CONSUMER BEHAVIOUR

CB is the study of human responses to products , services ,and the marketing of products & services.

CB is like fishing

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

Decision making

decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service

General model

A general model of the decision process consists of the following steps: Problem recognition;
Gathering Information

Alternative education
Purchase decision

Post-purchase behavior/buyer's remorse (cognitive dissonance)

Information search and decision making. Consumers engage in both internal and external information search.

Need Recognition

Information Search

Cultural, Social, Individual and Psychological Factors affect all steps

Evaluation of Alternatives

Purchase

Post purchase Behavior

Need Recognition
Result of an imbalance between actual and desired states.

Marketing helps consumers recognize an imbalance between present status and preferred state

Internal Stimuli and External Stimuli

Preferred State

Present Status

Stimulus

Any unit of input affecting one or more of the five senses: sight smell taste touch hearing

Want
Recognition of an unfulfilled need and a product (or attribute or feature) that will satisfy it.

Recognition of an unfulfilled need and a product

(or attribute or feature) that will satisfy it.

When a current product isnt performing properly When the consumer is running out of an product

When another product seems superior to the one currently used

Information Searches
Process of recalling past information stored in the memory.

Internal

External

Process of seeking information in the outside environment.

Internal Information Search

Recall information in memory

External Information search Seek information in outside environment

Non-marketing controlled Marketing controlled

External Information Searches

Need Less Information

Less Risk More knowledge More product experience Low level of interest

Need More Information

More Risk Less knowledge Less product experience High level of interest

Evoked Set

Group of brands, resulting from an information search, from which a buyer can choose.

Evaluation of Alternatives

Evoked Set
Evaluation of Products Analyze

product attributes
Rank attributes by importance

Purchase!

Inert set: Does not see any specific advantage. Not + or ve

Inept set: set of brands that have been rejected

Purchase

To buy or not to buy...

Determines which attributes are most important in influencing a consumers choice

Explain the consumers Post purchase evaluation process.

Cognitive Dissonance
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

Postpurchase Behavior

Cognitive Dissonance

Did I make a good decision? Did I buy the right product? Did I get a good value?

Can minimize through: Effective Communication Follow-up Guarantees Warranties

consumer buying decisions and discuss the significance of consumer involvement. Types of Consumer Buying Decisions

Routine Response Behavior

Limited Decision Making

Extensive Decision Making

Less Involvement

More Involvement

Five Factors influencing Decisions

1. Level of consumer involvement

2. Length of time to make decision 3. Cost of good or service 4. Degree of information search

5. Number of alternatives considered

Routine Response Behavior( RRB)

Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision

Limited Decision Making (Limited problem solving LPS) Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands Short to moderate time to decide

Extensive Decision Making (Extensive problem solving EPS)

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide May experience cognitive dissonance

Level of Involvement
Previous Experience

Interest

Factors Determining Level of Involvement

Perceived Risk of Negative Consequences

Situation Social Visibility

Marketing Implications of Involvement

High-involvement purchases require: extensive promotion to target market and good advertisement

Low-involvement purchases require: instore promotion and eye-catching package design

Factors Influencing Buying Decisions

Cultural Factors

Social Factors

Individual Factors

Psychological Factors

CONSUMER DECISIONMAKING PROCESS

BUY / DONT BUY

Culture

Set of values norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

Cultural Influences on Buying Decisions

Values Language Myths Customs

Components of American Culture

Rituals Laws Material Artifacts

Culture is...

Having the quality or tendency to pervade or permeate:

the pervasive odor of garlic

Culture is... Pervasive Functional Learned

Dynamic

Value

Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

Core American Values

Success Materialism Freedom Progress

Core American Values

Youth Capitalism

Global Language Blunders

Chevrolets Nova translated to No Go
Coors Turn it Loose became Suffer from Diarrhea Toyotas MR2 sounded like a swearword in French

Coca-Cola in Chinese means bite the wax tadpole

social factors that affect consumer buying decisions Social Influences

Social Influences on Buying Decisions

Reference Groups Opinion Leaders

Family Members

Reference Group
in society that influences an individuals

A group

purchasing behavior.

Primary Direct Secondary Types of Reference Groups

Aspirational

Indirect
Non-aspirational

Implications of Reference Groups

They serve as information sources and influence perceptions

They affect an individuals aspiration levels Their norms either constrain or stimulate consumer behavior

Opinion Leaders

An individual who influences the opinion of others.

Family

Instigators Influencers Decision-Makers Purchasers Consumers

Purchase Roles in the Family

Children Influence Purchase Decisions

individual factors that affect consumer buying decisions.

Individual Influences

Individual Influences
Personality Self-Concept Lifestyle
Age Family Life Cycle

Gender

psychological factors that affect consumer buying decisions. Psychological Influences

Perception

Motivation

Learning

Psychological Influences on Buying Decisions

Beliefs & Attitudes

Perception

Process by which people select, organize, and interpret stimuli into meaningful and coherent picture.

Selective Exposure

Selective Distortion

Selective Retention

Selective Exposure

Consumer notices certain stimuli and ignores others

Selective Distortion
Selective Retention

Consumer changes or distorts information that conflicts with feelings or beliefs Consumer remembers only that information that supports personal beliefs

A Consumers Selective Exposure

Exposure to over 250 advertisement messages per day

Notices only 11 to 20 ads

Marketing Implications of Perception

Important attributes

Higher price
Brand names Quality and reliability Threshold level of perception Product changes

Maslows Hierarchy of Needs

SelfActualization
Esteem Social Safety Physiological

Maslows Hierarchy of Needs

Learning

A process that creates changes in behavior, immediate or expected, through experience and practice.

Types of Learning

Types of Learning

Description

Experiential An experience changes behavior Not learned through direct experience

Conceptual

Stimulus Generalization

A form of learning that occurs when one response is extended to a second stimulus similar to the first.

Beliefs and Attitudes

Belief

An organized pattern of knowledge that an individual holds as true about his or her world. A learned tendency to respond consistently toward a given object.

Attitude