Consumer Behavior and Market Types
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Questions and Answers

Which of the following is NOT a type of market categorized in the text?

  • Wholesaler
  • Investor (correct)
  • Institution
  • Reseller

    • Which stage of the consumption process involves recognizing a need or want?

  • Purchase Decision
  • Information Search
  • Problem Recognition (correct)
  • Evaluation of Alternatives

    • Based on the text, how can understanding consumer behavior improve product development?

  • By increasing sales revenue directly
  • By identifying market gaps and unmet needs (correct)
  • By decreasing marketing costs
  • By fostering customer loyalty

    • A person experiencing a sudden craving for pizza is an example of what?

    <p>Internal trigger for consumption (A)</p> Signup and view all the answers

    Which of the following BEST describes the consumer decision-making process?

    <p>A dynamic process that can be influenced by various factors (C)</p> Signup and view all the answers

    How does understanding consumer behavior enhance customer experience?

    <p>By creating personalized and satisfying interactions (A)</p> Signup and view all the answers

    Which of the following accurately describes the characteristics of a social class categorized as 'AB'?

    <p>They have a greater capacity to focus on their &quot;self&quot; and may have lower levels of empathy. (C)</p> Signup and view all the answers

    Which social class demonstrates a greater dependence on other people for support?

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

    What is a primary benefit of tailoring marketing messages to consumer preferences?

    <p>Increasing the effectiveness of advertising and promotions (D)</p> Signup and view all the answers

    What is one common characteristic observed in individuals belonging to the 'C' social class?

    <p>They exhibit a strong awareness of the outcomes of hard work and dedication. (C)</p> Signup and view all the answers

    Which of the following is NOT mentioned as a reason for the importance of understanding consumer behavior?

    <p>Reduced competition in the marketplace (B)</p> Signup and view all the answers

    According to the Input-Process-Output model, what is the 'process' stage?

    <p>The buyer's decision-making process (D)</p> Signup and view all the answers

    Which generation is associated with the period between 1965 and 1979?

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

    Which of these is NOT considered a personal factor influencing consumer behavior?

    <p>Aspirational Groups (C)</p> Signup and view all the answers

    Which of the following marketing strategies is an example of an 'input' in the Input-Process-Output model?

    <p>Developing a compelling advertisement (C)</p> Signup and view all the answers

    Which group directly influences an individual's actions and membership?

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

    Which of the following is NOT a psychological construct that influences consumer behavior?

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

    What is 'selective retention'?

    <p>Remembering information that aligns with one's beliefs and values. (A)</p> Signup and view all the answers

    Which of these is a common example of a 'Reference Group'?

    <p>All of the above (D)</p> Signup and view all the answers

    What is the primary impact of an individual's occupation on consumer behavior?

    <p>It affects the goods and services they are likely to purchase. (C)</p> Signup and view all the answers

    What is the main contribution of the Howard-Sheth model to understanding consumer behavior?

    <p>Providing a comprehensive model of the consumer decision-making process. (B)</p> Signup and view all the answers

    Which of the following is an example of a 'significative stimulus'?

    <p>A promotional offer on a new smartphone. (A)</p> Signup and view all the answers

    How does 'selective distortion' affect consumer behavior?

    <p>It can lead consumers to misinterpret information to fit their existing beliefs. (D)</p> Signup and view all the answers

    According to the psychological model, what is the relationship between learning and behavior?

    <p>Learning is a necessary condition for behavioral change. (D)</p> Signup and view all the answers

    Which of the following is NOT a factor that influences the consumer's decision during the Purchase stage?

    <p>Personal Values (C)</p> Signup and view all the answers

    What is referred to as the anxiety or regret experienced after a purchase, particularly for high-involvement purchases?

    <p>Post-Purchase Dissonance (B)</p> Signup and view all the answers

    Which of these is an example of external search during the Information Search stage?

    <p>Reading a product review online (D)</p> Signup and view all the answers

    Which of the following is a key element of the Post-Purchase stage?

    <p>Customer satisfaction with the product or service (D)</p> Signup and view all the answers

    What is meant by 'Word-of-Mouth' in the Post-Purchase stage?

    <p>Consumers sharing their experiences with others (A)</p> Signup and view all the answers

    What is the primary goal of a significative stimulus?

    <p>Capture attention and influence perception (B)</p> Signup and view all the answers

    Which of the following best describes stimulus ambiguity?

    <p>A stimulus that can be interpreted in multiple ways (B)</p> Signup and view all the answers

    What characterizes a membership group in sociological terms?

    <p>A group that directly influences a person's behavior (D)</p> Signup and view all the answers

    In the Engel-Kollat-Blackwell model, what does the consumer decision process depend on?

    <p>Decisional variables and external factors (D)</p> Signup and view all the answers

    Which of the following is a characteristic of a significative stimulus?

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

    What is the focus of the Expectation Confirmation Model?

    <p>Information system models, particularly for technology (C)</p> Signup and view all the answers

    What is the primary purpose of aspirational groups for individuals?

    <p>Represent groups to which individuals wish to belong (B)</p> Signup and view all the answers

    Which model is suitable for testing new products?

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

    What type of buying behavior is characterized by high consumer involvement and significant perceived differences between brands?

    <p>Complex Buying Behavior (B)</p> Signup and view all the answers

    Which behavior arises when consumers experience low differentiation between brands but high purchase involvement?

    <p>Dissonance-Reducing Buying Behavior (A)</p> Signup and view all the answers

    In which stage of the consumer buying decision process do consumers assess different options based on set criteria?

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

    What approach to consumer behavior focuses on understanding the broader social and cultural factors influencing decisions?

    <p>Holistic Approach (C)</p> Signup and view all the answers

    What is the primary outcome of satisfying consumer needs during the buying process?

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

    Which of the following behaviors is motivated by a desire for change rather than dissatisfaction?

    <p>Variety-Seeking Buying Behavior (D)</p> Signup and view all the answers

    What is the effect of cultural factors on consumer behavior?

    <p>They shape values and preferences. (D)</p> Signup and view all the answers

    What signifies the low involvement and little conscious effort in routine purchases?

    <p>Habitual Buying Behavior (C)</p> Signup and view all the answers

    Flashcards

    Consumer

    Individuals who buy goods for personal use.

    Consumer Behavior

    Actions taken by consumers when making purchasing decisions.

    Importance of Consumer Behavior

    Helps businesses improve strategies, develop products, and enhance experiences.

    Pre-Purchase Stage

    The phase where consumers recognize a need and seek information.

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    Problem Recognition

    The initial stage where consumers identify a need.

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    Information Search

    Active seeking of information on possible solutions to a need.

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    Buying Habits

    Patterns or habits consumers exhibit when purchasing.

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    Customer Loyalty

    Long-term commitment of consumers to repurchase a brand.

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    Evaluation of Alternatives

    The process of comparing different options based on criteria like price and quality.

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    Purchase Decision

    The conclusion a consumer reaches to buy a specific product or service.

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    Post-Purchase Behavior

    The feelings and actions a consumer exhibits after buying a product.

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    Customer Satisfaction

    The level of contentment a consumer feels with their purchase.

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    Post-Purchase Dissonance

    The anxiety or regret a consumer feels after making a high-stakes purchase.

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    Social Class AB

    Individuals with high wealth and self-focus, less empathic.

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    Need Recognition

    The realization of a deficiency, inspiring desire for a solution.

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    Social Class C

    People who strive for economic stability and recognize hard work benefits.

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    Social Class DE

    Lower class individuals who depend on others, are more anxious, and have greater empathy.

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    Membership Groups

    Groups that directly influence individuals and to which they belong.

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    Aspirational Groups

    Groups that individuals wish to belong to but currently do not.

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    Complex Buying Behavior

    Involves high consumer involvement and significant brand differences, typically for expensive purchases.

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    Reference Groups

    Groups that serve as benchmarks for comparison in shaping attitudes and behavior.

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    Dissonance-Reducing Buying Behavior

    High involvement with minimal brand differences, causing post-purchase anxiety.

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    Generational Cohorts

    Groups of people born within a specific date range that share similar experiences.

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    Habitual Buying Behavior

    Low involvement and little brand differentiation, leading to routine purchases.

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    Cultural Factors

    Norms, values, and traditions that shape consumer behavior within society.

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    Occupation Influence

    The profession of an individual that affects the goods and services they purchase.

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    Overt Search

    Active and conscious effort to seek product information.

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    Stimulus Ambiguity

    When a stimulus can be interpreted in multiple ways.

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    Significative Stimulus

    Designed to capture attention and influence perception.

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    Sociological Model

    Recognizes consumers are influenced by social groups.

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    Engel-Kollat-Blackwell Model (EKB)

    Describes consumer decision process affected by external forces.

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    Expectation Confirmation Model

    Used for understanding consumer satisfaction in tech items.

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    Input-Process-Output Model (IPO)

    A model describing how input stimuli lead to buyer decisions and outputs.

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    Input

    Environmental stimuli such as the Marketing 4Ps that affect consumer behavior.

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    Process

    The buyer’s decision-making process influenced by personal characteristics.

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    Output

    The buyer's responses including purchase decisions and post-purchase behavior.

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    Selective Attention

    Focusing on certain stimuli while ignoring others.

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    Selective Retention

    Remembering information that aligns with existing beliefs while forgetting others.

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    Howard-Sheth Model

    A model explaining consumer behavior in decision-making for purchases.

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    Study Notes

    Consumer Behavior

    • Consumers are final users, individual households buying goods and services for personal consumption.
    • Human behavior is influenced by internal and external factors.
    • Consumer behavior encompasses actions consumers take when making purchasing decisions.

    Types of Markets

    • Consumers: Personal purchases
    • Resellers: Buying and selling goods
    • Wholesalers: Selling goods in bulk
    • Retailers: Selling goods in units
    • Businesses: Using goods/services for operations
    • Institutions: Providing services
    • Government: Public use
    • International: Overseas transactions

    Importance of Consumer Behavior for Business

    • Improved Marketing Strategies: Understanding customer needs and preferences allows for tailored marketing campaigns, resulting in more effective advertising, promotions, and sales.
    • Product Development and Innovation: Insights into customer behavior help identify market gaps, develop products to meet unmet needs, and improve existing offerings.
    • Enhanced Customer Experience: Personalized customer experiences, including service interactions and overall shopping experiences, build customer loyalty and satisfaction.
    • Increased Customer Loyalty: Strong customer relationships and understanding needs strengthens customer loyalty and repeat business.
    • Competitive Advantage: Understanding consumer behavior better than competitors provides a significant competitive edge in the marketplace.

    Consumer Decision-Making Stages

    • Pre-Purchase:

      • Problem Recognition: Consumer identifies a need or want.
      • Information Search: Consumer gathers information about potential solutions.
      • Evaluation of Alternatives: Consumer reviews choices based on factors like price, quality, and brand.

    • Purchase:

      • Purchase Decision: Consumer selects a product or service from a vendor.
      • Actual Purchase: Consumer completes the transaction.

    • Post-Purchase:

      • Post-purchase Behavior: Consumer's feelings and actions after purchase.
        • Customer Satisfaction: Consumer's level of happiness with the product/service.
        • Product Use and Disposal: How the product is used and disposed of.
        • Post-Purchase Dissonance: Anxiety or regret after a purchase, especially for high-involvement purchases.
        • Word-of-Mouth: Sharing experiences with others, affecting purchasing decisions.
        • Repeat Purchases: Repurchasing the same product or service.

    Consumer Buying Decision Process

    • Need Recognition: State of deprivation, desire for a product or service.
    • Information Search: Personal and Non-Personal.
    • Evaluation of Alternatives: Options and their criteria.
    • Purchase Decision: Final choice.
    • Post-Purchase Behavior: Satisfaction, Retention, Dissatisfaction.

    Purchasing Behavior Segmentation

    • High Involvement: Complex buying, Variety seeking, Dissonance reducing.
    • Low Involvement: Habitual buying.
    • Complex Buying Behavior: High involvement & significant differences between brands (expensive, infrequent, risky purchases)
    • Dissonance-Reducing Buying Behavior: High involvement but little difference between brands (post-purchase anxiety)
    • Variety-Seeking Buying Behavior: Low involvement & high brand perception differences (desire for change/novelty)
    • Habitual Buying Behavior: Low involvement, little perceived difference between brands (routine purchases, low effort).

    Approaches to Consumer Behavior

    • Managerial Approach: Focuses on practical applications for business, including marketing strategies, product development, and customer relationships.
    • Holistic Approach: Considers consumer behavior within a broader social and cultural context.

    Factors Affecting Consumer Behavior

    • Cultural: Norms, values, traditions, and behaviors shared by members of a society.
    • Social: Class (AB, C, DE), Groups (Membership, Aspirational), Family (most important consumer buying organization), Roles & Status.
    • Personal: Age & Life Cycle, Occupation, Lifestyle, Personality, Beliefs & Attitudes, Learning, Perception, Motivation.
    • Psychological: Beliefs, Attitudes. Learning, Perception, Motivation.

    Consumer Behavior Models

    • Pavlovian (Classical Conditioning): Association of stimuli with a response.
    • Economic Model: Pricing affects purchasing decisions.
    • Input-Process-Output (IPO): Environmental stimuli, internal processing, and resulting responses.
    • Psychological Model: Learning, perception, beliefs, and attitudes.
    • Howard-Sheth: Complex decision-making process, including inputs, constructs, and outputs.
    • Nicosia: Model for testing new products, focusing on consumer attitude and firm message.
    • Engel-Kollat-Blackwell (EKB): External factors influence consumer decision-making.
    • Expectation Confirmation: Post-purchase perceptions and satisfaction.

    Stimulus Ambiguity

    • Occurs when a stimulus can be interpreted in multiple ways.
    • Causes confusion, varied responses, and potential negative perception.

    Other Relevant Concepts

    • Significance Stimulus: Elements in the environment or marketing mix capable of capturing a consumer's attention and influencing their perceptions, attitudes, or behavior.
    • Overt Search (Actual): Deliberate consumer effort to seek information about a product/service to make a purchase decision.

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    Related Documents

    Consumer Behavior Models PDF

    Description

    Explore the key aspects of consumer behavior, including how internal and external factors influence purchasing decisions. Understand different market types such as resellers, wholesalers, and retailers, and learn the importance of consumer insights for effective marketing strategies.

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