Understanding Consumer Behavior

consumers make
purchase decisions

Consumer
behavior = HOW

consumers use and

dispose of product
Model of Buyer Behavior
The Consumer Decision
Process
Need Recognition

Preferred
Present State
Status

Marketing helps consumers recognize

an imbalance between present status
and preferred state.
 Recognition of
Unfulfilled Wants

• When a current product isn’t performing

properly

• When the consumer is running out of a product

• When another product seems superior to the

one currently used
 Information Search

Internal Information Search

• Recall information in
memory
External Information search

• Seek information in outside

environment
• Non-marketing controlled
• Marketing controlled
 External
Information Searches
Need Less Need More
Information Information

Less Risk More Risk

More knowledge Less knowledge
More product experience Less product experience
Low level of interest High level of interest
Confidence in decision Lack of confidence
Evoked Set

Evoked Set

Group of brands, resulting

from an information search,
from which a buyer can choose
 Evaluation of Alternatives
and Purchase

Evoked Set Analyze product

attributes

Use cutoff criteria

Rank attributes by
importance
Purchase
Buyer Decision Process
Step 1. Need Recognition

Buyer
Recognizes a
Problem or
Internal a Need External
Stimuli – Arising From: Stimuli-
Hunger Friends
The Buyer Decision Process
Step 2. Information Search

Personal Sources •Family, friends, neighbors

•Most effective source of
information
Commercial Sources •Advertising, salespeople
•Receives the most information
from these sources

Public Sources •Mass Media

•Consumer-rating groups

•Handling the product

Experiential Sources •Examining the product
•Using the product
The Buyer Decision Process
Step 3. Evaluation of Alternatives

Consumer May Use Careful

Calculations & Logical Thinking

Consumers May Buy on Impulse and

Rely on Intuition
Consumers May Make Buying Decisions
on Their Own

Consumers May Make Buying Decisions

Only After Consulting Others
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
The Buyer Decision Process
Step 4. Purchase Decision

Purchase Intention
Desire to buy the most preferred brand

Attitudes Unexpected
of Others Situational
Factors

Purchase Decision
The Buyer Decision Process
Step 5. Post-purchase Behavior

Satisfied Customer!

Cognitive Dissonance
Consumer’s
Expectations of Product’s Performance
Product’s Perceived
Performance

Dissatisfied Customer
Cognitive Dissonance

Cognitive Inner tension that a

Dissonance
consumer experiences
after recognizing an
inconsistency between
behavior and values or
opinions.
 Post-purchase Behavior
Consumers can reduce dissonance by:
 Seeking information that reinforces positive
ideas about the purchase
 Avoiding information that contradicts the
purchase decision
 Revoking the original decision by returning
the product

Marketing can minimize dissonance through

effective communication with purchasers.
 Problem Solving Continuum
Low involvement High involvement
Frequently purchased Infrequently purchased
Inexpensive Expensive
Little risk High risk
Little information needed Much information desired

Routinized Limited Extensive

Response Problem Problem
Behavior Solving Solving

Low involvement High involvement

 Routine
Response Behavior
 Little involvement in selection process

 Frequently purchased low cost goods

 May stick with one brand

 Buy first/evaluate later

 Quick decision
Extensive Decision Making

 High levels of involvement

 High cost goods

 Evaluation of many brands

 Long time to decide

 May experience cognitive dissonance

Levels of involvement

 High involvement

 Low involvement

 Enduring involvement

 Situational involvement
Factors Influencing Consumer
Behavior
Factors Affecting Consumer
Behavior: Social

Groups Membership,
Reference, or Aspirational

Family Most Important

Consumer Buying Organization

Roles and Status

Factors Affecting Consumer
Behavior: Personal

Personal Influences

Age and Life Economic Personality &

Occupation Situation Self-Concept
Cycle Stage

Lifestyle Identification

Activities Interests Opinions

Factors Affecting Consumer Behavior:
Psychological

Motivation

Psychological
Factors Affecting
Beliefs and Buyers
Choices Perception
Attitudes

Learning
Lifestyle Dimensions
Adopter Categories
Adoption Process Steps
Awareness

Interest

Evaluation

Dissonance
Trial
may set in
after the
Decision decision!

Confirmation