lecture 5 - consumer behaviour

Question 1

what is consumer buyer behaviour?

Answer 1

Kotler and Keller (2011) state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants.

Question 2

From a marketers point of view, what are the specific aspects of consumer behaviour that need to be studied?

Answer 2

• reasons behind consumers making purchases
• specific factors factors influencing the patterns of consumer purchases
• analysis of changing factors within the society and others

Question 3

what is consumer behaviour?

Answer 3

The dynamic interaction of affect, cognition and behaviour and the environment by which human being conduct the exchange aspects of lives. (American Marketing Association)

Question 4

What is the environment?

Answer 4

includes situation and shopping context
micro, macro and competitive environment

Question 5

what is the ABC model of attitudes?

Answer 5

Attitude (overall evaluation) towards composting

Affective (feelings & emotions) “composting is important to me”

behavioural (past & future activity) “I compost whenever I go”

Cognitive (thoughts & beliefs) “composting reduces CO2 emissions”

Question 6

what are the types of consumer studies?

Answer 6

B2B (business-to-business) - study of the behaviour of organisational buyers

B2C (business-to-consumers) - study of the behaviour of end consumers

C2C (consumer-to-consumer) - study of the peer-to-peer marektplace (e.g. eBay, Etsy)

Question 7

how do we understand consumer behaviour?

Answer 7

consumer behaviour =
HOW

-consumers make purchase decisions

-consumers use and dispose of product

Question 8

why study consumer decision process?

Answer 8

understanding the consumer, or buyer decision process will enable marketers to set a marketingt plan that convinces them to purchase the product or service for fulfilling the buyer’s or consumer’s problem

Question 9

what is the model of consumer decision making?

Answer 9

input
process
output

Question 10

what is considered input in the model of consumer decision making?

Answer 10

firm’s marketing efforts
1. product
2. promotion
3. price
4. channels of distribution

sociocultural environment
1. family
2. informal sources
3. other noncommercial sources
4. social class
5. subculture and culture

Question 11

what is considered process in the model of consumer decision making?

Answer 11

need recognition
prepurchase search
evaluation of alternative

experience

psychological field
1. motivation
2. perception
3. learning
4. personality
5. attitudes

Question 12

what is considered output in the model of consumer decision making?

Answer 12

postdecision behaviour

purchase
1. trial
2. repeat purchase

postpurchase evaluation

Question 13

what are the consumer decision-making strategies

Answer 13

cultural, social, individual and psychological factors affect all steps
- need recognition
- information search
- evaluation of alternatives
- purchase
- postpurchase behaviour

Question 14

what is need recognition

Answer 14

results of the imbalance between the present state and preferred state

Question 15

what is need recognition?

Answer 15

recognition of a need occurs when a customer is faced with a problem

Question 16

what are the two different problem recognition styles among consumers

Answer 16

actual state types - consumers who perceive that they have a problem when a product fails to perform satisfactorily. Another product seems superior to the one currently used. When the consumer is running out of a product

desired state types - the desire for something new may trigger the decision process

Question 17

what are the levels of consumer decision making

Answer 17

not all consumer decisions receive or require the same amount of effort

researchers have identified three specific levels of consumer decision making:
1. extensive problem solving
2. limited problem solving
3. routinized response behaviour

Question 18

what is the level of involvement in the types of consumer buying decisions

Answer 18

extensive problem solving - more involvement

limited problem solving

routinized response behaviour - less involvement

Question 19

what is routinized response behaviour

Answer 19

At this level, consumers have some experience with the product category and a well-established set of criteria with which to evaluate the brands they are considering.
They may search for a small amount of additional info
routinized response behaviour implies little need for additional info

example: regular day-to-day purchases

Question 20

what is limited problem solving?

Answer 20

At this level, consumers have already established the basic criteria for evaluating the product category but haven’t established preferred categories

Their search for additional info is more like “fune-tuning”: they must gather additional brand info to discriminate among the various brands

Example - usually used when purchasing a new, updated version of something. Replacing something old with something new

Question 21

what is extensive problem solving?

Answer 21

When consumers have no established criteria for evaluating a product, or have not narrowed their choices, then they are in extensive problem solving

At this level, the consumer needs a great deal of info to establish a set of criteria on which to judge specific brands and a correspondingly large amount of info concerning each of the brands to be considered.

Example - used while buying expensive, important or technically complicated product or services

Question 22

what factors are likely to increase pre-purchase search?

Answer 22

product factors

situational factors:
- experience
- social acceptability
- value-related considerations

consumer factors:
- demographic characteristic
- personality

Question 23

what is involved with the pre-purchase information search?

Answer 23

internal info search:
- recall information in memory

external info search:
- seek info outside environment
- non-marketing controlled
- marketing controlled

Question 24

what are the market dominant sources of information

Answer 24

-advertising
-salespeople
-influencers
-infomericals websites
-point-of-sales materials

Question 25

what are the non-market dominant sources of information?

Answer 25

-friends
-family
-opinion leaders
-social media

Question 26

how do we evaluate alternatives?

Answer 26

1. determine criteria to be used for evaluation of products
2. assess the relative importance of each criteria
3. evaluate each alternative based on the identified criteria

Question 27

what is involved in the evaluation of alternatives?

Answer 27

evaluation of products

analyse product attributes

use cutoff criteria

rank attributes by importance

evoked set
->
purchase

Question 28

what are the types of criteria/information used by consumers when evaluating potential alternatives?

Answer 28

the evoked set - refers to the specific brands the consumer considers in making a purchase in a particular product category

the inept set - consists of brands the consumer excludes from purchase consideration as unacceptable

the inert set - those brands to which the consumer is indifferent because they are perceived as having no advantage

Question 29

what are the types of purchasing strategy?

Answer 29

9/10 shoppers who go to the shop for frequently purchased items have a specific shopping strategy for saving money

practical loyalists - look for ways to save on those brands and products they would buy anyway

bottom-line price shoppers - buy the lowest-priced item, with little or no regard for brand

opportunistic switchers - use coupons or sales to decide among brands and products that fall within their evoked set

deal hunters - look for the best “bargain” and are not brand-loyal

Question 30

what is involved in post-purchase behaviour?

Answer 30

cognitive dissonance
-did I make a good decision?
-did I buy the right product?
- did I get a good value?

marketing can minimise through:
-effective communication
-follow-up
-guarantees
-warranties

Question 31

what is involved with post-purchase evaluation?

Answer 31

as consumers use a product, they evaluate its performance considering their own expectations.

Question 32

what are the 3 possible outcomes of customer evaluation post-purchase?

Answer 32

actual performance matches the standard, leading to a neutral feeling

positive disconfirmation when the performance exceeds the standard

negative disconfirmation when the performance is below the standard