Chp 4: Consumer Behaviour Flashcards

1
Q

LO1: what does consumer process model represent

A

represents the steps that consumers go through before, during and after making purchases

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2
Q

LO1: 5 steps in consumer process model

A

1) need recognition 2) information search 3) alternative evaluation 4) purchase decision 5) postpurchase

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3
Q

LO1: what makes need recognition larger?

A

The greater the discrepancy between these needy and desired state, the greater the need recognition

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4
Q

LO1: step 1) need recognition: define need recognition

A

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

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5
Q

LO1: step 1) need recognition: example of need recognition

A

difference between actual hungry state and desired (not hungry) state is greater when you are starving, so need recognition is larger

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6
Q

LO1: step 1) need recognition: 3 types of consumer needs

A

1) functional needs
2) psychological needs
3) both

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7
Q

LO1: step 1) need recognition: define functional needs

A

pertain to performance of product or service

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8
Q

LO1: step 1) need recognition: define psychological needs

A

pertain to personal gratification consumers associate with product/service

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9
Q

LO1: step 1) need recognition: what needs do most products seek to satisfy and example

A

Most goods and services seek to satisfy both functional and psychological needs (example: purses satisfy functional need of transporting money and a psychological need of an exciting/expensive purse)

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10
Q

LO1: step 1) need recognition: what does successful marketing require

A

requires determining the correct balance of functional and psychological needs that best appeals to their target markets

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11
Q

LO1: step 1) need recognition: tactics marketers use to make consumers identify needs and 3 examples

A

Marketers use many tactics to either remind customers or a need or create a new need, example: using reminder advertising for products or showing how a product could enhance a customer’s image or altering layout of store example: place things people buy together like eggs and bread together so when they buy bread, they are reminded to buy eggs too

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12
Q

LO2: step 2) info search - explain info search

A

search for info about options that exist to satisfy consumer need

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13
Q

LO2: step 2) info search: what does length and intensity of info search depend on

A

depends on perceived risk associated with purchasing product and importance of product to consumer

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14
Q

LO2: step 2) info search: 2 key types of info

A

1) internal

2) external

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15
Q

LO2: step 2) info search: define internal search for info and example

A

occurs when buyer examines own memory and knowledge about product/service, gathered through past experiences
ex. Eating at restaurant you know you like

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16
Q

LO2: step 2) info search: define external search for info and 2 examples

A

occurs when buyer seeks info outside his own personal knowledge base to help make buying decision
example: Like talking to friends or looking on search engines

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17
Q

LO2: step 2) info search: 3 factors affecting consumer search process

A

1) perceived benefits vs perceived costs of info search
2) locus of control
3) actual or perceived risk

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18
Q

LO2: step 2) info search: factors affecting consumer search process: explain perceived benefits vs perceived costs

A

is it worth time and effort to search for info about product/service; probably spend more time researching safety of cars

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19
Q

LO2: step 2) info search: factors affecting consumer search process: explain internal locus of control

A

people believe they have some control over outcomes of their actions. They generally engage in more search activities

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20
Q

LO2: step 2) info search: factors affecting consumer search process: explain external locus of control

A

people believe fate or other external factors control all outcomes. It doesn’t matter how much info they gather, if they make good decision it isn’t to their credit and if they make bad decision it isn’t their fault

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21
Q

LO2: step 2) info search: factors affecting consumer search process: explain actual/perceived risk

A

1) 5 types of risk can delay/discourage purchase

2) The higher the risk, the more likely the consumer will engage in extended search.

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22
Q

LO2: step 2) info search: factors affecting consumer search process: 5 actual/perceived risks

A

1) performance risk
2) financial risk
3) social risk
4) physiological risk
5) psychological risk

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23
Q

LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain performance risk and example

A

perceived danger inherent in poorly performing product/service (example tesla car takes longer to charge than expected)

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24
Q

LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain financial risk and how this can be allieved

A

risk associated with money outlay and includes initial cost to purchase and costs of using item (warranties can alleviate this)

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25
Q

LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain social risk and example

A

fear consumers suffer when they worry others might not regard purchases positively (friends don’t like dress)

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26
Q

LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain physiological/safety risk

A

actual harm should product not perform properly

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27
Q

LO2: step 2) info search: factors affecting consumer search process:actual/perceived risks: explain psychological risk and example

A

way people will feel if product does not convey right image (looked up reviews because he wanted people to perceive choice as a good one)

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28
Q

LO2: step 2) info search: factors affecting consumer search process: - 2 things marketers should do

A

1) Marketers need to understand sources of info consumers use and with this they can provide info about products/educate consumers about products to build trust/credibility
2) Marketers must communicate tactics aimed at reducing risks to consumers

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29
Q

LO2: step 3) alternative evaluation: what must consumers do

A

Consumers must evaluate choices available

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30
Q

LO2: step 3) alternative evaluation: when does this often occur

A

when consumers are in process of info search

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31
Q

LO2: step 3) alternative evaluation: when is this skipped?

A

Consumers forgo alternative evaluations when buying habitual(convenience) products

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32
Q

LO2: step 3) alternative evaluation: 3 attribute sets

A

1) universal sets
2) retrieval sets
3) evoked set

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33
Q

LO2: step 3) alternative evaluation: define universal sets

A

includes all possible choices for product category

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34
Q

LO2: step 3) alternative evaluation: define retrieval sets

A

brands or stores that can be readily brought forth from memory

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35
Q

LO2: step 3) alternative evaluation: define evoked set

A

alternative brands or stores that consumer states he would consider when making a purchase decision

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36
Q

LO2: step 3) alternative evaluation: why is evoked set important?

A

If firm can get into consumer’s evoked set, it can increase likelihood of purchase because consumer will think specifically of brand and this reduces info search

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37
Q

LO2: step 3) alternative evaluation: what do consumers base evaluations of alternatives on?

A

evaluative criteria

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38
Q

LO2: step 3) alternative evaluation: define evaluative criteria

A

consists of a set of important attributes about a particular product that are used to compare alternative products (Ex. selling price, material, reputation)

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39
Q

LO2: step 3) alternative evaluation: 2 things consumer uses to simplify decision process

A

1) determinant attributes

2) consumer decision rules

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40
Q

LO2: step 3) alternative evaluation: define determinant attributes and give example

A

product/service features that are important to buyers and on which competing brands/stores are perceived to differ (ex. Red soles on louboutin heels)

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41
Q

LO2: step 3) alternative evaluation: define consumer decision rules

A

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

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42
Q

LO2: step 3) alternative evaluation: 3 forms the consumer decision rules takes

A

1) compensatory
2) noncompensatory
3) decision heuristics

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43
Q

LO2: step 3) alternative evaluation: define compensatory decision rule and give example

A

assumes consumers when evaluating alternatives trades off one characteristic against another such that good characteristics compensate for bad (ex car superb mileage compensates for increased price)

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44
Q

LO2: step 3) alternative evaluation: define noncompensatory decision rule and give example

A

consumers choose product on basis of subset of its characteristics, regardless of values of its other attributes (ex. Car with superb mileage might be rejected just because of increased price)

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45
Q

LO2: step 3) alternative evaluation: define decision heuristics rule and give 3 examples

A

mental shortcuts that help consumers narrow down choices.

Examples: price, brand, product presentation

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46
Q

LO2: step 3) alternative evaluation: what can marketers do to help consumers with evaluation process

A

Marketers can provide detailed comparison info on price, unique features and benefits to help consumers with evaluation process

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47
Q

LO2: step 4) purchase decision - what do retailers use to measure intentions and purchases and give example

A

Retailers use conversion rate to measure how well they have converted intentions to purchase into purchases (example consumer might not buy if product is not in store)

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48
Q

LO2: step 4) purchase decision - define ritual consumption and give example

A

pattern of behaviours tied to life events that affect what and how we consume (ex. Brushing teeth twice a day)

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49
Q

LO2: step 4) purchase decision- what do consumers do after purchase

A

they consume it (put it to test)

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50
Q

LO2: step 5) postpurchase - why are marketers interested in postpurchase

A

because it entails actual, rather than potential consumers. If consumer is happy, they will spread positive work of mouth and might purchase again, otherwise they may leave bad reviews.

51
Q

LO2: step 5) postpurchase - 3 possible purchase outcomes

A

customer satisfaction, postpurchase cognitive dissonance(buyers remorse), customer loyalty (disloyalty)

52
Q

LO2: step 5) postpurchase - explain a time when customer satisfaction is not met (purchase outcome)

A

Unrealistically high consumer expectations through advertising may lead to high initial sales but will eventually lead to dissatisfaction when product doesn’t achieve expectation

53
Q

LO2: step 5) postpurchase - 4 things marketers do to ensure postpurchase customer satisfaction

A

1) build realistic expectations and deliver
2) demonstrate correct product use
3) provide warranties
4) returns

54
Q

LO2: step 5) postpurchase - define postpurchase cognitive dissonance

A

internal conflict that arises from inconsistency between 2 beliefs or between beliefs and behaviour

55
Q

LO2: step 5) postpurchase - when does postpurchase cognitive dissonance most often occur?

A

Usually occurs when consumers feel they made purchase without all info, they were persuaded by salesperson

56
Q

LO2: step 5) postpurchase - how can marketers help eliminate postpurchase cognitive dissonance

A

Marketers can send consumers email telling them they might right purchase decision

57
Q

LO2: step 5) postpurchase -explain why consumer loyalty outcome is important

A

Loyal consumers will frequent stores so they are valuable to marketers

58
Q

LO2: step 5) postpurchase - 2 undesirable consumer behaviour

A

1) negative word of mouth

2) passive consumers

59
Q

LO2: step 5) postpurchase - when does negative word of mouth occur

A

occurs when consumers spread negative info about product to others

60
Q

LO2: step 5) postpurchase - what can firms do to lessen negative word of mouth

A

firms can have customer service representatives to handle complaints

61
Q

LO2: step 5) postpurchase: what are passive consumers

A

those who don’t repeat purchase or fail to recommend product

62
Q

LO3: 3 factors that influence consumer buying behaviour

A

1) psychological
2) social
3) situational

63
Q

LO3: what are psychological factors?

A

Influences internal to consumer

64
Q

LO3: 5 things included in psychological factors

A

1) Motives
2) attitudes
3) perceptions
4) learning
5) lifestyle

65
Q

LO3: psychological factors: define motive

A

Need or want that is strong enough to cause person to seek satisfaction, recall that marketing is all about satisfying needs and wants

66
Q

LO3: psychological factors: motive: 5 groups of needs from maslow

A

physiological, safety, love/social, esteem, self-actualization

67
Q

LO3: psychological factors: motive: explain physiological needs and give example

A

food, water - basic biological necessities of life

68
Q

LO3: psychological factors: motive: explain safety need

A

protection and physical well being

69
Q

LO3: psychological factors: motive: explain love/social need

A

interactions with others

70
Q

LO3: psychological factors: motive: explain esteem needs and give example

A

allow people to satisfy inner desires ex yoga

71
Q

LO3: psychological factors: motive: explain self-actualization needs and give example

A

personal growth activities - you are satisfied with your life and how you live, ex. You drive a honda because it suits the person you are

72
Q

LO3: psychological factors: motive: what should marketers do for motives

A

Good marketers add value to products by offering info on as many of the pyramid needs as they can

73
Q

LO3: psychological factors: attitudes: define attitudes

A

person’s enduring evaluation of his feelings about and behavioural tendencies towards an object/idea

74
Q

LO3: psychological factors: attitudes: 3 components of attitudes

A

cognitive, affective, behavioural

75
Q

LO3: psychological factors: attitudes: define cognitive

A

what we believe to be true

76
Q

LO3: psychological factors: attitudes: define affective

A

what we feel about the issue at hand (our like/dislike of something)

77
Q

LO3: psychological factors: attitudes: define behavioural

A

the actions we take based on what we know and feel

78
Q

LO3: psychological factors: attitudes: what should marketers do

A

Attitudes influences our decisions and actions and cognitive/affective can be changed through persuasive communications to influence behaviour aspect

79
Q

LO3: psychological factors: perceptions: define perceptions

A

process by which we select, organize, interpret info to form a meaningful picture of the world

80
Q

LO3: psychological factors: perceptions: how does this influence our consumption of goods

A

Influences consumption of goods by our tendency to assign meaning to things like colour, symbol, taste, packaging

81
Q

LO3: psychological factors: perceptions: 4 components of perceptions

A

selective exposure, selective attention, selective comprehension, selective retention

82
Q

LO3: psychological factors: perceptions: example selective exposure

A

when you look at news channels only but not comedy

83
Q

LO3: psychological factors: perceptions: explain selective comprehension

A

consumers interpret marketing message in a way that is different that what marketer intends

84
Q

LO3: psychological factors: perceptions: explain selective retention

A

consumers do not remember all the info they see/read/hear

85
Q

LO3: psychological factors: learning: define learning

A

change in person’s thought process or behaviour that arises from experience and takes place throughout consumer decision process

86
Q

LO3: psychological factors: learning: what 2 things does learning affect

A

attitudes and perceptions

87
Q

LO3: psychological factors: lifestyle: define

A

way consumers spend their time and money to live

88
Q

LO3: social factors: list 3 social factors

A

family, reference groups, culture

89
Q

LO3: social factors: explain why marketers must pay attention to family

A

Firms must consider how families make purchase decisions and understand how various family members influence these decisions as most purchase decisions are made about products the whole family will use

90
Q

LO3: social factors: define reference group

A

one or more persons an individual uses as a basis for comparison regarding beliefs, feelings and behaviours like families, friends, famous people

91
Q

LO3: social factors: 3 ways reference groups affect buying decisions

A

1) offering info 2) providing rewards for specific purchasing behaviours 3) enhancing consumer’s self image

92
Q

LO3: social factors: how do reference groups offer info and example

A

through conservation or through observation (all friends use a certain purse brand)

93
Q

LO3: social factors: example of reference group providing rewards

A

being friendly to people with iphones

94
Q

LO3: social factors: example of reference group enhancing self image

A

buy certain type of shoes if you want to be seen as earthy by the reference groups

95
Q

LO3: social factors: define culture

A

shared meaning, beliefs, morals, values and customs of a group of people

96
Q

LO3: social factors: define subculture

A

group of people whose beliefs and values are different from the rest of the larger society in which they live example: french-canadian subculture

97
Q

LO3: social factors: why should marketers pay attention to culture

A

marketing strategies may be different in north america vs asia

98
Q

LO3: 3 situational factors

A

purchase situation, shopping situation, temporal state (time of day)

99
Q

LO3: situational factors: definition of situational factors

A

factors specific to the situation override (or influence) psychological and social issues

100
Q

LO3: situational factors: example of purchase situation

A

if you like to purchase clothes at walmart but you’re attending a wedding, the situation calls for something nicer

101
Q

LO3: situational factors: explain purchase situation

A

Your predisposition to purchase certain products due to underlying psychological/social factors may be change in certain purchase situations

102
Q

LO3: situational factors: explain shopping situation - 2 points

A

Consumers might be ready to buy product but are derailed once they arrive in store. Marketers use various techniques to influence consumers at this stage:

103
Q

LO3: situational factors: 6 techniques marketers use to influence consumers in shopping situation

A

1) store atmosphere
2) salespeople
3) crowding
4) promotions
5) packaging
6) in store demonstrations

104
Q

LO3: situational factors: shopping situation: example of store atmosphere

A

relaxing atmosphere like starbucks to encourage frequent purchases

105
Q

LO3: situational factors: shopping situation: example of salespeople affecting behaviour

A

sales people can point out advantages and encourage multiple purchases

106
Q

LO3: situational factors: shopping situation: example of crowding affecting behaviour

A

some consumers may leave if there are too many people in the store and its uncomfortable

107
Q

LO3: situational factors: shopping situation: example of in store demonstrations affecting behaviour

A

taste and smell of new food may attract people to buy something they normally wouldn’t

108
Q

LO3: situational factors: shopping situation: example of promotions affecting behaviour

A

buy two get one free can influence people to buy more than they normally would

109
Q

LO3: situational factors: shopping situation: example of packaging affecting behaviour

A

packaging can help make product stand out in an appealing and eye catching way

110
Q

LO3: situational factors: explain temporal state

A

Our state of mind at any particular time can alter our preconceived notions of what we are going to purchase

111
Q

LO3: situational factors: example of temporal state affecting behaviour

A

going grocery shopping before lunch when you are grumpy and hungry means you might buy more junk food than normal

112
Q

LO4: 2 types of buying decisions consumers engage in

A

1) extended problem solving

2) limited problem solving

113
Q

LO4: what does the type of buying decisions are affected by?

A

involvement

114
Q

LO4: when is extended problem solving used?

A

for high priced, risky, infrequent or highly expressive purchases

115
Q

LO4: when is limited problem solving used?

A

includes impulse buying and habitual purchases

116
Q

LO4: define involvement

A

consumer’s degree of interest or concern about product

117
Q

LO4: explain what high involvement results in

A

greater attention, deeper processing -> develops strong attitudes and purchase intentions

118
Q

LO4: explain what low involvement results in and example

A

less attention, peripheral processing -> generates weak attitudes and increased use of cues (might just focus on brand name or colour in ad rather than scrutinizing all available info)

119
Q

LO4: define impulse buying

A

decision made by consumer on the spot when they see merchandise

120
Q

LO4: define habitual decision making

A

purchase decision process in which consumers engage with little conscious effort

121
Q

lecture: explain what happens in evaluation of alternatives stage

A

match between consumer needs and brand attributes (i.e brand features)

122
Q

lecture: explain what happens in evaluation of alternatives stage in steps

A

1) consumers develop list of relevant product attributes
2) assign level of importance to each attribute
3) develop beliefs of how well each brand performs on each attribute
4) evaluate alternatives and develop brand attitude

123
Q

LO3: psychological factors: perceptions: define selective attention

A

consumers who listen to messages that are consistent with their beliefs and not others

124
Q

LO2: step 3: alternative evaluation: explain attribute sets

A

consumer’s mind organizes and categorizes alternatives to help in decision process