Lecture 3.1 Buyer behaviour - B2C

Question 1

Definition of consumer needs:

Answer 1

• States of felt deprivation

Question 2

Definition of wants:

Answer 2

the form human needs take, shaped by culture and individual personality

Question 3

Definition of consumer demands:

Answer 3

Human wants that are backed by buyer power.

Question 4

Definition of a customer:

Answer 4

A person or an organization that buys a product or service.

Question 5

Definition of a consumer:

Answer 5

Individuals or businesses that consume or use the goods or services.

Question 6

Definition of a consumer market:

Answer 6

all individuals and households that acquire goods and services for personal consumption.

Question 7

Buyer behaviour:

Answer 7

• A study of individuals on why they make decisions regarding purchases of goods and services.
• At its core it looks at the interplay between psychological, social, cultural and economic factors that shape consumer choices.

Question 8

Maslows hierarchy of needs consist of:

Answer 8

• Self-actualisation
• Self-esteem
• Love and belonging
• Safety
• Physiological

Question 9

Black box model of buying behaviour:

Answer 9

• Describes a customers purchasing decision in a very simplified way.
• Helps marketers understand how the environment in the consumer market affects their decisions.

Environment —> Buyers decision processing —> Buyers response.

Question 10

4 factors affecting consumer behaviour:

Answer 10

• Cultural
• Social
• Personal
• Psychological.

Question 11

Cultural factors:

Answer 11

• Culture is a set of basic values and behaviours learned through family and other important institutions.
• Subculture is a group of people with shared value systems based on common life experiences and situations.

Question 12

Social factors:

Answer 12

• May consist of social network, friends and family.

Also factors within social factors are:
- membership groups
- Aspirational groups
- Opinion leader
- Word of mouth
- Reference group

Question 13

What is a membership group?

Answer 13

A group with direct influence and to which a person belongs.

Question 14

What is an aspirational group?

Answer 14

A group to which an individual wishes they belong in.

Question 15

What is a reference group?

Answer 15

A group that serves as a point of comparison, shaping a person’s attitudes and behaviour.

Question 16

What is an opinion leader?

Answer 16

A person within a reference group which can socially influence others.

Question 17

Word of mouth:

Answer 17

More credible usually as it becomes from family and friends so can be really valuable.

Question 18

The family as a decision making unit:

Answer 18

User, initiator, influencer, decider, purchaser

Question 19

Personal factors that affect buyer behaviour

Answer 19

• Age and life stage
• Occupation
• Lifestyle
• Economic situation
• Environmental awareness
• Personality.

Question 20

5 psychological factors that affect buyer behaviour…

Answer 20

• Motivation, person seeks to satisfy their needs.
• Perception (selective attention, selective distortion and selective retention)
• Belief, is a descriptive thought that an individual holds about something.
• Attitudes, favourable feeligs towards an object.
• Learning

Question 21

5 steps to the buyer decision process:

Answer 21

1) Need for recognition: recognise problem/need

2) Information search: motivated to search for info to support their decision

3) Alternative evaluation: looks at possible other products

4) Purchase decision:

5) Post purchase evaluation: satisfied with product?

Consumers often skip or reverse this process.

Question 22

4 types of buying decision behaviour:

Answer 22

1) Complex = High involvement, significant differences between brands.

2) Variety-seeking = Low involvement, significant differences between brands

3) Dissonance-reducing = High involvement, few differences between brands.

4) Habitual = Low involvement, few differences between brands.

Question 23

Complex buying behaviour:

Answer 23

• Consumer may be highly involved when the product is expensive/risky.
• Much to learn about the product category.

Question 24

The stages in consumption process:

Answer 24

Pre-purchase issues

Purchase issues

Post purchase issues.

Question 25

Carl Rogers theory of personality: Key concepts.

Answer 25

• Rogers theory of personality emphasized the free will of human beings and their potential for goodness.
• self actualising tendencies motivate the behaviour of a person to achieve the highest level of success.
• Self concept is a conceptual pattern of values and concepts related to oneself.

Question 26

The self determination theory:

Answer 26

The theory posits 3 basic psychological needs: autonomy, competence and relatedness.

Autonomy - making decisions over your own behaviours

Competence - ability, and willingness to learn from experiences.

Relatedness - supporting relationships and providing a safe haven in times of distress.

Controlled motivation - doing something to get something, pressured possibly.

Question 27

Consumer behaviour: Selective attention.

Answer 27

• Paying attention to only certain stimuli among the external stimuli.

e.g Invisibile gorilla experiment.

Question 28

Selective distortion:

Answer 28

When consumers receive information through selective attention, they don’t accept it as it is and subjectively interpret and accept it.

Interpreting information on their own biases.

e.g Pepsi VS Coca-Cola

Question 29

Selective retention:

Answer 29

• Selectively remembering information which aligns with their beliefs and attitudes.

e.g Pareto Principle 80/20, reward programs.