Consumer behavior (CB)

Arash Najmaei
Arash.unity@gmail
Arash.unity@yahoo.com
H/P : 0172116875

Lecture one( 15 April2008)

 Assessment…
• 60% course works
2.10% attendance
3.10% class participation
4.40% assignment

• 40% final exam

 Referencing….
• “ Consumer Behavior” Leong G.Schifferman and
Lesilie Lazar Kanuk. Pearson Prentice Hall ninth edition

• “ Consumer Behaviour” Michael R. Solomon , Prentice

Hall

• “Consumer Behaviour” Hawkins,Mothersbaugh and

Best, McGraw Hill

• Lecture notes
 introduction
• Consumer Vs. Customer

• The importance of consumer and CB

• Marketing evolution and shifts of power

 Consumer versus Customer
• Theoretically consumers are end users and
customers are buyers but this definition brings
about some degree of ambiguity . Therefore we
define consumers as those who seek products
to consume and satisfy they needs. Based on
this definition, consumers are the most important
element in marketing and understanding their
behavior makes really sense.
 Application of CB
1. Marketing Strategy
2. Regulatory (Public) Policy
3. Social Marketing
4. Personal Consumer Skills
 Orientation in CB
• Anthropology( cultural and cross culture
studies)
• Economics
( demand, supply, purchasing power and so
on…)
• History and geography
• Psychology ( attitudes, perceptions, beliefs
an so on…)
• Sociology
 Characteristics Affecting
Consumer Behavior

Key Factors in studying consumer behavior

• Cultural
• Social
• Personal
• Psychological

6-8
 Factors Influencing Consumer Behavior

Cultural Social Personal Psychological

Culture Reference Age & Life- Motivation
Groups Cycle Stage
Subculture Perception
Family Occupation
Social Class Learning
Roles & Economic
Beliefs &
Status Situation
Attitudes
Lifestyle
Personality &
Self-Concept
Influences on
the consumer
purchase
decision
process
 Consumer and Marketing
• Peter Drucker and Consumer
The sole aim of business is to create
consumer
• Consumer behavior elements
4. Pre-purchase
5. Purchase
6. Consumption
7. Post consumption
 Marketing Strategy and
Consumer Behavior

MARKET MARKET
ANALYSIS SEGMENTATION

MARKETING CONSUMER
DECISION OUTCOMES
STRATEGY
PROCESSES
 Questions….
• Why do we buy?
• How do we buy?
• Where do we buy
from?
• How much do I buy?
• With whom do I buy?
• For whom do I buy?
• How often do I buy?
• What brand do I buy?
 The Nature of Consumer
Behavior
1. External Influences
2. Internal Influences
3. Self-Concept
4. Situations
5. Experiences and
acquisitions
 Consumer decision process
• Consumer decision making steps (5
steps)
• Consumer decision process and
corresponding model to elaborate their
decision making process in order to
analyze their behavior along different
steps.

• CDP model
 The holistic Buyer Decision
Process

• Five Stages:
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

6 - 16
CONSUMER DECISIONS:
Theory and Reality in Consumer Buying

Problem
Recognition
Information
Search

Evaluation of
Alternatives
Purchase

Postpurchase
Evaluation/
Theory
Behaviors
Complications
 Consumer Decision-Making
Process
Need Recognition

Information Search

Cultural, Social,
Individual and
Psychological Evaluation
Factors of Alternatives
affect
all steps
Purchase

Postpurchase
Behavior
 Consumer needs..
• Maslow’s famous hierarchy of needs helps
both marketers and consumers to
understand and classify their needs in
order to find the best choice of
satisfaction.
Hierarchy
of needs
 The Buyer Decision Process

Process Stages
• Needs can be
triggered by:
• Need recognition – Internal stimuli
• Information search • Normal needs become
• Evaluation of alternatives strong enough to drive
• Purchase decision behavior
• Postpurchase behavior – External stimuli
• Advertisements
• Friends of friends

6 - 22
 The Buyer Decision Process

Process Stages
• Primary source of
information:
• Need recognition
• Information search • Internal
• Evaluation of alternatives Retrieval and cognitive
• Purchase decision process
• Post-purchase behavior
• external

6 - 23
• Consumers exhibit heightened attention or actively
search for information.

• Sources of information:
– Personal
– Commercial
– Public
– Experiential
• Word-of-mouth
Approaches to Search for information and
Problem Solutions

INTERNAL
Memory
Thinking

EXTERNAL
Word of mouth, media,
store visits, trial CATALOG
 The information search stage

An internal search involves the scanning of

one's memory to recall previous experiences Personal sources
or knowledge concerning solutions to the (friends and family)
problem-- often sufficient for frequently
purchased products.
Public sources (rating
An external search may be necessary when services like Consumer
Reports)
past experience or knowledge is insufficient,
the risk of making a wrong purchase
decision is high, and/or the cost of gathering Marketer-dominated
information is low. sources (advertising or
sales people)

The evoked set: a group of

brands from which the buyer can
choose
Determinants of External Search
 Cost vs. Benefits of Search

• Market
Characteristics
• Product
Characteristics
• Consumer
Characteristics
• Situation
Characteristics
 The mechanism of consumer loyalty
achievement

• By studying consumer behavior marketers

being able to understand different behavior of
various consumers toward different products
and brand .then they can set proper set of
strategies in marketing mix policies to target
and serve consumers in different segments
which in return would result in consumer
satisfaction , consumers satisfaction will
undoubtedly lead to consumer loyalty and
constant profit for company.
 Summary….
• Consumer and customer
• Consumer behavior
• Application of CB
• Orientation of CB
• Underlying characteristics
• Consumer decision process ( CDP)