Chapter 6

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 KNOWLEDGE
1. Understand the factors that influence customer behavior
2. Explain the 5-stage model of customer buying decision
3. Describe some behavioral decision theory
OBJECTIVES

SKILL

1. Classify factors affecting customer behavior

2. Apply the Five-Stage in analyzing customer
ATTITUDE

1. Have an active and positive attitude in class

2. Realize the importance of getting to know customers

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 01 What Influences Consumer Behavior?

02
CONTENTS
Key Psychological Processes
TABLE OF

The Buying Decision Process:

03 The Five-Stage Model

04 Behavioral Decision Theory and

Behavioral Economics

05 Debates & discussions.

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Game 1: Lucky

Customer Business
I want .................... We offer ...............

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1. What Influences Consumer Behavior?

Right way

Successful marketing requires that companies

fully connect with their customers
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Definition of Consumer Behavior

individuals select of goods,

Consumer buy services,
groups use
behavior ideas,
organizations and dispose or experiences

to satisfy their needs and wants.

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dispose (loại bỏ) 7 of 67
What factors influence you when you decide
to buy an item?

E.g: My friend

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1. What Influences Consumer Behavior?

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1.1 Cultural factors

1. Culture is the fundamental determinant of a person’s wants

and behaviors acquired through socialization processes with
family and other key institutions.
2. Each culture consists of smaller subcultures that provide more
specific identification and socialization for their members.

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Components of Subcultures

Racial Geographic
Nationalities Religions
groups regions

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Social Classes

Social classes are relatively homogenous (đồng nhất)

and enduring (lâu dài) divisions in a society,
hierarchically ordered and with members who
share similar values, interests, and behavior.

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Social Classes

Upper uppers

Lower uppers

Upper middles

Middle class

Working class

Upper lowers

Lower lowers
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Characteristics of Social Classes

1. Within a class, people tend to behave alike

2. Social class conveys perceptions of inferior or superior
position
3. Class may be indicated by a cluster of variables
(occupation, income, wealth)
4. Class designation is mobile over time

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1.2 Social Factors

a.Reference
c. Roles &
groups
status

b. Family

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a. Reference Groups

Prim ti o n al
a ry s p i ra
g ro u A ps
ps g r o u

a ry Diss
n d ociat
Seco ps g r o u i ve
g ro u ps
Membership group

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b. Family

The family is the most important consumer buying

organization in society, and family members constitute
the most influential primary reference group.

1. There are two families in the buyer’s life.

▻ The Family of Orientation consists of
parents and siblings
▻ The Family of Procreation consists of
one’s spouse and children.

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c. Roles and Status

1. A Role consists of activities a person is expected to perform.

2. Each role carries a status.

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1.3 Personal Factors

Age and stage in the

life cycle

Occupation & economic

circumstances

Personality and self-

concept

Lifestyle and values

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Age and stage in the life cycle
-The Family Life Cycle

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Occupation and economic circumstances

1. Occupation al so influences consumption patterns:

▻ A working-class worker will buy work clothes, work
shoes and lunchboxes.
▻ A company executive will buy suits, air travel, country
club memberships.
2. Economic circumstances: influences the consumer’s
product choice:
▻ Luxury-goods makers such as Gucci, Prada, and
Burberry can be vulnerable to an economic downturn.
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Personality and self-concept

1. Each person has personality characteristics that influence

his/her buying behavior.
▻ Personality: a set of distinguishing human psychological
traits that lead to relatively consistent and enduring
responses to environmental stimuli.
▻ Personality can be an useful variable in analyzing
consumer brand choices.
▻ The idea is that brands also have personalities and
consumers are likely to choose brands whose personalities
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Typical personalities
Self-
confidence

Adaptability dominance

defensivenes
autonomy
s

sociability deference

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Personal factor s – self-concept

1. Self-concept: how we view ourselves

2. Consumers often choose and use brands that
have a brand personality consistent with:
▻ their own actual self-concept.
▻ Their ideal self-concept (how we would like to view
ourselves)
▻ Other’s self-concept (how we think other see us).

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Lifestyle and values

1. A lifestyle is a person’s pattern of living in the world as

expressed in Activities, Interests, and Opinions. It
portrays the “whole person” interacting with his
environment.
2. Marketers search for the relationships between their
products and lifestyle groups (LOHAS products)

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Lifestyle and values

Money-
constrained

Time-
constrained

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Core values

1. Core values are the belief systems that underlie attitudes

and behaviors.
2. Core values go much deeper than behavior or attitude
and determine, at a basic level, people’s choices and
desires over the long term.
3. Marketers who target consumers on the basis of their
values believe that with appeals to people’s inner selves, it
is possible to influence their outer selves -their purchase
behavior.

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1.

I often buy toothbrush packs sold in combos to give to my

husband and children. What factors influenced buying
behavior in this case?
a. Social
b. Cultural
c. Life Cycle
d. Motivation

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2.

Life style and occupation are belongs to

a. Psycological
b. Cultural
c. Social
d. Personal

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3.

A company executive will buy suits, air travel, country club

memberships.
a. Occupation
b. Sub culture
c. Personal
d. Beliefs

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4.

I bought it many times because I know it's a quality product

and I did a lot of research about it
a. Sub culture
b. Personal
c. Beliefs
d. Learning

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Click to edit Master title style

1. What Influences Consumer Behavior?

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Key Psychological
Processes

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Key psychological Processes

Figure 6.1 Stimulus-response Model of Consumer Behavior

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Key Psychological Processes

Motivation Perception Learning Memory

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Motivation

Sigmund Freud Abraham Maslow Frederick

(1856 - 1939) (1908 – 1970) Herzberg
Unconscious Hierarchy of (1923 – 2000)
Theory Needs Two-Factor
Behavior is guided Behavior is driven Theory
by subconscious by the lowest, Behavior is guided
motivation unmet need by motivating and
hygiene factors
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Freud’s theory

1. Psychological forces shaping people’s behavior are

largely unconscious, and that a person cannot fully
understand his or her own motivations.
2. Motivation researchers often collect “in-dept interviews”
with a few dozen consumers to uncover deeper motives
triggered by a product.
3. The popular technique:
▻ Laddering
▻ Projective techniques: word association, sentence completion, picture
interpretation, role playing….
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Maslow’s Hierarchy of Needs

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Herzberg’s Two-Factor Theory

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Perception

1. A motivated person is ready to act.

2. How she acts is influenced by her view of situation.
3. Perception is the process by which we select, organize, and
interpret information inputs to create a meaningful picture of the
world.
4. The key point is that it depends not only on the physical stimuli,
but also on the stimuli’s relationship to the surrounding field
and on conditions within each of us.
▻ A fast-talking salesperson is perceived as aggressive and insincere by one
person, but intelligent and helpful by another.

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Three Perceptual processes

1. People can emerge with different perceptions

of the same object because of the three
perceptual processes:
▻ Selective attention
▻ Selective distortion
▻ Selective Retention

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Learning

1. When we act, we learn.

2. Learning induces changes in our behavior arising
from experience.
3. Learning theorists believe that learning is produced
through the interplay of drives, stimuli, cues,
responses, and reinforcement.

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Components of learning

• A strong internal stimulus impelling

Drive action

• Minor stimuli that determine when,

Cues where and a person respond

• If the experience is rewarding, the

Reinforcement response will be reinforced
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Brand Knowledge in memory

1. We can think of consumer brand knowledge as a node in

memory with a variety of linked associations.
2. The strengths and organization of these associations will be
important determinants of the information we can recall
about the brand.
3. Brand associations consists of brand-related thoughts,
feelings, perceptions, images, experiences, beliefs, attitudes,
and so on that become linked to the brand node.

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An Example of brand associations
Figure 6.3 : Hypothetical State Farm Mental Map

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The Buying Decision
Process: The Five-
stage Model
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The buying decision process
Figure 6.4 : Five-stage Model Of Consumer Buying Process

Evaluation
Problem Information Purchase Postpurchase
Recognition of
search decision behavior
alternatives

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Problem Recognition

1. Internal stimulus: one of the person’s normal needs-

hunger, thirst, sex-rises to a threshold level and becomes
a drive.
2. External stimulus: A person may admire a neighbor’s
new car or see a television ad for a Hawaii vacation, which
triggers thought about possibility of making a purchase.
3. Marketers need to identify the circumstances that trigger
a particular need, then develop marketing strategies that
trigger consumer interest.

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Information Search -Sources of
Information

Personal

Commercial

Public

Experiential

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Information search – Search dynamics

Figure 6.5 Successive Sets

Involved in Consumer
Decision Making
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Evaluation of alternatives- Beliefs and
attitudes

1. Through experience and learning, people acquire beliefs

and attitudes.
2. Beliefs is a descriptive thought that a person holds about
something.
3. Attitudes are a person’s enduring favorable or
unfavorable evaluations, emotional feelings, and action
tendencies towards some object or idea.

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Purchase decision

Figure 6.6 Stages Evaluation of

alternatives
between
Evaluation of
Alternatives and
Purchase
Purchase intention

Unanticipated
Attitudes of
Perceived risk situational
others
factors

Purchase
decision
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Purchase decision- intervening
factors
1. Attitudes of other:
▻ The intensity of the other person’s negative
attitude toward our preferred alternative.
▻ Our motivation to comply with the other person’s
wishes.
2. Unanticipated situational factors.
3. Consumer’s perceived risk.

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Perceived Risk
Functional risk • Not perform up to expectations

Physical risk • threat to physical well-being

Financial risk • not worth the price paid

• resulted in embarrassment from

Social risk
others

Psychological • Affecting the mental well-being

risk of the user

• Finding another product

Time risk because of existing product’s
failure
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Postpurchase behavior

1. Postpurchase behavior = dissonance

experience
2. Marketers must monitor:
▻ Consumer’s postpurchase satisfaction.
▻ Consumer’s postpurchase actions
▻ Consumer’s Postpurchase use and disposal

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Post purchase behavior – Use and
disposal
Figure 6.7
How
Customer
s Use and
Dispose of
Products

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 Other Theories Of
Consumer Decision
Making
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Level of consumer involvement

1. Consumer involvement is the level of

engagement and active processing the consumer
undertake in response to a marketing stimulus.
▻ Elaboration Likelihood Model
▻ Low-involvement marketing strategies
▻ Variety-seeking buying behavior

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Decision Heuristics

1. Availability heuristic
2. Representativeness heuristic
3. Anchoring and adjustment heuristic

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Mental Accounting

1. Mental accounting refers to the way consumers code,

categorize, and evaluate financial outcomes of choices.
▻ Individuals often segregate their savings into separate accounts to meet
different goals even though funds from any of the accounts can be applied to
any of the goals
2. Consumers tend to…
▻ Segregate gains
▻ Integrate losses
▻ Integrate smaller losses with larger gains
▻ Segregate small gains from large losses

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Profiling the customer buying-decision
process
1. The marketer need to learn about the stages in the buying process
for their product by:
▻ Introspective method: To think about how they themselves
would act.
▻ Retrospective method: To interview a small number of recent
purchasers, asking them to recall the events leading to the
purchase.
▻ Prospective method: To locate the consumers who plan to
buy the product and ask them to think out loud about going
through the buying process.
▻ Descriptive method: they ask the consumers to describe the
ideal way to buy the product.

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Profiling the customer buying-decision
process

1. Understanding the customer’s behavior in

connection with a product has been called
mapping:
▻ the customer’s consumption system,
▻ The customer activity cycle
▻ Customer senario.

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Debate And
Discussions

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READ CASE STUDY

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