Chapter 3 - Customer Behaviour

Question 1

What is Consumer Behaviour?

Answer 1

The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs or desires.

Essentially, what do we choose and why do we choose it

Question 2

What is another way to think of Consumer Behaviour?

Answer 2

The psychology of consumption

Question 3

What has research found regarding consumers’ expression through consumption?

Answer 3

A need for uniqueness. - All my friends have the olive backpack, I want to get the black one!

Question 4

What do consumers also have a need for?

Answer 4

A need for touch

Question 5

What are “variety seekers”?

Answer 5

“We like choices, but not too many choices.”

Question 6

Because consumers often choose the option with the smallest immediate loss, they are considered _____ _______?

Answer 6

Loss averse

Question 7

When consumers make a choice that is “in the middle” what are they?

Answer 7

Extreme averse

Question 8

If customers have time, they will make?

Answer 8

Better choices

Question 9

What typically determines how your product is interpreted?

Answer 9

How often they can recall the product

Question 10

What are the 5 stages of the adoption process?

Answer 10

1. Innovators
2. Early adopters
3. Early mainstream
4. Late mainstream
5. Lagging adopters

Question 11

Why do people often buy products?

Answer 11

Not for what they do, but for what they mean..

Question 12

Essentially, what do we consume?

Answer 12

The meaning of a company

Question 13

What are 5 situational influences?

Answer 13

1. Purchase task - gift buying
2. Social surroundings - out with friends
3. Physical surroundings - decor, music, crowding
4. Temporal effects - time of day, how much time you have
5. Antecedent states - your mood or available cash

Question 14

What are the 3 cultural factors of consumer behaviour?

Answer 14

1. Culture - basic trigger of wants & behaviours
2. Subculture - Shared value systems within group
3. Social class - division based on socio-economic status

Question 15

What is more difficult to judge than income?

Answer 15

Social class

Question 16

What are the 3 Social Factors?

Answer 16

1. Reference Group - Different kinds of groups
2. Family - Household “power-brokers”
3. Roles and status - Role = expected activities, Status = Esteem given to role by society

Question 17

What is the “halo effect”?

Answer 17

If a thing is pretty, we will think it’s good

Question 18

What are the 5 Personal Factors?

Answer 18

1. Age and life cycle stage - needs for different products change
2. Occupation - Jobs affect the products bought
3. Economic situation - Personal finances affect buying choices
4. Lifestyle - People buy the lifestyles products represent
5. Personality and self-concept - Possessions contribute to and reflect personal identities

Question 19

What do we need to market to based on the personal factor of Self?

Answer 19

The actual self, not the ideal self.

Question 20

What are the 4 Psychological Influences?

Answer 20

1. Motivation - energizing forces that stimulates behaviours to satisfy a need
2. Perception - Process of interpreting information
3. Learning - behavioural change based on experience
4. Beliefs and attitudes - Personal thoughts on subjects and evaluations thereof

Question 21

What does AIO stand for?

Answer 21

Activities
Interests
Opinions

Question 22

What can be changed over time?

Answer 22

Attitudes and beliefs

Question 23

What is Sensation?

Answer 23

Our immediate response to the world around us

Question 24

What is Perception?

Answer 24

The process in which our sensations are selected, organized, and interpreted

Question 25

What is more influential - sensation or perception?

Answer 25

Perception

Question 26

What are 3 Perceptual barriers?

Answer 26

1. Selective attention/perception 2. Selective exposure and comprehension 3. Selective retention

Question 27

What is the perceived risk for psychological influence?

Answer 27

Anxieties felt because the consumer cannot anticipate the outcomes and believes there may be negative outcomes.

Question 28

What are 4 ways to improve memory?

Answer 28

1. Chunking information into small bits 2. Rehersal - motivate people to repeat the information 3. Recirculation - same message over and over 4. Elaboration - make consumers think about it

Question 29

Is there any proven effect of subliminal perception?

Answer 29

No effect on consumers

Question 30

What are the 2 types of learning?

Answer 30

1. Behavioural learning - developing automatic responses 2. Cognitive learning - making connections between two or more ideas

Question 31

What are the 5 steps in the Consumer Decision Process?

Answer 31

1. Need or problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Postpurchase behaviour

Question 32

What can affect what steps consumers take in the decision making process?

Answer 32

The level of involvement. The higher the involvement, the slowly and more carefully they traverse through the steps. Lower involvement they may take mental shortcuts

Question 33

What local Saskatoon Facebook group is all about postpurchase behaviour?

Answer 33

Saskatoon Restaurants: The Good, The Bad, The Ugly