Consumer Behavior Quiz
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Questions and Answers

Which of the following best describes the role of qualitative approaches in understanding consumer behavior, as emphasized in the course?

  • To determine the optimal pricing strategy for a new product launch.
  • To predict future market trends using regression models.
  • To gain in-depth insights into consumer decision-making processes through methods like interviews and observations. (correct)
  • To quantify consumer preferences through statistical analysis.

A car manufacturer notices that their primary customer base is aging. Which of the following strategies would best address this demographic shift, based on the principles discussed?

  • Ignoring the demographic shift and focusing on the existing customer base.
  • Increasing prices to cater to the perceived wealth of the aging demographic.
  • Redesigning the car's appearance and adjusting marketing to appeal to younger, more adventurous consumers. (correct)
  • Maintaining the current marketing strategy, as older customers are more loyal.

A snack food company wants to increase sales of its product. According to the examples provided, which advertising strategy would MOST likely be effective?

  • Positioning the snack as a healthy dessert alternative.
  • Advertising the snack as a convenient way to satisfy hunger between meals. (correct)
  • Promoting the snack as a luxury item for special occasions only.
  • Highlighting the product's high sugar content for energy.

When are consumers LEAST likely to demonstrate brand loyalty, based on the examples?

<p>When booking airline tickets. (D)</p> Signup and view all the answers

What is the ultimate goal of understanding the consumer decision process?

<p>To create more effective marketing strategies and product offerings that better meet consumer needs. (D)</p> Signup and view all the answers

A company is preparing to launch a new product. What should they prioritize to understand consumer purchase decisions effectively?

<p>Analyzing the decision stages, key players, decision criteria, and credible information sources influencing consumers. (A)</p> Signup and view all the answers

Which of the following methods is MOST suitable for gaining an in-depth understanding of the emotional factors influencing a consumer’s purchase of a luxury watch?

<p>In-depth interviews with a small group of luxury watch consumers. (D)</p> Signup and view all the answers

A business is trying to understand why a particular marketing campaign failed to resonate with its target audience. Which approach would provide the MOST valuable insights?

<p>Performing qualitative research, such as focus groups, to explore consumer perceptions of the campaign. (C)</p> Signup and view all the answers

A company wants to understand general consumer attitudes towards electric vehicles before launching a new model. Which research approach would be most suitable?

<p>Descriptive research to outline consumer demographics and preferences. (C)</p> Signup and view all the answers

A luxury car brand observes that their vehicles appear 'cheap' at exclusive boat shows. Which type of research is exemplified by this observation?

<p>Observational research. (A)</p> Signup and view all the answers

A clothing retailer wants to understand how teenagers interact with their products in a real-world setting. Which research method should they employ?

<p>Undertake ethnographic research in teenagers' natural environments. (B)</p> Signup and view all the answers

Which of the following is the FIRST step a company should take when determining a research design for a new project?

<p>Defining the specific research objectives and information needed. (A)</p> Signup and view all the answers

A marketing team is gathering data on market size by looking at government reports and academic journals. What type of research are they conducting?

<p>Secondary research. (B)</p> Signup and view all the answers

A company is launching a new line of luxury chocolates. Which marketing approach would most effectively appeal to consumers' hedonic desires?

<p>Creating visually appealing packaging and advertising that evoke feelings of indulgence and pleasure. (D)</p> Signup and view all the answers

Which type of data is best suited for identifying emerging trends and patterns in customer behavior?

<p>Unstructured qualitative social media posts. (B)</p> Signup and view all the answers

According to the information, why do many businesses primarily focus on targeting consumer 'wants' rather than 'needs'?

<p>Needs are more easily satisfied, leading to less repeat business compared to wants. (C)</p> Signup and view all the answers

A market research brief should EXCLUDE which of the following elements?

<p>Detailed methodology and statistical analysis plan. (D)</p> Signup and view all the answers

A company selling energy drinks releases an advertisement featuring athletes achieving peak performance. According to the theory of planned behavior, what cognitive component is this advertisement primarily trying to influence?

<p>Attitude towards the behavior by associating the drink with positive outcomes. (A)</p> Signup and view all the answers

What is an alternative term for secondary research?

<p>Desk research. (A)</p> Signup and view all the answers

A company that manufactures cleaning products is trying to appeal to consumer attitudes. Which marketing strategy would be most effective in creating a positive attitude toward their brand?

<p>Creating advertisements that evoke nostalgic feelings by referencing familiar, comforting scenarios. (B)</p> Signup and view all the answers

A retail store is redesigning its layout to improve the 'physical evidence' aspect of the 7Ps of marketing. Which change would most directly address this?

<p>Improving the cleanliness, atmosphere, and aesthetic appeal of the store environment. (B)</p> Signup and view all the answers

Which of the following is the BEST example of how technological advancements can impact consumer behavior, considering macro factors?

<p>The development of e-commerce platforms causing a shift from brick-and-mortar stores to online shopping. (D)</p> Signup and view all the answers

How might a significant increase in inflation rates MOST directly affect consumer behavior, according to economic factors?

<p>Consumers are more likely to purchase durable goods as a hedge against rising prices. (D)</p> Signup and view all the answers

Considering personal factors, how does 'conscientiousness' from the Big Five personality traits MOST likely influence a consumer's purchasing decisions?

<p>Careful planning and research before making a purchase. (A)</p> Signup and view all the answers

A marketing campaign featuring a celebrity endorsement is MOST directly appealing to which of the following social factors?

<p>Reference groups. (D)</p> Signup and view all the answers

How would a collectivist culture MOST likely influence consumer behavior in comparison to an individualistic culture?

<p>Stronger brand loyalty and preference for established brands. (D)</p> Signup and view all the answers

If a government imposes new tariffs on imported goods, which of the following outcomes is MOST likely, considering macro factors?

<p>Increased prices for consumers and potential shifts in purchasing behavior towards domestic alternatives. (C)</p> Signup and view all the answers

How does a consumer's level of 'openness to experience' from the Big Five personality traits MOST likely influence their attitude towards new product innovations?

<p>They are more likely to adopt new technologies early and experiment with different brands. (D)</p> Signup and view all the answers

Which scenario BEST illustrates the impact of a reference group on consumer behavior?

<p>A teenager purchases a specific brand of sneakers to fit in with their school's popular kids. (B)</p> Signup and view all the answers

A researcher aims to understand consumer behavior related to a new product launch. They have limited time and resources. Which primary research method would be most suitable for gathering initial insights from a diverse group of potential customers?

<p>Organizing focus groups to facilitate discussions and gather feedback. (B)</p> Signup and view all the answers

A marketing team wants to deeply understand the motivations and decision-making processes of individual consumers when purchasing luxury goods. Which research method would provide the most detailed and nuanced insights?

<p>Performing in-depth interviews to explore personal narratives and values. (A)</p> Signup and view all the answers

Which of the following sampling methods is LEAST likely to produce a representative sample of a population?

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

A researcher is studying online consumer behavior. Which method would be most appropriate for understanding how users navigate a website and interact with its features?

<p>Performing observational studies using web analytics and heatmaps. (A)</p> Signup and view all the answers

A company is launching a new line of eco-friendly cleaning products and wants to identify potential opinion leaders who can influence consumer adoption. Which sampling approach would be most effective?

<p>Snowball sampling, starting with known environmental advocates. (D)</p> Signup and view all the answers

A researcher wants to understand the cultural influences on consumer purchasing decisions in different countries. Which research approach would be most suitable?

<p>Performing ethnographic studies involving immersion in local cultures. (B)</p> Signup and view all the answers

A company is trying to determine how changes in the design of their product packaging will affect consumer perception. Which research method would be most effective for gathering this data?

<p>Organizing focus groups to discuss packaging design opinions. (D)</p> Signup and view all the answers

A researcher is investigating the impact of social media on teenage fashion choices. Which research method would be most suitable for understanding the nuances of this influence?

<p>Performing in-depth interviews with teenagers about their social media habits and fashion choices. (B)</p> Signup and view all the answers

Which scenario would benefit MOST from using observational research rather than relying solely on surveys or interviews?

<p>Gaining an understanding of sensitive or private behaviors that individuals might be unwilling to openly discuss. (A)</p> Signup and view all the answers

A company that sells software is trying to get feedback for a new user interface. They have the resources to conduct any type of primary research, and wants to quickly iterate on their design. Which method would be most useful?

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

In the SOSTAC framework, what is the primary purpose of conducting a situation analysis?

<p>To understand the internal and external factors affecting the company's performance. (B)</p> Signup and view all the answers

A consumer consistently purchases the same brand of coffee without much thought or research. According to consumer behavior types, this is an example of what?

<p>Habitual buying behavior. (C)</p> Signup and view all the answers

When are consumers most likely to exhibit variety-seeking behavior?

<p>When the perceived risk of making a wrong choice is low and the potential reward is high. (C)</p> Signup and view all the answers

A consumer is considering buying a new laptop. They compare specifications, read reviews, and seek recommendations before making a decision. Which type of involvement is this?

<p>High involvement. (D)</p> Signup and view all the answers

What is the primary motivation for consumers to look at product ratings and reviews before making a purchase?

<p>To reduce the risk associated with the purchase. (A)</p> Signup and view all the answers

A luxury watch is purchased after extensive research and deliberation. However, another consumer purchases a basic watch with little to no research, simply to tell time. What does this illustrate about involvement continuum?

<p>The placement of a product on involvement continuum is mostly dependent on a consumer's individual preferences. (A)</p> Signup and view all the answers

Which of the following statements represents how rational and emotional factors influence consumer decision-making?

<p>Every decision involves a blend of both rational considerations and emotional factors. (D)</p> Signup and view all the answers

A company is deciding whether to focus on improving existing products or innovating entirely new ones. Which aspect of the SOSTAC framework would best guide this decision?

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

Flashcards

Consumer Behavior Course Goals

Understanding consumer behavior, data collection, and analysis to understand consumer purchase decisions.

Qualitative Market Research

Qualitative methods to understand consumer behavior and the decision-making process.

Influences on Consumer Decision Process

Factors that influence a consumer's decision-making when purchasing products/services.

Demographics

The profile of a group of customers who are similar in some way and who, therefore, have similar product needs.

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Mercedes Demographic Challenge

Mercedes needs to attract younger buyers.

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Snickers Marketing Strategy

Positioning it as a hunger solution rather than dessert impacts consumer perception and purchase.

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Brand Loyalty

The tendency to favor a particular brand.

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Flight Purchase Factors

When buying flights people often seek the cheapest.

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Descriptive Research

Seeks to describe characteristics of a population or phenomenon being studied.

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Casual Research

Explores cause-and-effect relationships between variables.

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Observational Research

Involves systematically watching and recording behavior without direct interaction.

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Ethnographic Research

Studies people and cultures in their natural environment.

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Primary Research

Data gathered directly from the source.

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Secondary Research

Data that already exists, collected for another purpose.

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Qualitative Research

Exploratory research that gathers non-numerical data (opinions, feelings).

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Quantitative Research

Research that uses numerical data and statistical analysis.

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SOSTAC

A framework used in marketing to create and execute marketing plans. Stands for Situation, Objectives, Strategy, Tactics, Action, Control.

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Variety-Seeking Behavior

Consumer behavior where choices are varied when the perceived risk is low and the potential reward is high.

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Habitual Buying Behavior

Consumer behavior where choices are consistent due to a high perceived risk of loss or dissatisfaction.

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Low-Involvement Purchases

Purchasing behavior that don't have a great deal of thought or research put into them. The consumer is not that involved in the products they buy.

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High-Involvement Purchases

Purchases that require significant research and consideration because they are important or expensive to the customer.

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Involvement Continuum

A scale that represents the degree of importance or interest a consumer places on a product or purchase decision.

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Dual Process Decision Making

The idea that both logical reasoning and emotional factors influence every decision we make.

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Risk Reduction via Ratings

Using customer reviews or other feedback to reduce uncertainty about a purchase.

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Focus Group

An interview conducted with several participants simultaneously, focusing on a specific topic.

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Observation

A research method where researchers systematically watch and record behaviors in a natural setting.

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Sampling

The process of selecting a subset of a population to represent the whole.

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In-depth Interviews

Detailed, one-on-one conversations aimed at exploring a topic in depth.

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External Influences

External factors like culture, social class, and reference groups that shape consumer choices.

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Internal Influences

Psychological factors such as motivation, perception, learning, beliefs and attitudes that drive people’s behaviour

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Consumer behavior

The actions a person takes in purchasing and using goods and services.

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Culture

the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation

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Social Class

relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.

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Hedonic

Focused on pleasure and enjoyment; sensory or emotional gratification.

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Utilitarian

Focused on practical and functional benefits; problem-solving.

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Wants

Things we desire but aren't essential for survival.

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Attitude

An opinion or feeling about something, typically influencing behavior.

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7 P's of Marketing

Product, Price, Place, Promotion, People, Process, and Physical Evidence.

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Macro factors

Broad external influences affecting all market participants.

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Economic factors

Factors related to the state of the economy (e.g., inflation, interest rates).

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Personal factors

Individual characteristics that influence purchasing decisions.

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The Big Five

A model describing personality by openness, conscientiousness, extraversion, agreeableness, and neuroticism.

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Openness

Extent of imagination and insight.

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Conscientiousness

Being organized and dependable.

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Extraversion

Outgoing and energetic nature.

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Social Factors

Influences from culture, family, and groups affecting behavior.

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Study Notes

Consumer Behaviour Course Requirements

  • Efficient business skills are a must
  • Understanding the factors that affect consumer behaviour is crucial
  • Collecting and analyzing data is essential to understand consumer purchase decisions
  • Diagnosing decision stages, identifying key players, understanding decision criteria, and finding credible sources of information is important

Övergripande Beskrivning

  • Consumer behavior can be understood through qualitative methods, like interviews, observations and videography
  • Students are taught how to conduct a qualitative market research, from start to finish
  • Students will know the main influences on decisions
  • Participants learn to analyze and create advice for consumer purchases
  • Examples are used from individual and corporate sectors to demonstrate

Session 1 Introduction

  • Important to attend lectures, and be respectful
  • Check online course materials and recommended reading
  • Work effectively in groups and ask questions
  • Self care is necessary

Assessments and Exams

  • There will be 2 assessments and then an exam
  • 20% of the total grade is individual assessment
  • There will be a multiple-choice test on theory, including open and closed questions
  • The assessment will be theory on Sessions 1-6
  • Due date is 10/02/2025
  • The second assessment is the group assignment and is 20% of the total grade
  • Work in pairs as a marketing agency for a student product/service client
  • A 10-minute presentation is required on 17th March
  • The presentation should cover:
    • Intro products/services
    • Market research, including desk research and 5+ audience interviews.
    • Analysis of research, persona development and customer journey
    • Understanding of the audience (wants, needs, attitudes etc.)
    • Adapting the marketing mix explained
    • Two campaign ads in both video and billboard formats with approach justification
  • The exam is 60% of grade and covers class materials.

Consumer behavior

  • Consumer behaviour examines people's buying and spending habits and trends through data and research
  • Consumer behaviour answers questions about customer demographics:
    • Who are they, what they want/need, when and where they buy, and how they use products.
  • It is important to understand why people buy things and what influences them
  • It has connections to psychology
  • For Mercedes, understanding a aging demographic, changes car design to attract younger buyers
  • Snickers are advertised as snacks, more accepted than daily dessert
  • States that “you are not you when you're hungry”, implying it helps hunger, not a treat.

Why Consumer Behaviour is Important

  • Demographics: Determine the target audience's specifics, like age, gender, likes, and income
  • Competitors: Understand consumer perception of competitors, popular brands, and in-demand products to gain competitive insights
  • Brand: gauge consumer loyalty and business reputation
  • Products and services: Determine why consumers pick one product/service over another
  • Habits: analyze how much search and purchase frequency affect consumer habits
  • Influences: What are the cultural and social factors that affect behavior

Consumer Loyalty

  • Cost is most likely to influence airline purchases
  • Some feel brand loyalty to Samsung
  • SOSTAC: a framework for planning
    • Situation Analysis: involves analyzing the current market position, customers, competitors, and internal capabilities
    • Objectives - Setting clear, measurable goals for what an organizations aims to achieve
    • Strategy - Developing approaches to reaching objectives, including target market selection and positioning
    • Tactics - using specific methods
    • Action - Creating detailed plans that specify who does what, when and how.
    • Control - Establishing metrics and KPIs in order to track performance and make adjustments as needed.
  • Performing a situation analysis is key and tracking society's interests
  • Those focused on touchscreens thrived while BlackBerry’s keyboard focus didn't.

Four Types of Consumer Behaviour

  • Complex buying behaviour, variety seeking buying behaviour, dissonance reducing buying behaviour, habitual buying behaviour.
  • Variety seeking buying behaviour
    • Little thought into purchased decisions
    • This is brand switching
    • Low cost of switching between products and brands
    • Consumers switch on a whim
    • Goal of marketers is create to habitual buyers by maximizing retailers and providing advertising campaigns and coupons

Complex buying behaviour

  • Expensive product or service and many options available
  • Rare expense
  • Consumers spend a lot
  • Conduct own research and consult other as part of the process
  • Extensive knowledge is needed

Habitual buying behaviour

  • Consumers purchase the same brand
  • See little difference
  • Comes down to price
  • Marketers will use visual ads to build brand familiarity, as well as discounts that encourage buyers

Dissonance-reducing buying behaviour

  • Important purchases
  • Consumers struggle and have a limited amount of information
  • Can unsettle consumers.
  • Post-support campaigns
  • New tech users
  • Brand loyalty, encourage repeat purchase, and help customer retention.

Involvement continuum

  • Consumer interest in buying product
  • Low-involvement products will be low risk
  • Ranges from inertia through to high involvement
  • Celebrities or the Harley tattoo can dictate this

Buying Decision Behavior

  • Routine Response behavior: Low cost
  • Familiar products with little research
  • Extensive problem solving behavior: High
  • Unfamiliar product with a great deal of research
  • Limited problem solving: Lies in-between
  • Emotional purchases are feelings and desires rather than logical reasoning
  • Brand appeal or status
  • Rational purchases: Necessity, value and functionality

Right/Left Brain

  • Consumers can be concerned about the emotional impact of their purchasing decisions
  • Financial risk reduction: Offering a price guarantee
  • Performance risk reduction: Offering product demonstrations
  • Social risk reduction: Brands can offer products that are endorsed by social acceptable figure
  • Time risk reduction: Making a purchase easier

Different consumer contexts

  • Customer: Buys goods or services, not the end consumer
  • Consumer: Buys and us

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Consumer Behaviour PDF

Description

Quiz questions covering consumer behavior, marketing strategies, brand loyalty, and understanding consumer purchase decisions. Explores qualitative approaches, demographic shifts, and emotional factors.

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