MKT Chapter 6:

What is consumer behavior?

The processes consumers use to make purchase decisions, use and dispose of products, and become influenced to buy.

What two things must marketers understand about consumer behavior?

That consumer preferences always change and how consumers make decisions

What is product value?

How worthwhile a purchase is to a consumer

What is perceived product value?

The benefits a consumer expects before buying

What is utilitarian value?

Practical benefits that help solve a problem or complete a task

What is hedonic value?

Enjoyment, fun, or pleasure gained from the product

What is the 5-step decision-making process when buying something:

Need recognition, information search. evaluation of alternatives, purchase, post purchase behavior

What is need recognition?

Consumer realizes a gap between their current state (have) and desired state (want)

What is a want?

A specific product or service that can satisfy the need

What is stimulus?

Anything that grabs attention through the five senses

What is an internal information search?

Remembering past experiences

What is an external information search?

Looking for information from outside sources

What is a non-marketing-controlled source of information?

Product info sources not associated with advertisements or promotions (friends, social media)

What is a marketing-controlled source of information?

Product info sources from marketer’s promotions (ads, websites)

What is the marketing goal?

Make consumers notice the "want-got gap" (difference between haves and wants)

What affects how much an individual researches?

Perceived risk, knowledge, experience, level of interest

What is an evoked set?

The group of brands a consumer seriously considers

With what criteria do consumer compare products?

Price, quality, features, brand

What is a nudge?

A small influence encouraging a behavior.

What’s an example of a nudge?

"Only 2 left in stock!"

What are examples of internal information?

Memories and past experiences

What are examples of external information?

Ads, reviews, friends, social media, websites

The buying experience is not always ____ or _____?

Logical or rational

Even if consumers use their learning and experience, what still affects the purchase?

Emotions

What decisions are made during the purchase stage?

Whether, when, what, where, and how to buy.

What are the three types of purchases?

Planned, partially planned, and impulse purchase

What is a planned purchase?

A purchase made after extensive information gathering

What is a partially planned purchase?

Knowing the product category but deciding on the brand later

What is an impulse purchase?

Often low-price items on sale or purchased with a coupon, often triggered by a nudge

What is psychological ownership?

Feeling a product is "mine," which increases attachment and willingness to pay

What is post purchase behavior?

How much a consumer's expectations of a purchase are fulfilled and whether they’re they satisfied or dissatisfied

What is cognitive dissonance?

Doubt or buyer's remorse after making a purchase

What is the jilting effect?

Losing access to a highly desired option that was expected.

How do marketers limit cognitive dissonance?

Through post-purchase communication and by providing excellent customer service

What is involvement?

The amount of effort spent researching, evaluating, and choosing a product

What is routine response behavior?

Low-involvement decisions for frequently purchased inexpensive products

What are the levels that consumers make purchases in?

Involvement (effort), time needed to make the decision, cost, information search required, alternatives considered

What is limited decision making?

Moderate research for somewhat familiar purchases

What is extensive decision making?

Significant research and comparison for expensive or important purchases

What four factors affect involvement?

Previous experience, interest, perceived risk, and social visibility

What is product involvement?

When a product category is personally important to a consumer

What is situational involvement

When circumstances make a purchase more important than usual (ex: wedding flowers)

What is shopping involvement?

When consumers enjoy the shopping process itself

What is showrooming?

Examining a product in-store but purchasing it online to search for a better price

What is enduring involvement?

An ongoing interest in a product category

What is emotional involvement?

Emotional attachment to a purchase or consumption activity

How does previous experience affect involvement?

More experience = less involvement

How does interest affect involvement?

involvement = related to consumer degree of interest

How does perceived risk affect involvement?

If making the wrong choice has serious consequences = involvement increases

How does social visibility affect involvement?

If others will see or judge the product = involvement increases

What are the stages of the consumer decision journey?

Research —> Evaluate Alternatives —> Purchase —> Advocate & Bond

What is automation?

Technology that makes the buying process faster and easier

What is personalization?

Tailoring experiences to individual consumers

What is contextual interaction?

Providing relevant information at the right point in the buying process

What is journey innovation?

Creating additional value through partnerships or complementary services

How do you market to high involvement categories?

Engage in extensive & informative promotions

How do you market to low involvement categories?

In-store promotion, targeted mobile ads, offer limited availability products

Who has more power, consumers or marketers?

Consumers

Why do consumers have more power now? What can they do?

Technology has allowed people to share likes / dislikes online, compare prices instantly, read reviews, find deals, get fast delivery

What is research in the consumer decision journey?

A consumer sees a stimulus and starts researching products.

What is evaluate alternatives in the consumer decision journey?

Consumer compares options using info from: friends, reviews, competitors, etc

What is purchase in the consumer decision journey?

Consumer decides whether to buy

What is advocate & bond in the consumer decision journey?

If a consumer has a positive experience they might buy again, recommend, and become loyal

What is a satisfied customer?

A customer who repeatedly buys because they are pleased with the product

What is a committed customer?

A customer with a strong emotional connection to a brand

What is churning?

Customers switching brands

Why does churning occur?

From customer dissatisfaction or heavy competition

What are the four major influences on consumer decisions?

Cultural, Social, Individual, and Psychological

Which influence is considered the most important?

Cultural influences

What is culture?

Shared values, beliefs, norms, and behaviors passed through generations

What is a subculture?

A group within a larger culture that has unique values and behaviors

What is social class?

A group of people with similar status based on income, occupation, and wealth

What factor can change depending on the situation / environment?

Psychological influences

What are the traits of culture?

It’s pervasive, function, learned, and dynamic

Why is social class important to marketers?

Indicates medium to use for promotions, determines where to best distribute products

Why do consumers seek out the opinion of others?

To reduce their search and uncertainty, and for guidance on unfamiliar products

What is a reference group?

A group that influences a person's attitudes or purchasing behavior.

What is a primary membership group?

A close, informal group such as family or friends.

What is a secondary membership group?

A more formal group such as a club or professional organization.

What is an aspirational reference group?

A group a person wants to join or be like.

What is a nonaspirational reference group?

A group a person does not want to associate with.

What is a norm?

A value or behavior considered acceptable by a group.

What is an opinion leader?

Someone whose opinions influence others' decisions.

What do people rely on more than marketing?

Other’s opininos

What implications do reference groups have?

Serve as info sources and influencers, affect aspiration levels, and constrain or stimulate consumer behavior

Who must marketing managers sway to market their product?

Opinion leaders

What is often the strongest influencers on values and buying behaviors?

Family

What are the roles when a family buys something?

Initiator, influencer, decision maker, purchaser, consumer

Who is the initiator?

The person who suggests making a purchase

Who is the influencer?

The person who provides advice or opinions

Who is the decision maker?

The person who decides whether the purchase will occur

Who is the purchaser?

The person who buys the product

Who is the consumer?

The person who uses the product

What is a separated self-schema?

Seeing oneself as independent and unique

What is a connected self-schema?

Seeing oneself as part of a larger group

What is personality?

The consistent way a person behaves and reacts

What is self-concept?

How a person views themselves

What is real self-image?

How someone actually perceives themself

What is ideal self-image?

How someone would like to be perceived