Consumer Behaviour Models

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Chapter 3

• Consumer Behaviour Models

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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.

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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.

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Consumer Decision Making Process

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Consumer Decision Process
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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.

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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).

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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.

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Examining Consumer Motivations

• Marketers recognize need recognition will
  influence the remainder of the decision process.
• To better understand consumers reasoning
  marketers devote considerable attention to
  motives.
• Motives - factors that compel a consumer to take
  a particular action.

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Maslows Hierarchy of Needs
Physiological needs (hunger, thirst)
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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.

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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.

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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.)

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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

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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.

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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.

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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.

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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.

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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.

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The Selective Perception Process
Selective Exposure
Selective Attention
Selective Comprehension
Selective Retention
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Evaluation of Alternatives
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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.

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Evaluative Criteria

• Marketers view their product as a bundle of
  attributes
• Consumers view the product as a set of
  consequences
• Functional consequences are concrete, tangible
  outcomes
• Psychological consequences are abstract and
  subjective

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Consumer Attitudes

• Learned predispositions to respond toward an
  objectan individuals overall feelings toward or
  evaluation of an object.
• Summarize consumers evaluation of an object and
  represent positive or negative feelings and
  behaviours.

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Consumer Attitudes

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

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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

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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.

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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.

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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.

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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.

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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)

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Classical Conditioning Theory
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Operant Conditioning Process
Behavior (consumer uses product or service)
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Environmental Influences on Consumers
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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.

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Roles in Family Decision-Making Process

• Decision maker(s) - makes the purchase decision.
• Purchasing agent - physically makes the purchase.
• Consumer - user of the product.