MKTG 409 (Consumer Behavior) Exam 2

Situational Influences

Purchase Situation, Social Setting (the wedding dress video) social setting had a strong influence.

Information Search

Search for information Internal Search External Search

"heavy user" consumer behavior

Super fans: twice a week, 3 to 4 times a week. Sensory panel: customers test out the food.

Social Influences Family

Tapping into the feelings when dad buys a car for the daughter.

Situational Involvement

Temporary, or dynamic involvement resulting from a particular set of circumstances.

Cognitive Dissonance Example

The guy in the video (Jerry) bought a jacket and already was unsure about it, then creamer came along and point out the pink strip lining, and he asks how much it costs, a jacket may carry a higher social risk since people can actually see the jacket.

Collaborative consumption

The reinvention of old market behaviors- renting, lending, swapping, bartering, gifting - through new technologies, taking place on a scale and in ways never possible before.

Situational Influences

physical surroundings and mood (music influenced wine shopping, classical music is played) (smell: people will may more for shoes when the store has a pleasant smell)

Jhumpa is questioning whether she has made the right decision about purchasing a new HP laptop after she sees a friend with a new Dell. Jhumpa's doubt whether she made the right decision occurs during the ___________ of the buying decision process.

postpurchase evaluation phase

The development of a person's self-concept is a function of

psychological and social factors.

An open aggregate of people with similar social ranking is referred to as a

social class

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is

the importance and intensity of interest in a product in a particular situation.

The primary psychological influences on consumer behavior are

perception, motivation, learning, attitudes, personality, and lifestyles.

According to Maslow's hierarchy of needs,

individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.

psychological influences Personality, Self- concept, and Life styles

influence buying is what actually enables us to segment in that manner.

Within the information search step of the consumer buying decision process, what two primary aspects exist?

internal search and external search

Assignment of meaning to organized information inputs is called

interpretation

Extended decision making is the type of consumer decision-making process that

is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

The Case for Collaborative Consumption (the big shift)

1. A renewed belief in the importance of community 2. A torrent of peer-to-peer social networks and real-time technologies (fundamentally influencing the way we behave) 3. Pressing unresolved environmental concerns 4. A global recession that has fundamentally shocked consumers behavior

Sources of Learning

1. Behavioral consequences 2. Information processing 3. Experience

Consumer Buying decision Process

1. Problem recognition, 2. information search, 3. evaluation of alternatives, 4. purchase, 5. post-purchase evaluation

Consumer Buying Behaviors

1. routinized response, 2. limited problem solving, 3. extended problem solving, 4. impulse buying (Candy at check out station)

Post-Purchase Evaluation Cognitive Dissonance

A buyer's doubts shortly after a purchase about whether the decision was the right one.

Social Infuences Roles

Actions and activities that a person in a particular position is supposed to perform based on expectation of the individual and surrounding persons. •Buyer (mom,dad, older siblings) •User (children, or everyone in family) •Decider (mom is deicder and send dad to get the product) •Influencer (children) •Gatekeeper (information flow about products)

Problem Customer Example

Alinea: customers kicked out of a restaurant will not return, (hiring a customer) soical media lose customers. Letting customers go may be the right choice.

Forever 21 is developing a program to get to know its customers. Which of the following is NOT a reason why Forever 21 needs to understand consumer buying behavior?

All customers are the same when it comes to buying behavior.

Rachel Botsman suggests that to allow for transactions between strangers there is a need for technology to aggregate:

An extremely powerful dynamic that has a huge commercial and cultural implications is at play. Enabling trust between strangers.

Attitudes

An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea. •Can be positive or negative. •Is measured by attitude scales. Better to keep current customers happy because it can e costly to not satisfy customers.

Motives:

An internal energizing force that directs a person's behavior toward satisfying needs or achieving goals

The attitude toward the object model (known as the Fishbein model) consists of which three elements?

Beliefs about product attributes, the strength of beliefs, and the evaluation of beliefs

Psychological Influences Learning:

Changes in an individual's thought processes and behavior caused by information and experience.

Evaluative Criteria

Characteristics that are important to the buyer

Involvement

Degree of interest in or importance of a product

"special" Consumers Two types

Heavy/Loyal Users (marketers think which is a mistake if a customer is a heavy and loyal user, they don't need to do marketing to them, but they have to keep them happy, so sucessful marketers award customers will membership reward. Problem Customers

Problem Recognition

Occurs when a buyer becomes aware of a difference between a desired state and an actual condition (kitchen flooded, hungry going to lunch)

Enduring Involvement

Ongoing and long-term involvement with a product or product category

Psychological Influences

Perception: selecting, organizing, and interpreting information inputs to produce meaning

Rachel Botsman suggests that to allow for transactions between strangers there is a need for technology to aggregate, but she did not take into account:

Streaming industry has evolved. We still saw things moving forward. Ride sharing and turning into a business.

High-Involvement Products

Visible to others, expensive, high social risk

Starbucks:

What level of involvement do you think customers have for coffee? Mobile Order and Pay App: hope the app will increase traffic but in reality this app is influencing the process of purchasing from Starbucks, so directly influencing consumer decision process. The app is when purchasing Starbucks make it a routinized behavior, they want to make it easy for customers to buy from there.

Kira is interested in joining Alpha Gamma Delta's sorority. She begins to shop at Delphine's, a local store where the Alphas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Kira is most influenced by

a reference group.

Collaborative Consumption

a term used to refer to the activities practiced by rentrepreneurs (we are moving from passive consumers to creators to massive entrepreneurs.

Consumer Misbehavior

angry customer, marketers needs to learn how to deal with an angry customer.

As Gillian has become more knowledgeable about health, obesity, and quality ingredients, her attitude toward soft drinks and fast food have become less favorable, while her attitude toward healthier brands like Panera and bubbly sparkling water has improved. This best relates to the _______ component of attitude.

cognitive

Jack recently purchased a Ford F-150 truck and has owned it for about a week. Earlier in the day, he received a call from Nick, the sales representative who sold him the truck. Nick called to check to see whether Jack had any questions or problems with the truck and if he had learned how to navigate all the bells and whistles. Nick also reminded Jack about how Ford is highly regarded as one of the best automobile brands and that the Ford truck is the #1 truck brand in the United States. What phenomenon is Nick trying to prevent by contacting his customer?

cognitive dissonance

A group of brands that a consumer views as alternatives for possible purchase is called a(n)

consideration set

Purposeful actions to take advantage of or harm others during a transaction is best described as

consumer fraud

Sophie wants to buy a new car. She turns to her friend who is a car enthusiast for his recommendation. He tells her Honda is by far the best brand. Sophie goes to a Honda dealership. She notices a Honda Civic that is at a reasonable price point. However, she likes the fact that the Honda Accord is a mid-sized car, but it is more expensive. Sonya tries to remember what her friend told her but is having trouble. She starts weighing the benefits of both vehicles in an attempt to make her final decision. The fact that Sophie sought advice from her friend is an example of _________________. Her attempt to weigh the benefits of the vehicles against one another is _______________.

external information search; evaluation of alternatives

Mitchell's smartphone is two years old and he would like to have a new one. This time, he wants to make sure that it has a longer battery charge and better geographic coverage since he is traveling three days a week for his new job. Mitchell is most likely to use _____ for this purchase.

limited decision-making behavior

Both the Toyota Sienna and the Dodge Grand Caravan were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Isabel Desario and her husband were currently shopping for a van for their family. As Isabel listened to television commercial about the Dodge Grand Caravan, she noticed that the Dodge cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, which also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Gabe, her husband, about how much she liked the Toyota van, he replied that its gas mileage was too low at only 16 mpg. Since Isabel didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Isabel couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Dodge. Refer to Scenario 7.2. Since Isabel and Gabe were using gas mileage as one of their evaluative criteria, they are most likely in the ____ phase of the consumer buying process.

evaluation of alternatives

Emily is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?

extended

Advertisers often use ____ to boost consumers' information retention and recall, which may facilitate the information search stage.

repetition

Digital influences, such as online review sites and social networks, allow shoppers to reduce their _______ by gaining information from others.

risk in trying an unknown product

While shopping at a local grocery store, Cameron sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as

routinized response behavior.

Psychological influences are internal factors that impact a consumer's buying decision process. More specifically, ___________ is one type of psychological influence wherein the consumer has a tendency to twist or change information received to fit their own personal feelings or beliefs.

selective distortion

Stephen is a marketing research consultant and specializes in qualitative research. He's a member of the Qualitative Research Association and enjoys attending regional and national meetings where he can meet other consultants and participate in workshops to improve his skills. Stephen always finds one to two new books to purchase from the trade show and truly enjoys the chance to expand his knowledge base through these learning opportunities. He knows that this new knowledge will improve his capabilities to deliver the type of consultation his clients might desire and will enable him to effectively compete for work. Stephen's attendance at these national meetings and his book purchases are motivated by his need of _______, one of Maslow's hierarchy of needs.

self-actualization

Evaluation of Alternatives Consideration Set (ice cream)

•A group of brands viewed as alternatives for possible purchase (bluebell, ben and jerrys, Breyers)

Culture

•Accumulation of values, knowledge, beliefs, customs, objects and concepts of a society.

Social Classes

•An open group of individuals with similar social rank. •Interact most often with those of the same class.

Purchase

•Choose product/brand (run out of laundry detergent tide or downy) (walmart or HEB) •Choose the seller •Negotiate the terms •Purchase or terminate the process.

Subculture

•Groups of individuals whose characteristic values and behavior patterns are similar and different from those of the surrounding culture.

Patronage Motives

•Influence where a person purchases products on a regular basis.

Low-Involvement Products

•Less visible, less expensive, less social risk

Buying Behavior

•The decision processes and actions of people involved in buying and using products.

Consumer Buying Behavior

•The decision processes and purchasing activities of people who purchase product for personal or household use and not for business purposes.