MRKT Ch. 6 Consumer Behavior and Marketing Strategies
Churning
When a significant number of customers are switching brands
Motive
A driving force that causes a person to take action to satisfy specific needs
Consumer decision-making process
A five-step process used by consumers when buying goods or services
Stimulus generalization
A form of learning that occurs when one response is extended to a second stimulus similar to the first
Evoked set
A group of brands resulting from an information search from which a buyer can choose
Social class
A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms
Subculture
A group of people who share elements of the overall culture as well as unique elements of their own group
Aspirational reference group
A group that someone would like to join
Nonaspirational reference groups
A group with which an individual does not want to associate
Social Class
A hierarchical system that categorizes individuals based on various criteria such as occupation, income, education, and wealth.
Stimulus discrimination
A learned ability to differentiate among similar products
Maslow's hierarchy of needs
A method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization
Perceived value
A personal assessment of the net worth obtained from a purchase
Connected self-schema
A perspective whereby a consumer sees himself or herself as an integral part of a group
Separated self-schema
A perspective whereby a consumer sees himself or herself as distinct and separate from others
Learning
A process that creates changes in behavior, immediate or expected, through experience and practice
Selective distortion
A process whereby a consumer changes or distorts information that conflicts with his or her personal beliefs
Selective exposure
A process whereby a consumer notices certain stimuli and ignores others
Selective retention
A process whereby a consumer remembers only that information that supports his or her feelings or beliefs
Non-marketing-controlled information source
A product information source that is not associated with advertising or promotion
Marketing-controlled information source
A product information source that originates with marketers promoting the product
Secondary membership group
A reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group
Primary membership group
A reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers
Nudge
A small intervention that can change a person's behavior
Utilitarian value
A value derived from a product that helps the consumer solve problems and accomplish tasks
Norm
A value or attitude deemed acceptable by a group
Hedonic value
A value that acts as an end in itself rather than as a means to an end
Self-concept
A way of organizing and grouping the consistencies of an individual's reactions to situations
Flexibility in Decision-Making Process
Acknowledges that consumers may not always follow these steps in a linear fashion. They may skip steps, end the process prematurely, or not make a purchase at all.
Reference group
All of the formal and informal groups in society that influence an individual's purchasing behavior
Opinion leaders
An individual who influences the opinions of others
Jilting effect
Anticipation of receiving a highly desirable option only to have it become inaccessible
Stimulus
Any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing
Types of Consumer Buying Decisions
Categorized into routine response behavior, limited decision making, and extensive decision making, influenced by factors like level of consumer involvement and length of time to make a decision.
Consumer Decision-Making Process
Consists of five main steps: need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior.
Postpurchase Behavior
Consumer satisfaction is determined by how well their expectations are met after a purchase, and it includes the jilting effect, data breaches, and cognitive dissonance.
Information Search Process
Consumers seek information both internally and externally after recognizing a need or want, aiming to form a group of preferred alternatives, called the evoked set, from which the consumer makes a final choice.
Evaluation of Alternatives and Purchase
Consumers use information from memory and external sources to develop criteria for evaluating alternatives and making purchase decisions.
Utilitarian Value
Derived from products or services solving problems or accomplishing tasks (e.g., washing machines, eyeglasses).
Consumer Behavior
Describes how consumers make purchase decisions, use, and dispose of goods or services, including factors influencing these decisions.
Individual Differences in Susceptibility to Social Influences
Factors such as gender, age, life-cycle stage, personality, self-concept, and lifestyle play important roles in consumer decision making.
Reference Groups
Formal and informal groups that influence an individual's buying behavior, including direct (primary and secondary) and indirect (aspirational and non-aspirational) reference groups.
Personality
How consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations
Socialization process
How cultural values and norms are passed down to children
Opinion Leaders
Individuals within reference groups or social media groups who exert influence on others' purchasing decisions, often the most influential, informed, plugged-in, and vocal members of society.
Consumer Involvement
Influenced by previous experience, interest, perceived risk, social visibility, and can manifest in various forms like product, situational, shopping, enduring, and emotional involvement.
Cognitive dissonance
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
Gender Differences in Consumer Behavior
Physiological differences between men and women lead to various needs, particularly evident in health and beauty products, and women often make purchase decisions based on how companies portray women in their marketing campaigns.
Hedonic Value
Provides emotional satisfaction and enjoyment, independent of its usefulness (e.g., vacations, spa days).
Value in Purchases
Purchases are driven by perceived value, which is what consumers expect to get compared to what they give up. Value can be tangible (durability, convenience) or intangible (happiness, prestige).
Need recognition
Recognition of an unfulfilled need and a product that will satisfy it
Want
Result of an imbalance between actual and desired states
Involvement
The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
Family Influence on Consumer Behavior
The family strongly influences values, attitudes, self-concept, and buying behavior among consumers, with different family members assuming various roles in the purchase process.
Extensive decision making
The most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information
Showrooming
The practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item
Perception
The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
Internal information search
The process of recalling information stored in the memory
External information search
The process of seeking information in the outside environment
Culture
The set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
Routine response behavior
The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time
Limited decision making
The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
Value
The value a consumer expects to obtain from a purchase
Real self-image
The way an individual actually perceives himself or herself
Ideal self-image
The way an individual would like to be perceived