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Analyzing BUYING BEHAVIOR

the why of buy

Understanding Consumer
Behavior

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Definition
• Consumer behavior reflects the totality of
consumers’ decisions with respect to the
acquisition, consumption, and disposition of
goods, services, time, and ideas by (human)
decision making [over time].

What is Consumer Behavior?

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Consumer Behavior Study

Consumer behavior describes the process used to

make purchase decisions. Its study includes
analysis of factors that influence choice and use.
Understanding customers reduces uncertainty and
helps marketers be more efficient and effective.

Model of Buyer Behavior

Marketing and
Other Stimuli Buyer Responses
Marketing Product Choice
• Product Brand Choice
Buyer’s Black Box
• Price Dealer Choice
• Place
• Promotion
Other • Buyer’s Characteristics
Purchase Timing
• Economic • Decision Process
Purchase Amount
• Technological
• Political
• Cultural
?

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Buyer Decision Process

4 Purchase
Decision
3Evaluation 5 Postpurchase
of Alternatives Behavior
2 Information
Search

1Need
Recognition Actual state vs. desired state
Triggered by internal or external stimuli

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A Simple Model of
Consumer
Decision Making

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Psychological Factors

Motivation

Beliefs &
Attitudes

Perception Learning

Ads often appeal to

consumers who are
looking for
information to help
them evaluate
products.

Copyright 2007 by Prentice Hall 16 - 12

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Levels of Problem Solving

Routinized Extensive
Limited Problem
Response Problem
Solving
Behavior Solving

Low Involvement High Involvement

Involvement Continuum

The amount of time and effort a buyer invests in the

search, evaluation, and decision processes of consumer
behavior.

Consumer Buying Decisions

Low involvement and Consumer Involvement High involvement
Frequently purchased Infrequently purchased
Inexpensive Expensive
Little risk High risk
Little information needed Much information desired

Routine Limited Extensive

Response Decision Decision
Behavior Making Making

Less
Involvement: The amount of time and effortMore
a
Involvement Involvement
buyer invests in the search, evaluation, and
decision processes of consumer behavior.
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Routine Response Behavior

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

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Limited Decision Making

 Low levels of involvement

 Low to moderate cost goods
 Evaluation of a few alternative brands
 Short to moderate time to decide

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Extensive Decision Making

 High levels of involvement

 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance

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Factors Determining the Level of

Consumer Involvement
Previous Experience

Interest

Perceived Risk of Negative

Consequences

Situation

Social Visibility

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Marketing Implications
of Involvement

High-involvement Extensive and informative

purchases require: promotion to target market

In-store promotion,
eye-catching package
Low-involvement
design, and good displays.
purchases require: Coupons, cents-off,
2-for-1 offers

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Social Factors

Reference
Groups

Roles &
Family
Statuses

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Maslow’s Hierarchy
of Needs

Appealing to Higher Income Consumers

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Psychological Influences within an Individual

Needs

Wants

Drives

Consumers seek benefits to match

needs and wants!

Personality and Lifestyle Analysis

Personality: how people

see things

Activities

Interests

Opinions

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Other Social Influences

Reference Groups

Opinion Leaders

Culture

The family as a decision-making unit

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