CHAPTER 5

Consumer behaviour

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 Consumer behaviour
LO
5.1
Articulate the steps in the consumer buying
process.
LO
5.2
Describe the difference between functional and
psychological needs.
LO
5.3 Describe factors that affect an information
search.
LO
5.4 Discuss postpurchase outcomes.
LO
5.5
List the factors that affect the consumer
decision process.
LO
5.6
Describe how involvement influences the
consumer decision process.
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Concept map

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 The consumer decision
process

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Need recognition

Need
recognition

Functional needs Psychological needs

continued
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Need recognition (cont.)

Source: Courtesy of Rydges Hotels & Resorts

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Search for information

Consumer refers
Internal search to their own
for information memories and
knowledge

Information
search

Consumer refers
External search to friends, family,
for information salespeople and
commercial
exposure

continued
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Factors affecting consumers’
search processes

Perceived Perceived
benefits vs costs

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Actual or perceived risk

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Evaluation of alternatives:
attribute sets

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Evaluative criteria
List some evaluative criteria when
buying clothes for an important job
interview.
Determinant attributes:
• Product features that are
important to the buyer
• Features on which competing
brands or stores are perceived
to differ

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 Consumer decision rules
Shutterstock.com/March Marcho

• Compensatory: to trade one product characteristic

against another
• Non-compensatory: to make a choice based on one
characteristic regardless of the others
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 Multi-attribute model

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Purchase and consumption
Increase
conversion
rate

Reduce real or
virtual
abandoned
carts

Merchandise in
stock

Reduce the
actual waiting
time

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 Postpurchase

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 What Will a Dissatisfied Customer Do?
Complain and seek
redress from the company

Public Take legal action

Complain to private or
government agency
Take Action

Stop using the

service provider
Dissatisfaction
Private
Occurs Complain to family,
friends, colleagues, etc.

Do Not
Take Action

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 Customer satisfaction
• Marketers can take several steps to
ensure postpurchase satisfaction,
such as:
– demonstrating correct product use
– building realistic expectations
– providing a money-back guarantee
– encouraging feedback
– periodically making contact with
customers.

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 Customer loyalty
• Loyalty is a combination of
purchasing behaviour and attitude
(liking the brand).
• Loyal customers will only buy
certain brands and shop at certain
stores, and they include no other
firms in their evoked set.

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Factors influencing the
consumer decision process

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 Psychological factors:
motives

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 Psychological factors:
attitudes
• An attitude is a person’s enduring
evaluation of their feelings about, and
behavioural tendencies towards, an
object or idea.
• Attitudes are learned, long lasting and
develop over time.
• Attitudes are comprised of cognitive,
affective and behavioural components.
continued
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Psychological factors:
perception
Perception is the
process by which
consumers select,
organise and interpret
information to form a
meaningful picture of
the world.
Source: © 2016 reproduced courtesy of Brisbane City Council

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 Psychological factors:
learning
Learning is a change in a person’s thought process
or behaviour that arises from experience.

© Justin Sullivan/ Staff/Getty Image

Showcasing watch capabilities and benefits as the ‘wearable part
of your everyday life’ provides the consumer with information to
form selection attributes or store in memory for future purchase.

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 Social factors: family

© Pressmaster/Shutterstock
Children influence parents’ purchasing decisions.

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 Social factors: reference
groups

© David M. Benett/Contributor/Getty Images

Celebrities such as Beyoncé and Jay Z, considered a
‘power couple’, can be part of a consumer’s reference
group, influencing their purchasing decisions.

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Social factors: culture
• Exists in the form of visible artefacts
– behaviour
– dress
– symbols
– physical settings
– ceremonies
• Also manifests as underlying values
– thought processes
– beliefs
– assumptions
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 McDonald’s Adjusts its operations
to Reflect Different Cultures

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McDonald’s Adjusts its operations
to Reflect Different Cultures

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Situational factors
• Situational factors tend to override
psychological and social factors
when it comes to the actual act of
purchasing:
– purchasing situation
– shopping situation
– temporal states.

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 Involvement and consumer
buying decisions

Elaboration likelihood model

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Supermarket Psychology
• https://www.youtube.com/watch?v=Rm
EI3_NhZj4

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 Summing up
• The decision-making process involves five steps:
needs recognition, information search, evaluation of
alternatives, purchase and postpurchase.
• Factors that will influence the decision-making
process include social, psychological and situational
aspects.
• The more interested consumers are, the more likely
they are to engage in extended decision making.
• Less involved consumers will engage in limited,
habitual or impulse purchasing.

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