Understanding

Consumer Behavior

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 LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:

1. Describe the (5) stages in the consumer

purchase decision process.
2. Distinguish among 3 variations of the
consumer purchase decision process:
extended, limited, and routine problem
solving.
3. Identify the major psychological
influences on consumer behavior.
4. Identify the major sociocultural influences
on consumer behavior.

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 Agenda
• Purchase Decision Process – 5 stages
• Involvement and Problem Solving – 3
types
• Influences on the consumer purchase
decision process – 3 types
• Psychological Influences
• Sociocultural Influences

• Situational Influences

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 Purchase Decision Process

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 FIGURE 4-1 The purchase decision
process consists of five stages.

Jump to Appendix 1 long imag

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e description
 CONSUMER PURCHASE DECISION PROCESS
PROBLEM RECOGNITION

• Purchase Decision Process

1. Problem Recognition – “Kick-off”
Starts with the showing/ recognizing Difference
Between:
• Consumer’s Ideal Situation
• Consumer’s Actual Situation

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 CONSUMER PURCHASE DECISION PROCESS
INFORMATION SEARCH

2. Information Search: Seeking Value

– Internal Search – memory – reliable but restricted

– External Search
• Personal Sources – reliable but subjective
• Public Sources – objective but not fit
• Marketer-Dominated Sources – detailed but biased

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 CONSUMER PURCHASE DECISION PROCESS
ALTERNATIVE EVALUATION

3. Alternative Evaluation Stage:

1. Suggests Criteria for Purchase
2. Yields Brands that Meet Criteria
3. Develops Value Perception
• Evaluative Criteria
• Consideration Set

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 FIGURE 4-2 Common Consumer Selection
Criteria for Evaluation of Smartphones

Jump to Appendix 2 long imag

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e description
 Case: Fancl

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 CONSUMER PURCHASE DECISION PROCESS
PURCHASE DECISION

4. Purchase Decision:
Buying Value
- better pd./ service, and/or better price

• Make the Purchase

Decision by:
1. Decide from Whom to Buy
2. Decide When to Buy

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 Omnichannel (not only O2O)

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 CONSUMER PURCHASE DECISION PROCESS
POSTPURCHASE BEHAVIOR

5. Postpurchase Behavior: Realizing

Value
• Customer Satisfaction Studies
– Satisfied Customers Tell 3 People
– Dissatisfied Customers Tell 9 People!
• Cognitive Dissonance

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 What is “Dissonance”?

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 Summary 1: Purchase Process

1. _____ = Perceived a Need – what will be

valued?
2. Info search = _____ Value
3. Evaluation of Alternatives = _____ Value
4. Purchase = _____ Value
5. Postpurchase = _____ Value

• What determines the process TYPE?

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 Psychological Influences

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 CONSUMER PURCHASE DECISION PROCESS
CONSUMER INVOLVEMENT AND PROBLEM SOLVING

• Consumer Involvement Affects Problem

Solving
• Involvement
– Extended Problem Solving (High
Involvement)
– Limited Problem Solving (Medium
Involvement)
– Routine Problem Solving (Low
Involvement)

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 FIGURE 4-3 Comparison of problem-solving
variations: extended, limited, and routine.

Jump to Appendix 3 long imag

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e description
 CONSUMER PURCHASE DECISION PROCESS
CONSUMER INVOLVEMENT & MARKETING STRATEGY

• Low Involvement
– Common Products
– Maintain Product Quality
– Avoid Stockouts
– Reduce Cognitive Dissonance with Ads
• High Involvement
– Consumers Seek Product Information
– Use Comparative Ads
– Use Personal Selling

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 Influences on the consumer purchase decision
process from both internal and external
sources

I. II.

III.
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 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
1a. MOTIVATION
• Motivation
• Hierarchy of Needs
– Physiological Needs
– Safety Needs
– Social Needs
– Personal Needs
– Self-actualization Needs

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 FIGURE 4-5 Maslow’s Hierarchy of needs

Jump to Appendix 6 long imag

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e description
 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
1a. PERSONALITY

• Key Traits – Enduring Characteristics

of a Person, Such as:
• Assertiveness
• Extroversion
• Compliance
• Dominance, etc.
• Personality
• Self-Concept

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 Self-concept marketing
– Case: Dove

Dove Real Beauty Sketches

https://www.youtube.com/watch?v=XpaOjMXyJGk
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 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
1b. CONSUMER PERCEPTION
• Perception
– Selective Perception:
• Selective Exposure – come to class or not
• Selective Comprehension – agree with me or not
• Selective Retention – remember I told you before or not
• Subliminal Perception

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 MAKING RESPONSIBLE DECISIONS
The Ethics of Subliminal Messages

• FTC – “Subliminal
Messages are
Deceptive.”
• But are Not Illegal
• Are Subliminal
Messages Unethical?

https://
www.campaignlive.co.uk/article/
marlboro-coke-kfc-used-sublimi
nal-advertising/1383489
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 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
CONSUMER PERCEPTION

• Strategies to Reduce Perceived Risk

– Obtain Seals of Approval
– Secure Endorsements
– Provide Free Trials/Samples
– Give Extensive Instructions
– Provide Warranties/Guarantees

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 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
1c. CONSUMER LEARNING (1 of 2)
• Learning
• Behavioral Learning Example:
– Drive (Need)
– Cue (Symbol)
– Response (Action)
– Reinforcement (Reward)

https://
www.youtube.com/watch?v=IG
QmdoK_ZfY

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 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
CONSUMER LEARNING (2 of 2)

• Cognitive Learning
– learning without doing
• Brand Loyalty

Jump to Appendix 7 long imag

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e description
 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
1d. CONSUMER VALUES, BELIEFS, AND ATTITUDES (1 of 2)

Attitude Formation – Learned Response

to Objects in Consistent Way (Favorable
or Unfavorable)
– Attitude
– Values Affect Attitudes
– Beliefs – subjective perception
• Belief + value = attitude

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 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
CONSUMER VALUES, BELIEFS, AND ATTITUDES (2 of 2)

Marketers Use 3 Approaches to Change

Attitudes:
1. Change Beliefs About a Brand’s
Attributes (score of each attribute)
2. Change Perceived Importance of
Attributes (i.e. value)
3. Add New Product Attributes
– change belief and value
Attitudes, not
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attributes
 Change what?

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 PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
1e. CONSUMER LIFESTYLE
• Lifestyle
– How People Spend
Their Time and
Resources
– Lifestyle Analysis
Useful for
Targeting
Consumers

Jump to Appendix 8 long imag

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e description
 Identifying Your VALS Profile:
What Motivates You?

VALS Examines
Intersection of
Psychology,
Demographics, and
Lifestyles

VALS Survey
Web site

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 FIGURE 4-6 VALS™ Identifies 8 Consumer
Segments
• INNOVATORS Sophisticated, Change
Leading, Active, Take Charge

Copyright © 2010 by Strategic Business Insights. All rights reserved.

• THINKERS Information Seeking,
Satisfied, Reflective
• ACHIEVERS Successful, Career and
Family Oriented, Moderate
• EXPERIENCERS Risk Seeking,
Enthusiastic, Impulsive
• BELIEVERS Conservative,
Conventional, Traditional
• STRIVERS Trendy, Approval Seeking,
Disenfranchised
• MAKERS Homegrown, Self Sufficient,
Macho, Family Oriented
• SURVIVORS Passive, Risk Averse,
Constrained
VALS Types

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 sidetrack

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 China's Consumer Groups
http://www.strategicbusinessinsights.com/vals/international/china.shtml

• Accomplisheds seek strategic advantages to improve their position in

society. They do not wish to call attention to themselves.
• Pacesetters want to be recognized by peers and to be seen as having a
role or social position; they may even want fame.
• Preservers provide a counterbalance to the wave of ambition, the pursuit
of money, and the desire for power in society.
• Sustainers are loyal to a traditional way of life, even though in aspects of
their daily life, they may look like other groups that are not traditional.
• Traditional Achievers want to keep up with upwardly mobile Chinese but
feel insecure about how and whether to do so.
• Trendy Achievers have the greatest desire to be seen as successful and
worthy of admiration.
• Experiencers seek personal advancement and look for innovative ways to
move ahead in a career or area of interest.
• Adapters are similar to Experiences but do not have the explicit drive for
personal advancement or exploration.
• Most Provincials live in rural villages. They believe that having children
and being financially responsible are important aspects of success.

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 Summary 2 – Psychological
influence
• Motivation – 5 levels of needs:
–P S S P S
• Perception:
– Selective P = SE SC SR
• Learning:
–B L and C L
• Attitude:
–B +V =A
– Change 1. 2. 3.
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 Sociocultural Influences

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 SOCIOCULTURAL INFLUENCES ON
CONSUMER BEHAVIOR
2a. PERSONAL INFLUENCE
• Opinion Leaders
• Word of Mouth
“KOL”
– Buzz Can Be Either Positive or Negative

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 SOCIOCULTURAL INFLUENCES ON
CONSUMER BEHAVIOR
2b. REFERENCE GROUPS

• Reference Groups
– Associative Group
• Brand Community
– Aspiration Group
– Dissociative Group

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 SOCIOCULTURAL INFLUENCES ON
CONSUMER BEHAVIOR
2c. FAMILY INFLUENCE

• Consumer Socialization – e.g. O Camp

• Family Life Cycle
– Today, Traditional Families are only 20% of
all U.S. Households
– Remaining 80% include Single Parents,
Unmarried Couples, Divorced, etc.

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 FIGURE 4-7 Modern family life cycle
stages and flows.

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e description
 Age and Life-Cycle Stage

• People change the goods and services

they buy over their lifetimes

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 SOCIOCULTURAL INFLUENCES ON
CONSUMER BEHAVIOR
FAMILY INFLUENCE

• Family Decision-Making
– Two Styles:
• Spouse-Dominant
• Joint
– Family Member Roles:
1. Information Gatherer
2. Influencer
3. Decision Maker
4. Purchaser
5. User

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 Consumption:
Husband or wife is the decider

50
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 SOCIOCULTURAL INFLUENCES ON
CONSUMER BEHAVIOR
2d. CULTURE AND SUBCULTURE INFLUENCES

• Culture
• Subcultures

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 CONSUMER PURCHASE DECISION PROCESS
3. SITUATIONAL INFLUENCES (a minor one)

• Situational Influences Affect Purchase

Decisions
• Situational Influences
1. Purchase Task
2. Social Surroundings
3. Physical Surroundings
4. Temporal Effects
5. Antecedent States

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 Summary 3 – Sociocultural
Influences
1. Personal:
– O L , WOM
2. Reference Gp:
-A Gp., A Gp., D Gp.
3. Family:
- FLC
- FDM: I ,I ,D ,P
U
4. Culture/ Subculture
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