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)
LO2: step 5) postpurchase - why are marketers interested in postpurchase
because it entails actual, rather than potential consumers. If consumer is happy, they will spread positive work of mouth and might purchase again, otherwise they may leave bad reviews.
LO2: step 5) postpurchase - 3 possible purchase outcomes
customer satisfaction, postpurchase cognitive dissonance(buyers remorse), customer loyalty (disloyalty)
LO2: step 5) postpurchase - explain a time when customer satisfaction is not met (purchase outcome)
Unrealistically high consumer expectations through advertising may lead to high initial sales but will eventually lead to dissatisfaction when product doesn’t achieve expectation
LO2: step 5) postpurchase - 4 things marketers do to ensure postpurchase customer satisfaction
1) build realistic expectations and deliver
2) demonstrate correct product use
3) provide warranties
4) returns
LO2: step 5) postpurchase - define postpurchase cognitive dissonance
internal conflict that arises from inconsistency between 2 beliefs or between beliefs and behaviour
LO2: step 5) postpurchase - when does postpurchase cognitive dissonance most often occur?
Usually occurs when consumers feel they made purchase without all info, they were persuaded by salesperson
LO2: step 5) postpurchase - how can marketers help eliminate postpurchase cognitive dissonance
Marketers can send consumers email telling them they might right purchase decision
LO2: step 5) postpurchase -explain why consumer loyalty outcome is important
Loyal consumers will frequent stores so they are valuable to marketers
LO2: step 5) postpurchase - 2 undesirable consumer behaviour
1) negative word of mouth
2) passive consumers
LO2: step 5) postpurchase - when does negative word of mouth occur
occurs when consumers spread negative info about product to others
LO2: step 5) postpurchase - what can firms do to lessen negative word of mouth
firms can have customer service representatives to handle complaints
LO2: step 5) postpurchase: what are passive consumers
those who don’t repeat purchase or fail to recommend product
LO3: 3 factors that influence consumer buying behaviour
1) psychological
2) social
3) situational
LO3: what are psychological factors?
Influences internal to consumer
LO3: 5 things included in psychological factors
1) Motives
2) attitudes
3) perceptions
4) learning
5) lifestyle
LO3: psychological factors: define motive
Need or want that is strong enough to cause person to seek satisfaction, recall that marketing is all about satisfying needs and wants
LO3: psychological factors: motive: 5 groups of needs from maslow
physiological, safety, love/social, esteem, self-actualization
LO3: psychological factors: motive: explain physiological needs and give example
food, water - basic biological necessities of life
LO3: psychological factors: motive: explain safety need
protection and physical well being
LO3: psychological factors: motive: explain love/social need
interactions with others
LO3: psychological factors: motive: explain esteem needs and give example
allow people to satisfy inner desires ex yoga
LO3: psychological factors: motive: explain self-actualization needs and give example
personal growth activities - you are satisfied with your life and how you live, ex. You drive a honda because it suits the person you are
LO3: psychological factors: motive: what should marketers do for motives
Good marketers add value to products by offering info on as many of the pyramid needs as they can
LO3: psychological factors: attitudes: define attitudes
person’s enduring evaluation of his feelings about and behavioural tendencies towards an object/idea
LO3: psychological factors: attitudes: 3 components of attitudes
cognitive, affective, behavioural
LO3: psychological factors: attitudes: define cognitive
what we believe to be true
LO3: psychological factors: attitudes: define affective
what we feel about the issue at hand (our like/dislike of something)
LO3: psychological factors: attitudes: define behavioural
the actions we take based on what we know and feel
LO3: psychological factors: attitudes: what should marketers do
Attitudes influences our decisions and actions and cognitive/affective can be changed through persuasive communications to influence behaviour aspect
LO3: psychological factors: perceptions: define perceptions
process by which we select, organize, interpret info to form a meaningful picture of the world
LO3: psychological factors: perceptions: how does this influence our consumption of goods
Influences consumption of goods by our tendency to assign meaning to things like colour, symbol, taste, packaging
LO3: psychological factors: perceptions: 4 components of perceptions
selective exposure, selective attention, selective comprehension, selective retention
LO3: psychological factors: perceptions: example selective exposure
when you look at news channels only but not comedy
LO3: psychological factors: perceptions: explain selective comprehension
consumers interpret marketing message in a way that is different that what marketer intends
LO3: psychological factors: perceptions: explain selective retention
consumers do not remember all the info they see/read/hear
LO3: psychological factors: learning: define learning
change in person’s thought process or behaviour that arises from experience and takes place throughout consumer decision process
LO3: psychological factors: learning: what 2 things does learning affect
attitudes and perceptions
LO3: psychological factors: lifestyle: define
way consumers spend their time and money to live
LO3: social factors: list 3 social factors
family, reference groups, culture
LO3: social factors: explain why marketers must pay attention to family
Firms must consider how families make purchase decisions and understand how various family members influence these decisions as most purchase decisions are made about products the whole family will use
LO3: social factors: define reference group
one or more persons an individual uses as a basis for comparison regarding beliefs, feelings and behaviours like families, friends, famous people
LO3: social factors: 3 ways reference groups affect buying decisions
1) offering info 2) providing rewards for specific purchasing behaviours 3) enhancing consumer’s self image
LO3: social factors: how do reference groups offer info and example
through conservation or through observation (all friends use a certain purse brand)
LO3: social factors: example of reference group providing rewards
being friendly to people with iphones
LO3: social factors: example of reference group enhancing self image
buy certain type of shoes if you want to be seen as earthy by the reference groups
LO3: social factors: define culture
shared meaning, beliefs, morals, values and customs of a group of people
LO3: social factors: define subculture
group of people whose beliefs and values are different from the rest of the larger society in which they live example: french-canadian subculture
LO3: social factors: why should marketers pay attention to culture
marketing strategies may be different in north america vs asia
LO3: 3 situational factors
purchase situation, shopping situation, temporal state (time of day)
LO3: situational factors: definition of situational factors
factors specific to the situation override (or influence) psychological and social issues
LO3: situational factors: example of purchase situation
if you like to purchase clothes at walmart but you’re attending a wedding, the situation calls for something nicer
LO3: situational factors: explain purchase situation
Your predisposition to purchase certain products due to underlying psychological/social factors may be change in certain purchase situations
LO3: situational factors: explain shopping situation - 2 points
Consumers might be ready to buy product but are derailed once they arrive in store. Marketers use various techniques to influence consumers at this stage:
LO3: situational factors: 6 techniques marketers use to influence consumers in shopping situation
1) store atmosphere
2) salespeople
3) crowding
4) promotions
5) packaging
6) in store demonstrations
LO3: situational factors: shopping situation: example of store atmosphere
relaxing atmosphere like starbucks to encourage frequent purchases
LO3: situational factors: shopping situation: example of salespeople affecting behaviour
sales people can point out advantages and encourage multiple purchases
LO3: situational factors: shopping situation: example of crowding affecting behaviour
some consumers may leave if there are too many people in the store and its uncomfortable
LO3: situational factors: shopping situation: example of in store demonstrations affecting behaviour
taste and smell of new food may attract people to buy something they normally wouldn’t
LO3: situational factors: shopping situation: example of promotions affecting behaviour
buy two get one free can influence people to buy more than they normally would
LO3: situational factors: shopping situation: example of packaging affecting behaviour
packaging can help make product stand out in an appealing and eye catching way
LO3: situational factors: explain temporal state
Our state of mind at any particular time can alter our preconceived notions of what we are going to purchase
LO3: situational factors: example of temporal state affecting behaviour
going grocery shopping before lunch when you are grumpy and hungry means you might buy more junk food than normal
LO4: 2 types of buying decisions consumers engage in
1) extended problem solving
2) limited problem solving
LO4: what does the type of buying decisions are affected by?
involvement
LO4: when is extended problem solving used?
for high priced, risky, infrequent or highly expressive purchases
LO4: when is limited problem solving used?
includes impulse buying and habitual purchases
LO4: define involvement
consumer’s degree of interest or concern about product
LO4: explain what high involvement results in
greater attention, deeper processing -> develops strong attitudes and purchase intentions
LO4: explain what low involvement results in and example
less attention, peripheral processing -> generates weak attitudes and increased use of cues (might just focus on brand name or colour in ad rather than scrutinizing all available info)
LO4: define impulse buying
decision made by consumer on the spot when they see merchandise
LO4: define habitual decision making
purchase decision process in which consumers engage with little conscious effort
lecture: explain what happens in evaluation of alternatives stage
match between consumer needs and brand attributes (i.e brand features)
lecture: explain what happens in evaluation of alternatives stage in steps
1) consumers develop list of relevant product attributes
2) assign level of importance to each attribute
3) develop beliefs of how well each brand performs on each attribute
4) evaluate alternatives and develop brand attitude
LO3: psychological factors: perceptions: define selective attention
consumers who listen to messages that are consistent with their beliefs and not others
LO2: step 3: alternative evaluation: explain attribute sets
consumer’s mind organizes and categorizes alternatives to help in decision process
