04/5 Buyer Behaviour (2hr+15min)

SECTION A: 30%
Definition/ Short answer Questions (30 marks, 10 questions, 3 marks each)
Answer ALL 10 questions

SECTION B: 10%
MCQ QUESTIONS (10marks, 10 questions, 1 mark each)

SECTION C: 10%
Case Study (10 marks)
2 questions and a question may have several parts.
You need to answer ONLY 1 question.

1. Consumer behaviour and strategy

Customer value: difference between benefit derived from a total product and cost acquiring all those benefit (total
benefit total cost)
Market segmentation: identify consumer group with unique needs and purchase process
Positioning: perceived by a consumer how a brand/product differs
Consumer behaviour audit Market segmentation
External influence Product positioning
Internal influence Marketing mix
Decision-process influence
Consumerism: activities from government, business, organisation to proceed from unethical rights.
Modernism: apply scientific principles
Post modernism: view and philosophies that scientific may not better
Knowledge: reality constructed by individual

2. Situational influences
situation: set of functions other than consumers and stimulus to which the consumer right needs
situation influences: influence on purchase direction of situational factors
Consumption process occurs
1. receive information
2. purchase occurs
3. usage/ consumption appropriate
4. product purchasing
1) Physical surroundings Geographical, location, decoration
2) Social surroundings People present characteristic
3) Temporal surroundings Urgency, seasonal, time constraints
4) Task definition Gift, personal
5) Antecedent states Momentary mood: hungry, sad, anxiety, hostile

3. Problem recognition
Habitual decision making Limited decision making Extended decision making
Info search Limited internal Internal, limited external Internal, external
Alternative evaluation - Simple. Few attribute Many complex attribute
Post purchase activities No dissonance (regret) No dissonance Dissonance
Very limited evaluation Limited evaluation Complex evaluation
Habitual
brand loyal decisions: high involvement in decision making
repeat purchase decisions: indifferent, value, satisfaction trust
Actual: perceived condition
Desired: Would like to be
Active: aware problems, brand superior solution
Inactive: not aware problems, convinced there is a problem
Instrumental performance: Functional performance of product
Symbolic performance: expressive, aesthetic
Measuring problem recognition
activity analysis: product performance during usage
product analysis: operational issues
problem analysis: start with list of problem, associate with problem
human factor research: human capabilities, vision, strategy
emotional research: discover role played by emotion
Generic problem recognition: early stage in product lifestyle
Discrepancy within brands of product category:
firms have high market penetration
external search after problem recognition limited
industry wide cooperation effect made
discrepancy within one hand: to gain or maintain share
activate problem recognition: influencing desired state/perception of existing state

4. information search
Internal search: use of info from memory
External search: shift to external stimuli relevant to solving the problem
friends, neighbour, relative opinion, attribute, behaviour
Reviews by other consumers or consumer groups
Professional, books, article, brochures, direct experience through trail and inspection
Market generated information
Consumer decision requires information in
Appropriate evaluations criteria for the solution of the problem
The existence of various alternate solution
Performance level of characteristic of each alternative solution compared
Evaluation criteria appropriate alternative: (decision of purchasing when sold out)
Evoke: Consider
Inept: Dislike
Inert unaware: indifferent
Target market decision making process
Evoke: maintain (brand search), captive (limited search), preference (extensive search)
Not evoke: Disrupt, intercept, acceptance
5. outlet selection and product selection
Attributes involved in retail outlet selection:
retail format
outlet image
store in a brand
Retail advertising
Price advertising
Spillover: Bought something not intended in same shop.
Shopping orientation: customer have individual shopping style
Perceived risk: financial or social risk involved in purchase.
Nature of unplanned purchase (until the end, before POP)
Unplan purchase
Reminded purchase
Impulse purchase
Price reduction and promotional deal
Stockpiling
Cheaper choice
Superior value
new consumer

6. post purchase, customer satisfaction, customer loyalty

What cause dissonance (regret on purchase)
commit more
how important is decision
difficulty on alternative
educated
individual anxiety
Reduce dissonance by
Increase desirability of Brand purchase
Decrease desirability of alternative
Decrease importance of purchase decision
Disposal
Share
Exchange
Donate
Recycle
Throw away
Lead to Positive, negative, neutral decision
Evaluation and customer satisfaction
Perceived performance Below desired performance Above desired performance
Better Satisfaction Satisfaction
same indifference Satisfaction
Worst Dissatisfaction Dissatisfaction
Why people purchase
Instrumental: function or physical performance of product
Symbolic: image, luxury
Affective: mood
Nature of repeat purchase behavior 6 point (brand loyalty)
1) Biased
2) Behavior response
3) Express over time: EXPERIENCE A FEW TIMES
4) Decision making unit: E.G. WATERPROOF
5) Respect to one or more alternative brand: OTHER BRAND SUCK
6) Psychological process: THINK ITS BETTER
Relationship marketing 5 ELEMENTS loyalty
1) Developing a course service to build customer relationship
2) Customize a relationship to individuals
3) Modify the core service with good or extra service
4) Price and manner that encourage loyalty
5) Marketing to employee to perform well to customer

7. perception (information processing)

Nature of perception 4 points
1) Exposure: absolute threshold or selective exposure, lowest level of simulation to pick up
2) Attention
3) Interpretation
4) Memory
Stimulus factors
Physical characteristic of stimulus e.g. poster big or small, color, isolated, format, contrast.
Adaption level theory: theory people adjust to
Differential threshold: consumer ability to notice changes in level of simulation
Just noticeable difference (JND): changes to product
Weblers law: larger the stimulus the larger the JND needs to be
Compress message: increase attention e.g. video
Information overload
Individual factors: how personal characteristic will perceive or process information
Perceptual vigilance: related to individual will increase awareness
Interpretation 3 characteristic
Individual
Stimulus
Situational
Lead to cognitive (logical/ learning/ experience) and affective (emotion/ feeling) interpretation
Semiotics: study of sign, symbol, picture, music

8. learning and memory

learning/Conditioning 5 type
1) Classical conditioning: e.g. dog bell for food
2) Operant conditioning: e.g. reward or discouraging (shaping to encourage final response)
3) Cognitive learning: e.g. solve problem (iconic rote learning, 2 or more concept join together)
4) Vicarious leaning: e.g copy and paste (consumer socialization)
5) Reasoning (reconstruct and combine existing and new information to form new association and concept)
Stimulus generalization (brand extension): Perception that all in a brand is good based on a product
Stimulus discrimination (brand distribution): respond similar towards all varieties of a product e.g. detergent
Short term memory: working memory, portion of total memory
Long term memory: unlimited permanent storage of learned item: concept, decision, rule, emotional
Elaborative activities: involve in short term memory (e.g. experience, belief)
Maintenance rehearsal: repeat short term memory to long term or solve problem (e.g. repeat selling point)
Schematic memory: pattern and association to a concept (link meaning to concept)
Brand leverages 4 point
Complement e.g. shampoo, conditioner
Substitute e.g. replacement, phone model
Transfer
Image
9. motivation, personality and emotion
Maslows hierarchy of needs (PSBES) fulfil lowest level to highest

Discovering purchase motives

Manifest motive: Admit freely and know
Latent motive: reluctant to admit or unknown
Projective technique: relate to something
association: link
completion: e.g. this is ______ .
construction: e.g. interpreted picture
Motivational conflict
approach-approach: double benefit e.g. Buy without installment
approach-avoid: positive and negative e.g. fast food, gain weight
avoidance-avoidance: 2 undesirable alternatives e.g. repair/buy old phone
Personality 3
Single trait theories
Multi trait theories (several traits combine to form personality)
5 factor model of personalities (5 basic traits) e.g. extrovert, agreeable, open to experience.
5 Brand personality
Sincere: honest, cheerful, down to earth
Excitement: daring, up to date, imaginative
Competence: reliability, intelligent, successful
Sophistication: upper-class, charming
Ruggedness: outdoor, tough

10. attitude and attitude change

Try component attitude model 3 components
cognitive: way of thinking
affective: emotion base
behavior: action
Component consistency: change in one of the 3 components affect the rest
Social marketing: market design to reduce social irresponsible behavior
Appeals
Fear, Humor, comparative, emotional, value expressive (give personality), utilitarian (multi function) appeal.
Message structure
One sided message: positive message
Two-sided message: positive and negative message
11. demographic and lifestyle
Cohort effect: Age group may not behave same way due to generation
Gender
Ascribed role: role base on an attribute on individual with little or no control.
Achievement role: a role acquired through performance where individual have some control.
Psychographic: Activity, interest, opinion (AIO)
AIO inventory: instrument to measure persons lifestyle by focusing on AIO.
Attitude, value, demographic, media pattern, usage rate
VALS

12. household structure and consumer behaviour

Household decision making 5 point
information gather
influencer
decision maker
purchaser
consumer
Syncretic decision: Husband and wife make decision together
Autonomic: either make decision
Role specialization
Conflict resolution 6 point
1. Bargaining (compromise)
2. Impression management (misrepresent fact to win)
3. Use of authority (claim superior power)
4. Reasoning
5. Play of emotion
6. Addition information (research, third party)
Consumer socialization: copy someone to be like him
13. group influence and communication
Group influences: peer pressure influence
Reference group: guideline for behavior
Dissociative reference group: dont want to be identified or associated
Aspirational reference group: do not belong but tried to behave
Conformity: tenancy to be like others and be accepted
Norms: expected behavior
Informational influence: information and opinion
Normative influence: choose to fulfill group expectation for reward of avoid punishment
Identification influence (value expressive influence): group as guide for value, self-image, attitude.

Determinants of the type of reference group influence 3 point

Informational: obtain information try change (complex, conspicuousness, low distinction)
Normative: to fit in others opinion change action (conspicuousness, low distinction)
Identification: belief to identify self (low distinction)
Consumption subcultures: community self-select on a basis on a shared commitment
Consumption ritual: set of inter related behavior that is repeated, e.g. Buy beer with football
Opinion leadership: experience individual, filter, interpretate, provide information for group
Market mavens: an individual that have information of many king of product

14. social stratification

Social stratification: segment people to group/class based on social status
Social economic factor> social standing> unique behavior
Concept of social class
bounded: limited to separate social class
ordered: lowest of highest, ranking system
mutually exclusive: One individual belongs to one class, movement is possible
exhaustive: every member the social system must fit into a class
influential: there but be behavior difference between class
Status crystallization: Degree of consistence of status dimension, e.g. same class as parents

15. culture and 3 cross cultural varieties

The concept of culture: a complex concept that include knowledge. image, custom, law, capability, habit of
members of a society.
Marketing affect by: language, values, demographic and non-verbal communication
Cultural values 3 points
Other oriented values: Society values affect orientation e.g. Malaysia no pork
Environment oriented values: e.g. relationship to economic/ physical/ technical environment
Self-oriented values: object to live individual find desirable e.g. credit card
Etiquettes: Generally accepted ways of behaving in a particular social situation