Chapter 3

Consumer Behaviour
and Target Audience
Decisions

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Learning Objectives

1. Describe the consumer decision-making

process and demonstrate how it relates to
marketing communication.
2. Distinguish internal psychological processes,
their influence on consumer decision making,
and implications for marketing communication.
3. Contrast how the consumer decision-making
process varies for different types of purchases
and the effects on marketing communication.

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Learning Objectives

4. Compare the similarities and differences of

target market and target audience.
5. Identify the options for making a target
audience decision for marketing
communication.
6. Express why a profile of the target audience is
important for message, media, and IMC tool
decisions.

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Consumer Decision-Making
Process

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Consumer Behaviour

 Processes and activities which people engage in

when searching for, selecting, purchasing,
using, evaluating, and disposing of products and
services to satisfy needs and desires.

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Consumer Decision-Making

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Consumer Decision-Making

Decision Stage Psychological Process

Need Recognition Motivation

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Need Recognition

 A difference between ideal state and actual state

 A want is a “felt need” that is shaped by a person’s
knowledge and personality.
 A great many advertised products satisfy a “consumer
want” rather than a “consumer need”.
 Sources of “need recognition” may be internal or
external, simple or complex, as a result of changes in
a consumer’s current or desired state.
 Advertising can be used to highlight a consumer’s
dissatisfaction with a currently used product.

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Consumer Motivation

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Consumer Motivation

 The way a consumer perceives a situation and

becomes driven to resolve it will influence the
remainder of the decision process.

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Motivation

 Maslow’s Hierarchy of Needs provides a

framework for marketers to use in determining
what needs their products and services satisfy.
 Advertising campaigns can then be developed to
demonstrate how the brand fulfills those needs.
▪ https://www.youtube.com/watch?v=kX_1fNiFh1k

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Consumer Decision Making

Decision Stage Psychological Process

Need Recognition Motivation

Information Search Perception

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Information Search

Information
Search

Internal External
Search Search

Scan memory to recall

Undertake if internal search
experiences and
does not yield enough
knowledge about past
information.
purchase alternatives.

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Information Search

 External sources of information include:

 Personal sources
 Marketer-controlled sources
 Public sources
 Personal experience

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Information Search

 How much and which sources of external

information consulted is dependent upon:
 Importance of purchase decision
 Effort required to acquire information
 Past experience
 Degree of perceived risk
 Time available

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Digital and Social Media During Consumer
Decision Making Process

 Consumers in information stage are in “active shopping

mode.”
 Consumers in other stages are in “passive shopping
mode.”
 Consumers do not differentiate among paid, owned and
earned media.
 Mobile access to digital information sources at all stages
of the decision making process continues to grow.

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Perception

 Marketers can formulate communication

strategies based upon how consumers acquire
and use information from external sources.
 Marketers study the following:
 How consumers sense external information
 How they attend to various sources of information
 How the information is interpreted and given meaning
 How the information is retained

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Perception

 The number and complexity of marketing stimuli

that a consumer is exposed to requires filtering
 This filtering is:
 SELECTIVE PERCEPTION
▪ May occur within all four stages of the selective
perception process

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The Selective Perception Process

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Selective Exposure

 Occurs as consumers choose whether or not to

make themselves receptive to the information.
 Determined by:
 Sensory inputs – use of marketing stimuli to attract
attention
 Psychological factors: Consumer’s own personality,
needs, motives and experiences
 Individuals generally focus on stimuli that are relevant
to their needs

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Selective Attention

 Occurs when the consumer chooses to focus on

certain stimuli while excluding other stimuli.
 Survival as consumers are exposed to a large
number of ads on any given day.
 Creative visuals, colours, designs or placing ads
in unexpected locations in an attempt to get
consumers to notice them.

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Selective Comprehension

 Focuses on how a person organizes, categorizes,

and interprets incoming information.
 Very individualized stage, and highly influenced
by internal psychological factors
 Marketers must understand the consumer to
ensure that the cues in the message are
interpreted and that the message is understood
correctly.

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Selective Retention - Retaining the Info

 Consumers do not remember all the information

they see, hear, or read – even after attending
and comprehending it.

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Advertisers Attempt to Help Consumers
Retain Information

 Mnemonics (symbols, rhymes, associations,

and images) can assist in consumers’ learning
and memory processes.
 Example: Energizer put pictures of its pink bunny
on packages to remind consumers at the point of
purchase of its creative advertising.
 Rogers: https://www.youtube.com/watch?v=_YLHOk-0__E

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Consumer Decision Making

Decision Stage Psychological Process

Need Recognition Motivation

Information Search Perception

Alternative Evaluation Attitude Formation

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Alternative Evaluation

Evoked Set
 Subset of all brands that the consumer is aware of.

 Goal of an IMC campaign is to increase the

likelihood that your brand will be included in the
consumer’s Evoked Set.
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
Nissan Honda Subaru
Toyota ISUZU
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Alternative Evaluation

Evaluative Criteria

Objective Subjective

Price Style
Warranty Appearance
Service Image

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Alternative Evaluation

Consumer View
Product or service viewed
in terms of its
consequences.

Evaluative
Criteria
Marketer View
Products are viewed as
bundles of attributes.

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Alternative Evaluation

 Bundles of Benefits

Experiential
Functional Benefits Performance
Benefits Benefits

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Attitude Formation

 A summation representing an individual’s overall

feelings or impression about an object.
 C o n s u m e r a t t i t u d e s a b o u t a c o m p a n y,
product or service are important
b e c a u s e a t t i t u d e s a ff e c t w h e t h e r
consumers are likely to buy something
else from a company or not.

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Attitude Formation

 Advertising and promotion are used to create

favourable attitudes or change negative attitudes.
 MAC versus PC https://www.youtube.com/watch?v=1PwiljBN5-8

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Consumer Decision Making

Decision Stage Psychological Process

Need Recognition Motivation

Information Search Perception

Alternative Evaluation Attitude Formation

Purchase Decision Integration

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Purchase Decision

 At some point in the buying process, the

consumer makes a purchase decision.
 The purchase decision starts with a purchase
intention.

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Purchase Decision

 The purchase decision is not the actual

purchase.
 Consumer must implement decision and make
purchase.
 Additional decisions may be needed.
 Time delay often exists between making a purchase
decision and the purchase itself.
 The time delay affects the marketing strategy, and
depends on:
 Type of purchase to be made
 Risk involved in purchase

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Integration Process

 How product knowledge, meanings, and beliefs

are used to evaluate two or more alternatives.
 Purchase decisions are based on an evaluation
and comparison of attributes.
 Analysis of the integration process focuses on
the different types of integration rules or
strategies used by consumers to decide among
purchase alternatives.

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 Types of Integration Strategies

Simplified Decision Rules or

Integration Strategies
Heuristics
Easy to use and adapt to
environmental situations.
Price- or promotion-based
Formal Decision Rules
Affect Referral Decision
Require examination and
Rule – selection based on
comparison of
overall impression or summary
alternatives on specific
evaluation
attributes.
http://www.londondrugs.com/compare/?category=ele-television-televisions

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Consumer Decision Making

Decision Stage Psychological Process

Need Recognition Motivation

Information Search Perception

Alternative Evaluation Attitude Formation

Purchase Decision Integration

Postpurchase Evaluation Learning

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Postpurchase Evaluation

 After the purchase, the consumer evaluates the

performance of the product or service.
 The customer’s product or service experience
greatly affects whether they will buy from the
company again.
 Advertising may reassure customers.

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Satisfaction

“A judgment that consumers make with respect to the

pleasurable level of consumption-related fulfillment.”

 Cognitive dissonance
 A feeling of psychological tension or postpurchase

doubt a consumer experiences after making a difficult

purchase choice.
 More likely to occur when consumer has to choose
between two close alternatives.

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Variations in Consumer
Decision Making

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Variations in Consumer Decision Making

Types
of
Decision Making

Routine
Routine Limited
Limited Extended
Problem
ProblemSolving
Solving Problem
Problem Solving
Solving Problem Solving

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Variations in Consumer Decision Making

Group Decision Making

 Group situations constitute many purchase decisions.
 Reference group
“A group whose presumed perspectives or values are used by
an individual as the basis for his or her judgments,
opinions, and actions.”
 Used to guide consumers’ purchase decisions even when
the group is not present.
 Aspirational or dissociative reference group influences
are used in developing ads and promotional strategies.

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Target Audience Decision

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Target Audience Decision

 Consumer understanding is the key to the

success of any IMC plan, program, or ad.
 The goal of an IMC plan, program or ad is to
influence the behaviour of a target audience.

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Marketing Planning Process

 The target market is the focus of the firm’s

marketing effort and strategies are developed
to achieve these objectives
 Three step process:
1. Segment the market
2. Select a target market
3. Determine the market positioning strategy

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Marketing and Promotions Process Model

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Target Audience and Target Market

 Target Market
 The group of consumers toward which an overall
marketing program is directed.
 Target Audience
 A group of consumers within the target market for
which the advertising campaign is directed.

Target Target Audience

Market

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Market Segmentation

 Marketer identifies a target market by:

 Identifying the needs of a group or segments
 Selects one or more segments as a target
 Develops marketing programs directed to each.

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Figure 3-6 Examples of market segmentation variables

Main Dimension Segmentation Variables Typical Breakdowns

Geographic Region West, Central, East

Under 10,000; 10,000–24,999; 25,000–49,999; 50,000–99,999; 100,000–

City size
249,999; 250,000–499,999; 500,000–999,999; 1,000,000 or more

Metropolitan area Census Metropolitan Area (CMA); etc.

Urban; suburban; small town; rural

Density

Demographic Gender Male; female

Under 6 yrs; 6–11 yrs; 12–17 yrs; 18–24 yrs; 25–34 yrs; 35–44 yrs; 45–54
Age
yrs; 55–64 yrs; 65–74 yrs; 75 yrs plus

Race Asian; Black; Hispanic; Indian; White/Caucasian; etc.

Life stage Infant; preschool; child; youth; collegiate; adult; senior

Baby boomer (1949–1964); Generation X (1965–1976); baby

Birth era
boomlet/Generation Y (1977–present)

Household size 1; 2; 3–4; 5 or more

Residence tenure Own home; rent home

Marital status Never married; married; separated; divorced; widowed

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Figure 3-6 Examples of market segmentation variables (continued)

Main Dimension Segmentation Variables Typical Breakdowns

<$15,000; $15,000–$24,999; $25,000–$34,999; $35,000–$49,999;

Socioeconomic Income
$50,000–$74,999; $75,000+
Some high school or less; high school graduate; some college or
Education
university; university/college graduate; etc.
Managerial and professional specialty; technical, sales, and
administrative support; service; farming, forestry, and fishing; etc.
Occupation

Actualizers; fulfilleds; achievers; experiencers; believers; strivers; makers;

Psychographic Values
strugglers

Lifestyle Activities, interests, opinions

Personality Gregarious; compulsive; introverted; aggressive; ambitious; etc.

Culture Ethnic; social

Low middle class; upper middle class; etc.

Social class

Behaviour Brand loyalty Completely loyal; partially loyal; not loyal

User status Non-user; ex-user; first-time user; regular user

Usage rate Light user; medium user; heavy user

Situation Usage situation; purchase situation

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Benefits sought Quality; service; price/value; convenience; prestige 52
Basis For Segmentation
Psychographic Demographic

Customer
Characteristics

Socioeconomic Geographic

Behaviour Outlets

Buying
Situation

Usage Benefits
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Target Market Selection

 The promotional planner must consider:

 Whether the target segment is substantial enough
 Whether the target segment is accessible
 The more marketers segment, the more
information they have about a segment,
however there are fewer customers in each
segment.

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Target Audience Options

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Target Audience Options: Rossiter and
Percy Perspective

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Target Audience Profile

 (R&P) After dividing the target audience into groups,

segmentation variables are applied to develop a
complete target audience profile.

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 IMC Planning:
Target Audience Profile

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Target Audience Profile

 The message content must fit the intended

audience.
 A complete profile will guide the direction of the
remaining decisions in the promotional plan and
will be useful in developing effective messaging.

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Profile For Media

 A detailed profile of the target audience will

enable the message to be delivered using a
medium that has excellent target audience
reach.

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Profile For IMC Tools

 Provided sufficient profiling is done, the

opportunity exists to closely align tools with the
target.

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Chapter Summary

 A review of the field of consumer behaviour

 Five stage model of decision making
 Internal psychological process that influence
consumer decision making
 Various purchase types affect consumer decision
making
 Target audience and target marketing
 Marketing communication through effective marketing
planning.

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