9 - Consumer & Consumer Behaviour

nguyp035's version from 2016-05-15 15:52

Section 1

Question Answer
Consumer behaviour is...the sum of the consumers' acquisition, consumption (usage) and disposition of goods and services, ideas and time
Identify 4 Product products, convenience products, specialty product, unthought products
Consumers make decisions using...Routine problem solving, limited problem or extended problem solving
i.e. the involvement and importance of the decision and the effort they are willing to put into the decision.

Section 2

Question Answer
Routine problem solving (habitual decision making)Everyday product, make little effort, search for little information, make little comparison to alternatives, buy product of little importance, impulse buy (e.g. chocolate, tissue paper, gum)
Limited problem solvingProducts that usually arouse mild interest and curiosity, moderate involvement, limited info seek, will compare brand to see best (e.g. carpets, aftershave, makeup)
Extended problem solvingProducts of high importance, expensive, of high risk to finance, no brand preference, high involvement, lots of time looking for info, long process (e.g. car, tv, house)
Extended problem solving processProblem recognition > information search > evaluation of options (may go back to info search - passive/active search) > product choice > post purchase evaluation
For most products the purchasing process
The involvement, importance of decision, effort put into decision is determined by...the perceived risks. (lower perceived risk lower the involvement)

Section 3

Question Answer
Types of risks
Time riskhow much time spent in making a choice
Financial riskthe amount of money spent (more spent = more perceived risk)
Social riskwhat do others think of you? (approved or disapproved by society?)
Psychological riskwhat do you think of yourself? (is product consistent with your self identity?)
Physical riskhealth (does it cause health issues?)

Section 4

Question Answer
What can be done to change decision making?Marketing mix? for the types of consumer behaviour?
Tackling Routine/limited problem solving...for products with low involvement (by low perceived risk) the decision process is more determined by ENVIRONMENTAL CUES, e.g. special offer, display ads. (chewing gums, carries layout near cashier)
What are environmental cues?The way products are presented to trigger purchasing behaviour e.g. chewing gum
Tackling Extended problem solving...for products with high involvement (by high perceived risk) the decision process is more complex and rational (based on reason/logic) - need to put more effort in to convince customers.
Steps to convince customers for extended problem solving...
1 - at the problem recognition stage..normal needs or stimulate needs (e.g. ads)
2 - at information search stageadvertisement in various media channels, tv, webpage (e.g. paid search, making info easily accessible on TopGear, LocationLocation?)
3 - at the option evaluation stagewe need to educate customers on which evaluation criteria really matters (which criteria their product excels at) e.g. criteria for a car (power,space,comfort,price,style) - criteria for property (size,bedrooms,garden,parking?) - weights of each criterion depends on customer and situation.
4 - at the product choice stageform the consideration set, heuristics (simple rules such as price = quality) (brand loyalty - get used to believing brand is better, why bother making effort in searching for others when loyalty is strong enough - price premium, avoid brand switching) - First time buyer? (country of origin e.g. germany, japan?)
5 - at the evaluation stageunsatisfied customers may never come back - engage in negative work of mouth - lose the opportunity for brand loyalty, expensive to attract new consumers

Section 5

Question Answer
Decision making process (5)...
Problem RecognitionIdentify the problem and need for the product. (whats the ideal situation and current?)
Information SearchAims to look at the possible remedies or information to solve the problem
Alternative evaluationAfter collected all the info about which can solve problem, we evaluate which is the best and most suitable option/product also based upon brand image and evoked set.
Purchase decisionAfter we evaluated, we can choose and proceed to actual purchase (could depend on promotion/experience)
Post purchase decisionEvaluate if the choice was right or not - was you satisfied? -

Section 6

Question Answer
Decision making is therefore...often irrational/unpredictable, can progress through 5 stages, does not always follow these stages in sequence - strong brand loyalty can move consumers directly from need to purchase
Does brand equity have equal impact on each type of consumer decision processes? - If you are a small brand, what should you do?As a small brand, we need to ‘push’ consumers from ‘simple’ decision process to ‘complex’ decision process E.g. we can educate our consumers about the product, give them more information, so that they do not only rely on the brand name when they make the purchase.

Section 7

Question Answer
Determinants of consumers decisions can be...internal, situational, social influences
INTERNAL influences..
PerceptionVision, colour, sound, smell and touch
In-store display, special offer, word of mouth, trial samples
We pay ATTENTION to even the smallest signs of communication, our INTERPRETATION is shaped by our background e.g. needs,biases,experiences. - through the comm process - the encoder and audience interprets message differently.
Exposure (must see message) > attention (must look at message) > Interpretation (must take in) - (Fruity and refreshing: coke life)
(Exposure = consumers coming into contact with marketing stimulus) - (Attention = when person allocates mental activity to the stimulus)
MotivationMASLOWS HIERARCHY of needs (psychological, safety, belongings, ego needs, self-actualisation)
LearningPAVLOVS experiment (Pavlov used a bell as his neutral stimulus. Whenever he gave food to his dogs, he also rang a bell. After a number of repeats of this procedure, he tried the bell on its own. As you might expect, the bell on its own now caused an increase in salivation.)
Using positive scenes in ads, creating some sort of visual story - celebrity endorsements (brand extensions)
PersonalityINNOVATIVENESS - the degree to which a person likes to try new things
MATERIALISM - desire for ownership SELF CONFIDENCE - degree to which person has positive evaluation of their ability to make a good choice..
Age GroupsPeople of different age groups share difference past experiences - user experience
Lifestyle A pattern of living which determines how people choose to spend their time, money and energy and that reflects their values, tastes and preference - overlapped with demographics

Section 8

Question Answer
SITUATIONAL Influences....Physical surroundings and time pressures - Decoration, smells, lighting, music and temperature can determine decisions
Physical environment (Atmospherics)Arousal and pleasure leads to a positive experience e.g. IKEA appears to the whole family - kids area, work space, bedroom
TimeImproving purchase experience by saving customers TIME (e.g. iTunes browsing and management of songs and movies) - webpage design navigation
SOCIAL influences....
CultureThe values, beliefs, custom and tastes produced or practiced by a group of people
Subculturegroup within a larger culture (e.g. religious groups, ethnic, star trek fans...)
Social ClassOverall rank of people in society. - Same work class = similar occupation = similar high incomes = share tastes in clothing, style and leisure activities (Luxury goods act as a status symbol)
Gender rolesGirls and pink, yellow, purple, etc. (Pink iPods)
Opinion leadersInformation source with credibility - celebrity endorsements - Facebook or twitter. (e.g. TopGear, David Beckham (Amarni)

Section 9

Question Answer
Consumer and Consumer behaviourRoutine/Limited/Extended problem solving
How do consumers make decisions?Problem > info search > evaluation opinion > choice > post evaluation
What influences consumer behaviour?Internal, situational, social
Evoked set is the...set of product choices that you think are viable for you to purchase based upon needs.