Consumer Behavior
Customer vs. Consumer Behavior
• Customer behavior: a broad term
that covers both individual consumers
who buy goods and services for their
own use and organizational buyers
who purchase business products
• Consumer behavior: the process
through which the ultimate buyer
makes purchase decisions
UNIT: 4. CONSUMER BEHAVIOUR
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Factors Influencing Buyer Behavior
Buyer Decision Process
Consumer Psychology
Industrial Buyer Behavior Vs. domestic
Buyer Behavior
• Customer Satisfaction Vs. Customer
Delight
Consumer Behavior
Consumer behavior consists of the
actions a person takes in purchasing and
using products and services, including the
mental and social processes that come
before and after these actions.
Importance of understanding
Consumer Behavior
Understand
Predict
Influence
Factors affecting Consumer
Behavior
• Model of Consumer Behavior
• Factors affecting Buyer Behavior
• Types of Buying Decisions
Model of Consumer Behavior
Product
Price
Marketing and
Other Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Factors
Buyer’s
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyer’s Black Box
Affecting
Consumer
Behavior
Buyer’s Response
Purchase
Timing
Purchase
Amount
Factors Affecting
Consumer Behavior
Cultural
Social
Personal
Psychological
Buyer
Factors Affecting Consumer Behavior:
Cultural
Culture
Subculture
Social class
Culture
Culture is a whole set of values, traditions,
beliefs, attitudes and ways of doing things of
a reasonably homogeneous set of people.
• Cultural Influences
– Culture: values, beliefs, perceptions,
preferences, and tastes handed down from one
generation to the next.
Indian Culture:
– Children feel the responsibility of taking care of
aged parents.
– A father owning the responsibility of getting his
Daughter married in a well to do family.
• Core Values in the Culture
– While some cultural values change over
time, basic core values do not
– Examples of core values include:
• Importance of family and home life
• The way of dressing
• Working habits
Values are shared beliefs formed through Socialization
& Acculturisation process
Subcultures
Subcultures are subgroups within the
larger, or national culture with unique
values, ideas, and attitudes, based on
common life experiences.
• Subcultures: subgroup of culture with its
own, distinct modes of behavior
– Cultures are not homogeneous entities with
universal values.
– Subcultures can differ by:
• Religion
• Place of residence
Subculture influences food preferences, clothing
choices, recreation & career aspirations.
Social class
A group of people who have approximately
equal social position as viewed by others
in society. It can be related to occupation,
education, & community participation
where a person lives.
• It comprises of relatively homogeneous &
enduring divisions in a society which are
hierarchically ordered & whose members
share similar values, interests and
behavior.
E.g. Caste-system in India
• Social classes: groups whose
rankings are determined by occupation,
income, education, family background,
and residence location
W. Lloyd Warner identified
six classes:
1. Lower class
2. Upper-upper
3. Lower-upper
4. Upper-middle
5. Lower-middle
6. Working class
• Social classes show distinct product &
brand preferences in many areas such as
clothing, furnishings, leisure etc.
Factors Affecting Consumer Behavior:
Social
Reference Groups
Family
Social Factors
Roles and Status
Reference Groups
Reference groups are people to whom an
individual looks as a basis for
self-appraisal or as a source of personal
standards.
• Reference groups: groups whose value
structures and standards influence a
person’s behavior
– Requires two conditions:
• The purchased product must be one that
others can see and identify
• The purchased item must be conspicuous; it
must stand out as something unusual, a
brand or product that not everyone owns
• Reference Groups
 Membership Group ( primary, secondary)
 Aspiration Group (like to belong)
 Dissociative Group (like not to belong)
Reference groups influence in at least
three ways.
1.Expose individual to new behavior &
lifestyle
2.Influence a persons attitude & selfconcept.
3.Create pressures for conformity-actual
product/brand choice.
• Personal Influence
 Opinion Leadership
• Opinion Leaders
• Word of Mouth
Opinion Leaders
Opinion leaders are individuals who
exert direct or indirect social influence
over others.
• Opinion
leaders:
trendsetters
who purchase
new products
before others in
a group and
then influence
others in their
purchases
Pierce Brosnan and Anna Kournikova
Why use celebrity spokespersons?
Word of Mouth
Word of mouth is the influencing of
people during conversations.
Family
• Family Influence
 Consumer Socialization
 Family Life Cycle
 Family Decision Making
• Information Gatherer
• Purchaser
• Influencer
• User
• Decision Maker
Family Life Cycle
The family life cycle describes the
distinct phases that a family progresses
through from formation to retirement,
each phase bringing with it identifiable
purchasing behaviors.
Haggar Clothing
What role do women play in this purchase?
• Family Influences
– Husband-dominant role is when the
husband makes most of the decisions.
– Wife-dominant role is when the wife makes
most of the decisions.
– Syncratic role is when both partners jointly
make most decisions.
• Children and Teenagers in Family
Purchases
– Growing numbers are assuming
responsibility for family shopping
– They also influence what parents buy
Roles & Status
– Roles define behavior that members of a
group expect of individuals who hold
specific positions within the group
– Status: is the relative position of any
individual member in a group. Each role
carries a Status
• Roles influence Buyer behavior. People
choose products that communicate their
role & status in society.
• Marketers should be aware of the status
symbol potential of products & brands.
Factors Affecting Consumer Behavior:
Personal
Personal Influences
Age and Life Cycle
Stage
Occupation
Economic Situation
Personality & Self-Concept
Lifestyle Identification
Activities
Opinions
Interests
Age & life-cycle stage
• Affects choice of food, clothes, furniture,
recreation etc.
Occupation
• Affects consumption pattern .
e.g. Purchasing patterns of white collar
workers will be different from those of blue
collar workers.
Economic circumstances
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Spendable income
Savings & assets
Debts
Borrowing power
Attitude towards spending & savings
Personality
• A person’s distinguishing psychological
characteristics that lead to relatively
consistent & enduring responses to
environment
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Based on traits people can be described as
Confident
Warm
Loving
Caring
Outgoing
Introvert
Extrovert
Aggressive
Not Responsible
• Personality types affect product/brand
choices. A Marketer should adapt his
selling style to suit the customer’s
personality.
Self-concept
• Self-concept (Self-image)
• Marketers try to develop brand images
that match the target market’s self-image.
• Actual self-concept
• Ideal self- concept
• Other’s self -concept
• It sometimes may become difficult to
answer which self will one try to satisfy
while choosing a product.
Lifestyle
• It is the person’s pattern of living as
expressed in the person’s activities ,
interests & opinions.
• Lifestyle portrays whole person interacting
with the environment.
• Achievement-oriented
• Belongingness-oriented
Factors Affecting Consumer Behavior:
Psychological
Motivation
Beliefs and
Attitudes
Psychological
Factors
Learning
Perception
Types of Buying Decisions
• Involvement
• Differences between brands
Involvement
Involvement consists of the personal,
social, and economic significance of the
purchase to the consumer.
Types of Buying Decisions
Significant
differences
between
brands
Few
differences
between
brands
High
Involvement
Low
Involvement
Complex
Buying
Behavior
VarietySeeking
Behavior
DissonanceReducing Buying
Behavior
Habitual
Buying
Behavior
The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
The Buyer Decision Process
The buyer decision process is the stages a
buyer passes through in making choices
about which products and services to buy.
Consumer Buying Decisions
Process for a Wireless Phone
1. Recognition
of a Need
(for reliable
mobile telephone
communication)
6. Disposition
(Discard phone,
cancel wireless
service when no
longer wanted
or needed)
2. Search for
Information
(about wireless
service providers
and phones)
5. Post-purchase
3. Evaluation
of Alternatives
(narrow down to
consideration set)
4. Choice/
Evaluation
Purchase
(actual versus
expected
satisfaction with
both phone and
service
provider)
(choosing one
alternative
provider and
phone from
the set)
The Buyer Decision Process
Step 1. Need Recognition
Need Recognition
Difference between an actual state and a desired state
Internal Stimuli
External Stimuli
• Hunger
• TV advertising
• Thirst
• Magazine ad
• A person’s normal
needs
• Radio slogan
•Stimuli in the
environment
Need recognition: the process that
occurs whenever the consumer sees a
significant difference between his or her
current state of affairs and some desired
or ideal state.
• Needs are biologically determined (food,
water, shelter) while wants are learned
responses to satisfying those needs.
• Marketers want to know how consumers
learn so that they can attempt to influence
this process.
The Buyer Decision Process
Step 2. Information Search
Personal Sources
•Family, friends, neighbors
•Most influential source of
information
Commercial Sources
•Advertising, salespeople
•Receives most information
from these sources
Public Sources
Experiential Sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
Information search: the process whereby a
consumer searches for appropriate information
needed to make a reasonable decision.
• Information search takes place:
– Internally: our own memory bank.
– Externally: everywhere else.
• The Internet has enabled this process by huge leaps
and bounds.
• Information search can be:
– Purposeful: looking for it.
– Passively acquired.
• Of key interest is what influences the amount and
quality of search?
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
Evaluation of alternatives: the process whereby
a consumer evaluates the different purchase
alternatives identified.
• Evaluation criteria: the dimensions that
consumers use to compare competing
product alternatives.
• Students choosing a university may use
many different selection criteria, such as:
size, reputation, costs, location, programs,
living accommodations, or social life.
• Some criteria are more important than
others, so we still need to know how the
decision will be made.
• Product choice: the process whereby a
consumer makes a choice between the
different purchase alternatives identified.
• Heuristics: a mental rule of thumb that leads
to a speedy decision by simplifying the
process.
Heuristics
• The human mind seeks to simplify the amount of
decision making required whenever possible.
• We hold attitudes for the same reason, and we
apply them to purchase decisions.
• Does higher price equal more quality? If it is a
Rolex, yes.
• What happens when it doesn’t in the short and
long run?
Brand Loyalty
• Brand loyalty: a pattern of repeat product
purchases, accompanied by an underlying
positive attitude toward the brand, which is
based on the belief that the brand makes
products superior to its competition.
• Brand names can serve as an expectation of
performance and can be used to facilitate new
product acceptance.
• Brand equity: the value of the brand
name’s acceptance.
• Companies use brand equity to facilitate
new product acceptance.
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes
of others
Unexpected
situational
factors
Purchase Decision
The Buyer Decision Process
Step 5. Post purchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance
Satisfied
Customer!
Dissatisfied
Customer
Cognitive Dissonance
• Post-purchase evaluation: the
process whereby a consumer evaluates
the quality of the purchase decision made,
as a result of consumption and learning.
• Customer (dis)satisfaction: the
overall feelings or attitude a person has
about a product after purchasing it.
Consumer Psychology
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Perception
Learning
Motivation
Beliefs & Attitudes
Lifestyles
Perception
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What is Perception
Images
Process
Sensation & Perception
Picturing the Perceptual Process
Psychological influences on consumer
behavior
What is Perception?
• Process to recognize, organize, and
make sense of sensations.
Perception
Perception is the process by which an
individual selects, organizes, and
interprets information to create a
meaningful picture of the world.
Look at this picture: what do you see?
Images nearby ... and far away
How many Horses can you find in this picture?
Find faces
in this tree
Can you
find
hidden
images?
Find the baby
PERCEPTION
Sensation and Perception
• Sensation: Conscious outcome of sense
organs and projection regions. (“I detect
something”, not necessarily conscious, and
not necessarily meaningful)
• Perception: Means by which information
acquired from the environment via the sense
organs is transformed (organized) into
experiences of objects, events, sounds,
tastes, etc. (“I know, recognize, appreciate
what I am sensing, and it means something to
me”)
Picturing the Perceptual Process
Three steps in the sensation and
perception of a stimulus
• Perceptions: the meaning that a
person attributes to incoming stimuli
gathered through the five senses –
sight, hearing, touch, taste, and smell.
• Perceptual screens: the filtering
processes through which all inputs
must pass
Psychological Influences of
consumer behavior
• Selective perception
• Subliminal Perception
• Perceived Risk
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
• Perception
 (Three perceptual processes)
• Selective Attention
• Selective Distortion
• Selective Retention
 Subliminal Perception
• Subliminal Perception: subconscious
receipt of information
– Almost 50 years ago, a New Jersey movie
theater tried to boost concession sales by
flashing the words Eat Popcorn and Drink
Coca-Cola.
– Subliminal advertising is aimed at the
subconscious level of awareness.
– Subliminal advertising has been universally
condemned as manipulative, and is
exceedingly unlikely that it can induce
purchasing.
– Research has shown that subliminal
messages cannot force receivers to purchase
goods that they would not consciously want.
Perceived Risk
Perceived risk represents the anxieties
felt because the consumer cannot
anticipate the outcomes of a purchase
but believes that there may be negative
consequences.
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Perceived risk: the belief that use of a product
has potentially negative consequences, either
financial, physical, or social.
The consequences of making a bad choice may
vary from minimal (chocolate bar) to severe
(university program or choice of mate!).
Risk is perceptual, therefore it can be influenced.
How do marketers reduce the risk perceived by
consumers?
What do consumers do to reduce their perceived
risk?
Mostly, they look for information.
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
• Perception
 Perceived Risk
• Obtain Seals of Approval
• Secure Endorsements from Influential People
• Provide Free Trials of the Product
• Give Extensive Usage Instructions
• Provide Warranties and Guarantees
Learning
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Meaning
Learning - I : Classical Conditioning
Learning -2: Operant Conditioning
Psychological Influences on Consumer
Behavior
What is “learning”?
“any relatively enduring change in behavior
as the result of experience”
Learning
Learning refers to those behaviors that
result from (1) repeated experience and
(2) reasoning.
• Learning: a relatively permanent change
in behavior caused by acquiring
information or experience. Consumers
must learn how to satisfy their needs.
• Learning can be either deliberate or
vicarious.
• Behavioral learning theories: theories of
learning that focus on how consumer behavior is
changed by external events or stimuli.
• The consumer forms connections between the
things that happen to them or within their range
of perception.
• Freud had a few things to say about these
connections.
Learning I:
Classical Conditioning
Ivan Pavlov
• 1849-1936 (b. near Moscow)
• Animal research using live
animals
• Early research on animal
digestion in which taste of food
shown to trigger release of
gastric juices
Pavlov’s Research on Conditioning
• Animals had small
incision in jaw to
create a channel
(fistula) through which
saliva would flow and
be collected &
measured
• Pavlov began to
research what would
happen when he rang
a bell or sounded a
gong just before he
put meat powder in the
dog’s bowl
What is your reaction to this photo?
What is your reaction to this blue
box?
What is happening here?
The blue box becomes
associated with the lovers
+
Signals
Take a naturally pleasant or attractive
object or situation
+
Associate it with a neutral object or
situation
If done enough times, the neutral object or
situation becomes a mental signal for the
pleasant or attractive one. It signals that the
naturally pleasant or attractive object or
situation is about to appear on the scene
Learning II:
Operant Conditioning
B. F. Skinner
“Skinner Box”
• Lever or other target
upon which the animal
will operate
• Signal such as a light
• Source of reward such
as a food pellet tray or
a punishment such as
an electrical shock grid
• Mechanism to record
animal’s behavior
(frequency counter)
• First used with rats,
then with pigeons
New Language I:
Contingencies
• Reinforcement = any consequence which
increases the likelihood that the behavior will
occur again
– Positive Reinforcement: a pleasant reward which
leads to an increase in a behavior
• Having a good time on a Saturday night
– Negative Reinforcement: removal of something
aversive or unpleasant which leads to increase in a
behavior
• Cops stopping loud music of kids outside
• Punishment = Any consequence which decreases
the likelihood that the behavior will occur again
New Language II: Behavioral
Control
• Organisms acquire new behaviors
• The forms of behaviors are shaped by their
consequences
• Behaviors are extinguished by a lack of
reinforcement when they occur
• Discriminative stimuli are cues (signals) that
influence behavior; they suggest the consequence
of behavior
• Generalized responses are behaviors which are
similar to behaviors which have been rewarded or
punished in the past
• Learning
– An immediate or expected change in
behavior as a result of experience.
– The learning process includes the
component of:
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Drive
Cue
Response
Reinforcement
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
• Learning
 Behavioral Learning
• Drive
• Stimulus Generalization
• Response
• Stimulus Discrimination
• Reinforcement
 Cognitive Learning
 Brand Loyalty
Brand Loyalty
Brand loyalty is a favorable attitude
toward and consistent purchase of a single
brand over time.
• Applying Learning Theory to
Marketing Decisions
– Shaping: process of applying a series of
rewards and reinforcements to permit
more complex behavior to evolve over
time
MOTIVATION & PERSONALITY
Motivation
Motivation is the energizing force that
stimulates behavior to satisfy a need.
Personality
Personality refers to a person’s consistent
behaviors or responses to recurring
situations.
Motivation & Personality
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Why do people do the things they do?
Drive Reduction Theory
Kinds of Drives
Psychological Influences on Consumer
Behavior
Motivation
Why do people do the things they do?
• reflexes
– simple, unlearned responses to specific
stimuli
– -often mediated by direct connections in
spinal cord
• learned (conditioned) behaviors
– physiological needs  drives  increase
likelihood of behavior
• cognition
– thoughts, beliefs and strategies about
consciously directed behaviors that best
satisfy drives
• What are
the basic
drives?
• Why are
some things
more
motivating
(reinforcing)
than others?
• Motivation
 Drive-Reduction Theory
 the idea that a physiological need creates an
aroused tension state (a drive) that motivates
an organism to satisfy the need
Kinds of Drives
• regulatory
– primary biological maintenance
– survival
– regulated by homeostasis
• breathing, hunger, thirst, pain, sleep
• non-regulatory
– long-term maintenance
• attachment, nurture, novelty, aggression
– long-term comfort
• self-esteem, power, achievement, self-actualization
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
• Motivation and Personality
 Motivation
• Physiological Needs
• Safety Needs
• Social Needs
• Personal Needs
• Self-Actualization Needs
 Personality
• Self-Concept
Hierarchy of needs
Motivation: an internal state that drives us
to satisfy needs by activating goal-oriented
behaviour.
• Example: a homeless person is motivated
to find shelter and food, while only the
wealthy have the luxury of spending their
time seeking “self-fulfillment”.
• Needs and Motives
– Need: an imbalance between a consumer’s
actual and desired states
– Motives: inner states that direct a person
toward the goal of satisfying a felt need
Self Concept
Definition
Self Concept: the totality of an individual’s
thoughts and feelings having reference to
him/herself as an object.
It is the personal or internal basis for
lifestyle but should not be perceived as
devoid of social influence.
• Self-Concept
– A person’s multifaceted picture of himself or
herself, composed of the:
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Real self
Self-image
Looking-glass self
Ideal self
Measurement Scales for Self-Concepts,
Person Concepts, and Product Concepts
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Rugged
----------------- Delicate
Excitable ----------------- Calm
Uncomfortable ------------ Comfortable
Dominating --------------- Submissive
Thrifty
----------------- Indulgent
Pleasant ----------------- Unpleasant
Contemporary -------------Non-contemporary
Organized ----------------- Unorganized
Rational ----------------- Emotional
Youthful ----------------- Mature
Formal
----------------- Informal
Orthodox ----------------- Liberal
Complex ----------------- Simple
Colorless ----------------- Colorful
Modest
----------------- Vain
The Relationship between Self-Concept
and Brand Image Influence
Product
Brand Image
Relationshi
p Between selfconcept and
brand image
Consumer
Self-concept
Behavior
Satisfaction
Seek products
and brands
that improve
or maintain
self-concept
Purchase
contributes to
desired selfconcept
Lifestyle/ Psychographics
Lifestyle defined:
A distinct mode of living -- including how
one spends time, $, and places emphasis
on numerous aspects of their life.
Lifestyle patterns are influenced by several
internal and external factors like:
Income, age, family size, social patterns, social
attitude changes, shifts in social views, legal
changes, background, and education.
Lifestyle/ Psychographics
Psychographics defined:
A way of describing the psychological makeup or lifestyle of a consumer or segment of
consumers.
Lifestyle dimensions can come from analyzing several
activities/interests and opinion items. This analysis --a set of dimensions or factors, next these factors are
used in formulation clusters or categories of the
consumer population.
Lifestyle and the Consumption Process
Lifestyle
Determinants
• Demographics
Behavioral
Impact
Lifestyle
(How we live)
• Subculture

Activities
Purchases
• Social class

Interests

• Motives
• Personality


Like/dislikes


How
When
Where
What
With whom

Attitudes


Consumption
Consumption
• Household

Expectations

• Culture
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Feelings
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• Emotions
• Values
• Past experiences
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Where
With whom
How
When
What
Impact of Lifestyle
Lifestyle ----- > Choice/use/w.o.m
Direct Impact
Indirect Impact
Aspirational Impact
Impact of Lifestyle
Direct Impact
Adventuresome, fast-paced,
live-for-now, lifestyle --->
higher desire for sports
cars, bungie jumping, travel.
Impact of Lifestyle
Indirect Impact
Modern conservative family, two career
professionals, wants to provide nice, safe
home and good future opportunities for
children ---> lawn care service, auto
maintenance contracts, fast food services.
Impact of Lifestyle
Aspirational Impact
Low-income individual, young adult,
college graduate, profession seeking,
wants a family, (but later). Marketing
messages tell him/her that you need to
“dress for success” “look good” ---> CZ
ring, 18K gold plated watch, designer
copy-cat clothes, less-expensive but
“unique car.”
Relationship of Self-concept and Lifestyle
Self concept
Private
Self
Social
Self
Ideal
Actual
Actual
Lifestyle
External
Factors
Measures of Lifestyle
Originally AIO inventory (200-350 items
involving Activities, Interests, and Opinions)
Problem: Too long, too narrow in scope
More recent measures include: Attitudes, Values,
Activities, Interests, Media Patterns, Usage
characteristics, Demographics and Geographics.
VALS
VALS2
PRIZM
VALS
4 Base categories:
Survivors
Need Driven
Groups
Outer directed
Groups
Sustainers
Belongers
Emulators
Achievers
Inner directed
Groups
I am me
Experiential
Societally conscious
Both inner and
outer directed
Integrated
VALS2 Lifestyle System
Principle
Status
Action
Abundant resources
Actualizer
Fulfilled
Believer
Achiever Experiencer
Striver
Maker
Struggler
Minimal resources
VALS2 Lifestyle System
Self concept is composed primarily of three
dimensions of self orientation:
Principle oriented: Choices guided by their own
personal beliefs, not feelings or other’s approval.
Status oriented: Heavily influenced by actions,
approval, and the opinions of others
Action oriented: Desire social activity & Physical
activity variety and risk taking -- adventuresome.
Lifestyle Analysis of the Cosmetics Market
Cosmetic Lifestyle Segments
1. Self-aware: concerned about appearance, fashion, and
exercise.
2. Fashion-direct: concerned about fashion and appearance,
not about exercise and sport.
3. Green goddesses: concerned about sport and fitness, less
about appearance.
4. Unconcerned: neutral attitudes to health and appearance.
5. Conscience-stricken: no time for self-realization, busy with
family responsibilities.
6. Dowdies: indifferent to fashion, cool on exercise, and dress
for comfort.
Intrapersonal and Interpersonal Determinants of Consumer Behavior
Culture and Subculture
Measurement
Social class
Psychographics
Activities, interests,
opinions.
Preference groups
Family
Values
Personality
Lifestyles
Decisions
Family
Individual
General behavior
Intrapersonal and Interpersonal Determinants of Consumer Behavior
General behavior
Benefits desired
Money Budget
expenditures
Time budget
expenditures
Product choices
Brands and store
choices
Benefit delivery
Beliefs & Attitudes
• Beliefs
• Attitudes
• Psychological Influences on Consumer
Behavior
Beliefs
Beliefs are a consumer’s subjective
perception of how a product or brand
performs on different attributes based on
personal experience, advertising, and
discussions with other people.
Attitude
An attitude is a “learned predisposition
to respond to an object or class of objects
in a consistently favorable or unfavorable
way.”
• Attitudes
– A person’s enduring favorable or
unfavorable evaluations, emotional feelings,
or action tendencies toward some object or
idea
– Attitude components:
• Cognitive
• Affective
• Behavioral
• Changing Consumer Attitudes
– Attempt to produce consumer attitudes that
will motivate the purchase of a particular
product
– Evaluate existing consumer attitudes and
then make the product characteristics appeal
to them
• Modifying the Components of Attitude
– Attitudes change in response to
inconsistencies among the three components
– Marketers can work to modify attitudes by
providing evidence of product benefits and
by correcting misconceptions
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
• Values, Beliefs, and Attitudes
 Attitude Formation
• Attitude
• Beliefs
 Attitude Change
• Change Beliefs About a Brand’s Attributes
• Change Perceived Importance of Attributes
• Add New Attributes to the Product
Colgate Total Toothpaste and
Bayer Extra Strength Aspirin
How did these ads change attitudes?
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
• Lifestyle
 Psychographics
 VALS™
• Thinkers
• Experiencers
• Believers
• Makers
• Achievers
• Innovators
• Strivers
• Survivors
VALS™ Consumer Segments
How do consumers make purchase decisions?
Industrial Buying Behavior
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Business Market
Characteristics of Business Market
Model of Business Buying Behavior
Business Buying Situation
Participants
Major Buying Influences
Stages
What is a Business Market?
• The Business Market - all the
organizations that buy goods and
services to use in the production of
other products and services that are
sold, rented, or supplied to others.
• Business markets involve many
more dollars and items do consumer
markets.
Characteristics of Business Markets
Market Structure and Demand
• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Inelastic demand
• Fluctuating demand
Nature of the Buying Unit
• More buyers
• More professional purchasing
effort
Types of Decisions & the
Decision Process
• More complex decisions
• Process is more formalized
• Buyer and seller are more
dependent on each other
• Build close long-term relationships
with customers
Model of Business Buyer Behavior
Product
Price
Marketing and
Other Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Organizational
Influences
Product or Service
Choice
The Buying Organization
The Buying Center
Buying Decision
Process
Buyer’s Response
Interpersonal
and Individual
Influences
Delivery Terms
and Times
Supplier Choice
Service Terms
Order Quantities
Payment
Business Buying Situations
Involved Decision Making
New Task Buying
Modified Rebuy
Straight Rebuy
Participants in the Business Buying Process:
The Buying Center
Gatekeepers
Deciders
Users
Buying
Center
Buyers
Influencers
Major Influences on Business
Buying
Environmental
Economic, Technological, Political, Competitive & Cultural
Organizational
Objectives, Policies, Procedures,
Structure, & Systems
Interpersonal
Authority, Status, Empathy &
Persuasiveness
Individual
Age, Education, Job Position, Personality &
Risk Attitudes
Buyers
Stages in the BusinessBuying Process
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance Review