Consumer Behavior

Theoretical
Frameworks
Objectives

• To understand the different theories on Consumer Behavior

that will serve as foundation in the study of the course
• To determine commonality and differentiation in the theories
 Topics for Discussion

Consumer Behavior Value Framework

Wheel of Consumer Analysis

Buyer’s Black Box

Model of Consumer Behavior

The Consumer
Behavior Value
Framework (CVF)
Represents consumer
behavior theory illustrating
factors that shape
consumption-related
behaviors and ultimately
determine the value
associated with
consumption.
Internal Influences

Things
Thingsthat
thatare
areprocessed
processedinside
inside
the
themind
mindofofthe
theconsumer
consumer


Psychology
Psychologyof ofthe
the Personality
Personalityofofthe
the
consumer
consumer consumer
consumer
-involves
-involvesboth
both -certain
-certaincharacteristics
characteristics
cognitive and
andtraits
traitsthat
thathelp
cognitiveand
and define
help
affective defineananindividual
individual
affectiveprocesses
processes
Consumption Involves a great deal of
Process decision-making, thus
represents a consumer
decision-making process

This process is
influenced by internal
and external factors
Two Types of Value
•• Value
Valueisisaapersonal
personal
assessment
assessmentof ofthe
thenet
net
worth
worth obtained froman
obtained from an
activity.
activity.

Utilitarian
Utilitarian

Hedonic
Hedonic
Two Types of
Value contd.
• Utilitarian value is derived from a product
that helps the consumer solve problems and
accomplish tasks.
• Hedonic value is the immediate gratification
that comes from experiencing some activity.
Relationship
Quality

Reflects the
connectedness
between a consumer
and a retailer, brand or
service provider
External Influences

Social
Social Environment
Environment
Includes people & groups who help shape a
Includes people & groups who help shape a
consumer’s
consumer’s
everyday
everydayexperiences
experiences

Situational
Situational Influences
Influences
Unique to a time or place that can affect
Unique to a time or place that can affect
consumer
consumerdecision-making
decision-makingand
andthe
thevalue
value
received from consumption
received from consumption
Wheel of
Consumer
Analysis
Wheel of • A framework developed by J. Paul Peter and
Consumer Jerry Olson to help marketers understand
Analysis consumer behavior in order to design their
strategies
Elements of
Wheel of • Marketing Strategy - a set of stimuli
Consumer placed in a consumers’ environment
Analysis – designed to influence their affect,
cognition, and behavior
Marketing
Strategy
Elements of Wheel of Consumer Analysis –
Consumer Affect and Cognition
Affect
• Refers to feelings about
stimuli and events
• Responses can be favorable
or unfavorable
• Responses can vary in
intensity
Elements of Wheel of Consumer Analysis –
Consumer Affect and Cognition

Cognition
• Refers to thinking
• Mental structures and
processes involved in
thinking,
understanding, and
interpreting stimuli
and events
• Aspects of cognition
are both conscious
and automatic
Elements of
Wheel of Environment - all physical and social
Consumer characteristics of a consumers’ external world
Analysis – • Physical objects
The • Spatial relationships

Environmen
• Social behavior of other people

t
 • Can analyze the environment at two levels
Elements of • Macro
Wheel of • Climate
• Economic conditions
Consumer • Political system
Analysis – • General landscape
• Micro
The • Tangible physical and social aspects
of immediate surroundings
Environment
Elements of Wheel of Consumer
Analysis – The Environment
• Social environment
• All social interactions between and among people
• Macro social environment
• Culture
• Subculture
• Social class
 Marketing stimuli consists of the 4Ps – product,
price, place and promotion

Elements of
Wheel of
Consumer
Analysis Other stimuli include major forces and events in
-The the buyer’s environment: economic,
technological, political and cultural
Environmen
t
Elements of
the Wheel of • Behavior – refers to the physical actions of
Consumer consumers that can be directly observed
and measured by others such as watching
Analysis - TV ads, visiting a store or buying products

Behavior
 • Reciprocal system – any of the elements
could be either a cause or an effect of a
change at any particular time
• Examples
Characteristic • A consumer receives a free sample
of a new liquid detergent
s of the Wheel (environment); tries it out, like it
(affect); and then purchase it
of Consumer (behavior)
• A consumer is dissatisfied with his
Analysis current brand of laundry detergent
(affect); the consumer inspects other
brands (environment); and then
purchase it (behavior)
 • Dynamic – the elements of the wheel
change continuously
• Multi-level – these elements can be
Characteristic analyzed at several different levels
• Society (people fear the corona virus
s of the Wheel (affect); they go to stores to buy
of Consumer supplements and masks
(environment); they wear masks and
Analysis take supplements (behavior)
• Industry
• Market Segment
• Individual
 • The model assumes that what takes place in the
consumer’s “black box” can be inferred from the
study of certain stimuli (marketing and environmental
factors) and responses (buyer’s response)

Buyer’s
Black Box
 • Has two parts: buyer’s characteristics and decision
process
• Buyer’s characteristics affecting consumer behavior
are cultural, social, personal and psychological

Buyer’s
Black Box
 • The buyer’s characteristics include: attitude,
motivation, perception, personality, lifestyle,
knowledge

Buyer’s
Characteristics
 Affected by internal and external factors
Buyer’s Decision
Process
Steps include need recognition,
information search, evaluation of
alternatives, purchase decision and post-
purchase behavior
 Attitudes and
preferences

Buyer responses Buyer’s brand and

company relationship
behavior

What, when, where

and how often a
consumer buys
Model of
Consumer
Behavior
Model of Consumer
Behavior

• Encompasses four
domains: the consumer
culture, the
psychological core, the
process of making
decisions, and consumer
behavior outcomes and
issues
Model of Consumer
Behavior

• The Consumer’s Culture

includes Social
Influences, Consumer
Diversity, Household and
Social Class Influence,
and Psychographics such
as Values, Personality &
Lifestyles
Model of
Consumer
Behavior

• The Psychological
Core comprise of
Motivation, Ability &
Opportunity;
Exposure to
Comprehension;
Memory &
Knowledge; and
Attitude Formation &
Change
Model of Consumer
Behavior
• The Process of
Making Decisions
involve Problem
recognition &
Information search;
Judgement &
decision-making;
and Post-Decision
Processes
Model of
Consumer
Behavior
• Consumer Behavior
Outcomes & Issues are
Innovation; Symbolic
Consumer Behavior*; &
Marketing ethics, and Social
Responsibility
*Purchase of product with
symbolic meaning
attached such as social
position, self-identity
References

• Babbin, B & Harris E. (2018). CB8. Boston, MA: Cengage Learning

• Hoyer, W. & MacInnis, D. (2018). Consumer Behavior in the 21st
Century 7th edition. Philippines: Cengage Learning Asia Pte Ltd
• Kotler, P. & Armstrong G. (2018). Principles of Marketing 17th Global
Edition. Singapore: Pearson Education South Asia Pte Ltd.
• Peter, J.P. & Olson, J. (2010). Consumer Behavior and Marketing
Strategy 9th edition. Singapore: McGraw-Hill Asian
 Assessment
Briefly describe each of the
model/theory discussed

What are common and unique

among the different models?

In summary what are the factors

affecting consumer behavior?
Classify them as internal and
external factors.