Chapter 4 Marketing

What is consumer behavior?

The study of how individuals and organizations use resources, especially time and money, to satisfy needs.

Why do marketers study consumer behavior?

To understand what consumers think, feel, and do so they can create products, messages, and experiences that connect with customers.

What is B2C marketing?

Business-to-Consumer marketing; marketing products or services directly to individual customers. Examples: restaurants, car dealerships, and barber shops.

What is B2B marketing?

Business-to-Business marketing; marketing products or services to other organizations.

What are the five stages of the consumer decision-making process?

Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.

What is need recognition?

The consumer recognizes a problem or need that must be satisfied.

What is information search?

The consumer searches for information about products or services that could satisfy a need.

What is evaluation of alternatives?

The consumer compares available options before making a purchase.

What is the purchase decision stage?

The consumer chooses and buys a product or service.

What is post-purchase evaluation?

The consumer evaluates whether the product or service met expectations after buying it.

Is the consumer decision-making process always linear?

No. Consumers may skip stages or move between stages, and completing one stage does not guarantee they will move to the next.

What is ritual consumption?

Repeated patterns of buying and using products over time; routine purchasing.

Why do marketers encourage ritual consumption?

To increase customer lifetime value, create more predictable revenue, and maintain steady sales.

What is a reminder purchase?

An unplanned purchase that occurs when something in the store reminds a shopper that they need an item.

What is an example of a reminder purchase?

Seeing toothpaste in a store and remembering that you are running out at home.

What is an impulse purchase?

A purchase made with little or no deliberation, often because of a sudden urge.

What is an example of an impulse purchase?

Buying candy at checkout or purchasing a snack you did not plan to buy.

What is the difference between a reminder purchase and an impulse purchase?

A reminder purchase occurs because you remember a need; an impulse purchase occurs because you suddenly want an item.

What are reference groups?

People or groups that influence a person's attitudes, behaviors, and buying decisions.

What is a membership reference group?

A group you currently belong to, such as friends, teammates, or classmates.

What is an aspirational reference group?

A group you want to be part of, such as successful professionals, athletes, or people with a luxury lifestyle.

What is a dissociative reference group?

A group you try to avoid being associated with.

What is an example of a dissociative reference group in aviation?

A traveler avoids a budget airline because they do not want to be associated with the stereotype of being a cheap flyer.

What is an opinion leader?

An influential person whose recommendations shape other people's opinions and choices.

What is an example of an opinion leader?

Stephen Curry endorsing Under Armour basketball sneakers and influencing consumers to consider buying them.

How do social media influencers affect consumer behavior?

They influence trends, attitudes, and purchasing decisions through their recommendations and content.

What is sensory marketing?

Using the five senses—sight, sound, smell, taste, and touch—to influence how consumers feel about products and make buying decisions.

What is an example of sensory marketing?

Toblerone's unique triangular chocolate shape makes the product easy to recognize and remember.

What is motivation?

The force that drives people to take action to satisfy a need or achieve a goal.

How does motivation affect consumer behavior?

It helps explain why consumers want certain products and what needs they are trying to satisfy.

What is Maslow's Hierarchy of Needs?

A model that organizes human needs into five levels, from basic survival needs to personal growth and fulfillment.

What are the five levels of Maslow's Hierarchy of Needs in order?

Physiological, safety, love and belonging, esteem, and self-actualization.

What are physiological needs?

Basic survival needs such as food, water, sleep, and shelter.

What is a marketing example of a physiological need?

Groceries, restaurants, bottled water, or housing.

What are safety needs?

Needs for security, protection, stability, and health.

What is a marketing example of a safety need?

Car safety features, insurance, alarm systems, or healthcare.

What are love and belonging needs?

Needs for connection, friendship, relationships, acceptance, and belonging.

What is a marketing example of a love and belonging need?

Dating apps or services that help people form relationships and connections.

What are esteem needs?

Needs involving confidence, respect, achievement, recognition, and status.

What is a marketing example of an esteem need?

Luxury brands, awards, premium memberships, or top-tier products.

What is self-actualization?

The desire to reach one's potential, achieve personal goals, and experience personal fulfillment.

What is a marketing example of self-actualization?

A basketball fantasy camp that helps people pursue personal growth and achievement.

What is an attitude?

A person's overall positive or negative evaluation of a brand, product, idea, or behavior.

What is the ABC Model of attitudes?

A model explaining attitudes through three connected parts: Affective, Behavioral, and Cognitive.

What does A stand for in the ABC Model?

Affective; the feelings or emotional reactions a person has toward a product or brand.

What is an example of the affective component?

Thinking that a Rolex watch feels luxurious and impressive.

What does B stand for in the ABC Model?

Behavioral; a person's actions, past behavior, or intentions toward a product or brand.

What is an example of the behavioral component?

Wanting to purchase a Rolex watch someday.

What does C stand for in the ABC Model?

Cognitive; a person's beliefs and thoughts about a product or brand.

What is an example of the cognitive component?

Believing that Rolex watches are high quality, reliable, and hold their value.

How do marketers try to shape consumer attitudes?

By influencing what consumers think, feel, and do.

What does involvement mean in consumer behavior?

How important or personally relevant a purchase feels to a consumer.

How does involvement affect a purchase decision?

Higher involvement generally means more time, effort, research, and thought.

What are low-involvement products?

Products that are usually inexpensive, purchased frequently, and low risk, requiring little thought or comparison.

What are examples of low-involvement products?

Everyday items such as toothpaste, snacks, and other inexpensive routine purchases.

What are high-involvement products?

Products that are important, expensive, or risky and require more research and careful evaluation.

What are examples of high-involvement products?

Houses, cars, and major purchases that require significant research.

What is the main difference between high- and low-involvement purchases?

High-involvement purchases require more research and effort because they feel more important or risky; low-involvement purchases are usually quick and routine.

Which airline scenario demonstrates high involvement?

A family spends weeks comparing airlines, reviews, safety ratings, baggage policies, seat comfort, and loyalty benefits before booking an international vacation.

Why is researching airlines for an international vacation a high-involvement decision?

The purchase is important and may involve significant costs and perceived risks, so the family invests considerable time and effort.

Which airline scenario demonstrates low involvement?

A traveler quickly books the cheapest available one-hour flight without comparing airlines.

Why is buying a snack box on a flight generally a low-involvement decision?

It is usually a small purchase that requires little research or comparison.

What is a common example of habitual low-involvement behavior?

Selecting the same airline out of habit without considering alternatives.

How can in-store displays influence consumer behavior?

They can attract attention and encourage quick, low-involvement purchases.

True or false: Avoiding a budget airline because you do not want to be associated with the cheap-flyer stereotype is an example of a dissociative reference group.

True. The traveler is avoiding an association with a group or stereotype they do not want to identify with.

True or false: Consumers always complete all five stages of the decision-making process.

False. Consumers may skip stages or move through the process differently.

True or false: Impulse purchases usually involve extensive research and careful comparison.

False. Impulse purchases usually involve little or no deliberation.

True or false: Membership reference groups are groups a consumer hopes to join someday.

False. Those are aspirational reference groups. Membership groups are groups the consumer already belongs to.

True or false: The cognitive component of the ABC Model refers to feelings.

False. Cognitive refers to beliefs and thoughts; affective refers to feelings.

True or false: High-involvement purchases generally involve greater perceived risk and more research.

True.

True or false: Sensory marketing uses only sight to influence buying decisions.

False. It can use all five senses: sight, sound, smell, taste, and touch.