Consumer Behavior Exam

The digital ecosystem influences consumer behaviour through multiple

touchpoints. While (1) ________ provide ratings and feedback from other

consumers, (2) ________ use algorithms and personalisation to suggest

relevant products. Meanwhile, (3) ________ allow consumers to share

their own photos, videos, and posts about brands

AI Recommendations, user generated content, online reviews

Which of the following options CORRECTLY classifies the factors influencing consumer behaviour into external influences, internal influences, and bridge factors? Select ONE correct answer

External: Cultural factors, social factors, marketing activities. Internal: Psychological factors, demographic factors. Bridge: Privacy and trust, sustainability and ethics

The physical ecosystem influences consumer behaviour through different social and environmental factors. (1) ________ influence consumer decisions through colleagues and professional networks, while (2) ________ shape consumer experiences through store layouts, product displays, and atmospherics. Meanwhile, (3) ________ influence consumer preferences through shared norms, traditions, and values

Culture & society, workplace, retail environment

Which of the following statements about consumer learning is MOST accurate?

Consumers can learn from both direct and indirect experiences, including marketing communications, social interactions, and the consequences of previous behaviours

Which of the following scenarios BEST illustrates the difference between classical conditioning and operant conditioning in consumer behaviour?

Classical conditioning occurs when consumers associate a brand with a positive feeling through repeated exposure, while operant conditioning occurs when purchase behaviour is influenced by its consequences

Which of the following scenarios CORRECTLY distinguishes between problem recognition and opportunity recognition?

Problem recognition: Replacing a washing machine that has stopped working. Opportunity recognition: Purchasing premium headphones to improve the listening experience

Which of the following scenarios CORRECTLY distinguishes between active and latent consumer needs?

Active need: A consumer knows they need new running shoes because their current pair is worn out. Latent need: A consumer becomes interested in a standing desk after watching a demonstration of its benefits

Time pressure

Limited time can change or accelerate the purchase decision

Budget constraints

Available money limits what consumers can purchase

Product availability

Stock or accessibility can change the final choice.

Mood

How consumers feel can influence what and whether they buy

Shopping companions

Other people present can influence the final decision

Stakeholder

Person or group affected by a business

Target Market

Group a business wants to attract

Consumer behavior

The study of how individuals, groups, and organisations choose, buy, use and dispose of products, services, experiences and ideas

Who user consumer research?

Businesses, governments, nonprofits, organisations, consumers, society

Market segmentation

Dividing a large market into smaller groups of consumers with similar needs or characteristics

Marketing Segmentation: Four Steps

1) Identify consumer needs 2) Group consumers with similar needs 3) Describe each group 4) Select the groups to target

Marketing Mix (4Ps)

Product, price, promotion, place

Consumer decision process

Need recognition → information search → evaluation of alternatives → consumption → sharing and engagement → loyalty, repurchase, switching

Need recognition

Realise you need something

Information search

Look for information

Evaluation of alternatives

Compare options

Purchase decision

Decide whether to buy

Consumption

Use the product

Sharing and engagement

Share opinions or interact with the brand

Loyalty, repurchase, switching

Decide whether to return or choose another brand

True or False: The process isn’t always linear consumers can skip steps revisit them or abandon the purchase

True

External Influence

Cultural, social, situational, marketing, digital, technology & AI

Cultural

Values, traditions, beliefs, language, and social norms

Social

Family, friends, peers, reference groups, social status

Situational

Time pressure, shopping, environment, mood and occasion

Marketing

Product, price, place, promotion, packaging + branding

Digital

Social media, online reviews, apps, influencers, and e-commerce

Technology + AI

Algorithms, robots and automated recommendations

Internal factors

Demographic, personal, psychological

Demographic

Age, income, education, occupation, generation

Personal

Lifestyle, identity, and life stage

Psychological

Motivation, perception, learning, memory, attitudes, and emotions

Bridge factors

Privacy and trust + sustainability and ethics

Need recognition: Definition

When a consumer notices a difference between their current situation and their desired situation

Type of need recognition

Problem recognition, opportunity recognition, functional need, psychological need, active need, latent need

Problem recognition

Fix something negative

Opportunity recognition

Improve you situation

Functional need

Practical benefit

Psychological need

Emotional or social benefit

Active need

Already recognized

Latent need

Not yet recognized

What consumers recognize as a need depends on their

age and income + lifestyle and circumstance + identity and personal goals

Consumers may recognize needs through: Digital need recognition

Social media influencers + online reviews and advertising + user-generated content + AI recommendations

Predictive need recognition

Algoriths predict what consumers need before they recognize the need themselves

Marketers stimulate needs through

Highlighting problems, showing opportunities and benefits, compare current state + desired situations, use influence and testimonials, personalize recommendations, present aspirational lifestyles

Marketing can become manipulative through

Artificial urgency and scarcity, excessive tracking and hyperpersonalisation, infinite scrolling and engagement design, subscription traps and difficult cancellations, advertising aimed at children

Future trends

AI shopping assistance, virtual influencers, augmented reality, predictive commerce and automated purchasing

Information search: Definition

The process of looking information to help satisfy a recognized need

Two types of information search

Internal + external

Internal

Uses memory + past experience

External

Obtain information from outside sources

Evaluation of alternatives

Comparing available options to decide which provides the best value and meets your needs

Three types of decision making

Extended, limited, habitual

Extended

High involvement; extensive comparison

Limited

Moderate involvement; compare a few options

Habitual

Low involvement; little or no comparison

Types of attributes

Functional, emotional, social, economic

Economic

Is it worth the cost?

Benefits

Quality, preformance, convince, enjoyment, social values, and reassurance

Sacrifices

Money, time, effort, learning, costs, risks, missed opportunities

Compensatory rules

Consumers consider several attributes and a weakness in one area can be offset by a strength in another

Compensatory rules: Types

Simple + weighted additive

Simple additive

Add up scores across attributes

Weighted additive

Give a more important attribute greater weight

Non-compensatory rules

Consumers focus on specific requirements, a weakness in an important area cannot simply be offset by other strengths

Non-compensatory rules: Types

Lexicographic, elimination by aspects, conjunctive, disjunctive

Lexicographic

Choose the best option on the most important attribute

Elimination by aspects

Eliminate options that fail requirements, one attribute at a time

Conjunctive

Reject options that fail any minimum requirement

Disjunctive

Accept options that meet a high standard on at least one important attribute

Psychological influences

Perceived risk, trust, heuristics, emotions

Heuristics

Mental shortcuts that simplify decisions

How marketers influence evaluation

Postioning, branding, pricing, marketing communications, social proof

Purchase decision: Definition

The stage where a consumer decides whether to actually buy a product

Purchase intention

A consumer plans or wants to buy something

High purchase involvement

More thought, effort and comparison

Low purchase involvement

Faster, simpler decisions

Purchase decision types

Planned, partially planned, impulse, unplanned

Omnichannel

Consumer use multiple connected shopping channels, such as physical stores, websites and app

Showrooming

Examine a product in-store, then buy it online

Webrooming

Research online, then buy in store

Factors affecting the purchase

Situational and social

Situational

Time pressures, budget, availability, mood

Social

Family, friends, salespeople, and online recommendations

Future of purchasing

Automated purchasing, AI agents, immersive purchasing, frictionless purchasing

Consumer experience + consumption

How consumers use, experience and find meaning In products or sevices’s after acquiring them

Four types of consumption

Utitarian, hedonic, symbolic, experimental

Utilitarian

Practical benefits

Hedonic

Pleasure and enjoyment

Symbolic

Identity, status, belonging

Experimental

Memories and experiences

What shapes consumer experiences Ex

Expectations before consumption, what actually happens, emotions during the experience, memorable moments afterwards

How consumers use products

Intended use, different uses, usage frequency + intensity, alternative use or misuse