1. Why marketing managers should understand consumer behaviour
Why marketing managers should understand consumer behaviour. Marketers use an understanding of consumer behaviour in their efforts to satisfy the needs and wants of customers and in their efforts to communicate with customers.
True
False 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

2. Analyze the components of the consumer decision-making process
Analyze the components of the consumer decision-making process. The consumers' decision process begins with Need Recognition and ends with a purchase.
True
False 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

3. Consumer's post-purchase evaluation process
Consumer's post-purchase evaluation process. Cognitive dissonance is an internal tension that the consumer experiences due to doubts about a purchase decision.
True
False 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

4. Types of consumer buying decisions and the significance of consumer involvement. Consumers face three basic categories of decision making: (1) routine response behaviour; (2) limited decision making, and (3) existential decision making.
True
False 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

5. Cultural factors that affect consumer buying decisions
Cultural factors that affect consumer buying decisions. With respect to consumer behaviour, marketers recognize culture as one of the most obvious influences on consumer choices.
True
False 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

6. Individual factors that affect consumer buying decisions
Individual factors that affect consumer buying decisions. There are many personal characteristics which influence buying behaviour such as personality, self-concept, lifestyles, gender and others. Marketers can rely on these characteristics to understand consumer behaviour because they are generally stable and if they do change, they change gradually.
True
False 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

7. Psychological factors that affect consumer buying decisions
Psychological factors that affect consumer buying decisions. Perception is an important influence on consumer buying decisions that marketers must understand in order to design effective promotional strategies. In particular marketers need to be aware that perception can be affected by the concepts of: selective exposure, selective extortion, and selective retention.
True
False 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

8. Consumer Decision Making
chapter 4

9. Learning Objectives
1. Explain why marketing managers should understand consumer behaviour.
2. Analyze the components of the consumer decision-making process.
3. Explain the consumer’s postpurchase evaluation process.

10. Learning Objectives (continued)
4. Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
5. Identify and understand the cultural factors that affect consumer buying decisions.

11. Learning Objectives (continued)
6. Identify and understand the social factors that affect consumer buying decisions.
7. Identify and understand the individual factors that affect consumer buying decisions.
8. Identify and understand the psychological factors that affect consumer buying decisions.

12. Consumer Behaviour
Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.

13. Marketers need to pay very close attention to the study of consumer behaviour because:
the internet allows consumers to communicate with each other better than ever.
consumers' product and service preferences are constantly changing.
there are more consumer groups today than ever before.
government legislation requires consumer studies prior to regulatory approvals.
their competitors are continually launching new products. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

14. Consumer Decision-Making Process 5 Steps
Postpurchase
behaviour
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social, Individual and
Psychological factors affect all steps

15. Internal Tension Disorder. Internal Purchase Worry.
Marketers recognize that consumers have certain expectations when they make product purchases. Consumers may experience an internal tension after they make a purchase because they have doubts about their decision. This phenomenon is known as:
Internal Tension Disorder.
Internal Purchase Worry.
Post Purchase Depression.
Cognitive Dissonance.
Post Product Depression. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

16. Information Search
External
Internal

17. Evaluation of Alternatives
Evoked Set
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!

18. Purchase To buy or not to buy...
Identifies which attributes are most important in influencing a consumer’s choice
Marketing

19. Post-purchase Behaviour
Consumers expect certain outcomes from the purchase
Satisfied or dissatisfied with the purchase

20. Cognitive Dissonance Marketing Help reduce through:
Effective Communication
Follow-up
Guarantees Warranties
Did I make a good decision?
Did I buy the right product?
Did I get a good value?

21. Types of Consumer Buying Decisions
Routine
Response
Behaviour
Limited
Decision
Making
Extensive
Decision
Making

22. perceived risk of negative consequences.
All of the following are factors that determine the level of consumer involvement in a purchase decision EXCEPT:
perceived risk of negative consequences.
situation.
social visibility.
previous experience.
amount of advertising. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

23. Continuum of Consumer Buying Decisions
Exhibit 4.2

24. Routine Response Behaviour
Little involvement in selection process
Frequently purchased low cost goods
May stick with one brand
Buy first/evaluate later
Quick decision

25. Limited Decision Making
Low levels of involvement (emotional ads work well)
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide

26. Extensive Decision Making
High levels of involvement
High cost goods (image ads help mold buyers)
Evaluation of many brands
Long time to decide
May experience cognitive dissonance

27. Level of Involvement Factors determining level of Involvement
Previous Experience
Interest
Factors determining level of Involvement
Perceived Risk of Negative Consequences
Situation
Social Visibility

28. Marketing Implications of Involvement
High-involvement purchases require:
Extensive and informative promotion
to target market
Low-involvement purchases require:
In-store promotion, eye-catching package design, and good displays

29. Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho- logical Factors
Cultural Factors
BUY –
DON’T BUY
CONSUMER DECISION-
MAKING
PROCESS

30. Global Language Blunders
Chevrolet’s “Nova” translated to “No Go”
Coors “Turn it Loose” became “Suffer from Diarrhea”
Toyota’s MR2 sounded like a swearword in French
Coca-Cola in Chinese means “bite the wax tadpole”

31. Multicultural Canada Visible-minority groups
Chinese (23%), Blacks (19%), South Asians (Pakistani and Indian) (19%), Arabs and West Asians (13%), Filipinos and Other Pacific Islanders (8%), Latin Americans (6%), Southeast Asians (5%), and others (7%).
Ethnic Diversity

32. Social Class
A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioural norms.

33. Social Class
Exhibit 4.6

34. Social Class Measurements
Occupation
Income
Social Class
Measurements
Education
Wealth
Other Variables

35. Social Influences on Buying Decisions
Reference Groups
Opinion Leaders
Family Members
Courtesy of the Nelson RF Collection

36. Relationships among Purchasers and Consumers in the Family
TV Ad
Relationships among Purchasers and Consumers in the Family
Exhibit 4.8

37. Individual Influences
Gender
Age Family Life Cycle
Personality
Self-Concept Lifestyle

38. Family Life Cycle
An orderly series of stages through which consumers’ attitudes and behavioural tendencies evolve through maturity, experience, and changing income and status.

39. Lifestyle
A mode of living as identified by a person’s activities, interests, and opinions.
Psychographics is the analytical technique used to examine consumer lifestyles and to categorize consumers
Health Canada
Ottawa’s Youthography Report

40. Psychological Influences on Buying Decisions
Perception
Motivation
Learning
Beliefs & Attitudes

41. Perception
Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

42. Perception
Selective
Exposure
Selective
Distortion
Selective
Retention

43. Consumer notices certain stimuli
Perception
Selective Exposure
Consumer notices certain stimuli
and ignores others
Selective Distortion
Consumer changes or distorts information that conflicts with feelings or beliefs
Selective Retention
Consumer remembers only that information that supports personal beliefs

44. A Consumer’s Selective Exposure
Exposure to over 250 advertisement messages per day
Notices only 11 to 20 ads

45. Marketing Implications of Perception
Important attributes (price or quality)
Brand names
Quality and reliability
Threshold level of perception
Product or repositioning changes

46. Motivation
By studying motivation, marketers can analyze the major forces influencing consumers to buy or not buy products.
Motive
A driving force that causes a person to take action to satisfy specific needs.

47. Motivation Exhibit 4.10 Self- Actualization Esteem Social Safety
Physiological
Safety
Social
Esteem
Self- Actualization

48. Changing attitudes Changing beliefs about the brand’s attributes
Changing the relative importance of these beliefs
Adding new beliefs
The Canadian hearing Society

49. Opinion leadership is one type of important social influence on consumer buying behaviour. Marketers who want to try and manage the impact of opinion leadership need to be aware that:
opinion leaders are most influential for established products.
opinion leaders need to be different from the group whose opinion they are leading.
opinion leaders are usually very wealthy.
teenagers are fickle which makes them unsuitable as opinion leaders.
locating opinion leaders can be a challenge. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

50. marital status, income, and age. religion, culture, and language.
Consumer lifestyles are of particular interest to marketers for understanding consumer behaviour. Psychographics is an analytical technique that is used to examine consumer lifestyles. Marketers undertake lifestyle analysis by examining which of the following:
marital status, income, and age.
religion, culture, and language.
education, income, and occupation.
vacations, club membership, and political affiliation.
activities, interests, and opinions. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

51. beliefs. attitudes. perception. learning. motivation.
There are a number of important psychological influences on consumer buying decisions including: beliefs and attitudes, perception, motivation, and learning. Marketers need to be keenly aware of all of these influences. The distribution of product samples in consumer mail boxes would most likely be designed to affect which of the following psychological influences:
beliefs.
attitudes.
perception.
learning.
motivation. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50