HI5004: Marketing Management

Lecture 4: Consumer behaviour

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Topics

- Consumer behaviour model

- Factors influence consumer behaviour

- Decision Making Process

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Consumer Master title style

• Consumer behavior
– The study of how individuals,
groups, and organizations
select, buy, use, and dispose
of goods, services, ideas, or
experiences to satisfy their
needs and wants
– Influenced by cultural, social,
and personal factors

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 What
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• Cultural factors
– Culture
– Subcultures
– Social classes

https://www.youtube.com/watch?v=JchALYBVEGw

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 What
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• Social factors

Reference groups

Cliques

Family

Roles and status

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 Click
Whattoimpacts
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consumer behaviour?

• Personal factors
– Age/stage in life cycle
– Occupation and economic
circumstances
– Personality and self-concept
– Lifestyle and values

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Motivation

Memory Perception

Emotions Learning

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Motivation

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Perception

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Learning

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Emotions

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Memory

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 Model
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Motivation
A need becomes a motive when it is aroused to a sufficient level of
intensity to drive us to act.

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Motivation

Maslow’s Herzberg’s
Freud’s Hierarchy Two-Factor
Theory of Needs Theory

Behavior Behavior Behavior is

is guided by is driven by guided by
subconscious lowest, dissatisfiers
motivations unmet need and
satisfiers

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 Maslow’s
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 Key
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Perception
The process by which we select,
organize, and interpret
information inputs to create a
meaningful picture of the world

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 Perception
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Selective attention

Selective distortion

Selective retention

Subliminal perception

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 Key
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Learning
Induces changes in our behavior arising from
experience
Drive and cues
Generalization and discrimination

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 Key
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• Emotions

– Many different kinds of

emotions can be linked
to brands

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 Key
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• Memory
– Short-term vs. long-term
memory
– Associative network memory
model
– Brand associations
– Memory encoding
– Memory retrieval

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 The Buying
Click to editDecision Process
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• The consumer typically

passes through five stages
– Problem recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Post-purchase behavior

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 The Buying
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• Problem recognition

– The buyer recognizes a

problem/need triggered by
internal/external stimuli
https://www.youtube.com/watch?v=T6hhn2ZGI_8

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 The Buying
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• Information search

✓ Personal sources
✓ Commercial sources
✓ Public sources
✓ Experiential sources

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 Sets
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 The Buying
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• Evaluation of alternatives
– Expectancy-value model

Applied Business Statistics for Managers Holmes Institute

 The Buying
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• Purchase decision
– Compensatory vs. non-compensatory models

Conjunctive heuristic

Lexicographic heuristic

Elimination-by-aspects heuristic

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 Intervening
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 The Buying
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• Post-purchase behavior
– Post-purchase satisfaction

– Post-purchase actions

– Post-purchase uses and disposal

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 Customer
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 ClickTakeaways
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1. We have examined how consumer characteristics influence

buying behaviour?
2. And learned what major psychological processes influence
customer responses to marketing.
3. We examined how customers make purchasing decisions.
4. Also examined and discussed how consumers
are irrational – they do not always
follow a rational process.

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