1
Opening Slide
MKT300
Fundamentals of Marketing
Module 6:
Consumer Behavior
Module 7 Learning Objectives
1. Define consumer behavior.
2. Introduce the three roles consumers play
3.
4.
when purchasing goods and services.
Explain each of the steps in the
consumer buying decision process.
Identify the five factors that influence the
consumer buying decision process.
1.
2.
3.
4.
5.
Types of purchase decisions
Psychological factors
Social factors
Situational factors
Technological factors
1. Consumer Behavior Defined
The Roles of Consumers and the
Consumer Buying Decision Process
• Consumer behavior is the process
by which individuals or groups
select, use, or dispose of goods,
services, ideas, or experiences to
satisfy needs and wants.
2. The Three Roles of Consumers
Three Roles of Consumers
Three Roles of Consumers
• Users- consumers who are
concerned about product features
and how successfully the product
can be used.
Three Roles of Consumers
• Payers- consumers who pay for a
product and are concerned with the
price of the product and the inherent
financial considerations.
Three Roles of Consumers
• Buyers- consumers who are focused
on the logistics of purchasing the
product.
3. Consumer Buying Decision
Process
The Consumer Buying
Decision Process
•
The consumer buying decision process is
a five-stage process that outlines how
consumers make buying decisions.
•
addresses decisions about





whether to purchase,
what to purchase,
when to purchase,
from whom to purchase,
and how to pay for it.
Step 1: Problem Recognition
Consumer Buying Decision Process
Problem
Recognition
Information
Search
Alternative
Evaluation
Post Purchase
Purchase
Evaluation
Step 1: Problem Recognition
•
Problem recognition occurs when
consumers realize that they need to do
something to get back to a normal state of
comfort.
Consumer Needs and Wants
•
Needs are unsatisfactory conditions of the
consumer that prompt him or her to an
action that will make the condition better.
•
Wants are desires to obtain more
satisfaction than is absolutely necessary
to improve an unsatisfactory condition.
Types of Problems:
Routine and Latent
• Problem recognition can occur due
to either an

internal stimulus


Biological cues
external stimulus

Commercial, social cues
Step 2: Information Search
Consumer Buying Decision Process
Problem
Recognition
Information
Search
Alternative
Evaluation
Post Purchase
Purchase
Evaluation
Step 2: Information Search
•
Consumers consider only a select subset of
brands, organized as follows:



The awareness set consists of brands of which a
consumer is aware.
An evoked set consists of the brands in a product
category that the consumer remembers at the time of
decision making.
Of the brands in the evoked set, those considered unfit
are eliminated right away. The remaining brands are
termed the consideration set.
Step 2: Information Search
• Different sources of information are
used in the information search
process:

Marketer source

Nonmarketer source
Step 2: Information Search
• Amount of information collected is
dependent upon perceived risk

Types of risk





Economic
Performance
Safety
Social
Psychological
Step 3: Alternative Evaluation
Consumer Buying Decision Process
Problem
Recognition
Information
Search
Alternative
Evaluation
Post Purchase
Purchase
Evaluation
Step 3: Alternative Evaluation
•
The process and steps involved in
evaluating products are called choice
models:
Compensatory
Noncompensatory
Step 3: Alternative Evaluation
•
Compensatory- the consumer arrives at a choice
by considering all of the attributes of a product
and mentally trading off the alternative’s
perceived weakness on one or more attributes
for its perceived strength on other attributes.
Compensatory
Noncompensatory
Step 3: Alternative Evaluation
•
•
•
•
Conjunctive model
Disjunctive model
Lexicographic model
Elimination model
Compensatory
Noncompensatory
Step 4: Purchase
Problem
Recognition
Information
Search
Alternative
Evaluation
Post Purchase
Purchase
Evaluation
Step 4: Purchase
• Store Choice

Various types of retailers
• Nonstore Choice



Online
Catalogs
Garage sale
Step 5: Post-purchase Evaluations
Consumer Buying Decision Process
Problem
Information
Recognition
Search
Alternative
Evaluation
Purchase
Post
Purchase
Evaluation
Step 5: Post-purchase Evaluations
•
•
Cognitive dissonance- the doubt and
regret the buyer may feel about the
purchase choice.
Following a satisfactory or dissatisfactory
experience, consumers have three
possible responses:

Exit

Voice

Retaliation
4. Factors Influencing the Consumer
Buying Decision Process
Factors Influencing the Consumer
Buying Decision Process
Consumer Buying Decision Process
Problem
Recognition
Information
Search
Type of Decision
•Routine
•Limited
•Extended
Alternative
Evaluation
Post Purchase
Purchase
Evaluation
Types of Consumer Decision
Making
Routine
Limited
Extended
Factors Influencing the Consumer
Buying Decision Process
•Perception
•Learning
Psychological
•Motivation
Factors
•Attitude
•Psychographics
Consumer Buying Decision Process
Problem
Information
Alternative
Recognition
Search
Evaluation
Type of Decision
•Routine
•Limited
•Extended
Purchase
Post
Purchase
Evaluation
Psychological Bases of
Consumer Behavior
Perception
Learning
Motivation
Attitude
Psychographics
Perception
Perception
• Perception is the process by which an
individual senses, organizes, and
interprets the information he or she
receives from the environment.
Individual Perceptions Vary
• Finished Files are the
Result of Years of
Scientific Study Combined
with the Experience of Years
Perception
Perception
• Selective attention
• Selective distortion
• Perceptual threshold (JND)
Learning
Learning
• Learning is a change in the content of
long-term memory.
Learning
Learning
• Classical conditioning

pairing
• Instrumental conditioning

rewards
• Modeling

reference groups
Motivation
Motivation
•
Motivation is the state of drive or arousal
that drives behavior toward a goal-object.
•
Two components:
1.
2.
Drive or arousal
A goal object
Attitude
Attitude
•
Gordon Allport defines attitude as
“learned predispositions to respond to an
object or class of objects in a consistently
favorable or unfavorable way.”
1.
2.
3.
Attitudes are learned.
Attitudes are predispositions.
Attitudes cause consistent response.
Psychographics
Psychographics
•
Psychographics are characteristics of
individuals that identify them in terms of
their psychological and behavioral makeup.
•
Three components:
1.
2.
3.
Values
Self-concept
Lifestyles
Consumer Motivation
VALS2
Groupings
Factors Influencing the Consumer
Buying Decision Process
•Perception
•Learning
Psychological
•Motivation
•Attitude
l
Factors
•Psychographics
Consumer Buying Decision Process
Problem
Recognition
Information
Search
Type of Decision
Alternative
Post Purchase
Purchase
Evaluation
•Reference Groups
•Routine
•Family and Household
•Limited
•Culture and Subculture
•Extended
•Technology
Social
Factors
Evaluation
Social Factors of
Consumer Behavior
• All the formal and informal groups
that affect a consumer’s purchase
decision are called reference groups.
• Three types:



Membership groups
Aspirational groups
Dissociative groups
Social Bases of
Consumer Behavior
•
Membership groups- groups to which
the consumer belongs.
•
Aspirational groups- groups that a
consumer wants to belong to.
•
Dissociative groups- groups that
consumers do not want to be associated
with.
Family and Household
•
Household decision making occurs when
significant decisions are made by
individuals jointly with other members of
their household, and for joint use by the
members of the household.

Children have buying power


4-12 year olds spend $35 billion of their own money
Children often act as influencers


Influence the spending of $670 billion
2005 U.S. Military budget is $417.5 billion
Culture and Subculture
• Some of the essential components
of culture are:

values, language, customs, rituals,
arts, and literature.
Factors Influencing the Consumer
Buying Decision Process
•Perception
•Learning
Psychological
•Motivation
•Attitude
Factors
Technological
Factors
• Web-based capabilities
•Psychographics
Consumer Buying Decision Process
Problem
Recognition
Information
Search
Type of Decision
Alternative
Post Purchase
Purchase
Evaluation
•Reference Groups
•Routine
•Family and Household
•Limited
•Culture and Subculture
•Extended
•Technology
Social
Factors
Evaluation
Technological Bases of
Consumer Behavior
Web access and Problem
Recognition
Enhanced Search
Capabilities
Expanded Evaluation
Capabilities
Alternative Purchase
Options
Enriched Post Purchase
Options
Factors Influencing the Consumer
Buying Decision Process
•Perception
•Learning
Psychological
•Motivation
•Attitude
Factors
Technological
Factors
• Web-based capabilities
•Psychographics
Situational Factors
•Physical surroundings
•Time
•Mood
Consumer Buying Decision Process
Problem
Recognition
Information
Search
Type of Decision
Alternative
Post Purchase
Purchase
Evaluation
•Reference Groups
•Routine
•Family and Household
•Limited
•Culture and Subculture
•Extended
•Technology
Social
Factors
Evaluation
Situational Bases of
Consumer Behavior
Physical surroundings
Time
Consumer moods
Physical Surroundings
Physical surroundings
Time
Consumer moods
•
A consumer
who is
comfortable is
likely to take
more time to
shop and
spend more
money at the
store.
Time
•
Physical surroundings
Time
Consumer moods
Time is an
important
resource that
consumers have
and it plays a
very important
role in different
phases of the
consumer
decision making
process.
Mood
•
When an emotion is
less intense and
transitory, it is
termed a mood.
•
Mood states have
consequences in
terms of favorable
or unfavorable
consumer response
to marketing
efforts.
Physical surroundings
Time
Consumer moods
Module 6 Learning Objectives
1. Defined consumer behavior.
2. Introduced the three roles consumers
3.
4.
play when purchasing goods and
services.
Explained each of the steps in the
consumer buying decision process.
Identified the five factors that influence
the consumer buying decision process.
1.
2.
3.
4.
5.
Types of purchase decisions
Psychological factors
Social factors
Situational factors
Technological factors