Chapter 6 - Consumer Behavior

Question 1

What influences customer behavior?

Answer 1

• Culture, subculture, and social class
• Social - Reference groups, family, and social roles and statuses
• Personal - Age, stage in the lifecycle, occupation, economic circumstances,
lifestyle/ values, personality and self-concept

Question 2

Reference groups

Answer 2

Part of the social factors that influence customer behavior

- All the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior

Question 3

Membership groups

Answer 3

Groups having direct influence

- Can be primary groups or secondary groups

Question 4

Primary groups

Answer 4

Groups in which the person interacts continuously and informally with (family, friends, neighbors)

Question 5

Secondary groups

Answer 5

Formal, less continuous interaction (church, unions)

Question 6

Opinion leader

Answer 6

The person who offers informal advice or information about a specific product or product category. Think beauty guru’s.

• Highly confident, social, frequent users of the category-
• Marketers try to reach them by identifying their demographic and psychographic characteristics, identifying the media they read, directing messages to them

Question 7

Brand personality

Answer 7

Specific mix of human traits that we can attribute to a particular brand.
Consumers more likely to choose brands whose personalities match their own

• Sincerity (down to earth, honest, wholesome, cheerful)
• Excitement (daring, innovative, spirited, up to date)
• Competence (reliable, successful, intelligent)
• Sophistication
• Ruggedness

Question 8

List the 3 theories of motivation

Answer 8

Sigmund Freud - Person can’t understand his/her motivations
Abraham Maslow - Hierarchy of needs
Frederick Herzberg -

Question 9

Freud’s theory

Answer 9

Behavior guided by subconscious motivations

• May use laddering technique , projective techniques
• Tapping into their unconscious

Question 10

Maslow’s theory

Answer 10

Hierarchy of needs
Behavior is driven by lowest, unmet need
- Explains why people are driven by particular needs at particular times
- People ruth satisfy their most important need first then move to next

Question 11

Herzberg’s theory

Answer 11

Behavior is guided by dis-satisfiers and satisfiers

• Absence of dissatisfiers is not enough to motivate a purchase, satisfiers must be present! (ex. warranty)
• Sellers should do their best to avoid dissatisfies (ex. poor training manual, service policy)
• Seller should identify the major satisfiers or motivators of purchase in the market and then supply them

Question 12

Perception

Answer 12

The process by which we select, organize, interpret information inputs to create a meaningful picture of the world

• Motivated people are ready to act, how is influenced by their perceptions
• Perceive things through their senses
• People have different perceptions of the same object b/c of selective attention, selective distortion and selective retention

Question 13

Selective attention

Answer 13

Process in which we screen most stimuli out b/c

• Means marketers must work very hard to attract consumers notice
• Ppl more likely to notice stimuli that relate to a current need, that they anticipate and whose deviations are large in relationship to the normal size of the stimuli (ex. 80% off vs 5%)

Question 14

Selective distortion

Answer 14

The tendency to interpret information in a way that fits our preconceptions.

• Consumers will often distort info to be consistent w/ prior beliefs and expectations
• Works in advantage of strong brands

Question 15

Selective retention

Answer 15

Retaining information that supports our attitudes and beliefs

• Remembering good points about a product we like and forget good points about competing products
• Works in advantage of strong brands

Question 16

Hedonic bias

Answer 16

Occurs when people have a tendency to attribute success to themselves, and failure to external causes.
- Consumers more likely to blame products than themselves therefore marketers should explicitly explain functions, labels instructions etc.

Question 17

Learning

Answer 17

Induces changes in our behavior arising from experience.

• Most human behavior is learned, though must is incidental
• Produced thru drives, stimuli, cues, responses, reinforcement
• When we act, we learn

Question 18

Buying decision process

Answer 18

1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Postpurchase behavior

Question 19

Awareness set

Answer 19

Theres a total set of brands available

• The consumer will only know a subset of these brands
• The brands the consumer knows

Question 20

Consideration set

Answer 20

Only the consideration set of the awareness set will meet initial buying criteria
- The set thats aware, and meets buying criteria

Question 21

Choice sets

Answer 21

As the consumer gathers more info, just a few, the choice set will remain strong contenders.
- Consumer makes final choices from these

Question 22

Expectancy-value model

Answer 22

Consumers evaluate products and services by combing their brand beliefs both positive and negatives according to importance

Question 23

Heuristics

Answer 23

Rules of thumb in the decision process

Question 24

Behavioral economics

Answer 24

Behavioral decision theorists have identified many situations in which consumers make seemingly irrational choices

• a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.

Question 25

Anchoring & Adjustment heuristic

Answer 25

First impression effect

Question 26

Framing

Answer 26

the manner in which choices are presented to and seen by a decision maker.