Perspectives on

Consumer Behavior
 Consumer Decision Making

Decision Stage Psychological Process

Problem recognition Motivation

Information search Perception

Alternative evaluation Attitude formation

Purchase decision Integration

Postpurchase evaluation Learning

 Sources of Problem Recognition

New
New Needs
Needs
Out
Out of
of Stock
Stock Dissatisfaction
Dissatisfaction or
or Wants
Wants

Related
Related Product
Product Market-Induced
Market-Induced New
New
Purchase
Purchase Recognition
Recognition Products
Products
Maslow’s Hierarchy of Needs

Self-actualization
Self-actualization needs
needs (self-
(self-
development,
development, realization)
realization)

Esteem
Esteem needs
needs (self-esteem,
(self-esteem, recognition,
recognition,
status)
status)

Social
Social needs
needs (sense
(sense of
of belonging,
belonging, love)
love)

Safety
Safety needs
needs (security,
(security, protection)
protection)

Physiological
Physiological needs
needs (hunger,
(hunger, thirst)
thirst)
Nurturance, Love and Belonging

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Freudian Psychoanalytic Approach

Strong
Strong Symbolic
Symbolic
inhibitions
inhibitions meanings
meanings

Subconscious
Subconscious
Mind
Mind

Complex
Complex and
and Surrogate
Surrogate
unclear
unclear motives
motives behaviors
behaviors
Probing the Minds of Consumers

In-depth
In-depth Association
Association
Interviews
interviews
Interviews
interviews tests
tests

Projective
Projective Focus
Focus groups
groups
techniques
techniques
 “MR” Not All Positive or All Negative

Pros Cons

Reveals
Reveals hidden
hidden Qualitative
Qualitative results
results
feelings,
feelings, drives
drives from
from very
very small
small
and
and fears
fears samples
samples

Highlights
Highlights Varying,
Varying,
importance
importance ofof
Motivation
Motivation subjective
subjective
symbolic
symbolic factors
factors Research
Research interpretations
interpretations

Shifts
Shifts attention
attention Difficult
Difficult or
or
from
from “what”
“what” to
to impossible
impossible toto
“how”
“how” and
and “why”
“why” verify
verify or
or validate
validate
Innovative Ads Get Noticed
A print of a cup of
Folgers coffee was
placed on top of
manhole covers in
New York City,
USA. Holes on the
print allows the
steam to come
out. Wordings
around the cup
reads ‘Hey, City
That Never
Sleeps. Wake up.”
from Folgers.
 Innovative Ads Get Noticed

An ambient exercise to promote Eatalica burgers. A ‘Caution Wet

Floor’ board was placed near an Eatalica burger signboard. The
copy on the board reads ‘Oogling at the burger may involuntarily
cause drooling which may in turn lead to a wet floor. Issued for
your safety by the management of Eatalica restaurant’. Eatalica is
an American-Italian Food Joint in Chennai, India.
Information Search

Personal
sources

Mark
et
sourc
es
Pub
sou lic
rce
s
Per
exp son
eri al
en
ce
The Selective Perception Process

Selective
Selective exposure
exposure

Selective
Selective attention
attention

Selective
Selective comprehension
comprehension

Selective
Selective retention
retention
Using Color to Focus Attention
Using Color to Focus Attention

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Evaluation of Alternatives

All available brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand F Brand I

Brand M

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Two Forms of Evaluative Criteria

Evaluative
Evaluative Criteria
Criteria

Objective
Objective Subjective
Subjective

Price
Price Style
Style
Warranty
Warranty Appearance
Appearance
Service
Service Image
Image
 Different Perspectives: Marketer’s View

Tractio Too
n okay? pricy?
Enough
power?

Product is seen
as a bundle of
attributes or
characteristics.
 Different Perspectives: Consumer’s View
Will the neighbors
How does it cut be impressed with
the taller grass? my lawn?

How close can I

get to the Is it going to be as
shrubs? fun to use later this
summer?

Will it pull
that Will I enjoy having
little trailer I more time for golf?
saw at the
store?

Product Is Seen As
A Set of Outcomes
Functional
Functional Psychological
Psychological
Consumer Attitudes Focus on Objects

Individuals
Individuals Products
Products

Ads
Ads Brands
Brands
Attitudes
Attitudes
Toward:
Toward:
Media
Media Companies
Companies

Retailers
Retailers Organizations
Organizations
Ways to Change Attitudes

Change
Change beliefs
beliefs about
about an
an important
important attribute
attribute

Change
Change perceptions
perceptions of
of the
the
value
value of
of an
an attribute
attribute

Add
Add aa new
new attribute
attribute to
to the
the
attitude
attitude formation
formation mix
mix

Change
Change perceptions
perceptions or
or beliefs
beliefs about
about
aa competing
competing brand
brand
Adding Attributes Changes Attitudes

Panasonic
introduced its
projector
focusing on
weight,
brightness
and wireless
in an attempt
to influence
customer’s
attitude
 Purchase Decision and Evaluation

Pre-
Pre- Post
Post
Decision
Decision
evaluation
evaluation evaluation
evaluation

Integration
Integration Purchase
Purchase Satisfaction
Satisfaction
processes
processes intention
intention

Dis-
Dis-
Heuristics
Heuristics Brand satisfaction
Brand loyalty
loyalty satisfaction

Affect
Affect Cognitive
Cognitive
referral
referral dissonance
dissonance
decision
decision rule
rule
 How Consumers Learn

Thinking
Thinking Conditioning
Conditioning Modeling
Modeling

Intellectual
Intellectual Based
Based onon Based
Based on
on
evaluation
evaluation conditioning
conditioning emulation
emulation
comparing
comparing through
through (copying)
(copying) of
of
attributes
attributes with
with association
association or
or respected
respected
values
values reinforcement
reinforcement examples
examples
 Conditioning

Classical Conditioning
The individual participates in learning process
through receiving stimuli

Instrumental / Operant Conditioning

The individual must actively operate or act on some
aspect of the environment for learning to occur.
Classical Conditioning Process

Unconditioned
Unconditioned Unconditioned
Unconditioned
stimulus
stimulus response
response
(grapes)
(grapes) (fresh
(fresh and
and moist)
moist)

Association develops through

contiguity and repetition

Conditioned
Conditioned
stimulus Conditioned
Conditioned
stimulus response
(Lancôme response
(Lancôme (fresh
moisturizer) (fresh and
and moist)
moist)
moisturizer)
Classical Conditioning for Cosmetics-
Lancôme associates its products with the moisture of grapes

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Instrumental Conditioning Process

Positive
Positive or
or negative
negative
Behavior
Behavior consequences
consequences occur
occur
(consumer
(consumer uses
uses (reward
(reward or
or
product
product or
or service)
service) punishment)
punishment)

Increase
Increase or or decrease
decrease
in
in probability
probability of
of
repeat
repeat behavior
behavior
(purchase)
(purchase)
Instrumental Conditioning
Learning from Aishwarya Rai

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cognitive Learning Process

Goal
Goal

Purposive
Purposive behavior
behavior

Insight
Insight

Goal
Goal achievement
achievement
External Influences on Consumer Behavior

Culture

Subculture

Social class

Reference
groups
Situational
determinants
Subcultural Ads Appeal to Shared
Beliefs, Values and Norms

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin