CONSUMER BEHAVIOR

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• Consumer’s product
and service preferences
are constantly
changing.
• Marketing managers
must understand these
desires in order to
create a proper
marketing mix for a
well-defined market.

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 CONSUMER BEHAVIOR
The dynamic interaction of affect and cognition,
behavior and the environment by which human
beings conduct the exchange aspects of their
lives. (AMA)
Dynamic – always changing with faster product cycles and greater need for
continued innovation.
Involves interaction – among cognition, affect, behavior and the
environment.
Involves exchanges - exchanging value for value.

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 Consumer Decision-Making Process

Need Recognition
1

2
Information Search
Cultural, social,
individual and 3
psychological Evaluation of Alternatives
factors affect all
steps
4
Purchase
5
Post-purchase Behavior

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 Need Recognition
• It occurs when consumers are faced with an
imbalance between actual and desired states that
arouses and activates the consumer decision-
making process.
WANT – is the new way that a customer goes about
addressing a need.

• It is triggered when a consumer is exposed to

either an internal or external stimuli.
Internal Stimuli – are occurrences or experience
External Stimuli – influences from outside source

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 External Stimuli
Internal Stimuli

OR

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 Information Search
• Stage in which consumers search for information
about the various alternatives available to satisfy
their needs or wants.
Internal Information Search – the person recalls information
stored in the memory.
External Information Search – seeks information in the
outside environment.
a. Non-Marketing Controlled – non association with
marketers promoting a product
b. Marketing Controlled – with association with
marketers promoting a product

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 Evaluation of Alternatives
To Buy or Not to Buy?
1. Whether to Buy?
2. When to Buy?
3. What to Buy (product type
and brand)?
4. Where to buy (type of
retailer, specific retailer,
online or physical store)?
5. How to pay?

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 Purchase
• Acquiring the goods to
satisfy one’s needs and
wants in exchange for a
value
• Decision to buy

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Types of Purchase According to Plan
• fully planned purchase - based upon a lot of
information; complex or expensive item.
• partially planned purchase - when they know
the product category they want to buy but will
wait until they get to the store to choose a
specific style or brand.
• Unplanned purchase – impulse buying.

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Type of Purchase: Fully, partial or unplanned

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 Post-Purchase Behavior
• When buying products, consumers expect
certain outcomes from the purchase.
COGNITIVE DISSONANCE – an inner tension
senses by people who recognize inconsistencies
between their values or opinions and their
behaviors.
Consumers try to reduce their dissonance
by justifying their decisions.

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TYPES OF CONSUMER BUYING
DECISIONS AND CONSUMER
INVOLVEMENT

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All consumer buying decisions generally fall
along a continuum of three broad categories:
1. Routine Response Behavior – buyer sticks with
one brand despite familiarity with other brands
2. Limited Decision Making – with previous
product experience but unfamiliar with the
current brands available
3. Extensive Decision Making – most complex;
buying unfamiliar, expensive product or an
infrequently bought item.

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Five Factors Defining Buying Decisions
a) Level of consumer involvement – amount of
time and effort spent in searching, evaluating
and decision processes of consumer behavior
b) Length of time to make decisions
c) Cost of the goods or service
d) Degree of information search
e) Number of alternatives considered

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 Continuum of Consumer Buying Decisions
ROUTINE
RESPONSE BEHAVIOR LIMITED DM EXTENSIVE DM

Involvement Low Low to Moderate High

Time Short Short to Moderate Long
Cost Low Low to Moderate High
Information Search Internal Only Mostly Internal Internal and External
Number of One Few Many
Alternatives

© Cengage Learning 2013

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 Factors Affecting Consumer Decision-Making
Process

CAKE? CARROT?
CULTURAL
FACTORS
SOCIAL FACTORS Culture
Reference Groups Values
Opinion Leaders Social Class
Family
PSYCHOLOGICAL
INDIVIDUAL FACTORS
FACTORS Perception
Gender Motivation
Age Learning
Life Cycle Stage Beliefs and
Personality Attitude
Lifestyle 19
 CULTURAL FACTORS
• With broadest and deepest influence

CULTURE – is the essential character of a society that

distinguishes it from other cultural groups. (values, language,
myths, customs, rituals and laws)
VALUE – an enduring belief shared by a society that a specific
mode of conduct is personally or socially preferable to
another mode of conduct.
SOCIAL CLASS – a group of people who are considered nearly
equal in status or community esteem, who regularly socialize
among themselves both formally and informally, sharing
behavioral norms.

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 SOCIAL FACTORS
• Reference Groups – consists of all the formal and
informal groups that influence the buying
behavior of an individual.
– Indirect Reference Group – non-membership
reference groups
• Aspirational Reference Group – a group that a person would
like to join
• Non-aspirational Reference Group – dissociative groups,
influence one’s behavior when he try to maintain distance
from them
– Direct Reference Group – face to face membership
• Primary Membership Groups – informal, face to face
manner
• Secondary Membership Groups – less consistency and more
formally
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Types of Reference Groups

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 SOCIAL FACTORS
• Opinion Leaders – a person who influence
another
• Family – most important social institution for
many consumers, strongly influencing values,
attitudes, self-concept and buying behavior.
– SOCIALIZATION PROCESS – transferring/ passing
down of cultural values and norms to children.

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INDIVIDUAL FACTORS
• Individualism
– Gender
– Age
– Life cycle stage
– Personality
– Lifestyle
– Self-Concept

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 PSYCHOLOGICAL FACTORS
• Perception – the process by which people select,
organize and interpret stimuli into meaningful and
coherent picture.
• Motive – a driving force that causes a person to take
action to satisfy specific needs.
• Learning – a process that creates changes in behavior
immediate or expected, through experience and
practice.
• Belief – an organized pattern of knowledge that an
individual holds as true about his or her own word.
• Attitude – a learned tendency to respond consistently
toward a given object.
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 ANNOUNCEMENT
• Prepare for Quiz No. 2 next meeting
• COVERAGE:
– History of Marketing
– Overview of Marketing
– Consumer Decision Making

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REFERENCE:

• McDaniel, Carl et.al. (2012), Marketing

Principles. Cengage Learning Asia Pte. Ltd.,
New Tech Park, Singapore.

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