Consumer

Behavior—How
People Make
Buying
Decisions
SIT DOLOR AMET
 QUESTIONS TO CONSIDER
Why do you buy the things you do?
How did you decide to go to the college you’re attending?
Where do like to shop and when?
Do your friends shop at the same places or different
places?
1. THE LEARNINGOBJECTIVES
CONSUMER’S 1. Understand what the stages of the
DECISION- buying process are.
MAKING
PROCESS 2. Distinguish between low-involvement
buying decisions and high-involvement
buying
decisions.
 The study of when, where,
Consumer
Behavior and how people buy things
and then dispose of them.
 Advertising that appears on
Search
Advertising the Web pages pulled up
when online searches are
conducted.
 Stage 1. Need Recognition
Here the buying process starts with
identifying his need or a problem based
Stages in the on the situation he faces and it also plays
Buying a vital role in preparing a marketing
Process strategy for a seller/marketer to identify
the category of consumers to target their
product or service.
 Stage 2. Search for Information
The customer collects the information
through different sources such as mouth to
mouth, billboards, banners, advertisements in
Stages in the television, radio, social media, internet, etc.
Buying
Process All the platforms where the customer gets the
information is the golden place for a marketer
to create an opportunity to pitch his product
or service by promoting and converting him
for a sale.
 Stage 3. Product Evaluation
Any buyer evaluates the product and services
with the available alternatives, there are several
factors he considers like brand, features, cost,
Stages in the benefits, and trust-worthiness are compared.
Buying Many times even though a particular brand
Process
performs best, the consumer opt for the
product/service which he has used before.
Evaluative Criteria: Certain characteristics of products
consumers consider when they are making buying
decisions.
 Stage 4. Product Choice and Purchase
This is the stage where the buyer intends to
purchase the specific product/service after
evaluating the alternatives and considering the
factors including his income level, benefits,
Stages in the discounts, and offers.
Buying
But there will be high chances that at the last
Process
moment also the consumer can change his mind
and opt for different products/services.
Many times people buy the products without
having the need only because of the marketing
strategies implemented by the seller.
 Stage 5. Post purchase Evaluation
In the final step of customer decision making process, it is
somewhere a lot of marketers just completely forget about.
It is important to build a healthy long lasting relationship
with customers. Frequently, the consumer engages in post-
Stages in the purchase behavior. Buying one item may lead to the
Buying purchase of another. Re-evaluation of the purchase occurs
when the consumer rates the alternative selected against
Process
performance standards.

Post purchase dissonance

A situation in which consumers rethink their decisions
after purchasing products and wonder if they made the
best decision.
 Stage 6. Disposal of the Product
There was a time when neither manufacturers nor
consumers thought much about how products got
disposed of, so long as people bought them. But that’s
changed. How products are being disposed is becoming
Stages in the extremely important to consumers and society in
Buying general.
Process Computers and batteries, which leech chemicals into
landfills, are a huge problem. Consumers don’t want to
degrade the environment if they don’t have to, and
companies are becoming more aware of the fact.
Planned obsolescence A deliberate effort by companies
to make their products obsolete, or unusable, after a
period of time.
 Consumers don’t necessarily go through all
the buying stages when they’re considering
purchasing product.
1.2 Low- How?
Involvement
*You skip stages 1 through 3 and buy products on impulse.
versus High-
*Impulse buying: Purchases that occurs with no planning or
Involvement
forethought.
Buying
Impulse buying brings up a concept called level of
Decisions
involvement—that is, how personally important or interested
you are in consuming a product. For example, you might see a
roll of tape at a check-out stand and remember you need one.
Or you might see a bag of chips and realize you’re hungry.
 Low-involvement products
Products that carry a low risk of failure
and/or have a low price tag for a specific
1.2 Low- individual or group making the decision.
Involvement
versus High-
Involvement Consumers often engage in routine response
Buying behavior when they buy low-involvement
Decisions products—that is, they make automatic
purchase decisions based on limited
information or information they have gathered
in the past.
 By contrast, high-involvement products
Carry a high risk to buyers if they fail, are
complex, or have high price tags. A car, a house,
1.2 Low- and an insurance policy are examples. These
Involvement items are not purchased often. Buyers don’t
versus High- engage in routine response behavior when
Involvement purchasing high-involvement products.
Buying
Decisions Instead, consumers engage in what’s called
extended problem solving, where they spend a
lot of time comparing the features of the
products, prices, warrantees, and so forth.
 High-involvement products

1.2 Low- Limited problem solving

Involvement falls somewhere in the middle.
versus High- Consumers engage in limited problem
Involvement
Buying solving when they already have some
Decisions information about a good or service but
continue to search for a bit more
information.
 L E A R N I N G O B J E C T I V E S;

2. 1. Describe the situational factors that

SITUATIONAL
FACTORS affect what consumers buy and when.
THAT AFFECT 2. Explain what marketing professionals
PEOPLE’S can do to make situational factors work to
BUYING
BEHAVIOR their advantage.
 Situational influences are temporary conditions
that affect how buyers behave—whether they
actually buy your product, buy additional
2. products, or buy nothing at all from you.
SITUATIONAL
FACTORS They include things like physical factors, social
THAT AFFECT factors, time factors, the reason for the buyer’s
PEOPLE’S purchase, and the buyer’s mood.
BUYING You have undoubtedly been affected by all
BEHAVIOR these factors at one time or another. Because
businesses very much want to try to control
these factors.
 2.1 The Consumer’s Physical Situation
Marketing professionals take physical factors
2. such as a store’s design and lay out into account
SITUATIONAL when they are designing their facilities.
FACTORS Presumably, the longer you wander around a
THAT AFFECT facility, the more you will spend. Grocery stores
PEOPLE’S frequently place bread and milk products on the
BUYING opposite ends of the stores because people often
BEHAVIOR need both types of products. To buy both, they
have to walk around an entire store, which of
course, is loaded with other items they might see
and purchase.
 2.1 The Consumer’s Physical Situation
•Store locations are another example of a physical
factor.
2.
SITUATIONAL •Physical factors like these—the ones over which
FACTORS firms have control—are called ATMOSPHERIC. In
THAT AFFECT addition to store locations, they include the music
PEOPLE’S played at stores, the lighting, temperature, and even
BUYING the smells you experience.
BEHAVIOR •Research shows that “strategic fragrancing” results
in customers staying in stores longer, buying more,
and leaving with better impression of the quality of
stores’ services and products.
 2.1 The Consumer’s Physical Situation
•Mirrors near hotel elevators are another example.
Hotel operators have found that when people are
2.
busy looking at themselves in the mirrors, they don’t
SITUATIONAL
feel like they are waiting as long for their elevators.
FACTORS
THAT AFFECT •Firms often attempt to deal with adverse physical
PEOPLE’S factors such as bad weather by making their products
BUYING more attractive during unattractive times. For
example, many resorts offer consumers discounts to
BEHAVIOR
travel to beach locations during hurricane season.
 2.1 The Consumer’s Physical Situation
•Crowding is another situational factor. Have you
ever left a store and not purchased anything because
2.
it was just too crowded? Some studies have shown
SITUATIONAL
that consumers feel better about retailers who
FACTORS attempt to prevent overcrowding in their stores.
THAT AFFECT However, other studies have shown that to a certain
PEOPLE’S extent, crowding can have a positive impact on a
BUYING person’s buying experience. The phenomenon is
BEHAVIOR often referred to as “herd behavior”.
 2.2 The Consumer’s Social Situation
The social situation you’re in can significantly affect
2. what you will buy, how much of it, and when.
SITUATIONAL Perhaps you have seen Girl Scouts selling cookies
FACTORS outside grocery stores and other retail establishments
and purchased nothing from them. But what if your
THAT AFFECT
neighbor’s daughter is selling the cookies? Are you
PEOPLE’S
going to turn her down, or be a friendly neighbor and
BUYING
buy a box (or two)?
BEHAVIOR
 2.3 The Consumer’s Time Situation
The time of day, the time of year, and how much time
2. consumers feel like they have to shop also affects
SITUATIONAL what they buy. Researchers have even discovered
FACTORS whether someone is a “morning person” or “evening
person” affects shopping patterns.
THAT AFFECT
PEOPLE’S Examples:
BUYING
BEHAVIOR
 2.4 The Reason for the Consumer’s
Purchase
2. The reason you are shopping also affects the amount
SITUATIONAL of time you will spend shopping.
FACTORS Are you making an emergency purchase?
THAT AFFECT
Are you shopping for a gift?
PEOPLE’S
BUYING
BEHAVIOR
 2.5 The Consumer’s Mood
•Have you ever felt like going on a shopping spree?
2. •At other times wild horses couldn’t drag you to a
SITUATIONAL Mall?
FACTORS
THAT AFFECT •People’s moods temporarily affect their spending
PEOPLE’S patterns.
BUYING
BEHAVIOR
 LEARNINGOBJECTIVES
1. Explain how a person’s self-concept and
ideal self affects what he or she buys.
3. PERSONAL
FACTORS 2. Describe how companies market products to
THAT AFFECT people based on their genders, life stages, and
PEOPLE’S ages.
BUYING
3. Explain how looking at the lifestyles of
BEHAVIOR
consumers helps firms understand what they
want to purchase.
 3.1 The Consumer’s Personality
Personality describes a person’s disposition
as other people see it.
3. PERSONAL
FACTORS
THAT AFFECT The following are the “Big Five”
PEOPLE’S personality traits that psychologists discuss
BUYING
frequently:
BEHAVIOR
 1. Openness. How open you are to new
experiences.
2. Conscientiousness. How diligent you are.
3. PERSONAL
FACTORS 3. Extraversion. How outgoing or shy you
THAT AFFECT are.
PEOPLE’S 4. Agreeableness. How easy you are to get
BUYING
along with.
BEHAVIOR
5. Neuroticism. How prone you are to
negative mental states.
 3.2 The Consumer’s Self-Concept
Marketers have had better luck linking
3. PERSONAL people’s self-concept to their buying
FACTORS behavior. Your self-concept is how you
THAT AFFECT see yourself—be it positive or negative.
PEOPLE’S
BUYING Your ideal self is how you would like to
BEHAVIOR see yourself—whether it’s prettier, more
popular, more eco-conscious, or more
“goth.”
 Marketing researchers believe people buy products to
enhance how they feel about themselves—to get
themselves closer to their ideal selves, in other words.
3. PERSONAL The slogan “Be All That You Can Be,”
FACTORS Which for years was used by the U.S. Army to recruit
THAT AFFECT soldiers, is an attempt to appeal to the self-concept.
PEOPLE’S Presumably, by joining the U.S. Army, you will
BUYING become a better version of yourself, which will, in
BEHAVIOR turn, improve your life. Many beauty products and
cosmetic procedures are advertised in a way that’s
supposed to appeal to the ideal selves people are
searching for. All of us want products that improve
our lives.
 Marketing researchers believe people buy products to
enhance how they feel about themselves—to get
themselves closer to their ideal selves, in other words.
3. PERSONAL The slogan “Be All That You Can Be,”
FACTORS Which for years was used by the U.S. Army to recruit
THAT AFFECT soldiers, is an attempt to appeal to the self-concept.
PEOPLE’S Presumably, by joining the U.S. Army, you will
BUYING become a better version of yourself, which will, in
BEHAVIOR turn, improve your life. Many beauty products and
cosmetic procedures are advertised in a way that’s
supposed to appeal to the ideal selves people are
searching for. All of us want products that improve
our lives.
 3.3 The Consumer’s Gender
Everyone knows that men and women buy
different products. Physiologically speaking,
3. PERSONAL
FACTORS they simply need different product—different
THAT AFFECT underwear, shoes, toiletries, and a host of other
PEOPLE’S products. Men and women also shop differently.
BUYING In general, men have a different attitude about
BEHAVIOR shopping than women do. You know the old
stereotypes: Men see what they a want and buy it, but
women “shop ‘til they drop.”
 3.4 The Consumer’s Age and Stage of Life
You have probably noticed that the things you
buy have changed as you age. When you were a
3. PERSONAL
FACTORS child, the last thing you probably wanted as a
THAT AFFECT gift was clothing. As you became a teen,
PEOPLE’S however, cool clothes probably became a bigger
BUYING priority. Don’t look now, but depending on the
BEHAVIOR stage of life you’re currently in, diapers and
wrinkle cream might be just around the corner.
 3.4 The Consumer’s Age and Stage of Life
Your chronological age, or actual age in years,
is one thing. Your cognitive age, or how old
3. PERSONAL
FACTORS you perceive yourself to be, is another. In other
THAT AFFECT words, how old do you really feel? A person’s
PEOPLE’S cognitive age affects the activities one engages
BUYING in and sparks interests consistent with the
BEHAVIOR person’s perceived age.
 3.4 The Consumer’s Age and Stage of Life
Cognitive age is a significant predictor of
consumer behaviors, including people’s dining
3. PERSONAL
FACTORS out, watching television, going to bars and
THAT AFFECT dance clubs, playing computer games, and
PEOPLE’S shopping. How old people “feel” they are has
BUYING important implications for marketing
BEHAVIOR professionals.
 3.5 The Consumer’s Lifestyle
To better understand consumers and connect with
them, companies have begun looking more closely at
3. PERSONAL consumers’ lifestyles. This often includes asking
FACTORS consumers to fill out extensive questionnaires or
THAT AFFECT conducting in-depth interviews with them.
PEOPLE’S Researchers ask people what they do—that is, how
BUYING
they spend their time and what their priorities,
BEHAVIOR
values, and general outlooks on the world are.
Where do they go other than work? Who do they like
to talk to? What do they talk about?
 3.5 The Consumer’s Lifestyle
A number of research organizations examine lifestyle
and psychographic characteristics of consumers.
3. PERSONAL Psychographics combines the lifestyle traits of
FACTORS consumers (for example, whether they are single or
THAT AFFECT
PEOPLE’S married, wealthy or poor, well-educated or high
BUYING school dropouts) and their personality styles with an
BEHAVIOR analysis of their attitudes, activities, and values to
determine groups of consumers with similar
characteristics.
Your personality describes your disposition as other people see it. Market
researchers believe people buy products to enhance how they feel about
themselves. Your gender also affects what you buy and how you shop.
Women shop differently than men. However, there’s some evidence that this
is changing. Younger men and women are beginning to shop more alike.
People buy different things based on their ages and life stages.
A person’s cognitive age is how old he “feels” himself to be. To further
understand consumers and connect with them, companies have begun
looking more closely at their lifestyles (what they do, how they spend their
Time, what their priorities and values are, and how they see the world).
4. PSYCHOLOGICAL FACTORS THAT
AFFECT PEOPLE’S BUYING BEHAVIOR
L E A R N I N G O B J E C T I V E S;
1. Explain how Maslow’s hierarchy of needs
works.
2. Outline the additional psychological factors that
affect people’s buying behavior.
 4.1 Motivation

Motivation is the inward drive we have to

get what we need.
4.
PSYCHOLOGICAL
FACTORS THAT
AFFECT In the mid-1900s, Abraham Maslow, an
PEOPLE’S
BUYING American psychologist, developed the
BEHAVIOR hierarchy of needs
 4.2 The Consumer’s Perception
Perception is how you interpret the world
4. around you and make sense of it in your
PSYCHOLOGICAL brain. You do so via stimuli that affect your
FACTORS THAT
AFFECT different senses—sight, hearing, touch,
PEOPLE’S smell, and taste.
BUYING
BEHAVIOR How you combine these senses also
makes a difference.
 4.2 The Consumer’s Perception
Selective perception- The process
4. whereby a person filters information based
PSYCHOLOGICAL on how relevant it is to them.
FACTORS THAT
AFFECT Selective retention- The process whereby
PEOPLE’S
BUYING a person retains information based on how
BEHAVIOR well it matches their values and beliefs.
 4.2 The Consumer’s Perception
Shock advertising- Advertising designed to
4. startle(SURPRISE) people so as to get
PSYCHOLOGICAL their attention.
FACTORS THAT
AFFECT Subliminal advertising- Advertising that is
PEOPLE’S
BUYING not apparent to consumers but is thought
BEHAVIOR to be perceived subconsciously by them.
 4.3 Learning
Learning refers to the process by which
4. consumers change their behavior after
PSYCHOLOGICAL they gain information or experience a
FACTORS THAT
AFFECT product.
PEOPLE’S
BUYING It’s the reason you don’t buy a crummy
BEHAVIOR product twice. Learning doesn’t just affect
what you buy, however. It affects how you
shop.
 4.3 Learning

4. Operant conditioning- A type of behavior

PSYCHOLOGICAL
FACTORS THAT that’s repeated when it’s rewarded.
AFFECT
PEOPLE’S
BUYING
BEHAVIOR
 4.4 Consumer’s Attitude
Attitudes are “mental positions” or emotional
4. feelings people have about products, services,
PSYCHOLOGICAL companies, ideas, issues, or institutions.
FACTORS THAT Attitudes tend to be enduring, and because
AFFECT
PEOPLE’S they are based on people’s values and beliefs,
BUYING they are hard to change. That doesn’t stop
BEHAVIOR sellers from trying, though. They want people to
have positive rather than negative feelings
about their offerings.
Psychologist Abraham Maslow theorized that people have to fulfill their
basic needs—like the need for food, water, and sleep—before they can
begin fulfilling higher-level needs. Perception is how you interpret the
world around you and make sense of it in your brain. To be sure their
advertising messages get through to you, companies often resort to
repetition. Shocking advertising and subliminal advertising are two other
methods. Learning is the process by which consumers change their
behavior after they gain information about or experience with a product.
Consumers’ attitudes are the “mental positions” people take based on
their values and beliefs. Attitudes tend to be enduring and are often
difficult for companies to change.
5. SOCIETAL FACTORS THAT AFFECT
PEOPLE’S BUYING BEHAVIOR
LEARNINGOBJECTIVES
1. Explain why the culture, subcultures, social classes,
and families consumers belong to affect their buying
behavior.
2. Describe what reference groups and opinion leaders
are.
 Situational factors—the weather, time of
day, where you are, who you are with,
and your mood—influence what you
5. SOCIETAL buy, but only on a temporary basis. So
FACTORS THAT do personal factors, such as your
AFFECT
PEOPLE’S gender, as well as psychological factors,
BUYING such as your self-concept. Societal
BEHAVIOR factors are a bit different.
They are more outward. They depend
on the world around you and how it
works.
 5.1 The Consumer’s Culture

5. SOCIETAL Culture refers to the shared beliefs, customs,

FACTORS THAT behaviors, and attitudes that characterize a
AFFECT society. Your culture prescribes the way in
PEOPLE’S which you should live. As a result, it has a huge
BUYING
effect on the things you purchase.
BEHAVIOR
 5.2 The Consumer’s Subculture(s)

5. SOCIETAL A subculture is a group of people within a

FACTORS THAT culture who are different from it, but who have
AFFECT something in common with one another—
PEOPLE’S common interests, vocations or jobs, religions,
BUYING
ethnic backgrounds, sexual orientations, and
BEHAVIOR
so forth
 5.2 The Consumer’s Subculture(s)

5. SOCIETAL Marketing products based the ethnicity of

FACTORS THAT consumers is useful. However, it could become
AFFECT harder to do in the future because the
PEOPLE’S boundaries between ethnic groups are blurring.
BUYING
BEHAVIOR
 5.3 The Consumer’s Social Class
A social class is a group of people who have
the same social, economic, or educational
5. SOCIETAL status in society. To some degree, consumers
FACTORS THAT
AFFECT in the same social class exhibit similar
PEOPLE’S purchasing behavior.
BUYING
Table 3.1 shows seven classes of American
BEHAVIOR
consumers along with the types of car brands
they might buy.
 5.4 Reference Groups and Opinion
Leaders
Reference groups
5. SOCIETAL
FACTORS THAT are groups a consumer identifies with and
AFFECT wants to join. If you have ever dreamed of
PEOPLE’S being a professional player of basketball or
BUYING
another sport, you have a reference group.
BEHAVIOR
 5.4 Reference Groups and Opinion
Leaders
Opinion leaders
5. SOCIETAL
FACTORS THAT are people with expertise in certain areas.
AFFECT Consumers respect these people and often ask
PEOPLE’S their opinions before they buy goods and
BUYING
services. An information technology specialist
BEHAVIOR
with a great deal of knowledge about computer
brands is an example.
 5.5 The Consumer’s Family
Most market researchers consider a
person’s family to be one of the biggest
5. SOCIETAL determiners of buying behavior.
FACTORS THAT
AFFECT Like it or not, you are more like your
PEOPLE’S parents than you think, at least in terms of
BUYING
your consumption patterns. The fact is that
BEHAVIOR
many of the things you buy and don’t buy
are a result of what your parents do and do
not buy.
 5.5 The Consumer’s Family
The soap you grew up using, toothpaste
your parents bought and used, and even
5. SOCIETAL the “brand” of politics you lean toward
FACTORS THAT
AFFECT (Democratic or Republican) are examples
PEOPLE’S of the products you are likely to favor as
BUYING an adult.
BEHAVIOR
Culture prescribes the way in which you should live and affects the things you
purchase. A subculture is a group of people within a culture who are different from
it, but who have something in common with one another— common interests,
vocations or jobs, religions, ethnic backgrounds, sexual orientations, and so forth.
To some degree, consumers in the same social class exhibit similar purchasing
behavior. Most market researchers consider a person’s family to be one of the
biggest determiners of buying behavior. Reference groups are groups that a
consumer identifies with and wants to join. Companies often hire celebrities to
endorse their products to appeal to people’s reference groups. Opinion leaders are
people with expertise in certain areas. Consumers respect these people and often
ask their opinions before they buy goods and services.