Understanding Consumer Behaviour

Question 1

High Involvement Purchases

Answer 1

Involve goods or services that are psychologically important to the buyer because they address social or ego needs and therefore carry social and psychological risks (financial)

Question 2

High Involvement Purchase Steps (5)

Answer 2

1. Problem Identification
2. Information Search
3. Evaluation of Alternatives
4. Purchase
5. Post Purchase Evaluation

Question 3

Factors Likely to Increase Pre-purchase Information Search (3)

Answer 3

1. Product
2. Situational (experience, social acceptability)
3. Personal (demographic characteristics, personality)

Question 4

Sources of Information

Answer 4

personal, commercial, public

Question 5

Evoked Set

Answer 5

a limited number of familiar brand alternatives that satisfy needs

Question 6

Choice Criteria

Answer 6

limited number of product dimensions or attributes and their relative importance

Question 7

Product Attributes

Answer 7

cost, performance, social availability

Question 8

Post-Purchase Evaluation (2)

Answer 8

1. Aspiration or expectation level

2. Product performance

Question 9

purchasing inertia

Answer 9

Low involvement repeat purchases to avoid decisions. Not actual brand loyalty

Question 10

impulse buying

Answer 10

buy different brand for variety

Question 11

ROPO

Answer 11

research online, purchase offline

Question 12

Marketing Decisions (4)

Answer 12

product, price, promotional, distribution

Question 13

Psychological variables that affect consumer decision making

Answer 13

perceptions, memory, needs, attitudes influenced by demographic and lifestyle variables

Question 14

perception

Answer 14

process to select, organize, and interpret information

Question 15

Selectivity

Answer 15

consumers pick and choose only selected pieces of information and ignore the rest

Question 16

Perceptual vigilance

Answer 16

pay particular attention to information related to needs and wants to satisfy and particular brands for purchase

Question 17

perceptual deference

Answer 17

avoid information that contradicts their current beliefs and attitudes

Question 18

short term memory

Answer 18

forget most within 30 seconds or less because of inattention or displacement of new information

Question 19

long term memory

Answer 19

information must be actively rehearsed and internalized

Question 20

categorization

Answer 20

classify new information from past experience

Question 21

integration

Answer 21

perceive separate pieces of related information as an organized whole

Question 22

attitude

Answer 22

positive or negative feeling about an object (brand) that predisposes a person to behave in a particular way toward that object

Question 23

Fishbein Model

Answer 23

Attitude A = Attitude toward Brand A
Belief i = Belief on the extent attribute i is associated with Brand A
I i = Importance of attribute i to consumer
K = total number of attributes
i = any specific product attribute

Question 24

Lexiographic Model

Answer 24

consumer evaluates product on most important attribute

Question 25

changing consumer attitudes (5)

Answer 25

1. change attitude to product class
2. change importance of attribute(s)
3. add a salient attribute
4. improve ratings on attribute(s) through advertising
5. lower rating on attribute(s) of competing brands

Question 26

Demographic influence (4)

Answer 26

1. nature of consumer needs and wants
2. ability to purchase
3. importance of attributes and choice criteria
4. consumer attitudes toward products and brands

Question 27

personality

Answer 27

consumer choose products that match their self concept or ideal self concept

Question 28

lifestyle

Answer 28

broad patterns of activities, interests, and opinions - and the behaviour that results

Question 29

social influences

Answer 29

culture, subculture, social class, reference groups, family

Question 30

culture

Answer 30

set of beliefs, attitudes, behaviour patterns, shared in a society and socialized generation to generation

Question 31

subculture

Answer 31

people with common geographical, ethnic, religious background, holding unique beliefs, attitudes, and behavior patterns

Question 32

social class

Answer 32

status groupings based on similar income, education, and occupation

Question 33

reference groups

Answer 33

groups that affect consumer behaviour through normative compliance (frats), value expressed influence (social media influencers), informational influence (Netflix suggestions)

Question 34

family

Answer 34

primary socialization agent helping members acquire skills, knowledge, and attitudes, to be consumers