Chapter 3- Consumer Behavior: How People Make Buying Decisions

Front 1

Physical Factors: (in terms of 'Situational Factors' that influence consumer buying behaviour)

Back 1

(atmospherics) are thosethat firms can control include the layout of a store, music played at stores,the lighting, temperature, and even the smells you experience. However thereare uncontrollable physical factors such as weather that also impact consumerbehavior.

Front 2

Social: (in terms of 'Situational Factors' that influence consumer buying behaviour)

Back 2

Situation of a consumer cansignificantly impact their purchasing behavior. Social factors such asobligation, expected behavior or a need to impress can encourage and discouragepurchases.

Front 3

Time: (in terms of 'Situational Factors' that influence consumer buying behaviour)

Back 3

Time can impact a consumer’s behavior, depending on their situation (hungry,cash-on-hand) at a certain time. Consumers purchases can be heavilyinfluenced by: 1) the right product, 2) in the right place, 3) at the righttime.

Front 4

Reasons for Purchase: (in terms of 'Situational Factors' that influence consumer buying behaviour)

Back 4

Reasonsfor Purchase impacts consumer behavior depending on whether the item theyare looking is needed quickly (emergency purchase) or not (special gift).The reason you are shopping, effects how long you will shop for.

Front 5

Moods: (in terms of 'Situational Factors' that influence consumer buying behaviour)

Back 5

Moods temporarily affect consumers spending patterns. Alternatively, consumersmay attempt to change their moods through spending patterns.

Front 6

Personality and Self-Concept: (in terms of 'Personal Factors' that influence consumer buying behaviour)

Back 6

The “Big Five” personality traits:

1) Openness or how open you are tonew experiences,

2) Conscientiousness or how diligentyou are,

3) Extraversion or how outgoing orshy you are, 4) Agreeableness or how easy you areto get along with, and

5) Neuroticism or how prone you areto negative mental states.

Front 7

Self concept Vs Ideal self: (in terms of 'Personal Factors' that influence consumer buying behaviour)

Back 7

Marketershave had better luck linking people’s self-concepts to their buying behavior. Yourself- concept is how you see yourself, be itpositive or negative. Your ideal self is howyou would like to see yourself. People buy products to enhance how they feel about themselves, to getthemselves closer to their ideal selves.

Front 8

Gender: (in terms of 'Personal Factors' that influence consumer buying behaviour)

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Gender-Men and women need and buy different products. They also shopdifferently and in general, have different attitudes about shopping. These are stereotypes,but there is some truth to them.

Front 9

Age: (in terms of 'Personal Factors' that influence consumer buying behaviour)

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Age- A consumers ageinfluences their purchasing decisions. There are 2 ages to consider: 1)Chronological age which is a persons actual age and 2) Cognitive age which isthe age an individual perceives themselves to be. Cognitive age is asignificant predictor of consumer behaviors.

Front 10

Lifestyle: (in terms of 'Personal Factors' that influence consumer buying behaviour)

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Psychographics combines thelifestyle traits of consumers and their personality styles with an analysis oftheir attitudes, activities, and values to determine groups of consumers withsimilar characteristics.

Front 11

Motivation: (in terms of 'Psychological Factors' that influence consumer buying behaviour)

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Motivation is the inward drive we have to get what we need. The hierarchy of needs: people have to fulfill their basic needs beforethey can begin fulfilling higher-level need. Knowing what needs consumers are trying to meet at anygiven time, help companies successfully market their products.

Front 12

Perception: (in terms of 'Psychological Factors' that influence consumer buying behaviour)

Back 12

Perception is how you interpret the world around you and make sense ofit in your brain, via you’re your different senses. It involves five external senses: taste, sight, hearing, touch andsmell. Usingdifferent types of stimuli, marketing professionals try to make you moreperceptive of their products whether you need them or not.

Front 13

Perceptionand retention factors: (in terms of 'Psychological Factors' that influence consumer buying behaviour)

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Selectiveperception: filters out information based on how relevant it is to you

Selectiveretention: forgetting information that contradicts a person's beliefs

Selectivedistortion: Misrepresentation of intended message

Shockadvertising: Surprising stimuli that can increase retention

Subliminaladvertising: Stealthy embedded messages in the media

Front 14

Consumers Learning: (in terms of 'Psychological Factors' that influence consumer buying behaviour)

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Learning is the process by whichconsumers change their behavior after they gain information or experience aproduct.

Operantconditioning: A type of behavior that’s repeated when it’s rewarded, sotherefore actions are determined by expected consequences.

Classicalconditioning: Stimuli is used to condition a target so that the associate theproduct with something different.

Front 15

Attitude: (in terms of 'Psychological Factors' that influence consumer buying behaviour)

Back 15

Attitudes are the mental positions or emotional feelings people haveabout products, services, companies, ideas, issues, or institutions. There are3 components of attitude: cognition, affection, and behavioral.

Front 16

Cultures: (in terms of 'Societal Factors' that influence consumer buying behaviour)

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Culture is the shared beliefs, customs, behaviors, and attitudes thatcharacterize a society. Culture prescribes how people should live and therefore has a hugeeffect on the things they purchase.

Front 17

Subcultures: (in terms of 'Societal Factors' that influence consumer buying behaviour)

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Subculture is a group of people within a culture who are different from the dominant culture but who have something in common with one another--common interests, vocations or jobs, religions, ethnic backgrounds, sexual orientations, and so forth.

Front 18

Social Class: (in terms of 'Societal Factors' that influence consumer buying behaviour)

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A social class is a groupof people who have the same social, economic, or educational status in society. higherclass= more luxury, lower class= necessity.

Front 19

Reference Groups: (in terms of 'Societal Factors' that influence consumer buying behaviour)

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Reference groups are groups a consumer identifies with and wants tojoin. Marketers capitalize on the consumer's desire to belike people in these groups.

Front 20

Opinion leaders: (in terms of 'Societal Factors' that influence consumer buying behaviour)

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Opinion leaders are people with expertise in certain areas. Marketers want these people to endorse their products.

Front 21

Family: (in terms of 'Societal Factors' that influence consumer buying behaviour)

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Most market researchers consider a person's family to be one of the biggestdeterminers of buying behavior. Childrenhave a great deal of influence over many household purchases.

Front 22

Low Involvement Decisions

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Low Involvement decisions are generally inexpensive, poses a low risk tothe buyer, and are routine. Such as:

Routine response behavior

Impulse buying

Front 23

Routine response behavior

Back 23

Routine response behavior - when consumers make automatic purchase decisionsbased on limited information or information they have gathered in the past.

Front 24

Impulse buying

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Impulse buying – Purchases that occur with no planning or forethought.

Front 25

High Involvement Decisions

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High Involvement decisions carry a high risk to buyers if they fail,are complex, and/or have high price tags and is where consumers engage in ‘extended problem solving’ where moretime is spent comparing different offerings. High-involvementdecisions are more likely to cause buyers post purchase dissonance.

Front 26

Limited problem solving

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Limitedproblem solving can fall somewhere between high and low involvement decisions. Consumersengage in limited problem solving when they already have some informationabout a good or service but search for a little more information.

Front 27

Stage 1: Need recognition

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Need recognition - consumers discover they have a need for aparticular product either through their own experiences or with somethinglacking in their environment. Marketers often try to stimulate consumers intorealizing they have a need for a product.

Front 28

Stage 2: Search forinformation

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Search for information – consumers, depending onthe product will seek external and internal information. Sources of informationmay include family, friends, magazine reviews, and Internet shopping and reviewsites.

Front 29

Stage 3: Product evaluation

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Product evaluation - consumers have a set of evaluative criteria that helps them in makinga purchasing decision. Evaluative criteria is the certain characteristics of aproduct the consumer considers when purchasing. Marketing professionals want toconvince consumers that their products meet those evaluative criteria.

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Stage 4: Product choice andpurchase

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Product choice and purchase-Consumers not only decide what product to buy, but how, when, and where to buyit.

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Stage 5: Postpurchase useand evaluation

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Postpurchase use and evaluation - Consumers not pleased with their purchases experience‘post purchase dissonance’ or "buyer's remorse.” Companies try to preventbuyer's remorse through warranties, money-back guarantees, follow-up support,etc., because they want repeat customers and ‘positive word-of-mouth’.

Front 32

Stage 6: Disposal of theproduct

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Disposal of the product - Often, how to dispose ofthe product after it has served its purpose influences a consumer's buyingbehavior. More companies recognize that being environmentally conscious sellsproducts. However, other companies engage in planned obsolescence in an effortto improve sales.