Consumer Behaviour

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 Consumer Behavior

Processes a consumer uses to make

purchase decisions, as well as
to use and dispose of purchased
goods or services, also includes
factors that influence purchase
decisions and the product use.

2
Understanding Consumer Behavior

consumers
consumers make
make
purchase
purchase decisions
decisions

Consumer
Consumer
behavior = HOW
behavior

consumers
consumers useuse and
and
dispose
dispose of
of product
product

3
Consumer Decision-Making Process

A five-step process used by

consumers when buying
goods or services.

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Consumer Decision-Making
Process
Need
Need Recognition
Recognition

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

Postpurchase
Postpurchase
Behavior
Behavior
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Need Recognition

Result of imbalance
between actual
and desire states.

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 Need Recognition

Int
e
Sti rnal
mu
li

Preferred
Preferred
Present
Present State
State
Status
Status
n al
t e r li
Ex timu
S Marketing helps consumers recognize
an imbalance between
present status and preferred state.

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Recognition of Unfulfilled
Wants
• When a current product isn’t
performing properly

• When the consumer is

running out of a product

• When another product seems

superior to the one currently used

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 Information Search

Internal Information Search

 Recall information in memory

External Information search

 Seek information in outside

environment
 Nonmarketing controlled
 Marketing controlled

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External Information Searches

Need Less Need More

Information Information

Less Risk More Risk

More knowledge Less knowledge
More product experience Less product experience
Low level of interest High level of interest
Confidence in decision Lack of confidence

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 Evoked Set

Group of brands resulting from an

information search, from which a
buyer can choose.

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Evaluation of Alternatives
and Purchase
Evoked Set
Analyze
Analyze product
product attributes
attributes

Use
Use cutoff
cutoff criteria
criteria

Rank
Rank attributes
attributes by
by
importance
importance
Purchase!
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 Purchase

To buy
or not to buy...

Determines which attributes

are most important
in influencing a
consumer’s choice

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 Consumer Decision-Making Process

INDIVIDUAL
CULTURAL

SOCIAL
Need 1 Information 2 Evaluate 3 4
Purchase
Recognition Search Alternatives

PSYCHOLOGICAL

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Postpurchase Behavior

Explain the consumer’s

postpurchase evaluation
process.

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Cognitive Dissonance

Inner tension
that a consumer experiences after
recognizing an inconsistency
between behavior and values or
opinions.

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Postpurchase Behavior
Consumers can reduce dissonance by:
• Seeking information that reinforces positive
ideas about the purchase

• Avoiding information that contradicts the

purchase decision

• Revoking the original decision by returning

the product
Marketers can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Service during and after the sale

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Consumer Buying Decisions and
Consumer Involvement

Routine
Routine Limited
Limited Extensive
Extensive
Response
Response Decision
Decision Decision
Decision
Behavior
Behavior Making
Making Making
Making

Less More
Involvement Involvement

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 Five Factors of Consumer
Involvement

1.
1. Level
Level of
of consumer
consumer involvement
involvement

2.
2. Length
Length of
of time
time to
to make
make decision
decision

3.
3. Cost
Cost of
of good
good or
or service
service

4.
4. Degree
Degree of
of information
information search
search

5.
5. Number
Number of
of alternatives
alternatives considered
considered

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Continuum of Consumer Buying
Decisions

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Routine Response Behavior
• Little involvement in selection process

• Frequently purchased low cost goods

• May stick with one brand

• Buy first/evaluate later

• Quick decision

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 Limited Decision Making

• Low levels of involvement

• Low to moderate cost goods

• Evaluation of a few alternative

brands

• Short to moderate time to decide

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 Extensive Decision Making
• High levels of involvement

• High cost goods

• Evaluation of many brands

• Long time to decide

• May experience cognitive dissonance

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 Factors Determining
the Level of Consumer
Involvement
Previous
Previous Experience
Experience

Interest
Interest

Perceived
Perceived Risk
Risk of
of Negative
Negative
Consequences
Consequences

Situation
Situation

Social
Social Visibility
Visibility
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 Marketing Implications of
Involvement

High-involvement
High-involvement Extensive
Extensiveand
andinformative
informative
purchases
purchases require:
require: promotion
promotionto
totarget
target market
market

In-store
In-storepromotion,
promotion,
eye-catching
eye-catchingpackage
package
Low-involvement
Low-involvement design,
design,and
andgood
gooddisplays.
displays.
purchases
purchases require:
require: Coupons,
Coupons,cents-off,
cents-off,
2-for-1
2-for-1offers
offers

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 Factors Influencing Buying
Decisions

Cultural Social
Factors Factors
CONSUMER BUY /
DECISION-
MAKING DON’T BUY
PROCESS
Psycho-
Individual logical
Factors Factors

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 Cultural Influences on
Consumer Buying Decisions

Identify and understand

the cultural factors
that affect consumer
buying decisions.

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 Culture

Sets of values, norms,

attitudes, and other meaningful
symbols that shape human
behavior and the artifacts, or
products, of that behavior as
they are transmitted from one
generation to the next.

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Components of Culture
Values
Values

Language
Language

Myths
Myths

Customs
Customs

Rituals
Rituals

Laws
Laws

Material
Material artifacts
artifacts
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Culture is. . .

Pervasive
Pervasive

Functional
Functional

Learned
Learned

Dynamic
Dynamic

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 Value

Enduring belief that a

specific mode of conduct is
personally or socially
preferable to another mode
of conduct.

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Core American Values

Success
Success

Materialism
Materialism

Freedom
Freedom

Progress
Progress

Youth
Youth

Capitalism
Capitalism
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 Subculture

Subculture- A homogeneous
group of people who share
elements of the overall culture
as well as unique elements of
their own group.

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 Social Class

A group of people in a society

who are considered nearly
equal in status or community
esteem, who regularly socialize
among themselves both formally
and informally, and who share
behavioral norms.

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Social Class Measurements
Occupation
Occupation

Income
Income

Education
Education

Wealth
Wealth

Other
Other Variables
Variables
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The Impact of Social Class on
Marketing

1. Indicates which medium to use

for advertising

2. Helps determine the best

distribution for products

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 Social Influences on
Consumer Buying Decisions

Identify and understand

the social factors that affect
consumer buying decisions.

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Social Influences

Reference
Reference
Groups
Groups

Opinion
Opinion
Leaders
Leaders

Family
Family
Members
Members

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 Reference Group

A group in society that

influences an individual’s
purchasing behavior.

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 Reference Groups

Primary

Direct
Secondary
Reference
Groups
Aspirational

Indirect
Nonaspirational

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 Influences of Reference
Groups
1. They serve as information
sources and influence
perceptions.

2. They affect an individual’s

aspiration levels.

3. Their norms either constrain or

stimulate consumer behavior.

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 Opinion Leaders

An individual who influences

the opinion of others.

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 Opinion Leaders
Marketers are looking to Web logs,
or blogs, to find opinion leaders

 Teenagers
 Movie stars
 Sports figures
 Celebrities

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 Family

Purchase Process Roles in the Family

 Initiators

 Influencers
 Decision Makers
 Purchasers
 Consumers

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Social Factors

Direct Indirect
Reference
Groups Primary Secondary Aspirational Nonaspirational

Opinion People
Celebrities
Leaders you know

Socialization Process
Family Initiators Decision Makers Consumers
Influencers Purchasers

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 Individual Influences on
Consumer Buying Decisions

Identify and understand

the individual factors
that affect
consumer buying decisions.

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Individual Influences

Personality
Personality
Age
Age
Gender
Gender Self-Concept
Self-Concept
Life
Life Cycle
Cycle Lifestyle
Lifestyle

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Psychological Influences on
Consumer Buying Decisions

Identify and understand the

psychological factors that affect
consumer buying decisions.

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Psychological Influences

Perception
Perception

Motivation
Motivation

Learning
Learning

Beliefs
Beliefs &
& Attitudes
Attitudes

Copyright 2012 by Cengage Learning Inc. All Rights Reserved

 Perception

The process by which people

select, organize, and interpret
stimuli into a meaningful
and coherent picture.

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 Perception

Selective
Selective Selective
Selective
Exposure
Exposure Distortion
Distortion

Selective
Selective
Retention
Retention
 Perception

Selective
Selective Consumer
Consumer notices
notices certain
certain stimuli
stimuli
Exposure
Exposure and
and ignores
ignores others
others

Consumer
Consumer changes
changes oror distorts
distorts
Selective
Selective information
information that
that conflicts
conflicts
Distortion
Distortion with
with feelings
feelings or
or beliefs
beliefs

Consumer
Consumer remembers
remembers only
only
Selective
Selective that
that information
information that
that
Retention
Retention supports
supports personal
personal beliefs
beliefs

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 Motivation

Maslow’s Hierarchy of Needs-

A method of classifying human
needs and motivations into five
categories in ascending order
of importance.

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Maslow’s Hierarchy of Needs

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 Types of Learning

An
An experience
experience changes
changes
Experiential
Experiential behavior
behavior

Not
Not learned
learned through
through direct
direct
Conceptual
Conceptual experience
experience

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Beliefs and Attitudes

An organized pattern of
Belief knowledge that an individual
Belief
holds as true about his or her
world.

A learned tendency to
Attitude
Attitude respond consistently toward a
given object.

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 Psychological Factors

Selective Exposure
Perception
Selective Retention Selective Exposure

Needs
Motivation Self-
Psychological Safety Social Esteem
Actualization

Stimulus Stimulus
Learning Generalization Discrimination

Changing Changing
Beliefs & Adding
Beliefs about Importance of
Attitudes New Beliefs
Attributes Beliefs
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