Chp 3) Consumer Behaviour & Target Audience Decisions

Consumer behaviour

Activities people experience when searching for, selecting, purchasing, using, evaluating, and disposing of products to satisfy their needs and desires.

Need recognition, information search, alternative evaluation, purchase decision, post-purchase evaluation

What are the steps in the Model of Consumer Decision Making? (in order)

Need recognition

What step is this in the Model of Consumer Decision Making?:

“Customer observes a need and is motivated to begin the process to resolve the felt need. It’s the difference between ideal state and actual state.”

Need recognition

These are the sources of ____________.

• Internal or external

• Complex or single

• New ones can arise from changes in the consumer’s situation

Self-actualization, esteem, social, safety, physiological

What are the Needs in Maslow’s Hierarchy of Needs? (in order)

Information search

What step is this in the Model of Consumer Decision Making?:

“Occurs once a consumer concludes that a need is satisfied with a product purchase. They understand the need precisely and gain product knowledge.”

Internal search

Accessing past experiences/knowledge stored in memory.

External search

Seek/acquire information from external sources such as advertising, other people, or public sources.

Risk, experience, time, importance, effort

How much information consumers seek and which sources depends on?

Information search

In the _________ stage, shoppers are in “active shopping mode”

Alternative evaluation

What step is this in the Model of Consumer Decision Making?:

“A consumer compares the brands identified as being capable to satisfy needs.”

Evoked

Brands identified as purchase options (subset of all brands) are the _______ set.

Inept

Brands that have been discounted by the consumer are the _______ set.

Inert

Brands consumers aren’t aware of are the _______ set.

Bundle of benefits

The outcome(s) from a market offering with varying levels of importance.

Bundle of attributes

The objective (i.e. price, quality) and subjective (attitude towards brand) varying levels of importance of a market offering.

Attribute, benefit

Advertisers communicate the link between a ______ and a ______.

This can be complicated by consumer reviews, recommendations, social media content, etc.

Functional, experiential, performance

What are the 3 types of benefits?

Purchase decision

What step is this in the Model of Consumer Decision Making?:

“The consumer stops searching for and evaluating alternative brands in the evoked set.”

Purchase decision

Additional decisions may be needed in the _______ step in the Model of Consumer Decision Making, such as:

• When to buy

• Where to buy

• How much to buy

Time delay

There can be a ______ between making a purchase decision and purchase itself.

Brand loyalty

Preference for a particular brand that results in its repeated purchase.

Post-purchase evaluation

What step is this in the Model of Consumer Decision Making?:

“Consumers explore a number of activities to assess the product’s performance.”

Satisfaction

A judgment that consumers make with respect to the pleasurable level of consumption-related fulfillment.

Cognitive dissonance

A feeling of psychological tension or post-purchase doubt a consumer experiences after making a difficult purchase choice.

Routine problem solving, limited (extended) problem solving, group decision making

What are the 3 types of decision making?

Routine problem solving

Occurs when a consumers purchase decisions are based on habit or brand loyalty.

Limited (extended) problem solving

Occurs when consumers have no product category experience or minimal brand knowledge, or their purchase criteria aren’t determined.

Group decision making

2 or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviour is interdependent.

Decider, influencer, consumer, purchaser, information provider, initiator

What are the 6 roles in family decision-making?

Target audience

What is the primary decision marketers make prior to other communication decisions?

Target market

Group of consumers toward which an overall marketing program is directed.

Segment, select, marketing positioning strategy

What are the 3 steps in selecting a target audience?

Situation analysis, target market process, marketing program development, promotion, target market

What are the 5 stages of the Marketing and Promotions Process Model? (in order)

Geographic, demographic, socioeconomic, psychographic, behaviour

What are the 5 segmentation variables when selecting a target audience?

Geographic

What segmentation variable is this when selecting a target audience?:

• Divides a market into different geographic units in which a marketing or promotional activity like advertising is viably delivered

• Consumers have different purchase criteria and buying behaviour

Demographic/socioeconomic

What segmentation variable is this when selecting a target audience?:

• People are treated as 1 group

• Homogeneity in consumer behaviour

Psychographic

What segmentation variable is this when selecting a target audience?:

• Lifestyle, values, personality, culture, and social class

Behaviour

What segmentation variable is this when selecting a target audience?:

• Divides according to actions (brand loyalty, category use, usage rate, situation, benefits sought)

Geodemographic

The PRIZM website that provides 68 lifestyle types based on income, urbanity, and life stage is an example of what type of segmentation?

Rossiter and Percy Perspective

Identifying and selecting the target audience for promotional communication is based on initially defining a target audience based on the current behaviour of consumers in terms of brand usage and product category usage.

Attitude-based

Research indicates _________ segmentation produces more conducive shopping behaviour compared to demographic and value approaches.

Brand switchers

Consumers who buy promotional planners brand but also buy other brands due to purchase situations, moods, etc.

• Exhibit strong loyalty compared to non-customers

• i.e. Gain with Febreze

New category users

Consumers that are not purchasing within the promotional planners product category.

• Life change impact can make them potential customers

• i.e. Smart Cars

Other brand switchers

Consumers who purchase a few different brands within a category, but not the promotional planner’s brand.

• Challenging to break into customer’s evoked set

• i.e. Milk

Other brand loyals

Consumers who purchase only one brand, which is not the promotional planner’s brand

• Difficult to change and not as profitable

• i.e. Samsung trying to convert loyal Mac users

Target audience profile

According to Rossiter and Percy perspective, after prioritizing the target audience in terms of customer groups, other segmentation variables like lifestyle or demographics are used to develop a complete _______.

Messages, media, IMC

What are the 3 profiles for a target audience profile?