1
Q
what is consumer behaviour ?
A
study of process that consumers use to…
- identify & choose products & services
- decision criteria they use
- factors that influence the decisions to purchase products
2
Q
what is the founding principle of consumer behaviour ?
A
listen & learn from your customers
3
Q
what is the consumer decision process ?
A
- steps that consumers go through before, during & after making purchases
- need recognition
- information serach
- alternatie evaluation
- purchase decision
- post purchase
4
Q
describe the need recognition stage
A
consumer recognized they hav an unsatisfied need (want to reach desired state)
5
Q
what are two types of consumer needs ?
A
- functional needs: performs a specific function (what it does)
- ex. car: gets u place to place - psychological needs: emotional & mental needs (how it makes u feel)
- ex. luxury brands make u feel happy
6
Q
describe the information search stage
A
consumers search for information about the various options that exist to satisfy their needs
7
Q
what are 3 factors that affect a consumer’s search process ?
A
- perceived benefit vs perceived cost
- locus of control
- actual or perceived risk
8
Q
what are the 2 key types of information searches ?
A
- internal: ur own memory, knowledge, past experiences
- ex. knowing what to order at DQ (always get it) - external: seek info to help make buying decision
- ex. friends, internet, salesperson
9
Q
describe perceived benefits vs perceived costs
A
- is it worth the time & effort to search for info about the product/service ?
- ex. you’d spend a lot of time researching about the car u wanna buy (pricey & important)
10
Q
what are the 2 types of locus of control ?
A
- internal: believe u have control over outcomes of ur actions (search more)
- external: fate controls all outcomes (don’t care how much info is gathered)
11
Q
describe actual or perceived risk ?
A
- risks that can delay or discourage a purchase
- the higher the risks, the more likely the consumer will search more
12
Q
what are the 5 types of risks associated w purchase decisions ?
A
- performance risk: does it work/perform well ?
- can provide warranties & returns - financial risk: am I wasting my money, am I paying for more than its worth
- offer low prices, giv buying options (cash or lease) - social risk: what will others think of my purchase ?
- provide testimonials (show that other ppl have bought the product b4) - physiological risk: is it safe, will it case me physical harm
- replace defective products (ez swap) - psychological risk: do I feel good/happy/satisfied (internally)
- provide testimonies (asking friends for opinions, reading reviews)
13
Q
describe the alternative evaluation stage
A
- must go through all the choices available & evaluate them
- usually occurs during information search process
14
Q
what are retrieval and evoked sets ?
A
- retrieval sets: brands that r readily brought from memory (ex. apple for iPhones)
- evoked sets: only brands that you consider when making buying decisions
15
Q
what is evaluative criteria ?
A
- sets of important attributes about a product that r used to compare w alternative products
- ex. when buying clothes, u consider the price, materials, reputation of brand
16
Q
consumers use what types of short cuts to simplify the decision process ?
A
- determinant attributes: features that are important to buyer (brands differ from eo)
- ex. quality, price, brand image, health benefits - decision rules: set of criteria that consumers follow to quickly & efficiency make a choice
- ex. buying the cheapest one, buying a specific band only
17
Q
what are the 3 types of consumer decision rules ?
A
- compensatory: a strength in one area can make up for (compensate for) a weakness in another
- non compensatory: choosing a product based on specific characteristics (ignoring the others)
- decision heuristics: mental short-cuts that helps narrow choices
- ex. price, brand, production presentation
18
Q
describe purchase decision stage
A
consumers are ready to buy
19
Q
what are 3 methods to increase conversion rate (converting intention to purchase) ?
A
- reduce abandoned carts: make it easy to purchase items, “almost sold out”, sends email out,
- merchandise in stock: plenty on hand
- reduce wait time: open more check outs, add digital displays to entertain customers
20
Q
how can companies personalize its services & marketing to its consumers ?
A
- using ai
- determines how many promo emails to send
- how often to send them
- information systems with customer information
21
Q
describe the post purchase stage
A
- after they bought the product
- entails actual customers
22
Q
what are the 3 post purchase outcomes ?
A
- customer satisfaction: build realistic expectations & deliver them, show correct product use, encourage customer feedback
- post purchase dissonance: buyer’s remorse, feeling of regret or guilt, question ur purchase
- customer loyalty: develops over time (multiple purchases), marketer builds relationship w customer form the first purchase
23
Q
what kind of customers do marketers want to create ?
A
- satisfied
- local
- purchase again
- spread positive words
24
Q
what can cause customer dissatisfaction ?
A
- setting expectations too high
- can lead to initial high sales but eventually the product will fail to achieve expectations
25
why does post purchase dissonance occur ?
- made purchase without all the info they needed
- persuaded by salesperson
- like the good feature but don't like the negative parts
- right after the purchase, u see the same thing for cheaper
26
how can post purchase dissonance be positive ?
ex. honda sends a letter to consumers "thanks for buying from us" and helpful information
- consumer can focus on positive info
- get positive feedback from family & friends
- look up negative reviews of cars u didnt buy
27
what is undesirable consumer behaviour and how to reduce it ?
- negative word of mouth: rumours, can be very damaging
- internet spreads negativity effectively
- marketers must respond quickly
28
what are 3 factors that affect the consumer decision process ?
- psychological factors
- social factors
- situational factors
29
what are the psychological factors ?
- motive: drive that makes consumers fulfill their needs/satisfaction (hierarchy of needs)
- attitudes: enduring (long lasting) evaluation/feeling toward a object/idea
- perceptions: how people select, organize & interpret information
- learning: change in thought processes/behaviour due to experiences or new knowledge
- lifestyle: the way consumers spend their time & money to live
30
what r the 5 hierarchal needs ?
- physiological needs: water, food, shelter, warmth
- safety needs: protection of well being (ex. airbags in cars)
- love (social) needs: interactions w others (ex, how u looks)
- esteem needs: satisfy inner desires (ex. yoga, meditation, books)
- self actualization: don't care what others think (completely satisfied w ur life)
31
an attitude consist of what 3 components ?
- cognitive component: what we believe is to be true
- affective component: how we feel about something
- behavioural component: what actions we take based on what we know & feel
32
what r the 4 components of perception that marketers must understand & focus on ?
- selective exposure: choosing media to watch based on ur interests (ex. only watch a certain yt channel)
- selective attention: only pay attention to things that are relevant to ur current needs
- selective comprehension: how u interpret information (twist so it align w ur beliefs/knowledge)
- selective retention: only remembering info that supports ur feelings/beliefs
33
learning affects both ______ & ______
attitudes & perceptions
34
describe learning by doing
grain practical knowledge & improve ur skills by physically performing a task (through experience)
35
describe vicious learning
when u draw the wrong conclusions from an experience (leading to poor decision making)
36
describe learning by association
how we react to brand similarities & differences
- stimulus generalization: transfer feeling u have for a brand to another similar looking brand
- stimulus discrimination: learn to distinguish a brand from its competitors based on unique features
37
what are the social factors ?
- family: decisions must be must consider needs of all family members (ex. children often influence food related decisions)
- reference groups: people that an individual uses as a basis for comparison regarding beliefs, feelings & behaviours
- culture: marketers must understand difference among cultures & subcultures (greatly influences consumer behaviour)
38
what are some types of reference groups and how do they affect buying decisions ?
- family, friends, coworkers, famous people (influencers online)
- they provide info, provide rewards for specific purchasing behaviour, enhance consumer's self image
39
what is a subculture ?
group of people who have different values & beliefs than the country they live in
40
what are the situational factors ?
- purchase situation: dependent on the occasion/person (ex. Lina buys her friend a pandora bracelet for her bday, but would thrift one for herself)
- shopping situation: sensory elements influence consumers decisions
- temporal state: mood swings, emotional state, out of control of marketer
41
what are techniques that influence consumer buying decisions (shopping situation) ?
- store atmosphere
- crowding
- demos & promotions
- sales people
- promotions
- packaging
42
what are the 2 types of buying process/decisions depending on their level of involvement ?
- extended problem solving: customer perceives that the purchase decision entails a great deal of risk (ex. buying a car)
- limited problem solving: relies on past experience, moderate perceived risk
43
what is involvement ?
customer's degree of interest about the product or service
- high: greater attention, deeper processing, develop strong attitudes & purchase intentions
- low: less attention, peripheral processing, generates weak attitudes & increased use of cues
44
what are the 2 types of limited problem solving ?
1. impulse buying: buying decisions made on the spot
2. habitual decision making: purchase decisions that consumer make with little conscious effort (ex. getting a timmies ice cap rq)
