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Chapter 3Consumer Behaviour Models
Chapter 3 : Consumer Behaviour Models
Chapter Objectives
• To understand the role consumer behaviour plays in the development and implementation of advertising and promotion programs.
• To understand the consumer decision-making process and how it varies for different types of purchase.
Chapter 3 : Consumer Behaviour Models
Chapter Objectives
• To understand various internal psychological processes, their influence on consumer decision making, and implication for advertising and promotion.
• To recognize external factors such as culture, social class, group influences, and situational determinants and how they affect consumer behaviour.
Chapter 3 : Consumer Behaviour Models
Consumer Decision Making Process
Need RecognitionNeed Recognition
Information SearchInformation Search
Alternative EvaluationAlternative Evaluation
Purchase DecisionPurchase Decision
Postpurchase EvaluationPostpurchase Evaluation
Chapter 3 : Consumer Behaviour Models
Consumer Decision Process
Need RecognitionNeed Recognition
Information SearchInformation Search
Alternative EvaluationAlternative Evaluation
Purchase DecisionPurchase Decision
Postpurchase EvaluationPostpurchase Evaluation
MotivationMotivation
PerceptionPerception
Attitude FormationAttitude Formation
IntegrationIntegration
LearningLearning
Decision Process Stages Psychological Processes
Chapter 3 : Consumer Behaviour Models
Sources of Need Recognition
• Out of stock.
• Purchase decision is routine.
• Resolved by choosing familiar brand.
• Dissatisfaction.
• Dissatisfied with current state of product/service. (I.E. Comfort/style).
• Advertising is used to help consumers recognize need for new product.
Chapter 3 : Consumer Behaviour Models
Sources of Need Recognition
• New needs or wants.
• Created by life changes. (I.E. Graduation, employment status, financial situation).
• Wants are desired but not essential.
• Related product purchase.
• Purchase of a new product will most likely trigger purchase of accessories. (I.E. New camera will require film).
Chapter 3 : Consumer Behaviour Models
Sources of Need Recognition
• Marketer-induced recognition.
• Marketers’ encourage discontentment with current state or situation.
• Brand switching is encouraged by sales promotion.
• New products.
• Innovative products may stimulate a need.
• Consumers may not see a need for what the marketer is selling.
Chapter 3 : Consumer Behaviour Models
Examining Consumer Motivations
• Marketers recognize need recognition will influence the remainder of the decision process.
• To better understand consumer’s reasoning marketer’s devote considerable attention to motives.
• Motives - factors that compel a consumer to take a particular action.
Chapter 3 : Consumer Behaviour Models
Maslow’s Hierarchy of Needs
Physiological needs(hunger, thirst)
Safety needs(security, protection)
Social needs(sense of belonging, love)
Esteem needs(self-esteem, recognition, status)
Self-actualization needs(self-development, realization)
Chapter 3 : Consumer Behaviour Models
Market Research Methods
• In-depth interviews.–The consumer talks freely in an unstructured interview to
obtain insights into his or her motives, ideas or opinions.
• Projective techniques.–Methods allowing consumers to project values, motives,
attitudes or needs on some external object.
Chapter 3 : Consumer Behaviour Models
Market Research Methods
• Association tests.–Consumers respond with the first thing that comes to
mind when presented with some verbal or pictorial stimulus.
• Focus groups.–A group of consumers with similar backgrounds or
interests discuss a product, idea or issue.
Chapter 3 : Consumer Behaviour Models
Information Search
• Internal search– The scanning of information stored in memory regarding
various purchase alternatives
• External search– Engaged when internal search does not yield enough
information (external sources of information are used.)
Chapter 3 : Consumer Behaviour Models
External Information Search
• Personal sources– Friends, relatives, co-workers
• Market-controlled sources– Ads, salespeople, displays
• Public sources– Print articles, news reports
• Personal experience– Handling, examining, testing, using
Chapter 3 : Consumer Behaviour Models
Perception
• The process by which individuals receive, attends to, interprets and stores information to create a picture of the world.
• Selective perception– Filtering process in which internal and external factors
influence what is received and how it is processed.• Occurs in all 4 stages of perception process.
Chapter 3 : Consumer Behaviour Models
Stages in Perceptual Process
• Stage 1: sensation.– Immediate direct response of the senses to a stimulus.
– Selective exposure.• Consumers choose whether or not to make themselves
available for information.
Chapter 3 : Consumer Behaviour Models
Stages in Perceptual Process
• Stage 2: selecting the information.– Personality, needs, motives, expectations will affect
information that is selected.
– Selective attention.• Consumer focuses on certain stimuli while excluding others.
Chapter 3 : Consumer Behaviour Models
Stages in Perceptual Process
• Stage 3: interpreting the information.– Organizing, categorizing, and interpreting the incoming
information.
– Selective comprehension.• Interpreting information based on their own attitudes, beliefs,
motives and experiences.
Chapter 3 : Consumer Behaviour Models
Stages in Perceptual Process
• Stage 4: retaining the information.– Storage of information into short-term and long-term
memory.
– Selective retention.• Consumers do not remember everything they see,
hear, or read.
Chapter 3 : Consumer Behaviour Models
Selective Retention
The Selective Perception Process
Selective Comprehension
Selective Attention
Selective Exposure
Chapter 3 : Consumer Behaviour Models
Evaluation of Alternatives
All available brandsBrand A Brand B Brand C Brand D Brand E
Brand F Brand G Brand H Brand I Brand J
Brand K Brand L Brand M Brand N Brand O
Evoked Set of Brands
Brand B Brand E
Brand I
Brand M
Brand F
Chapter 3 : Consumer Behaviour Models
Evaluative Criteria
• Dimensions or attributes of a product or service used to compare alternatives.
• (I.E) purchase of an automobile.
– Objective criteria - price, warrantee, etc.
– Subjective criteria - style, appearance, image.
Chapter 3 : Consumer Behaviour Models
Evaluative Criteria
• Marketer’s view their product as a bundle of attributes
• Consumer’s view the product as a set of consequences:– Functional consequences are concrete, tangible
outcomes
– Psychological consequences are abstract and subjective
Chapter 3 : Consumer Behaviour Models
Consumer Attitudes
•Learned predispositions to respond toward an object—an individual’s overall feelings toward or evaluation of an object.
•Summarize consumer’s evaluation of an object and represent positive or negative feelings and behaviours.
Chapter 3 : Consumer Behaviour Models
Consumer Attitudes
• Consumers hold attitudes toward:– Individuals– Brands– Companies– Organizations– Product categories– Retailers– Advertisements– Media
Chapter 3 : Consumer Behaviour Models
Attitude Change Strategies
• Increase or change the strength or belief rating of a brand on an important attribute
• Change consumers’ perceptions of the importance or value of an attribute
• Add a new attribute to the attitude formation process
• Change perceptions of belief ratings for a competing brand
Chapter 3 : Consumer Behaviour Models
Purchase Decision
• At some point consumer stops evaluating alternatives and makes purchase decision.
• Consumer develops a purchase intention or predisposition to buy a certain brand.
• Purchase decisions will be different depending on the complexity of the product.
Chapter 3 : Consumer Behaviour Models
Integration Processes
• The way product knowledge, meanings and beliefs are combined to evaluate two or more alternatives.
• Consumers make purchase selections by using formal integration strategies.
• Process involves deliberate evaluation of the alternatives attribute by attribute.
Chapter 3 : Consumer Behaviour Models
Postpurchase Evaluation
• After consumption the consumer assesses level of performance of the product or service.
• Feedback acquired from actual use of a product influences the likelihood of future purchases.
• Advertising is used to reinforce consumer decisions to purchase their brands.
Chapter 3 : Consumer Behaviour Models
Satisfaction/Dissatisfaction
• A judgment consumers make with respect to the pleasurable level of consumption-related fulfillment.
• Satisfaction occurs when expectations are either met or exceeded.
• Dissatisfaction results when performance is below expectations.
Chapter 3 : Consumer Behaviour Models
Behavioral Learning Theory
• Classical conditioning– Assumes that learning is an associative process with
an already existing relationship between a stimulus and a response.
• Operant conditioning– The individual must actively operate or act on some
aspect of the environment for learning to occur. • Response is positive reinforcement (reward) or negative
reinforcement (punishment)
Chapter 3 : Consumer Behaviour Models
Classical Conditioning Theory
Conditionedstimulus
(Brita waterfiltration pitcher)
Conditionedstimulus
(Brita waterfiltration pitcher)
Association develops throughcontiguity and repetition
Unconditionedstimulus(waterfall)
Unconditionedstimulus(waterfall)
Unconditionedresponse
(freshness, purity)
Unconditionedresponse
(freshness, purity)
Conditionedresponse
(freshness, purity)
Conditionedresponse
(freshness, purity)
Chapter 3 : Consumer Behaviour Models
Increase or decrease inprobability of repeatbehavior (purchase)
Increase or decrease inprobability of repeatbehavior (purchase)
Operant Conditioning Process
Positive or negativeconsequences occur(reward or punishment)
Positive or negativeconsequences occur(reward or punishment)
Behavior(consumer uses
product or service)
Behavior(consumer uses
product or service)
Chapter 3 : Consumer Behaviour Models
Environmental Influences on Consumers
Culture
Subculture
Social class
Referencegroups
Situations
Chapter 3 : Consumer Behaviour Models
Roles in Family Decision-Making Process
• Initiator - initiates purchase decision.
• Information provider - gathers information to be used in making decision.
• Influencer - influences criteria used in selection process.
Chapter 3 : Consumer Behaviour Models
Roles in Family Decision-Making Process
• Decision maker(s) - makes the purchase decision.
• Purchasing agent - physically makes the purchase.
• Consumer - user of the product.