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Marketing Principles > Week 3 > Flashcards

Week 3 Flashcards

1
Q

Consumer Buying Behaviour

A

The buying behaviour of final consumers (individuals and households) that buy goods and services for personalconsumption.

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2
Q

Consumer Markets

A

Combining allindividuals and households that buy or acquire goods and services for personal consumption

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3
Q

Model of consumer behaviour

Central question for marketers

A

How do consumers respond to various marketing efforts the company might use?

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4
Q

Model of consumer behaviour

A 
Companies research consumer buying decisions in great detail in order to answer questions about
•
what consumers buy
•
where they buy
•
how and howmuch they buy
•
when they buy and
•
why they buy.
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5
Q

Characteristics affecting consumer behaviour

A

CULTURAL

SOCIAL

PERSONAL

PSYCHOLOGICAL

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6
Q

Cultural

A

Culture

Cultural Group

Social Class

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7
Q

Culture

A

The set of basic values, perceptions, wants and behaviours learnedby a member of society from family and other important institutions.

Marketers try to spot cultural shifts Examples:
•
health and fitness
•
time poor consumers
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8
Q

Cultural group

A

A group of people with shared value systems based on common life experiences and situations.

Marketers must be careful using membership of cultural groups as a basis of segmentation by over simplifying a group

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9
Q

Social class

A

Relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviours.

Social Class is not always a good basis for developing marketing strategies
•
Often consumers will not assign themselves to a class
•
The groups may be too large to be effective

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10
Q

Social

A

Groups and social networks

Family

Roles and Status

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11
Q

Groups and social networks

A

Groups are defined as two or more people who interact to accomplish individual or mutual goals

Membership groups

Reference groups

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12
Q

Membership groups

A 
Membership groups are groups that
•
an individual belongs to
•
these groups have a direct influence on an individual
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13
Q

Reference groups

A 
Serve as a direct or indirect point of comparison or reference in forming a person’s attitude or behaviour
•
People can be influenced by a reference group to which they may not belong.
•
Aspirational
•
Associative
•
Dis-associative
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14
Q

Reference Groups -Opinion Leaders

A

Person within a reference group who have: Special skills, Knowledge, Personality or Other characteristics
that can exert social influence (e.g. family or friends). Marketers try to identify opinion leaders and direct marketing toward them. Buzz marketing (viral marketing) is used to enlist or create opinion leaders to serve as brand ambassadors.

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15
Q

Reference Groups -Online Social Network

A

Where consumers socialiseand exchange information and opinionsacross social networking sites. Marketers are working to harness the power of social networks to promote their products and build closer relationships.

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16
Q

Family

A

•
Family can strongly influence buyer behavior
•
It is the most important consumer/buying organisation in society
•
Buying roles change with evolving consumer lifestyles

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17
Q

Roles and status

A

A person belongs to many groups
•
The person’s position in each group can be defined in terms of the role and status

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18
Q

Role

A

activities people are expected to perform according to the persons around them

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19
Q

Status

A

the general esteem given to the role

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20
Q

Personal factors

A

Age and life-cycle stage

occupation

Economic situation

Lifestyle

Personality and self-concept

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21
Q

Personal factors –age and life-cycle

A 
Purchase behavior is shaped by:
•
their age
•
stage of the family life cycle
•
Life-stage changes usually result from:
•
Demographics and life changing events (marriage, having children, divorce etc.)
•
Marketers will develop appropriate products and marketing plans for each stage
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22
Q

occupation

A

•
A person’s occupation affects the goods and services bought
•
A company can specialize in making products needed by a particular occupational group

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23
Q

economic situation

A

A persons economic situation will affect they store and product choice.
•
Marketers watch trends in personal income, savings and interest rates.
•
Research suggests that consumers are prioritizing saving, and when they do spend, many are buying from offshore online retailer.
•
In economic downturns, companies will look to redesign, reposition and reprice their products.

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24
Q

lifestyle

A

A person’s pattern of living as expressed in his or her activities, interests and opinions.
•
People coming from the same social class, subculture and occupation may have very different lifestyles

Lifestyle captures more than a person’s social class or personality –it profiles their pattern of acting and interacting with the world.

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25
Q

Lifestyles involve measuring consumer AIO dimensions

A

•
Activities: work, hobbies, shopping, sport, social events
•
Interests: food, fashion, family, recreation
•
Opinions: about themselves, social issues, business, products

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26
Q

Roy morgan lifestyle

A

Roy Morgan provide lifestyle and values segmentation for the Australian market.
•
They identified 10 Australian lifestyle groups (Roy Morgan Value Segments)
•
These groups show, among lifestyle differences, the differences in media and entertainment consumption patterns.
•
Marketers will use this information to reach different parts of their potential market.

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27
Q

Personality and self-concept

A

Personality refers to the unique psychological characteristicsthat distinguish a person or group.

Personality can be used to analyse consumer behavior for brands and product choices.

28
Q

personality is usually described as traits

A 
•
Self-confidence
•
Dominance
•
Sociability
•
Autonomy
•
Defensiveness
•
Adaptability
•
Aggressiveness
29
Q

Brand personality

A

Brands also have personalities
•
A brand personality is the specific mix of human traits that may be attributed to a particular brand.

30
Q

Brand personality traits can be:

A 
Sincerity
Excitement
Competence
Sophistication
Ruggedness
31
Q

Psychological factors

A

A persons buying choices are further influenced by 4 psychological factors:

Motive

Perception

Learning

Beliefs & attitudes

32
Q

Motive

A

A need that is sufficiently pressing to direct the person to seek satisfaction.

Motivation research is qualitative research designed to probe consumer’s hidden subconscious motivations
•
Consumers often do not know, or can not articulate, why they act as they do.

33
Q

Perception

A

The process by which people select, organise and interpret information to form a meaningful picture of the world.

34
Q

Learning

A

Changes in an individual’s behaviour arising from experience.

35
Q

Beliefs and attitudes

A

Belief: A descriptive thought that a person holds about something.

Attitude: A person’s consistently favourable or unfavourable evaluations, feelings and tendencies towards an object or idea.Companies generally try to fit their products into existing attitudes rather than attempt to change attitudes.

36
Q

Motive - two theories of human behaviour

A

Sigmund Freud
•
Abraham Maslow

37
Q

Freud’s Theory

A

assumed people are largely unaware of the real psychological forces shaping their behaviour
•
People repress urges
•
The urges are never eliminated and emerge in Dreams, Slips of the tongue, Neurotic and obsessive behaviours, Psychoses

This Theory suggests that a person’s buying behavior is affected by subconscious motives

38
Q

Maslow’s theory

A

Sought to explain why people are driven by particular needs at particular times
•
He suggests that peoples needs are in a hierarchical order–most pressing to least pressing at the top
•
A person tries to satisfy the most pressing need first
•
Marketers should focus on the types of needs being satisfied when consumer purchase.

39
Q

Maslow’s theory diagram

A

photo in favourites 8/8/18

40
Q

3 aspects of perception

A

Selective attention

Selective retention

41
Q

Selective attention

A

Tendency for people to screen out most of the information they are exposed to

42
Q

Selective distortion

A

describes the tendency of people to interpret information in a way that will support what they already believe.

43
Q

Selective retention

A

What people retain to support the attitude or belief.

44
Q

Marketing importance of beliefs

A

•
Beliefsmay be based on real knowledge, opinion or faith
•
It may or may not involve emotion
•
These are important to marketers as this is part of the product or brand image that can affect buying behaviours

45
Q

The tricomponent attitude model

A

photo in favourites 8/8/18

46
Q

The buyer decision process

A

The buying process starts long before the actual purchase and continues long after. In fact, it might result in a decision notto buy. Therefore, marketers must focus on the entire buying process, not just the purchase decision

47
Q

The buyer decision stages

A

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Post-purchase behaviour

48
Q

Need recognition

A

The buyer recognises a need, triggered by internal or external stimuli.

49
Q

Information search

A

The buyer seeks out information about products or services with potential to satisfy the need.

50
Q

Evaluation of alternatives

A

The consumer processes information in order to arrive at brand choices.

51
Q

Purchase decision

A

The consumer forms a purchase intention and ultimately makes the actual purchase.

52
Q

Post-purchase behaviour

A

Following purchase, the consumer will engage in a variety of post-purchase behaviours –including satisfaction, formation of future purchase intentions and loyalty intentions.

53
Q

The buyer decision process: Decision roles

A

Initiator

Influencer

Decider

Purchaser decision

Consumer

54
Q

Initiator

A

The person who first suggests the idea of buying a product or service.

55
Q

Influencer

A

A person or persons whose views carry some weight in the final purchase decision.

56
Q

Decider

A

The person who makes the final buying decision, or any part of it (e.g. brand, place of purchase, quantity).

57
Q

Purchaser decision

A

The person who makes an actual purchase.

58
Q

Consumer

A

The person who uses or consumes the product or service.

59
Q

The buyer decision process for new products

A 
Awareness
Interest
Evaluation
Trial
Adoption
60
Q

New product adoption process: Factors influencing the rate of adoption

A

Relative advantage

Compatibility

Complexity

Divisibility

Communicability

Other factors

61
Q

Relative advantage

A

superiority over existing products

62
Q

Compatibility

A

with consumer’s lifestyle, beliefs and attitudes

63
Q

Complexity

A

ease of understanding

64
Q

Divisibility

A

the ability to undertake trial on a limited basis

65
Q

Communicability

A

the ability to observe and understand the innovation’s benefits or results

66
Q

Other factors

A

uncertainty, social approval, risks and costs

Marketing Principles (12 decks)

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