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What is the primary focus of understanding consumer buyer behavior for marketers?

  • To predict individual purchases with certainty.
  • To control consumer buying habits.
  • To eliminate competition in the consumer market.
  • To tailor marketing activities to consumer decision-making processes. (correct)

Which of the following best describes consumer buyer behavior?

  • The buying actions of organizations purchasing raw materials.
  • The study of government spending on public services.
  • The purchasing decisions of final consumers for personal consumption. (correct)
  • The analysis of stock market trends by individual investors.

A marketing manager is trying to understand the factors that influence their target consumers' buying behavior. According to the first slide, which of the following would be most relevant?

  • Calculating the quarterly financial reports.
  • Analyzing the company's internal production costs.
  • Identifying the four major factors that influence consumer buyer behavior. (correct)
  • Studying the competitor's organizational structure.

A company is launching a new product and wants to ensure rapid consumer adoption. Using the information provided, which strategy would be LEAST effective?

<p>Ignoring the adoption and diffusion process. (A)</p> Signup and view all the answers

How can understanding the consumer buying behavior benefit a company's marketing strategies MOST directly?

<p>It provides insights to tailor marketing activities to better resonate with consumers. (B)</p> Signup and view all the answers

Which of the following is the most accurate definition of 'culture' in a marketing context?

<p>The general learned behaviours, perceptions, and values from family and other key institutions. (B)</p> Signup and view all the answers

Why is it important for marketers to understand subcultures?

<p>Subcultures help marketers tailor products and marketing messages more effectively. (A)</p> Signup and view all the answers

Which factor determines social class?

<p>A combination of occupation, income, education, and wealth. (B)</p> Signup and view all the answers

A young professional aspires to be like entrepreneurs. Which type of reference group does this represent?

<p>Aspirational group. (D)</p> Signup and view all the answers

What is the primary characteristic of a membership group?

<p>It's characterized by direct influence and affiliation. (B)</p> Signup and view all the answers

What is 'buzz marketing' primarily based on?

<p>The recommendations of opinion leaders. (A)</p> Signup and view all the answers

How do online social networks benefit marketers?

<p>They offer platforms for people to interact and share perspectives. (B)</p> Signup and view all the answers

What is the main role of opinion leaders in marketing?

<p>To influence others through their expertise or social standing. (A)</p> Signup and view all the answers

Which of the following is an example of an internal stimulus that might trigger need recognition in a buyer?

<p>Experiencing hunger and realizing the need to buy food. (C)</p> Signup and view all the answers

A consumer is considering buying a new laptop. They read online reviews, visit electronic stores to test different models, and ask friends for recommendations. Which stage of the buyer decision process does this represent?

<p>Information Search (C)</p> Signup and view all the answers

Which type of information source is a consumer utilizing when they read online reviews about a product?

<p>Public source (D)</p> Signup and view all the answers

A buyer has narrowed down their choice of cars to two models. They are now comparing the fuel efficiency, safety ratings, and price of each car. Which stage of the buyer decision process are they in?

<p>Evaluation of Alternatives (A)</p> Signup and view all the answers

According to the buyer decision process, what immediately precedes the purchase decision?

<p>Evaluation of Alternatives (C)</p> Signup and view all the answers

A consumer intends to buy a particular brand of smartphone but then discovers that the store is out of stock. This leads them to purchase a different brand. Which factor most influenced their purchase decision?

<p>Unexpected situational factors (A)</p> Signup and view all the answers

A marketing manager wants to emphasize their product's strengths during the buyer decision process. At which stage would highlighting these strengths be MOST effective?

<p>Evaluation of Alternatives (D)</p> Signup and view all the answers

Which of the following best illustrates how social groups can influence consumer behavior?

<p>A consumer purchases a particular brand of athletic wear because their favorite fitness influencer promotes it. (B)</p> Signup and view all the answers

A consumer decides to purchase a product based on a friend's positive review. This friend's review represents which kind of information source?

<p>Personal source (D)</p> Signup and view all the answers

How might a marketer leverage the concept of 'social roles and status' to promote a luxury watch brand?

<p>By positioning the watch as a symbol of success and achievement, associated with high-status individuals. (D)</p> Signup and view all the answers

According to the life-cycle stages, which group would be most interested in retirement planning services and investment options focused on wealth preservation?

<p>Preservers (B)</p> Signup and view all the answers

How might a significant increase in interest rates most likely affect consumer buying behavior?

<p>Decreased spending and increased saving due to higher borrowing costs. (D)</p> Signup and view all the answers

Considering the impact of 'occupation' on consumer behavior, which of the following is the LEAST likely marketing approach?

<p>Advertising construction equipment to accountants. (B)</p> Signup and view all the answers

A marketing campaign promoting eco-friendly products targets consumers who prioritize sustainability and environmental consciousness in their purchasing decisions. This approach is primarily based on which personal factor?

<p>Lifestyle (A)</p> Signup and view all the answers

What is the most direct way marketers can utilize 'blogs and social networking sites ' to boost brand awareness?

<p>By creating engaging content and interacting with customers to build a community around the brand. (C)</p> Signup and view all the answers

A consumer consistently purchases organic and locally sourced foods, participates in outdoor recreational activities, and drives a hybrid vehicle. Which of the following personal factors MOST accurately explains these choices?

<p>Lifestyle (D)</p> Signup and view all the answers

A consumer purchases a new smartphone with high expectations of its performance. After using the phone for a week, they find that it meets most, but not all, of their expectations. How would you describe this customer's post-purchase state, according to the buyer decision process?

<p>The consumer's satisfaction level will depend on the magnitude of the gap between expectations and perceived performance. (A)</p> Signup and view all the answers

What strategy would be the MOST effective for a company looking to foster customer satisfaction and build long-term relationships, based on the post-purchase behavior concepts?

<p>Managing customer expectations through honest advertising and delivering product performance that meets or exceeds those expectations. (C)</p> Signup and view all the answers

A marketing manager observes that a segment of their customer base is hesitant to adopt new product features, preferring to stick with familiar functionalities. How should the manager address this segment, considering individual differences in innovativeness?

<p>Provide targeted communication that highlights the benefits of the new features, offers training resources, and allows a gradual transition. (A)</p> Signup and view all the answers

A consumer is considering purchasing a complex new technology product. They are unsure if the product will truly meet their needs. What is the MOST important action the company can take to reduce potential cognitive dissonance after the purchase?

<p>Offer a money-back guarantee and easy return policy. (A)</p> Signup and view all the answers

A company launches a new product. Initial sales are strong, but customer reviews are mixed, with some users praising the product's innovation and others complaining about its complexity. What should be the company's PRIMARY focus to maximize customer satisfaction and long-term adoption?

<p>Offering extensive customer support and training resources to help users understand and utilize the product effectively. (D)</p> Signup and view all the answers

Which stage of the adoption process involves a consumer actively seeking information about a new product?

<p>Interest (A)</p> Signup and view all the answers

A consumer is considering purchasing a new noise-canceling headphones but is hesitant due to uncertainty about its sound quality. According to the buyer decision process for new products, which stage is the consumer in?

<p>Evaluation (A)</p> Signup and view all the answers

What is the FIRST stage in the buyer decision process for new products?

<p>Awareness (D)</p> Signup and view all the answers

What does 'compatibility' refer to in the context of product characteristics influencing adoption rate?

<p>The degree to which the innovation is perceived as consistent with the existing values, past experiences, and needs of potential adopters (D)</p> Signup and view all the answers

Which product characteristic influencing adoption rate refers to how difficult an innovation is to understand or use?

<p>Complexity (B)</p> Signup and view all the answers

A company is preparing to launch a new innovative wearable technology product. Which strategy would be MOST effective in accelerating the adoption process based on the 'relative advantage' characteristic?

<p>Emphasize how the product offers significant improvements over existing alternatives (B)</p> Signup and view all the answers

A company is launching a new software with a complex user interface. Which of the following strategies would be MOST effective in increasing the rate of adoption, considering the 'complexity' characteristic?

<p>Providing extensive user training programs and simplified tutorials (B)</p> Signup and view all the answers

A fitness tracker company wants to increase adoption of its new product. Considering the influence of 'communicability,' which marketing strategy would be MOST effective?

<p>Encouraging users to share their fitness achievements and experiences on social media (C)</p> Signup and view all the answers

Flashcards

Consumer Market

Individuals and households that purchase goods and services for personal use.

Consumer Buyer Behavior

The purchasing actions of individuals and households who buy products for personal consumption.

Importance of Understanding Consumer Behavior

Understanding consumer behavior allows businesses to customize their marketing efforts to better appeal to their target audience.

Buyer Decision Process

The steps a consumer takes when deciding to purchase a product or service.

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Adoption and Diffusion Process

The process by which new products are accepted and spread throughout a market.

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Need Recognition

The first step in the buying process; recognizing a need or problem.

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Internal Stimuli

Internal factors that trigger a consumer's need recognition.

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External Stimuli

External factors that trigger a consumer's need recognition.

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Information Search

The stage where consumers seek information about potential purchases.

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Personal Sources

Information sources include family, friends, and peers.

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Commercial Sources

Information sources include advertising and the Internet.

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Evaluation of Alternatives

The stage where consumers assess different brands or products.

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Purchase Decision

The consumer's final decision to purchase the most preferred brand.

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Post-Purchase Decision

Feelings of satisfaction or dissatisfaction after a purchase, based on expectations versus performance.

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Customer Satisfaction

Satisfaction is key because it fosters strong connections, retains customers, and boosts their lifetime value.

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Cognitive Dissonance

The discomfort a buyer feels when there's conflict after a purchase decision.

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Adoption Process

The mental process through which an individual passes from first hearing about an innovation to final adoption.

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Individual Innovativeness

The varying degrees to which individuals are receptive to new products and adopt them.

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Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of a society from family and other important institutions.

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Subcultures

Groups of people within a larger culture who share value systems based on common life experiences and situations.

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Social Classes

Society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

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Membership Groups

Groups with direct influence and to which a person belongs.

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Aspirational Groups

Groups an individual wishes to belong to.

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Reference Groups

Groups that form a comparison or reference in forming attitudes or behaviors.

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Word-of-Mouth Influence

The impact of personal recommendations from trusted individuals on consumer purchasing decisions.

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Online Social Networks

Online platforms where people socialize or exchange information and opinions.

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Influence Groups

Groups, including blogs and social networks, that influence others.

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Family

The most important consumer-buying organization in society.

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Social Roles

Groups, clubs, and organizations that influence a person's roles and status.

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Life-Cycle Stage

A personal factor that includes youth (under 18), getting started (18-35), builders (35-50), accumulators (50-60), and preservers (over 60).

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Occupation

A personal factor affecting the goods/services bought by consumers.

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Economic Situation

A personal factor that includes personal income, savings, and interest rates.

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Lifestyle

A person's pattern of living as expressed in their psychographics.

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Psychographics

The study of consumers based on their activities, interests, and opinions (AIOs)

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Adoption Process Stages

The stages are: Awareness, Interest, Evaluation, Trial, and Adoption.

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Consumption Pioneers

Individuals who are among the first to use a new product.

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Early Adopters

Consumers who adopt an innovation early in its diffusion process, after innovators.

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Relative Advantage

The degree to which an innovation appears superior to existing products.

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Compatibility

The degree to which the innovation fits the values/experiences of potential consumers.

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Complexity

The degree to which the innovation is difficult to understand or use.

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Communicability

The degree to which the results of using the innovation can be observed or described to others.

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Study Notes

  • Consumer buyer behaviour refers to the buying habits of individuals and households who purchase goods and services for personal consumption.
  • Understanding consumer decision-making allows for more effective marketing activities, better reaching target customers.

Factors Influencing Consumer Behaviour

  • Cultural factors involve basic values, perceptions, wants, and behaviors learned from family and important institutions.
  • Groups of people within a culture share value systems based on common life experiences are subcultures.
  • Society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors are social classes

Social Factors

  • Word-of-mouth influence and buzz marketing are important in consumer decisions.
  • Opinion leaders exert social influence on others.
  • Online social networks are online communities where people socialize or exchange information and opinions.
  • Brands are identified by marketers and used as brand ambassadors.
  • The family is the most important consumer-buying organization in society.
  • Social roles and status within groups, clubs, and organizations define a person's roles and social standing.

Personal Factors

  • Age and life-cycle stage influences consumer decisions.
  • Occupation affects the goods and services consumers buy.
  • Economic situation, including personal income, savings, and interest rates, impacts consumer behavior.
  • A person's lifestyle, expressed through psychographics, measures consumer activities, interests, and opinions (AIOs)
  • Personality consists of unique psychological characteristics and leads to consistent responses to the environment.
  • Consumers often choose brands with personalities that match their own.

Psychological Factors

  • Motivation arises from a need that is sufficiently pressing to direct the person to seek satisfaction.
  • Motivation research uses qualitative methods to probe consumers' hidden, subconscious motivations.
  • Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
  • Selective attention is people screening out most information they are exposed to.
  • Selective distortion is people interpreting information to support existing beliefs.
  • Selective retention is the tendency to remember good points about favored brands and forget those of competitors.
  • Learning is behavioral change arising from experience, occurring through the interplay of drives, stimulus objects, cues, responses, and reinforcement.
  • Belief is descriptive thought a person has about something, based on knowledge or opinion.
  • Attitudes describe a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Types of Buying Decision Behaviour

  • Complex buying behaviour happens with high involvement and significant differences between brands.
  • Dissonance-reducing buying behaviour occurs with high involvement but few differences between brands.
  • Habitual buying behaviour involves low involvement and few differences between brands.
  • Variety-seeking buying behaviour is with low involvement but significant differences between brands.

Buyer Decision Process

  • Need recognition occurs when the buyer recognizes a problem or need, triggered by internal or external stimuli.
  • The stages include:
    • Information search
    • Evaluation of alternatives
    • Purchase decision
    • Post-purchase behavior
  • Information search occurs when the source is personal, commercial, public, and experimental
  • Evaluation of alternatives
    • Occurs when the consumer processes information to arrive at brand choices
  • Purchase decision
    • Is impacted by the attitudes of others and unexpected situational factors.
  • The satisfaction or dissatisfaction that the consumer feels about the purchase occurs post purchase
  • Consumer satisfaction is a key to building profitable relationships with consumers and reaping their lifetime value.
    • Awareness, Interest, Evaluation, Trial, and Adoption stages are all important

The Adoption Process

  • Innovators, early adopters, early majority, late majority and laggards differ in their innovativeness

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