Consumer Behavior: Overview and Key Concepts
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Questions and Answers

Which of the following best illustrates the 'acquisition' stage within the consumption framework?

  • A student receives a new textbook purchased from the university bookstore. (correct)
  • A family discusses their needs and wants for an upcoming vacation.
  • A consumer researches different brands of laptops online.
  • A customer considers whether to recycle an old appliance or throw it away.

A marketing firm observes that sales of ice cream increase during the summer months. What type of relationship does this demonstrate?

  • No relationship at all, because ice cream sales vary randomly.
  • Correlation, indicating a relationship between time of year and ice cream sales. (correct)
  • Reverse causality, because buying more ice cream causes the summer months.
  • Causation, because the heat causes people to buy more ice cream.

In a family's decision to purchase a new car, which role is primarily responsible for conducting online research and comparing vehicle specifications?

  • The Decider
  • The Influencer
  • The Information Gatherer (correct)
  • The Disposer

A study finds that people who regularly consume organic food tend to have fewer health problems. Which of the following statements is the MOST accurate interpretation of this finding?

<p>A third variable, such as higher socioeconomic status, may influence both organic food consumption and health. (B)</p> Signup and view all the answers

Which activity is part of the 'post-acquisition' stage of the consumption framework?

<p>Deciding whether to keep, resell, or donate clothing after wearing it. (B)</p> Signup and view all the answers

A company implements a new training program for its employees, and productivity significantly increases. What concept does this scenario demonstrate?

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

A teenager influences their parents' decision to purchase a particular brand of gaming console by highlighting its advanced features and exclusive games. Which decision-making role does the teenager exemplify?

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

How do marketing strategies relate to consumer psychology, considering the legal framework?

<p>Marketers use psychological principles to influence consumers, within the boundaries of the laws. (A)</p> Signup and view all the answers

A new grocery store arranges its produce section to place healthier options like fruits and vegetables at eye level and near the entrance, while processed snacks are placed on lower shelves and in the back. This strategy primarily utilizes which concept?

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

A company launches an advertising campaign that focuses on the message that their product will help consumers achieve a sense of belonging and social acceptance. This campaign is primarily targeting which component of the MAO framework?

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

A consumer realizes their current smartphone is outdated and no longer supports necessary applications. This realization represents which stage of the consumer decision-making process?

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

Which scenario best exemplifies System 1 thinking in consumer behavior?

<p>Impulsively buying a candy bar at the checkout counter without much conscious thought. (D)</p> Signup and view all the answers

A company wants to increase the effectiveness of its online advertising. According to the principles of attention and memory, which strategy would likely be MOST effective?

<p>Employing bright colors, striking visuals, and concise messaging to capture attention. (C)</p> Signup and view all the answers

A researcher is designing an experiment to study the impact of in-store music on consumer spending. One group of shoppers hears upbeat music, while another group hears no music. What is the MOST appropriate label for each group?

<p>The group with upbeat music is the 'treatment' group; the group with no music is the 'control' group. (A)</p> Signup and view all the answers

A loyalty program offers customers a free coffee after they purchase five coffees. This is an example of which concept?

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

A consumer is trying to decide between two brands of laptops. Brand A has superior processing speed, while Brand B has a longer battery life. If the consumer is using separate evaluation, which factor would be MOST difficult to assess?

<p>The good's features are hard to evaluate. (C)</p> Signup and view all the answers

To effectively memorize a 10-digit phone number, a person groups the digits into three sets: the area code, the exchange, and the last four digits. Which memory principle is being applied?

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

A TV commercial shows a family happily drinking a specific brand of juice while enjoying breakfast together. Apart from directly communicating the drink's flavor, aroma, and nutritional value, the commercial is hoping to also associate the juice with...

<p>Positive family experiences (D)</p> Signup and view all the answers

A study finds a correlation between consumption of organic food and lower incidence of cancer. Which of the following is the MOST appropriate conclusion?

<p>A third variable, such as higher socioeconomic status, might explain the correlation. (B)</p> Signup and view all the answers

To establish a causal relationship between exercise and weight loss, what type of study would be MOST appropriate?

<p>An experiment where participants are randomly assigned to exercise or non-exercise groups, controlling for other variables. (D)</p> Signup and view all the answers

Which measurement approach would BEST capture a comprehensive view of a consumer's attitude towards a new product?

<p>A combination of open-ended questions, rating scales, and purchase history data. (C)</p> Signup and view all the answers

A consumer receives a tax refund and decides to use it for a vacation they had been planning. This decision is BEST explained by which concept?

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

A company wants to launch a new advertisement. To ensure the ad is effective, what should they prioritize FIRST?

<p>Making sure the ad is exposed to the target audience. (D)</p> Signup and view all the answers

Advertisers often repeat the same ad message across different channels. This strategy PRIMARILY aims to combat what aspect of attention?

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

A company reformulates its soda recipe with a slightly reduced sugar content. If they want to ensure consumers DON'T notice the change, the reduction should be:

<p>Above the absolute threshold but below the just noticeable difference (JND). (B)</p> Signup and view all the answers

A radio advertisement plays a very quiet tone that most people cannot hear, but some might unconsciously register. This tone is operating at what level?

<p>Below the absolute threshold. (B)</p> Signup and view all the answers

A company subtly increases the price of its product, hoping customers won't notice. Which concept are they applying?

<p>Just Noticeable Difference (JND) (C)</p> Signup and view all the answers

A food company introduces a new flavor of potato chips that has a very subtle hint of lime. To determine if consumers can perceive this flavor, the company should measure:

<p>The absolute threshold for lime flavor. (B)</p> Signup and view all the answers

What is the PRIMARY distinction between the absolute threshold and the just noticeable difference (JND)?

<p>Absolute threshold is about detecting the presence of a stimulus, while JND is about detecting a change in a stimulus. (A)</p> Signup and view all the answers

A company wants to add a more noticeable scent to its cleaning product line. To achieve this MOST effectively, they should focus on:

<p>Exceeding both the absolute threshold and the Just Noticeable Difference (JND). (C)</p> Signup and view all the answers

A brand introduces a 'new and improved' formula for its laundry detergent. To determine whether consumers perceive the difference in cleaning power, researchers should compare the change against the:

<p>Just Noticeable Difference (JND) in cleaning power (D)</p> Signup and view all the answers

A consumer is willing to pay more for a product framed as '80% fat-free' than the same product labeled '20% fat.' This is an example of:

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

A company discovers that consumers perceive its product as lower quality after a packaging change, even though the product itself remained the same. This indicates the packaging change was:

<p>Above the absolute threshold and the just noticeable difference (JND). (A)</p> Signup and view all the answers

Flashcards

Consumer Behavior

The study of how individuals decide to purchase and use products.

Consumption Process

The stages involved in acquiring and using products: acquisition, usage, disposal.

Decision-Making Roles

Roles in consumer behavior: Information gatherer, influencer, and decider.

Causation

When one variable directly causes a change in another variable.

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Correlation

A relationship where two variables change together but do not imply one causes the other.

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Reverse Causality

A situation where it appears one variable causes another, but it’s the opposite.

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Third Factor

An external variable that might influence both correlated variables.

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Post-Acquisition Evaluation

The assessment of a product after purchase and use, determining satisfaction.

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Environmental Cues

Factors like product location or price that influence decisions.

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Nudges

Small changes in the environment that make a desirable choice easier.

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MAO Framework

Motivation, Ability, Opportunity; factors influencing consumer behavior.

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Correlational Data

Data showing a relationship between two variables, not implying causation.

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Problem Recognition

Awareness of a gap between ideal and actual state prompting motivation.

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Information Search

The process of seeking information internally from memory or externally from sources.

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System 1 Thinking

Quick, intuitive thought process used in decision-making.

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System 2 Thinking

Slow, deliberate thought process used for complex decisions.

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Chunking

Grouping information into meaningful units to improve memory recall.

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Control Group

The group in an experiment that does not receive the treatment, serving as a baseline.

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Measuring Variables

Gathering information through various methods like surveys and observations.

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Contrast Effect

A stimulus stands out when it's significantly different from surrounding stimuli.

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Separate Evaluation

Assessing individual features instead of overall value, complicating decision-making.

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Mental Accounting

The way consumers categorize and evaluate money based on its source and intended use.

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Attention Types

Different ways attention can be focused, like selective or divided.

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Absolute Threshold

The smallest level of stimulus that can be detected by a person.

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Just Noticeable Difference (JND)

The minimal difference needed between two stimuli for detection.

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Comparison of Thresholds

Absolute threshold detects presence, JND detects changes.

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Marketing Application of Absolute Threshold

Using the concept to ensure product changes are noticeable enough for impact.

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Marketing Application of JND

Determining the extent of changes that consumers might not notice.

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Valuation Dilemma

Issues in consumers valuing products accurately due to biases.

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Framing Effects

The method of presenting information that affects decision-making.

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Study Notes

Consumer Behavior Overview

  • Consumer behavior encompasses purchasing decisions, including what, why, when, and where consumers buy.
  • The consumption process involves acquisition, usage, and disposal.
  • Decision-making roles include information gatherers, influencers, and deciders.
  • The consumption framework outlines stages: pre-acquisition (problem recognition, information search, evaluation), acquisition (taking action), and post-acquisition (usage, disposal, evaluation).
  • Marketers influence consumer behavior but must follow legal guidelines.

Correlation vs. Causation

  • Correlation: Two variables change together, but one doesn't cause the other.
  • Example: Healthier people tend to have higher incomes; this is a correlation, not causation. Possible reasons include reverse causality or a third factor (e.g., education).
  • Causation: One variable directly causes a change in another.
  • Example: Exercising regularly improves health—exercise causes the improvement.
  • Proving causation requires controlled experiments.
  • Key difference: Correlation describes relationships, while causation establishes direct cause-and-effect.

Measuring Variables

  • Measuring consumer behavior involves various methods like open-ended questions, surveys, behavioral observations, and biological markers.

Financial Decision-Making

  • Consumers manage finances for saving, debt repayment, and acquisition.
  • Mental accounting, time preferences, and spending attitudes influence decisions.
  • Mental accounting: Consumers value money differently based on source, anticipated use, and context.

Exposure, Attention, & Memory

  • For marketing to be effective, ads must be exposed, noticed, and remembered.
  • Attention is voluntary/involuntary, limited, selective, divided, and habituates over time.

Thresholds

  • Absolute threshold: The minimum level for perceiving a sensation. Example: the amount of sugar in coffee detectable.
  • Just Noticeable Difference (JND): The smallest detectable difference between two stimuli. Example: a specific volume change in TV.
  • Marketers utilize both to strategically adjust features (price, design, etc.) without consumers noticing significant changes.

Valuation

  • Consumers sometimes struggle to accurately value products due to a lack of information or cognitive biases like framing effects ("25% fat" vs "75% lean").
  • Environmental cues (product location, price tag) affect valuations
  • Nudges: small changes in the environment that make better choices easier to make.

Motivation, Ability, Opportunity (MAO)

  • Consumer behavior is influenced by their motivation (driven by needs, identity, risk), ability (financial, cognitive, physical factors), and opportunity (access to resources and information).
  • Marketing strategies may target any of these factors.
  • Problem recognition: recognizing a gap between the desired and current state triggers a need to act.
  • Information search: internal (memory recall) or external (others, experts).

System 1 & System 2 Thinking

  • System 1: quick, intuitive thinking.
  • System 2: slow, deliberate thinking.
  • Both systems work together, with System 1 initiating and System 2 deciding
  • Ad strategies can target either system based on MAO factors.

Additional Concepts (from Q&A)

  • Control vs. Treatment groups: Used in experiments for comparison.
  • Operationalization: Defining variables to measure them (e.g., measuring humor with a scale).
  • Chunking: Grouping information into meaningful units for better memorization (ex: phone numbers).
  • Contrast: A noticeable difference in stimuli (e.g., B&W photo in a colorful magazine.)
  • Evaluation Difficulty: Difficulty in assessing costs and benefits when features are hard to evaluate, or if multiple evaluations are required.
  • Intervention effectiveness: Methods to change behavior to change consumer decisions. (e.g., showing generic options to doctors)

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Description

Explore consumer behavior, from purchasing decisions to the consumption process involving acquisition, usage and disposal. Understand decision-making roles and stages, including pre-acquisition, acquisition, and post-acquisition. Learn the difference between correlation and causation with examples.

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