consumer behavior Flashcards
Consumer decision-making
4 types of decisions a consumer in hospitality must make +Financial allocation How to spend the money we have available +Outlet / store patronage the distributions channels – TV , Mail deliver, retail stores, Internet etc. +Product purchase or not Made with respect to individual products or between competing purchases (Cola or Pepsi?) +Brand / style choice the specifications of the goods and services chosen
consumer decision-making
A final definitive solution in a problem solving process; act of choice - sequence of activities - decision
3 types of decision-making
+ Extensive problem-solving: effort, takes time and is complex evaluation + Limited problem solving consumer is unfamiliar with specific brands, styles, options or choices + Routine behavior Consumers understand a service offered Consumers are aware of options Consumers have developed likes and dislikes Consumers undertake limited information searches Decisions are reached quickly
Pre-purchase, purchase and post-purchase (stages)
+Identify the problem/need (motivation) INTERNAL: Previous experience stored in our memory may be suitable for similar decisions EXTERNAL: Media, conversations, observations, etc. +Clarify the goal /criteria for the outcome/info search +Evaluate the potential outcomes/choices +Definitive choice of action Satisfaction – Customers expectations are met: Reinforces positive attitude towards the product which increases the likelihood of repeated consumption Post-purchase dissonance: when consumers are insecure about their decision
Consumer Behavior
Individuals or groups acquiring, using and disposing of products, services, ideas, or experiences
Circle of Consumption
Production Acquisition Consumption Disposal
consumer behavior growth
+ Economy: Growth/Decrease GDP—> Political implications
+ Growth of youth market: Generation Y
+ Technological Change: Digitalization / Marketing
+ Social Change: focus on consumption
+ Mass media: Advertising
+ Facilitating Means: mail orders, credit cards, online booking growth.
+ Globalization: Corporations etc.
Different types of consumers
+ Economic consumer: rational decisions, analysis of potential benefits and losses. + Behavioral consumer: response to stimulus,relationship between experience and subsequent behavior + Experiential Consumer: choice, decision, learning.
role of consumer behavior
+ Producing/ Consuming + influence on business + Competitive advantage
goods and services
+ Goods are tangible objects + Services are acts of processes + Services are rented + Goods are possessed
Intangibility
unable to touch an item. Mental difficulty in accepting a concept/idea.
Decision making process
Environmental influences on cinsumer behavior
+ Culture
+ Ethnicity
+ Social Status
+ Personal Influences
+ Family & Other Groups
+ Situation
Culture Characteristics in relation to consumer behavior?
+ learned since childhood, process of education
+ behavior: ways of acting
+ difficult to change: (generation to generation)
+ dynamic; change/ adjust to reflect on society
+ differentiate from one another culture
Dimensions of culture characteristic on customer behavior
- Individualism vs collection
- uncertaininty in avoidance (accepting rules/customs)
- Power distance: centralization of power
- Masculinity : achievement, acquisition, assertiveness
vs
Femininity: concern, community, nurtuting
factors that influence cultural values
+ product as social status (prestige)
+ product as self-expression (personality, individual)
+ product as sharing experience ( social occasions, events)
+ products are self indulgent(hedonistic) (effects consumer values)
+ experiential: reminds of previous experiences
Subcultures
+ Age
+ Geography
+ Ethnicity
+ Religion
Social class
+ Economic (Occupation, increases wealth)
+ Interaction ( socialization, personal brand)
+ Political ( power, mobility, class consciousness)
factors for prestige for product
+ Exclusivity: Hockey, wimbledon
+ Expensive
+ Qualtiy: Forest more health club
+ limited: Lamborghini
+ Respect: Brand
Types of group influences on hospitality consumers
- Primary group: most closely related (family, colleagues)
- Secondary groups: shared interest (sports, etc.)
- Aspirational Groups: aspire to belong to one, behavior, motivational
- Dissociative: avoid being associated with cinsumer behavior impact i.e. bar/restaurants
- Formal groups: membership, rules, formal clubs.
- Informal groups
- Automatic groups: age, gender, education, social class
type of influence by individuals or family
INDIVIDUALS:
- individual’s value system
- intensity to confront
- Commitment to groups
- value of individualtiy
FAMILY:
- Continuous decision
- Private decisions
- Family consumption is not made individually
- multiple choice
- families differ from each other
motivation according to maslow
- self actualization: achieving one’s full potential
- esteem needs: prestige and feeling of accomplishment
- belongingness and love needs: intimate relationships, friends
- safety needs: security, safety
- physiological needs: food, water, warmth, rest.
explain conscious and unconscious motivation
Conscious Motivation:
+ Knowing that you are motivated to do something
+ Choosing to do something and knowing exactly why you want to do it.
Unconsciou motivation:
+ Wanting to do something but being unaware why you want to do it.
+ Engaging in an activity and not knowing why you participated in it
factors of involvement
- Antecedents:
+Person: refer to presonal needs, values, interests and experiences.
+Product: refers to something that the person may be closely related to
- Properties:
+Intensity: severity of involvement (High/Low)
+Direction: focu of involvement (product, service, etc.)
+Persistence: length of time consumer remains involved with purchase decision
- Involvement Outcome: Concerns how a consumer behaves under different intensity. forms a pattern.
factors influencing learning
- Beliefs: the belief that one puts into a product while leaning about it
- Knowledge: the power to gain as much as possible about the product
- Feelings: the feeling about the product use…good/bad
- Attitude: attitude of onself towards the product positive/negative
factors influencing risk and perception
- Performance: refers to the workforce and whether the rsults will be seen
- Financial: how much money to invest and take a chance to reap returns
- Physical:
- Time: the duration in which the returns will turn to profit
- Social: is the product user friendly and will it be accepted
- Psychological:
