Consumer behaviour
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Model of Consumer Behavior
Characteristics Affecting Consumer Behavior
Types of Buying Decision Behavior
The Buyer Decision Process
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1 Model of Consumer Behavior
Model of Consumer Behavior
•The
central question for marketers is: How do consumers respond to
various marketing efforts the company might use?
•The
starting point is the stimulus-response model of buyer behavior
as shown in the model.
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1 Model of Consumer Behavior
Model of Buyer Behavior
Stimuli
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Black Box
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Responses
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1 Model of Consumer Behavior
Environmental stimuli
Marketing stimuli consist of the
four Ps: product, price, place,
promotion.
Other stimuli include major
forces and events in the buyer’s
environment: economic,
technological, political, and
cultural.
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1 Model of Consumer Behavior
Model of Consumer Behavior
The marketer wants to understand how the stimuli are changed into
responses inside the consumer’s “black box,” which has two parts.
a)The
buyer’s characteristics influence how he or she perceives and
reacts to the stimuli.
b)The
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buyer’s decision process itself affects the buyer’s behavior.
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2 Characteristics Affecting Consumer Behavior
Factors Influencing Consumer Behavior
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2 Characteristics Affecting Consumer Behavior
Culture
•Culture
is the broadest influence on consumers. We are rarely
aware of its influence until we travel to a foreign culture.
•Culture
reflects the learned values, perceptions, wants, and behavior
that stem from family and other important institutions.
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2 Characteristics Affecting Consumer Behavior
Marketers try to spot cultural shifts
For example, the cultural shift toward a
greater concern with health and fitness
has created a huge industry for such
services, exercise equipment and clothing,
more-natural foods, and a variety of
diets.
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2 Characteristics Affecting Consumer Behavior
Subculture
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•
Each culture contains smaller subcultures, or groups of people
with shared value systems based on common life experiences and
situations.
•
Subcultures include nationalities, religions, racial groups, and
geographic regions.
•
Many subcultures make up important market segments, and
marketers often design products and marketing programs tailored
to their needs.
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2 Characteristics Affecting Consumer Behavior
Social Class
•
Social classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests, and
behaviors
•
Measured by a combination of occupation, income, education,
wealth, and other variables
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2 Characteristics Affecting Consumer Behavior
Social Factors
Groups/Opinion Leaders
Family
Roles
Status
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2 Characteristics Affecting Consumer Behavior
Groups
Membership
Aspirational
Reference
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2 Characteristics Affecting Consumer Behavior
Membership Groups
Groups of which a
consumer is officially a
member.
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2 Characteristics Affecting Consumer Behavior
Aspirational Groups
Groups to which a
consumer is not a
member, but aspires
to join.
Which groups would
you like to join in the
future and how this
aspiration may affect
your buying
behaviors?
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2 Characteristics Affecting Consumer Behavior
Reference Groups
Groups that we refer to in
making a purchase. They
also serve as a comparison
point
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2 Characteristics Affecting Consumer Behavior
Opinion Leadership
•Opinion
leadership is sometimes referred to as word-of-mouth or
buzz.
•Also
called influentials or leading adopters
•Marketers
identify them to use as brand ambassadors
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2 Characteristics Affecting Consumer Behavior
Opinion Leaders and Social Networks
•With
social networking sites such as Facebook and Youtube, virtual
opinion leadership is extremely common.
•Question:
do you tend to have a “go to” person when you want to
purchase. Would you consider yourself as an opinion leader?
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2 Characteristics Affecting Consumer Behavior
Family
•Family
members can strongly influence buyer behavior. The family is
the most important consumer buying organization in society, and it
has been researched extensively.
•Marketers
are interested in the roles and influence of the husband,
wife, and children on the purchase of different products and services
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2 Characteristics Affecting Consumer Behavior
Family Buying Roles
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Husband–wife involvement varies widely by product category
and by the stage in the buying process.
•
Buying roles change with evolving consumer lifestyles. The wife has
traditionally been the main purchasing agent for the family in the
areas of food, household products, and clothing.
•
But with more women holding jobs outside the home and the
willingness of husbands to do more of the family’s purchasing,
buying roles and lifestyles have changed.
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2 Characteristics Affecting Consumer Behavior
Roles and Status
•A
role consists of the activities people are expected to perform.
•Groups,
family, and organizations help define roles and social status.
•Each
role carries a status reflecting the general esteem given to it by
society.
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2 Characteristics Affecting Consumer Behavior
Personal Influences
Personal influences
includes demographic
variables such as age
and life-cycle stage,
occupation, economic
situation, lifestyle, and
personality and selfconcept.
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2 Characteristics Affecting Consumer Behavior
Age/ Lifecycle
•People
change the goods and services they buy over their lifetimes.
•Tastes
in food, clothes, furniture, and recreation are often agerelated. Buying is also shaped by the stage of the family life cycle.
•Marketers
often define their targets in terms of life-cycle stage and
develop appropriate products and marketing plans for each stage.
•RBC
Royal Band stages
– Youth: younger than 18
– Getting started: 18–35
– Builders: 35–50
– Accumulators: 50–60
– Preservers: over 60
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2 Characteristics Affecting Consumer Behavior
Occupation
Occupation and income
affect products desired and
purchased.
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2 Characteristics Affecting Consumer Behavior
Economic Situation
•A
person’s economic situation will affect product choice.
•Marketers
of income sensitive goods observe trends in personal
income, savings, and interest rates.
If economic indicators point to a recession, marketers can take steps
to redesign, reposition, and re-price their products closely.
•
•Some
marketers target consumers who have lots of money and
resources, charging prices to match
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2 Characteristics Affecting Consumer Behavior
Lifestyle/AIOs
•Lifestyle
is a person’s pattern of living as expressed in his or her
psychographics
•Measures
a consumer’s AIOs (activities, interests, opinions) to
capture information about a person’s pattern of acting and interacting
in the environment
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2 Characteristics Affecting Consumer Behavior
VALS Lifestyle Classification
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2 Characteristics Affecting Consumer Behavior
VALS - SRI
• VALS classifies people by psychological characteristics and four
demographics that correlate with purchase behavior—how they
spend their time and money.
• It divides consumers into eight groups based on two major
dimensions: primary motivation and resources.
• Primary motivations include ideals, achievement, and selfexpression.
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2 Characteristics Affecting Consumer Behavior
VALS - SRI
• According to SRI-BI, consumers who are primarily motivated by
ideals are guided by knowledge and principles.
• Consumers who are primarily motivated by achievement look for
products and services that demonstrate success to their peers
• Consumers who are primarily motivated by self-expression desire
social or physical activity, variety, and risk.
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2 Characteristics Affecting Consumer Behavior
VALS - SRI
• Consumers within each orientation are further classified into those
with high resources and those with low resources, depending on
whether they have high or low levels of income, education, health,
self-confidence, energy, and other factors.
• Consumers with either very high or very low levels of resources are
classified without regard to their primary motivations (Innovators,
Survivors).
• Innovators are people with so many resources that they exhibit all
three primary motivations in varying degrees.
• In contrast, Survivors are people with so few resources that they do
not show a strong primary motivation. They must focus on meeting
needs rather than fulfilling desires.
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2 Characteristics Affecting Consumer Behavior
Personality and Self-Concept
•Personality
–
and self-concept
Personality refers to the unique psychological characteristics that
lead to consistent and lasting responses to the consumer’s
environment
•Personality
is usually described in terms of traits such as selfconfidence, dominance, sociability, autonomy, defensiveness,
adaptability, and aggressiveness.
•Personality
can be useful in analyzing consumer behavior for certain
product or brand choices
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2 Characteristics Affecting Consumer Behavior
Self-Concept
•Many
marketers use a concept related to personality—a person’s
self-concept (also called self-image).
•The
basic self-concept premise is that people’s possessions contribute
to and reflect their identities; that is, “we are what we have.”
•Thus,
to understand consumer behavior, the marketer must first
understand the relationship between consumer self-concept and
possessions.
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2 Characteristics Affecting Consumer Behavior
Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes
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2 Characteristics Affecting Consumer Behavior
Motivation
A motive is a need that is sufficiently pressing to direct the person to
seek satisfaction
Motivation research refers to qualitative research designed to probe
consumers’ hidden, subconscious motivations
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2 Characteristics Affecting Consumer Behavior
Maslow’s Hierarchy of Needs
Abraham Maslow sought to
explain why people are driven
by particular needs at particular
times. He determined that
human needs are arranged in
a hierarchal fashion.
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2 Characteristics Affecting Consumer Behavior
Perception
•Selective
attention is the tendency for people to screen out most of
the information to which they are exposed
•Selective
distortion is the tendency for people to interpret
information in a way that will support what they already believe
•Selective
retention is the tendency to remember good points made
about a brand they favor and forget good points about competing
brands
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2 Characteristics Affecting Consumer Behavior
Learning
Learning is the change in an individual’s behavior arising from
experience and occurs through interplay of:
Drives
Stimuli
Responses
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Cues
Reinforcem
ent
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2 Characteristics Affecting Consumer Behavior
Key elements of Learning
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A drive is a strong internal stimulus that calls for action.
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A drive becomes a motive when it is directed toward a particular
stimulus object.
•
Cues are minor stimuli that determine when, where, and how the
person responds.
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2 Characteristics Affecting Consumer Behavior
Beliefs and Attitudes
•A
belief is a descriptive thought that a person has about something.
•Attitude
describes a person’s relatively consistent evaluations,
feelings, and tendencies toward an object or idea. Attitudes are
difficult to change.
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3 Types of Buying Decision Behavior
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Purchase decisions vary in terms of consumer effort and amount of
deliberation.
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High involvement purchases lead to more active, careful decision
making.
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The involvement or interest is based on perceived risks in the
purchase. A baby seat purchase is likely to be high in safety risks
and a wedding dress has high levels of social risk. Both of these
risks generate high involvement and more careful buying.
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3 Types of Buying Decision Behavior
Low Involvement
Most purchases are not highly involving.
For example, grocery items are bought as
quickly and efficiently as possible because
prices and risks are low.
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3 Types of Buying Decision Behavior
Four Types of Buying Behavior
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3 Types of Buying Decision Behavior
1. Complex Buying Behavior
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Consumers undertake complex buying behavior when they are
highly involved in a purchase and perceive significant differences
among brands.
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Consumers may be highly involved when the product is expensive,
risky, purchased infrequently, and highly self-expressive.
•
Typically, the consumer has much to learn about the product
category.
Marketers of high-involvement products must understand the
information-gathering and evaluation behavior of high-involvement
consumers.
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3 Types of Buying Decision Behavior
2. Dissonance-Reducing Buying Behavior
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Dissonance-reducing buying behavior occurs when consumers
are highly involved with an expensive, infrequent, or risky purchase,
but see little difference among brands.
•
After the purchase, consumers might experience post-purchase
dissonance (after-sale discomfort) when they notice certain
disadvantages of the purchased brand or hear favorable things about
brands not purchased.
To counter such dissonance, the marketer’s after-sale
communications should provide evidence and support to help
consumers feel good about their brand choices.
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3 Types of Buying Decision Behavior
3. Habitual Buying Behavior
•Habitual
buying behavior occurs under conditions of low consumer
involvement and little significant brand difference.
•Consumer behavior does not pass through the usual belief-attitudebehavior sequence.
•Consumers do not search extensively for information about the
brands, evaluate brand characteristics, and make weighty decisions
about which brands to buy.
•They passively receive information as they watch television or read
magazines.
Because buyers are not highly committed to any brands,
marketers of low-involvement products with few brand differences
often use price and sales promotions to stimulate buying
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3 Types of Buying Decision Behavior
4. Variety-Seeking Buying Behavior
•Consumers
undertake variety-seeking buying behavior in
situations characterized by low consumer involvement but significant
perceived brand differences.
•In
such cases, consumers often do a lot of brand switching.
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3 Types of Buying Decision Behavior
4. Variety-Seeking Buying Behavior
The Japanese
obsession with gentei
(or “limited edition”)
has spun exotic
flavored KIT KAT
bars. These flavors
satisfy the Japanese
for variety.
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4 The Buyer Decision Process
The Buyer Decision Process
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4 The Buyer Decision Process
Search
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If the consumer does not have adequate information to make a
purchase, search will occur.
•
The amount of search is commensurate with the level of involvement
in the purchase.
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4 The Buyer Decision Process
Information Sources
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Personal sources (family, friends, neighbors, acquaintances)
•
Commercial sources (advertising, salespeople, Web sites dealers,
packaging, displays)
•
Public sources (mass media, consumer-rating organizations,
Internet searches)
•
Experiential sources (handling, examining, using the product)
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4 The Buyer Decision Process
Information Sources
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Commercial sources inform the buyer.
•
Personal sources legitimize or evaluate products for the buyer
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4 The Buyer Decision Process
Alternative Evaluation
•Alternative
evaluation is how the consumer processes information
to arrive at brand choices.
•How
consumers go about evaluating purchase alternatives depends
on the individual consumer and the specific buying situation.
•In
some cases, consumers use careful calculations and logical
thinking.
•At
other times, the same consumers do little or no evaluating; instead
they buy on impulse and rely on intuition
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4 The Buyer Decision Process
Purchase Decision
•
Generally, the consumer’s purchase decision will be to buy the
most preferred brand.
•
Two factors can come between the purchase intention and the
purchase decision.
Attitudes of others
– Unexpected situational factors
–
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4 The Buyer Decision Process
Post-Purchase Behavior
•The
difference between the consumer’s expectations and the
perceived performance of the good purchased determines how
satisfied the consumer is.
•If
the product falls short of expectations, the consumer is
disappointed; if it meets expectations, the consumer is satisfied; if it
exceeds expectations, the consumer is said to be delighted.
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4 The Buyer Decision Process
Cognitive Dissonance
•
Almost all major purchases result in cognitive dissonance, or
discomfort caused by post-purchase conflict.
•
After the purchase, consumers are satisfied with the benefits of the
chosen brand and are glad to avoid the drawbacks of the brands
not bought.
•
However, every purchase involves compromise.
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4 The Buyer Decision Process
Cognitive Dissonance
•Consumers
feel uneasy about acquiring the drawbacks of the chosen
brand and about losing the benefits of the brands not purchased.
•Thus,
consumers feel at least some post-purchase dissonance for
every purchase.
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4 The Buyer Decision Process
Customer Satisfaction
•Customer
satisfaction is the key to building profitable relationships
with consumers—to keeping and growing consumers and reaping their
customer lifetime value.
•Satisfied
customers buy a product again, talk favorably to others
about the product, pay less attention to competing brands and
advertising, and buy other products from the company.
•Many
marketers go beyond merely meeting the expectations of
customers—they aim to delight the customer
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4 The Buyer Decision Process
Importance of Customer Satisfaction
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