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.
Observational Learning
occurs when people watch the actions of other and note what happens to them as a result.
Attitude
A lasting evaluation of a person, object, or issue.
- Affect (overall feeling)
- Cognition (beliefs and knowledge a person has)
- Behavior (what happens when the person takes action by deciding to buy or use the product.)
Personality
The set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment.
- Innovativeness
- Self-Confidence
- Sociability
Self-Concept
An individual’s self-image that is composed of a mixture of beliefs, observations, and feelings about personal attributes.
Family Life Cycle
- The stages through which family members pass as they grow older.
- A way to characterize customers (purchase preferences)
Lifestyle
a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences.
Psychographics
- Groups consumers according to psychological and behavioral similarities.
- Psychological, sociological, and anthropological factors.
Situational Influences
- When
- Where
- How
- Physical Surroundings
- Time pressures
- People in Surroundings
Culture
The values, beliefs, customs, and tastes valued by a group of people.
Subculture
A group within a society whose members share a distinctive set of beliefs, characteristics, or common experiences.
Social Class
The overall rank of people within a society according to the value assigned to such factors as family background, education, occupation, and income.
Reference Group
An actual or imaginary individual or group that has a significant effect on an individual’s evaluations, aspirations, or behavior.
Conformity
A change in beliefs or actions as a reaction to real or imagined group pressure.
Sex roles
Society’s expectations regarding the appropriate attitudes, behaviors, and appearance for men and women.
Opinion Leader
A person who is frequently able to influence others’ attitudes or behaviors by virtue of his or her active interest and expertise in one or more product categories.
C2C e-commerce
Communications and purchases that occur among individuals without directly involving the manufacturer or retailer.
Consumer Behavior Model - Environmental Factors
- Social Class
- Culture
- Subculture
- Social values/norms
- Income
- Education
- Family
- Situational Factors
- Reference Groups
- Marketing Mix
Consumer Behavior Model - Individual Factors
- Motives
- Perception
- Information Processing
- Learning
- Attitudes
- Personality
Consumer Behavior Model - Purchase Decision
- “PIE PP”
1. Problem Recognition
2. Information Search (Internally vs. Externally)
3. Evaluation of alternatives
4. Purchase Decision
5. Post-Purchase Evaluation
High vs. Low Involvement Decisions
- Low
- Internal Only, emotional appeal, prior knowledge
- Celebrities
- High
- Logical, Rational, high information
Performance Risk
- The brand may not perform its function well
- It may not work
- It may break down
Performance Risk
- The brand may not perform its function well
- It may not work
- It may break down
Financial Risk
The buyer may lose money by paying too much or may miss buying something else.
Financial Risk
The buyer may lose money by paying too much or may miss buying something else.
Physical Risk
The product may be harmful or unhealthy; it may cause injury.
Physical Risk
The product may be harmful or unhealthy; it may cause injury.
Social Risk
Friends, relatives, or significant others may not approve of the action.
Social Risk
Friends, relatives, or significant others may not approve of the action.
Time-Loss Risk
Maintenance time or time required to return product to place of purchase may be excessive.
Could have been used better somewhere else.
Time-Loss Risk
Maintenance time or time required to return product to place of purchase may be excessive.
Could have been used better somewhere else.
Motivation
- Define gap between actual and desired state.
- Something stimulates the mind to do something
- Basic = Rational, Emotional (passion) and Unrecognized needs (explain benefits)
Motivation
- Define gap between actual and desired state.
- Something stimulates the mind to do something
- Basic = Rational, Emotional (passion) and Unrecognized needs (explain benefits)
Equity Theory
- Financial Value to be balanced/fair
- The Prodigal Son
Equity Theory
- Financial Value to be balanced/fair
- The Prodigal Son
If Inequity is Perceived…
- Inputs are changed (what we do)
- Outcomes (ees take advantage)
- Comparisons (people have it worse than you)
- Quit (give up)
If Inequity is Perceived…
- Inputs are changed (what we do)
- Outcomes (ees take advantage)
- Comparisons (people have it worse than you)
- Quit (give up)
Attribution Theory
- Obect (neg. outcomes)
- Other (neg. outcomes)
- Observer (you, positive outcomes)
Attribution Theory
- Obect (neg. outcomes)
- Other (neg. outcomes)
- Observer (you, positive outcomes)
Expectancy Theory
- Chance
1. Expectancy
2. Instrumentality (Efforts and Performance
3. Valence (Value Reward = ouctome
