Chp 4: Consumer Behaviour Flashcards
LO1: what does consumer process model represent
represents the steps that consumers go through before, during and after making purchases
LO1: 5 steps in consumer process model
1) need recognition 2) information search 3) alternative evaluation 4) purchase decision 5) postpurchase
LO1: what makes need recognition larger?
The greater the discrepancy between these needy and desired state, the greater the need recognition
LO1: step 1) need recognition: define need recognition
the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from needy state to a different desired state
LO1: step 1) need recognition: example of need recognition
difference between actual hungry state and desired (not hungry) state is greater when you are starving, so need recognition is larger
LO1: step 1) need recognition: 3 types of consumer needs
1) functional needs
2) psychological needs
3) both
LO1: step 1) need recognition: define functional needs
pertain to performance of product or service
LO1: step 1) need recognition: define psychological needs
pertain to personal gratification consumers associate with product/service
LO1: step 1) need recognition: what needs do most products seek to satisfy and example
Most goods and services seek to satisfy both functional and psychological needs (example: purses satisfy functional need of transporting money and a psychological need of an exciting/expensive purse)
LO1: step 1) need recognition: what does successful marketing require
requires determining the correct balance of functional and psychological needs that best appeals to their target markets
LO1: step 1) need recognition: tactics marketers use to make consumers identify needs and 3 examples
Marketers use many tactics to either remind customers or a need or create a new need, example: using reminder advertising for products or showing how a product could enhance a customer’s image or altering layout of store example: place things people buy together like eggs and bread together so when they buy bread, they are reminded to buy eggs too
LO2: step 2) info search - explain info search
search for info about options that exist to satisfy consumer need
LO2: step 2) info search: what does length and intensity of info search depend on
depends on perceived risk associated with purchasing product and importance of product to consumer
LO2: step 2) info search: 2 key types of info
1) internal
2) external
LO2: step 2) info search: define internal search for info and example
occurs when buyer examines own memory and knowledge about product/service, gathered through past experiences
ex. Eating at restaurant you know you like
LO2: step 2) info search: define external search for info and 2 examples
occurs when buyer seeks info outside his own personal knowledge base to help make buying decision
example: Like talking to friends or looking on search engines
LO2: step 2) info search: 3 factors affecting consumer search process
1) perceived benefits vs perceived costs of info search
2) locus of control
3) actual or perceived risk
LO2: step 2) info search: factors affecting consumer search process: explain perceived benefits vs perceived costs
is it worth time and effort to search for info about product/service; probably spend more time researching safety of cars
LO2: step 2) info search: factors affecting consumer search process: explain internal locus of control
people believe they have some control over outcomes of their actions. They generally engage in more search activities
LO2: step 2) info search: factors affecting consumer search process: explain external locus of control
people believe fate or other external factors control all outcomes. It doesn’t matter how much info they gather, if they make good decision it isn’t to their credit and if they make bad decision it isn’t their fault
LO2: step 2) info search: factors affecting consumer search process: explain actual/perceived risk
1) 5 types of risk can delay/discourage purchase
2) The higher the risk, the more likely the consumer will engage in extended search.
LO2: step 2) info search: factors affecting consumer search process: 5 actual/perceived risks
1) performance risk
2) financial risk
3) social risk
4) physiological risk
5) psychological risk
LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain performance risk and example
perceived danger inherent in poorly performing product/service (example tesla car takes longer to charge than expected)
LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain financial risk and how this can be allieved
risk associated with money outlay and includes initial cost to purchase and costs of using item (warranties can alleviate this)
LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain social risk and example
fear consumers suffer when they worry others might not regard purchases positively (friends don’t like dress)
LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain physiological/safety risk
actual harm should product not perform properly
LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain psychological risk and example
way people will feel if product does not convey right image (looked up reviews because he wanted people to perceive choice as a good one)
LO2: step 2) info search: factors affecting consumer search process: - 2 things marketers should do
1) Marketers need to understand sources of info consumers use and with this they can provide info about products/educate consumers about products to build trust/credibility
2) Marketers must communicate tactics aimed at reducing risks to consumers
LO2: step 3) alternative evaluation: what must consumers do
Consumers must evaluate choices available
LO2: step 3) alternative evaluation: when does this often occur
when consumers are in process of info search
LO2: step 3) alternative evaluation: when is this skipped?
Consumers forgo alternative evaluations when buying habitual(convenience) products
LO2: step 3) alternative evaluation: 3 attribute sets
1) universal sets
2) retrieval sets
3) evoked set
LO2: step 3) alternative evaluation: define universal sets
includes all possible choices for product category
LO2: step 3) alternative evaluation: define retrieval sets
brands or stores that can be readily brought forth from memory
LO2: step 3) alternative evaluation: define evoked set
alternative brands or stores that consumer states he would consider when making a purchase decision
LO2: step 3) alternative evaluation: why is evoked set important?
If firm can get into consumer’s evoked set, it can increase likelihood of purchase because consumer will think specifically of brand and this reduces info search
LO2: step 3) alternative evaluation: what do consumers base evaluations of alternatives on?
evaluative criteria
LO2: step 3) alternative evaluation: define evaluative criteria
consists of a set of important attributes about a particular product that are used to compare alternative products (Ex. selling price, material, reputation)
LO2: step 3) alternative evaluation: 2 things consumer uses to simplify decision process
1) determinant attributes
2) consumer decision rules
LO2: step 3) alternative evaluation: define determinant attributes and give example
product/service features that are important to buyers and on which competing brands/stores are perceived to differ (ex. Red soles on louboutin heels)
LO2: step 3) alternative evaluation: define consumer decision rules
set of criteria consumers use consciously and subconsciously to quickly and efficiently select from among several alternatives.
LO2: step 3) alternative evaluation: 3 forms the consumer decision rules takes
1) compensatory
2) noncompensatory
3) decision heuristics
LO2: step 3) alternative evaluation: define compensatory decision rule and give example
assumes consumers when evaluating alternatives trades off one characteristic against another such that good characteristics compensate for bad (ex car superb mileage compensates for increased price)
LO2: step 3) alternative evaluation: define noncompensatory decision rule and give example
consumers choose product on basis of subset of its characteristics, regardless of values of its other attributes (ex. Car with superb mileage might be rejected just because of increased price)
LO2: step 3) alternative evaluation: define decision heuristics rule and give 3 examples
mental shortcuts that help consumers narrow down choices.
Examples: price, brand, product presentation
LO2: step 3) alternative evaluation: what can marketers do to help consumers with evaluation process
Marketers can provide detailed comparison info on price, unique features and benefits to help consumers with evaluation process
LO2: step 4) purchase decision - what do retailers use to measure intentions and purchases and give example
Retailers use conversion rate to measure how well they have converted intentions to purchase into purchases (example consumer might not buy if product is not in store)
LO2: step 4) purchase decision - define ritual consumption and give example
pattern of behaviours tied to life events that affect what and how we consume (ex. Brushing teeth twice a day)
LO2: step 4) purchase decision- what do consumers do after purchase
they consume it (put it to test)