Introduction to Consumer Behaviour

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Questions and Answers

What does the Pareto principle suggest about the distribution of consequences and causes?

80% of consequences come from 20% of causes. (correct)

20% of consequences come from 80% of causes.

All causes contribute equally to the consequences.

80% of causes come from 20% of consequences.

Which demographic dimension is NOT typically influential in strategic marketing decisions?

Geography

Gender

Personal Preferences (correct)

Social Class

Which of the following best defines psychographics in consumer segmentation?

The geographical location of consumers.

In-depth analysis of purchasing frequency.

Differences in consumers’ personalities, attitudes, values, and lifestyles. (correct)

The statistical distribution of consumer demographics.

How does relationship marketing primarily seek to engage customers?

By interacting with customers regularly and maintaining bonds. Signup and view all the answers

Which type of relationship attachment involves strong feelings developed through personal experiences with a product?

Self-concept attachment Signup and view all the answers

What is the term used for the psychological dependency on products or services?

Consumer addiction Signup and view all the answers

What is the practice of changing price tags on items to receive a lower price called?

Fraudulent abuse of exchange policies Signup and view all the answers

Which term describes the act of using primary research for a new research question?

Primary data collection Signup and view all the answers

Which practice involves marketing that aligns with environmental sustainability?

Green marketing Signup and view all the answers

What does the term 'anti-consumption' primarily refer to?

Destruction of property as a form of protest Signup and view all the answers

What is one reason consumers often purchase products?

For their cultural significance Signup and view all the answers

How has global consumer culture affected societal behavior?

It has united people through shared interests in brands. Signup and view all the answers

What technology is pivotal for the growth of consumer behavior online?

Ubiquitous networks Signup and view all the answers

Which trend signifies a shift in consumer expectations regarding products?

Demand for authenticity Signup and view all the answers

What is one of the ethical standards of conduct in marketing?

Disclosing substantial risks associated with a product Signup and view all the answers

Which of the following best describes the trend towards healthy and ethical living?

Emphasis on lifestyle choices reflecting personal values Signup and view all the answers

In what way has the web fundamentally transformed consumer behavior?

It enables 24/7 shopping and personalized experiences. Signup and view all the answers

What is one characteristic of the sharing economy?

Emphasis on collaboration and resource sharing Signup and view all the answers

What does consumer behaviour primarily involve?

The processes of selecting, purchasing, using, or disposing of items Signup and view all the answers

What is the primary benefit of understanding consumer behaviour for marketers?

To predict future consumer actions and tailor marketing strategies Signup and view all the answers

What is meant by market segmentation?

Identifying homogeneous groups and creating targeted strategies Signup and view all the answers

How can understanding consumer behaviour impact organisations?

It helps devise marketing strategies that resonate with specific consumer groups Signup and view all the answers

Consumer behaviour is described as a process involving which of the following stages?

Selection, purchase, usage, and disposal Signup and view all the answers

What is a key factor that influences consumer behaviour before the purchase occurs?

Social interactions and recommendations Signup and view all the answers

Which of the following best describes the significance of ethical issues in consumer behaviour?

They influence consumer perceptions and brand loyalty Signup and view all the answers

What aspect should marketers consider to effectively understand consumer behaviour?

Trends and buying habits as well as consumer needs Signup and view all the answers

Study Notes

An Introduction to Consumer Behaviour

Definitions: A process involving selection, purchase, usage, or disposal of products, services, ideas, or experiences to satisfy needs and desires.
Consumer behaviour encompasses pre-purchase, purchase, and post-purchase influences.

Consumers' Impact on Marketing Strategy

Key focus: Understanding consumer behaviour drives effective marketing strategies.
Marketers predict future trends by analyzing consumer data.

Segmenting Consumers

Market segmentation identifies groups of consumers with similarities for tailored marketing strategies.
The Pareto principle highlights that 80% of outcomes come from 20% of causes.
Important demographic factors include:
- Age, gender, family structure, lifestyle, social class, income, ethnicity, and geography.
Psychographics explore personality traits, attitudes, values, and lifestyle choices.

Relationship Marketing

Focuses on long-term interaction and maintaining customer bonds.
Database marketing tracks consumer habits to personalize offerings.
Various types of product relationships include self-concept attachment, nostalgic attachment, interdependence, and love.

Marketing's Impact on Consumers

Culture influences marketing strategies via popular culture and consumer-generated content.
Brands convey image and help form social bonds.
Global consumer culture connects individuals through shared brand and celebrity devotion.

Virtual Consumers

The internet enables 24/7 shopping, facilitating consumer-to-consumer interactions.
Emergence of digital natives and a horizontal revolution transform consumer engagement.
Advancements in machine-to-machine communication and AI enhance ad targeting and marketing strategies.

Consumer Trends

Key trends shaping marketing strategies:
- Sharing economy, authenticity, personalization, gender role blurring, diversity, social shopping, healthy living, simplification, and anonymity.

Marketing Ethics and Public Policy

Business ethics guide honest and ethical marketplace conduct.
Ethical standards include risk disclosure, avoiding false advertising, and transparency in costs.
Public policy aims to protect consumer welfare through various laws.

The Dark Side of Consumer Behaviour

Consumer addiction includes psychological dependencies on products/services like alcohol, smoking, and technology.
Compulsive consumption can lead to behaviours like gambling.
Illegal activities pertaining to shoplifting (shrinkage), fraudulent returns, and anti-consumption practices such as vandalism.

The Role of Consumer Research

Primary research involves collecting specific data for particular research questions.
Secondary research relies on existing data collected for different purposes, aiding in new research inquiries.

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Description

This quiz explores the fundamental concepts of consumer behaviour and its significance in marketing strategies. It covers market segmentation, the impact of demographics and psychographics, and the principles of relationship marketing. Test your understanding of how consumers influence purchasing decisions and how businesses adapt their strategies accordingly.