Chapter 5/Consumer Behavior

Question 1

Economic Buyers:

Answer 1

People who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money. Consumers are assumed to be economic buyers.

Question 2

Economic Needs:

Answer 2

Concerned with making the best use of a consumer’s time and money as the consumer judges it.
• A consumer’s ability to satisfy economic needs is largely dependent upon their income

Question 3

Discretionary Income:

Answer 3

What is left of income after paying taxes and paying necessities. Spent on “luxuries.” However, it is not a solid concept, because the definition of necessities differs from family to family and over time.

Consumer confidence affects spending as well; in a strong economy, consumers are more confident and secure in their jobs and so are more likely to spend more money.

Question 4

Needs:

Answer 4

The basic forces that motivate a person to do something. Can involve physical well-being, self-view, and relationship with others. Many are culturally/socially learned.

Question 5

Wants:

Answer 5

“Needs” that are learned during a person’s life; not essential to survival.

Question 6

Drive:

Answer 6

A strong stimulus that encourages action to reduce a need. They are internal reasons behind certain behavior patterns.

Question 7

Hierarchy of Needs:

Answer 7

From bottom (more basic) to top:
Physiological Needs
Safety Needs
Social Needs
Personal Needs

Question 8

Physiological Needs:

Answer 8

Concerned with biological needs such as food, liquid, rest, and sex.

Question 9

Safety Needs:

Answer 9

Concerned with protection and physical well-being (concerned with health, financial security, medicine, and exercise). An example of this is when Charmin created luxury public restrooms in Times Square (as stores do not let noncustomers use their restrooms).

Question 10

Personal Needs:

Answer 10

Concerned with the need for personal satisfaction, unrelated to what others think or do (e.g. accomplishment, freedom, fun, relaxation, and the desire to make the world a better place).

Question 11

Perception:

Answer 11

How people gather and interpret information from the world around them. Consumers meet needs in different ways because of differences in perception.

Question 12

Selective Exposure:

Answer 12

People’s eyes and minds seek out and notice only information that interests them.

Question 13

Selective Perception:

Answer 13

People screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.

Question 14

Selective Retention:

Answer 14

People remember only what they want to remember.

These selective processes help explain why some people are not affected by some advertising.

Question 15

Learning:

Answer 15

A change in a person’s though process caused by prior experience. Often based on direct experience, but may also be based on indirect experiences or associations. Almost all consumer behavior is learned.

Question 16

Cues:

Answer 16

Stimuli in the environment such as products, signs, ads.

Question 17

Response:

Answer 17

An effort to satisfy a drive. The response chosen depends on the cues and the person’s past experience.

Question 18

Reinforcement (of learning):

Answer 18

Occurs when response is followed by satisfaction/reduction in drive. Reinforcement strengthens the relationship between a cue and a response. Repeated reinforcement leads to habits.
Marketers often try to add cues or images that have positive associations from other situations to their marketing mix. An example of this is how lemon scent is added to household cleaning products because many people associate the smell of it with cleanliness.

Question 19

Attitude:

Answer 19

A person’s point of view toward something. Involve liking or disliking. Attitudes alone are not good predictors of intentions to buy.

Question 20

Belief:

Answer 20

A person’s opinion about something. May shape consumer’s attitudes, but don’t necessarily involving liking or disliking.
Consumer attitudes tend to be enduring, so marketers usually try to work with existing attitudes rather than changing them.

Question 21

Expectation:

Answer 21

A combination of attitudes and beliefs; an outcome or event that a person anticipates or looks forward to.

Question 22

Trust:

Answer 22

The confidence a person has in the promises or actions of another person, brand, or company. Trust drives expectations, because when people trust, they expect the other party to fulfill promises or perform capably. Trust lends many advantages to companies in the marketplace.

Question 23

Psychographics/Lifestyle Analysis:

Answer 23

The analysis of a person’s day-to-day pattern of living as expressed in that person’s activities, interests, and opinions (AIOs). By understanding the lifestyles of target customers, marketers have a more human portrait of the target market, which is helpful in providing ideas for advertising themes.

Question 24

Empty Nesters:

Answer 24

People whose children are grown and who are now able to spend their money in other ways. This is usually a high-income period and they are an attractive market for many items.
Marketers have to consider who makes the decisions in family purchases; usually buying responsibility and influence vary greatly depending on the product and the family.

Question 25

Social Class:

Answer 25

A group of people who have approximately equal social position as viewed by others in the society. There is some general relationship between income level and social class, but people with the same income level may be in different social classes. It differs from country to country, but marketers in the US measure social class groupings based on people’s occupation, education, and type/location of housing. 
Distinctive social classes do exist and they differ; various classes shop at different stores, prefer different treatment from salespeople, buy different brands, etc.

Question 26

Reference Group:

Answer 26

The people to whom an individual looks when forming attitudes about a particular topic.

Question 27

Opinion Leader:

Answer 27

A person who influences others.

Question 28

Culture:

Answer 28

The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogenous set of people. Marketers must consider cultural differences and subcultural differences. Many firms make the mistake of treating all consumers in a particular ethnic group as homogenous.
Individuals are affected by the purchase situation.

Question 29

Extensive Problem Solving:

Answer 29

Used when consumers when they put a lot of effort into deciding how to satisfy a need.

Question 30

Limited Problem Solving:

Answer 30

Used by consumers when some effort is required in deciding the best way to satisfy a need.

Question 31

Routinized Response Behavior:

Answer 31

Used when a consumer regularly selects a particular way of satisfying a need when it occurs. Typical for low-involvement purchases.

Question 32

Low-Involvement Purchases:

Answer 32

Purchases that have little importance or relevance for the customer (e.g. buying a box of salt).

Question 33

Dissonance

Answer 33

The resulting tension after buyers purchase something.

Question 34

Basic Needs:

Answer 34

Esteem
Control (over outcome, environment)
Belonging
Meaningfulness

Question 35

Low Effort Decision Making:

Answer 35

Automatic and (mental) Resource saving

Question 36

Heuristics:

Answer 36

“Rules of thumb”:
Price (indicative of quality)
Habit
Normative (taking info from people around, if other people use it, it must be good)
More is better (How many attributes a thing has)

Question 37

Factors that influence satisfaction:

Answer 37

Performance/quality (weak correlation, because it does not take into account cost)
Value (ratio of inputs, $, to outputs, quality)
Equity (sense of fairness of transaction, includes two other concepts)

However, expectations are the biggest predictor of satisfaction/dissatisfaction

Question 38

Satisfaction (or dissatisfaction):

Answer 38

Occurs when there is a discrepancy, either positive or negative, between our expectations and the product’s actual performance.

Question 39

Consumer Decision Making Process:

Answer 39

Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior

Question 40

Internal Search:

Answer 40

Search long term memory for things that can satisfy the need

Question 41

Consideration (Evoked) Set:

Answer 41

Short list of potential solutions, have distinct advantage

Question 42

External Search:

Answer 42

Interpersonal and word of mouth (most influential)

Question 43

Information search is influenced by:

Answer 43

Motivation; more motivation means greater effort put into search