Consumer Behavior and Marketing Mix

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What role do consumers play in the development of new product ideas?

They contribute by sharing experiences and feedback. (correct)

They only adopt existing products without creating new ideas.

They are only involved in the purchasing decisions.

They provide no input and rely solely on marketers.

Which statement describes how consumers perceive price?

Price does not influence consumer purchasing behavior.

Price is viewed as irrelevant in the purchasing process.

Price is treated purely as a promotional tool.

Price serves as an indicator of product quality. (correct)

How does physical evidence influence consumer behavior?

It is not considered important for services.

It solely impacts online purchasing decisions.

It helps in differentiating brands and enhancing perceptions of quality. (correct)

It only affects the price rather than the quality perception.

What impact do promotions have on consumer behavior?

They sometimes trigger immediate purchasing through special offers. Signup and view all the answers

Why is it important for marketers to adapt their strategies in terms of place?

Consumers demand greater convenience and variety in shopping options. Signup and view all the answers

What is selective perception in marketing?

The process by which customers filter out irrelevant information. Signup and view all the answers

What does the Gestalt theory in perception imply?

The overall pattern is more important than the individual elements. Signup and view all the answers

How does the concept of the Differential threshold affect pricing strategies?

Price reductions should be communicated clearly, and increases should be less obvious. Signup and view all the answers

What is a primary challenge customers face due to market clutter?

Being overwhelmed by excessive marketing information. Signup and view all the answers

Why is consistency important in the marketing mix?

To create a singular image and effective positioning in the market. Signup and view all the answers

What is the first stage of the NIAPP Consumer Decision Making model?

Need recognition Signup and view all the answers

In the information search stage, the amount of information a customer seeks is primarily influenced by which factor?

Perceived risk Signup and view all the answers

What does the multi-attribute model in the alternative evaluation stage allow customers to do?

Evaluate product types and brand choices simultaneously Signup and view all the answers

What is a common reason for consumers abandoning their shopping carts during the purchase stage?

Unexpected circumstances arise Signup and view all the answers

Cognitive dissonance occurs when a consumer feels:

Uneasy about drawbacks of their choice Signup and view all the answers

How can marketers alleviate cognitive dissonance for customers post-purchase?

By highlighting benefits of the chosen brand Signup and view all the answers

What is an important consideration for marketers when entering international markets?

Cultural sensitivity and local adaptation Signup and view all the answers

Social class influences buying behavior primarily through:

Similar product and brand preferences Signup and view all the answers

What triggers impulse buying behavior in consumers?

Ads and promotions Signup and view all the answers

What primarily differentiates needs from wants in consumer behavior?

Needs arise from deprivation while wants are shaped by culture Signup and view all the answers

Why is family considered a primary source of influence on consumer buying behavior?

They affect values and lifestyle Signup and view all the answers

In the post-purchase stage, what is used to measure customer satisfaction?

Performance versus expectations Signup and view all the answers

What role does culture play in consumer behavior?

It creates value systems and behaviors Signup and view all the answers

According to Maslow's hierarchy, which need is most foundational?

Physiological needs Signup and view all the answers

Study Notes

Consumer Behavior and the Marketing Mix

Product: Consumers purchase products for functional or hedonic benefits, developing brand loyalty and adopting innovations. New product ideas originate from consumer research and feedback.

Promotions

Promotional strategies: Audiences respond to marketing promotions like advertising. Special promotions often trigger consumer purchasing. Consumers are active creators and sharers of brand experiences on social media.

Place

Location, store settings and online options: Store locations can provide convenience or a perceived status. Retail buying is transitioning to digital and omni-channel formats. Marketers must adapt to the consumer demand for wider product choices and convenience.

Price

Price perception: Consumers view price as a measure of quality. Price changes affect consumer response. Marketers use pricing to stimulate bulk purchases (e.g., FMCG products) or create perceptions of exclusivity (luxury goods).

Physical Evidence

Tangibility and perception: Physical evidence, crucial for intangible services (e.g., hotels), helps differentiate brands based on perceived quality. Retail store design and layout influence customer perception and buying behavior.

People

Customer service staff: Customer satisfaction is greatly influenced by the effectiveness of customer service staff. Companies need to select staff suitable for their product category and target customer.

Process

Customer experience and digital channels: Seamless customer transactions with minimal friction are key to consumer convenience. Digital processes and omni-channel marketing (online search, offline purchase) are becoming increasingly important.

Consumer Decision Making Model (NIAPP)

Stage 1: Need Recognition: Consumers recognize a gap or deprivation. Dissatisfaction with the existing situation or awareness of a better alternative initiates the purchase cycle. Marketing stimuli (ads, displays, online messaging) trigger this need recognition.
Stage 2: Information Search: Consumers collect relevant information. The extent of search depends on the perceived risk associated with the purchase. Customers research through various sources, including stores, online channels, social media, and past experiences. Motivation drives the search, based on unmet needs.
Stage 3: Alternative Evaluation: Consumers evaluate product attributes and brands. This involves rating products and brands, often using multiple criteria and assigning importance factors to specific attributes (the 'multi-attribute model'). Selective perception guides consumers towards marketing stimuli relevant to their needs.
Stage 4: Purchase: Consumers decide to purchase their preferred brand. Purchase intentions don't always lead to immediate action. Unexpected factors and external influences (e.g., abandoned shopping carts) might alter the decision. Marketers aim to encourage purchases through promotions and incentives. Attitudes influence how consumers evaluate options.
Stage 5: Post-Purchase Behavior: Consumers experience satisfaction based on the performance relative to their expectations. Post-purchase provides opportunities to build relationships and encourage repeat buying (loyalty). Companies must actively manage customer complaints and feedback.
Cognitive Dissonance: This occurs when consumers feel uncertain about their choices, realizing potential benefits missed from other options. Marketers alleviate this by highlighting the chosen brand's benefits and addressing any anxiety through advertising and post-sales service.

Consumer Behavior – External Factors

Culture: Cultural values, norms, language, religion, and customs shape consumer behavior. Marketers need to be culturally sensitive and adapt to local preferences for localized marketing.
Subcultures: Subgroups within a culture share common values and experiences (e.g., nationality, religion, racial background, geographic location).
Social Class: Social class influences consumer behavior and product preferences (e.g., clothing, home furnishing).
Groups: People seek advice and influence from others, which affects purchase decisions, particularly through peer-to-peer influence. Social media plays a critical role in this regard. Word-of-mouth is often more persuasive than advertising. Families are primary influencers, shaping values and lifestyle choices.

Consumer Behavior – Internal Factors

Motivation: Needs and wants drive consumer behavior. Products satisfy needs and wants. Marketers identify unsatisfied needs/wants and strategically utilize ads and promotions to stimulate behavior.
Needs and Wants: Needs represent felt deprivation (e.g., hunger) prompting behavioral attempts to fulfillment, while wants are shaped by culture and marketing. Hedonic (pleasure) and utilitarian (functionality) needs influence product choices.
Perception: Consumers actively choose from countless stimuli in the market, leading to selective perception. Gestalt theory describes holistic perception, noting consistency. Marketers should accommodate the JND (just noticeable difference) and the differential threshold when adjusting pricing.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores key concepts of consumer behavior and the marketing mix, including product, promotions, place, and price. Understand how consumers interact with brands and the factors influencing their purchasing decisions. Test your knowledge on marketing strategies and consumer perceptions.