Understanding Consumer
Behaviour
Jobber chap. 4
Understanding consumers - the key questions
Who is
important?
What are
their choice
criteria?
How do
they buy?
Customers
Where do
they buy?
When do
they buy?
2
The Decision-making Unit
1. Initiator.
2. Influencer.
3. Decider.
4. Buyer.
5. User.
6. Gatekeeper.
Exercise
• Try to define the decision making unit when
consumers buy the following products:
– New car
– Clothes
– Tooth paste
– Motor bike
– Food
– Bicycle helmet
Centreparcs
Centreparcs
target their
adverts at
mothers who
may act as
‘initiators’ in
the decision to
purchase a
family holiday.
11
Virgin Media
Virgin Media targets
its advertising at all
members of the
household
decision-making
unit,
with the customer
benefit
of multiple online
usage.
The consumer decision-making process
Need
recognition/problem
awareness
Information
search
Evaluation
of alternatives
Purchase
Post-purchase
evaluation of
alternatives
9
Special K
Kellogg’s Special K
fulfills the needs of
their customers for a
tasty low fat diet.
4
Evaluation and purchase models
High involvement: the Fishbein and Ajzen model of reasoned action
Personal
beliefs
Attitudes
Purchase
intentions
Normative
beliefs
Purchase
Subjective
norms
Low involvement: the Ehrenberg and Goodhart repeat purchase model
Awareness
Trial
Repeat
Purchase
3
Choice criteria used when evaluating
alternatives
Technical
Reliability
Durability
Performance
Style/looks
Comfort
Delivery
Convenience
Taste
Social
Status
Social belonging
Convention
Fashion
Economic
Price
Value for money
Running costs
Residual value
Life-style costs
Personal
Self-image
Risk reduction
Ethics
Emotions
5
SEBO
The
importance
of reliability
is stressed in
this advert
for the
SEBO Felix
vacuum
cleaner.
12
Mercedes
Mercedes recognises
the importance of
experiential
consumption in this
advertisement for its
cars.
6
Audi
Audi advertises
both the fuel
efficiency and
responsible
credentials of its TT
TDI model.
Influences on consumer purchasing
behaviour
The buying
situation
Personal
influences
•
•
•
•
•
•
information
processing
motivation Consumer
beliefs and
attitudes
personality
lifestyle
lifecycle
Social
influences
•
•
•
•
culture
social class
geodemographics
reference
groups
7
Determinants of the extent of
problem solving
Self-image
Perceived risk
Level of
involvement
Social factors
Hedonism
Differentiation
and number
of alternatives
Extent of
problem
solving
Time
pressure
8
The consumer decision-making process and level
of purchase involvement
Stage
Low Involvement
High Involvement
Need recognition/
problem awareness
Minor
Major, personally
important
Information search
Limited search
Extensive search
Evaluation of
alternatives and the
purchase
Few alternatives
evaluated on few
choice criteria
Many alternatives
evaluated on many
choice criteria
Post-purchase
evaluation of the
decision
Limited evaluation
Extensive evaluation
including media search
10
Rolex
Rolex
watches:
a symbol of
achievement
and its
rewards
Maslow’s hierarchy of needs
Lifecycle stages
Middle-aged
divorced no
children
Middle-aged
married no
children
Young
divorced no
children
At home
single
Young
couple no
children
On own
young
Young
parents
Middleaged
parents
Empty
nester
married
working
Young
divorced
with
children
M-aged
divorced
with
children
M-aged
divorced
no dep’nt
children
Empty
nester
married
retired
Solitary
retired
On own
middle-aged
13
Social class categorization