Module 5 Consumer Behaviour Flashcards
What are the 5 steps in the consumer decision making process?
- Needs recognition
- Information Search
- Evaulation of alternatives
- Purchase
- Post purchase
What are the 4 types of risk in purchasing?
- Performance risk
- Financial risk
- Social risk
- Physiological risk
What are the three types of organising alternatives?
- Universal sets - all possible choices
- Retrieval sets - brands that can be readily brought forth from memory
- Evoked set - shortlist of alternative brands to consider when making a purchase decision (this is the perfect place for a brand to be)
What are determinant attributes?
- Product features that are important to the buyer
- Features on which competing brands or stores are perceived to differ
What are the consumer decision rules?
- Compensatory decision rule - consumers trade off one product characteristic over another such that good characteristics compensate for bad characteristics.
- Non-compensatory decision rules - consumers choose a product on the basis of a subset of its characteristics regardless of the values of its other attributes.
What are the 6 key psychological factors that motivate consumer choice?
- physiological
- safety
- love
- esteem
- self-actualization
What are reference groups in consumer behavriou?
Reference groups are those people an individual uses as a basis for comparison regarding beliefs, feelings and behaviours
What is culture in consumer behaviour?
Culture is shared meanings, beliefs, morals, values and customs of a group of people.
What is a reference group?
A reference group is one or more people an individual refers to for comparison regarding beliefs, feelings and behaviours.
Various reference groups including:
family,
friends,
coworkers or
famous people.
What are the 3 major ways reference groups influence buying decisions?
Reference groups influence buying decisions in three major ways:
1. offering information
2. providing rewards for specific purchasing behaviours
3. enhancing a customer’s self-image.
How do situational factors influence consumr behaviour?
The purchase situation can change psychological and social factors.
For example, if you had committed to buying a product when you discovered the store only accepted cash when you only have a card, how much would that delay, or even put-off, your buying decision?
What is involvement in consumer behaviour?
Involvement in the consumer’s degree of interest in the product.
What are the 4 types of buying decisions?
- Extended problem solving
- Limited problem solving
- Impulse buying
- Habitual decision making
When will a customer use extended problem-solving?
Occurs during a purchase decision that calls for a lot of effort and time; common when the customer perceives that the purchase decision entails a lot of risk
When will a consumer use limited problem-solving decision?
Occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. Customers engage in this type of buying process when they have had some prior experience with the product or service and the perceived risk is moderate
When will a consumer use impulse buying?
is a buying decision made by customers on the spot when they see the merchandise. (Example: Why do supermarkets stash breath mints, chocolate bars and lollies at checkout counters?)
When will a consumer use a habitual decision-making process?
this describes a purchase decision process in which consumers engage little conscious effort. (e.g. buying burgers from a fast-food drive-through).
