Consumer Behaviour Quick Reference Guide
Key Terms and Definitions
Motivation and Needs
Term Definition
A theory of motivation that proposes five levels of
needs: physiological, safety, social, esteem, and self-
Maslow's Hierarchy of Needs
actualization. Lower-level needs must be satisfied
before higher-level needs become motivators.
Basic biological needs such as food, water, air, and
Physiological Needs
shelter.
Safety Needs The need for security, protection, order, and stability.
Social Needs The need for affection, belonging, and acceptance.
The need for self-esteem, achievement, recognition,
Esteem Needs
and status.
The need to fulfill one's potential and achieve
Self-Actualization
personal growth.
Personality
Term Definition
The inner psychological characteristics that
Personality determine and reflect how a person responds to their
environment.
A Neo-Freudian theory that classifies people into
three personality types: Compliant (move toward
Karen Horney's CAD Theory
people), Aggressive (move against people), and
Detached (move away from people).
Individuals who move toward others, seeking love,
Compliant Personality
affection, and approval.
Individuals who move against others, seeking power,
Aggressive Personality
control, and dominance.
Individuals who move away from others, seeking
Detached Personality
independence and self-sufficiency.
Term Definition
A model that identifies five broad dimensions of
Big Five Personality Traits (OCEAN) personality: Openness, Conscientiousness,
Extraversion, Agreeableness, and Neuroticism.
A personality trait characterized by rigid thinking
and resistance to change. Highly dogmatic
Dogmatism
consumers prefer established brands and traditional
products.
Inner-directed consumers rely on their own values
Inner-Directed vs. Outer-Directed and standards, while outer-directed consumers are
influenced by others and seek social approval.
Visualizers prefer information presented in pictures
Visualizers vs. Verbalizers and images, while verbalizers prefer written or
spoken information.
The tendency to engage in and enjoy thinking.
Need for Cognition Consumers with high need for cognition prefer
detailed information and rational appeals.
The level of arousal or stimulation that an individual
finds most comfortable. Some consumers seek high
Optimum Stimulation Level
stimulation (variety-seeking), while others prefer
low stimulation (routine).
Freudian Theory
Term Definition
The primitive, instinctive component of personality
Id
that operates on the pleasure principle.
The rational component of personality that operates
Ego on the reality principle and mediates between the id
and superego.
The moral component of personality that
Superego
incorporates societal standards of right and wrong.
Unconscious psychological strategies used to protect
Defense Mechanisms
the ego from anxiety and maintain self-esteem.
Creating logical excuses for behavior that is actually
Rationalization
motivated by unconscious desires.
Attributing one's own unacceptable thoughts or
Projection
feelings to others.
Expressing anger or frustration, often displaced onto
Aggression
a safer target.
Learning
Term Definition
A learning process in which a neutral stimulus is
paired with a stimulus that naturally elicits a
Classical Conditioning
response, until the neutral stimulus alone elicits the
response.
A stimulus that naturally elicits a response without
Unconditioned Stimulus (UCS)
prior learning.
A previously neutral stimulus that, after being paired
Conditioned Stimulus (CS) with an unconditioned stimulus, comes to elicit a
conditioned response.
A learning process in which behavior is shaped by its
Instrumental (Operant) Conditioning
consequences (rewards or punishments).
Rewarding desired behavior to increase its
Positive Reinforcement
frequency.
Removing an unpleasant stimulus to increase the
Negative Reinforcement
frequency of a desired behavior.
Applying an unpleasant consequence to decrease the
Punishment
frequency of an undesired behavior.
The tendency for a conditioned response to be
elicited by stimuli similar to the conditioned
Stimulus Generalization
stimulus. Used in brand extensions and family
branding.
The ability to distinguish between similar stimuli and
Stimulus Discrimination
respond only to the original conditioned stimulus.
Attitudes
Term Definition
A learned predisposition to behave in a consistently
Attitude
favorable or unfavorable way toward a given object.
A model that views attitudes as consisting of three
Tri-Component Attitude Model components: cognitive (beliefs), affective (feelings),
and conative (behavioral intentions).
The beliefs and knowledge a consumer has about an
Cognitive Component
object.
The feelings and emotions a consumer has toward an
Affective Component
object.
Term Definition
The likelihood or tendency of a consumer to take a
Conative Component
specific action toward an object.
Models that examine attitudes as a function of
Multi-Attribute Attitude Model
consumer beliefs about the attributes of a product.
Post-purchase psychological tension or anxiety that
Cognitive Dissonance occurs when a consumer doubts the wisdom of their
purchase decision.
Decision-Making
Term Definition
The five-stage process consumers go through when
making a purchase: need recognition, information
Consumer Decision-Making Process
search, evaluation of alternatives, purchase decision,
and post-purchase behavior.
The first stage, where the consumer recognizes a
Need Recognition
problem or need.
The stage where the consumer seeks information
Information Search
about potential solutions.
The stage where the consumer compares different
Evaluation of Alternatives
products or brands.
The stage where the consumer makes the actual
Purchase Decision
purchase.
The stage where the consumer evaluates their
Post-Purchase Behavior purchase and may experience satisfaction or
dissatisfaction.
Market Segmentation
Term Definition
The process of dividing a market into distinct groups
Market Segmentation of consumers with different needs, characteristics, or
behaviors.
Dividing the market based on lifestyle, personality,
Psychographic Segmentation
values, and interests.
Dividing the market based on consumer knowledge,
Behavioral Segmentation
attitudes, uses, or responses to a product.
Term Definition
Dividing the market based on age, gender, income,
Demographic Segmentation
education, and occupation.
Geographic Segmentation Dividing the market based on location.
Research Methods
Term Definition
Research methods that seek to understand consumer
Qualitative Research motivations, attitudes, and behaviors through in-
depth exploration.
Indirect methods of questioning that encourage
respondents to project their underlying motivations
Projective Techniques
and feelings. Examples include word association,
sentence completion, and storytelling.
A qualitative research method involving a small
Focus Groups group of consumers discussing a topic under the
guidance of a moderator.
One-on-one interviews that explore a consumer's
Depth Interviews
thoughts and feelings in detail.
Customer Value and Satisfaction
Term Definition
The ratio between the customer's perceived benefits
Customer Value and the resources (money, time, effort) used to
obtain those benefits.
The consumer's perception of the performance of a
Customer Satisfaction
product or service in relation to their expectations.
The anticipated level of performance a consumer
Customer Expectations
expects from a product or service.
Cultural and Social Factors
Term Definition
The sum total of learned beliefs, values, and customs
Culture that regulate the behavior of members of a particular
society.
Term Definition
The tendency to view one's own culture as superior
and to judge other cultures by one's own standards.
Ethnocentrism
In consumer behavior, it refers to a preference for
domestically produced goods.
A group that serves as a point of comparison for an
Reference Group individual in forming their values, attitudes, and
behaviors.
A primary reference group that significantly
Family influences consumer behavior, especially for
products used by the entire family.
Key Concepts to Remember
Stimulus Generalization in Marketing
Stimulus generalization is used in several marketing strategies:
1 Brand Extensions: Launching new products under an existing, well-known brand
name to leverage the positive associations consumers have with the original brand.
2 Family Branding: Marketing a whole line of products under one brand name to
create a unified brand image.
3 Look-Alike Packaging: Designing packaging to resemble that of a leading brand to
encourage consumers to associate the private-label brand with the quality of the
national brand.
Relationship Between Attitudes and Behavior
The relationship between attitudes and behavior is complex and not always consistent.
Several factors can influence this relationship:
4 Situational Factors: External circumstances can prevent consumers from acting on
their attitudes.
5 Social Pressure: Consumers may act against their attitudes due to social norms or
expectations.
6 Strength of Attitude: Strongly held attitudes are more likely to predict behavior than
weakly held attitudes.
7 Freedom to Act: When consumers have the freedom to act as they wish, their actions
are more likely to be consistent with their attitudes.
Technology's Impact on Marketing
Technology has revolutionized marketing in several ways:
8 Data Collection and Analysis: Companies can now collect vast amounts of data on
consumer behavior and use AI-driven analytics to gain insights.
9 Personalization: Technology enables marketers to create highly personalized
experiences tailored to individual consumer preferences.
10 Social Media Engagement: Brands can build emotional connections with consumers
through social media platforms.
11 Enhanced Customer Relationships: Technology facilitates ongoing communication
and engagement with customers, building long-term loyalty.
Exam Tips
12 Answer in Your Own Words: The exam instructions emphasize that you should give
your answers in your own words as far as practicable.
13 Answer All Parts: All parts of a question should be answered at one place only.
14 Use Examples: Many questions ask for real-world examples or case studies. Be
prepared to provide specific examples to support your answers.
15 Diagrams: Some questions explicitly ask for diagrams (e.g., decision-making
process). Practice drawing simple, clear diagrams.
16 Time Management: You have 2 hours to answer 5 questions out of 6. Allocate
approximately 24 minutes per question.
17 Read Carefully: Pay attention to whether a question has an "OR" option, allowing
you to choose between two sub-questions.