Buyer Behaviour MKTG 1052

Examination Review

1

Coverage:

• Topics can be set from Chapters 1-16

• Chapters 1-2 Intro, 3-7 decision making, 8-11 internal influences and 12- 16 external

• Situational Influences (chap 2) gives good grounding on the ‘contexts’ of BB applications

• When reading the chapters make sure you look out for ‘marketing applications’ usually discussed at the end of each chapter

• The book is your main source- PWPT lecture slides are NOT enough!

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BB Chapter Coverage for Exam

Revision

NOTE: these guidelines are provided for your revision of the key

issues. They DO NOT constitute what must be specifically read from

the text nor does it guarantee that the question will be tested from the

specific page references. You need to ensure that you undertake a

complete and balanced revision of the course by reading the assigned

chapters, lecture notes, practice questions and exam revision guides.

Chapter One

• Read whole chapter to give an overview

of all aspects of BB

Chapter Two

• Short chapter – skim read whole

• Know the „types of situations‟

– Communication, purchase, usage and

disposal

• Situation classification (pp 41) – read on

all 5

• Marketing strategy applications (read from

pp 51 onwards)

Chapter Three: Problem

Recognition

• Very important: types of consumer

decisions (66-70)

• Problem recognition

– Process (70-75)

– Marketing strategy and PR (76-81)

Chapter Four: Information Search

• 93-97: nature of IS; note especially evoked set on pp 97

• Sources of information

• Search on internet and marketing applications

• Pp 102 onwards

• The amount of external search undertaken

• Costs versus benefits of external search: learn the four factors affecting search on page 105 Figure 4.9

• Marketing applications (pp111 onwards)

Chapter Five: Alternative

Evaluation

• Technical chapter: takes more time to understand

• Evaluative criteria (pp127-129)

• Perceptual mapping (129)

• Surrogate indicators (134)

• Role of EC in marketing strategy (136)

• It is unlikely that decision rules will be covered but you should read Table 5.3 on pp 139 as a summary

• Marketing applications of decision rules (pp

Chapter Six: outlet selection and

purchase

• Skim read the chapter to mainly note the differences between

– How consumers choose retail outlets

– Store image and retailer attribute

– Purchasing online

• Shopping orientation ((165-167)

• Perceived risk (pp 167)

• Nature of unplanned purchases – what factors affect this

Chapter Seven: Post Purchase

• Figure 7.1

• Post purchase dissonance

• Product usage and Product Disposal (see figure 7.3)

• Purchase evaluation – Figure 7.4

• Marketing strategy and dissatisfied customers (pp 202)

• Repeat purchase and loyalty (205) – important topic

• Application of relationship marketing (206)

Chapter Eight: Perception

• Read the whole chapter in detail

• Need to know the importance of each of the three stages (Figure 8.1) : Exposure, Attention and Interpretation

• Exposure: types of stimuli, factors, selective exposure

• Attention : – stimulus factors (see especially pp 231-233, all the

important factors and the theory of JND)

– individual factors and

– situational factors

Chapter Eight: Perception

• Interpretation and the factors affecting

• Misinterpretation of marketing strategies

• Perception and Marketing Strategy (pp

243-251)

Chapter Nine: Learning and

Memory

• Learn about the key theories of learning

– Know in detail about classical conditioning,

operant conditioning and cognitive

learning

– Know under what conditions each type of

learning is relevant

– Be able to contrast the different leaning

theories

• Read pp 260-281

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Chapter Nine: Learning

• Memory needs to understood from the

point of advertising and recall. What kinds

of cues, words will trigger recall

• Brand image and positioning

– Important topic

– Pp 283 to 287

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Chapter Ten: Motivation and

Personality

• Cover both Maslow and McGuire theories

• Marketing strategy applications (impt!)

– Pp 307 to 312

• Marketers discover purchase motives

• How marketers handle motivation conflict (approach-

avoidance): 311 to 312

• Personality

– Trait theories

– How marketers use personality in marketing

– Brand Personality (316)

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Chapter Eleven: Attitude and

Attitude Change

• Remember to link this chapter to

“Alternative Evaluation” chap 5

• Learn well : Tricomponent Model

• Read in detail pp 338 to 344 to cover all

the three components of cognitive,

affective and behavioral

• Also note cognitive consistency and

cognitive dissonance concepts (344(

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Chapter Eleven: attitude change

• The second half of Chap 11 is how attitudes are

formed and shaped

• Attitude change strategies (impt!!) read pp 345

to 351)

• Communications and attitude change

– Effect of source characteristics (source credibility,

sleeper effect)

– Types of appeals (fear, humor, comparative,

emotional)

• Market segmentation based on attitudes

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Chapter Twelve: Demographics and

Lifestyles

• Do not waste time on Aust demographic

data

• Focus instead on the key dimensions of

demographics: income, age, education.

• Understand how changes in demographics

impact on marketing strategies (389-396)

• Lifestyle and psychographics

– Segmentation method ; what is VALS

– Marketing application (406 to 407) 18

Chapter Thirteen : Household

• Focus on the household life cycle stages

(425 – 428)

• Household decision making and marketing

strategy (430 – 434)

• There could also be a minor topic being

asked on „consumer socialization)

• Read up on „trends in household

consumption‟ (437 – 440)

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Chapter Fourteen: Groups

• Types of groups

• Nature of reference group influences and

marketing strategies (455 – 462)

• What are „roles‟ and marketing impact

(465- 467)

• What is opinion leadership (469 – 474)

• Diffusion of innovations (474- 482)

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Chapter Fifteen: Social Class

• Ignore the details about Aust society

• Focus on application of social class to

marketing (513 – 514)

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Chapter Sixteen: Culture and Sub-

cultures

• Culture and cultural values (525 – 528)

• Cross cultural variations (532 – 538)

• Culture and non-verbal communications

(538 – 544)

• Marketing strategy and culture (544 -546)

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Samples of Exam Questions (edited to omit the examples of previous exam questions since the examples are NOT relevant

as the questions are changed each year. What you see here is the ‘essence of what is

asked from the topic point of view’)

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Remember: You will be given a short case study and

then you will need to respond to three questions; each

question will have several parts)

What level of purchase involvement would characterize purchasing XYZ products? How does the level of involvement influence and change the five stage decision making process? Clearly explain your answer with examples.

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Why is it important for marketers to promote taglines such as “Just Do It” for Nike as part of their branding and advertising? Explain this in terms of perception and positioning.

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Provide four marketing strategies XYZ can employ to change attitudes towards their products. Explain this in terms of the 'Tricomponent' model of attitudes.

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Sound marketing strategies take into account the nature of information search engaged in by the target market. Clearly explain the three strategies XYZ Marketing Company may employ to promote their brands which may not be currently part of the evoked set of their potential target market.

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Based on the example of the target segment XYZ, provide a detailed profile of this segment using demographics and lifestyle determinants as a basis.

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a) Outline the two learning approaches and the specific theories studied in this course. (4 marks) b) Explain what type of learning cosmetic brands is attempting to utilize in its advertising. ( 4 marks)

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Why do you think it is important to promote the tagline “Boss for Men” for the male market? Explain your answer in terms of perception

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It is useful to consider attitudes as having three components, cognitive, affective and behavioral. In attempting to evoke favorable reactions to towards a given brand:

• explain the affective component of attitude and • outline two approaches marketers can use to increase the affect component directly ( 6 marks).

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Attitudes are influenced most strongly when the brand has something unique to offer and the unique benefits of the brand are the focus of the advertisement. There are a number of techniques used to enhance attitude change. These include: source credibility, celebrity sources, fear appeals, humorous appeals, and comparative appeals, emotional, value expressive and utilitarian appeals. • Select and discuss two techniques you believe are relevant to advertising men's cosmetics. Clearly justify your choices in your answer and illustrate your answer with examples (4 marks).

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Is customer loyalty the same as repeat purchase behavior? Explain with examples

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• Outline and discuss the three major decision types a consumer can make. • In what situation is each decision type used by the consumer and why? • Explain how the decision type affects the steps in the decision making process. • Are all grocery decisions of the same type for everybody? Explain. 34

Marketers have at their disposal distinct strategies used to reinforce brands in the consumer's evoked set. • Identify and discuss with examples the three strategies that can be used to shift brands into the evoked set.

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In one particular exam, a short case study was set on the rise of

Internet shopping in Asia

Following you can see the samples of the FOUR exam questions that were

set on this case study

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1.1 What level of purchase involvement would characterise Internet shopping?

1.2 Explain how this level of involvement influences and changes the five stage decision making process?

• Clearly explain your answer with examples

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2.1 What motivates consumers to Internet shopping? Explain this in terms of Maslow’s Hierarchy of Needs

2.2 Provide four marketing strategies e-commerce markets as Amazon.com can employ to change attitudes towards Internet shopping.

2.3 Explain this in terms of the ‘Tricomponent’ model of attitudes.

Note: this is one question with different

parts 38

“As more people in Asian countries such as China and India get hooked up to the Internet, online sales are expected to rise by an average of 20 per cent a year”

• 3.1 When does information search occur?

• 3.2 Why do some consumers engage in more external search than others? Explain this in the context of costs versus benefits of external search.

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According to the article, “Asia's tech-savvy online shoppers” are taking to Internet shopping like never before.

• 4.1 Provide a detailed profile of this segment using demographics and lifestyle determinants as a basis.

• 4.2 Identify which adopter category would be more likely to engage in information search for a new product using the internet?

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Samples of MCQs

NO answers will be provided.

You have already been given a detailed set of MCQ with answers

provided in my other lecture notes.

Please do your exam revision by practicing the following questions.

You can expect to have 30 MCQ questions in the exam paper

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Q1: Motives are:

A: forces that initiate and direct consumer behaviour

B: physiologically-based guides to behaviour

C: psychologically-based patterns of behaviour

D: future-based responses to current stimuli

E: none of the above

Q 2: Which of the following is not a major step in perception?

A: attention

B: analysis

C: exposure

D: interpretation

E: all of the above are major steps in perception

Q3. An understanding of consumer behaviour includes all of the following

variables except:

A: amount purchased

B: consumers' values

C: economic situations

D: consumers' perceptions

E: how purchases are consumed

Q4. Lydia learns about various brands of running shoes as a result of closely

reading running shoe advertisements, which she finds enjoyable. This is an

example of:

A: operant conditioning

B: vicarious or modelling learning

C: classical conditioning

D: iconic rote learning

E: none of the above

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Q5.The marketing manager should view the consumer as:

A. a decision-making unit

B. a problem solver

C. being primarily concerned with economic factors

D. automatically responding in set ways to marketing stimuli

E. A and B only

Q6 If Subway, for example, would like to "repackage" its image yet not have

their customers perceive any change, they should be careful with their logo in

order not to surpass the:

A: consumer’s attitude

B: just-noticeable difference

C: surrogate indicator

D: predictive value

E: confidence value

Q7: Which of the following is a generalisation about how interpretation occurs?

A: interpretations are based primarily on the innate characteristics of the object

B: stimuli are interpreted without consideration of the individual's expectations

C: temporary characteristics of individuals do not affect their interpretations

D: interpretation is holistic or Gestalt in nature

E: all of the above are valid generalisations

Q8: Memory is:

A: composed of two distinct physiological units: short & long-term memory

B: the ability to recall a stimulus object

C: limited to cognitive elements

D: composed of an active and an inactive component

E: none of the above

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Q9: Finding that her corner grocery store is out of canola oil, Jane decides to

substitute it with sunflower oil. This is an example of:

A: iconic rote learning

B: vicarious learning

C: operant conditioning

D: reasoning

E: classical conditioning

Q10: Perceptual mapping:

A: takes consumers’ perceptions of how similar brands or products are to each other

B: alters consumers’ perceptions to fit the marketing strategy

C: relates consumers’ perceptions to product attributes

D: a and c only

E: none of the above

Q11 When Mary purchases a calculator; she is concerned with its cost, size,

power source, capabilities and warranty. John, however, is most concerned with

brand, memory and colour. John’s and Mary’s concerns, though different, make

up their:

A. evoked set

B. inert set

C. evaluative criteria

D. salient attitudes

E. product concerns

Q12 Brand loyalty differs from repeat purchase behaviour in that brand loyalty:

A. involves at least 90 per cent of product category purchases with a single brand

B. must exist over a minimum of 6 repurchase cycles

C. must not include any purchase of another brand when the primary brand is

available

D. implies a psychological commitment to the brand

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Q13. Exposure occurs when:

A. a stimulus comes within range of our sensory receptor nerves

B. the individual assigns some meaning to the stimulus

C. the individual can recall the stimulus

D. the individual becomes aware of the stimulus

Q14. A manufacturer that introduces a new snack product by giving numerous

free samples is probably using:

A. classical conditioning

B. operant conditioning

C. punishment conditioning

D. cognitive learning

Q15.A consumer who loves Noel’s Chocolate Biscuits and therefore assumes that

the company’s new Ginger Biscuits will also taste great is engaged in:

A. classical conditioning

B. stimulus discrimination

C. stimulus generalisation

D. reasoning

Q16 Which of the following is not considered a component of an attitude?

A. cognitive component

B. affective component

C. perceptual component

D. behavioural component

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Q.17 Advertising for Diet Coke that promotes a series of beliefs about the

lifestyle of someone who drinks the beverage that usually has little to do with the

actual product itself is called:

A. classical conditioning

B. adding beliefs

C. belief arousal

D. belief conditioning

Q18: Each stage in the household life cycle:

A. presents the consumer with a set of ‘problems’ to solve

B. has clearly defined, natural boundaries

C. contains an equal percentage of the Australian population

D. requires totally unique product development programs

Q19: One is most likely to seek an opinion leader when one's:

A. product involvement and product knowledge are high

B. product involvement is low and product knowledge is high

C. product involvement and product knowledge are low

D. product involvement is high and product knowledge is low

Q.20: The critical aspect in developing strategies to enhance the market

acceptance of an innovation is:

A. a moving target market approach

B. analysing the innovation from a marketing expert's perspective

C. analysing the innovation from the target market's perspective

D. adhering to the existing marketing plan

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Question 1: The marketing manager should view the consumer as:

A: a decision-making unit

B: a problem solver

C: being primarily concerned with economic factors

D: automatically responding in set ways to marketing stimuli

E: a and b only

Question 2: A substantial amount of consumer purchasing behaviour is

motivated by:

A: decisional motives

B: irrational motives

C: an attempt to maintain or enhance lifestyle

D: conditioned responses to marketing stimuli

E: none of the above

Question 3: Many recognised problems do not lead to further steps in the

decision process because:

A: their relative importance is low

B: the desired state is moderate

C: the actual state is moderate

D: all of the above

E: none of the above

Question 4: Evaluative criteria are:

A: the alternatives available to solve a problem

B: limited to the evoked set

C: limited to the inept set

D: limited to the inert set

E: none of the above

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Question 5: Brand loyal customers:

A: sometimes switch brands to take advantage of a promotional deal

B: may ‘stock up’ when their brand is being promoted

C: are likely to return to their original brand after taking advantage of a promotional

deal on another brand

D: all of the above

E: a and b only

Question 6: Exposure occurs when:

A: a stimulus comes within range of our sensory receptor nerves

B: the individual assigns some meaning to the stimulus

C: the individual can recall the stimulus

D: the individual becomes aware of the stimulus

E: none of the above

Question 7: Interpretation occurs when:

A: the individual assigns meaning to the stimulus

B: the individual activates long-term memory

C: the sensory receptor nerves are activated and the resulting sensations are passed to

the brain for processing

D: the individual is exposed to the stimulus

E: none of the above

Question 8: Learning is:

A: any change in the content or organisation of long-term memory

B: the ability to recall a stimulus object

C: the ability to relate to stimulus objects

D: the link between stimuli and information processing

E: all of the above

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Question 9: Memory is:

A: composed of two distinct physiological units: short & long-term memory

B: the ability to recall a stimulus object

C: limited to cognitive elements

D: composed of an active and an inactive component

E: none of the above

Question 10: Brand equity is:

A: the company's share of the market

B: the value attached to a brand above and beyond any specific functional

characteristic of the product

C: giving the same brand name to two different products

D: b & c

E: none of the above

Question 11: Learning that occurs when an individual is highly motivated to

learn the material is known as:

A: deliberate learning

B: high-involvement learning

C: evoked learning

D: classical learning

E: none of the above

Question 12: The process of using an established relationship between a stimulus

and response to generate the same response to a different stimulus is known as:

A: iconic conditioning

B: operant conditioning

C: instrumental conditioning

D: classical conditioning

E: none of the above

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Question 13: Uncle Tobys’ successful launch into other product categories such

as two-minute noodles and snacks is a process termed _______, which is an

example of a marketer capitalising on its _______.

A: family branding; brand loyalty

B: umbrella branding; brand equity

C: brand extension; brand sovereignty

D: family branding; brand leverage

E: umbrella branding; brand dominance

Question 14: The essence of emotion is:

A: the behaviours generated by specific emotions

B: the needs fulfilled by specific emotions

C: the thoughts generated by different emotions

D: subjectively determined feelings

E: none of the above

Question 15: Motivation is:

A: the common responses that an individual makes to a variety of situations

B: the underlying pattern that isolates specific behaviours

C: the reason for behaviour

D: a state of physiological imbalance, which compels action

E: none of the above

Question 16: Celebrity sources may enhance attitude change since:

A: they may attract attention

B: they may be viewed as being highly credible

C: consumers may desire to emulate them

D: their characteristics may reinforce product characteristics

E: all of the above

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Question 17: An attitude is:

A: an enduring organisation of motivational, emotional, perceptual and cognitive

processes with respect to some aspect of an individual's environment

B: what we think about the objects that make up the world we live in

C: a broad set of standards for guiding behaviour

D: our response tendencies toward some aspect of our environment

E: none of the above

Question 18: Opinion leaders are differentiated from their peers by their:

A: role commitment

B: social class

C: interest in the product category

D: authoritarian personalities

E: none of the above

Question 19: The diffusion process is:

A: the relative advantage of the innovation

B: the distinctiveness of the innovation

C: the process by which innovations spread throughout a market

D: the process by which an organisation develops an innovation

E: none of the above

Question 20: The term product positioning, in the text, refers to:

A: the tangible utilities derived from an object

B: the functional attributes of a given object

C: anything available for exchange and perceived as having some value by the

potential consumer

D: the physical manifestation of the underlying functional utility of an item

E: how a product is perceived by consumers relative to competing products

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