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explain why marketing managers should understand consumer behavior
an understanding of consumer behavior reduces marketing managers uncertainty when they are defining a target market and designing a marketing mix. ex: changing a product if needed.
analyze the components of the consumer decision making process
5 step process used by consumers when buying goods or services: 1. need recognition
2. info search 3. evaluation of alternatives 4. purchase 5. post purchase behavior (do not have to purchase to go through these steps)
explain the consumers post purchase evaluation process
consumer post purchase evaluation is influenced by pre purchase expectations, the pre purchase info search and the consumers general level of self-confidence
identify the types of consumer buying decisions and discuss the significance of consumer involvement
1. routine response behavior: less involvement (deodorant) 2. limited decision making: low levels of involvement ( shoes)
3. high involvement/ extensive decision making: high levels of involvement, high cost goods ( car/house)
all characterized by brand and loyalty
identify and understand the cultural factors that affect consumer buying decisions
- cultural factors, social factors, individual factors, psychological factors
identify and understand the social factors that affect consumers buying decisions
social influences: reference groups: affect individuals aspiration levels, opinion leaders: the first to try out of curiosity (social media), family members
explain why marketing managers should understand consumer behavior
an understanding of consumer behavior reduces marketing managers uncertainty when they are defining a target market and designing a marketing mix. ex: changing a product if needed.
analyze the components of the consumer decision making process
5 step process used by consumers when buying goods or services: 1. need recognition
2. info search 3. evaluation of alternatives 4. purchase 5. post purchase behavior (do not have to purchase to go through these steps)
explain the consumers post purchase evaluation process
consumer post purchase evaluation is influenced by pre purchase expectations, the pre purchase info search and the consumers general level of self-confidence
identify the types of consumer buying decisions and discuss the significance of consumer involvement
1. routine response behavior: less involvement (deodorant) 2. limited decision making: low levels of involvement ( shoes)
3. high involvement/ extensive decision making: high levels of involvement, high cost goods ( car/house)
all characterized by brand and loyalty
identify and understand the cultural factors that affect consumer buying decisions
- cultural factors, social factors, individual factors, psychological factors
identify and understand the social factors that affect consumers buying decisions
social influences: reference groups: affect individuals aspiration levels, opinion leaders: the first to try out of curiosity (social media), family members
Q1: Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the products they buy. An understanding of consumer behavior reduces marketing managers’ uncertainty when they are defining a target market and designing a marketing mix.
Q2: The consumer decision-making process consists of five steps, which are need recognition, information search, evaluations of alternatives, purchase and post-purchase behavior. These steps can be a guide for marketers to understand and communicate effectively to consumers. One note is that consumers do not always move in the exact order through the process; it can depend on the type of product, the buying stage of the consumer and even financial status.
Q3: Consumer postpurchase evaluation is influenced by prepurchase expectations, the prepurchase information search, and the consumer’s general level of self-confidence. Cognitive dissonance is the inner tension that a consumer experiences after recognizing a purchased product’s disadvantages. When a purchase creates cognitive dissonance, consumers tend to react by seeking positive reinforcement for the purchase decision, avoiding negative information about the purchase decision, or revoking the purchase decision by returning the product.
Q4: Consumer decision making falls into three broad categories. First, consumers exhibit routine response behavior for frequently purchased, low-cost items that require very little decision effort; routine response behavior is typically characterized by brand loyalty. Second, consumers engage in limited decision making for occasional purchases or for unfamiliar brands in familiar product categories. Third, consumers practice extensive decision making when making unfamiliar, expensive, or infrequent purchases. High-involvement decisions usually include an extensive information search and a thorough evaluation of alternatives. In contrast, low-involvement decisions are characterized by brand loyalty and a lack of personal identification with the product. The main factors affecting the level of consumer involvement are previous experience, interest, perceived risk of negative consequences (financial, social, and psychological), situation, and social visibility .
