Flashcards
Chapter 1: What is Consumer Behaviour (CB)?
Q: What is consumer behaviour?
A: The study of how people buy, use, and react to products and services.
Q: What is the basic CB process?
A: Need → Want → Exchange → Costs & Benefits → Value
Q: What is an exchange?
A: Trading something you give up (money, time, effort) for something of greater value.
Q: What is consumption?
A: Using goods/services to create value.
Q: How are marketing and consumer behaviour connected?
A: Marketing tries to create value for consumers, while consumer actions affect marketers.
Q: What is relationship marketing?
A: Building long-term customer loyalty through repeated positive experiences.
Q: What are touchpoints?
A: Every direct interaction between a customer and a company (phone, email, store visit, etc.).
Q: What is market orientation?
A: A company culture focused on understanding and serving customers.
Q: What is undifferentiated marketing?
A: One product for everyone (mass market, e.g., Walmart).
Q: What is differentiated marketing?
A: Different products for different groups (e.g., Toyota with Scion, Toyota, Lexus).
Q: What is one-to-one marketing?
A: A unique product for each customer (e.g., Build-A-Bear).
Q: What is niche marketing?
A: Serving one small, unique segment (e.g., a company making only golf putters).
Q: What is internationalization?
A: When companies expand to global markets (e.g., Starbucks, McDonald’s).
Q: What role does technology play in CB?
A: It changes how people shop (online, mobile, social media) and creates big data.
Q: What is big data?
A: Massive amounts of customer information used to predict behaviours.
Q: What is predictive analytics?
A: Using data to predict what customers will do (e.g., “Customers who bought this also bought…”).
Q: What is the Internet of Things (IoT)?
A: Everyday products collecting and sending data (e.g., smart fridges, Fitbits).
Q: What is machine learning in marketing?
A: AI tools that automate tasks like email campaigns, social media ads, chatbots.
Q: What are major demographic changes?
A: More two-income households, smaller families, and growing markets like China & India.
Chapter 2: Value and the Consumer Behaviour Value Framework
Q: What is the Consumer Value Framework (CVF)?
A: A model showing all the internal and external factors that shape consumer behaviour.
Q: What are 3 internal influences?
A: Things inside the consumer: cognition, effects, personality/lifestyle.
Q: What are 3 external influences?
A: Social, cultural, environmental factors outside the consumer.
Q: What is cognition?
A: Thinking and mental processes (learning, problem-solving).
Q: What is affect?
A: Emotions and feelings tied to consumption.
Q: What are individual differences?
A: Personal traits like health-consciousness or environmental concern that shape behaviour.
Q: What is utilitarian value?
A: Functional, practical value (solving problems, accomplishing tasks).
Q: What is hedonic value?
A: Emotional, fun, or pleasure-based value (enjoying experiences).
Q: Can something provide both utilitarian & hedonic value?
A: Yes — e.g., eating at a fancy restaurant is both functional (food) and enjoyable (experience).
Q: What is value co-creation?
A: Both the company and the customer help create value (e.g., gym membership only works if you use it).
Q: What is customer lifetime value (CLV)?
A: The total long-term profit a company can expect from one customer.
Q: Formula for CLV?
A: CLV = NPV(Sales – Costs) + NPV(Equity from referrals/word-of-mouth).
Q: What is relationship quality?
A: The strength of the connection between a customer and a company.
Q: Why is relationship quality important?
A: Loyal customers are more profitable and bring in new customers through referrals.
Q: Why is marketing myopia?
A: A business approach that focuses only on quick profits and current products, instead of keeping up with changing customer needs and market trends.
Chapter 3: Consumer Learning Starts Here – Perception
Q: What are the 3 steps of the perceptual process?
A: Exposure → Attention → Comprehension.
Q: What is exposure?
A: When a consumer comes into contact with a stimulus (sight, sound, smell, touch, taste).
Q: What is sensation?
A: The immediate response of the senses to a stimulus.
Q: What is attention?
A: The focus of mental energy on certain stimuli (can’t pay attention to everything).
Q: What is comprehension?
A: The meaning a consumer assigns to what they sense and pay attention to.
Q: What is sensory marketing?
A: Marketing that directly appeals to the senses (e.g., music, scents, product feel).
Q: What is selective perception?
A: Consumers filter information:
Selective exposure (choose what to notice)
Selective attention (focus on certain things)
Selective distortion (twist info to match beliefs).
Q: What is clutter in marketing?
A: Too much information competing for attention, making it hard for consumers to focus.
Q: What is selective distortion?
A: When consumers interpret information to fit their existing beliefs.
Q: What is the Just Meaningful Difference (JMD)?
A: The smallest change that actually affects consumer behaviour (usually ~20% change).
Q: What is explicit memory?
A: Memory formed from intentional learning (what you try to remember).
Q: What is implicit memory?
A: Memory formed unintentionally, without active attention (like background ads).
Q: What is the mere exposure effect?
A: People prefer things they’ve seen before, even if they don’t remember seeing them.
Q: What is classical conditioning?
A: Learning through association (e.g., Pavlov’s dogs, brand paired with happy music).
Q: What is instrumental (operant) conditioning?
A: Learning through rewards or punishments (e.g., loyalty programs, discounts).
Chapter 4: Comprehension, Memory, and Cognitive Learning
Q: What is comprehension in CB?
A: Understanding the meaning of a message or stimulus.
Q: What is signal theory?
A: The idea that marketing messages send signals beyond their words (e.g., price-match = low prices).
Q: What message factors influence comprehension?
A:
Physical characteristics (color, font, size, sound)
Simplicity vs. complexity (simple = easier to understand)
Congruity (does it fit with surroundings?)
Figure-ground distinction (what is the focus vs. background?)
Language (literal vs. figurative language)
Message source (celebrity, friend, salesperson).
Q: What makes a source effective in marketing?
A: Likeability, attractiveness, expertise, trustworthiness.
Q: What is counterargument vs. support argument?
A: Counterargument = consumer disagrees with the message.
Support argument = consumer agrees with the message.
Q: What consumer factors affect comprehension?
A:
Intelligence/ability
Prior knowledge
Expectations (what they think will happen)
Physical limits (like vision or hearing).
Q: What is information intensity?
A: Too much information makes it harder to comprehend.
Q: What is framing?
A: The way information is presented changes its meaning (e.g., “90% fat-free” vs. “10% fat”).
Q: What is priming?
A: Exposure to one stimulus influences how another stimulus is perceived (e.g., seeing healthy ads before choosing food).
Q: What is sensory memory?
A: Very short-term memory from senses (lasting only seconds).
Q: What is workbench (short-term) memory?
A: Memory where info is processed and actively used.
Q: What is long-term memory?
A: Permanent storage of information (brands, experiences).
Q: What helps move info into long-term memory?
A: Repetition, dual coding (words + images), meaningful encoding, chunking (grouping info).
Q: What is associative network?
A: A mental network of concepts linked together (brand names linked with feelings, slogans, logos).
Q: What is a schema?
A: A mental framework of knowledge (e.g., “fast food” schema = burgers, fries, quick service).
Q: What is a prototype?
A: The best example of a category in your mind (e.g., “Coke” for soda).
Q: What is a script?
A: Knowledge of what normally happens in a situation (e.g., what to expect in a restaurant).
Chapter 5: Motivation, Personality, and Lifestyle
Q: What is motivation?
A: The drive to satisfy a need or want.
Q: What is Maslow’s hierarchy of needs (bottom to top)?
A: Physiological → Safety → Love/Belonging → Esteem → Self-Actualization.
Q: What is utilitarian motivation?
A: Motivation to solve a problem or achieve something useful.
Q: What is hedonic motivation?
A: Motivation to experience fun, pleasure, or excitement.
Q: What is regulatory focus theory?
A: Consumers focus either on:
Prevention (avoiding risks/problems)
Promotion (gaining rewards/benefits).
Q: What is involvement?
A: How personally relevant a product or decision is to a consumer.
Q: What is product involvement?
A: Ongoing interest in a product category (e.g., fashion, cars).
Q: What is situational involvement?
A: Interest only for a specific purchase (e.g., buying a washing machine once).
Q: What is enduring involvement?
A: Long-term passion (e.g., love for photography).
Q: What is emotional involvement?
A: Strong emotions tied to a purchase (e.g., buying a wedding dress).
Q: What is personality?
A: Unique psychological traits that influence behaviour.
Q: What is the psychoanalytic approach to personality?
A: Freud’s idea: Id (pleasure), Superego (rules), Ego (balance).
Q: What are trait approaches to personality?
A: Focus on specific traits (e.g., introversion, materialism, innovativeness).
Q: What is lifestyle?
A: The way a person lives, including activities, interests, and opinions (AIOs).
Q: What is psychographics?
A: The study of consumers’ lifestyles, values, and activities.
Q: What is self-concept?
A: How a person sees themselves (actual self, ideal self, social self).
Q: What is self-congruency theory?
A: Consumers prefer brands that match their self-image.