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37 Cards in this Set
- Front
- Back
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Consumer Behavior |
It is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services, including consumers’ emotional, mental, and behavioral responses |
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Importance of Consumer Behavior |
Studying consumer behavior is important because it helps marketers understand what influences consumers’ buying decisions. By understanding how consumers decide on a product, they can fill in the gap in the market and identify the products that are needed and the products that are obsolete |
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Personal factors |
an individual’s interests and opinions can be influenced by demographics (age, gender, culture, etc.). |
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Psychological factors |
: an individual’s response to a marketing message will depend on their perceptions and attitudes. |
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Social factors |
family, friends, education level, social media, income, all influence consumers’ behavior |
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Complex buying behavior |
This type of behavior is encountered when consumers are buying an expensive, infrequently bought product. They are highly involved in the purchase process and consumers’ research before committing to a high-value investment |
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Dissonance-reducing buying behavior |
The consumer is highly involved in the purchase process but has difficulties determining the differences between brands. ‘Dissonance’ can occur when the consumer worries that they will regret their choice. |
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Habitual buying behavior |
Habitual purchases are characterized by the fact that the consumer has very little involvement in the product or brand category. |
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Variety seeking behavior |
In this situation, a consumer purchases a different product not because they weren’t satisfied with the previous one, but because they seek variety |
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Market Campaigns |
influence purchasing decisions a lot. If done right and regularly, with the right marketing message, they can even persuade consumers to change brands or opt for more expensive alternatives |
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Economic Conditions |
For expensive products especially (like houses or cars), economic conditions play a big part. A positive economic environment is known to make consumers more confident and willing to indulge in purchases irrespective of their financial liabilities |
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Purchasing power |
Our purchasing power plays a significant role in influencing our behavior. Unless you are a billionaire, you will consider your budget before making a purchase decision |
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Place of purchase |
Most of the time, customers will divide their purchases between several stores even if all items are available in the same store |
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Items purchased |
Analyzing a shopping cart can give marketers lots of consumer insights about the items that were purchased and how much of each item was purchased. Necessity items can be bought in bulk while luxury items are more likely to be purchased less frequently and in small quantities |
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Time and frequency of purchase |
Customers will go shopping according to their feasibility and will expect service even during the oddest hours; especially now in the era of e-commerce where everything is only a few clicks away. |
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Method of Purchase |
A customer can either walk into a store and buy an item right then and there or order online and pay online via credit card or on delivery. |
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Benefit sought |
When customers research a product or service, their behavior can reveal valuable insights into which benefits, features, values, use cases, or problems are the most motivating factors influencing their purchase decision. |
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Occasion or timing-based |
Occasion and timing-based behavioral segments refer to both universal and personal occasions |
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Universal occasions |
apply to the majority of customers or target audience |
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Recurring-personal occasions |
are purchasing patterns for an individual customer that consistently repeat over a while. |
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Rare-personal occasions |
also related to individual customers, but are more irregular and spontaneous, and thus more difficult to predict |
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Usage rate |
Product or service usage is another common way to segment customers by behavior, based on the frequency at which a customer purchases from or interacts with a product or service. Usage behavior can be a strong predictive indicator of loyalty. therefore, lifetime value |
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Brand loyalty status |
Loyal customers are a business’s most valuable assets. They are cheaper to retain, usually have the highest lifetime value, and can become brand advocates. |
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User status |
There are many different possible user statuses you might have depending on your business. A few examples are: • Non-users • Prospects • First-time buyers • Regular users • Defectors (ex-customers who have switched to a competitor |
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Customer Journey stage |
Segmenting the audience base on buyer readiness allows marketers to align communications and personalize experiences to increase conversion at every stage. It helps them discover stages where customers are not progressing so they can identify the biggest obstacles and opportunities for improvement, even on post-purchase behaviors. |
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Customer loyalty |
A consequence of consumer behavior |
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Customer satisfaction |
leads consumers to make repeated purchases, which also affects the overall value of the product. |
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Higher conversion rates |
increase with time and help a brand increase its public value and image |
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Influence |
is a strong influence on consumers. Social media channels impact the way consumers are exposed to products and services todayThese channels study consumer patterns, buying behavior, and psychological tendencies, and generate relevant advertisements, product pages, and information for consumers just by studying algorithms. |
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Decision-making |
The internet affects consumer decision-making thoroughly. Consumers are more likely to ask the opinions of others through social media channels regarding products and services. They are more likely to undertake surveys on products, research things they may need or things that tickle their fancy, and browse through different websites and pages to understand alternatives for products they may be looking to purchase |
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Social intelligence |
listening to a consumer, understanding what they want, their needs, and their expectations from a brand as regards product pricing, value, and utility. How a consumer perceives a brand, even the advertising and digital collateral of a brand can help businesses increase their profits |
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Motivation |
is what moves people. It is defined as an inner state of arousal. With the aroused energy directed to achieving a goal. The motivated consumer is energized, ready and willing to engage in a goal relevant activity. |
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Values |
Abstract, enduring beliefs about what is right/wrong, important or good/bad. Consumers are more motivated to attend to and process information when they find it relevant to their values |
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Needs |
a state of tension caused by disequilibrium in a consumer's internal state. |
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Goals |
Although goals are more concrete than needs, they can vary in being more concrete or abstract. Some goals are concrete, they are specific to a given behavior or action determined by the situation at hand |
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Promotion focused |
involves the motivation to achieve gains, with emphasis on aspirations and ideals and a preference for eager/approach strategies |
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Prevention Focused |
involves the motivation to avoid loss, with emphasis on obligations and responsibilities and a preference for vigilant/avoidant strategies |
