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Literature Review

Consumer Behavior
Business Research - Group 2
Mukhamejanova Lyudmila | MEW2011559049 Palita Suntisuk | MEW2011559063 Pornchulee Ratanacharoensiri | MEW2011559018 Stefan Reindl | MEW2011559002 Thanathat Srichaiyongpanich | MEW2011559033

Business Research - Literature Review on Consumer Behavior

Central Questions
Influencing factors of consumer behavior: major demographic, cultural, and social factors Major motivation theories Consumer buying decision making process: several steps

Business Research - Literature Review on Consumer Behavior

1 Consumer Behavior
Consumer behavior is the study of how individuals, groups and organizations select, buy, use, and dispose of goods, service, ideas, or experiences to satisfy their needs and wants. Major Influence Factors:
Culture Factors Social Factors Personal Factors

Business Research - Literature Review on Consumer Behavior

1 Consumer Behavior

Business Research - Literature Review on Consumer Behavior

1 Consumer Behavior
Culture Factors
Culture > determinant of a persons wants and behavior. Subcultures > specific identification and socialization for their members include nationalities, religions, racial groups and geographic regions. Social class > shared similar values, interests and behavior.

Business Research - Literature Review on Consumer Behavior

1 Consumer Behavior
Social Factors
Reference groups: have a direct or indirect influence in their attitudes or behavior in three ways. (expose an individual to new behaviors and lifestyle / attitudes and self-concept / create pressures for conformity that may affect product and brand choices.) Family (most important consumer buying organization) There are two families in buyers life: Family of orientation & Family of Procreation Social roles & statuses: role = activities a person is expected to perform, each role carries a status. People choose products that reflect ad communicate their role and actual or desired status in society.

Business Research - Literature Review on Consumer Behavior

1 Consumer Behavior
Personal Factors
Age and stage in the life cycle: consumption is shaped by the family cycle, the number, age and gender of people in the household. Also psychological life-cycle stage and critical life events or transitions can cause new needs. Occupation and economic circumstances Personality and self-concept: (set of distinguishing human psychological traits that lead to consistent and enduring responses to environmental stimuli) Consumers choose brands matching their own Personality Lifestyle and values: a persons pattern of living in the world as expressed in activities, interests and opinion > determined by core values - the belief systems that underlie attitudes and behaviors.

Business Research - Literature Review on Consumer Behavior

1 Consumer Behavior
@ Social Factors Types of Reference Groups
Memberships are groups that have direct influence
Primary groups with whom the person interacts continuously and informally such as family, friends. Secondary groups which tend to be more formal and require less continuous interaction such as professional and religious.

Aspirational groups are those person hopes to join. Dissociative groups are those whose values or behavior an individual reject.

Business Research - Literature Review on Consumer Behavior

1 Consumer Behavior
@ Social Factors 2 Families Family of orientation: parent and sibling. Even if the buyer no longer interacts very much with their parent, their influence can be significant. Family of procreation: ones spouse and children. Before the wife have usually acted as the familys main purchasing agent but now the marketers should see both men and women as target.

Business Research - Literature Review on Consumer Behavior

2 Motivation Theories
Motivation can be seen as the reason for behavior. A motive is a construct representing an unobservable inner force that stimulates and compels a behavioral response and provides specific direction to that response. A Motive is a reason for an individual to do something.

Business Research - Literature Review on Consumer Behavior

2 Motivation Theories
Freuds Motivation Theory:
Psychological forces shaping peoples behavior are largely unconscious, a person cannot fully understand his or her own motivations.

Maslows Motivation Theory:


People are driven by particular needs at particular times. Human needs are arranged in hierarchy from most to least pressing. People will try to satisfy their most important needs first.

Herzbergs Motivation Theory:


Two-factor theory that distinguishes dissatisfiers from satisfiers. The absence of dissatisfiers is not enough to motivate a purchase >>> satisfiers must be present. Implications: avoid dissatisfies, identify and supply the major satisfiers

Business Research - Literature Review on Consumer Behavior

2 Motivation Theories

Business Research - Literature Review on Consumer Behavior

2 Motivation Theories
@ Maslows Motivation Theory: Maslows hierarchy of needs is based on four premises:
All humans acquire a similar set of motives through genetic endowment and social interaction. Some motives are more basic or critical than others:
Physiological: Food, water, sleep, and, to an extent, sex, are physiological motives. Safety: Seeking physical safety and security, stability, familiar surroundings, and so forth are manifestations of safety needs. Belongingness: Belongingness motives are reflected in a desire for love, friendship, affiliation, and group acceptance. Esteem: Desires for status, superiority, self-respect, and prestige are examples of esteem needs. These needs relate to the individuals feelings of usefulness and accomplishment. Self-Actualization: This involves the desire for self-fulfillment, to become all that one is capable of becoming.

The more basic motives must be satisfied to a minimum level before other motives are activated. As the basic motives become satisfied, more advanced motives come into play.

Business Research - Literature Review on Consumer Behavior

2 Motivation Theories
McGuires Psychological Motives Theory: Classification system that organizes various motives into 16 categories to help marketers isolate motives likely to be involved in various consumption situations:
Cognitive Preservation Motives Need for Consistency (Need for Attribution, Need to Categorize & Need for Objectification) Cognitive Growth Motives Need for Autonomy (Need for Stimulation, Teleological Need, Utilitarian Need) Affective Preservation Motives Need for Tension Reduction (Need for Expression, Need for Ego Defense, Need for Reinforcement)

Business Research - Literature Review on Consumer Behavior

3 - The Buyer Decision Process

The Five-Stage Model


Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-purchase Behavior

Business Research - Literature Review on Consumer Behavior

3 - The Buyer Decision Process


The Five-Stage Buyer Decision Model 1 Problem Recognition
buyer recognizes a problem or need through Internal stimuli: a persons normal needs such as hunger or thirst will rises to a threshold level and becomes a drive External stimuli: a person may see a television ad for a Italy vacation which triggers thoughts about the possibility of making a purchase.

Business Research - Literature Review on Consumer Behavior

3 - The Buyer Decision Process


The Five-Stage Buyer Decision Model 2 Information Search
Most consumer search for limited amounts of information. Different Information sources influence in the buying decision: Personal / Commercial / Public / Experiential Search dynamics: the consumers learn about brands and their features:

Business Research - Literature Review on Consumer Behavior

3 - The Buyer Decision Process


The Five-Stage Buyer Decision Model 3 Evaluation of Alternatives:
Consumer compares competitive brand information and make a value judgment Most current models see the consumer forming judgments largely on a conscious and rational basis.
First, the consumer is trying to satisfy a need. Second, the consumer is looking for certain benefits from the product solution. Third, the consumer sees each product as bundle of attributes with varying abilities for delivering the benefits sough to satisfy this need.

Consumer will pay the most attention to attributes that deliver the soughafter benefits

Business Research - Literature Review on Consumer Behavior

3 - The Buyer Decision Process


The Five-Stage Buyer Decision Model 4 Purchase Decision
Expectancy-value model: good aspects of a product can help to overcome perceived bad aspects) but consumers often take mental shortcuts (like irrational rules of thumb) Intervening factors: even if consumers form brand evaluations, two general factors can intervene the purchase intention and the purchase decision: Attitudes of others & Unanticipated situational factors

Business Research - Literature Review on Consumer Behavior

3 - The Buyer Decision Process


The Five-Stage Buyer Decision Model 5 Postpurchase Behavior: After purchase consumers can experience dissonance (noticing certain dissatisfactory features, hearing favorable things about other brands and will be alert to information that supports his or her decision.
Postpurchase satisfaction: Closeness between expectations and the products perceived performance. The larger gap between expectations and performance, the greater the dissatisfaction. Postpurchase action: Satisfied customers > purchase product again vs. dissatisfied consumers > abandon or return the product.

Thank you

for your Attention


Business Research - Group 2
Mukhamejanova Lyudmila | MEW2011559049 Palita Suntisuk | MEW2011559063 Pornchulee Ratanacharoensiri | MEW2011559018 Stefan Reindl | MEW2011559002 Thanathat Srichaiyongpanich | MEW2011559033