CONSUMER

BEHAVIOUR
 CB is the study of human responses to products , services ,and
the marketing of products & services.

 CB is like fishing
 The study of consumers helps firms and organizations
improve their marketing strategies by understanding issues
such as……………

 The psychology of how consumers think, feel, reason, and

select between different alternatives (e.g., brands, products);

 The psychology of how the consumer is influenced by his or

her environment (e.g., culture, family, signs, media);

 The behavior of consumers while shopping or making other

marketing decisions;
 Limitations in consumer knowledge or information
processing abilities influence decisions and marketing
outcome;

 How consumer motivation and decision strategies differ

between products that differ in their level of importance
or interest that they entail for the consumer; and

 How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively
reach the consumer.
  Decision making

 decision processes are the decision making

processes undertaken by consumers in regard to a
potential market transaction before, during, and after
the purchase of a product or service
  General model
 A general model of the decision process consists of
the following steps:
 Problem recognition;
 Gathering Information
 Alternative education
 Purchase decision
 Post-purchase behavior/buyer's remorse (cognitive
dissonance)
 Information search and decision making. Consumers
engage in both internal and external information search.
 Need Recognition

Information Search

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

Post purchase Behavior

 Need Recognition

Result of an imbalance
between actual and
desired states.
 Marketing helps Internal Stimuli
consumers
and
recognize an
imbalance between
External Stimuli
present status and
preferred state Preferred State

Present Status
 Stimulus

Any unit of
input affecting
one or more of
the five senses:
sight
smell
taste
touch
hearing
 Want

Recognition
of an
unfulfilled
need and a
product (or
attribute or
feature)
that will
satisfy it.
Recognition of an unfulfilled need and
a product
(or attribute or feature) that will satisfy
 When a current product isn’t
it. performing properly

 When the consumer is running

out of an product

 When another product seems

superior to the one currently used
Information Searches

Process of recalling
past information
stored
Internal in the memory.

Process of seeking
External information in the
outside
environment.
Internal Information Search

 Recall information in memory

External Information search

 Seek information in outside

environment

 Non-marketing controlled
 Marketing controlled
  External Information Searches

Need Less Need More

Information Information

Less Risk More Risk

More knowledge Less knowledge
More product Less product
experience experience
Low level of interest High level of interest
 Evoked Set

Group of brands, resulting from an

information search, from which a
buyer can choose.
 Evaluation of Alternatives
Evoked Set

Evaluation of Products Analyze

product attributes

Rank attributes by importance

Purchase!
 Inert set: Does not see any specific
advantage. Not + or –ve

 Inept set: set of brands that have

been rejected
  Purchase

To buy Determines which attributes

or not to buy... are most important
in influencing a
consumer’s choice
 Explain the consumer’s Post purchase evaluation process.
Cognitive
Dissonance
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values or
opinions.
 Postpurchase Behavior

?
Cognitive Dissonance

Can minimize through:

Effective Communication
Did I make a good decision? Follow-up
Guarantees
Did I buy the right product? Warranties

Did I get a good value?

consumer buying decisions and discuss the significance
of consumer involvement.
Types of Consumer Buying Decisions

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

Less More
Involvement Involvement
Five Factors influencing Decisions

1. Level of consumer involvement

2.Length of time to make decision
3.Cost of good or service
4. Degree of information search
5. Number of alternatives considered
 Routine Response Behavior( RRB)

 Little involvement in selection

process
 Frequently purchased low cost
goods
 May stick with one brand
 Buy first/evaluate later
 Quick decision
Limited Decision Making (Limited problem solving
LPS)
 Low levels of involvement

 Low to moderate cost goods

 Evaluation of a few alternative

brands

 Short to moderate time to decide

  Extensive Decision Making
(Extensive problem solving EPS)

 High levels of involvement

 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance
 Level of Involvement

Previous
Previous
Experience
Experience Interest
Interest

Factors
Factors Perceived
Perceived Risk
Risk of
of
Determining
Determining Negative
Negative
Level
Level of
of Consequences
Consequences
Involvement
Involvement
Situation
Situation
Social
Social Visibility
Visibility
 Marketing Implications of Involvement

High-involvement purchases
require:
Low-involvement
extensive promotion to purchases
target market and
require: in-store
good advertisement
promotion and
eye-catching
package design
 Factors Influencing Buying Decisions

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

Set 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.
 Cultural Influences on Buying Decisions

Values
Values

Language
Language

Myths
Myths

Customs
Customs

Components Rituals
Rituals
Components of
of
American
American Laws
Laws
Culture
Culture
Material
Material Artifacts
Artifacts
 Having the quality or tendency to
Culture is... pervade or permeate: the pervasive odor
of garlic

 Culture is...
Pervasive
Pervasive

Functional
Functional

Learned
Learned

Dynamic
Dynamic
 Value

Enduring belief that a

specific mode of conduct
is personally or socially
preferable to another
mode of conduct.
 Core American Values

Success
Success

Materialism
Materialism

Freedom
Freedom

Progress
Progress
Core
Core
American
American Youth
Youth
Values
Values
Capitalism
Capitalism
 Global Language Blunders

 Chevrolet’s “Nova” translated to “No Go”

 Coors “Turn it Loose” became

“Suffer from Diarrhea”

 Toyota’s MR2 sounded like a

swearword in French

 Coca-Cola in Chinese means

“bite the wax tadpole”
 social factors that affect consumer buying
decisions
 Social Influences
Social
Social Influences
Influences on
on
Buying
Buying Decisions
Decisions

Reference
Reference Family
Family Members
Members
Groups
Groups

Opinion
Opinion Leaders
Leaders
  Reference Group

up in society that influences an individual’s

asing behavior.
 Primary

Direct
Secondary
Types of
Reference
Groups
Aspirational

Indirect

Non-aspirational
 Implications of Reference Groups

 They serve as information sources

and influence perceptions

 They affect an individual’s

aspiration levels

 Their norms either constrain or

stimulate consumer behavior
  Opinion Leaders
An individual who influences the opinion
of others.
 Family

 Instigators
 Influencers
Purchase
Purchase Roles
Roles  Decision-Makers
in
in the
the Family
Family
 Purchasers
 Consumers
Children
Influence
Purchase
Decisions
 individual factors that affect
consumer buying decisions.
Individual Influences

Individual
Individual
Influences
Influences

Personality
Personality
Gender
Gender Self-Concept
Self-Concept
Lifestyle
Lifestyle
Age
Age
Family
Family Life
Life Cycle
Cycle
psychological factors that affect consumer
buying decisions.
 Psychological Influences

Perception
Perception

Motivation
Motivation

Learning
Learning
Psychological
Psychological
Influences
Influences on
on
Buying
Buying Decisions
Decisions Beliefs
Beliefs &
& Attitudes
Attitudes
 Perception

Process by which
people select, organize,
and interpret stimuli
into meaningful and
coherent picture.
 Selective
 Selective
 Exposure
Selective
Selective
 Exposure
Distortion
Distortion

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

Consumer
Consumer changes
changes or
or 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
 A Consumer’s Selective Exposure

Exposure
Exposure to
to over
over 250
250
advertisement
advertisement messages
messages per
per day
day

Notices only
11 to 20 ads
 Marketing Implications of Perception

 Important attributes
 Higher price
 Brand names
 Quality and reliability
 Threshold level of perception
 Product changes
 Maslow’s Hierarchy of Needs
Maslow’s
Maslow’s Self-
Hierarchy
Hierarchyof
Needs
Needs
of Actualization

Esteem

Social

Safety

Physiological
 Learning

A process that creates changes in

behavior, immediate or expected, through
experience and practice.
 Types of Learning

Types
Types of
of Description
Description
Learning
Learning

Experiential
Experiential An
An experience
experience changes
changes behavior
behavior

Not
Not learned
learned through
through direct
direct
Conceptual
Conceptual experience
experience
  Stimulus Generalization

A form of learning that occurs when one

response is extended to a second stimulus
similar to the first.
 Beliefs and Attitudes

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

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