Chapter 6: Consumer Decision Making Flashcards
Define Consumer Decision Making
A five-step process used by consumers when buying goods or services
What is the Importance and Understanding of Consumer Decision Making?
Without an understanding, the development of an effective mic is highly compromised. Consumer preferences are continually changing
Types of Needs
Functional Needs: Basic Needs
Psychological Needs: Wants
Define Need Recognition
The results of an imbalance between actual and desired states
Define Stimulus
Any unit of input affecting one or more of the five sense: sight, smell, taste, touch, or hearing
Define Imbalance
Triggered when a consumer is exposed to internal or external stimulus. Internal would be hunger or thirst, and external could be advertising or sales promotions
What is Internal Information Searching?
The process of recalling information stories on one’s memory (already know)
What is External Information Searching?
The process of seeking information in the outside environment (online, or from experts)
What is Non Marketing Controlled Information Searching?
An informational source not associated with advertising or promotion
What is Marketing Controlled Information Searching?
Originates with marketers promoting the product
Factors Affecting Information Searching
The extent of the information search is dependent on the consumer’s perceived risk, knowledge, prior experience, and level of interest in the good or service.
- Generally, as the perceived risk increases, the amount of information search increases
Define Evaluation and Alternative
Comparing both pros and cons; based on value (the perceived value: values based on the person)
- This is different for everyone
- Based on preference
- Ex. Hot vs Cold Vacation
- Ex. Cheap vs. Luxury
Define Evoked Set (Consideration Set)
A group of the most preferred alternatives resulting from an information search, which a buyer can further evaluate to make their final choice
Define Post-Purchase Behaviour
Consumer Satisfaction; the goal is to ensure that the outcome of the purchase meets or exceeds the customer’s expectations
- Redefining, Satisfying
- Unsatisfied = return = lose $
- Must work to satisfy customers
Define Cognitive Confirmation
The reaffirmation of the wisdom of the decision a consumer has made (satisfied)
Define the Types of Consumer Buying Decision
Types of buying decisions can be best described by referring to five factors
Define Level of Consumer Involvement
The amount of total time and effort a buyer invests in the search and evaluation, and decision process
Define Routine Response Behaviour
The type of decision, making exhibited by consumer buying frequently purchased, low-cost and services; requires little search and decision time
Define Limited Decision Making
The type of decision making that requires moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
Define Extensive Decision Making
The most complex type; Used when considering the purchase of an unfamiliar, expensive product or an infrequently purchased items; require the use of several criteria for evaluating options and much more time for seeking info.
Define Cultural Influences as a Factor Affecting Consumer Buying Decisions
Culture comprises the set of values, norms, attitudes, and other meaningful symbols that shape human behaviours. Culture is the essential character of a society that distinguishes it from other culture groups
- Makes it easier to target markets
Define Social Factors as a Factor Affecting Consumer Buying Decisions
Combination of income, occupation, education, wealth, and others. Consumers interact socially with reference groups, opinion leaders, and/or family members who obtain product information and decision approval
Define Opinion Leaders as a Factor Affecting Consumer Buying Decisions
Reference groups who influence others, often the first to try new products (varies by category)
Define Family as a Factor Affecting Consumer Buying Decisions
The most important social institution
Define Gender as a Factor Affecting Consumer Buying Decisions
Physiological differences between men and women result in different needs and in how they make purchases. Changing roles in work and society are influencing this
Define Age as a Factor Affecting Consumer Buying Decisions
Influences what we buy
Define the Family Life Cycle
Related to age- an orderly series of stages through which consumers’ attitudes and behaviour tendencies evolve as they age, they gain more experience and maturity.
Define Personality as a Factor Affecting Consumer Buying Decisions
Each individual has a unique personality; psychological makeup and environmental factors
Define Self Concept as a Factor Affecting Consumer Buying Decisions
Ideal self-image and real self-image. Consumers generally never buy products that jeopardize their self-image. We try to raise our real self-image toward our ideal. Body image is part of self-image and much in the media around appropriate body image and products today is marketed to enhancing perceived body image, whether that be weight loss products or products that make the aging boomer feel younger.
Define Perception as a Factor Affecting Consumer Buying Decisions
Marketers must recognize the importance of cues, or signals, in consumers’ perception of products. Marketing managers first identify the important attributes that the targeted consumers want in a product, such as price, social acceptance, or quantity, and then design signals to communicate these attributes.
Define Motivation
Motives are the driving forces that cause a person to take action to satisfy specific needs.
Define Learning
Almost all consumer behaviour results from learning, which is the process that creates changes in behaviour, immediate or expected, through experience and practice. It is not possible to observe learning directly, but we can infer when it has occurred by a person’s actions.
Define Experimental Learning
When an experience changes your behaviour.
Define Conceptual Learning
When you hear about/are told something that changes your behaviour.
