Consumer Behaviour (Ch. 3) Flashcards
Why do we need to study consumer behavior
We need to understand consumer behaviour before we can hope to influence it: People aren’t what they eat, but they eat what they are
What are the 5 steps in the Consumer Buying Process
Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation
Step 1: Need Recognition
Define it and name sources of it
individual becomes aware of a difference between their desired state and their current condition
Sources of need recognition: inventory runs out, changing reference group, family life cycle, dissatisfaction, boredom/novelty
How can a marketing agency encourage need recognition for consumers ?
educating the consumer, remind the consumer and exaggerate the problem
Step 2: Information Search
Internal and External Sources
Personal: talking to family, friends, peers
Experiential: handling/using the product
Commercial: advertising/sales people
Public: government agencies, consumer groups
Consideration Set
the products/brands that a consumer evaluates when purchasing
What is the most influential source for a consumer in the buying process?
Internal sources such as personal and experiential because that is who the consumer trusts the most
Also, consumer reviews/reports are influential, independent and informative
Step 3: Evaluation of Alternatives
How do consumers choose from within the consideration set?
Spectrum:
LEFT: Careful calculation, logical thinking, costs/benefits analysis
RIGHT: Impulse, feeling and intuition
* Choice depends on the type of purchase
Step 4: Purchase Decision
Purchase intention becomes purchase decision when…
Purchase intention becomes purchase decision when:
- It’s easy to justify and feel approval
- No unexpected events occur (price change, stockout)
Step 5: Post Purchase Behaviour
Consumer satisfaction is a function of expectations and perceived performance
What are the 3 factors that affect the marketing mix
Situational: purchase task, physical surroundings and antecedent states
Socio-Cultural: family, reference groups
Psychological: personality, lifestyle, values, motivations
Socio-Cultural Factor
Consists of a set of basic values, perceptions, wants & behaviours, learned from family and remains stable over time
Sub-culture: religion, age, geography
What are the different types of reference groups?
Associative: group you belong to (work, school, church, age, gender
Aspirational: don’t belong to but wish to (celebrities, friend groups)
Disassociative: don’t belong or wish to belong (country music, political parties)
What categories of products do peers groups have high and low influence on?
Public luxuries: high product and brand influence (golf clubs, skis)
Public necessities: high brand influence, low product influence (car, clothes)
Private luxuries: low brand influence, high product influence (pool table)
Private necessities: low brand and product influence (milk, toothpaste)
Psychological Influence: Motivations
needs that are sufficiently pressing to direct the person to seek satisfaction of the need
- Maslow’s Hierarchy is a factor
