Topic 4: Consumer Empowerment & Behaviour

Question 1

Consumer Empowerment

Answer 1

Consumers are in control!
Consumers are empowered through the use of mobile technologies and the internet. Consumer empowerment now underpins consumer behaviour.

Question 2

Stages in the Consumer Decision-Making Process

Answer 2

1. Problem Recognition
2. Information Search
3. Alternative Evaluation
4. Purchase Decision
5. Post Purchase Evaluation

Question 3

Problem Recognition

Answer 3

Problem recognition occurs when there’s a perceived discrepancy between the consumer’s ideal and actual state.
For example: out of stock, (therefore, consumer engages in related product purchase); dissatisfaction (therefore, market-induced recognition); and new needs or wants (therefore, the consumer buys new products).

Question 4

Information Search Sources

Answer 4

• Personal sources
• Personal experiences
• Market source
• Public source

Question 5

Alternative Evaluation

Answer 5

After gathering and selecting information the consumer moves to evaluation. A set of brands with he potential to meat the consumer’s needs are identified.
These are know as the EVOKED SET. Consumers will evaluate these brands before proceeding to a purchase decision.

Question 6

Evaluative Criteria & Consequences

Answer 6

Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective.
For example, when buying a motor vehicle, consumers use OBJECTIVE attributes, such as price, warranty, and fuel economy. They will also consider SUBJECTIVE factors, including image, styling, and perceived performance.

Question 7

Purchase Decision

Answer 7

A purchase decision is NOT the same as an actual purchase. Once a consumer chooses which brand to buy, he or she must still implement the decision and make the actual purchase.
Additional decisions may be needed, such as: when and where to buy, and how much money to spend.

Question 8

Post-Purchase Evaluation

Answer 8

The consumer decision process does not end with the purchase. After the consumer compares performance with expectations and is either satisfied or dissatisfied.

Question 9

Cognitive Dissonance

Answer 9

Another possible outcome of purchase is cognitive dissonance.
Cognitive dissonance is a state of psychological tension or post purchase doubt that a consumer may experience after making a purchase decision. this tension after leads the consumer to try to reduce it by seeking supportive information.

Question 10

Maslow’s Hierarchy of Needs

Answer 10

1. Physiological (food & water)
2. Safety
3. Love & Belonging
4. Esteem
   Self-actualisation

Question 11

Three Processes of Perception

Answer 11

1. SENSATION: response of the senses (sight, sound, smell, etc.)
2. SELECTION OF INFORMATION: determines which inputs will receive attention
3. INTERPRETATION: filtering the information inputs.

Question 12

Selective Perception Process

Answer 12

Selective exposure, then
Selective attention, then
Selective comprehension, then
selective retention

Question 13

Integrated Processes & Decision Rules

Answer 13

Consumer integrate information from various sources. Integration can use complex decision rules, evaluating alternatives or attribute by attribute. Or simplified decision rules known as HEURISTICS. For example, buying the cheapest or buying the most expensive.

Question 14

Micro-Influences on Consumer Behaviours

Answer 14

Consumer learning (micro-influence) is "the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour". 
There are two basic approached: behavioural learning theory & cognitive learning theory.

Question 15

Behavioural Learning Theory

Answer 15

External environment stimuli causes behaviour.
Learning occurs either through: classical conditioning (association developed through contiguity and repetition; such as lollipops being sweat) or operant conditioning (reinforcement through shaping).
However, this theory is criticised for: being too simplistic, emphasising external stimuli, and ignoring internal processes (phycological).

Question 16

Cognitive Learning Theory

Answer 16

Cognitive learning theory is preferred by marketers. Our five-stage model of consumer decision making is based on cognitive learning theory.