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Consumer Behaviour Flashcards

1
Q

What is Consumer Behaviour

A

The study of the processes that people use to choose, purchase, consume, and dispose of goods with value (products, services, ideas or experience) to satisfy their needs, and the impacts that these processes have on consumer and society.

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2
Q

What is Motivation

A

Processes that cause people to behave as they do. To understand motivation is to understand why consumers do what they do

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3
Q

What are the motivation for Silent (vs. Loud) Luxury Products

A
  • Purchasing quality products without attracting attention and demonstrating wealth
  • Signalling status to in-group consumers, who would know the product is from a luxury brand despite it being silent
  • Belonging to a social group
  • Being dissociated from a group of consumers who prefer loud luxury products
  • Keeping up with the recent trends (e.g., silent luxury)
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4
Q

What are the preferences for Flamboyant (vs. Classical) Models of luxury Products

A
  • Showing expertise in fashion (i.e., self-expression)
  • Standing out and being unique
  • Signalling wealth (i.e., abundance of resources)
  • Attracting attention
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5
Q

The motivation process starts with what type of need

A
  • Utilitarian needs: A functional or practical need
  • Hedonic needs: An experiential need involving emotional responses
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6
Q

What is a Need

A

A discrepency between the present and ideal state

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7
Q

What is a want

A

A form of consumption used to satisfy a need (ex: i need food, I want a pizza)

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8
Q

What is Maslow’s Hierarchy of Needs

A

Self-Actualization (achieving one’s full potential)
Esteem needs (prestige and feeling of accomplishment)
Belongingness and love needs (intimate relationships)
Safety need (security, safety)
Physiological needs (food, water)

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9
Q

What is Myrray’s Theory on Psychogenic Needs

A
  • Ambition Needs (achievement, exhibition, recognition)
  • Materialistic Needs (acquisition, order ,retention)
  • Power Needs (dominance, autonomy, aggression, harm avoidance)
  • Affiliation and Information Needs (affiliation, change, assistance)
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10
Q

Consumer’s Buying Motives (Copeland)

A
  • Instinctive Buying Motives (distinctiveness, emulation, social achievement)
  • Emotional Buying Motives (pride in appearance, expression of artistic taste, personal comfort)
  • Rational Buying Motives (handiness, durability, effectivness)
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10
Q

What are Antecedents of motivational strength

A
  • Degree of tension (between the current and ideal state)
  • Positive incentives (extrinsic motives)
  • Importance and urgency (of the need)
  • Availability and resources (to satisfy the need)
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10
Q

What are the 3 motivational Conflicts

A
  • Approach-Approach Conflict (ex: getting pizza or a burger)
  • Approach-Avoidance Conflict (ex: you want to go to a party but you have an exam the next day)
  • Avoidance-Avoidance Conflict (ex: studying or cleaning the apartment)
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11
Q

What factors influence consumer involvment

A
  • Individual Differences (need, personal interest and/or values)
  • Stimuli factors (information source and content)
  • Situational factors (consumption context, risk associated with purchase)
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12
Q

Strategies to Increase Involvement

A
  • Novel and prominent stimuli
  • Celebrity endorsers
  • Consumer-generated content
  • Mass customization
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13
Q

What are the 2 dimensions of Affect

A
  • Moods (temporary positive or negative states accompanied by moderate levels of arousal)
  • Emotions (intense and discrete states that are often related to a triggering event)
    These 2 states can affect purchases
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14
Q

What are the Discrete Emotions

A
  • Happiness
  • Guilt
  • Fear
  • Disgust
  • Embarrassment
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15
Q

What is Self-Concept

A

The Beliefs a person holds about his or her own attributes

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16
Q

What are the different stages of self-concept (5)

A
  1. Real Self: This includes certain personality traits and characteristics, beliefs about their appearance, and certain concepts that help them define who they are
  2. Ideal Self: How a person ideally wants to see themselves
  3. Self-Esteem: Positive (or negative) attitudes toward self
  4. Self-Consciousness: Degree to which one cares about how others view one’s self
  5. Self-Expression: How people communicate their self-concept to others through their behaviours, choices, and consumption patterns
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17
Q

What are the 2 concepts of self-completion

A
  1. Symbolic self-completion: Completing one’s identity by acquiring and displaying symbols that one associates with that particular role
  2. Compensatory consumption: Refers to compensating by something a one is lacking by consumption decisions
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18
Q

What is trait theories of personality

A

Quantitative measurement of traits (identifiable characteristics that contribute to defining a person’s personality)
such as
- Openness
- Conscientiousness
- Extraversion
- Agreeableness
- Neuroticism

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19
Q

What is brand personality

A

A set of traits poeple attribute to a brand as if it were a person such as :
- Sincerity (Toms)
- Excitement (Red-Bull)
- Competence (Tide)
- Sophistication (Louis Vitton)
- Ruggedness (Harley-Davidson)

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20
Q

What strategies can a brand use to directly shape their brand’s personality (2)

A
  1. Association with individuals (so that the personality of the individual spills over to the brand to create a similar personality)
  2. Anthropomorphism (where brands use human-like characters representing their brands with distinct personalities to create or enhance their brand’s personality)
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21
Q

What if Lifestyle

A

Patterns of consumption reflecting a person’s choice of how they spend time and money such as:
- Interest
- Activities
- Opinions

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22
Q

What are values

A

Lasting beliefs on what is good vs. bad. Beliefs that some conditions is preferable to its opposite.
Values such as :
- Family
- Health
- Happiness
- Freedom
- Wisdom
- Achievement
- Social equality
- etc.

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23
Q

What is Attitude

A

A lasting evaluation of concepts (ex: people, brands, product categories, social issues, etc.)

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24
Q

What are the 4 Functions of Attitudes

A
  • Utilitarian Function: Allow people to attain rewards and avoid punishments
  • Knowledge Function: Allow people to understand and make sense of their environment, thus help them organize and structure their lives
  • Value-Expressive Function: Allow people to communicate who they are and assert their identity
  • Ego-Defensive Function: Allow people to protect their self-esteem by helping them justify their behaviour that may otherwise be unacceptable
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25
Q

What is the ABC model of attitudes

A
  • Affect: the way one feels about the concept
  • Behaviour: Intentions one has toward the concept
  • Cognition: What one thinks/knows about the concept
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26
Q

What is the Consistency Principle

A

This suggests that consumers have a need to be consistent in the way the feel, behave, and think about a concept.

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27
Q

What is Cognitive Dissonance

A

The tensions people experience when there is a conflict between their behaviour and their cognition (beliefs)

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28
Q

What are the 3 strategies to reduce dissonance

A
  1. Stop behaviour
  2. Change the belief
  3. Introduce new information that is consistent with the behaviour
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29
Q

What is Balance Theory

A

Considers relations among elements that a person might perceive as belonging together.

30
Q

What is Multi-Attribute Model

A

Consumers form attitudes about a concept (ex: product) based on its attributes they consider to be important

31
Q

Can attitudes Predict Actual Behaviour

A

If an attitude is formed through high involvement or direct experience it is likely to predict actual behaviour especially when its specific and accessible.

32
Q

What situation have a positive attitude but doesn’t predict actual behaviour

A
  • Situation factors: you may have a positive attitude towards a product but you may not have the money to purchase it
  • Normative influence: you may have a positive attitude towards a brand but your friend thinks its uncool so you dont purchase it
  • Individual differences: if you have a high need for consistency, you may not switch to another brand because you want to be consistent despite having a more positive attitude to this brand then your current one.
33
Q

What are the 6 Principles of Persuasion

A
  1. Reciprocity: people have a tendency to reciprocate the favours that are done to the
  2. Scarcity: Items become more valuable and desirable when they are less accessible
  3. Consensus: People often decide what to do or how to behave by looking at what others have done
  4. Consistency: People have a strong desire to be consistent with their previous opinions, commitments, and actions
  5. Liking: People are more easily influenced by those they like
  6. Authority: People are more easily influenced by those they perceive to be legitimate authorities
34
Q

What are the steeps of the Consumer Decision Making Process

A
  • Need Recognition: starts when consumer recognizes a need
  • Information Search: Consumer engages in information search, which could be internat or external
  • Evaluation of Alternatives: Consumers find a consideration set, which includes all the options that have a non-zero chance of being purchased.
  • Purchase: customers use heuristics (mental shortcuts) or the category leaders to make a purchase decision
  • Post-purchase Evaluation: Satisfaction (performance vs expectations), cognitive dissoncane (conflict between behaviour and beliefs)
35
Q

What sensory stimuli influences consumer behaviour

A
  • Sights
  • Sounds
  • Smells
  • Tastes
  • Touch (Textures)
36
Q

What is Elongation Bias

A

Taller of two objects will appear bigger despite their volumes being equal

37
Q

What is Scent-based memory

A

Humans have a very strong scent-based memory: memories that are associated with scent are long lasting and easy to retrieve.

38
Q

How can smell influence consumer behaviour?

A
  • Odours are know to stir emotions, evoke memories and influence moods.
  • Given that scents may be associated with certain concepts, consumers may make inferences ab out a product’s unobserved qualities based on its scent (ex: citrus scents are strongly associated to cleaning products).
39
Q

What is the effect of mere touch on Consumer Behaviour

A
  • Touch in interpersonal communications to signal closeness (ex: a friendly touch from a waiter on the shoulder can increase tips significantly)
  • Accidental Touch in a retail setting can cause a decrease in sales.
  • People are also lees likely to purchase a product from a disorganized setting
40
Q

How can sound influence consumer behaviour?

A
  • Ambient sound could influence consumer behaviours in a store setting (ex. slower music produces slower shopping which increases the chances of more sales).
41
Q

What are the main components of the perceptual process?

A
  • Exposure (when a stimulus enters the range of an individual’s sensory receptors)
  • Attention (Extent to which the brain’s processing activity is devoted to a stimulus)
  • Interpretation (Meanings people assign to sensory stimuli)
42
Q

What are the 2 sensory thresholds in Exposure

A
  • Absolute Threshold (minimum amount of stimulation that can be detected on a sensory channel)
  • Differential Threshold (ability of a sensory system to detect changes within or between stimuli)
43
Q

What factors do we pay attention to?

A
  • Personal factors (perceptual filters, perceptual vigilance, perceptual defense, adaptation)
  • Stimulus factors (size, colour, position, novelty)
44
Q

What mental schemas (provide a cognitive framework that helps organize and interpret information) do consumers use to interpret sensory stimuli?

A
  • Expectations
  • Knowledge and beliefs
  • Past experience
  • Environmental factors
  • Contextual factors
45
Q

What are Reference Groups?

A

An individual or a group conceived of having significant relevance upon an individual’s evaluations, aspirations, and/or behaviour.
- Membership RG
- Aspirational RG
- Dissociative RG

46
Q

What is a membership Reference group?

A
  • They involve others who belong to the same group as a consumer (the consumer is a member of the group). This could be one’s parents, friends, fellow citizens, classmates, colleagues, fans of a same sport team, etc.
47
Q

What are Aspirational Reference Groups?

A
  • Consists of people who idealized, aspired figures, which could be athletes, artists, social media influencers, actors/actresses, and/or politicians, etc (and the consumer is not a member of this group).
48
Q

What is a dissociative reference group?

A
  • Consumers avoid being associated with (ex: people who support a political ideology that one is against, fans of rival teams, etc.)
49
Q

What are the different Types of RG Influence?

A
  • Informative (When RGs act as a source of information)
  • Normative (When RGs help define the basic code of conduct to be a part of the group)
  • Comparative (When RGs acts as a benchmark for comparison)
50
Q

What is conformity?

A

A change in beliefs or actions as a reaction to real or imagined group behaviour

51
Q

Why do we Conform?

A
  • Fear of Deviance
  • Group Commitment (following the group, trusting group judgement, etc.)
  • Environmental Cues (group size, group expertise, etc.)
  • Individual Differences/ Cultural pressures
52
Q

What is Culture?

A
  • Accumulation of shared values, norms, rituals, and meaning among the members of an organization or a society.
  • Culture is the personality of a society
53
Q

What factors vary Across Cultures

A
  • Values
  • Norms
  • Rituals
  • Language and Symbols
54
Q

What are the 6 dimensions of Value?

A
  • Power Distance Belief: The extent to which the members of society accept and expect that power is distributed unequally
  • Individualism/ Collectivism: The extant to which the members of a society prioritize individual goals or group interests
  • Uncertainty Avoidance: The extent to which the members of a society tolerate uncertainty and ambiguity
  • Femininity/ Masculinity: The extent to which the members of a society values traits traditionally associated with men or women
  • Long-Term Orientation: The extent to which the members of a society are focused on obtaining gains in the short term or in the future
  • Indulgence: The extent to which the members of a society consider gratification of hedonic desires as free
55
Q

What is the Power Distance belief (PDB)?

A

The extent to which the members of a society accept and expect unequal distribution of power
- Inequality is considered a normal part of society
- Less egalitarian
- More hierarchical relationships

56
Q

What is Individualism/ Collectivism?

A

The extent to which the members of a society prioritize individual or group interests
- More importance is given to collective (vs. personal) goals
- Less likely to change group membership
- More connected to social networks, which are a significant part of self-concept

57
Q

What is Uncertainty Avoidance (UA)?

A

The extent to the members of a society tolerate uncertainty and ambiguity
- Tend to avoid uncertainty and ambiguity
- Need for rules and structures
- Less tolerance for unorthodox behaviour

58
Q

What is Femininity/ Masculinity?

A

The extent to which a society values traits traditionally associated with men or women
- “Traditionally feminine” traits such as modesty, compassion, nurturance, and empathy are valued more then “traditionally masculine” traits such as dominance, power, competitiveness, ans assertiveness

59
Q

What is Long-term Orientation?

A

The extent to which people are focused on obtaining gains now or in the future
- More focus on long-term consequences
- Value future rewards, perseverance, and thrift

60
Q

What is Indulgence/ Restraint?

A

The extent to which a society allows free gratification of basic human desires
- Supportive of fulfilling hedonic desires
- Lower regulation on gratification of hedonic desires

61
Q

What are Norms?

A

Rules dictating what is right or wrong, acceptable or unacceptable

62
Q

What are Rituals?

A

Activities that occur in a fixed sequence and that tend to be repeated periodically

63
Q

Why are Language and Symblos important?

A

Some symbols, colours, and language have different meanings in different parts of the world so its super important to be aware of that before releasing a marketing campaign or a product,

64
Q

What is the difference between Standardization vs Localization Marketing strategies?

A
  • Standardized marketing strategy (using the same marketing strategy around the world)
  • Localized marketing strategy (customizing marketing activities in each country/culture)
  • A brand should do deep-cross cultural analysis to understand which strategy is better to use.
65
Q

What are Subcultures?

A

A group whose members share beliefs and common experiences that set them apart from other within a broad culture
Subcultures can be :
- Age (Generation, Age Cohorts)
- Regions
- Ethnicity (a group of people sharing common cultural and/ or genetic ties.

66
Q

What are Microculture’s?

A

Small groups of people with common lifestyle and/ or aesthetic preference
- Ex: fans of a sports terms, video game, movie, brand, etc.

67
Q

What is Word-of-Mouth (WOM) Communication?

A

WOM communication is product information transmitted by individuals to individuals. WOM is far more powerful than any marketing strategy. It influences 2/3 of all consumer sales.

68
Q

What motivates WOM communication (5)

A
  • Impression Management: for self-enhancement, identity-signalling
  • Emotion Regulation: for venting, taking vengeance, reducing dissonance, generating support
  • Social Bonding: reinforcing shared values, reducing loneliness
  • Informing Others: help others make better decisions, resolve problems
  • Persuading Others
69
Q

What are the potential benefits of Influencer Marketing?

A
  • Opinion leaders (strong influence on followers)
  • High credibility (perceived similarity, authenticity)
  • Budget-friendly (compared to celebrities and other mediums like TV ads)
  • Efficient access to niche segments
  • Builds an online community
70
Q

What are the possible negative aspects of Influencer Marketing?

A

May backfire if:
- Suspicion of ulterior motives (getting pais, reciprocity)
- Tainted authenticity (fake followers, posting way too many brand-created content)
- Low with the business domain of the brand

71
Q

Go and look at The elaboration Likelihood Model

A

Session 8 last slide

72
Q

What is the Customer Journey Map (CJM)

A

A diagram that illustrates the steps customers go through in engaging with a company, wether it be a product, an experience, a service or any combination

73
Q

What are Touchpoints?

A

Any interaction point between the customer and the brand

Consumer behaviour (1 decks)

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