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MKTG 701 > Week 4 - Consumer Behavior > Flashcards

Week 4 - Consumer Behavior Flashcards

1
Q

Why does consumption occur?

A

Real or perceived

Need, want, or desire

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2
Q

What should marketers identify about the consumer problem solving cycle?

A

How and why consumers chose a product

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3
Q

What is the difference:
Consumer behavior?
Buyer behavior?

A 
Consumer = purchases for personal use
Buyer = purchases for organisational use

Both are humans

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4
Q

What are the unique conditions of buyer behavior (eg, organisational use)

A 
Multiple decision makers
Derived demand (reliant on consumer demand)
Inelastic demand (low price sensitivity in short term)
Reciprocity (equivalence of advantages - arrange to buy from each other)
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5
Q

Are consumer buyers completely different from organisational buyers?

A

No - think parents buying for kids = multiple decision makers

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6
Q

what are the types of business buys?

A

straight rebuy
modified rebuy
new task buying

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7
Q

what’s a straight rebuy?

A

identical refill for organisational purchase

low time investment

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8
Q

what’s a modified rebuy?

A

refill with slight changes for organizational purchase

medium time investment

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9
Q

what’s a new task buy?

A

new organisational purchase for a new need

high time investment

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10
Q

what are the three models of buying - John O’Shaughnessy

A

want without buying
buy without deciding
deciding before buying

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11
Q

what does it mean to want without buying?

A

latent want - we don’t a product is available to fulfill our need
passive want - we procrastinate for avoidance or exclusionary factors

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12
Q

what are avoidance factors for passive wants (want without buying)?

A

perceived costs outweight benefits

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13
Q

what are exclusionary factors for passive wants (want without buying)?

A

external factors - like a promise to someone else or law prohibiting

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14
Q

what does it mean to buy without deciding

A

habit - previous choice or learned behavior
picking - random or convenience choice
intrinsic preference - gut choice, say on packaging in store

laundry detergent for instance is often a HABIT

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15
Q

what does it mean to decide before buying?

A

really = buy after deciding

choice criteria:
technical - performance/attributes
legalistic - externally imposed limits
integrative - reinforce image or role
adaptive - proxies to inform choice
economic -  cost/benefit perception
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16
Q

in consumer buying, what are levels of involvement and emotion?

A

involvement

  • levels of intensity
  • importance to the individual

emotion

  • rational
  • emotional
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17
Q

what types of products have high involvement buying processes?

A

highly visible, expensive, long lifespan

not dichotomous: high for one person might be low for someone else

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18
Q

what types of products have high emotion buying processes?

A

direct personal impact, high degree of variation, credence qualities, perceived risks

again, not dichotomous

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19
Q

what is the challenge of managing expectations?

A

high expectations =

higher purchase likelihood
higher chance of failing to meet expectations

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20
Q

when is it important to manage expectations

A

pre-purchase
purchase
post-purchase

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21
Q

what are consumer expectations?

A

beliefs about product/service

based on standards/prior experience/reference points

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22
Q

what are the levels of consumer expectation?

A 
ideal
normative
experiences-based
acceptable
minimum tolerable
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23
Q

what are ideal expectations?

A

top quality possible
often based on external standards: celebs, social media
often apply to fields like cosmetics

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24
Q

what are normative expectations?

A

what we perceive as what the outcome “should be”

often based on observable criteria (decor, price)

25
Q

what are experiences-based expectations?

A

based on what we’ve experienced
or what someone else has described to us

reasonably established over multiple data points
might not be accurate recall

26
Q

what are acceptable expectations?

A

based on previous general experience in product category

industry standard for safety, wait time, etc

27
Q

what are minimum tolerable expectations?

A

lowest bar before unacceptable

external factors might set this bar very low
eg, hurricane evacuation shelter

28
Q

what is the consumer gap?

A

difference between expected service and perceived service

wider gap = dissatisfied customers

marketers must set reasonable expectations to close the gap

29
Q

what are the three internal drivers of behavior?

A

group
culture - subconscious, influences values

individual
values - what a person believes, informs attitude
attitude - approach to life, informs purchase behavior

30
Q

why does is it important to understand culture, value, and attitudes?

A

critical to research

greatly informs the how and esp the why of consumer purchase

31
Q

what two decision models will we focus on?

A

consumer buying decision process

consumer adoption model

32
Q

what are the 5 steps in the consumer buying decision process

A 
problem recognition
information search
alternative evaluation
purchase decision
postpurchase evaluation
33
Q

what is problem recognition in CBD?

A

aka, need recognition

person realises they have a need, want, or desire
internal trigger (hunger)
external trigger (ad)

sometimes this step is subconscious

34
Q

what is information search in CBD?

A

looking for potential solutions to need

  • internal info (i remember doing x)
  • external info (google search)

active (google search)
passive (glancing at street signs)

generates limited set due to elimination or failure to notice alternatives

35
Q

what is evaluation of alternatives in CBD?

A

information search generated “choice set”
“consideration set” based on available info

first pick might not be decided

36
Q

what is purchase decision in CBD?

A

try to act on first choice
might not be possible (out of stock)

eventually purchase based on internal/external factors

37
Q

what is postpurchase evaluation in CBD?

A

evaluation to see how it meets expectations

sometimes formal, sometimes informal

cognitive dissonance = not sure I made the right decision

38
Q

what is the Consumer Adoption Process model?

A

how consumers decide to become habitual product user

Awareness
Interest
Evaluation
Trial
Adoption
39
Q

what is awareness in CAP model?

A

become aware that a product or product category exists and can address our needs

often done through advertising

40
Q

what is interest in CAP model?

A

researching to learn more

comparing to current solution

41
Q

what is evaluation in CAP model?

A

after interest, might choose to evaluate product
availability impacts evaluation
complexity and compatibility matter

42
Q

what is trial in CAP model?

A

if evaluation = favorable, might try the product

trialability = degree to which can be test run at low/no risk
divisibility = can it be broken into small portions for trial

in many cases trial must be skipped if not possible

43
Q

what is trialability in Consumer Adoption Model

A

trialability = degree to which can be test run at low/no risk

44
Q

what is divisibility in Consumer Adoption Model

A

divisibility = can it be broken into small portions for trial

45
Q

what is adoption in CAP model?

A

if trial is favorable, make a new habit

perceived risk, value, reward

46
Q

what is the STP process?

A

Segmenting
Targeting
Positioning

47
Q

why do the STP process?

A

most orgs can’t appeal to everyone equally

selecting one or more subgroups can be effective

48
Q

what is segmenting in STP?

A

subdividing the population into meaningful groups

not just groups
targeted clusters that are willing, able, and empowered with authority to buy

49
Q

what is positioning in STP?

A

developing product/marketing strategies that make the target market feel heard and helped

50
Q

what is targeting in STP?

A

process of evaluating segments and selecting one or more to focus on serving

51
Q

what are effective segments?

A

differentiatable - meaningful differences from other segments
measurable - estimate size and growth rate
accessabile - we can reach them with marcoms
substantial - warrant potential servicing

52
Q

what are the segmentation stages?

A

survey stage - collect data
analysis stage - form clusters
profiling stage - write profiles for each segment

53
Q

what types of patterns will we see in market characteristics?

A

homogeneous - all customers have similar needs/wants/desires
heterogeneous - very diverse wants/desires
clustered - groups with similar needs/wants/desires

54
Q

what are the four bases of segmentation?

A

geographic
demographic (age, gender, edu, income, religion)
psychographic (personality, attitude, beliefs)
behavioral (purchasing behavior: usage, benefit sought)

typically multiple bases = stronger segmentation

55
Q

what are the targeting stages in STP?

A 
evaluate segments (market potential, competitive analysis)
select segments (which one or more are optimal)
develop targeting strategy (depends on the segment)
56
Q

what are the four targeting strategies?

A

undifferentiated - treat everyone as one market (homogeneous)
concentrated - focus on one segment only (clustered)
differentiated - focus on a few different segments (clustered)
individual - treat everyone differently (heterogeneous)

57
Q

what is the purpose of positioning in STP?

A

Philip Kotler: winning/keeping customers means (1) understanding needs and (2) serving better than competition

positioning = effort to meet needs of target customers better than competition

58
Q

what is the positioning process in STP?

A

identify where our customers are
perceptual mapping of competition on segments
figure out how to communicate effectively to the customers

will be covered in module 5 in more detail

MKTG 701 (6 decks)

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