Understanding consumer buyer behaviour

Question 1

What is the consumer market?

Answer 1

Final consumers (comprising individuals & households) that buy goods and services for personal consumption.

Question 2

Describe major factors that influence online & offline consumer buyer behaviour.

Answer 2

Environment
- Marketing stimuli (7Ps)
Other (Economic, Technological, Social, Cultural)

Buyer’s black box
- Buyer’s characteristics
Buyer’s decision process - what is happening in consumer’s minds

Buyer responses
- Buying attitudes and preferences.
Purchase behaviour - what the buyer buys, when, where and how much
Brand engagements & relationships

Question 3

Cultural

Answer 3

Culture
Subculture
Social Class

Question 4

What is culture?

Answer 4

Set of basic values, perceptions, wants & behaviours learned by a member of society from a family and other important institutions.

Question 5

What is Subculture?

Answer 5

Groups of people with a shared value system based on common life experiences and situations.

Question 6

What is Social class?

Answer 6

Measured as a combination of occupation, income, education & wealth.

Question 7

What are social factors?

Answer 7

INFLUENCE from ppl whom a consumer interacts, identifies with or draws inspiration.

Membership group
Reference group
Family
Roles & Status

Question 8

Membership group

Answer 8

Direct influence and to which a person belongs

Question 9

Reference group

Answer 9

Serves as an aspirational group in which an individual does not belong to, but aspires to identify with. ( E.g. KPOP idols)

Question 10

Family

Answer 10

Roles within the household influence consumer behaviour

Question 11

Roles & Status

Answer 11

Consists of activities which people are expected to perform according to the people around them.

Question 12

Psychological factors

Answer 12

Motivation
Perception
Learning
Beliefs & attitudes

Question 12

Personal factors and explain them.

Answer 12

Occupation: Occupational groups or job roles
(To fit professional image)
Age & life stage: Demographics & life-changing events
Economic situation : income, savings
Lifestyles: Person’s pattern of living, measured in terms of activities, interest, opinions
Personality & self-concept : Unique psychological characteristics that distinguish a person or a group

Question 13

Motivation

Answer 13

: Need that is sufficiently pressing to direct a person to seek satisfaction.

Question 14

Perception

Answer 14

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

Selective attention
Selective retention
Selective distortion

Question 15

What is selective attention?

Answer 15

Tendency of people to screen out most information to which they are exposed.

Ability to focus on the more important information when there are other distractions.

Question 16

What is selective distortion?

Answer 16

Tendency of people to interpret information in a way that will support what they already believe (but has yet to remember)

Question 17

What is selective retention ?

Answer 17

Tendency of people to remember good points made about the brand they favour and forget about good points made about competing brands.

Challenging for competitors to get customers whose needs have been met to remember their good points.

Question 18

Learning. List down steps to explain.

Answer 18

Changes in an individual’s behaviour arising from experience through the interplay of drive, cues, responses and reinforcement.

1. Drive. Strong internal stimulus that calls for action.
2. Cue. Minor stimuli that determine when, where, and how the person responds.
3. Response. Cues influence responses.
4. Reinforcement. If experience is rewarding, the response would be reinforced.

Question 19

Beliefs & attitude

Answer 19

beliefs refers to descriptive thought that a person holds about something

attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Affects buying behaviour of consumers.

Question 20

Identify and discuss stages in the online and offline buyer decision process.

Answer 20

1. Need/Problem recognition
2. Information search
   - Friends/Family/Google
3. Evaluations of alternatives
   - Shops/Brand websites/Review blogs
4. Purchase decision
   - Buying from physical shops/ online e-commerce platforms
5. Post-purchase behaviour
   - Extent of satisfaction with purchase.

DOES NOT MEAN EVERYONE HAS TO GO THROUGH ALL STAGES.