Week 1 🧑‍🤝‍🧑 Introduction to Consumer Behaviour

Which of the following is a process that students should understand by the end of the lecture?

• Consumer behavior

• Product pricing

• Supply chain management

• Advertising strategies

Answer explanation

Consumer behavior is crucial for understanding how customers make purchasing decisions, which is essential knowledge for students by the end of the lecture.

What should students be able to explain regarding marketers by the end of the lesson?

• How marketers segment consumers

• How marketers design products

• How marketers set prices

• How marketers manage employees

Answer explanation

By the end of the lesson, students should be able to explain how marketers segment consumers, which is crucial for targeting specific groups effectively and tailoring marketing strategies.

How might the relationship between consumer choices and lifestyle influence marketing strategies?

• Marketers can tailor products and messages to fit different lifestyles.

• Marketers should use the same strategy for all consumers.

• Marketers should avoid considering lifestyle factors.

• Marketers should only focus on product features.

Answer explanation

Marketers can effectively reach diverse consumer segments by tailoring products and messages to align with various lifestyles, enhancing engagement and satisfaction.

True or False: The consumer decision-making process only involves the act of purchasing and does not include pre-purchase or post-purchase activities.

• True

• False

• Sometimes True

• Cannot be determined

Answer explanation

False is correct because the consumer decision-making process includes pre-purchase activities (like need recognition and information search) and post-purchase activities (like evaluation and feedback), not just the act of purchasing.

During which stage of the consumption process does decision-making and transaction occur?

• Pre-purchase

• Purchase

• Post-purchase

• Pre-production

Answer explanation

The decision-making and transaction occur during the Purchase stage of the consumption process, where consumers finalize their choices and complete the buying process.

Which of the following best describes the post-purchase stage?

• Searching for information about products

• Making the final decision to buy

• Experiencing satisfaction or dissatisfaction, spreading word-of-mouth, and disposing of the product

• Comparing different brands before buying

Answer explanation

The post-purchase stage involves the consumer's feelings after buying a product, including satisfaction or dissatisfaction, sharing experiences with others, and deciding what to do with the product afterward.

If a company wants to target consumers based on their usage patterns and brand loyalty, which segmentation strategy should they use?

• Geographic

• Behavioral

• Demographics

• Psychographics

Answer explanation

The behavioral segmentation strategy focuses on consumers' usage patterns and brand loyalty, making it the most suitable choice for targeting based on these factors.

A company can use behavioral segmentation to increase brand loyalty among its customers by:

• Offering products based on age and gender

• Analyzing usage patterns and rewarding frequent buyers

• Focusing on urban vs. rural preferences

• Targeting consumers with similar lifestyles

Answer explanation

The correct choice, analyzing usage patterns and rewarding frequent buyers, directly targets customer behavior, fostering loyalty through incentives. Other options focus on demographics or preferences, which do not enhance loyalty as effectively.

Which of the following is NOT a type of market segmentation?

• Geographic

• Demographic

• Psychographic

• Technological

Answer explanation

Technological is not a recognized type of market segmentation. The main types include Geographic, Demographic, and Psychographic, which focus on location, population characteristics, and consumer psychology, respectively.

Which of the following is an example of a psychographic segmentation variable?

• City

• Family size

• Values

• Zip code

Answer explanation

Psychographic segmentation focuses on psychological attributes. 'Values' reflect consumers' beliefs and motivations, making it a psychographic variable. In contrast, 'City', 'Family size', and 'Zip code' are demographic or geographic variables.