Consumer Behavior Quiz

Types of Buying Decision Behavior

• Complex Buying Behavior: Consumers highly involved in the purchase process, perceive significant differences between brands, and spend considerable time researching.
• Dissonance-Reducing Buying Behavior: Consumers are interested in the product but see few differences between brands. They may experience post-purchase dissonance (buyer’s remorse) and seek reassurance.
• Habitual Buying Behavior: Consumers have low involvement in the purchase and perceive minimal differences between brands. Purchases are often made out of habit or convenience.
• Variety-Seeking Buying Behavior: Consumers have low involvement but perceive significant differences between brands. They may switch brands for variety and try different options.

The Buyer Decision Process

• Need Recognition: The buyer recognizes a need or want that must be satisfied.
• Information Search: The buyer actively seeks information about products that can fulfill their need.
• Evaluation of Alternatives: The buyer compares different products or brands based on their attributes and preferences.
• Purchase Decision: The buyer chooses the specific product or brand to purchase.
• Post-Purchase Behavior: The buyer evaluates their purchase and reflects on their experience. This can lead to customer satisfaction or dissatisfaction.

The Buyer Decision Process for New Products

• Awareness: The buyer first becomes aware of the existence of the new product.
• Interest: The buyer develops an interest in learning more about the product and its benefits.
• Evaluation: The buyer evaluates the product’s features and how they could benefit them.
• Trial: The buyer seeks opportunities to try the product, often through samples, trial periods, or low-cost options.
• Adoption: The buyer decides to regularly use the product and incorporate it into their routine.

Consumer Markets and Buyer Behavior

• Consumer Markets: Groups of individuals and households that purchase goods and services for personal consumption.
• Factors Influencing Buyer Behavior: Cultural, social, personal, and psychological factors all play a role in shaping a consumer’s buying decisions.

PESTEL Analysis

• Political factors: Government regulations and policies can influence business operations and consumer behavior.
• Economic factors: Economic indicators like growth, inflation, and unemployment rates influence consumer spending power and purchasing decisions.
• Social factors: Cultural trends, demographics, and social values impact consumer preferences and purchasing behavior.
• Technological factors: Technological advancements create new products, services, and channels for marketing and distribution, shaping consumer expectations.
• Environmental factors: Consumer awareness of ecological issues and sustainability drive demand for environmentally friendly products.
• Legal factors: Laws and regulations governing product safety, consumer rights, and business practices impact companies and consumers.

BCG Matrix

• Stars: Products with a high market share and growth rate. These require investment to maintain growth and capitalize on their potential.
• Cash Cows: Products with a high market share but a low growth rate. They generate substantial profits and can be used to fund other businesses or products.
• Question Marks: Products with a low market share but a high growth rate. They require significant investment to determine if they can become Stars or will eventually become Dogs.
• Dogs: Products with a low market share and growth rate. These may generate low profits and resources may be better invested elsewhere.

Ansoff Matrix

• Market Penetration: Focuses on increasing sales of existing products in existing markets by strategies like price reductions, promotions, and improved customer service.
• Market Development: Entails introducing existing products into new geographic markets to expand reach and reach new customer segments.
• Product Development: Entails creating new products to be sold in existing markets. This involves innovation and meeting evolving customer needs.
• Diversification: Introducing new products into new markets, representing the riskiest growth strategy but also offering the potential for significant rewards.

Test your knowledge on different types of buying decision behaviors and the buyer decision process. This quiz covers concepts such as complex buying behavior, habitual buying behavior, and the stages consumers go through when making a purchase. Dive deep into the psychology of consumer choices!