Consumer Behavior

Why Study Consumer Behavior?

Our guesses about people are inaccurate.

 This is because human nature leads us to believe that
other people think like us

false consensus

e.g. – price elasticity

 Stereotyping
e.g. – kids are the purchasers of video games
Nearly a quarter of all video games are purchased by
consumers aged 40 and older
What is Consumer Behavior?

“The study of the cognitive, emotional, and

physical activities associated with the
perception, evaluation, choice, acquisition, use,
and disposition of goods and services.”
Classifying Products

Consumer Industrial

Search Goods
Expense Items

Experience Goods
Capital Items

Credence Goods
The Consumer Buying Process

Problem Information Evaluation of Purchase Postpurchase

Recognition Seeking Alternatives Decision Evaluation
Decision-Making Process:
Step 1: Problem Recognition

Occurs when consumer sees a significant

difference between current state and ideal
state
Maslow’s Hierarchy of Needs

Behavior is driven by lowest, unmet need

Decision-Making Process:
Step 1: Problem Recognition

Marketers can develop ads that stimulate

problem recognition
Decision-Making Process:
Step 2: Information Search

Consumers need adequate information to

make a reasonable decision

 Consumers search memory and the environment

for information

 Internet search engines, portals, or “shopping

robots” are being increasingly relied upon
Decision-Making Process:
Step 3: Evaluation of Alternatives

A consumer identifies a small number of
products in which he or she is interested,
then narrow choices and compare pros/cons

 Evaluative criteria:

 Product characteristics consumers use to

compare competing alternatives
 Marketers identify and discuss important
evaluative criteria
Decision-Making Process:
Step 4: Product Choice

Consumers often rely on heuristics to make
decisions

 Heuristics:


A mental rule of thumb used for a speedy

decision, such as . . .

Price equals quality

Brand loyalty

Country of origin
Decision-Making Process:
Step 5: Postpurchase Evaluation

Consumer satisfaction/dissatisfaction after
purchase of product is critical

 Degree of satisfaction is influenced by whether or

not expectations of product quality are
met/exceeded

 Marketing communications must create accurate

expectations for the product

 Cognitive dissonance is common

Herzberg Two-Factor Theory of
Motivation

Two-Factor View

Absent (Hygiene Factors) Present

(Dissatisfaction) (No Dissatisfaction)

Absent (Motivators) Present

(No Satisfaction) (Satisfaction)
Perception

 Process by which we select, organize,

and interpret information from outside
world

5-15
 Factors necessary for perception
Stimuli Exposure

Attention

Selective attention
Selective retention Comprehension
Selective distortion
Acceptance

Retention Purchase
Learning

A relatively permanent change in behavior

caused by information or experience

Behavioral learning
 Conditioning

Cognitive learning
 Observational learning
 https://www.youtube.com/watch?v=kOLCwXS0Tbw
Attitudes

Attitudes:
 Lasting evaluations of a person, object, or issue

 Three attitude components

Affective (feeling): emotional response

Cognitive (knowing): beliefs or knowledge

Connative (doing): intention to do something

 Marketers decide which attitude component will

drive consumer preferences
Personality

Personality:
 The set of unique psychological characteristics
that consistently influences the way a person
responds to situations in the environment

Personality traits:
 Innovativeness, materialism, self-confidence,
sociability, need for cognition

Self-concept
Social Influences on Consumer Decisions

We are members of many groups that

influence our buying decisions:

 Culture/subcultures
 Social class
 Group memberships
 Opinion leaders
 Gender roles
Thank You