Consumer Behavior

Understand how consumer

cognitive (thinking) processes and

limitations, affect, beliefs, social

influences, and other contextual

factors influence consumer

decision making, choices, and

behavior

Appreciate how these insights can

be used to design and implement

effective marketing strategies

Appreciate individual and segment

differences in process and outcome

I'm the fellow who goes into a restaurant, sits down and patiently waits while

the waitresses do everything but take my order. I'm the fellow who goes into a

department store and stands quietly while the sales clerks finish their little

chitchat. I'm the man who drives into a gasoline station and never blows his

horn, but waits patiently while the attendant finishes reading his comic book.

"Yes, you might say, I'm a good guy. But do you know who else I am? I am the

fellow who never comes back, and it amuses me to see you spending

thousands of dollars every year to get me back into your store, when I was

there in the first place, and all you had to do to keep me was to give me a little

service; show me a little courtesy."

Source: From a Better Business Bureau bulletin submitted by An Arkansas

Reader to Dear Abby

Defining Consumer

Behavior

Consumer Behavior is the Process Involved When Individuals or Groups Select, Use, or Dispose of Products,

Services, Ideas or Experiences (Exchange) to Satisfy Needs and

Desires.

Problem Recognition

Consumer Information

Processing

Evaluation of Alternatives

Purchase

Post Purchase Evaluation

Problem Recognition

Our goal is to find a solution to the

problem by each potential customer so

therefore we have to identify the need or

the problem first.

Ex.

-The need to constantly communicate with

their children even travelling.

Then we clearly want to identify the

problem to reduce or eliminate parents’

anxiety over the welfare of their children.

Information Search

After recognizing the need, consumer is motivated to conduct and information search.

Sources of information:

Internal Sources- personal experiences with the product

External Sources-outside consumers personal experiences

Time, effort and expense dedicated to information search depends on: Degree of risk involved in the purchase

Amount of expertise with the product category

Actual cost of the search

Ex. You went to facebook and able to see some online advertisements.

Customers evaluate products as bundles of attributes Brand attributes

Product features

Aesthetic attributes

Price

Customers place different levels of importance on attributes

Important considerations in the evaluation stage: Products must be in the evoked set

Consumers’ choice criteria must be understood

Marketing programs must be designed to influence consumers’ opinions about product or brand image

Evaluation of Alternatives

Cellphone

Iphone 5s

Samsung Galaxy Note 3

LG L7

Iphone 5s

Consumer Buying Decision Process

Successive Sets Involved in Consumer Decision Making

Purchase intention and the act of buying are distinct concepts

Potential intervening factors between intention and buying (car example): Unforeseen circumstances

Angered by the salesperson or sales manager

Unable to obtain financing

Customer changes mind

Key issues in the purchase decision stage: Product availability

Possession utility

Purchase Decision

Possible outcomes in the postpurchase stage: (1) Delight

(2) Satisfaction

(3) Dissatisfaction

Postpurchase Evaluation

1. Consumer & Psychological Variables

2. Social Influences

3. The Purchase Situation

Consumer & Psychological Influences

MOTIVATION

- The motivation to buy, happens as a result of the drive stimulus which in

result of an unsatisfied need.

-The need that moves a person to action is called “drive”

PERCEPTION

- People see, hear, taste, and feel differently. What may be beautiful to

one may not be beautiful to another person.

-Process by which an individual selects, organizes, and interprets

information to form a cohesive picture about an entity

Perceptions affect consumer behavior

However, remember that individuals can perceive the same entity in

different ways

LEARNING

- a change of behavior occurring as a result of past experience.

-repeat purchase possibly if being satisfied.

LIFESTYLE

- The individual’s mode of living is called lifestyle and may be

identified by his activities, interest, and opinion.

ATTITUDE

- The buying behavior affected by his attitude.

-It may be defined as person’s feeling about

something like product, an advertisement, idea….

It may be affected by:

1. Family influences

2. Peer Group Influences

3. Information

4. Experience

5. Personality

SOCIAL INFLUENCES Decision could come from:

1. PERSONAL INFLUENCES

- The view, opinions, and behavior of other persons oftentimes influence

the purchasing decision of the consumer.

:: Opinion Leaders ::Word-of-mouth

2. REFERENCE GROUPS

- These are groups of people that are looked upon by a concerned

member when forming an attitude about a particular topic.

3. The FAMILY

4. SOCIAL CLASS- refers to a group people who have approximately equal position

as viewed by others in the society.

5. CULTURE- The set of values, beliefs, attitude and behavior patterns shared by

the members of a society and transmitted to the next generation through

socialization

The Purchase Situation

Purchase Task- is derived from the reason WHY the consumer is making a

purchase and this affects buying behavior.

Social Surroundings- refer to the situation of people present in the purchase

area.

Physical Surroundings

Temporal Effects- The TIME of the day the purchase is made and the time

available for shopping.

Antecedent States- consumer’s mood or the amount of money he has in his

pocket can affect his buying behavior.