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C712 Consumer buying
| Term | Definition |
|---|---|
| Consumer behavior | is the process through which the ultimate buyer makes purchase decisions. |
| Kurt Lewin | a psychologist who provided a useful classification scheme for influences on buying behavior |
| Kurt Lewin's proposition | B= f( P,E); behavior (B) is the function (f) of the interactions of personal influences (P) and pressures exerted by outside environmental forces (E). The statement is usually re-written as B= f (I,P), I stands for interpersonal influences |
| Interpersonal determinants of consumer behavior | Marketers recognize three broad categories of interpersonal influences on consumer behavior: cultural, social, and family influences. |
| Culture | can be defined as the values, beliefs, preferences, and tastes handed down from one generation to the next. Culture is the broadest environmental determinant of consumer behavior. |
| Sub-cultures | groups with their own distinct modes of behavior. Understanding the differences among subcultures can help marketers develop more effective marketing strategies. |
| Examples of sub-cultures in US | Hispanic American consumers, African American consumers, Asian American consumers |
| Asch Phenomenon | he surprising impact of groups and group norms on individual behavior has been called the Asch phenomenon. S.E Asch found that individuals conformed to majority rule, even if it went against their beliefs. |
| Reference groups | groups whose value structures and standards influence a person’s behavior. Consumers usually try to coordinate their purchase behavior with their perceptions of the values of their reference groups. |
| Social class | W. Lloyd Warner’s research identified six classes within the social structures of both small and large U.S. cities: the upper-upper, lower-upper, upper-middle, and lower-middle classes, followed by the working class and lower class. |
| Class ranking determination | Class rankings are determined by occupation, income, education, family background, and residence location. |
| Opinion leaders | These trendsetters are likely to purchase new products before others in the group and then share their experiences and opinions via word-of-mouth. |
| Family influences | Influences on consumer buying as a result of family structure. |
| Autonomic role | is seen when the partners independently make equal numbers of decisions. Personal-care items would fall into the category of purchase decisions each would make for himself or herself. |
| Husband-dominated role | occurs when the husband usually makes certain purchase decisions. Buying a generator or woodstove for the home is a typical example. |
| Wife-dominated role | has the wife making certain buying decisions. Children’s clothing is a typical wife-dominant purchase. |
| Syncratic | refers to joint decisions. The purchase of a house follows a syncratic pattern. |
| Personal determinants of consumer buying | Each individual brings unique needs, motives, perceptions, attitudes, learned responses, and self-concepts to buying decisions. |
| Needs | is an imbalance between the consumer’s actual and desired states |
| Motives | are inner states that direct a person toward the goal of satisfying a need. The individual takes action to reduce the state of tension and return to a condition of equilibrium. |
| Maslow's hierarchy of needs | Maslow identified five levels of needs, beginning with physiological needs and progressing to the need for self-actualization. According to Maslow, a person must at least partially satisfy lower-level needs before higher needs can affect behavior |
| Physiological Needs | Needs at the most basic level concern essential requirements for survival, such as food, water, shelter, and clothing. |
| Safety needs | Second-level needs include financial or lifestyle security, protection from physical harm, and avoidance of the unexpected. |
| Social/Belongingness needs | Satisfaction of physiological and safety needs leads a person to attend to third-level needs—the desire to be accepted by people and groups important to that individual. |
| Esteem needs | People have a universal desire for a sense of accomplishment and achievement. They also wish to gain the respect of others and even exceed others’ performance once lower-order needs are satisfied. |
| Self-Actualization needs | The top rung of Maslow’s ladder of human needs represents people’s desire to realize their full potential and find fulfillment by expressing their unique talents and capabilities. |
| Perception | is the meaning that a person attributes to incoming stimuli gathered through the five senses—sight, hearing, touch, taste, and smell. |
| Perceptual screen | the mental filtering processes through which all inputs must pass. |
| Subliminal perception | the subconscious receipt of incoming information. |
| Attitude | are a person’s enduring favorable or unfavorable evaluations, emotions, or action tendencies toward some object or idea. |
| Learning theory | in a marketing context, refers to immediate or expected changes in consumer behavior as a result of experience. The learning process includes the component of drive, which is any strong stimulus that impels action |
| Shaping | is the process of applying a series of rewards and reinforcements to permit more complex behavior to evolve. |
| High-involvement purchase decision | Purchases with high levels of potential social or economic consequences |
| Low-involvement purchase decision | Routine purchases that pose little risk |
| six steps in the consumer decision process. | Problem or Opportunity Recognition, Search, Evaluation of Alternatives, Purchase Decision and Purchase Act, Postpurchase Evaluation |
| Evoked set | The collection of alternatives a consumer actually considers in making a purchase decision |
| Evaluative criteria | are the features a consumer considers in choosing among alternatives. |
| Cognitive dissonance | consumers experience post-purchase anxiety |
| Routinized Response Behavior | Consumers make many purchases routinely by choosing a preferred brand or one of a limited group of acceptable brands. This type of rapid consumer problem solving is referred to as routinized response behavior |
| Limited Problem Solving | the consumer knows the evaluative criteria for the product but has not applied these criteria to assess the new brand. Such situations demand moderate amounts of time and effort for external searches. |
| Extended Problem Solving | results when brands are difficult to categorize or evaluate. |
Created by:
mkale
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