Chapter 3 Consumer Behaviour Models. Chapter 3 : Consumer Behaviour Models Chapter Objectives To understand the role consumer behaviour plays in the development

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 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.


Consumer Decision Making Process

Need RecognitionNeed Recognition

Information SearchInformation Search

Alternative EvaluationAlternative Evaluation

Purchase DecisionPurchase Decision

Postpurchase EvaluationPostpurchase Evaluation


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


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.



• 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).



• 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.


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.


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)


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.


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.


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.)


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


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.


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.



• 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.



• 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.



• 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.


Selective Retention

The Selective Perception Process

Selective Comprehension

Selective Attention

Selective Exposure


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


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.


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


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.


Consumer Attitudes

• Consumers hold attitudes toward:– Individuals– Brands– Companies– Organizations– Product categories– Retailers– Advertisements– Media


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


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.


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.


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.


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.


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)


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)


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)


Environmental Influences on Consumers

Culture

Subculture

Social class

Referencegroups

Situations


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.


Roles in Family Decision-Making Process

• Decision maker(s) - makes the purchase decision.

• Purchasing agent - physically makes the purchase.

• Consumer - user of the product.

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Chapter 3 Consumer Behaviour Models. Chapter 3 : Consumer Behaviour Models Chapter Objectives To understand the role consumer behaviour plays in the development