Understanding Consumer Behavior in

Marketing
This topic aims the students to:
 Understand the 3 stage model of consumer behaviour
 Learn how consumer evaluate and choose between

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alternatives and why they have difficulty in evaluations.
 Know the perceived risk that customer face in
purchasing services

Services Marketing | BBA Sem V |

 Contrast how customers experience and evaluate high
versus low contact service

Suggested Reading:
Christopher Lovelock, Jochen Wirtz and Jayanta Chatterjee,
Service Marketing People, Technology, Strategy, Pearson, 7e

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 Factors that affectconsumer behavior

 Psychological Factors
 In daily life, consumers are being affected by many
issues that are unique to their thought process.

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 Psychological factors can include perception of a need
or situation, the person's ability to learn or understand

Services Marketing | BBA Sem V |

information, and an individual's attitude.
 Each person will respond to a marketing message
based on their perceptions and attitudes.
Therefore, marketers must take these
psychological factors into account when
creating campaigns, ensuring that their
campaign will appeal to their target audience.

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Psychological factors…

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 Personal Factors
 Personal factors are characteristics that are specific to a
person and may not relate to other people within the
same group.

 These characteristics may include how a person makes

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decisions, their unique habits and interests, and
opinions.

Services Marketing | BBA Sem V |

 When considering personal factors, decisions are also
influenced by age, gender, background, culture, and
other personal issues.

 For example, an older person will likely exhibit

different consumer behaviors than a younger
person, meaning they will choose products
differently and spent their money on items that may
not interest a younger generation.
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 Personal factors…

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 Social and CulturalFactors

 The third factor that has a significant impact on

consumer behaviour is social characteristics.

 Social influencers are quite diverse and can include a person's

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family, social interaction, work or school communities, or any
group of people a person affiliates with. It can also include a
person's social class, which involves income, living conditions,

Services Marketing | BBA Sem V |

and education level. The social factors are very diverse and can
be difficult to analyze when developing marketing plans.

 However, it is critical to consider the social factors in consumer

behavior, as they greatly influence how people respond to
marketing messages and make purchasing decisions.
 For example, how using a famous spokesperson can
influence buyers.

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 Consumer Behavior Models
• Through research and observation, several models have been
developed that help further explain why consumers make
decisions, including the black box, personal variables and
complex models.
• The black-box model is based on external stimulus-response,

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meaning something triggers the consumer to make buying
decisions that are influenced by many factors, including
marketing messages, sampling, product availability,

Services Marketing | BBA Sem V |

promotions, and price.

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Black Box model

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Black box model…

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 The Personal Variable model
The personal variable model is another one of the major types of
consumer behavior models. Unlike the black box model, where
external stimuli is the main focus, the personal variable model
studies what internal factors affect consumer behavior and

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purchasing decisions. This model specifically ignores external
stimuli, such as marketing techniques, and concentrates on
internal psychological variables. These variables include lifestyle,

Services Marketing | BBA Sem V |

motivations, and personality. It also looks at individual decision-
making processes, such as problem recognition, alternative
evaluation, as well as post-purchase behavior.

When influenced by the personal-variable model,

consumers make decisions based on internal factors.
These internal factors may include personal opinions,
belief systems, values, traditions, goals, or any other
internal motivation.
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 Complex model
 The final major types of consumer behavior models are the
comprehensive models.

 As the name might suggest, this type of model takes into

account both environmental and internal stimuli when

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studying purchasing behavior.

 This type of model is one of the most complex studies

Services Marketing | BBA Sem V |

because of how many variables are in play.

 It is beneficial because it is the only model that can be used

to study how different external stimuli react in different
types of personalities and demographics.

 It is, however, difficult to determine the accuracy of the

conclusions drawn from these studies because of the amount
of variables.
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 Consumer Decision Making in Services
• WHO IS A CONSUMER ?
Any individual who purchases goods and services from the
market for his/her end-use is called a consumer. In simpler
words a consumer is one who consumes goods and
services available in the market.

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Services Marketing | BBA Sem V |
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Consumer Decision Making

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19 Pre purchase stage

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Service Encounter Stage

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Post-purchase Stage

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