consumer behaviour

Question 1

What is the model for buyer behavior?

Answer 1

1. Marketing and other stimuli:
   a. Marketing: product, price, place, promotion
   b. Other: economic, technological, political, cultural
2. Buyer’s black box: characteristics + decision processes
3. Buyer’s responses: product choice, brand choice, dealer choice, purchase timing, purchase amount

Question 2

What are the factors influencing consumer behavior

Answer 2

1. Cultural: culture, sub-culture (nationality, ethnicity), social class (occupation, income)
2. Social: reference groups, family, roles and status
3. Personal: age and life cycle, occupation, economic situation, lifestyle, personality and self-concept
   a. SRI Values and Lifestyles (VALS): Actualizer vs Struggler (resources/innovation)
4. Psychological: motivation, perception, learning, beliefs and attitudes
   a. Maslow’s hierarchy: physiological → safety→ social → esteem → self-actualization

Question 3

What are the types of buying decision behaviour

Answer 3

Complex: high involvement, large diff between brands

Variety seeking: low involvement, large diff between brands

Dissonance reducing: high involvement, few diff between brands

Habitual: low involvement, few diff between brands

Question 4

What are the factors determining level of involvement for buyers in decision behavior?

Answer 4

i. Previous experience
ii. Interest
iii. Perceived risk of negative impact
iv. Situation
v. Social visibility

Question 5

What is the buyer decision process?

Answer 5

Need recognition
information search (personal, commercial, public, experiential)
Evaluation of alternatives
Purchase decision →
Post-purchase behaviour (cognitive dissonance: consumer’s expectations vs product’s perceived performance)

Question 6

What is the buyer’s adoption process?

Answer 6

1. Awareness: but lack info
2. Interest: seek info
3. Evaluation: consider trying product
4. Trial: try on small scale
5. Adoption: regular use

Question 7

What are the factors affecting rate of adoption for the buyer?

Answer 7

communicability of pdt
divisibility of pdt
complexity of pdt
relative advantage vs competition
compatibility with market