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Simplified Summary of the Conceptual Model of Consumer Behavior

Consumer behavior is influenced by four main factors:
1. External Influences
 Includes culture, social groups, demographics, and marketing efforts.
 Affects how consumers develop their self-concept and lifestyle.
2. Internal Influences
 Includes perception, emotions, attitudes, and personality.
 Shapes how people make choices and respond to products.
3. Self-Concept & Lifestyle
 Self-Concept: How people see themselves.
 Lifestyle: What they buy, how they use products, and their daily habits.
 These drive consumer decision-making.
4. Decision Process
 Steps: Recognizing a need → Researching → Evaluating options →
Buying → Post-purchase behavior.
 Influenced by self-concept and lifestyle.
Other Important Factors:
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 Organizations (B2B Marketing) – Businesses also buy products (e.g.,

Mercedes buying car parts).
 Regulation – Laws and policies shape how companies market products and
protect consumers.
Key Takeaways:
✔ Consumer decisions are shaped by both external and internal factors.
✔ Self-concept and lifestyle influence buying behavior.
✔ Marketing strategies must align with consumer psychology.
✔ Regulations ensure ethical marketing and consumer rights.
Consumer behavior
is the study of how people are making purchase decisions to satisfy their needs,
wants or desires, and how their emotional, mental, and behavioral responses
influence the buying decision
• What is marketing strategy?
A marketing strategy is how a company will deliver superior customer value to
a specific target segment at a profit. It involves structuring the marketing mix to
effectively meet them.
From the video:
The connection between consumer behavior and marketing strategy involves five
stages.
1. Market Analysis (Understanding the
Environment)
 Focus: Company, competitors, market
conditions, and consumers.
 Tools: SWOT analysis, Porter’s Five Forces.
 Purpose: Helps businesses track trends and
make informed decisions.
2. Market Segmentation (Dividing the Market
into Groups)
 A market segment is a subgroup of consumers
with distinct needs.
 Businesses identify segments that match their
strengths.
 Steps:
1. Identify product-related need sets.
2. Group customers with similar needs.
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3. Describe and select target segments.

3. Marketing Strategy (Applying the Marketing Mix – 4Ps + Service

Quality)
 Key Elements:
✅ Product – What the business offers.
✅ Price – Setting a competitive and profitable price.
✅ Place (Distribution) – Where and how the product is available.
✅ Promotion – How the product is marketed (ads, discounts, PR).
✅ Service – Quality of customer experience.
 Goal: Design a strategy that matches customer expectations and
market conditions.
4. Consumer Decision Process (How Consumers Buy Products)
Stages of Decision-Making:
1. Problem Recognition – Consumer realizes a need.
2. Information Search – Researching product options.
3. Alternative Evaluation – Comparing different brands.
4. Purchase Decision – Choosing a product/service.
5. Usage – How the product is used.
6. Post-Purchase Evaluation – Satisfaction, loyalty, or regret.
🔹 Marketing Impact:
 Companies influence consumers at each stage with ads, reviews,
promotions, and brand positioning.
5. Outcomes of Consumer Behavior (Effects on Individuals, Firms, and
Society)
 Individual Level: Satisfaction, brand loyalty, lifestyle impact.
 Firm Level: Profits, market share, customer retention.
 Society Level: Ethical concerns, environmental impact, regulations.

🔹 Key Takeaways
✔ Consumer behavior drives marketing decisions.
✔ Marketing strategies are designed to influence consumer choices.
✔ Understanding decision-making helps businesses create better
marketing campaigns.
✔ Businesses must consider not just profit but also societal and ethical
impacts.
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1. Social Influences → Affect Psychological Influences

 Social factors like family, friends, culture, and social groups shape
beliefs, preferences, and attitudes toward products.
 Example: A teenager might prefer a specific clothing brand because their
friends wear it.
2. Marketing Influences → Affect Psychological Influences
 Advertisements, branding, promotions, and product placement
influence how consumers perceive and evaluate products.
 Example: A limited-time discount might trigger a sense of urgency,
leading to a faster decision.
3. Situational Influences → Affect Psychological Influences
 The shopping environment, time constraints, or mood affect how
consumers think and react to purchases.
 Example: A holiday sale atmosphere may push consumers to buy more
than they originally planned.
4. Psychological Influences → Directly Affect Consumer Decision-Making
 Perception, motivation, learning, attitudes, and emotions shape why
and how people buy.
 Example: If someone perceives a product as high-quality and aligns it with
their self-image, they are more likely to buy it.
🔹 Final Impact: Consumer Decision-Making
 All external influences (social, marketing, situational) shape
psychological factors, which then drive the final purchase decision.
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She ga
The consumer decision-making process is influenced by multiple interconnected
factors. These factors shape how individuals make purchasing decisions and
respond to products or services.
Key Influencing Factors

1. Marketing Influences 2. Psychological Influences

‒ Marketing objectives ‒ Motivation
‒ Marketing strategy ‒ Perception
‒ Marketing mix ‒ Learning (memory)
‒ Beliefs and attitudes
‒ Self-concept
3. Situational (Environmental) 4. Social Influences
Influences
‒ Household type
‒ Economic conditions ‒ Reference groups
‒ Technological changes ‒ Roles and status
‒ Political environment
5. Personal Factors 6. Cultural Factors
‒ Age and life cycle stage ‒ Culture
‒ Occupation ‒ Subculture
‒ Education ‒ Social class
‒ Economic situation

Impact on the Buyer Decision Process

 The Buyer Decision Process is central, influenced by consumer lifestyle
and experiences.
 These influences shape buyers' responses, which include:
o Product/service & category selection
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o Brand selection

o Reseller selection

o Purchase timing & repurchase intervals

o Purchase amount

This framework highlights the various aspects that contribute to consumer decision-
making, showing the complexity of the process and how different factors interact.

Advertising is influencing
Society and also society is
influencing advertising
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Situational Influences on Consumer Behavior

Situational influences refer to factors that impact consumer behavior at a specific
moment based on the current situation. These include:

1. Physical Features 2. Social Features

The environment, geographical o The influence of who is
location, and external conditions. present during the
shopping experience.
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Example: A food truck festival on o Purchasing behavior

a shopping street can impact changes based on whether
purchasing decisions. someone is with:
Weather effects: ‒ Family members
‒ Friends
Hot weather → Consumers ‒ A partner
may buy cold drinks, ice • Interaction with other shoppers
cream, or seek air- or service providers at the
conditioned stores. location may also play a role.
Cold weather → Consumers
may opt for hot beverages
like coffee or cocoa.

3. Time 4. Task Features

• The time of day affects ‒ The nature of the shopping task
purchasing behavior. affects behavior.
‒ Example:
• Example: Grocery shopping at ‒ Research-heavy purchases (e.g.,
different times: electronics) require more
‒ Morning (8 AM) → More likely to information and time.
buy only essential items. ‒ Routine purchases (e.g.,
‒ Evening (7 PM, before dinner) groceries) may be quicker and
→ Likely to buy more due to more habitual.
hunger.