Lecture 1
Level 300
Title: Introduction to Consumer

• Understand how consumer cognitive (thinking)
processes and limitations, affect, beliefs, social
influences, and other contextual factors influence
consumer decision making, choices, and
• Appreciate how these insights can be used to
design and implement effective marketing
• Appreciate individual and segment differences in
process and outcome.

Psychology of Marketing
 Decision making.
 Information search.
 Attitudes, beliefs, categorization.
Consumer research methods, learning.

Defining consumer
Consumer Behaviour is the process
Involved when individuals or groups select,
use, or dispose of products, services, ideas
or experiences in exchange to Satisfy Needs
and desires.

The consumer
Why would consumers buy products and
• They identify a need that makes them
incomplete or insecure.
• Consumers use products and services to
satisfy their needs.
• They either need it to solve an immediate
problem or as a security.

Consumer behaviour

The behaviour
• The display of consumer behaviour can be
categorized into three.
• Pre-purchase behaviour
• Purchasing behaviour
• Post-purchase behaviour

The self concept

Actual self and ideal self

Actual self & ideal self

Issues for discussion
• How does a consumer decides that he needs a
• What are the best sources of information to lean
on for alternative products?
• Is acquiring a product stressful or a pleasant
• Does the product provide pleasure or perform its
intended function?
• What determines whether a consumer is satisfied
with a product or not?

Factors affecting decision

Consumer decision making

Consumer decision making

Evoked set

A narrowed down set of
alternatives that the customer is
considering to make the last
selection and purchase.

Problem recognition
Consumer needs can be triggered by
internal or external stimuli.
Needs become wants.
Leads to behaviour.
Triggers information search.

Information search
Sources of information:
-Personal Sources
-Internal Sources
-External Sources
Time, effort and expense dedicated to
information search.

Consumer problem
• Consumer problem:

Discrepancy between ideal and
actual state--e.g., consumer:
– Has insufficient hair
– Is hungry
– Has run out of fuel

• Problems can be solved in several ways--e.g., stress
reduction - vacation, movie, hot bath, medication.

Information search
Sources of information:
-Personal Sources
-Internal Sources
-External Sources
Time, effort and expenses dedicated to
information search.

Evaluation of alternatives

Consideration set
Analyze product attributes
Use cut off criteria [pros/cons]
Multi-attribute models

• To buy or not to buy…
• Marketing determines which attributes are
most important in influencing a consumers’
choice (differentiation…later)

Post purchasing behaviour
• Cognitive dissonance:
– Did I make a good decision?
– Did I buy the right one? Get a good value?

• Marketers minimize this through:

Effective communication
Follow up