Lecture 4

Question 1

Consumer market

Answer 1

Final consumers (individuals and households) that buy goods and services for personal consumption.

Question 2

Model of consumer behaviour

Answer 2

Stimulus Response Model:

Environment
- 7Ps
- Other

Buyer’s black box
- Buyer’s characteristics & decision process

Buyer responses
- Attitude & preferences
- purchase behaviour
- brand engagement & relationships

Question 3

Characteristics affecting consumer behaviour

Answer 3

• Cultural [culture, subculture, social class]
• Social [Groups and social networks, family, roles and status]
• Personal [Age and life cycle stage, occupation, economic situation, lifestyle, personality and self-concept]
• Psychological [Motivation, perception, learning, beliefs and attitudes]

Question 4

Cultural factors

Answer 4

• Culture
  set of basic values, perceptions, wants & behaviours learned by a member of society from a family and other important institutions
• Subcultural
  group of people with shared value systems based on common life experiences and situations
• Social class
  measured as a combination of occupation, income, education and wealth.

Question 5

Social factors

Answer 5

• Membership group
  direct influence and to which a person belongs
• Reference group
  aspirational group which an individual does not belong to but aspires to identify with
• Family
  roles within the household influence consumer behaviour
• Roles and status
  consists of activities which people are expected to perform according to the people around them

Question 6

Personal factors

Answer 6

• Occupation
  occupational groups or job roles
• Age and life stage
  demographics and life-changing events
• Economic situation
  income & savings
• Lifestyle
  person’s pattern of living, measured in terms of activities, interests & opinions
• Personality and self-concept
  unique psychological characteristics that distinguish a person or group

Question 7

Psychological needs

Answer 7

• Motivation
  needs that is sufficiently pressing to direct a person to seek satisfaction
• Perception
  process by which people select, organize and interpret information to form a meaningful picture of the world
• Learning
  changes in an individual’s behaviours arising from experience through the interplay of drive, cues, responses and reinforcement
• Beliefs and attitude
  beliefs: descriptive thought that a person holds about something
  attitude: a person’s relatively consistent evaluations, feelings, and tendencies towards an object or idea

Question 8

Motivation: Maslow’s hierarchy of needs

Answer 8

• Self-actualization needs
• Esteem needs
• Social needs
• Safety needs
• Physiological needs

Question 9

Perception

Answer 9

Selective:
- Attention
[screen out information]
- Distortion
[interpret information to in a way to support beliefs]
- Retention
[remember good points made about brands they favour and forget good points made about competiting brand]

Question 10

Learning

Answer 10

• Drive: strong internal stimulus calls for action
• Cue: minor stimuli determine persons response
• Response: cues influence responses
• Reinforcement: experience rewarding leads to reinforce [related to cue]

Question 11

Beliefs and attitudes

Answer 11

• Beliefs: Descriptive thought that a person holds about something
• Attitude: A person’s consistently favourable evaluations, feelings, and tendencies toward an object or an idea

Question 12

Buyer decision process

Answer 12

• needs recognition
• information search
• evaluation of alternatives
• purchase decision
• post-purchase behaviour