Consumer Behavior and Buying Process

We all are consumers and we are complex and irrational in our purchase actions,
cannot always explain our own choices and actions. This inability makes the vitally
important job of marketing managers even more difficult, in that they must be able to
explain consumers’ behavior to give marketers as clear an understanding of their
customers as possible. To understand consumer behavior, we must ask why people buy
goods and services. Using various principles and theories, marketers have been able to
develop framework to understand consumer behavior and develop strategies for dealing
with consumer behavior. Generally, people buy one product instead of others because
they perceive it to be better value for them: that is the ratio of benefits to costs is higher
for a particular product than for any other. However, benefits can be subtle and less
than rationally assessed. Buying a dress for a party. In this lesson, we understand
various frameworks to analyze consumer behavior, next explore the various stages of
buying process that consumers go through when they buy products. Then we discuss
various factors that influence the consumer decision making process and what can firms
do to influence consumers to purchase their products.
If a customer buys for a 1” drill-does it mean 1” drill or 1” hole
• It is important for marketers to understand: ‘why do consumers behave the way
they do’
• When consumers buy a product its marketer succeeds
• Marketing involves creating a mix of ingredients with an expectation to elicit
favourable consumer response.
• Failure occurs when consumers do not respond favourably to a marketing efforts
• Consumer behaviour is about understanding what goes on it consumers’ mind
when they buy

Marketers need deep understanding of consumer behavior. It is the central ingredient in

creating successful products and marketing strategy.
The challenge for marketers is that consumers are varied lot when it comes to deciding
what, when, how to buy etc. The manner in which consumers make their buying
decision can vary by product category, buying context, personal influences and various
other factors. Firms need to understand and anticipate these and other actors in order
to develop successful marketing strategies.
In US, around 30000 consumer packaged goods are launched every year. 70%-90% of
these get withdrawn from market in 12 months.
Failure occurs when consumers do not respond favourably to a firm’s marketing efforts
i.e., they do not buy the brand being sold by a firm.
Why do products fail-Part of problem is- not understanding customers and their buying
process well?
While failures are common, they need not be the rule. Consumer buying behavior,
despite its variety and complexity is not completely random. There are some patterns in
their behavior—marketers can use frameworks to understand patterns of buying
behavior and design right marketing strategies accordingly.
Consumer behaviour is--Actual buying action like paying for it and taking it and mental
processing for this buying action. It refers to all the processes related to Why, what,
when, from whom, how to pay, how much to buy etc.
Marketers need to understand-How consumers make decisions-What, which, when,
how much, where, how to pay etc.

Marketing Stimuli Consumer Mind Consumer Response

(4Ps) (mental processing) (Buy it or not buy it)

We will discuss following 4 Frameworks for mapping out and understanding the process
by which consumers make purchase decisions.
4 frameworks:

• Cognitive Vs Emotional
• High involvement vs low involvement
• Optimizing vs satisfying
• Compensatory vs non-compensatory

Cognitive (driven by mind, information based)-insurance policy Emotional (riven by

heart, liking)- jacket Combined-both cognitive and emotion component-smart phone.
Then how do marketers determine whether a person’s buying process is LARGELY
cognitive or emotional or some combination of the two. They start by considering factors
such as product type and its purpose, context and individual differences.
Product type:

• Utilitarian –software, drill machine—evaluate rationally-cognitive

processing-objectively evaluate the alternatives based on how well that
satisfy the purpose.
 • Hedonic-shows who they are, aspire to be-pleasure-sports car, luxury
products-emotional processing. Buyers think they something about who
they are or who they aspire to be, intended to make a statement to peers
and social groups. Clothing, shoes, jewelry, accessories
• Search based vs experience based-Washing machine vs movie Whether
a product can be considered more of a search versus experience good.
Search goods have wealth of knowledge available, so consumers can learn
and evaluate objectively for taking purchase decision. Search goods lend
themselves to cognitive processing. In contrast, consumers can assess the
characteristics of experience goods only after purchasing and using them.
Food, beverages, vacations-Given these characteristics, experience goods
tend to elicit more emotional processing.
• Context-in which the product or the service will be used. If purchase of a
SUV is for commercial purposes-more cognitive and utilitarian factors will
dominate in evaluating its features and benefits. If it is for personal use to
convey personality of owner- rugged, outdoors- there will be emotional
component and ego-expressive factors-in its features and benefits criteria
liking for brand, its chrome finish etc.

Cognitive vs Emotional Decision Making is of concern for the marketer primarily

because cognitive decision making often is slower, more systematic, and more
exhaustive than emotional decision making. Consumers seek out a number of options
and compare those options.
Guidelines for marketers (Mkters) for Selling Strategy
Product Placement--- vary it as a function of cognitive/emotional distinction. When
engaged in cognitive processing, consumers may be more likely to seek out a
company’s products, whether online or brick- and- mortar stores, suggesting that
placement on website or within the store may not be critical. In contrast, to appeal to
consumers engaged in hedonic processing, a seller may choose to place a product
where it is most likely to be seen and therefore encourage impulse buying-such as
placing it on the store’s online homepage or display at the front of the store. Hedonic
products -Visibility is important.
Promotional efforts need to be tailored whether it is cognitive or emotional purchase
decision. For cognitive purchases, Advertising emphasizes on favorable price,
information about features, benefits, facts showing its superiority compared to
competing products. Advertising for emotional purchases uses situations that tap into
feelings such as happiness, fear. Advertising may use both-blend of information and
feelings where consumers are using both cognitive and emotional criteria in their
purchase decision. -- Fevicol, Car, Fridge
Target Market- companies should consider the form of the decision making likely to be
used by its target market. For example, teens often employ of more emotional decision
than adults, which suggests that marketers targeting teenaged customers should focus
more on emotional factors than they would with older customers--- iPod ads- less of
product information and more “coolness” feeling.
Consumers buying decisions also vary in their level of involvement with the purchase.
Certain purchases are characterized highly involved and elaborate processing while
others are characterized by minimally involved processing. Both cognitive and
emotional purchases can be high or low involvement.
High vs. Low involvement- Involvement of customer in decision making
In high involvement, buyer is fully engaged, decision making is effortful, takes more
time, consequences of choice are significant. Involvement of customer in decision
making. Buying of a smart TV or a wedding dress. In low involvement, less effort, time,
money and risk-chewing gum, sandwich
More time, efforts, money, consequence of wrong decision
Depends upon type of product:
Low I--Renewing subscription, candy, paper towel, auto re-order with online retailers
High I– Car, House, Wedding Dress
Depends upon type of product:
Low I--Renewing subscription, candy, paper towel, auto re-order with online retailers
High I– Car, House, Wedding Dress, laptop, major surgery
Whether a high or low involvement-it may change over time. Changes in Involvement-
1st time purchase of car insurance and 2nd time
Level of Involvement for Same product may differ across customers
Woman takes longer in buying of a greeting card and man decides quickly.
Guidelines for Mkter-selling efforts
High involvement and cognitive-easy Returns, offer Guarantee to reduce the perceived
risk of purchase, provide consumers with comparisons between company’s product and
competing products making it easy for customers to compare the features-Product
Comparisons
Strategy for Low involvement-easy visibility, readily availability, simple rationale for
purchase in ads- Water, Candy

Optimizing Vs Satisfying—Best Choice vs Good Choice

Whether the goal of the purchase is to optimize on choice or simply to satisfy.
Consumers may be motivated to purchase the best alternative they can-that is
optimizing decision making. Consumers settle for an alternative that is “good enough” or
that passes some acceptable threshold. For example, buying a car/home-optimizing
and renting a home-satisfying. Factors that influence whether the consumer uses
optimizing or satisfying decision making process are some of the same ones as for high
or low involvement decision making. Generally, if the product is high price, greater
variance in quality and price, length of product usage is more-consumers go for
optimizing decision making.
Depends upon Product-Car vs sandwich
Car-it is
• High Involvement
• Greater Product Variation
• Length of Usage

Guidelines for Mkter-selling efforts

When selling-Shampoo/ Car Accessories- make it easy to find, more shelf space,
noticeable color/ packaging for it to stan out, give it an affordable price but suggesting
good quality. Advertise these-as good choice for the price, highlight costs of bad choice
Satisfying products-- should Standout+Affordable price

Compensatory vs non-Compensatory
Compensatory-Aggregate Score of all attributes of performance. Product’s shortcoming
on a particular attribute such as high price can be compensated by strength of another
attribute such as good style. For example, dress
Non-compensatory-minimum acceptable threshold on certain attributes. Product’s
failure to reach an acceptable threshold on one attribute cannot be compensated by
high performance on another attribute. For example, while buying of laptop, consumers
may use non-compensatory decision making or Non-stop flight as non compensatory
attribute criteria
Compensatory vs non-compensatory decision making depends upon
Size of choice set

If there are limited number of choices-consumers use-compensatory approach eFor

example, 3 restaurants in a small town-it is easy to consider all the alternatives on all
the relevant attributes. If the choice set is Large- Vacation destination, add non
compensatory attributes like weather, distance etc. -non compensatory approach
Importance of various Attributes to consumer also influences decision making. If one
attribute dominates all others, no form of compensatory decision will be used. For
example, consumer does not want to take chance on missing the connecting flight,
non-stop flight will be dominating attribute in decision making and customer will be using
non-compensatory approach or it can be fuel efficiency of the car as dominant criteria
Resource availability- if consumers have time, patience, access to information, they
may employ compensatory decision making.
Guidelines for Marketer-selling efforts
Mkters can influence decision making
• Compensatory approach-- It is not necessary that product scores high on every
attribute, it must score well in the aggregate, promote total package, provide
relevant information and make it-easy availability…. Restaurant
 • Non-compensatory—firm needs to well on one or two criteria that dominate the
consumer’s decision making. stress on the attribute on which the firm is doing
well, encourage customers to make it non compensatory and reduce importance
of other attributes. For example, - Volkswagen-make car safety dominant
attribute and -emphasize-safest car is the best car
Consumer Decision Making Process-Stages/Phases
It starts from the point, consumer experiences the need which can be fulfilled by a
product, finding out alternatives and evaluating them. It also encompasses all the
factors that influence these stages of buying decision making process. These factors
include-
Cultural factors (influence of food and dress habits, customs and rituals)
Social factors- (influence of family, friends, aspiration groups)
Personal factors- (influence of age, occupation, family stage and size etc.)
Psychological factors- (influence of personality, motivations, learnings, attitude etc.)
Marketing activities-(various activities of the firm influencing consumers to purchase
their brand)
A typical consumer decision-making process consists of five stages:
1. Need Recognition
2. Information gathering
3. Evaluation of alternatives
4. Purchase
5. Post purchase
First three steps can be grouped as pre-purchase stage. So, we can say there are:
Pre-purchase phase Purchase Phase Post- Purchase Phases

However, it must be remembered that not all purchase decisions follow all these steps
or do so in this order. Also, the time duration of this process as well as the length of
these stages may vary depending on the product, the consumer and the situation. For
example, the decision-making process for a cold drink, biscuit may comprise only a few
seconds. However, the decision-making process for purchasing a house may take
several months or years. Similarly, when a car tyre bursts on the highway and has to be
replaced immediately, it is an emergency situation, and the car owner will quickly
choose from the brands of tyres which are available at the nearest outlet. On the other
hand, if car owner was replacing the tyre in the normal course, he or she may seek out
more information on the various brands and spend considerable effort in evaluating the
alternatives before choosing.
Marketers need to understand character of each phase

1. Problem or Need Recognition

The purchase process begins when the consumer experiences a need or faces a
problem.

Need Recognition-Gap between existing state and desired state of consumer

Gap must be big enough and important to trigger a need and to Seek solution
Need trigger--stimulated by a consumer’s depleted assortment or by marketing efforts
e.g., empty toothpaste tube, high cost for repair of TV, OR need can be triggered by
Advertising of RO water filtration system-providing better filtration and taste of
water-good for health of family than candle filtration, LED TV showing better picture
quality, discount sale on winter wear, dress for Birthday, appliances/gifts as Diwali
purchase etc. For example, an advertisement reminds the mother about the germs on
the playing field and suggests that X brand of soap would fight germs and keep her
child protected and healthy. The trigger for this need could be internal to the customer
or could be external. Thus, a person driven by hunger or thirst (internal factors) would
be motivated to search for food or water. External factors such as seeing an ad, or a
neighbor bring home a new car may cause a person to think about purchasing a new
car also.
Marketers must understand the situation or factors that can trigger the need amongst
consumers to buy their product.
Depending on the nature of purchase, these pre purchase activities can take short or
long time (cold drink vs laptop). As consumers proceed through these activities, any of
the decision-making frameworks discussed earlier can come into play. Companies can
strongly influence these activities by providing triggers and ensuring that their products
make it into buyers’ consideration and choice sets.
2. Information Search
• Once need is recognized the consumer then seeks information
• Information is sought for better decision making
• Ill informed decisions are often cause of poor buying decisions
• Poor buying decisions can expose consumers to various types of risks or
negative consequences
It can be:
• Internal and External search (own memory & experiences, friends, family, ads,
reviews, online resources)
• Amount of search, small amount or big amount of information (depends upon
type of product-ball pen vs car)
Information search activity makes consumer aware of brands in the market (awareness
set), information about the brands and evaluation criterion helps in shortlisting of the
brands (consideration set)-Options that are to be considered in more details. It leads to
strong contenders for purchase-(choice set)
Awareness set Consideration set Choice set

• Pre-purchase Phase can be long or short…Depends upon

• Product--restaurant or foreign vacation
• Circumstances of the person—Car condition is bad or fine will influence the time
taken for car purchase decision, depleting stock of salt
• Mkters can influence…….. shape and length of pre purchase phase
Marketers can trigger a need…..for car service for good maintenance of the car,
cosmetics look young, soaps for killing germs to be healthy, more convenience through
glucometer at home
Advertise to put product in awareness set, consideration set, and choice set
Put all the brands together on shelf like shampoo, conditioner, hair serum etc. or various
car accessories of same brand. It increases the chances of brands to get into the choice
set and increases the likelihood of different products of same brand getting purchased.
In the other situation where different products of a brand are kept at different locations;
customer is likely to buy products of different brands. …Hair care products
Magnify/explain attribute on which product does well…Hyundai offered best warranty
and raised the importance of warranty for consumers.
Downplay the attribute on which it does poorly—Ikea—Downplay the attribute that
furniture is to last forever–durability factor
3.Evaluation of Alternatives
Consumers may compare the different alternatives based on attributes like price, features,
reliability etc. It is important for marketers to understand the criteria or parameters on
which consumers will evaluate the products and the order of importance of these
criteria.
• Brands in the consideration set are evaluated before buying decision is made
• Evaluation implies matching consumer buying criteria with brand’s features
• The purpose of evaluation to reject the unsuitable brands
• Through evaluation the consumer is able to find out the best among the
alternatives

Consumer evaluation/buying criteria can be:

Little or Detailed, few dimensions or many dimensions in purchase criteria sandwich vs
mobile phone
Tangible or intangible dimensions-fuel economy of a car vs style of a car
Relative importance of evaluative criteria dimensions
Subjective or objective (subjective-style, liking for a brand, objective-price, mileage) or
we can say attribute based-price, durability, engine power vs. affect based-how would
brand makes the customer feel-wearing a designer shirt.
Attribute and affect based choices
Marketer needs to decide whether to engage buyer at rational or emotional level.
Attributes are communicated to influence rational or cognitive part of the consumers. It
is suitable for utilitarian products-generator, software. Whereas, by communicating with
emotional messages and connecting with emotional needs of consumers-pressing of
emotional buttons, product goes beyond functionality aspect, develops strong emotions
for the brand. Luxury brands of apparel, wrist watches, chocolates draw customers
based on emotional pull. Consumers’ evaluation criteria is not the functional value of
luxury wrist watch but its subjective image as luxury brand that makes people act on
non-rational purchase criteria.
4. Purchase Decision
The purchase phase is about making decision regarding which brand, model, seller,
when and how to pay etc.
• The alternative evaluation yields a relative picture about how different brand
compare on the evaluative criteria
• The challenge for consumer is to pick the most suited brand out of given
alternatives
• Consumer decision making is all about making the best choice among
alternatives
• The brand selection is not possible unless some rules of elimination are
applied
These are called decision rules
• Compensatory rule: This rule implies that higher level of delivery on one
attribute can compensate for low performance of another attribute. One of
the simplest compensatory formulas is to add up all scores of performances
on each of the evaluative dimensions and choose the option that has the
highest score.
• Non compensatory rule: This rule means that low performance or delivery
on one attribute cannot be offset by higher delivery on the other. For
instance, high health value of snacks may not compensate for its taste.
Many factors can intervene between the moment a consumer decides to buy and the
moment of actual purchase. Though the consumer may have decided on brand X, he or
she may finally end up buying brand Y because of any of several reasons like size,
design or color of the brand is out of stock, not getting installation facility or salesperson
recommends another brand.
Marketers need to anticipate barriers and minimize them
High-end Sofa…wide choice in fabric and trimming- customer is confused-postpones
purchase
Camera—salesperson recommends another brand
Car financing- poor credit rating
Ready to eat product- which brand – cues like visibility, color, brand name, packaging of
the product may influence the decision
Consumers may use compensatory or non-compensatory approach in reaching at
choice set of brands and final brand decision for purchase. Compensatory-higher value
on one attribute can be compensated by low value on another attribute of the product.
Non-compensatory-certain level of performance on a attribute is a must and cannot be
compensated by higher value on other attributes for the consumers. Battery life for
mobile phone, certain level of car engine power. Marketers must find out about this
approach of customers and emphasize the attributes accordingly in their communication
strategy.
5. Post purchase
The marketer’s job is not over when the consumer purchases the product.
• Decision-making does not end with the act of purchase
• It is followed by post-purchase evaluation
• Post-purchase evaluation involves comparison between the expectations and
actual performance of the product or brand
• Consumer often experience cognitive dissonance after the act of purchase
Post-purchase evaluation may result in-Satisfaction-product performance is as
expected, Delight-actual product performance exceeds expectations,
Dissatisfaction-performance is short of expectation, feels disappointment.
In the post purchase phase, possible situations are -

Happy Customers, are more likely to buy again and spread good word of mouth to
others. Consumers who are not happy might return the product, complain about it, warn
others about it.
Cognitive Dissonance- is post- purchase state of discomfort-thinking whether it was the
right purchase decision, consumers may question appropriateness of their decision,
psychological tension, or anxiety. More likely for products that are:
• Expensive.
• Infrequently purchased.
• Do not work as intended.
• Associated with high levels of risk.
Firms attempt to reduce dissonance by reinforcing the decision:
• Return policies.
• Thank-you letters.
• Congratulations letters.
• Tags on garments.
• Advtg reassuring customers that they have made the right purchase decision-
think favorably about the brand purchased and do not develop negative thoughts.

Marketing Efforts to manage post-purchase phase

• Build realistic expectations, not too high and not too low.
• Demonstrate correct product use—improper usage can cause dissatisfaction. if
product requires after care, firm may recommend after-sale care instructions of
the product (leather sofa, appliance)
• Stand behind the product or service by providing money-back guarantees and
warranties.
• Encourage customer feedback, which cuts down on negative word of mouth and
helps marketers adjust their offerings.
• Periodically make contact with customers and thank them for their support.
Marketers also need to emphasize on repeat purchase of the product-Encourage
customers to replace/renew
Toothbrush/razor- color indication, exchange policy for products, Reminder of renewing
magazine subscription
Marketers need to understand the consumers’ experiences while using or consuming
the product. Does the consumer face any problems? These problem areas offer an
opportunity to improve the product. For example, market research informed Marico, the
manufacturers of Parachute brand of coconut oil, that users had a problem in pouring
out the oil from the bottle in winter as the oil would set. Marico now makes its
Parachute oil also available in wide-mouthed jars, the lid of which can be taken off
allowing the oil to be scooped out easily. Similarly, based on studies of usage
experience of consumers, many shampoos and lotions come in containers that can be
stored upside down allowing the last drop to be squeezed out and used.
Types of Decisions- Involvement and Problem Solving Variations
We use large number of products in our daily life- toothpaste, TV, shirt, microwave, car..
Our decision making is not similar across different products and different level of efforts
are put in by consumers across different products. It varies in terms of time, efforts,
money, and risk/consequences of wrong decision. Broadly three kinds of
decision-making styles are:
Extended problem solving-Extensive Decision making
It involves considerable time in each stage of the consumer purchase decision process.
It can be for both products purchased largely on rational basis (cognitive) as well as
largely on emotional basis. Cognitive-software, emotional-luxury watch, wedding dress
Consumer engages in extended problem solving If the product is-High Risk in case of
wrong decision due to high price or staying with the product for long time (MRI
equipment), non-familiarity with the product-purchasing for the first time, infrequently
bought product, wide choice in product differentiation (furniture). Consumer applies
elaborate and multi-dimensional evaluative criteria. This approach is used for high
involvement products.
Limited problem solving
With time, consumers become experienced and knowledgeable, like buying of smart
phone for 2nd, 3rd time. Or if the product is moderately expensive and for moderate time
duration like buying of jeans, it becomes limited problem-solving decision. It involves the
use of moderate information-seeking efforts, lesser time and perceived risk associated
with purchase.
Routine or habitual problem solving
It involves little or no effort to acquire external information or evaluate alternatives;
typically used for frequently purchased or low unit value products-low involvement
products like soap, chips. Consumer directly buys them almost skipping the information
search and evaluation of alternatives stages. Decisions are routinized. Consumers are
familiar with product and its evaluation.
Marketing strategy- low involvement products must have visibility and be easily
accessed. Market challengers can break buying habits with premium promotions.
 Factors influencing consumer behavior
As shown in the figure in the beginning, marketing stimuli (4Ps) are aimed at consumers
for their response to buy. But mental processing of these is also influenced by other
factors. Various factors influencing consumer behavior are: social, cultural,
psychological, and personal.

Socio-Cultural Factors: Sociocultural influences evolve from a consumer's formal and

informal relationships with other people. These influences include personal influence,
reference groups, the family, social class, culture and subculture
Social influence-It is the influence of the group to which a consumer belongs to like or
wants to belong to on consumer behavior.

Reference groups influence what types of products you will purchase and which brand
of product you choose especially for products which are visibility to others. Three groups
have clear marketing implications:
1. Membership group- The group to which a person actually belongs like family, friends,
colleagues-Swift
2. Aspiration group-The group to which a person wants to belong to. It can be one or
more persons- whom an individual uses as a basis for comparison like rich people or
celebrity. Wants to buy luxury brands-Mercedes
3. Dissociative group- The group from which a person wants to maintain a distance-so
the consumer does not want to buy Maruti Alto

Family Influences
Many purchase decisions are made about products or services that the entire family will
consume or use. Thus, firms must consider how families make purchase decisions and
understand how various family members might influence these decisions.

Family influences on consumer behaviour result from three sources:

1.Consumer socialization- is the process by which people acquire the skills, knowledge,
and attitudes necessary to function as consumers.
2. Family life cycle. -represents the distinct phases that a family progresses through
from formation to retirement, each phase bringing with it identifiable purchasing
behaviours. For example, young singles purchase clothing and entertainment. Young
marrieds without children purchase furniture and appliances. Young marrieds with
children represent a sizeable market for infant products and child care services. Finally,
the older married and unmarried stages represent a sizeable market for medicine and
health care service.
3. Family decision making-influences can be broken down into two decision-making
styles:
i. Spouse dominant (wife or husband dominates)
ii. Joint decision making (decision made jointly by husband and wife or (husband, wife
and children)
Five roles of individual family members in the purchase process exist.
I. Information gatherer
ii. Influencer
iii Decision maker
iv. Purchaser
v. User
We can see these roles in purchase of breakfast cereal for children, toys for children or
buying of a car in the family
Increasingly, teenagers are assuming more of these roles for many purchases in working
parents’ homes.

Social Class
It can also be social class as an influencer on consumer behavior.
One of the most commonly used terminologies involves use of descriptors such as
upper, middle, and lower class
• Social class analysis assumes significance in marketing because it allows
making predictions about the behavior of people in a class. Nirma for lower
income, and Surf Excel for higher income group consumers or different car
models for different income categories.
Type of social influence can be:

Cultural Factors: Culture and Sub-Culture

• It refers to shared beliefs, values, and customs that prevail in society
• It exerts influence on all behaviors including consumer behavior
• Subcultural group is a part of a bigger cultural group
• Though people in a subcultural group belong to dominant culture yet people they
differ in terms of their values beliefs, customs and behaviours
• A cultural group might be as small as a reference group at school or as large as
a country or religion.
 • Therefore, products must differ in terms of their cultural relevance.
• Marketers--different flavors of Maggi, or different types of ready to eat products,
different advtg to match with cultural values

Personal Factors: Age, income, education, personality, life-style etc.

Personality
Personality traits refers to a person’s consistent behavior or responses to recurring
situations. Research suggests that key traits affect brand and product type preferences.
These traits are often revealed in a person’s self-concept, which is the way people see
themselves and the way they believe others see them. For example, cars, home paints
are advertised as a personality or celebrity is used to give a personality to the product. It
is done to match with the brand personality with the target customers’ personality.
Motor-cycle, Raymond apparel
Lifestyle refers to the way consumers spend their time and money to live. Life-style is
important influencer for purchase of furniture, apparel.

Psychological factors
These are: Motivation, perceptions, learning, attitude
Motivation
Motivation is the energizing force that causes behaviour that satisfies a need. Maslow’s
hierarchy of needs can help understand needs of target customers and connect the
product with the need of consumers.
• Physiological needs • Safety needs • Social needs • Personal needs •
Self-actualization needs.

• Consumers are motivated to act when some of their needs are not satisfied
• Motivation may stem from any of the five types of needs:

Perception
Perception is the process by which we select, organize, and interpret information to
form an opinion. It can be how consumers perceive the importance of attributes of
product, price, its advertisements and messages or see risks in a purchase. Perception
is important because people selectively perceive what they want and it affects how
people see risks in a purchase.
• Selective attention involves paying attention to messages consistent with a
person’s attitudes, and beliefs and ignoring messages that are inconsistent.
• Selective comprehension involves interpreting information so that it is consistent
with a person's attitudes and beliefs.
• Selective retention means that consumers do not remember all the information
they see, read, or hear.
• Perceptual distortion: when the message conveyed is not interpreted by
consumers as intended by the marketer
• Marketers try to reduce a consumer's perceived risk by providing free trial of a
product, securing endorsements from influential people, providing warranties and
guarantees.
• Marketers changed the perception of people towards Hyundai cars
Learning
• Consumers intentionally and unintentionally learns about products, companies,
brands and stores
• The learned information helps him in making effective buying decisions
• Brands succeed when consumers learn good things about them and learn to buy
them when need arises
• Learning to accept and use ready to eat food items

Attitude
Attitude is an internal feeling. Consumer buy brands about which they hold positive
attitude and refrain from buying ones about which they have negative attitudes. People
had negative attitude towards Kellogg's Cereal which marketers could change to
positive one.
Creation of positive attitude is essential for marketers to succeed in marketplace.
Marketers try to:
Change attitude-Coffee, health supplements
Change beliefs about the extent to which a brand has certain attribute
Change the perceived importance of the attributes

Situational factors

Sensory Situation- Consumers might be ready to purchase a product or service but be

completely derailed once they arrive in the store. It can be visual cue of products on
display, smell of food-coffee shop etc. Marketers use sensory cues to influence
consumers at this choice stage of the decision process. Physical surrounding of the

store-décor and music. Temporal State- A purchase situation may have different
influence depending on time of day. Each of these may have some influence and can
alter consumer behavior.
Consumer Decision Making Unit (discussed earlier also)
Set of individuals who influence or take part in decision to buy.
At least 1 person or More---Vacation trip, Car, Wallet, groceries, book, laptop
Decision making unit (CDU)- Marketers need to know who are the persons in CDU, their
roles and plan Mktg Efforts towards each of them.
There can be one or more of the following roles in the decision-making unit:
1. influencer (provides information about a product or service)
2. gate keeper (controls flow of information)
3. decider (enjoys power to take decision
4. buyer (makes actual purchase)
5. user (consumers)
6. maintainer (responsible for service and repair)
Breakfast Cereal for children –Advtg focus at mother and emphasizes nutrition,
Packaging-cartoons, games, shapes of cereal to influence kids, display at lower shelves
for kids, car for the family-CDU includes husband, wife and teenaged children, smart
phone for teenaged child.