Introduction

Question 1

Define Consumer Behaviour

Answer 1

the study of the processes involved when individuals or groups SELECT, PURCHASE, USE, or DISPOSE of products, services, IDEAS, or EXPERIENCES to satisfy NEEDS and DESIRES

Question 2

Who are the 3 actors of the consumption process?

Answer 2

1. purchaser
2. user
3. influencer

Question 3

What is the difference between a purchaser and a user?

Answer 3

A purchaser is one who buys the product, but may not be the end consumer (retail store, parent); a user is the end consumer

Question 4

Who would be considered an influencer?

Answer 4

Real estate agent, investment advisor, interior designer, children

Question 5

What are the segments marketers can use to identify their customers?

Answer 5

1. demographics (age, gender, income, etc.)

2. psychographics (lifestyles, personality)

Question 6

What is a major difference between market-driven and market-driving?

Answer 6

Market driven is reactive, market driving is innovative

Question 7

What is an example of a market-driving company? Market-driven company?

Answer 7

driving - Apple

driven - Microsoft

Question 8

What are some examples of building lifetime relationships between a brand and a consumer?

Answer 8

• cost efficiencies (repeat customer)
• increased share of wallet
• new product innovations (greater customer insights)
• increase WOM

Question 9

How are brands related to status?

Answer 9

luxury items are status symbols that help us define our social standings and class

Question 10

What is the relationship between brands and culture?

Answer 10

• Brands use popular culture to advertise
• Web 2.0 is allowing consumers to share opinions on products
• brands help to create bonds with others who use the same products

Question 11

Do marketers manipulate consumers?

Answer 11

no, they do not have the information to manipulate consumers

Question 12

What is the goal of advertising?

Answer 12

To create needs (not wants)

Question 13

What do consumers think about ethical behaviour?

Answer 13

• because of our Web 2.0 capabilities, consumers demand a high standard of ethics from companies
• consumer activism

Question 14

What is the economics of information perspectve?

Answer 14

advertising helps consumers reduce their search time and costs by creating awareness

Question 15

What is the dark side of consumer behaviour?

Answer 15

when consumer desires do not result in positive consequences

Question 16

What are some examples of the dark side of consumer behaviour?

Answer 16

• consumer addiction: drinking, gambling, shopping, technology
• compulsive consumption: impulsive buying that centres on the process of buying

Question 17

What is shrinkage?

Answer 17

reduction in products due to shoplifting and employee theft

Question 18

What is anti-consumption?

Answer 18

product tampering, graffiti on buildings, products destroyed