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7 Cards in this Set

  • Front
  • Back

CONSUMER BEHAVIOUR

decision making behaviour of individuals and households who buy goods and services for personal consumption

CONSUMER INVOLVEMENT

degree of involvement (time, research, travel) a person is prepared to devote to a particular purchase

3 STAGES OF DECISION MAKING

1. habitual decision making


- low involvement decisions, low risk and frequently bought products




2. limited decision making


- limited involvement decisions, less frequently bought but familiar products




3. extended decision making


- high involvement decisions, high price, high risk, and unfamiliar products


- financial risk, social risk, functional risk

5 STAGES OF CONSUMER DECISION MAKING

1. need/want recognition


- occurs when person recognises discrepancy between a desired state and their actual state (what i have and what i would like to have)


2. information search


- extent of research varies with degree of involvement (online, word of mouth, company messages)


3. evaluation of option


- identify the ‘criteria’ that consumers use in making their choices in the category


4. purchase


- potential for influence at point of sale


5. post-purchase evaluation


- buyer continues to evaluate even after purchasing - affects subsequent decisions


- cognitive dissonance - buyer's remorse

3 CATEGORIES OF INFLUENCES ON DECISION MAKING




1. SITUATIONAL

- circumstances consumers find them in when they are making purchasing decisions or consuming the products


- physical


- social


- time


- motivational


- mood

3 CATEGORIES OF INFLUENCES ON DECISION MAKING




2. GROUP

Cultural Factors


- immediate experiential level (taste in music, food, clothes) and deeper more influential level (cultural values)


- power distance - degree of inequality among people that is acceptable in a culture


- uncertainty avoidance - extent to which people in culture feel threatened by uncertainty and rely on mechanisms to reduce it


- individualism - extent to which people focus on their own goals


- masulinity - extent to which traditionally masculine values are valued over traditionally feminine values




Sub Culture


- differ on some influential dimensions from broader culture


- share common attitudes, values and behaviours




Social Class


- individuals of similar social rank


- socio economic status


- income, education, occupation




Reference Groups


- group to which individual looks for guidance as to what are appropriate values, attitudes or behaviours


- influence is strong when individual lacks guide for behaviour and has a high social risk


- membership reference groups = groups to which individuals belong


- aspirational reference groups = groups which the individual would wish to be a member of


- dissociative reference groups = groups with which individual does not wish to be associated with


- opinion leaders = reference group member who provides relevant and influential advice about specific topic of interest to group members




Family


- usually most influence over behaviour


- family life cycle = stages through which most families pass


- young singles


- young marrieds


- parenthood


- post-parenthood


- dissolution


- autonomic decisions - household products purchased by husband or wife


- wife-dominant decisions


- husband-dominant decisions


- syncratic decisions - purchased by husband and wife acting jointlypester power by children

3 CATEGORIES OF INFLUENCES ON DECISION MAKING




3. INDIVIDUAL

Personal Characteristics




- demographics


- general make up of population in terms of objective, measurable characteristics


- used as part of the description and explanation of consumer behaviour




- lifestyle


- how they spend their time and how they interact with others


- actual lifestyle (more predictable) and preferred lifestyle (products aspirational or symbolic)


- lifestyle is partly a choice and partly determined by personality and demographic characteristics




- personality


- difficult to measure reliably


- balance seekers (balanced lifestyle)


- health conscious


- harmony seekers


- individualistic


- fun seekers


- success driven


- products expression of personality




Psychological Characteristics




- motivation


- internal drive to satisfy unfulfilled needs or achieve unmet goals


- Maslow’s hierarchy of needs


1. physiological


2. safety


3. love or belongingness


4 .esteem


5. self-actualisation


- choosing to buy a particular product


- buy a particular brand


- willing to pay a particular price


- preferring to shop through particular outlets




- perception


- psychological process that filters, organises and attributes meaning to external stimuli


- particular to individual


- selective exposure - actively seek out messages with which audience already agrees and ignore those which they disagree with


- selective attention - individual chooses to take in only those messages relevant to their needs


- selective distortion - individual’s tendency to perceive messages that are inconsistent with existing beliefs or attitudes in such as way as to reduce the inconsistency


- selective retention - tendency to remember only that info which is consistent with other beliefs and which is relevant to an individuals’ needs




- beliefs and attitudes


- mental map that consumer relies on when making judgements about problems that require solutions


- belief - descriptive or evaluative thoughts regarding knowledge or assessment of a thing


- attitude - desribes an individual’s relatively stable and consistent thoughts, feelings and behavioural intentions to an object or idea


- cognitive component - person’s awareness of and knowledge about object or issue


- affective component - feelings towards, or a approval of, the object or issue


- behavioural component - individual’s actions or intentions towards object or issue




-learning


- behavioural learning theories


- experience and repetition of behaviour


- cognition learning theories


- rational problem solving, emphasises acquisition and processing of new information


- more complex problems