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MP Chapter 4
Understanding Consumer Behavior
| Term | Definition |
|---|---|
| consumer behavior | The actions a person takes in purchasing and using products and services. |
| purchase decision process | The stages a buyer passes through in making choices about what which products or services to buy. |
| 5 stages in the purchase decision process | -problem recognition -information search -alternative evaluation -purchase decision -postpurchase behavior |
| problem recognition | The initial step in the purchase decision, perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. |
| information search | Searching for information about the situation. Two types of searches: internal and external. |
| internal search | When you scan your memory for previous experiences with products or brands. |
| external search | This is needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low. |
| 3 types of sources for the external search | -personal sources (people who the consumer trusts) -public sources (product rating reports, government agencies) -marketer-dominated sources (information from sellers ie: advertisements, company websites, salespeople, etc.) |
| alternative evaluation | Assessing value. You as the consumer develop value criteria for the item that you are looking to buy. Using this criteria you compare different brands or models against each other to get the best fit for you. |
| evaluative criteria | Factors that represent both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands. |
| consideration set | The group of brands that you would consider from among all the brands of which you are aware in the product class. |
| purchase decision | From whom to buy and when to buy are the two questions answered in this stage. Purchase decision simultaneously includes evaluation of both product attributes and seller characteristics. When to buy has many factors that need to be considered. |
| postpurchase behavior | After purchase the consumer compares it with his or her expectations and is either dissatisfied or satisfied. |
| cognitive dissonance | The feeling of postpurchase psychological tension or anxiety. |
| involvement | The personal, social, and economic significance of a purchase to the consumer. |
| levels consumer involvement | -High, at least one of the following is met (its expensive, has serious personal consequences, reflects on someone's social image). -Low, barely involve much thought such as hand soap or toothpaste. |
| 3 types of problem solving | -Extended problem solving -Limited problem solving -Routine problem solving |
| extended problem solving | Each stage of the purchase decision is used and given considerable time and effort to devote towards searching for information, IDing and evaluating alternatives. Several brands are in the consideration set. High-involvement purchase situations mainly. |
| limited problem solving | Consumers typically seek information/rely on a friend to help evaluate alternatives. Moderate number of attributes are used. This level would be used to say pick a lunch spot, or any other situation where the consumer has little time or effort to spend. |
| routine problem solving | Consumers recognize a problem, make a decision, and spend little effort seeking info and evaluating alternatives. The purchase process is a habit and typifies low-involvement decision making. Mainly used for the low-cost, frequently purchased items. |
| marketing a low-involvement, leading market brand | Attention is placed on: -maintaining product quality -avoiding stockout situations so that buyers don't substitute a competing brand -repetitive advertising messages that reinforce a consumer's knowledge or assure the buyers they made the right choice |
| 5 situational influences | These influences have an impact on the purchase decision process: -the purchase task -social surroundings -physical surroundings -temporal effects -antecedent states |
| purchase task | The reason for engaging in the decision. |
| social surroundings | The other people present when a purchase decision is made, may also affect what is purchased. |
| physical surroundings | Decor, music, and crowding in retail stores may alter how purchase decisions are made. |
| temporal effects | Time of day or the amount of time available will influence the consumer. |
| antecedent states | Consumer's mood or the amount of cash on hand can influence purchase behavior and choice. |
| marketing mix influences | The 4 Ps: -product -price -promotion -place |
| psychological influences | These are the influences that drive how and why consumers behave as they do: -motivation and personality -perception -learning -values, beliefs, and attitudes -lifestyle |
| motivation | The energizing force that stimulates behavior to satisfy a need. |
| hierarchy of needs (5 classes of need) | Motivation comes from a need, once that need is met it is no longer a motivator. The 5 classes of need are: -physiological needs (bottom) -safety needs -social needs -personal needs -self-actualization needs (top) |
| physiological needs | Basic survival needs that must be satisfied first. |
| safety needs | Involve self-preservation as well as physical and financial well-being. |
| social needs | Concern love and friendship. |
| personal needs | Need for achievement, status, prestige, and self-respect. |
| self-actualization needs | Involve personal fulfillment. |
| personality | A person's consistent behaviors or responses to recurring situations. |
| self-concept | The way people see themselves and the way they believe others see them. People have 2: -actual self-concept -ideal self-concept |
| actual self-concept | How people actually see themselves. |
| ideal self-concept | How people would like to see themselves. |
| perception | The process by which a person selects, organizes, and interprets information to create a meaningful picture of the world. |
| selective perception | A filtering of exposure, comprehension, and retention. This occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent. |
| selective comprehension | Involves interpreting information so that it is consistent with your attitudes and beliefs. |
| selective retention | Consumers do not remember all the information they see, read, or hear, even minutes after exposure to it. |
| subliminal perception | You see or hear messages without being aware of them. |
| perceived risk | The anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase. This also affects a consumer's information search, because the greater the perceived risk, the more extensive the eternal search stage is likely to be. |
| company strategies to reduce consumer risk (5 strategies) | Help reduce a consumer's perceived risk and encourage purchases: -obtaining seals of approval -securing endorsements from influential people -providing free trials of the product -giving extensive usage instructions -providing warranties/guarantees |
| learning | Behaviors that result from repeated experience and reasoning. |
| behavioral learning | The process of developing automatic responses to a situation built up through repeated exposure to it. Four variables essential to learning from repeated experiences are: -drive -cue -response -reinforcement |
| drive | A need that moves an individual to action. |
| cue | A stimulus or symbol perceived by consumers. |
| response | The action taken by a consumer to satisfy the drive. |
| reinforcement | The reward. |
| stimulus generalization | When a response elicited by one stimulus (cue) is generalized to another stimulus. |
| stimulus discrimination | A person's ability to perceive differences in stimuli. |
| cognitive learning | Involves making connections between two or more ideas or simply observing outcomes of others' behaviors and adjusting your own accordingly. |
| brand loyalty | A favorable attitude toward and consistent purchase of a single brand over time. |
| attitude | A tendency to respond to something in a consistently favorable or unfavorable way. |
| beliefs | A consumer's perception of how a product or brand performs. |
| attitude formation | A combination of values, and beliefs shape a consumer's attitude toward a product or brand. |
| 3 approaches used to try to change consumer attitudes | -Changing beliefs about the extent to which a brand has certain attributes. -Changing the perceived importance of attributes. -Adding new attributes to the product. |
| lifestyle | A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them. |
| psychographics | The analysis of consumer lifestyles, provides insights into consumer needs and wants. |
| VALS system | Identifies 8 consumer segments based on their primary motivation for buying and having certain products and services, and their resources. Consumers are inspired by 1/3 primary motivators: ideals, achievements, or self-expression. |
| 8 consumer segments of VALS system | The 8 categories and can separated into 4-motivated groups: -ideals (thinkers, believers) -achievement (achievers, strivers) -self-expression (experiencers, makers) -high-and-low resource (innovators, survivors) |
| ideals-motivated groups | Consumers motivated by ideals are guided by knowledge and principle. (thinkers and believers) |
| thinkers | Mature, reflective, and well-educated people who value order, knowledge, and responsibility. Practical consumers and deliberate info-seekers who value durability and functionality in products over styling and newness. (ideals group) |
| believers | Fewer resources, are conservative, conventional people with concrete beliefs based on traditional codes: family, religion, community, and the nation. They choose familiar products/brands, favor American-made & are generally brand loyal. (ideals group) |
| achievement-motivated groups | Consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to. (achievers and strivers) |
| achievers | Busy, goal-directed lifestyle and a deep commitment to career and family. Image is important to them. They favor established, prestige products and services and are interested in time-saving devices given their hectic schedules. (achievement group) |
| strivers | Trendy, fun-loving, and less self-confident than achievers. They also have lower levels of education and household income. Money defines their success. They favor stylish products and are as impulsive as their financials permit. (achievement group) |
| self-expression-motivated groups | Consumers motivated by self-expression desire social or physical activity, variety, and risk. (experiencers and makers) |
| experiencers | Young, impulsive consumers who become excited about new things but are quick to cool. They savor the new, the offbeat, and the risky. Their energy finds outlet in very active ways. Spend a lot on fashion, on looking good and having the new. (selexp group) |
| makers | Fewer resources, express themselves and experience the world by working on it. Practical people who have constructive skills, value self-sufficiency, and are unimpressed by the material possessions except those that are functional. (selexp group) |
| high-and-low-resource groups | Two segments that stand apart. Made up of innovators and survivors. |
| innovators | Successful, sophisticated, take-charge people with high self-esteem and abundant resources. Image is not important, not as power or status, but as an expression of independence and character. Receptive to new things/ life filled w/ variety. (hlr group) |
| survivors | Least amount of resources of all the segments, focus on the basics (safety and security) rather then fulfilling desires. Represent a modest market for most products and services and are loyal to favorite brands, better with a discount. (hlr group) |
| sociocultural influences | Consumer's formal and informal relationships with other people. |
| opinion leaders | Individuals who have social influences over others. |
| word of mouth | People influencing each other in personal conversations. |
| reference groups | People to whom an individual looks as a basis for self-appraisal or as a source of personal standards. 3 main groups: -membership group -aspiration group -dissociative group |
| membership group | A group to which one actually belongs, including fraternities, sororities, social clubs, and family. |
| aspiration group | A group to which one wishes to be a member of or wishes to be identified with, such as a professional society. |
| dissociative group | A group to which one wishes to maintain a distance from because of differences in values or behavior. |
| family influence | These influences on consumer behavior result from 3 sources: -consumer socialization -passage through the family lifecycle -decision making within the family or household |
| consumer socialization | The process by which people acquire the skills, knowledge, and attitude necessary to function as consumers. |
| family lifecycle | A family's progression from formation to retirement, each phase bringing with it distinct behaviors. Consumers act and purchase differently as they go through life. |
| family decision-making | Two styles exist here: spouse-dominant and joint. |
| spouse dominant decision-making | Decisions are those for which either the husband or the wife is mostly responsible. |
| joint decision-making | Most decisions are made by both husband and wife. As a rule, this increases with the education of the spouses. |
| family member roles in the purchasing process (5 roles) | This is an added element of family decision-making. The 5 roles are: -information gatherer -influencer -decision maker -purchaser -user |
| culture | The set of values, ideas, and attitudes that are learned and shared among the members of a group. |
| subcultures | Subgroups within the larger, or national, culture with unique values, ideas, and attitudes. |
Created by:
mariwalsh
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