Consumer Behavior

Consumer Markets and Buyer Behavior

• Consumer buyer behavior is the buying behavior of final consumers—
individuals and households that buy goods and services for personal
consumption.
• Consumer markets are made up of all the individuals and households
that buy or acquire goods and services for personal consumption.

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Model of Consumer Behavior
Figure 1 The Model of Buyer Behavior

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Characteristics Affecting Consumer Behavior (1 of 15)
Figure 2 Factors Influencing Consumer Behavior

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Characteristics Affecting Consumer Behavior (2 of 15)
Cultural Factors
Culture is the set of basic values, perceptions, wants, and behaviors
learned by a member of society from family and other important institutions.

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Characteristics Affecting Consumer Behavior
(3 of 15)

Cultural Factors
Subcultures are groups of people within a
culture with shared value systems based on
common life experiences and situations.

Targeting Hispanic consumers: Nestle’s DiGiorno

brand worked with Twitter’s U.S. Hispanics team
and the NFL to create a football campaign with
Spanish tweets.

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Characteristics Affecting Consumer Behavior (4 of 15)
Cultural Factors
Social classes are society’s relatively permanent and ordered divisions
whose members share similar values, interests, and behaviors.
Measured as a combination of occupation, income, education, wealth, and
other variables

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Characteristics Affecting Consumer Behavior
(5 of 15)

Groups and Social Networks

• Reference groups
• Opinion leaders
• Word-of-mouth influence
• Influencer marketing
• Online social networks
Influencer marketing: CoverGirl’s “I Am What I Make
Up” campaign uses a diverse team of influential
brand ambassadors who explain authentically in
their own words what the slogan means to them.

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Characteristics Affecting Consumer Behavior
(6 of 15)

Social Factors

• Family is the most important consumer-buying

organization in society.

• Role and status can be defined by a person’s

position in a group.

Harnessing the power of mom-to-mom influence: Each year,

Disney invites 175 to 200 moms and their families to its Disney
Social Media Moms Celebration in Florida, an affair that’s a mix
of public relations event, educational conference, and family
vacation with plenty of Disney magic for these important mom
influencers.

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Characteristics Affecting Consumer Behavior
(7 of 15)

Personal Factors
Occupation affects the goods and services
bought by consumers.
Age and Life Stage affect tastes in food,
clothes, furniture, ad recreation.
Appealing to occupation segments:
Economic situations include trends in Medical apparel maker FIGS sells modern,
spending, personal income, savings, interest comfortable, and functional scrubs direct to
rates. medical and health professionals.

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Characteristics Affecting Consumer Behavior
(8 of 15)

Personal Factors
Lifestyle is a person’s pattern of living as
expressed in his or her psychographics.
Personality refers to the unique psychological
characteristics that distinguish a person or group.

Brand personality: MINI markets to personality

segments of people who are “adventurous,
individualistic, open-minded, creative, tech-savvy, and
young at heart”— anything but normal—just like the car.

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Characteristics Affecting Consumer Behavior
(9 of 15)

Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs and attitudes
This classic ad from the American Association of Advertising
Agencies pokes fun at subliminal advertising. “So-called ‘subliminal
advertising’ simply doesn’t exist,” says the ad. “Overactive
imaginations, however, most certainly do.”

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Characteristics Affecting Consumer Behavior
(10 of 15)

Psychological Factors
A motive (or drive) is a need that is sufficiently pressing to direct the person
to seek satisfaction of the need.
Motivation research refers to qualitative research designed to probe
consumers’ hidden, subconscious motivations.

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Characteristics Affecting Consumer Behavior
(11 of 15)
Figure 3 Maslow’s Hierarchy of Needs

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Characteristics Affecting Consumer Behavior
(12 of 15)
Psychological Factors
Perception is the process by which people select, organize, and interpret
information to form a meaningful picture of the world.
Perceptual Processes
• Selective attention
• Selective distortion
• Selective retention

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Characteristics Affecting Consumer Behavior
(13 of 15)
Psychological Factors
Selective attention is the tendency for people to screen out most of the
information to which they are exposed.
Selective distortion is the tendency for people to interpret information in a
way that will support what they already believe.
Selective retention is the tendency to remember good points made about a
brand they favor and forget good points made about competing brands.

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Characteristics Affecting Consumer Behavior
(14 of 15)
Psychological Factors
Learning is the change in an individual’s behavior arising from experience
and occurs through the interplay of:
• Drives
• Stimuli
• Cues
• Responses
• Reinforcement

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Characteristics Affecting Consumer Behavior
(15 of 15)
Psychological Factors
A belief is a descriptive thought that a person has about something based
on:
• knowledge
• opinion
• faith

An attitude describes a person’s relatively consistent evaluations, feelings,

and tendencies toward an object or idea.

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Types of Buying Decision Behavior (1 of 2)
• Complex buying behavior
• Dissonance-reducing buying behavior
• Habitual buying behavior
• Variety-seeking buying behavior

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Types of Buying Decision Behavior (2 of 2)
Figure 4 Four Types of Buying Behavior

Source: Adapted from Henry Assael, Consumer Behavior and Marketing Action (Boston:
Kent Publishing Company, 1987), p. 87. Used with permission of the author.
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Figure 5 The Buyer Decision Process

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The Buyer Decision Process (1 of 6)
Need Recognition
Need recognition is the first stage of the buyer decision process, in which
the consumer recognizes a problem or need triggered by:
• Internal stimuli
• External stimuli

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The Buyer Decision Process (2 of 6)
Information Search
Information search is the stage of the buyer decision process in which the
consumer is motivated to search for more information.
Sources of information:
– Personal sources
– Commercial sources
– Public sources
– Experiential sources

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The Buyer Decision Process (3 of 6)
Evaluation of Alternatives
Alternative evaluation is the stage of the buyer decision process in which
the consumer uses information to evaluate alternative brands in the choice
set.

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The Buyer Decision Process (4 of 6)
Purchase Decision
Purchase decision is the buyer’s decision about which brand to purchase.
The purchase intention may not be the purchase decision due to:
• Attitudes of others
• Unexpected situational factors

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The Buyer Decision Process (5 of 6)
Postpurchase Behavior
Postpurchase behavior is the stage of the buyer decision process in which
consumers take further action after purchase, based on their satisfaction or
dissatisfaction.

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The Buyer Decision Process (6 of 6)
Postpurchase Behavior
Cognitive dissonance is buyer discomfort
caused by postpurchase conflict.

Postpurchase cognitive dissonance:

Postpurchase customer satisfaction is a key
to building profitable customer relationships.
Most marketers go beyond merely meeting
the customer expectations—they aim to
delight customers.

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The Customer Journey
Customer journey: the sum of the ongoing
experiences consumers have with a brand
that affect their buying behavior, engagement,
and brand advocacy over time.

The customer journey: By understanding the

customer journey, marketers can work to create
brand experiences that will result in positive
purchase behavior, engagement, and brand
advocacy over time.

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The Buyer Decision Process for New Products
(1 of 3)

The adoption process is the mental

process an individual goes through from
first learning about an innovation to final
regular use.
The adoption process: To help get
• Stages in the adoption process include: tentative consumers over the buying
– Awareness decision hump, Beyond Meat invited
consumers to “try some free—zip, zero,
– Interest zilch” at their local grocery store.
– Evaluation
– Trial
– Adoption

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The Buyer Decision Process for New Products (2 of 3)
Individual Differences in Innovativeness
• Innovators
• Early Adopters
• Early Mainstream
• Late Mainstream
• Lagging Adopters

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The Buyer Decision Process for New Products (3 of 3)
Figure 6 Adopter Categories Based on Relative Time of Adoption of
Innovations

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Analyzing and Using Marketing Information
Influence of Product Characteristics on Rate of Adoption
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability

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Thank You!

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