Topic 4: Consumer market

Question 1

Consumer buyer behavior

Answer 1

Consumer buyer behaviour is the buying behaviour of final consumers—individuals and households that buy goods and services for personal
consumption.

Question 2

Consumer markets

Answer 2

Consumer markets are made up of all the individuals and households that buy or acquire goods and services for personal consumption.

Question 3

Factors influencing Consumer Behaviour

Answer 3

Cultural:
* Culture
* Subculture
* Social class

Social:
* Family
* Groups and social networks

Personal:
* Age, life-cycle
* Occupation
* Economic
situation
* Lifestyle
* Personality, self concept

Phycological:
* Motivation
* Attitude
* Perception
* Learning

Question 4

Culture

Answer 4

Culture is the set of basic values, perceptions, wants, and behaviours learned by a member of society from family and other important institutions.
Cultural norms, conformity to norms
A culture is a society’s personality.

Question 5

Subcultures

Answer 5

Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations.
Subcultures include nationality,
religion, racial group and/ or
geographic region.

Question 6

Social classes

Answer 6

Social classes are society’s
relatively permanent and
ordered divisions whose
members share similar values, interests, and behaviours.

ESOMAR Social Classes: upper class (A), UPPER MIDDLE CLASS (B), MIDDLE CLASS (C), LOWER MIDDLE CLASS (D), LOWER CLASS (E)

Question 7

Groups and Social Networks

Answer 7

Membership Groups: Groups with direct influence and to which a person belongs

Aspirational Groups: Groups an
individual wishes to belong to

Reference Groups: Groups that
form a comparison or reference in forming attitudes or behaviour

Question 8

Characteristics Affecting Consumer Behaviour

Answer 8

• Online social networks
• Buzz marketing
• Social media sites
• Virtual worlds
• Word of mouth
• Opinion leaders

Question 9

Social Factors

Answer 9

• Family is the most important consumer-buying organization in society.
• Role and status can be defined by a person’s position in a group

Question 10

Lifestyle

Answer 10

• Lifestyle is a person’s pattern of living as expressed in his or her psychographics.
• Psychographics measure a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment.

Question 11

Economic situations

Answer 11

Occupation affects the goods and services bought by consumers.

Economic situations include trends in: Spending, Personal income, Savings, Interest rates

Question 12

Brande personality

Answer 12

Personality refers to the unique psychological characteristics that distinguish a person or group.
A brand personality is the specific mix of human traits that may be attributed to a particular brand.

Question 13

Motive

Answer 13

*A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction of the need.
*Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations.

Question 14

Maslow hierarchy of needs

Answer 14

1. Physiological needs (food, water, sleep, warmth)
2. Safety needs (security, safety, property)
3. Social needs (friends, family, belonging to somewhere)
4. Esteem needs (achievement, prestige, respect from other)
5. Self-actualization needs (knowledge, creativity)

Question 15

Perception

Answer 15

Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

Question 16

Perceptual Processes

Answer 16

Selective attention is the tendency for people to screen out most of the information to which they are exposed.
Selective distortion is the tendency for people to interpret information in a way that will support what they already believe.
Selective retention is the tendency to remember good points made about a brand they like.

Question 17

Learning

Answer 17

Learning is the change in an
individual’s behaviour arising from experience and occurs through the interplay of drives, stimuli, cues, responses and reinforcement.
Classical conditioning – is learning through association

Question 18

Belief an attitude

Answer 18

A belief is a descriptive thought that a person has about something based on:
* knowledge
* opinion
* faith

An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Question 19

The Buyer Decision Process

Answer 19

Need Recognition –>
Information search –>
Evaluation of alternatives –>
Purchase Decision –> Post-Purchase Decision

Question 20

Perceived risks of purchase decision

Answer 20

FUNCTIONAL RISK - the product doesn’t perform as expected
PHYSICAL RISK - the product endangers the health or physical safety of the user or others
FINANCIAL RISK - the product is not worth the price
SOCIAL RISK - the product is something to be ashamed of in front of others
PSYCHOLOGICAL RISK - the product affects the mental health of the user

TIME RISK - the failure of the product entails the opportunity cost of having to find another satisfactory product

Question 21

Cognitive dissonance

Answer 21

Cognitive dissonance is buyer discomfort caused by post purchase conflict.
Reasons: you discover worrying features or hear positive things about other brands, so you listen for any information that confirms your decision.