Chapter 3- Understanding Consumer Markets & Buying Behavior

What is consumer buying behavior?

Decisions and actions people take to buy products for personal use.

What is the consumer market?

You and all other consumers

what consumer actions Marketers seek to understand?

• -          Opinions & attitudes impact success

  -          Understand influence of what, when, where, and how

  -          Develop better strategies

What better developed strategies are used under consumer behavior?

Use of Psychology & sociology

What are the buyer characteristics in the Buyer's Black Box?

• Beliefs

• Attitudes

• Motives

• Perceptions

• Values

What are the two things used to understand types of consumer buying behavior?

Degree of involvement and perceived differences between brands.

What types of categories fall under degree of involvement?

• low - Limited problem solving

• Impulse buying

• Habitual decision making

Habitual Decision Making

Low involvement; buying something routinely with little or no thought.

Extended Problem Solving

High involvement; spending a lot of time researching and comparing options before buying.

What does a low difference between brands mean?

Brands are easy to substitute.

What does a high difference between brands mean?

Brands have a variety of different features.

What are the 5 steps of the consumer purchasing decision process?

1. Need recognition/problem awareness

2. Information search

3. Evaluation of alternatives

4. Purchase

5. Post-purchase evaluation

What is need recognition/problem awareness?

Recognizing a difference between your actual condition and desired state.

Can need recognition happen quickly or slowly?

Yes. It can be rapid or slow.

What can cause need rapid or slow recognition?

Internal or external stimuli.

What are the two types of stimuli?

Internal and external.

What are the two types of information search?

Heightened attention and active information search.

What factors affect information search?

• Cost vs. benefit

• Locus of control

• Perceived risk

What are the types of perceived risk?

• Performance

• Financial

• Social

• Safety

What happens during evaluation of alternatives?

Consumers compare their choices.

What is a consideration/evoked set?

The group of choices or brands a consumer considers.

What type of brands do consumers often prefer?

Familiar brands.

What choices are made during the purchase step?

What to buy, where to buy, and how to buy.

What do consumers determine when making purchase criteria?

Attributes.

What are decision heuristics?

Shortcuts used to make purchase decisions.

What are the 3 most common decision heuristics on your exam?

⭐ Brand, Price, Packaging.

What else does the consumer consider when purchasing?

Value.

What happens during post-purchase evaluation?

·         Customer satisfaction:

·         Avoid post-purchase cognitive dissonance

·         Customer loyalty

·         Negative WOM (worth of mouth) &/or reviews

What are the 3 main factors that influence consumer buying behavior?

• Psychological factors

• Sociocultural factors

• Situational factors

What is used to explain consumer motivation?

Maslow's Hierarchy of Needs.

What are the 5 levels of Maslow's Hierarchy of Needs?

• Physiological

• Safety

• Social/Love

• Personal/Esteem

• Self-actualization

What is perception?

How you take in and use information through your senses.

What are the 3 types/processes of perception?

• Selective attention

• Selective distortion

• Selective retention

What are the 3 parts of attitudes?

• Beliefs\n- Feelings\n- Behavior

What are beliefs?

What we think is true — the head.

What are feelings?

How we feel — the heart/affect.

What is behavior in attitudes?

How a person's attitude affects what they do.

What influences consumer learning?

Experience/information, and behavior.

What falls under self-concept?

Lifestyle and personality.

What falls under sociocultural factors?

• Family

• Reference groups

• Culture

What is associated with family?

Consumer socialization.

What are the 3 types of reference groups?

• Membership

• Aspirational

• Dissociative

What is a membership reference group?

A group you belong to.

What is an aspirational reference group?

A group you want to be like or join.

What is a dissociative reference group?

A group you do NOT want to be like.

What falls under culture?

Subcultures and consumer misbehavior.

What are the 3 situational factors?

• Shopping situation

• Purchase situation

• Temporal situation

What is a shopping situation?

The environment where shopping occurs.

What is a purchase situation?

The social situation, such as who you are buying for.

What is a temporal situation?

The consumer's mood/internal situation.