Chapter 4 - Consumer Behaviour

Question 1

Consumer Decision Process

Answer 1

1. Need recognition
2. Information search
3. Alternative evaluations
4. Purchase Decision
5. Post Purchase decision

Question 2

Need recognition -

Answer 2

the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need, and they want to go from their needy state to a different, desired state.

Question 3

Functional needs

Answer 3

pertain to the performance of a product or service

Question 4

Psychological needs -

Answer 4

• pertain to the personal gratification consumers associate with a product and/ or service

Question 5

Information Search

Answer 5

• Search for information about the various options that exist to satisfy that need
• The length and intensity of the search are based on several factors, including the degree of perceived risk associated with purchasing the products or service and the importance of the product to the consumer

Question 6

Internal search for information

Answer 6

buyers examine their own memory and knowledge about the product or service, gathered through past experiences

Question 7

External search for information -

Answer 7

buyers seek information outside their personal knowledge base to help make the buying decision

Question 8

Factors Affecting Consumers’ Search Processes -

Answer 8

The perceived benefits vs perceived costs of search - is it work the time and the effort to search for information about a product or service
The locus of control -

Question 9

Internal locus of control

Answer 9

• people believe they have some control over the outcomes of their actions, engage in more search activities

Question 10

External locus of control

Answer 10

• consumers believe that fate of other external factors control all outcomes - in this case it does not matter how much information they gather

Question 11

Types of risk -

Answer 11

• Performance
• Financial
• Social
• Physiological
• Psychological

Question 12

Performance risk

Answer 12

involves the perceived danger inherent in a poorly performing product or service

Question 13

Financial risk

Answer 13

risk associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service

Question 14

Social risk

Answer 14

involves the fears that consumers suffer when they worry that others might not regard their purchases positivity

Question 15

Physiological risk

Answer 15

can also be called a safety risk. Refers to the fear of actual harm should not perform properly

Question 16

Psychological risk

Answer 16

associated with the way people will feel if the product or service does not convey the right image

Question 17

Alternative Evaluation

Answer 17

Must sift through choices available and evaluate the alternatives

Question 18

Retrieval sets -

Answer 18

consists of brands or stores that can be readily brought forth from memory

Question 19

Evoked sets -

Answer 19

include only brands or stores considered when making a purchase decision

Question 20

Evaluate criteria -

Answer 20

consists of a set of important attributes about a particular product that are used to compare alternative products

Question 21

Determinant attributes

Answer 21

product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

• Many important and desirable attributes are equal among the various choices, consumers look for something to differentiate one brand from another

Question 22

Decision Rules

Answer 22

set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives

Question 23

Compensatory decision rule

Answer 23

• assumes that the consumer, when evaluating alternatives trades off one characteristic against another

Question 24

Noncompensatory decision rule

Answer 24

choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes

Question 25

Decision heuristics -

Answer 25

mental shortcuts that help consumers narrow down their choices Price, brand, product presentation

Question 26

Purchase Decision

Answer 26

Retailers use various tactics to increase the chances that consumers will convey their positive evaluations into purchases - create urgency, track behaviour of consumers

Question 27

Purchase Decision Situational Factors

Answer 27

having merchandise in stock, offering multiple payment options, having many checkout lanes open and placing the checkout conveniently in the store, delivery, price matching, warranty, etc.

Question 28

Post Purchase

Answer 28

marketers are particularly interested because it entails actual, rather than potential consumers

Question 29

Customer Satisfaction

Answer 29

build realistic expectations, demonstrate correct product use, stand behind the product or service by providing money-back guarantees and warranties, encourage customer feedback

Question 30

Postpurchase dissonance -

Answer 30

buyers remorse or cognitive dissonance is an internal conflict that arises from an inconsistency between two beliefs or between beliefs and behaviour

Question 31

Customer loyalty

Answer 31

- customer loyalty develops over time with multiple repeat purchases of the product or brand from the same marketer - Attempt to build and nurture a loyal relationship with their customers

Question 32

Factors Influencing Consumer Buying Decisions

Answer 32

- Psychological - Social - Situational

Question 33

Psychological Factors

Answer 33

motives, attitudes, perceptions, learning, lifestyle

Question 34

Motives

Answer 34

is a need or a want that is strong enough to cause the person to seek satisfaction

Question 35

Maslow Hierarchy of Needs

Answer 35

- Physiological needs - basic biological necessities of life: food, drink, rest, and shelter - Safety needs - protection and physical well-being - Love (social) needs - relate to our interactions with others - Esteem needs - allow people to satisfy their desires - Self-actualization - occurs when you feel completely satisfied with your life and how you live

Question 36

Attitude

Answer 36

- a person's enduring evaluation of their feelings about personal behavioural tendencies toward an object or idea - cognitive component (reflects what we believe to be true) affective (what we feel about the issue at hand), behavioural (actions we take based on what we know/how we feel)

Question 37

Perception

Answer 37

is the processes by which we select, organize, and interpret information to form a meaningful picture of the world

Question 38

Learning

Answer 38

refers to a change in a person's thought process or behavior that arises from experience and takes place throughout the consumers decision process

Question 39

Lifestyle

Answer 39

- refer to the way consumers spend their time and money to live

Question 40

Social Factors -

Answer 40

- Family - firms must consider how families make purchase decisions and how various family members might influence these decisions

Question 41

Reference groups -

Answer 41

is one or more persons an individual uses as a basis for comparison regarding beliefs, feelings, and behavious

Question 42

Situational Factor

Answer 42

Factors affecting the consumer decision process; those that are specific to the purchase and shopping situation and temporal state that may override, or at least influence, psychological and social issues

Question 43

Sensory Situation -

Answer 43

Store atmosphere, salespeople, crowding, in-store demonstrations, promotions, packaging

Question 44

Involvement and Consumer Buying Decisions - high involvement

Answer 44

greater attention detail, deeper processing - Develops strong attitudes and purchase intentions

Question 45

Low involvement -

Answer 45

less attention, peripheral processing - Generates weak attitudes and increased use of cues

Question 46

Extended Problem Solving

Answer 46

A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a great deal of risk

Question 47

Limited Problem Solving

Answer 47

Occurs during a purchase decision that calls for, at most, a moderate amount of time and effort - customers engage in this when they have had some prior experience with the product or service and the perceived risk is moderate

Question 48

Impulse buying

Answer 48

a buying decision made by customers on the spot when they see merchandise

Question 49

Habitual decision making

Answer 49

purchase decision process in which consumers engage with little conscious effort