, laundry products, and frozen or canned food

Can transfer CPG or other low-involvement brands from simple memory-based ones (mindshare brands) into more culturally and socially meaningful ones through advertisin

Question 3

Mindshare brands

Answer 3

Brands that are promoted and purchased largely through memory of the brand name and sometimes one simple quality or attribute

Question 4

Perspective 1: The Consumer as Decision Maker

Answer 4

views individuals as purposeful decision makers who either weigh and balance alternatives or resort to simple decision rules of thumb (heuristics) to make decisions if the decision is complex and they are overwhelmed with information

Question 5

The Consumer Decision-Making Process:

Answer 5

Need Recognition

Information search and alternative evaluation

Purchase

Post-purchase use and evaluation

Question 6

1. Need Recognition

Answer 6

mental discomfort or anxiety that motivates action

the discomfort can range widely

one way advertising works - pointing to and activating a need that will motivate consumers to buy a product or service
ex.) Target - motivating factor - shopping for everything in one place

making a connection between the product/service and the consumers needs is the job of the advertiser

if the consumer thinks of it as a need, then it’s a need

Question 7

need state

Answer 7

A psychological state arising when one’s desired state of affairs differs from one’s actual state of affairs

Question 8

2. Information Search and Alternative Evaluation

Answer 8

once the need is identified
need recognition sets into motion a process - extensive information search and evaluation of alternatives
during this search and evaluation, a advertiser can influence the final purchase decision

Question 9

internal search

Answer 9

A search for product information that draws on personal experience and prior knowledge
sometimes all the is required
internal search can slo tap into information that is in a consumers memory as a result of repeated advertising exposures

Question 10

evoked set

Answer 10

the set of brands (2-5) that comes to mind when a category is mentioned
found through advertising, sponsorships, exposure to brands in stores, actual use, habit

Question 11

consideration set

Answer 11

the subset of brands from a particular product category that becomes the focal point of a consumer’s evaluation and consider for purchase

Question 12

top of mind

Answer 12

The first brand one can remember when asked to name the brands in a category

Question 13

external search

Answer 13

A search for product information that involves visiting retail stores to examine alternatives, seeking input from friends and relatives about their experiences with the products in question, or perusing professional product evaluations

Question 14

evaluative criteria

Answer 14

The product attributes or performance characteristics on which consumers base their product evaluations.
ex.) price, texture, warranty, service support, colour, scent, carb content
advertisers must understand this criteria that consumers use to make their buying decisions
also should know how consumers rate your brand in comparison to others

Question 15

3. Purchase

Answer 15

consumer has made a decision

no matter what product, the consumer is likely to buy from it again in the future, so after-sale is very important

Question 16

conversion

Answer 16

A process where consumers go on from trying a brand to buying it a second time (repeat purchase)
they want brand loyalty or brand ambassadors

Question 17

brand ambassadors

Answer 17

A consumer who actively recommends a brand to others

Question 18

4. Post-purchase Use and Evaluation

Answer 18

goal is not just to make a sale, but to create satisfied, loyal customers
65% of the average company’s business comes from its present, satisfied customers,
91% of dissatisfied customers will never buy again from the company that disappointed them

Question 19

Customer satisfaction

Answer 19

Good feelings that come from a favourable post-purchase experience
may developed after one use, but more likely needs sustained use
advertising creates appropriate expectations for a brand’s performance

Question 20

cognitive dissonance

Answer 20

The anxiety or regret that lingers after a difficult purchase decision
advertising plays a role in alleviating this
“buyers remorse”
dissonance must be resolved
dissonance is expected from purchasing high-cost items
when this happens, advertiser needs to reassure the buyer

Question 21

post-purchase reinforcement

Answer 21

direct mail, email, personalized contracts with the customers

Question 22

Involvement

Answer 22

The degree of perceived relevance and personal importance accompanying the choice of a certain product or service within a particular context

Question 23

consumer–brand relationship

Answer 23

The affiliation between consumer and brand, meaning the consumer’s emotional attachment to a brand or category.

Question 24

4 different modes of consumer decision making:

Answer 24

1. Extended problem solving
2. Limited Problem solving
3. Habit or Variety Seeking
4. Brand Loyalty

Question 25

extended problem solving

Answer 25

A decision-making mode in which consumers are inexperienced in a particular consumption setting but find the setting highly involving

Question 26

Limited problem solving

Answer 26

A decision-making mode in which consumers’ experience and involvement are both low
less systematic in decision making
info search is limited to trying the first brand encountered
seeking adequate solutions to mundane problems
free samples, trial sizes, coupons
CPG categories - memory huge factor

Question 27

habit

Answer 27

A decision-making mode in which consumers buy a single brand repeatedly as a solution to a simple consumption problem consumer repurchase from the category over and over again
common decision making mode

Question 28

Variety seeking

Answer 28

A decision-making mode in which consumers switch their selection among various brands in a given category in a random pattern, often because they enjoy new experiences

consumers fighting the bordem of habit through variety seeking
2-5 brands that provide similar levels of satisfaction, not just buying any brand
from any one occasion to the next, the individuals with switch brands from within this set, just for the sake of variety

snack food, soft drinks, alcoholic beverages, cereals, fast foods

Question 29

Brand Loyalty

Answer 29

some degree of emotion connection
different from simple habit, brand habit will seek out this brand bc of emotion tie
habits can be disrupted, brand loyalty cannot

Question 30

predecisional distortion

Answer 30

A psychological bias in favour of a brand that unconsciously weights incoming information in the direction of the favoured brand. It is thought to be due to an emotional response to the brand.
suggesting that one way to create true brand loyalty is through emotional advertising (linking emotion with the brand)

Question 31

Semantic (Word) Memory

Answer 31

names, words, and concepts are stored and retrieved rom our minds
kind of memory that drives low-involvement or mindshare brands
CPG are the most common users of semantic memory

Question 32

accessibility

Answer 32

How easy (quick) it is to remember something
more likely to buy a low-involvement good from a brand you remember than from a brand you don't

Question 33

accessibility bonus

Answer 33

A psychological phenomenon in which easily remembered brands are also believed to be more prevalent (common), more popular, and better

Question 34

Episodic Memory

Answer 34

memories of episodes

memory of events, what you did last night, etc.

Question 35

Emotion

Answer 35

if a brand is associated with a positive emotion, the information about the brand is actually distorted in favour of the emotion-linked brand and against others

Question 36

Information Overload and Simplification

Answer 36

consumers get too much info and confront too many choices to be able to effectively apply all the info to the choice task
then use a decision heuristic

Question 37

decision heuristic

Answer 37

a way of simplifying the task

ex. buying the most popular brand, least expensive, most expensive, bought last, heard most about

Question 38

Advertising clutter

Answer 38

An obstacle to advertising resulting from the large volume of similar ads for most products and services

Question 39

attitude

Answer 39

an overall evaluation of any object, person, or issue that varies along a continuum, such as favourable to unfavourable or positive to negative

Question 40

meaning

Answer 40

What an advertisement intends or conveys

Question 41

culture

Answer 41

What people do—the ways they eat, groom themselves, celebrate, mark their space and social position, and so forth
can be national, regional, local, etc.

Question 42

materialism

Answer 42

When people place particular emphasis on money and material goods

Question 43

Rituals

Answer 43

Repeated behaviours that affirm, express, and maintain cultural values

Question 44

Stratification

Answer 44

A person’s relative standing in a social system as produced by systematic inequalities in things such as wealth, income, education, power, and status. Also referred to as social class

Question 45

Taste

Answer 45

A generalized set or orientation to consumer preferences

Question 46

Family

Answer 46

discern the needs of families and discover how decisions are made within families
not clear who makes the decisions in families - muddling-through - decisions just get made sometimes and no one is really sure who made them

Question 47

life-stage

Answer 47

A circumstantial variable, such as when a family’s youngest child moves away from home, which changes the consumption patterns of the family
advertisers like to track the age of the youngest child living at home and use it as a planning criterion

Question 48

Identity

Answer 48

Who one perceives themselves to be
teenagers are a great market segment as their identity is in constant flux + are constantly consuming things to express identity

Question 49

Race and Ethnicity:

Answer 49

because race and ethnicity have mattered in culture, they do still matter in consumer behaviour
advertisers must ask why groups of consumers are different, or prefer different brands, and not settle for an easy answer

Question 50

Politics

Answer 50

In many parts of the world, consumption and branding have a long political history, so brand–political associations are commonplace

Question 51

Gender

Answer 51

As long as men and women are the products of differential socialization, then they will continue to be different in some significant ways.

Question 52

community

Answer 52

A group of people loosely connected by some common characteristic or interest; a community may share a sense of kinship and exert influence
members of communities often share rituals and traditions and feel responsibility to each other

Question 53

Brand communities

Answer 53

groups of consumers who feel a commonality and a shared purpose related to a consumer good or service

Question 54

Cultural Branding and Advertising

Answer 54

Cultural branding is a type of branding that leverages sociocultural forces to create and maintain great brands
often dependent on advertising
basic idea is to find some rift or stress in the seams of society and culture and then use this to offer a solution in the form of a branded good

Question 55

opinion leaders

Answer 55

People who influence the opinions and behaviours of consumers