consumer behaviour Flashcards
what three factors influence consumer behaviour?
1) psychological factors
2) social factors
3) situational factors
what are the psychological factors?
motives, attitude, perception, learning, lifestyle
describe motives as a psychological factor
a need or want that is strong enough to cause the person to seek satisfaction
maslow’s hierarchy of needs (bottom to top)
1) Physiological need: basic biological necessities of life - food, water, shelter
2) Safety need: pertain to protection and physical well-being
3) Love (social) needs: relate to our interactions with others
4) Esteem needs: allow people to satisfy their inner desires - being recognized (brands)
5) Self-actualization: when you feel completely satisfied with your life and how you live - making the world a better place beyond yourself
each step must be fulfilled before moving to next
describe attitude as a psychological factor
A person’s enduring evaluation of their feelings about and behavioural tendencies toward an object or idea
there are three components
1) cognitive (think): reflects what we believe is true - communicate in a way that gets the consumer to think facts, info, etc
2) affective (feel): how you make them feel, connect to emotions
3) behavioural (do): elicit a response from the consumer
describe perception as a psychological factor
The process by which we select, organize, and interpret information to form a meaningful picture of the world
describe learning as a psychological factor
Refers to a change in a person’s thought process or behaviour that arises from experience and takes place throughout the consumer decision process
describe lifestyle as a psychological factor
Refers to the way consumers spend their time and money to live
For many consumers, the question of whether the product or service fits their actual lifestyle or their perceived lifestyle
what are the 3 social factors?
family
reference groups
culture
describe family as a social factor
the entire family consumes the product/ service
describe reference groups as a social factor
One or more people an individual uses as a basis for comparison regarding beliefs, feelings, and behaviours
These reference groups affect buying decisions by:
1) Offering information
2) Providing rewards for specific purchasing behaviours
3) Enhancing a consumer’s self-image
describe culture as a social factor
The shared meanings, beliefs, morals, values, and customers of a group of people
what are situational factors
override psychological and social issues
Related to the purchase and shopping situation, as well as the temporal state
describe purchase situation
Customers may be predisposed to purchase certain products or services because of some underlying psychological trait or social factor
describe sensory situation
Store atmosphere
Salespeople
Crowding
In-store demonstrations
Promotions
Packaging
describe temporal state
A purchase situation may have different appeal levels depending on the time of day and the type of person the consumer is
Mood swings can also alter consumer behaviour
Usually beyond control
how does group buying decisions work?
initiator, influencer, decider, buyer, user
what is framing in marketing?
how info is described changes the choices/ actions
what is anchoring?
when estimating an unknown quantity, we often start with an anchor and adjust up or down
even when we know the number is irrelevant, it can influence our judgement
what is default bias?
default is the pre-selected option
people usually stick with the pre-selected option because its faster and easier
ex. in surveys
what are the 5 steps in the consumer decision making process?
1) need recognition
2) search for info
3) evaluate alternatives
4) purchase and consumption
5) post-purchase
describe step 1 in the consumer decision making process
Consumers recognize they have an unsatisfied need, and they want to go from their needy state to a different, desired state
The greater the discrepancy between the two states, the greater the need recognition will be
can be self-generated or stimuli-promoted
can be function (pertain to the performance of a product or service) or psychological (pertain to the personal gratification consumers associate with a product and/ or service
a marketer must make people dissatisfied to make a gap which they can then fix
describe step 2 in the consumer decision making process
information search
Search for information about the various options that exist to satisfy that need
there is internal info (own memory or knowledge) and external info (seek info outside their own to make the decision)
there are different factors that affect the search process
what are the factors that affect consumers’ search process
perceived benefits vs. perceived costs of search (ex. time)
Locus of control:
Internal locus of control: these people believe that they have some control over the outcomes of their actions, in which case, they generally engage in more search activities
External locus of control: consumers believe that fate or other external factors control all outcomes; believe it doesn’t matter how much information they gather
Actual or perceived risk:
Performance risk: involves the perceived danger inherent in a poorly performing product or service
Financial risk: risk associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service
Social risk: involves the fears that consumers suffer when they worry that others might not regard their purchases positively
Physiological risk (safety): the fear of actual harm should the product not perform properly
Psychological risk: associated with the way people will feel if the product or service does not convey the right image
level of involvement :
extended problem solving = low knowledge, high involvement
routine problem solving = high knowledge, low involvement
product type
(specialty, shopping, convenience, unsought)
what implications does extended problem solving on marketing?
- educate consumers on product and attributes
- demonstrate how company’s brand performs
what implications does routine problem solving on marketing?
- use ad repetition to create familiarity
- encourage trial use with sales promotions
- take good shelf space (convenient)
what are the four types of products?
specialty: high preference, not willing to substitute, willing to pay premium, limited supply, high price, and exclusive
shopping: have a preference but willing to substitute
convenience: no preference, just convenience
unsought: don’t want to buy, don’t know a lot about, forced to buy
describe step 3 in the consumer decision making process
alternative evaluation
Alternative evaluation often occurs when consumers are engaged in the process of information search
what are retrieval sets?
brands or stores that can be readily brought forth from memory
what are evoked sets?
include only the brands or stores considered when making a purchase decision
Evoked set = increased likelihood of purchase and therefore reduced search time
what is evaluative criteria?
consist of a set of important attributes about a particular product that are used to compare alternative products
what are determinant attributes?
products or service features that are important to the buyer and on which competing brands or stores are perceived to differ
what are the decision rules?
compensatory: has the best balance of features
conjunctive: has no bad features
lexicographic: scores highest on my most important feature
affect referral: i just kind of liked it (gut feeling)
brand loyalty: is my fav brand
describe step 4 in the consumer decision making process
purchase decision and consumption
Retailers have to turn to the conversion rate to measure how well they have converted purchase intentions into purchases
once a consumer has decided on a product, make it easy to buy
Situation factors can help facilitate purchases: having merchandise in stock, offering multiple payment options, having many checkout lanes open and placing the checkouts conveniently in the store, installing digital displays to entertain customers waiting in line, and offering tactics such as delivery, price-match, warranty, or a simple return policy
describe step 5 in the consumer decision making process
post-purchase
Marketers are particularly interested in postpurchase behaviour because it entails actual, rather than potential, customers
want brand loyalty and good word of mouth
compare actual experience with expectations
satisfaction = performance - expectations
3 possible outcomes:
1) customer satisfaction
2) post-purchase dissonance: Internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour ; Feeling regret or guilt
3) customer loyalty: Develops over time with multiple repeat purchases of the product or brand from the same marketer
