Consumer Behavior Exam 1|40
Questions and Answers A+ Rated
What is CB? - -The process involved in selecting, purchasing, using, and
disposing of goods, services, ideas or experiences to satisfy needs and
desires.
- Set of value-seeking activities that take place as people go about
addressing realized needs.
- What disciplines make up CB? - -Economics, Psychology, Marketing,
Sociology, and Anthropology.
- Why Study CB? - -Businesses need to understand consumers. CB shapes
society. Satisfy consumer needs while meeting organizational goals.
- What are the internal and external influences on CB? - -Internal & External
- ● Internal Influences - -things that go inside of the mind & heart of the
consumer. Learning, perception, info processing, memory, motivations &
involvement, personality, values & lifestyles, attitudes
- External Influences - -social & cultural aspects of life as a consumer.
Reference group, family, social class, cultures & subcultures, retail
atmospherics, time & timing
- What exactly is "value" and what are the two types of "value"? - -Value is
a personal assessment of the net worth obtained from an activity. Value is
what customers ultimately pursue because valuable actions address
motivations that manifest themselves in needs and desires.
- ● Utilitarian Value: - -value derived from a product that helps the
consumer with some task. A rational explanation can usually be given when
somebody explains why something was purchased. Ex - buying bleach to
clean clothes, clean clothes provide value.
- ● Hedonic Value: - -value derived from the immediate gratification that
comes from some activity. The value is provided entirely by the actual
experience and emotions associated with them. Hedonic value is very
emotional and subjective in nature.
- The "Total Value Concept" - -Business practice wherein companies operate
w/ the understanding that products provide value in multiple ways. Ex - A
Ferrari offers value in many ways. Transportation, service plan, pride, etc.
, - What is the "customer lifetime value" concept? - -Approx worth of a
customer to a company in economic terms; overall profitability of an
individual consumer.
CLV = npv(sales - costs) + npv(equity)
Npv = net present value
Marketers can maximize the value they receive from exchange by
concentrating their marketing efforts on consumers with high CLVs.
- Essay: What is the difference between System 1 thinking and System 2
thinking? Explain when and how we use each of these modes of thinking - -
a. System 1(automatic) thinking is more instinctive and emotions. It is fast,
unconscious, and requires little energy or attention. This method of thinking
is used in everyday decisions, such as which seat to take in a waiting room
or which pasta sauce to buy. It is used for making quick decisions that are
based on very little information.
b. System 2 (reflective) thinking is slower and more logical. These are
effortful decisions that require attention, rational, and thought-out
responses. Deciding which college to go to or which house to buy are
examples. These are decisions you might have a gut-feeling about, but
would still want to back it up with supplemental research.
- Essay: What is "Value" and why is it important for studying consumer
behavior? - -Value is a personal assessment of the net worth obtained from
an activity. Value is the heart of experiencing and understanding consumer
behavior. Value is what consumers ultimately pursue because valuable
actions address motivations that manifest themselves in needs and desires.
Value captures how much gratification a consumer receives from
consumption. Value is important for studying consumer behavior, because
consumer behavior shapes society, businesses need to understand their
consumers and they need to satisfy their consumers needs. LOOK AT VALUE
FRAMEWORK
- Essay: Name and give one example of at least five internal influences and
five external influences on consumer decision making. - -Internal Influences
1. Learning (you learn that smoking is bad in school, so you do not buy
cigarettes)
2. Perception
3. Information processing (opt in vs opt out?)
4. Memory(past experiences, you had bad coffee at starbucks, so you do not
buy there again)
5. Motivation and involvement
6. Personality (buy a pink, sparkly planner, because you like pink and sparkly
things)
7. Values & Lifestyles (Buy insurance because you are now a father)
8. Attitudes (Buy things when you're in a good mood)
Questions and Answers A+ Rated
What is CB? - -The process involved in selecting, purchasing, using, and
disposing of goods, services, ideas or experiences to satisfy needs and
desires.
- Set of value-seeking activities that take place as people go about
addressing realized needs.
- What disciplines make up CB? - -Economics, Psychology, Marketing,
Sociology, and Anthropology.
- Why Study CB? - -Businesses need to understand consumers. CB shapes
society. Satisfy consumer needs while meeting organizational goals.
- What are the internal and external influences on CB? - -Internal & External
- ● Internal Influences - -things that go inside of the mind & heart of the
consumer. Learning, perception, info processing, memory, motivations &
involvement, personality, values & lifestyles, attitudes
- External Influences - -social & cultural aspects of life as a consumer.
Reference group, family, social class, cultures & subcultures, retail
atmospherics, time & timing
- What exactly is "value" and what are the two types of "value"? - -Value is
a personal assessment of the net worth obtained from an activity. Value is
what customers ultimately pursue because valuable actions address
motivations that manifest themselves in needs and desires.
- ● Utilitarian Value: - -value derived from a product that helps the
consumer with some task. A rational explanation can usually be given when
somebody explains why something was purchased. Ex - buying bleach to
clean clothes, clean clothes provide value.
- ● Hedonic Value: - -value derived from the immediate gratification that
comes from some activity. The value is provided entirely by the actual
experience and emotions associated with them. Hedonic value is very
emotional and subjective in nature.
- The "Total Value Concept" - -Business practice wherein companies operate
w/ the understanding that products provide value in multiple ways. Ex - A
Ferrari offers value in many ways. Transportation, service plan, pride, etc.
, - What is the "customer lifetime value" concept? - -Approx worth of a
customer to a company in economic terms; overall profitability of an
individual consumer.
CLV = npv(sales - costs) + npv(equity)
Npv = net present value
Marketers can maximize the value they receive from exchange by
concentrating their marketing efforts on consumers with high CLVs.
- Essay: What is the difference between System 1 thinking and System 2
thinking? Explain when and how we use each of these modes of thinking - -
a. System 1(automatic) thinking is more instinctive and emotions. It is fast,
unconscious, and requires little energy or attention. This method of thinking
is used in everyday decisions, such as which seat to take in a waiting room
or which pasta sauce to buy. It is used for making quick decisions that are
based on very little information.
b. System 2 (reflective) thinking is slower and more logical. These are
effortful decisions that require attention, rational, and thought-out
responses. Deciding which college to go to or which house to buy are
examples. These are decisions you might have a gut-feeling about, but
would still want to back it up with supplemental research.
- Essay: What is "Value" and why is it important for studying consumer
behavior? - -Value is a personal assessment of the net worth obtained from
an activity. Value is the heart of experiencing and understanding consumer
behavior. Value is what consumers ultimately pursue because valuable
actions address motivations that manifest themselves in needs and desires.
Value captures how much gratification a consumer receives from
consumption. Value is important for studying consumer behavior, because
consumer behavior shapes society, businesses need to understand their
consumers and they need to satisfy their consumers needs. LOOK AT VALUE
FRAMEWORK
- Essay: Name and give one example of at least five internal influences and
five external influences on consumer decision making. - -Internal Influences
1. Learning (you learn that smoking is bad in school, so you do not buy
cigarettes)
2. Perception
3. Information processing (opt in vs opt out?)
4. Memory(past experiences, you had bad coffee at starbucks, so you do not
buy there again)
5. Motivation and involvement
6. Personality (buy a pink, sparkly planner, because you like pink and sparkly
things)
7. Values & Lifestyles (Buy insurance because you are now a father)
8. Attitudes (Buy things when you're in a good mood)
