The Consumer Audience

Part 2: Planning and Strategy

Chapter 5
How Consumer Behavior Works?

Consumer behavior
- Describes how individuals or groups
select, purchase, use, or dispose of
products – as well as describing the needs
that motivate these behaviors
Zomato's spunky Twitter posts
Who is the Consumer Audience?

Consumer
People who buy or use products to
satisfy their needs and wants
Customers
People who buy a particular brand or
patronize a specific store
Purchaser
User
Influences on Consumer’s Buying
Decision Process

Social Cultural Behavioral Influences Psychological

Influences Usage Influence
Innovation& Adoption

•Culture Perception
•Social Class Motivation
•Reference Groups Attitudes and
Market Segment
•Family values
•Demographic Personality
Psychographics
Target
Audience
 Cultural and Social Influences

Culture Tangible items: art,

literature, building,
 a way of life furniture,food, clothes,
 Learned and passed on etc.
from one gen. to Intangible concept:
another history, knowledge,
moral, tradition,
 Norm language etc.
 Core value: a sense of
belonging, excitement, fun &
enjoyment, warm relationships,
self-fulfillment, respect from
others, a sense of
accomplishment, security, self-
respect

Advertiser matches the core value and the ad appeal.

Culture
 Set of values, ideas, attitudes, beliefs, norms,
customs, rituals & symbols learned & transmitted
from generation to generation over time

Abstinence vs. Individualism

materialism vs. freedom

Joint family vs.

Ramayan vs.
nuclear family
K-serials
Social factors
Reference • Groups used as a yardstick in forming
one’s thinking, feeling, values & behaviour
groups • Can be aspiration or dissociative groups

• One of the strongest influences on an

individual’s buying behaviour
Family • Often a single buying unit, with 1 or 2
prime decision-makers

Role & • Products are often chosen to

status in a communicate one’s role & status in a
society
group
Buying roles in a family/ purchase unit

Initiator

User Influencer

Buyer

Buyer Decider
 Personal factors
 A buyer’s
demographics &
psychographics,
such as age, stage in
life cycle,
occupation,
economic situation,
lifestyle, personality
& self-concept, etc.
also affect purchase
decisions
 Psychological factors

Motivation • Makes a person move towards goal fulfillment

• The process by which a person selects, organizes

Perception & interprets information to create a meaningful
picture of the world

• The process by which individuals acquire the purchase &

Learning consumption knowledge & experience to apply to future
related behaviour

• Belief: Descriptive thought regarding the truth or validity

Beliefs & of a proposition
• Attitude: Favourable or unfavourable dispositions towards
Attitudes something
Maslow’s hierarchy of needs
 Herzberg’s two-factor theory

Motivators

Motivation
to act

Hygiene
factors
Perception

Selective
attention

Selective
comprehension

Selective
retention
 Learning
Behavioural theories Cognitive theories
• Learning is a result of • Learning occurs from a
action change in mental state
• Drive: Strong internal • Learning relates new
stimulus propelling information to previously
action learned information
• Cues: Minor stimuli • Cognitive processes such
determining when, where as perception, motivation,
& how a person responds beliefs & attitudes, etc.
• Reinforcement can be influence behaviour
positive or negative
• Effect of environmental
• Future responses can be
factors can be minimized
by generalization or
discrimination
 Classical conditioning

Unconditioned Unconditioned
stimulus response

Neutral Original
Unconditione
d stimulus uncondition
stimulus ed response

Condition
Neutral
ed
stimulus
stimulus

Conditioned Conditioned
stimulus response
 Operant conditioning

Repeat
Stimulus Response Reward behaviour
more likely

Repeat
Stimulus Response Punishment behaviour
less likely
 Strategies to change consumer
attitudes

Changing consumer Adding a new attribute to

perceptions on the the attitude formation
importance of an attribute process

Changing or decreasing the

Changing or increasing the
rating of a belief regarding
rating of a belief regarding
an attribute for a
an imp attribute
competing brand
How do the following brands influence consumer
attitudes?
 Model of buyer behaviour

Marketing Other stimuli Buyer’s Buyer’s Buyer’s

stimuli • Economic characteristics decision decisions
• Political • Cultural process • Product choice
• Product • Social
• Technological • Problem • Brand choice
• Price • Cultural • Personal recognition • Dealer choice
• Place • Psychological • Information
• Purchase timing
search
• Promotion • Purchase
• Evaluation of
alternatives amount
• Purchase
decision
• Post-purchase
behaviour
 Model of consumer decision-
making

Post-
Problem Information Alternative Purchase
purchase
recognition search evaluation decision
evaluation

A. Stages in the consumer decision-making process

Attitude
Motivation Perception Integration Learning
formation

B. Relevant internal psychological processes

 Information search

• Past • Personal
Internal search

External search
experiences sources
• Knowledge • Commercial
regarding sources
alternatives • Public sources
• Personal
experience
 Quick Q!
• Which of the following is likely to have
the most influence on a consumer
wanting to purchase a luxury car?
a. Television
b. Print
c. Word-of-mouth
d. Internet
 Purchase decision

When to
• To buy or not to buy?

buy?

• Role of How to Purchase Where

unexpected pay? decision to buy?

situational factors

How
much to
buy?
 Post-purchase tasks

Managing
Managing Obtaining Regulating
post-
customer customer product
purchase
satisfaction feedback disposal…
dissonance