Analyzing Consumer Markets

1. TOP 10 Learning Questions for Chapter 6: Analyzing Consumer Markets Grace Ann Sumera 03 September 2010

2. 1. ____ factors exert the broadest and deepest influence on consumer behavior. Economic Personal Cultural Social Demographic 2

3. 1. Concept A consumer’s buying behaviour is influenced by cultural, social, and personal factors. Cultural factors exert the broadest and deepest influence. Culture is the fundamental determinant of a person’s wants and behaviour. 3

4. 1. ____ factors exert the broadest and deepest influence on consumer behavior. Economic Personal Cultural Social Demographic 4

5. 2. ___ is a key psychological process that has both direction and intensity. Motivation Perception Learning Memory Sensation 5

6. 2. Concept 4 key psychological processes – motivation, perception, learning, & memory – fundamentally influence consumer responses. Motivation has both direction – we select one goal over another – & intensity – the vigor with which we pursue the goal. 6

7. 2. ___ is a key psychological process that has both direction and intensity. Motivation Perception Learning Memory Sensation 7

8. 3. The following are major information sources to which consumers turn to EXCEPT Experiential Commercial Public External Personal 8

9. 3. Concept Major information sources to which consumers will turn fall into 4 groups: Personal Commercial Public Experiential 9

10. 3. The following are major information sources to which consumers turn to EXCEPT Experiential Commercial Public External Personal 10

11. 4. Buyer’s decisions are influenced by personal characteristics EXCEPT Education Age & Stage in the Life Cycle Occupation & Economic Circumstances Personality Lifestyle 11

12. 4. Concept A Buyer’s decisions are also influenced by personal characteristics/factors. These include the buyer’s age & stage in the life cycle; occupation & economic circumstances; personality & self-concept; and lifestyle & values. 12

13. 13 4. Buyer’s decisions are influenced by personal characteristics EXCEPT Education Age & Stage in the Life Cycle Occupation & Economic Circumstances Personality Lifestyle

14. 5. Which of the following is true? Groups having either face-to-face or indirect influence to consumer behavior are called membership groups. People are influenced by groups to which they do not belong. Reference groups are groups having direct influence on consumer behavior. Dissociative groups do not influence consumer behavior. Friends are considered secondary groups while family is a primary group. 14

15. 5. Concept Social factors such as reference groups affect consumer behaviour. Reference groups have either direct (face-to-face) or indirect influence. Groups having direct influence are called membership groups. Primary groups are groups with whom a person interacts fairly continuously and informally, such as family & friends. People are also influenced by groups to which they do not belong, such as aspirational & dissociative groups. 15

16. 5. Which of the following statements is true? 16 Groups having either face-to-face or indirect influence to consumer behavior are called membership groups. People are influenced by groups to which they do not belong. Reference groups are groups having direct influence on consumer behavior. Dissociative groups do not influence consumer behavior. Friends are considered secondary groups while family is a primary group.

17. 6. Which of the following statements is false? The buying decision process is a five-stage model. The model starts with problem recognition & ends with the purchase decision. The buying process starts long before the actual purchase. Consumers don’t always pass through all 5 stages in buying a product. The attitude of others & unanticipated situations may intervene with the purchase decision. 17

18. 6. Concept 18 Consumer Buying Process

19. 6. Which of the following statements is false? 19 The buying decision process is a five-stage model. The model starts with problem recognition & ends with the purchase decision. The buying process starts long before the actual purchase. Consumers don’t always pass through all 5 stages in buying a product. The attitude of others & unanticipated situations may intervene with the purchase decision.

20. 7. MTV suggests to having a brand personality of Competence Excitement Ruggedness Sincerity Sophistication 20

21. 7. Concept 21 Brand Personality is the specific mix of human traits that we can attribute to a particular brand.

22. 7. MTV suggests to having a brand personality of 22 Competence Excitement Ruggedness Sincerity Sophistication

23. 8. Highly Price-sensitive people deciding to purchase the cheapest brand is an example of this purchase strategy Conjunctive heuristic Elimination-by-aspects heuristic Lexicographic heuristic Availability heuristic Representative heuristic 23

24. 8. Concept Heuristics are purchase strategies or rules of thumb in the decision process. Conjunctive heuristic – consumer chooses the 1st alternative that meets the minimum standard for all attributes. Lexicographic heuristic – consumer chooses the best brand on the basis of its perceived most important attribute. Elimination-by-aspects heuristic – consumer compares brands & eliminates brands that do not meet minimum acceptable cut-offs. 24

25. 8. Highly Price-sensitive people deciding to purchase the cheapest brand is an example of Conjunctive heuristic Elimination-by-aspects heuristic Lexicographic heuristic Availability heuristic Representative heuristic 25

26. 9. A Filipina who postponed her trip to HK was influenced by this type of risk Psychological Risk Physical Risk Financial Risk Social Risk All of the above 26

27. 9. Concept A consumer’s decision to modify, postpone, or avoid a purchase decision is heavily influenced by perceived risk. Functional risk Physical risk Financial risk Social risk Psychological risk Time risk 27

28. 9. A Filipina who postponed her trip to HK was influenced by this type of risk Psychological Risk Physical Risk Financial Risk Social Risk All of the above 28

29. 10. Marketers who learn about the buying process for their service by conducting surveys on recent diners in their restaurant display an example of this customer profiling method Prospective Method Prescriptive Method Retrospective Method Introspective Method Scientific Method 29

30. 10. Concept Marketers learn about the stages in the buying process for their product through: Introspective method (asking themselves how they would act) Retrospective method (asking customers to recall the events leading to their purchase) Prospective method (asking customers who plan to buy their product) Prescriptive method (asking customers the ideal way to buy the product) 30

31. 10. Marketers who learn about the buying process for their service by conducting surveys on recent diners in their restaurant display an example of this customer profiling method Prospective Method Prescriptive Method Retrospective Method Introspective Method Scientific Method 31

32. TOP 10 Learning Questions for Chapter 6: Analyzing Consumer Markets Grace Ann Sumera 03 September 2010