Chapter 3:

Consumer Behavior

Business and Economics School - Universidad de Piura

Principles of Marketing (MK)
Daniel Dulanto, MSc.
 Content
▪ Definition and Importance
▪ Consumers Characteristics
▪ Peruvian Consumers Characteristics
▪ Buyer Decision Process
▪ Buying Theories

MK - Marketing Daniel Dulanto, MSc.

 Definition

It refers to the behavior of final consumers when buying products and

services. This behavior varies depending on the personal characteristics
of each one and the product itself. These phenomena are studied
through the science of psychology and marketing

*A final consumer can be: individuals and households who buy goods and services for their
own consumption.

Source: Principles of Marketing – Kotler & Armstrong (2017)

MK - Marketing Daniel Dulanto, MSc.
 Relevance of Understanding the Consumers

1. First step of the Process of Marketing

2. We are not all equal
3. Minimize risk in marketing decision
making

MK - Marketing Daniel Dulanto, MSc.

 Consumers Characteristics

Different factors affect how consumers make decisions regarding the

purchase of products:

CULTURALS SOCIALS PERSONALS PSYCHOLOGICAL

• Culture • Reference • Age • Motivation

• Social Class Group • Ocupation • Perception
• Family • Lifestyle • Personality
• Economic • Learning
Situation • Attitudes

MK - Marketing Daniel Dulanto, MSc.

Peruvian Consumers

✓32 millions of inhabitants

✓3 geographical regions
✓Dominant ethnicity: mixed
✓Predominant NSE: C
✓Majority religion: Catholicism

MK - Marketing Daniel Dulanto, MSc.

 Buyer Decision Process
Steps that an individual (s) follows when making a purchase
decision

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MK - Marketing Daniel Dulanto, MSc.

Buyer Decision Process

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CONSUMER’S BLACK BOX

Mental space where internal and external

stimulus are processed when making a
purchase decision

MK - Marketing Daniel Dulanto, MSc.

Participants of the Purchase Decision

People are social beings by nature, therefore, no consumer makes

decisions in isolation.
We are surrounded by an environment that directly and indirectly
influences the decisions we make when choosing products or services.
This social environment can be: family, friends, acquaintances, partner,
among others.

Source: Principles of Marketing – Kotler & Armstrong (2017)

MK - Marketing Daniel Dulanto, MSc.
Participants of the Purchase Decision

1. Initiator: the first person who recognizes the need and has the
initiative to make the purchase

2. Influencer (s): person (s) who have a certain influence on the

decision maker

3. Decision-maker / Decider: person who makes the decision (UTD)

4. Buyer: person who performs the purchase action

5. End user (s): person (s) who will use or consume the product

MK - Marketing Daniel Dulanto, MSc.

Theory of Consumer Choice
It is a theoretical framework that proposes a basic model in which the
science of psychology and marketing try to explain the behavior of
consumers when choosing and using products.

This model separates the decision-making process into 2 stages:

CHOOSE USE

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Theory of Consumer Choice

This theory postulates that all consumers have a different behavior,

according to the type of product or service they are going to buy.

1. HABITUAL BEHAVIOR
2. UTILITY BEHAVIOR
3. EGO-EXPRESSIVE BEHAVIOR

MK - Marketing Daniel Dulanto, MSc.

Theory of Consumer Choice
HABITUAL BEHAVIOR

Also called low-engagement behavior.

These purchases provide solutions to routine

consumer problems. They represent a very low risk,
financially and personally.

Purchases made with a habitual behavior are called

routine purchases.

MK - Marketing Daniel Dulanto, MSc.

Theory of Consumer Choice
UTILITY BEHAVIOR

Also called high-engagement (rational) behavior.

These purchases provide solutions to specific

problems that involve a high risk, both personally
and financially. Therefore, they are characterized
by being very thoughtful decisions.

The utility buying process is usually long and

rational. The consumer is very focused on the
value that the product offers.
MK - Marketing Daniel Dulanto, MSc.
Theory of Consumer Choice
EGO-EXPRESSIVE BEHAVIOR

Also called high-involvement (emotional) behavior.

These purchases provide solutions to personal

problems of the consumer, problems related to the
ego or self esteem.

It is characterized for being little thought decisions,

almost impulse. It is a 100% emotional decision,
phrases such as: "I loved it", "I fell in love with it"
are usually used to describe ego-expressive
behavior.
MK - Marketing Daniel Dulanto, MSc.
Theory of Consumer Choice

The same consumer has a different type of behavior if they buy detergent,
a computer or jewelry.
HABITUAL UTILITY EGO-EXPRESSIVE

Is important to understand what type of behavior does consumers have when

buying a product, in order to design marketing strategies accordingly.

MK - Marketing Daniel Dulanto, MSc.

 Chapter 3:
Consumer Behavior

Business and Economics School - Universidad de Piura

Principles of Marketing (MK)
Daniel Dulanto, MSc.