Introduction to Consumer Behaviour Flashcards

Comprehensive practice flashcards in question-and-answer format reviewing core concepts, decision stages, learning theories, and ecosystems from the Consumer Behaviour lecture.

How does the focus of a "Customer" differ from that of a "Client"?

A customer focuses on the transaction and purchase relationship with a business, whereas a client involves an ongoing, personalized, or professional relationship rather than a single transaction.

How is the field of study of "Consumer Behavior" defined?

The field of study focused on understanding the processes individuals, groups, and organizations use to select, secure, use, and dispose of products, services, experiences, and ideas.

What are the four steps of market segmentation?

1) Identify consumers' needs, 2) Group consumers with similar needs, 3) Describe each segment, and 4) Select target segments.

What are the six sequential stages of the Consumer Decision Process?

Needs recognition, information search, alternative evaluation, purchase, consumption (use), and evaluation.

What are the bridge factors that link internal and external influences on consumers in the marketplace?

Privacy and Trust (including privacy concerns, data security, brand trust, platform trust, AI trust, and transparency) and Sustainability and Ethics (including sustainability, environmental concerns, ethical consumption, corporate responsibility, fair trade, and animal welfare).

According to the Gap Model of Need Recognition, when does need recognition occur?

Need recognition occurs when there is a perceived gap between the consumer's current state (what the consumer has now) and their desired state (what the consumer wants).

What is the key difference between problem recognition and opportunity recognition?

Problem recognition occurs when consumers identify something negative that needs fixing, whereas opportunity recognition occurs when consumers identify a chance to improve their situation.

How do active needs differ from latent needs?

Active needs are needs consumers are already aware of, while latent needs are needs consumers have not yet recognized until they are exposed to a trigger.

What is predictive need recognition?

A concept where algorithms identify needs before consumers consciously recognize them.

What is the difference between internal and external information search?

Internal search relies on memory and prior experience, is fast, requires low effort, and is common for familiar products. External search gathers information from the environment, requires additional effort, and is common for unfamiliar or high-risk products.

How do extended, limited, and habitual decision making differ in terms of consumer involvement and alternative evaluation?

Extended decision making features high consumer involvement and extensive comparison; limited decision making features moderate involvement and comparing a few alternatives; habitual decision making features low involvement with little or no evaluation.

What differentiates compensatory decision rules from non-compensatory decision rules?

Compensatory decision rules involve consumers considering all relevant attributes before deciding (e.g., Simple Additive and Weighted Additive), whereas non-compensatory rules focus on one or a few important attributes (e.g., Lexicographic, Elimination-by-Aspects, Conjunctive, and Disjunctive).

What is the intention-behaviour gap in consumer purchasing?

The discrepancy between purchase intention (a consumer's willingness or plan to make a purchase) and actual behavior (what the consumer actually does in terms of observable purchasing or non-purchasing actions).

What is the difference between showrooming and webrooming?

Showrooming occurs when consumers explore or experience a product in a physical store but purchase it online for better price or convenience. Webrooming occurs when consumers research and compare products online but purchase them in-store to confirm the decision with a physical experience.

What is frictionless purchasing?

Purchasing where technology reduces the time, effort, and number of steps required to complete a purchase, making the transaction seamless and narrowing the gap between wanting something and completing the transaction.

How does utilitarian consumption differ from hedonic consumption?

Utilitarian consumption focuses on practical benefits and solving a problem, whereas hedonic consumption focuses on pleasure, enjoyment, sensory experiences, and emotions.

What is symbolic consumption?

Consumption where products, services, or brands are used by consumers to express their identity, values, status, lifestyle, or belonging.

What is a focus group, and what is its standard participant size?

A qualitative research method where a small group of people (usually 5 to 10) gathers to talk about a specific topic, product, or idea under the guidance of a leader to explore feelings, thoughts, and reactions.

In consumer research, how do the purposes of qualitative focus groups and quantitative surveys complement each other?

The qualitative focus group helps discover what might matter, whereas the quantitative survey measures how much it matters and how common those views are across a larger group.

What are the three dimensions of consumer engagement?

Cognitive engagement (Thinking/Attention), Emotional engagement (Feelings/Connection), and Behavioural engagement (Actions/Participation).

What are push and pull factors in brand switching?

Push factors are reasons causing a consumer to leave a brand (such as bad experiences, price increases, or poor quality), while pull factors are reasons that make an alternative brand attractive (such as better prices, better features, better reputation, or better experience).

What sequence describes the development of consumer loyalty?

Positive Experience → Satisfaction → Trust → Preference → Repurchase → Loyalty.

What switching costs may keep a consumer with a brand beyond financial costs?

Time, physical or mental effort, learning a new system, losing accumulated rewards or status, and uncertainty.

How do classical conditioning and operant conditioning operate in consumer behavioural learning?

Classical conditioning occurs when consumers form associations between stimuli that repeatedly appear together (e.g., Brand + Happiness). Operant conditioning occurs when the consequences of a behaviour influence whether it is repeated (Behavior → Consequence → Future Behaviour, e.g., Purchase + Reward).

What is observational learning in the context of consumer behaviour?

Learning that occurs when consumers learn by observing the choices, usages, outcomes, and experiences of others (such as peers, influencers, or family) without needing direct personal experience.

What are the three memory processes that influence consumer decision-making?

Encoding (getting information into memory), Storage (retaining information over time), and Retrieval (accessing stored information when needed).

What is the physical consumer ecosystem?

The network of people, places, objects, institutions, and cultural environments that consumers encounter in the physical world and that can influence their behavior.

What five types of cues does the physical environment provide to consumers?

Sensory cues, Spatial cues, Social cues, Commercial cues, and Cultural cues.

How is a social media algorithm defined within the digital ecosystem?

A set of rules and calculations that platforms use to select, rank, and recommend content to users based on signals such as their interests, interactions, and previous behavior.

What does co-creation refer to in the context of consumer engagement?

An interactive process where consumers actively contribute ideas, feedback, designs, content, solutions, and innovation to a brand or product.