Consumer Behaviour

Consumers make a
purchase decision

Consumer HOW
Behaviour

Consumers use &

dispose of product +
 Types of
Decision Impulse
Making Buying
Process Habitual Decision Limited Decision Extensive Decision
Making Making Making

Types Repeat Purchase

Characteristics
Decisions Variety
Involvement
Brand Loyal Decisions Low Consumer makes
Low to Moderate
purchase Seeking High
Consumer
Time makes purchase Short decision without staying
Short to Moderate Long
decision staying committed to a committed to a brand due to
Unitbrand
Cost due to his /her certain Low sheer inertia or non-availability
of P/S Low to Moderate High
expectations are met or of other brands or alternatives
exceeded.
Information Search Internal Only
and also dueInternal & Limited
to another brand External Internal & External
challenges the logic of buying
Decision Making Not at all former. Frequent Complex
Degree of Complexity Lower Moderate Higher
Decision Process Simple Common Detailed & Rigorous
Buying's of Preferred Brands Unfamiliar Brands Luxury Brands
Risk Lower Moderate High
Post-purchase Dissonance Nil Nil High
Alternative Evaluation One or Two Few Many
Product Attributes Considered One or Two Few Many
Brands & Retailers One or Two Few Many
 Variables Affecting Decision Process

Individual Environmental Psychological

Differences Influences Process

Personal Influence: Our behaviors

Demographics-
Learning-
Consumer
Consumer Psychographics-
A Culture
The
process
Motivation-
Resources- size,
The Eachthatstructure,
Culture:
drive
are Study
creates
to
consumer satisfy
often of
Values, Life
changes
both
brings style,
Languages,
in bypersonality,
physiological
three
Information
affected primary Myths,
Referenceand
Demographics Psychographics Stimuli Social
Family:
Class
Most important
Processing
Learning
social
psychological
and behavior,
distribution
resources into attitude,
needsof athrough
immediate
every values
population.
decision
 Marketeror and
product
Customs,
Group interests
expected,
making purchase
and Rituals,andLeaders
through
situation.
Opinion consumption.
Laws, that’s Ideas,
Consumer Knowledge- Information
Dominated institution stored
to do in
the memory
primary decision
Social Class: Division experiencewithin and society
practice. Material artifacts,and and disposal
symbols of that
relevant to the purchase, • Advertising
making consumption
with a complex and varying
composed
Age
Consumer Under of individuals
6 year,Consumer
6-11, 12-19,Lifestyle- sharing
20-34, 35-49, 50-60,
Personality-
•60+
A person’s Ahelp
Salespeople
pattern
Personal
way individuals
ofExposure
living as
Attitude interpret,
&expressed
Behaviour
goods & services. Influenceof
pattern ororganizing
roles and functions, and
Changegrouping
Resources Motivation Family • Infomercials
similar values,
Family size Young, single; young,interests,
in his
married, or her
no children;
the and activities,
young, communicate,
married,
• Websites
consistencies interests
child…. andand opinions. evaluate toas
• Point-of-sales of an individual’s
Stimulus Stimulus reactions
behaviors
Gender Male and female Generalization
Attitude-
situations. A an
materials members
learned
Strongly oftendency
society values,
Discrimination
influencing toabout respond
attitudes,
Belief- An organized
Opinion pattern
Leader of knowledge that
People You individual
Know holds
Attention
Primary- as Celebrities
true his or
Secondary-
Income • Low,
Upperlower
Consumer Class
middle, Psychographics
middle,
Learning whenupper A form of
Values-
middle, Lifestyle
learning
and
consistently high that
Situational Culture
occurs
ANon-marketer
personal
toward
self concepts
oriented,
A
value
aThe
given Sport
learned oriented,
ability
isobject.
A reference
and
to
extremely
group
buying
Outdoor oriented,
absolute
A reference groupMwith
behaviour.
her world. Knowledge Personal 
one response Interest-
Behaviour is extended degree
differentiate
with which among
people ofwhich
excitement
people associate
Maslow’s • Unskilled
Hierarchy
Middle Class
worker, of Needs-
skilled worker, ShopA
toor
a relative
owners,
second
Personality
Dominated
stimulus ethical
Compulsive, similar to value.
gregarious, similar products.
authoritarian, ambitious
Occupation businessmen/industrialist, Self employee that accompanies
• Friends both special
interact regularly andmore continuing
less consistently
Eanda
method
Feelings- • An
of
Lower classifying
Class
affective state or human
reaction.
the
1AttitudeFeelings
first.
2 • Family Direct
may
Enthusiastic,
Moreover
in
be positive
positive,
an informal,
Comprehension
indifferent,
the &or
family
face
negative.
negative, hostile
formally
is responsible
than
for
attention to an object, to3face
event manner, topic. primary membership
Primary • Opinion leaders
group, such as aM
needs
Education & Illiterate,
motivations
School SSC/HSC,intoNon five
graduate,
ValuesGraduate
Ethical/moral
/ Postgraduate
thevalues, value, doctrinal/ideological
socialization such as family,
process. (religious, club,
Resources Time Reference
Types Product Purchase
• Media Consumption friends, Persuasion
or fellow valuesSelf-group, or
professional
(General/professional) Money political)
Information social
reception values, and
& processing aesthetic
capability
categories in ascending
Attitude- A learned tendency
Situation order
Knowledge of
to respond
behaviors:consistently
Knowledge
Group As toward
Knowledge aemployees.
situations given object. religious
Knowledge knowledge
group.
O
importance: psychological,
change, so does the individual’s behavior Acceptance
Intentions- Subjective judgment by consumer about how they will behave in future. RY
safety, social, esteem, & self- Socialization Process Inspirational- Non-inspirational-
actualization.Family Indirect A group that A group with which an
someone would individual does not want
Initiator,beliefs
Beliefs & Attitude Changing Influencer, Decision
about Attributes Maker,
Changing Retention
Purchaser,
like
importance join.Consumer
oftoBeliefs to associate.
Adding new Beliefs
 Blackwell’s This model shows a road map of consumers’ minds
Consumer Decision Need Recognition
that marketers and managers can use to help guide
Process Model
product mix, communications, and sales strategies
Internal Search Environmental
Need
Search Recognition – Result of an imbalanceInfluences
Information
Processing Who will between actual and desired status. • Culture
Whether • Social Class
Fully
Stimuli Planned consume
Purchase it? Pre-purchase
to buy Want Recognition – Recognition of an unfulfilled
• Personal Influence
 Marketer Exposure • Family
Both
Dominated the product & brand need and Evaluation
a product thatof
will satisfy it.
• Situation
are decided in advance while
• Advertising Alternatives
• Salespeople
AttentionWhen is it M
going
• Infomercials
to shopping When E Individual
• Websites
consumed? Differences
• Point-of-sales
to buy Expectancy-Value
Attributes ModelPrice of Consumer
Purchase
Reliability Behaviour
Style
materials Comprehension M (30%) (50%)
•
(20 Consumer
%) Resources

 Nonmarketer When Brandconsumer arrives at attitudes (judgments, • Motivation

• Knowledge
Partially
Dominated Planned Purchase
Where is
O
preferences)
it towardsTheThevarious
buyer’s
decision brands through • Attitudesan
• Friends Acceptance attribute A
evaluation 5
procedure.
Consumption 3 4
• Personality, Values,
Intent to buy What
the to buy but
product RY
• Family
• Opinion leaders consumed?
B
decision
to buy
4
about
can 3about where
and Lifestyle
4 each
(Product or
the brand choice is deferredBrand) He or she develops a set of beliefs
• Media
Retention (Components
lead to-
brand stands on each attributes. of
until shopping C
Purchase 3 5
Decision) 3
The expectancy-value model of attitude formation
itValues
How isposits thatonconsumers
5 point scale
Post-consumption
evaluate products and services
External Where to buy
consumed?by combining
Brandtheir Evaluation
brand beliefs – positive
A = 5*0.3+3*0.5+4*0.2 = 3.8& negative
Search
How consumers (Retailer)
dispose of the to importance.
– according
Unplanned Purchase
Both packaging or product
the product and brandafter useBrand B = 4*0.3+4*0.5+3*0.2 = 3.3
• Disposal Dissatisfaction Satisfaction
Cognitive dissonance: questioning the
How much is Brand C = 3*0.3+5*0.5+3*0.2
purchase = 4.0
decision (post-purchase regret)
are
Usually,
decided
• the
at the
How
higher the
point-of-
to reselling
price, the higher the level of cognitive dissonance
Remarketing or
consumed?
saleWhen • experiences
consumers’
Recycling pay expectations
and performance are matched
fall short
Divestment
byofperceived
expectations performance