Chapter 6 - Consumer Behavior and Peer-to-Peer E-Commerce Flashcards
Consumer Behavior
- The process involved when individuals or groups select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.
- Aquiring, consuming, & disposing of products.
Simple Behavior Model
- B = f(person, environment)
Habitual Decision Making
- “Effort Continuum”
- Habitual - deciding to buy soda can
- Low involvement and risk
- Respond to environmental cues
- Behavioral learning
- Environmental cues at point of purchase
Extended Problem Solving
- Extended - Buying a new car
- High involvement and risk
- Careful processing of information
- Cognitive learning
- Provide info. viz advertising, salespeople, brochures, etc.
Limited Problem Solving
- Consumers do work to make a decision.
- Rules of thumb
Perceived risk
- Present if the product is expensive or complex and hard to understand.
- The belief that choice of a product has potentially negative consequences, either financial, physical, or social.
1.Problem Recognition
The process that occurs whenever the consumer sees a signification difference between his current state of affairs and some desired or ideal state.
- Information Search
The process whereby a consumer searches for appropriate information to make a reasonable decision.
- Evaluation of Alternatives
- Understand the criteria consumers use in comparing brands and communicate own brand superiority.
- Identifying important characteristics
- Product Choice
Deciding on one product and acting on the choice
Heuristics
Rules that help simplify the decision-making process. (a mental rule of thumb)
Brand Loyalty
Assumes that people buy from the same company over and over because they believe that the company makes superior products.
- Post Purchase Evaluation
- When the consumer evaluates the quality of the decision he made.
Consumer Satisfaction/Dissatisfaction
- The overall feelings or attitude a person has about a product.
- Internal, situational, and social influences.
Perception
The process by which people select, organize, and interpret information from the outside world.
- Impressions are usually based on the physical qualities.
Exposure
The stimulus must be within range of people’s sensory receptors to be noticed.
Perceptual Selection
Consumers choose to bay attention to some stimulli but no to others.
- aware of messages that speak to current needs
Interpretation
Consumers assign meaning to the stimulus. The meaning is influenced by prior associations they have learned and assumptions they make.
Motivation
An internal state that drives us to satisfy needs by activating goal-oriented behavior.
Maslow’s hierarchy of needs
- An approach that categorized motives according to the five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top.
1. Physological
2. Safety
3. Belongingness
4. Ego Needs
5. Self-Actualization
Learning
A relatively permanent change in behavior caused by acquired information or experience.
Behavioral Learning Theories
Theories of learning that focus on how consumer behavior is changed by external events or stimuli.
Classical Conditioning
Occurs when a person perceives two stimuli at about the same time. After a while, the person transfers his response from one stimulus to the other.
- Ex. Ad with beautiful scene and product
Operant Conditioning
- Learning that occurs as the result of rewards or punishments.
- Feedback acts as a reinforcement for the behavior.
Stimulus Generalization
Behavior caused by a reaction to one stimulus occurs in the presence of other, similar stimuli.
- Good or bad feelings associated with a product will rub off on other products that resemble it.
Cognitive Learning Theory
- Views people as problem solvers who do more than passively react to associations between stimuli.
- Importance of internal mental processes
- Views people as problem solvers
- People actively use information from the world around them to master their environment.
