Chapter 5: Consumer Markets And Consumer Behavior

Front 1

What is consumer behavior?

Back 1

- Consumer buyer behavior: the buying behavior of final customers – individuals and households that buy goods and services for personal consumption.

Front 2

What is consumer market?

Back 2

- Consumer market: all the individuals and households who buy or acquire goods and services for personal consumption.

Front 3

Explain the three stages of stimulus-response model of buying behavior.

Back 3

1. Marketing and other stimuli:
- Marketing: Product, promotion, price, place
- Other: Economic, technological, political, political, ecological, and cultural
2. Buyer’s black box: characteristics, decision process
3. Buyer responses: product choice, brand choice, dealer choice, purchase timing, purchase amount

Front 4

Which are the four characteristics that influence consumer purchases?

Back 4

Cultural, social, personal and psychological characteristics.

Front 5

Describe cultural factors.

Back 5

Cultural factors exert a broad and deep influence on consumer behavior. In cultural factors are culture, subculture and social grade included.
- Culture: the most basic determinant of a person’s wants and behavior, it is also important for marketers to spot cultural shifts in order to predict new marketers
- Subculture: a group of people with shared value systems based on common life experiences and situations
- Social grade: relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors

Front 6

Describe social factors.

Back 6

Social factors are the consumer’s small groups, family, and social roles and status.
Groups and social networks: influences a person’s behavior,
- Aspirational groups: a group that a person does not belong to. In marketing, images of aspirational groups are often used to communicate the message that a special product will help you belong to this group.
- Reference groups: an actual or imaginary individual or group with a significant influence on an individual’s evaluations, aspirations or behavior
- Word-of-mouth influence and buzz marketing: opinion leaders that can influence or lead a group of people, and create a buzz around their product, company or brand
- Online social networks: online communications, here marketers hope to interact with customers.
Family
-Family members influence the buyer behavior
-The buying behavior between men and women changes all the time
Roles and status
-A role consists of the activities people are expected to perform according to the people

Front 7

Describe personal factors.

Back 7

A buyer’s decisions are also influenced by personal characteristics, such as the buyer’s age and lifecycle stage, occupation, economic situation, lifestyle and personality and self-concept.
Age and lifecycle stage:
- People change the goods and services they buy over their lifetimes
Occupation
- Marketers try to identify the occupational groups that have above-average interest in their groups
Economic situation
- Marketers can target different customers depending on their brand and product
Lifestyle
- Lifestyle is a person’s pattern of living as expressed in his or her psychographics
Personality and self-concept
- Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment
- A brand personality is the specific mix of human traits that may be attributed to a particular brand, five brand personality traits:
o Sincerity
o Excitement
o Competence
o Sophistication
o Ruggedness

Front 8

Describe psychological factors.

Back 8

There are four major psychological factors those influences buying decisions:
- Motivation (drive): a need that is sufficiently pressing to direct the person to seek to satisfy it. Moslow can be connected to people’s drives and motivations
- Perception: the process by which people select, organize and interpret information to form a meaningful picture of the world
- Learning: an individual’s behavior arising from experience
- Beliefs: a descriptive thought that a person has about something, they might be based on real knowledge, opinion or faith
- Attitudes: a persons relatively consistent evaluations, feelings, and tendencies towards an object or idea. Attitudes are difficult to change

Front 9

Name four types of buying decision behavior.

Back 9

1. Complex buying behavior:
- Consumer buying behavior in situations characterized by high involvement in a purchase and significant perceived differences among brands.
2. Dissonance-reducing buying behavior:
- Occurs when consumers are highly involved with an expensive, infrequent or risky purchase, but see little difference among brands.
3. Habitual buying behavior:
- Consumer buying behavior in situations characterized by low consumer involvement and few significantly perceived brand differences
- If the consumers choose the same brand, it is because of a habit
- Price and sales promotions to stimulate product trial
4. Variety-seeking buying behavior:
- Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences

Front 10

Name the five different steps in the buying decision process.

Back 10

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

Front 11

Explain need recognition.

Back 11

- The buyer recognizes a problem or need
- Can be triggered by internal or external stimuli

Front 12

Explain information search.

Back 12

- Not all interested customers search for more information
- Consumers can uptake information from any of several sources:
o Personal sources
o Commercial sources
o Public sources
o Experimental sources
- Generally the consumer receives the most information about a product from commercial sources, those that marketers control

Front 13

Explain evaluation of alternatives.

Back 13

- The consumer ranks brands and forms purchase intentions
- Alternative evaluation: the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set

Front 14

Explain purchase decision.

Back 14

- Two factors can come between the purchase intention and the purchase decision:
o Attitudes of others
o Unexpected situation factors

Front 15

Explain post-purchase behavior.

Back 15

- The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction
- Cognitive dissonance: buyer discomfort caused by post-purchase conflict, every purchase involves a compromise

Front 16

Describe the buyer decision process for new products.

Back 16

- Adaption process: the mental process through which an individual passes from first learning about an innovation to final adaption
- Stages in the adaption process:
o Awareness: the consumer becomes aware of the new product, but lacks information about it
o Interest: the consumer seeks information about the new product
o Evaluation: the consumer considers whether trying the new product makes sense
o Trial: the consumer tries the new product on a small scale to improve his/hers estimate of its value
o Adoption: the consumer decides to make a full and regular use of the new product
- Individual differences in innovativeness – people differ greatly in their readiness to try new products
- Influence of product characteristics on rate of adaption: depends on the product:
o Relative advantage
o Compatibility
o Complexity
o Divisibility
o Communicability