Consumer Behavior and Insights Flashcards

Which consumer segmentation approach divides the market based on personality traits, values, and lifestyles?

Answer: Psychographic segmentation

Psychographic segmentation groups consumers by psychological characteristics including values, personality, interests, and lifestyle choices.

The concept of 'variety seeking' behavior is most common in which buying situation?

Answer: Low-involvement products with perceived brand differences

Variety-seeking behavior occurs with low-involvement products where consumers switch brands not due to dissatisfaction but simply for novelty.

When a consumer feels anxiety after purchasing an expensive item and seeks reassurance, they are experiencing:

Answer: Cognitive dissonance

Cognitive dissonance is the discomfort felt after a purchase when consumers doubt whether they made the right choice, particularly for high-involvement items.

Which of the following best describes the 'evoked set' in consumer decision-making?

Answer: The brands a consumer actively considers for purchase

The evoked set (also called the consideration set) consists of the specific brands a consumer thinks of and actively evaluates when making a purchase decision.

A retail brand launches limited-edition products that sell out quickly to boost desirability. This strategy leverages which consumer behavior principle?

Answer: Scarcity and loss aversion

Scarcity triggers loss aversion — consumers fear missing out on limited items, making products seem more desirable and driving urgency to purchase.

Which of the following is an example of operant conditioning applied to consumer loyalty programs?

Answer: Offering points rewards each time a customer makes a purchase

Loyalty points programs use positive reinforcement (a key operant conditioning mechanism) by rewarding purchasing behavior to increase its frequency.

What does the 'long tail' concept suggest about consumer demand in digital marketplaces?

Answer: Niche products collectively represent a significant and viable market

The long tail theory, popularized by Chris Anderson, holds that niche products with lower individual demand can collectively generate substantial revenue in digital environments.