Chapter 7 Flashcards
Discretionary Income
The money left after paying for necessities such as food, rent, and utilities.
Ex: A person uses discretionary income to buy luxury items like designer clothes or vacations.
Culture
Shared values, beliefs, and customs that influence consumer behavior.
Ex: In some cultures, gift-giving is an important tradition during holidays.
Social Class
A consumer’s position in society based on income, education, and occupation.
Ex: Upper-class consumers may prefer shopping at luxury boutiques, while middle-class consumers may shop at department stores.
Reference Groups
Groups that influence a person’s purchasing decisions, such as friends, celebrities, or colleagues.
Ex: A teenager buys a specific brand of sneakers because their friends wear them.
Family Life Cycle
The stages a family goes through over time, affecting their purchasing habits.
Ex: A newlywed couple may buy furniture, while a retired couple may downsize their home.
Household Life Cycle
A broader concept than the family life cycle, considering all types of households, including singles, couples, and multi-generational families.
Ex: A single parent household has different shopping needs than a household with young children.
Personality
A person’s unique psychological traits that influence shopping behavior.
Ex: An extroverted person may prefer shopping in busy malls, while an introverted person may prefer online shopping.
Class Consciousness
The extent to which individuals are aware of and influenced by their social class.
Ex: A consumer who is highly class-conscious may only shop at high-end stores to maintain a certain status.
Attitudes (Opinions)
A consumer’s feelings or beliefs about products, services, or brands.
Ex: A person with a positive attitude toward sustainable products may prefer to buy eco-friendly brands.
Perceived Risk
The potential negative consequences a consumer considers before making a purchase.
Ex: A customer hesitates to buy a new skincare product due to concerns about allergic reactions.
Motives
The internal driving forces behind a consumer’s purchasing behavior.
Ex: A consumer may buy an expensive watch as a status symbol.
Outshopping
When consumers travel outside their local area to shop.
Ex: A person drives to a neighboring city to shop at a high-end mall.
Cross-Shopping
When consumers buy products from a mix of high-end and budget-friendly retailers.
Ex: A shopper buys designer handbags but purchases everyday clothing from discount stores.
Consumer Behavior
The study of how people make decisions about what they buy and why.
Ex: Retailers analyze consumer behavior to determine which products to stock.
Consumer Decision Process
The steps a consumer goes through before, during, and after making a purchase.
Ex: A shopper researches different laptops, compares features, buys one, and later reviews it online
Stimulus
Any factor that triggers a consumer’s interest in a product or service.
Ex: A social media ad for a new phone prompts a consumer to research it further.
Problem Awareness
The recognition of a need or problem that requires a solution.
Ex: A consumer realizes their old phone is slow and needs an upgrade.
Information Search
The process of gathering information about potential products or services.
Ex: A person reads online reviews before choosing a new coffee maker.
Evaluation of Alternatives
Comparing different options to decide which best meets the consumer’s needs.
Ex: A shopper compares different car models based on price, fuel efficiency, and features.
Purchase Act
The actual buying of a product or service.
Ex: A consumer selects a laptop, pays for it, and takes it home.
Post-Purchase Behavior
The consumer’s reaction and actions after making a purchase.
Ex: A customer leaves a positive review after being satisfied with their new shoes.
Cognitive Dissonance
The feeling of doubt or regret after making a purchase.
Ex: A person wonders if they made the right choice after buying an expensive watch.
Extended Decision Making
A lengthy and detailed decision-making process for high-involvement purchases.
Ex: A person spends weeks researching before buying a car.
Limited Decision Making
A moderate level of decision-making for purchases that require some thought but are not highly complex.
Ex: A customer compares a few brands before selecting a new pair of running shoes.
Routine Decision Making
Quick and habitual purchases requiring little thought.
Ex: A person buys the same brand of toothpaste every month without considering alternatives.
Customer Loyalty
A consumer’s preference for and repeat purchases from a specific brand or retailer.
Ex: A person always buys coffee from the same café because of good service and quality.
