Chapter 4

Perspectives on Consumer Behavior

Learning Objectives

LO1 Discuss why an understanding of consumer behavior is

valuable in developing advertising and promotional
programs.
LO2 Describe the steps in the consumer decision-making
process.
LO3 Explain the influence on consumer behavior of
psychological processes like perception and motivation.
LO4 Discuss behavioral learning theory and cognitive learning
theory.
LO5 Explain the influence of external factors like culture and
subculture influences.
LO6 Identify new ways to study consumer behavior.

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An Overview of Consumer Behavior

Consumer Behavior
• Process and activities people engage in with relation to products and
services to satisfy their needs and desires.
• Searching for.
• Selecting.
• Purchasing.
• Using.
• Evaluating.
• Disposing of.

Purchase decisions may be influenced by

the personality or lifestyle of the consumer.
This ad for Telluride Ski Resort appeals to
those who enjoy the skier lifestyle.
Source: Telluride Ski & Golf Resort

3
Figure 4-1 Basic Model of Consumer Decision Making

The consumer decision-making process and the relevant internal

psychological processes that occur during each stage of the process are
as follows.

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 Problem
The Consumer Decision-Making Process 1 Recognition

Problem Recognition
• ( )
• Caused by difference between consumer’s ideal state and actual
state.
• Sources:
• Out of stock.
• Dissatisfaction.
• ( )
• Related products or purchases.
• ( )
• New products.

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The Consumer Decision-Making Process 2 Examining Consumer
Motivations

Examining Consumer Motivations

• Helps understand the reasons underlying consumer purchases.
• Motives: Factors that compel a consumer to take a particular action.

• Hierarchy of needs
• Lower-level physiological and safety needs must be satisfied before
higher-order needs become meaningful.

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Figure 4-2 Maslow’s Hierarchy of Needs Examining Consumer
Motivations

Access the text alternative for slide images.

7
Figure 4-2 Maslow’s Hierarchy of Needs Examining Consumer
Motivations

Self- fulfillment, satisfaction

Need for recognition, respect

Friends..

Clothes, house

Water, foods

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Figure 4-2 Maslow’s Hierarchy of Needs Examining Consumer
Motivations

① Physiological: ( )
for things required to sustain life such as food, water,

② Safety: need for security and safety from physical harm

③ Social love and belonging: desire to have satisfying

relationships with others and feel a sense of love, affection,
belonging, acceptance

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Figure 4-2 Maslow’s Hierarchy of Needs Examining Consumer
Motivations

④ Esteem: need for feel a sense of accomplishment and gain

recognition, status and respect from others

⑤ Self actualization: ( )and a desire to

realize one’s own potential
• The low level physiological and safety needs must be satisfied
to before the higher-order needs become meaningful.

• However, in developed countries, basic physiological needs

are met, marketers often sell products by appealing to
consumers’ higher-level needs.

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 Information
The Consumer Decision-Making Process 6 search

Information Search
• Internal search: Information retrieval that involves recalling:

• External search: Seeking information from external sources.

• Internet, personal, and public sources.
• Marketer-controlled sources.
• Personal experience.

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 Information
Exhibit 4-7 search

Source: Angie’s List

AngiesList.com is a valuable source of information for consumers

engaging in external searches online.

Access the text alternative for slide images.

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 Information
The Consumer Decision-Making Process 7 search

Information Search continued

• Extent of external source to be used depends on:
• Importance of purchase decision.

• Effort needed to acquire information.

• Amount of past experience relevant.

• Degree of perceived risk associated with purchase.

• Time available.

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The Consumer Decision-Making Process 8 Perception

Perception

• Individual process and it depends on:

• Internal factors such as person’s beliefs, experiences, needs,
moods, and expectations
• Characteristics of a stimulus such as size, color, intensity)

In this ad for Simply

Orange, the use of color
and context influences the
consumer’s perception and
helps promote the urge to
purchase orange juice.
Source: Simple Orange Juice Company

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Consumer’s information process Perception

stimulus(sensory)

exposure
Perceptual
process
attention

Interpretation/
comprehension

Memory/knowledge

Attitude

Purchase behavior
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The Consumer Decision-Making Process 9 Perception

Perception continued
• Sensation:

• Immediate, direct response of the senses(taste, smell, sight,

touch, and hearing) to stimulus (advertising, package, brand
name, Point of Purchase display)
• Selecting information:

• Internal psychological factors such as consumers personality,

needs, motives, expectations, and experiences) determine what
one focuses on and/or ignores

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The Consumer Decision-Making Process 10 Perception

Perception continued
• Interpreting the information:
• Organizing and categorizing information influenced by:
• Internal psychological factors.
• Nature of the stimulus.
• Selective perception:

• Perception viewed as a filtering process in which internal and

external factors influence what is received and how it is processed
and interpreted.
• Results from the higher number of complexity of the marketing
stimuli a person is exposed to
• Selective perception may occur at the exposure, attention,
comprehension, or retention stage.

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The Consumer Decision-Making Process 11 Perception

Perception continued
▪ Selective Perception continued
• Selective exposure
– Consumers choose whether or not to make
themselves available to information.
• Selective attention
–(
)

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The Consumer Decision-Making Process 12 Perception

Perception continued
▪ Selective Perception continued
• Selective comprehension
– Consumers interpret information on the basis of their own
attitudes, beliefs, motives, and experiences
– Consumers interpret info in a manner that supports their
own position.
• Selective retention
– Consumers do not remember all the information they see,
hear, or read even after attending to and comprehending it
– Mnemonics: Symbols, rhymes, associations, and images
that assist in the learning and memory process

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The Consumer Decision-Making Process 13 Perception

Perception continued
• Subliminal Perception
– Ability to perceive a stimulus that is below the level of
conscious awareness
– Controversial tactic with strong ethical implications

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Consumer’s information process Perception

stimulus(sensory)

exposure
Perceptual
process
attention

Interpretation/
comprehension

Memory/knowledge

Attitude

Purchase behavior
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The Perceptual Process Perception

Influences
• Sensory thresholds(critical point)
• Physical limit s on attention
• Voluntary attention selectivity
• Involuntary attention selectivity
• Personal/situational factor

Sensory Exposure
Sight
Attention Comprehension
Sound
Smell
Taste
Touch

Focusing on one or more Understanding new information

environmental stimuli while by relating it to information
potentially ignoring others already stored in memory
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 Alternative
The Consumer Decision-Making Process 14 Evaluation

Alternative Evaluation
• Comparing brands that have been identified as capable of:
• Solving the consumption problem.

• Satisfying the needs or motives that initiated the decision process.

• Evoked set: Subset of all brands of which consumer is aware.

• Size depends on:

• Importance of the purchase.

• Time and energy spent comparing alternatives.

• Top-of-mind awareness; reminder advertising.

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 Alternative
Evaluation
What is the Evoked set?
Once a need has been recognized, consumers are
motivated to search for solutions to satisfy the need.
Several alternatives may come to mind.
They are the evoked set.

I am Hungry. And I need to buy something for lunch.

However, I have a class on 20 minutes. So, I guess…
instant Ramen would be good.

Then, Some cup noodle brands come to mind.

Shin Ramen, Jin Ramen, Jjajang Ramen, etc.
Those cup noodle brands are the evoked set

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 Alternative
Evaluation
Consideration Set

• Consideration set: the last group of candidates to be

compared and considered before purchasing.

I'm going to buy a car.

Mercedes, BMW, Genesis... These brands came to mind. Consideration set
But my budget is 35 million Korean won. - about 30,000
dollars.
The finalists in the budget plan were Hyundai Sonata, Kia K5,
and Renault Samsung SM5.
Among them, I chose Sonata.

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 Alternative
The Consumer Decision-Making Process 15 Evaluation

Alternative Evaluation continued

• Evaluative criteria and consequences.
• Evaluative criteria: Dimensions or attributes of a product that are used to
compare different alternatives.

• Objective or subjective.

• Viewed as product or service attributes.

• Functional consequences: Concrete outcomes of product or service

usage.

• Tangible and directly experienced by consumers.

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 Alternative
The Consumer Decision-Making Process 16 Evaluation

Alternative Evaluation continued

• Evaluative criteria and consequences. continued
• Psychosocial consequences: Abstract outcomes that are more
intangible, subjective, and personal.

• Subprocesses:

• Process by which consumer attitudes are created, reinforced, and

changed.

• Decision rules or integration strategies used to compare brands and

make purchase decisions.

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The Consumer Decision-Making Process 17 Attitude formation

Attitudes
• Learned ( ) to respond to an object.

• Theoretically summarize consumer’s evaluation of an object.

• Represent positive or negative feelings and behavioral tendencies.

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 Alternative
The Consumer Decision-Making Process 18 Evaluation

Attitudes continued
• Multiattribute attitude model:
• Attributes of product or brand provide basis on which consumers form
attitudes.

• Consumers attach different levels of importance to different attributes.

• Salient beliefs:

• Beliefs concerning specific attributes.

• Consequences that are activated and form basis of attitude.

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 Alternative
The Consumer Decision-Making Process 19 Evaluation

Attitudes continued

• Multiattribute attitude model: continued

n
AB =  Bi  Ei
i =1

where AB = attitude toward a brand

Bi = beliefs about the brand’s performance on attribute i

Ei = importance attached to attribute i

n = number of attributes considered

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Sum of weight=1
Ei Bi Attitude formation
Weight Café A Café B

Price 0.5 7 3

Taste 0.3 5 7

Convenience 0.2 2 7
Total 1 w/o weight 14 w/o weight 17

Total 1 w/ weight 5.4 w/ weight 5.0

* Price, taste, convenience are evaluated with 7 point scales(1-7)

Unless we give weight,

The sum of attitudes would be
café A=14 , café B= 17
I will choose café B (café B is higher)

If we give them weights,

The sum of attitudes would be
Café A=5.4, café B= 5.0
I will choose café A (café A is higher)
 Alternative
The Consumer Decision-Making Process 20 Evaluation

Attitudes continued
• Attitude change strategies:

• Changing strength or belief rating of brand on an important attribute.

• Changing consumers’ perceptions of the importance or value of attribute.

• Adding new attributes to the attitude formation process.

• Changing perceptions of belief ratings for a competing brand.

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The Consumer Decision-Making Process 21 Integration Processes

Integration Processes and Decision Rules

• Integration processes:
• Combining product knowledge, meanings, and beliefs to evaluate
alternatives.
• Decision rules: Strategies used to decide among alternatives.
• Heuristics:

• Simplified decision rules customers use for purchase decisions.

• Affect referral decision rule:

• Selection is made on basis of overall impression or summary

evaluation of various alternatives under consideration.

• (i.e) When you meet someone on a blind date, you can see what kind
of personality this person sitting on the other side is by looking at the
attire or posture.
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 CHOICE HEURISTICS Integration Processes

➢ Lexicographic (single attribute) Heuristic—consumers

compare brands on one key attribute and choose the brand that
performs best on this single attribute.
➢ Select the brands that perform best on the most important
attributes
➢ Ex) When I buy athletic shoes such as running shoes, I only care
about price.

Non-compensatory choice strategy.

weight A B C “Price” is
the most
Price 0.5 6 4 4
important
Perceived 0.3 4 5 5 attribute
quality
Design 0.2 3 5 6
The Consumer Decision-Making Process 22 Purchase Decision

Purchase Decision
• Purchase intention:
• Predisposition to buy a certain brand by matching purchase motives with
attributes of brands considered.

• Brand loyalty:
• ( )

• Marketers try to gain and maintain brand loyal customers by using

reminder advertising or running various promotions to deter consumers
from switching brands.

• (

• )

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Figure 4-5 Brands That Have the Most Brand Loyalty

Category Winnera Category Winnera

Airline JetBlue Ice Cream Ben & Jerry’s
App-based Rideshare Lyft Laptop Computer Microsoft Surface
Athletic Footwear Nike Online Retailer Amazon
Automotive Hyundai Online Video Netflix
Streaming
Casual/Fast Casual Panera Pizza Domino’s
Dining
Credit Card Discover Social Networking Instagram
Sites
Energy Drinks Red Bull
aBrands listed have highest loyalty ranking in Brand Keys 2016 Customer Loyalty Engagement Index.

Source: Brand Keys, Inc.

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 Postpurchase
The Consumer Decision-Making Process 23 Evaluation

Postpurchase Evaluation
• ( )

• ( )
• Cognitive dissonance: Psychological tension experienced after a
difficult purchase choice.
• Postpurchase communication is important.

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 Postpurchase
Expectancy Disconfirmation Evaluation

Satisfaction depends on the expectations for the products

you choose
- Consumers build expectations for product performance before
purchasing a brand/product
-Compare expectations and actual performance after purchasing a
product
• actual performance >= Pre-Expectation Satisfaction
• actual performance < Pre-Expectation Dissatisfaction

expectation Satisfaction
Dissatisfaction

Actual Actual
performance performance
The Consumer Decision-Making Process 24

Variations in Consumer Decision Making

• Many purchase decisions based on habitual or routine choice process.

• Marketers need to keep brands in consumer’s evoked set.

• Marketers of new brands or those with a low market share face a

challenge.

• A more complicated decision-making process occurs when consumers

have limited experience in purchasing a particular product or service.

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Environmental Influences on Consumer Behavior 1

Culture
• Complexity of learned meanings, values, norms, and customs shared
by members of society.

Subcultures
• Smaller segments within a culture, whose beliefs, values, norms, and
patterns of behavior set them apart from the larger cultural
mainstream.
• Social class:
• Homogeneous divisions in a society into which people sharing similar
lifestyles, values, norms, interests, and behaviors can be grouped.

LO4-5

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Exhibit 4-18

This ad for Giorgio Armani's

fragrance Si Passione, is
meant to appeal to the
growing Hispanic subculture
in the U.S.

Source: Giorgio Armani S.p.A

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Environmental Influences on Consumer Behavior 2

Reference Groups
• Group whose presumed perspectives or values are being used by an
individual as basis for judgments, opinions, and actions.
• Types: Associative, aspirational, or dissociative.
• Can include families.
Situational Determinants
• Specific situation in which consumers plan to use the product or brand
directly affects their perceptions, preferences, and purchase
behaviors.
• Types: Usage, purchase, and communications situation.

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 Figure 4-11 Roles in the Family Decision-Making Process

The initiator. The person responsible for initiating the purchase decision process—
for example, the mother who determines she needs a new car.
The information provider. The individual responsible for gathering information to
be used in making the decision—for example, the teenage car buff who knows
where to find product information in specific magazines or collects it from dealers.
The influencer. The person who exerts influence as to what criteria will be used in
the selection process. All members of the family may be involved. The mother may
have her criteria, whereas others may each have their own input.
The decision maker(s). The person (or persons) who actually makes (make) the
decision. In our example, it may be the mother alone or in combination with another
family member.
The purchasing agent. The individual who performs the physical act of making the
purchase. In the case of a car, a husband and wife may decide to choose it together
and sign the purchase agreement.
The consumer. The actual user of the product. In the case of a family car, all family
members are consumers. For a private car, only the mother might be the consumer.

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Alternative Approaches to Consumer Behavior

New Methodologies
• Qualitative methods.
• Linguistic or historical perspective of communications.
• Examining symbolic meanings of advertising and facets of
consumption.
New Insights
• Leads to better understanding of:
• Cultural significance of advertising messages.

• Influence of advertising images on society.

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