FINAL EXAM

Chapter 1: an introduction to consumer behavior (giới thiệu về

hành vi người tiêu dùng)
1. Analyze the three stages of the consumption process and
provide an example
Consumers have different buying patterns for any given product.
With the exception of impulse buys, consumers do a considerable amount
of research before deciding to buy. Therefore, marketers want to
understand consumer behavior must research three stages.
Consumption represents the process by which goods, services, or
ideas are used and transformed into value. It has three stages in the
consumer consumption process are prepurchase, purchase, and
postpurchase.
Firgure:

At the prepurchase stage: There are three sub-stages

 First of all, Problem Recognition, the consumer purchasing decision-
making process begins when the buyer is aware of the problem or need.
Needs can be derived from internal stimulation (e.g., hungry/thirst leading
to a need to eat/drink) or externally from newspapers, advertisements,
friends, society, etc. (e.g., a woman sees a neighbor's beautiful dress or
watches an advertisement for a new perfume that leads to a demand for
it). By gathering information from certain consumers, marketers can
identify the most common stimulation that have generated interest in a
particular product. Then, marketer can plan marketing strategies to evoke
consumer interest.
Secondly, Information Search, during this stage, a consumer who
recognizes a specific problem or need will then likely be persuaded to
search for information. Consumer information sources are divided into
four groups: personal, trade, public, and from personal experience. Which
information source has a strong impact on consumers depends on the
type of product and the characteristics of the customer. For instance, for
important shopping decisions such as buying a car, a house, or studying
abroad, the consumer must seek additional information from various
sources to increase the credibility of the decision. Marketers need to put
their brand on the radar of target customers. There are a number of ways
to do this, such as, leveraging Google, using online marketplaces, ramping
up social media efforts, harnessing word of mouth.
Thirdly, Alternatives Evaluation, after doing their research,
consumers typically make a shortlist of brands or products for their needs.
For instance, someone who’s dealing with a slow computer would be
deciding whether they should hire an IT expert, purchase software that or
buy a new computer altogether. Marketers need to pay more attention to
the importance of the attributes that exist in the product to meet the
needs of consumers, such as, optimize product descriptions, leverage
ratings and reviews, use Q&As.
At the purchase stage:
There are two factors that affect a consumer's buying decision: the
attitude of the other person and the unexpected situation. For instance, if
you want to buy this product, but your relative doesn't like it so you don't
want to buy it anymore and switch to another product, or you get
pickpocketed before going to the store. Therefore, marketers need to
have solutions for the brand such as promotion, active online, etc.
At the postpurchase stage:
After the purchase is complete, the customer uses the product and
has the product reviews for it. For instance, if a customer has problems
after buying a phone, there must be a place to answer the customer's
questions such as the seller's hotline, the community of users of that
brand. Customer satisfaction will directly impact next time buying
decisions. It is the marketer's duty to ensure customers continue to have
a positive experience with the product. For instance, ask for ratings and
reviews via email or social network, encourage repeat purchases like
special promotions or future products create new demands from
customers, etc.
However, in the case of products or brands that are frequently
purchased by consumers or little attention, the buyer may skip or reverse
some stages in the process. For instance, someone who regularly buys a
brand of toothpaste, they will go straight from toothpaste need to buying
decision, without going through Information Search and Alternatives
Evaluation.
For non-durable consumer goods (such as toothpaste, laundry
powder, seasoning, etc.) this process is shortened at the prepurchase
stage, and marketers don't need to focus on this stage much. But, for
durable consumer goods (such as electronics, machinery, equipment,
etc.), the cognitive process is very important, marketers have to do
something to consumers see demand for product.
Generally, understanding the consumer decision-making process is
key if marketers want to attract more customers and get them to make
that crucial purchase. Use this process and the tools to tune in to
consumers and genuinely understand how to reach them.
2. "People often buy products not for what they do but for
what they mean". Explain the meaning of this statement and
provide an example.
When we say "people often buy products not for what they do but
for what they mean." This means that the clients are selecting those kind
of products that are playing a key role in the lives of the consumers.
Customers are seeking for those products that offer solutions to the needs
of each of the clients.
The customers are therefore looking at what these product mean in
their lives. These are products that can offer a different kind of value as
compared to what the basic products can offer. It is about the image that
the product is offering to the client. For instance, the product personality
which the customers can attach to the customers in the market.
A product that excites a customer will mean a lot to the client. The
reason is that such product is not just serving the purpose that it was
developed for but rather offer another value which is beyond the
expectation of the clients. In this case, the clients will attach particular
personality to these products. Such excitement increases the competence
of the product. For instance, when an athlete selects a shoe like Swoosh
from Nike, the athlete believes that the products gives the athlete value
and a chance to win. The client in this case will then choose to pay for a
something that is more than a shoe. A client will therefore feel to have
purchased something that is of value beyond the shoe. This explains the
reason why people often buy products not for what they do but for what
they mean. It is what the product is meaning to the client. Customers
demand value but if a product is attached to excitement, then whenever
the clients purchases the product, it is not just the product, it is about the
excitement in the product.
Customers tend to default to thinking about a reputable brand, it
responds to what customers think about brand that leading to product
satisfaction. Therefore, marketers need to build high-level and quality
brand image in order for customers to have a mindset for a good brand
(such as, building brands personality, writing brand story, building a long-
term and consistent brand image, brand identity design, etc.)
Generally, the deeper meanings of a product may help it to stand
out from other similar goods and services. Customers will develop a
deeper level of trust for our brand, and be more likely to purchase what
we are selling. Therefore, building a brand image in the minds of
consumers is very important, we need to develop a consistent message
and visual identity to reinforce your mission.
Chapter 2: Perception
3. Define hedonic consumption and provide an example.
The hedonic consumption consists of multisensory, fantasy, and
emotional aspects of consumers’ interactions with products. For example,
the fizzing sound when a can of carbonate drink is popped instantly brings
about the impression of Coke.
Hedonic consumption is consumption of products by individuals for
experiencing happiness after satisfying basic needs of food, clothing and
shelter. Hedonic consumption is also pleasure derived due to experience
of a particular brand and this study is important in consumer behaviour
theory. This is the most important point in creating consumer awareness.
There are three factors which are constituted when a customer interacts
with a product:
Firstly, multisensory, in order to have hedonic consumption,
customers must be affected by all senses. For instance, a café with music,
air conditioning, a light coffee aroma, a nice background to check-in, and
a good drink taste, these will affect all of the consumer's senses to give
customers the most satisfaction.
Secondly, fantasy, is how we present our products in the
marketplace. For instance, the coffee shop's drink is delicious but it has no
air conditioning, no wifi, or no nice background to check-in and the price is
high, it will not bring satisfaction to consumers. Marketers should not give
customers too high expectations of products, because if we do not meet
those expectations, we will disappoint customers.
Thirdly, emotional aspects, are consumer feelings. For instance, if
the customer is having trouble, they will not be able to feel the appetite.
Buying online does not create hedonic consumption for consumers,
because it does not meet all three factors when customers interact with
the product.
Consumption of items which are necessary for survival is called as
utilitarian consumption. So after satisfying utilitarian needs if individual is
left with resources they can spend it on enhancing emotional pleasure
which is known as hedonic consumption in consumer behaviour theory.
The emotional pleasure generated can vary with every individual unlike in
utilitarian consumption where satisfaction level is same for every
individuals as they are basic needs. It varies from individual to individual
and marketing companies are trying to explore this consumer behaviour
by providing great consumer experience in the services they are
providing. It depends on wants of individuals which they consume after
satisfying basic needs. For instance, we are going to a movie theatre for
watching a film. Watching a film gives emotional pleasure to individual
which cannot be obtained from utilitarian consumption and helps us to
take some time off from daily routine to experience happiness.
Marketers can use this tool to increase the consumer's product
experience, such as, Creating a space that can good affect most
consumer senses, evaluate our products as moderate and as close to
reality as possible, have more promotions or bonus items to better mood
the customers.
Generally, hedonic consumption tools help marketers to sell their
products or services and can cause customers to return to their brands
the next time. If marketers do it well, it will solve the problem of "regret
after purchase "by the customer.
4. Analyze the three stages of perception and provide an
example.
Every consumer goes through a process comprised of three stages
for them to create a perception of something: Exposure, Attention, and
Interpretation. Each of these stages plays a unique and equally important
role and should be focused on by your company in order for your
consumers to be able to form the perception you want them to form.
Perception is the process of selecting, organizing, and interpreting
information. This process includes the perception of select stimuli that
pass through our perceptual filters, are organized into our existing
structures and patterns, and are then interpreted based on previous
experiences. Perception process has three stages.
 Figure:

Firstly, Exposure, this is the first stage in the perception process and
is when the consumer comes into physical contact with a stimulus,
whether they come in contact with a link to your page or a search query.
This doesn’t necessarily mean they notice stimulus, but you need to make
sure that at the very least your product or brand is present for their
senses (sight, sound, taste, touch, smell) to pick up on.
Secondly, Attention, in consumer information processing, attention
occurs when a person lingers and gives mental processing capacity to the
external stimulus from a product or brand. Selective perception is when a
consumer pays attention to messages that are consistent with her
attitudes, beliefs and needs. When a product is inconsistent with these
factors, the consumer will withdraw attention.
Thirdly, Interpretation, occurs when a person assigns a meaning to
the sensory stimulus from a product or brand marketing. Comprehension
is aided by expectations and familiarity. A consumer scans his memory to
retrieve previous experiences with the brand or a similar brand. Store-
brand marketing frequently capitalizes on the interpretation stage when
product packaging design contains logos, colors and other elements that
are similar to national brands that consumers are generally more familiar
with.
 For instance, Dien May Xanh often uses large puppets in the front of
the store, in this case the brand draws attention to the pedestrian's sight,
which attracts pedestrians and where they start looking for that puppet.
Then they will notice where the puppet is located. Eventually, they will see
the Dien may Xanh store.
The perceptual process develops a consumer’s perception of a brand
and formulates the brand’s position compared to the competition on what
marketers call a positioning strategy. It also attracts consumers' attention
and increases the ability to convert information.
For marketers, having your brand stand out in a crowded and noisy
marketplace is critical to success: playing to consumers’ senses is “next
level” marketing as these rich experiences can code a brand into the
consumer’s memory. Capturing the consumer’s attention through
stunning visual appeals, catchy sounds, tasty samples, delicious aromas
and hands-on experiences have completely over-taken the passive
advertisements and billboards of the past. When done successfully,
sensory marketing transitions a brand from “barely being noticed” to
earning a top position in the consumer’s mind.
Generally, If consumers were to only rely on sensation, it is unlikely
they would be able to draw any distinction between similar products. So
while sensation is what we experience when our sensory receptors are
engaged, it is perception, that ultimately influences our consumer
decisions and forms the basis of our preferences.
Chapter 8: Decision Making
5. Analyze the model of cognitive decision making and provide
an example
Consumers have different buying patterns for any given product.
With the exception of impulse buys, consumers do a considerable amount
of research before deciding to buy. Therefore, marketers want to
understand consumer behavior must research five stages.
Cognitive decision making is to make a deliberate and analytical
decision. It has five stages in the consumer consumption process are
Problem Recognition, Information Search, Evaluation of Alternatives,
Product Choice and Outcomes.
Figure:
 First of all, Problem Recognition, the consumer purchasing decision-
making process begins when the buyer is aware of the problem or need.
Needs can be derived from internal stimulation (e.g., hungry/thirst leading
to a need to eat/drink) or externally from newspapers, advertisements,
friends, society, etc. (e.g., a woman sees a neighbor's beautiful dress or
watches an advertisement for a new perfume that leads to a demand for
it). By gathering information from certain consumers, marketers can
identify the most common stimulation that have generated interest in a
particular product. Then, marketer can plan marketing strategies to evoke
consumer interest.
Secondly, Information Search, during this stage, a consumer who
recognizes a specific problem or need will then likely be persuaded to
search for information. Consumer information sources are divided into
four groups: personal, trade, public, and from personal experience. Which
information source has a strong impact on consumers depends on the
type of product and the characteristics of the customer. For instance, for
important shopping decisions such as buying a car, a house, or studying
abroad, the consumer must seek additional information from various
sources to increase the credibility of the decision. Marketers need to put
their brand on the radar of target customers. There are a number of ways
to do this, such as, leveraging Google, using online marketplaces, ramping
up social media efforts, harnessing word of mouth.
Thirdly, Evaluation of Alternatives, after doing their research,
consumers typically make a shortlist of brands or products for their needs.
For instance, someone who’s dealing with a slow computer would be
deciding whether they should hire an IT expert, purchase software that or
buy a new computer altogether. Marketers need to pay more attention to
the importance of the attributes that exist in the product to meet the
needs of consumers, such as, optimize product descriptions, leverage
ratings and reviews, use Q&As.
Next, Product Choice, there are two factors that affect a consumer's
buying decision: the attitude of the other person and the unexpected
situation. For instance, if you want to buy this product, but your relative
doesn't like it so you don't want to buy it anymore and switch to another
product, or you get pickpocketed before going to the store. Therefore,
marketers need to have solutions for the brand such as promotion, active
online, etc.
Finally, Outcomes, after the purchase is complete, the customer
uses the product and has the product reviews for it. For instance, if a
customer has problems after buying a phone, there must be a place to
answer the customer's questions such as the seller's hotline, the
community of users of that brand. Customer satisfaction will directly
impact next time buying decisions. It is the marketer's duty to ensure
customers continue to have a positive experience with the product. For
instance, ask for ratings and reviews via email or social network,
encourage repeat purchases like special promotions or future products
create new demands from customers, etc.
However, in the case of products or brands that are frequently
purchased by consumers or little attention, the buyer may skip or reverse
some stages in the process. For instance, someone who regularly buys a
brand of toothpaste, they will go straight from toothpaste need to buying
decision, without going through Information Search and Alternatives
Evaluation.
For non-durable consumer goods (such as toothpaste, laundry
powder, seasoning, etc.) this process is shortened at the prepurchase
stage, and marketers don't need to focus on this stage much. But, for
durable consumer goods (such as electronics, machinery, equipment,
etc.), the cognitive process is very important, marketers have to do
something to consumers see demand for product.
Generally, understanding the consumer decision-making process is
key if marketers want to attract more customers and get them to make
that crucial purchase. Use this process and the tools to tune in to
consumers and genuinely understand how to reach them.
Chapter 9: Buying, Using and Disposing
6. What are some important pros and cons of e-commerce?
Provide an example.
The ability to sell online has made many businesses viable and
profitable. Like all business models, e-commerce has its advantages and
disadvantages. It's important to get a good handle on the pros and cons
so you can be informed when making your strategic decision.
E-commerce, also known as electronic commerce or internet
commerce, refers to the buying and selling of goods or services using the
internet, and the transfer of money and data to execute these
transactions. Ecommerce is often used to refer to the sale of physical
products online, but it can also describe any kind of commercial
transaction that is facilitated through the internet.
The internet might be the single most important facet of modern
society. It plays a primary role in everything from political discourse and
higher education to the way we conduct ourselves and our businesses. It's
no wonder, then, that switching to an e-commerce model comes with
significant advantages:
First of all, convenience, e-commerce is a bastion of convenience
when you want to buy or sell products, unlike physical stores, you can log
onto the internet 24 hours a day, which means you can make online
purchases at any time. Secondly, more variety, some e-commerce
websites provide a wide array of products that offer more selection than
many traditional retail stores, many consumers who cannot find what
they’re looking for in physical stores will turn to online shops to search for
what they need. Thirdly, faster price comparisons, e-commerce platforms
make it easier and quicker for consumers to compare the prices of goods
and services. Then, potentially less expensive, online businesses or
individuals can pick a domain name or hosting site to market their goods
without needing to shell out thousands of dollars to store them in a
physical rental space, designed storefront, or warehouse, selling online
can be especially useful as a new business grows its customer base - it is
typically easier to expand a website than a physical store. For instance,
you can buy a shirt on e-commerce faster with just one click, easily
compare the price with other stores, get a lot of information about the
shirt, you can see other people's reviews about that shirt.
While it may initially seem like e-commerce will solve all your
business problems, there are disadvantages to switching from a physical
location to an online store:
Firstly, weak customer experience, one of the disadvantages of e-
commerce sites is that potential customers are unable to have a “hands-
on” or personal experience with the product before they buy it. Secondly,
limited customer service, one major e-commerce limitation is that online
retailers may not have customer service representatives who can resolve
your issues, thus, consumers may find it challenging to resolve product-
related issues or get responses to their questions. Thirdly, less regulation,
purchasing a good or service from an untrustworthy site can potentially
compromise your privacy and financial information, there’s little
verification for safety or quality. Moreover, wait times, although you can
purchase items with the click of a button, there is still a wait time between
the date of purchase and when you receive your goods. For instance, you
can’t try on clothing to see how it fits before purchasing, which means you
may have to take the extra step to return the product if you are
unsatisfied, whereas traditional brick-and-mortar stores allow you to try
things on before you decide to buy and don't have to wait the goods to
arrive like buying on e-commerce.
For marketers, effectively building and managing a customer
database (such as, sending e-mail to each group of customers or
individual customers with relevant content), designing an attractive
website , always updated information on innovations, quickly responding
to customer inquiries, etc.
Generally, the ability to sell online has made many businesses viable
and profitable. Like all business models, e-commerce has its advantages
and disadvantages. It's important to get a good handle on the pros and
cons so you can be informed when making your strategic decisions.
Chapter 11: Groups
7. How do you find a suitable opinion leader? Provide an
example.
To find opinion leaders we need to consider many different aspects
of them (such as, influence, understanding of a particular field, etc.).
There are three factors impact the status of opinion leadership:
personification of certain values, personal competence, and strategic
social location.
Opinion leaders are the people who were once called "industry
insiders" or "decision-makers". They have established authority in a given
area, market, or industry. Some may make a career out of influencing
their audience on everything from industry trends to current events and
consumer behavior.
One of the most used methods to find opinion leaders is through
self-designation, where the marketer asks consumers if they can consider
themselves as or be opinion leaders. It involves using a measurement
scale where consumers rate themselves on a scale based on how they
relate to others. Those consumers who record a high degree of interest in
a product are likely to be chosen as opinion leaders. Opinion leaders play
an important role within the two-step flow of communication model, where
information is transferred from the mass media to the public in two steps:
First, from the media to opinion leaders and then from opinion leaders to
the larger audience. The two-step flow is therefore relevant to the process
of influencing and changing people’s opinions. The status of opinion
leadership might change with time and different individuals may be
opinion leaders in different domains. There are many domains in which
information can be disseminated more effectively when opinion leaders
are targeted. For instance, in the medical field, detecting opinion leaders
has been used to raise awareness and promote new and effective
treatments, as in HIV prevention or child health promotion. Opinion leader
identification is also of interest in advertising, marketing, and product
adoption, where companies are interested in attracting potential clients to
their products as effectively as possible. Determining which opinion
leaders to collaborate with depends on the target audience that you are
trying to reach. Though many businesses pursue industry experts and
influencers with a large social media following, those opinion leaders
won't be the best fit for every brand. For instance, fashionistas will know
more about clothes and shoes than musicians. If the musician judges the
fashion style, it will not have the influence and prestige as well as the
fashionistas.
For marketers, seek out opinion leaders for collaborations,
advertising campaigns, or product endorsements. This kind of partnership
both increases a brand's visibility and builds trust between the business
and the influencer's audience.
Generally, opinion leaders are people with expertise or influence in a
specific area, can be used by businesses to build trust with their
customers or grow their sales. Different opinion leaders hold sway over
different types of communities, so it's important to keep your target
audience in mind when considering partnerships with opinion leaders.