Lesson 1 Videos

Question 1

Buyer’s Black Box

Answer 1

The consumer’s mind

Question 2

Marketing and other stimuli enter the Black Box…

Answer 2

…the Black Box processes the stimuli and proceeded towards the Buyer’s Response step.

Question 3

Not only do we have to analyze the buyer’s response, we have to try to figure out…

Answer 3

…what’s going in the Buyer’s Black Box.

Question 4

T/F
Consumer Behavior is one of the most mysterious subjects.

Answer 4

True.

Question 5

T/F
The consumer is the center of the business universe.

Answer 5

True.

Question 6

What is consumer behavior?

Answer 6

Activities that people undertake when obtaining, consuming, and disposing of prodcts and services.

A field of study that focuses on consumer activities.

Scope goes beyond the “why” and “how”, but also “consumption analysis.”

Question 7

Consumption Analysis

Answer 7

Why and how people use products in addition to why & how they buy.

Question 8

Stimuli External Factors

Answer 8

Marketing Mix: 4 P’s (controllable factors)

Enviornmental: Economic, Technological, Political, Cultural, Demographical, Situational

Question 9

Black Box Internal Factors

Answer 9

Consumer Characteristics: Beliefs/Attitudes, Values, Knowledge, Motives, Perceptions, Lifestyle (UNcontrollable factors)

Decision Making Process: Problem solving, Information search, Alternate Evaluation, Purchase, Post Puchase, Evaluation

Question 10

Responses

Answer 10

Purchase: Product, Brand, Source, Amount, Method of Payment

OR

No Purchase

Question 11

CONSUMER INFLUENCES

Answer 11

Culture Ethnicity
Personality Family
Life-stage Values
Income Available Resources
Attitudes Opinions
Motivations Past Experiences
Feelings Peer Groups
Knowledge

Question 12

ORGANIZATIONAL INFLUENCES

Answer 12

Brand Product Features
Advertising Word of Mouth
Promotions Retail Displays
Price Quality
Service Store Ambiance
Convenience Loyalty Programs
Packaging Product Availability

Question 13

OBTAINING

Answer 13

How you decide you want to buy
Other products you consider buying
Where you buy
How you pay for product
How you transport product home

Question 14

DISPOSING

Answer 14

How you get rid of remaining product
How much you throw away after use
If you resell items yourself or through a consignment store
How you recycle some products

Question 15

CONSUMING

Answer 15

How you use the product
How you store the product in your home
Who uses the product
How much you consume
How product compares with expectations

Question 16

Why Study Consumer Behavior?

Answer 16

Marketing can be used to influence brand choice and purchase, while Demarketing can influence people to stop harmful consumption.

Question 17

Consumers are responsible for ___________ of the US’s economy.

Answer 17

70% or more

Question 18

T/F
“Only the Customer Can Fire Us All”

Answer 18

True.

Question 19

How Does Consumer Behavior Educate Consumers
About Health?

Answer 19

By understanding consumers’ issues or problems and developing methods to reach and educate consumers.

Question 20

Personal policy

Answer 20

Includes how you behave towards others and in buying situations, your values and beliefs, and how you live your life.

A person’s economic quality of life is determined by
personal policy.

Question 21

Consumer Research Methods

Answer 21

In-home observation
Shadowing
Physiological methods
Surveys
Focus Groups
Longitudinal Studies
Experimentation

Question 22

In-home observation

Answer 22

Examining how and when consumers use and consume products in their households.

Question 23

Shadowing

Answer 23

Following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors.

Question 24

Physiological methods

Answer 24

Techniques borrowed from medicine, psychology and other sciences including cameras to measure eye movement, galvanic skin response, MRI, etc.

Question 25

Surveys

Answer 25

Efficient method for gathering information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires).

Question 26

Focus Groups

Answer 26

A group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest.

Question 27

Longitudinal Studies

Answer 27

Repeated measures of activities of consumers over time to determine changes in opinions, buying, and consumption behaviors over a long period.

Question 28

Experimentation

Answer 28

Attempts to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables
- Laboratory experiment
- Field experiment
Independent variables might include number of advertisements, coupon denominations, package designs, shelf position, etc.
Dependent variables might include purchase intent or behavior.

Question 29

The Underlying Principles of Consumer Behavior

Answer 29

The Consumer Is Sovereign
The Consumer Is Global
Consumers Are Different; Consumers Are Alike
The Consumer Has Rights

Question 30

Consumer Bill of Rights

Answer 30

The right to safety: to be protected against the marketing of products and services that are hazardous to health or to life.

The right to be informed: to be protected against fraudulent, deceitful, or grossly misleading information, advertising, labeling, or other practices, and to be given the facts needed to make informed choices.

The right to choose: to have available a variety of products and services at competitive prices.

The right to be heard: to be assured that consumer interests will receive full and sympathetic consideration in making government policy, both through the laws passed by legislatures and through regulations passed by administrative bodies.

The right to education: to have access to programs and information that help consumers make better marketplace decisions.

The right to redress: to work with established mechanisms to have problems corrected and to receive compensation for poor service or for products which do not function properly.