Consumer Behavior Flashcards

Which psychological concept explains why consumers value a product more once they own it compared to before purchase?

Answer: Endowment effect

The endowment effect is the tendency for people to assign higher value to objects they already own than to identical objects they don't.

A marketer shows a price crossed out from $200 to $99. Which behavioral bias is being exploited?

Answer: Anchoring bias

Anchoring bias occurs when consumers rely heavily on the first price seen (the $200 original) as a reference point for evaluating the $99 offer.

Which segmentation variable is used when targeting consumers based on their usage rate—light, medium, or heavy?

Answer: Behavioral segmentation

Behavioral segmentation divides consumers by usage rate, purchase occasion, loyalty status, and benefits sought from the product.

In the ELM (Elaboration Likelihood Model), which route to persuasion involves careful evaluation of message arguments?

Answer: Central route

The central route involves high involvement processing where consumers carefully evaluate the quality and logic of persuasive arguments.

A consumer who buys organic food partly to feel environmentally responsible is primarily motivated by which self-concept?

Answer: Ethical self-concept

Ethical self-concept reflects a consumer's perception of their moral values, which drives purchases aligned with personal principles like sustainability.

Which type of buying behavior involves high consumer involvement but perceived low brand differentiation?

Answer: Dissonance-reducing buying behavior

Dissonance-reducing buying behavior occurs when consumers are highly involved (big purchase) but see few differences between brands, leading to post-purchase doubt.

Which online consumer behavior metric best indicates purchase intent when analyzing the path to conversion?

Answer: Add-to-cart rate

Add-to-cart rate signals strong purchase intent as consumers have moved beyond browsing to actively selecting a product for potential checkout.