Decision Making & Influences

Question 1

What is consumer behaviour?

Answer 1

When individuals or groups select, use or dispose of products, services ideas or experiences to satisfy needs and desires

Question 2

What are the two different types of consumers?

Answer 2

• Personal: end user or whoever is going to use it

- Organisational

Question 3

Outline the consumer buyer process:

Answer 3

1. Need recognition
2. Information search
3. Evaluation
4. Purchase
5. Post-purchase evaluation

Question 4

Describe the first stage of the consumer buyer process:

Answer 4

1. Need recognition
   Need .v. want: Need: to survive. Want: like to have.

Marketers turn these wants into needs.

Functionality: does the product sere a purpose? E.g. to give energy
Psychological: Want it because it makes me feel better: holiday

Question 5

Describe the second stage of the consumer buyer process:

Answer 5

2. Information search
   Internal or external info
   The bigger/more expensive the decision the wider information search will be conduced

What is the information search influenced by? The perceived benefits .v. the perceived costs. Risks: (5 types)

Question 6

Describe the third stage of the consumer buyer process:

Answer 6

3. Alternative Evaluation
   - Determinant attributes:
   Ranking the alternatives
   - Customers evaluate products as bundles of attributes: Brand, product, aesthetics and price
   - Different customers place different levels of importance on different things

Question 7

Describe the fourth stage of the consumer buyer process:

Answer 7

4. Purchase
   - The actual transaction, there is a difference between the intention of purchase and the actual act of buying as there are things such as: unforeseen circumstances, financial constrains, change in mind, availability

Question 8

Describe the fifth stage of the consumer buyer process:

Answer 8

5. Post purchase
   - 4 Possible outcomes
6. Delight: become loyal, tell 2-3 WOM, repeat purchases very likely
7. Satisfaction: Fairly happy 1-2 WOM
8. Dissatisfaction
9. Cognitive dissonance: buyers remorse, stressful, anxious and distressful situation

Question 9

What are the constraints on decision making?

Answer 9

• The type of product or service: Is it low or high involvement
• Distribution channel
• Promotion
• Sales stuff

Question 10

What are some factors that affect decision making?

Answer 10

1. Culture: the attitudes, and values of the homogenous group
2. Subcultures
3. Opinion leaders
4. WOM
5. Psychological

Question 11

What is the family cycle?

Answer 11

It describes the changes a family passes through over their adult period

Question 12

Describe the family lifecycle:

Answer 12

Gilly & Enis, 1982
- Young couple (under 35) - Childless couple (35-64) - Older couple (64+)

Single parent / 2 parents (under 35) - parent or single (35-64)