Bronis Verhage ISBN: 9789001818661 http://www.marketingfundamentals.noordhoff.nl © 2016 Noordhoff Uitgevers bv GLOSSARY Chapter 4 Buying behaviour Black box Model of consumer decision making used to identify unperceivable factors – such as consumers’ mental processing – that influence their buying behaviour. Consumer behaviour Consumers’ decision making, information seeking and communication behaviour, influenced by their personal circumstances such as demographic characteristics, lifestyle and situational factors. Internal search A consumer subconsciously scanning his memory to see what he already knows about a product or service. External search A consumer’s information-gathering about a product or service, using personal, public, commercial, or experiential sources before making a purchase decision. Choice criteria Product benefits that consumers consider in evaluating and choosing between alternatives. Evoked set The (limited) number of brands that someone considers in making a purchase decision. Attributes Product characteristics used in evaluating the options in a purchase decision. Cognitive dissonance Unpleasant feeling of doubt about the brand choice after making an important purchase decision (Buyer’s remorse). Rationalisation Emphasizing a product’s merits and dismissing its drawbacks by a consumer in order to reduce his cognitive dissonance. Word-of-mouth People sharing information about products or promotions with friends, primarily through social media. Extensive problem solving A consumer’s broad and thorough analysis of information when making a major buying decision. High involvement The high degree of importance that a consumer perceives a product to have for him personally. Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e 1 Bronis Verhage http://www.marketingfundamentals.noordhoff.nl ISBN: 9789001818661 © 2016 Noordhoff Uitgevers bv Limited problem solving The restricted effort and time spent by a consumer when buying products that he is already familiar with. Routine problem solving A consumer’s rapid decision making when buying a frequently purchased product out of habit. Impulse purchase A consumer’s unplanned, spur of the moment purchase after noticing a product online or in a store. Low-involvement The low degree of importance that a consumer perceives an inexpensive, frequently purchased product to have for himself. Demographic characteristics Personal characteristics such as age, gender, level of education, marital status and income that influence a consumer’s buying process. Lifestyle A way of living, characterized by someone’s activities, interests, and opinions. AIO variables Specific ‘activities, interests, and opinions’ that make up a consumer’s lifestyle. Self-concept How a person sees himself, and how he believes others perceive him (Self-image). Real self concept A person’s self-image in terms of how he actually is (Actual self). Ideal self concept Someone’s perception and attitudes about the person he would be like if he were perfect or ideal. Psychographics Analysis of people’s lifestyles to identify the motives for buying and using certain products and services. Situational influences Factors typically related to when, where and how a consumer shops that influence his buying behaviour. Drive A strong stimulus that encourages action or motivates someone to reduce a need. Basic needs Conditions essential for survival, such as the availability of food, water, and shelter. Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e 2 Bronis Verhage http://www.marketingfundamentals.noordhoff.nl ISBN: 9789001818661 © 2016 Noordhoff Uitgevers bv Reflex A type of psychological need, such as the urge to belong to a group. Purchasing motivation Driving force behind a person’s buying decisions, rooted in a negative (e.g. solving problems) or positive (e.g. sensory fulfillment) stimulus. Motivation Someone’s reasons (needs, wants, goals, forces, etc.) to act in a particular way (Motive). Hierarchy of needs Maslow’s classification of human needs, from the most pressing (physiological needs) to the least pressing (self-actualisation). Perception The process whereby people collect (through any of their five senses), organize and personally interpret information to give meaning to the world around them. Selective exposure Someone’s efforts to avoid most of the messages and other excessive stimuli in his environment. Selective attention A person’s ability to screen out most information that he is not interested in. Selective distortion People tend to see only what they want to see and hear what they want to hear, consistent with their beliefs (Selective interpretation). Selective retention People’s tendency to only remember the information that is relevant to their current problem or decision. Learning How somebody – through information processing, reasoning and practice – gains knowledge and may change his attitude or behaviour. Stimulus-response model Notion that we learn through experiences – based on stimuli – triggering us to develop certain habits in our behaviour or response (such as buying). Cognition The processes of reasoning, interpretation and mental problem solving without any direct experience. Cognitive approach Theory about learning, underlining that some insights are gained by analytical thinking and information processing, enabling better decision making. Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e 3 Bronis Verhage http://www.marketingfundamentals.noordhoff.nl ISBN: 9789001818661 © 2016 Noordhoff Uitgevers bv Personality An individual’s experiences and psychological characteristics that make him unique, leading to a consistent pattern of responses in handling perceived reality. Attitude A learned tendency to respond in a consistent way to certain ideas, people, objects or organizations. Attitude object A product, service, brand, store or person that consumers develop a positive or negative attitude toward. Attitude formation Development of a person’s attitude toward an object. Attitude research Research on how attitudes develop and how its components should be measured. Cognitive component A person’s knowledge and beliefs about a product or another object; the attitude’s ‘knowing’ component. Affective component A person’s emotions and feelings about an object; the attitude’s ‘feeling’ component. Conative component A person’s intended (and actual) behaviour with respect to an object; the attitude’s ‘doing’ component. Culture Set of values, customs, beliefs and symbols that members of a community have developed to shape their behaviour and way of life and help distinguish them from other communities. Socialization Incorporation of typical values, norms and symbols by those who learn about a culture. Subculture Part of a culture whose members subscribe to the cultural mores of the overall society, yet also share beliefs, customs and consumption patterns that set them apart. Social status Prestige relating to being an accepted member of a social class. Social class Relatively permanent and homogeneous group of individuals or families sharing similar values, interests, lifestyles and behaviour. Reference group Group of people having a substantial influence over an individual’s attitudes and behaviour. Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e 4 Bronis Verhage http://www.marketingfundamentals.noordhoff.nl ISBN: 9789001818661 © 2016 Noordhoff Uitgevers bv Membership reference group Reference group in which a consumer participates, influencing his attitudes and purchase decisions. Primary group Group – such as immediate family or co-workers – with whom someone interacts frequently and informally. Secondary group Formal group – such as trade union or professional organization – with whom a person interacts occasionally. Aspiration group Reference group of which someone is not a member, but to which he aspires to belong Anticipatory socialization Adopting the values, standards, and consumption pattern of a group someone is eager to join. Reference person A person that someone chooses as a basis for self-appraisal or as a ‘point of reference’ in determining his own preferences, beliefs and behaviour. Opinion leader A person who influences other people’s views and buying behaviour or to whom others turn for information and advice. Testimonial advertising Ads or commercials in which celebrities, experts or other consumers endorse a brand or discuss their own positive experiences with a product. Family Independent household of two or more people living together based on marriage, blood relationships, cohabitation or adoption. Family life-cycle The phases through which a traditional family progresses – from getting married and childbirth to the empty nest, retirement and a partner’s death – each one affecting the family’s needs and buying behaviour. Derived demand The demand for an industrial product (e.g. sheet steel) is driven by – or derived from – the demand for related consumer products (e.g. cars). Relationship building Developing and maintaining long-term relationships with buyers, in an effort to turn them into loyal customers. Vendor rating Systematically evaluating and ranking current or potential suppliers based on their experience, quality level, location, customer service and other criteria. Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e 5 Bronis Verhage http://www.marketingfundamentals.noordhoff.nl ISBN: 9789001818661 © 2016 Noordhoff Uitgevers bv Decision making unit Temporary or permanent group of people from different departments of a firm who participate in the purchasing process (DMU; Buying centre). Initiator Role in the DMU of someone who set off the buying process by being the first one to recognize that the company needs to make a particular purchase. Influencer DMU member who affects the purchase decision by helping to define the technical specifications or by providing information for evaluating the options. Advisor External consultant who offers a company several alternatives to choose from or who facilitates the purchase decision in some other way. Gatekeeper Contact person (such as a purchasing agent or secretary) who controls the flow of information to other buying centre members. Decider The person who ultimately selects the product to be bought, even though another DMU member is formally authorized to select the vendor. Buyer DMU member in charge of obtaining competitive bids, selecting a supplier (although his superior may negotiate the contract), and setting up delivery schedules. User One of the most important people in the buying process, because his feedback on the product’s performance will play a key role in future purchasing decisions. Strategic alliance Agreement between two organizations to work together in achieving a common objective or meeting an important business need while remaining independent. New task Buying situation in which the company is a first-time buyer of a product, requiring more information and often an extended buying center to reduce the risk. Modified re-buy Re-evaluation of available options by a (dissatisfied) company that has bought the product before, but now modified the product specifications or intends to assess new suppliers. Straight re-buy Routine purchase of standard products (such as office supplies or maintenance services) that a company needs on a regular basis. Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e 6