Consumer Behavior
By Suwattana Sawatasuk
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
product use
• How - consumers make purchase decisions
- consumers use and dispose of products
Importance of Understanding
Consumer Behavior
• Consumer product & service preferences are
constantly changing
• In order to address this constant state of flux
and to create a proper marketing mix for a welldefined market, marketing managers must have
a thorough knowledge of consumer behavior
Types of Buying Decisions
1. Extended problem solving: occurs when
consumers devote considerable time and effort to
analyze alternatives (high risk)
2. Limited problem solving: occurs when a purchase
decision calls for a moderate amount of effort and
time. (moderate risk)
▫
Impulse buying: buying decision made by customer
on spot when they see merchandise
3. Habitual decision making: occurs when
consumers engage with little conscious effort
(low risk)
Consumer Decision-Making Process
• 5-step process used by consumers when buying
goods or services
1
2
3
4
5
Need
Recognition
Information
Search
Evaluation
of
Alternatives
Purchase
Decision
Postpurchase
Behavior
Consumer Decision-Making Process
1. Need Recognition: result of an imbalance
between actual and desired states
▫
▫
External Stimulus e.g. when you have seen TV
commercials for a new sport car and wanted to
buy it
Internal Stimulus e.g. when you hear your
stomach growl and then realize that you are
hungry
Materials Perceive as Functionally
Superior
▫ Gore-Tex is a waterproof/breathable fabric, and
a registered trademark of W.L. Gore & Associates.
▫ Thinsulate is a trademark of the 3M
Corporation, for a type of synthetic fiber thermal
insulation used in clothing.
▫ Polartec is a trademark for a fabric innovation
for performance apparel and accessories e.g. odor
resistance, durable water repellency, sun protect
technology, and flame resistance.
Luxury Brands Fulfill Consumer
Psychological Needs
Consumer Decision-Making Process
(con’t)
1. Need Recognition
2. Information Search: after recognizing a
need or want, consumer search for information
about the various alternatives available to
satisfy it
▫
▫
Internal information search: the process of
recalling past information stored in the memory
External information search: the process of
seeking information in the outside environment
Search for Options
Which one will I choose for my hair…
Consumer Decision-Making Process
(con’t)
1. Need Recognition
2. Information Search
3. Evaluation of Alternatives:
▫
Attribute sets = sets of alternative choices



Universal sets = all possible choices for the product category
Retrieval sets = brands/stores can be readily brought forth
from memory
Evoked sets = alternative brands/stores consumers states
he/she would consider when making purchase decision
Consumer Decision-Making Process
(con’t)
1. Need Recognition
2. Information Search
3. Evaluation of Alternatives (con’t):
1. Determinant attributes = product/service features
that are important to buyer and other choices are
perceived to differ
2. Consumer decision rules = set of criteria consumers
use to quickly & efficiently select from among
alternatives
Consumer Decision-Making Process
(con’t)
1. Need Recognition
2. Information Search
3. Evaluation of Alternatives (con’t):
2. Consumer decision rules (con’t)



Compensatory = good characteristics compensate for bad
characteristics when consumer evaluating alternatives
(based on overall features of concerns)
Noncompensatory = consumers choose product/service on
basis of subset of its characteristics, regardless of values of
other attributes (based on specific feature of concern)
Decision heuristics = consumers choose based on their self
preferences e.g. price, brand, or product presentation
Consumer Decision-Making Process
(con’t)
1.
2.
3.
4.
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision:
consumer purchase product/service that they
believe provide them with the best value
Consumer Decision-Making Process
(con’t)
1.
2.
3.
4.
5.
1.
2.
3.
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Evaluation:
3 possible positive postpurchase outcomes:
Increased customer satisfaction
Decreased postpurchase cognitive dissonance
(buyers’ disappointment or discomfort)
Increased loyalty
The negative outcomes can be no repeated purchase or
recommend product to others and more serious can be
negative word of mouth and rumors
Summary: Consumer Decision-Making
Consumers take
Process
Consumer uses
further action after
Consumer recognizes
a problem or need.
information to evaluate
alternative brands in the
choice set.
1
3
Need
Recognition
Information
Search
5
Evaluation
of
Alternatives
2
Consumer is aroused to
search for more information;
the consumer may simply
have heightened attention or
may go into an active
information search.
purchase, based on
their satisfaction or
dissatisfaction.
Purchase
Decision
4
The buyer’s decision
about which brand to
purchase.
Postpurchase
Behavior
Factors Influencing the Consumer
Decision Process
Psychological
Factors
Marketing Mix
(4Ps)
Social Factors
Situational
Factors
VS.
Psychological Factors
 Motive (drive): a need or want that strong enough to cause the
person seek satisfaction
 Attitude: a person’s consistently favorable or unfavorable
evaluations, feelings, and tendencies toward an object or idea
▫ Example = Your attitude toward Tops supermarket is better than BigC
supercenter as Tops offers more variety of imported food ingredients and
snacks that you like.
 Perception: the process by which we select, organize, and
interpret info. to form a meaningful picture of the world.
▫ Example = You perceive that shopping in Tops supermarket is more
expensive, in most items, than shopping in BigC supercenter.
 Learning: changes in an individual’s behavior arising from
experience
Maslow Hierarchy of Needs
lowest
highest
Physiological needs
basic to survival
Safety needs
self-preservation
physical well-being
Social needs
love
friendship
achievement
status
prestige
self-respect
Self-actualization
(personal) needs
personal fulfillment
Social Factors
 Family: family-members needs/wants
 Reference Groups: one or more persons whom individual uses as a basis for
comparison regarding beliefs, feelings, friends, co-workers, or famous people
the consumer would like to emulate
▫ Opinion leader = person within ref. group who exerts social influence
on others by his/her special skills, knowledge, personality = brand ambassadors
 Culture: the shared meanings, beliefs, morals, values, and customs of group
of people influence consumer behavior
Subculture = a group of people with shared value systems based on common life
experiences and situations
 Social Class: relatively permanent and ordered divisions in a society whose
members share similar values, interests, and behaviors. It can be determined
by many factors: income, occupation, education, wealth, and etc.
▫ It can be categorized by Social Economic Status (SES) as examples:
 Upper Class, Middle Class, and Lower Class
 Upper-Upper, Lower-Upper, Upper-Middle, Middle class, Working Class, Upper-Lower,
Lower-Lower
 Thailand: A (Upper), B (Upper-Middle), C (Middle Class), D (Lower Class)
Situational Factors
Purchase situation: the purpose of purchase (for
what, whom)
Shopping situation: store atmosphere, salespeople,
crowding, in-store demonstration, promotions,
packaging
Temporal state: state of mind at any particular time or
mood swing
Personal Factors
Age & life-cycle stage
•

Occupation
Economic situation
Lifestyle: a person’s pattern of living as expressed in his/her
activities, interests, and opinion
Personality & self concept i.e. honest, intelligent,
imaginative, up-to-date, successful, upper class, outdoorsy, reliable,
and etc.