understanding consumer behaviour
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Understanding Consumer Behaviour
elaboratemarketing.com
@letselaborate
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Human Motivation
Maslow’s Theory of Human Motivation (1943)
• Maslow believed people had a set of motivation systems from basic needs to self actualisation
• According to this theory, everyone needs to go through all of the needs to reach self-actualisation, from the bottom to the top of the pyramid
Maslow, 1943
Maslow’s theory of motivation
Motivation DefinitionProduct examples
PhysiologicalBiological & physiological needsAir, water, food, drink, shelter, sex, sleep, warmth
Water, food, house, bed
Functional/practical
Safety needsProtection from the elementsSecurity, stabilityFreedom from fear
Helmet, house & health insurance, internet security
Emotional/social/cultural
Love & belongingnessFriendship, intimacy, affectionLove from work, friends, family, romantic relations
Flowers, organ donorship, chocolates, cards, birthday presents
Self-esteem/luxuryEsteem needsAchievements, status, independence, self-respect from others
Car, lottery, marathon
Self actualisationRealising personal potentialSelf fulfilmentSeeking personal growth
University course, training
The Consumer Buying Process
Need/Problem recognition
Step one: Need and problem recognition. This arises when the consumer recognises that there is a need for an item
• Assortment depletion - when the stock of goods has been used up or worn out
• Assortment extension - when there’s the need to add some new items
Information Search
Step two: Information search. Once someone has become motivated to buy/need something they engage in two forms of information search:
1. Internal Search - remembering previous experiences and what they already know about the product/service
2. External Search - shopping around, reading literature, looking at advertisements and talking to friends
Identification and evaluation of alternativesStep three: identification and evaluation. After the information search the consumer will evaluate the alternatives they have open to them
The consumer will use cut offs - which are the minimum and maximum acceptance values for the product
Signals - price tags, brand names, price, etc
Purchase decision and post-purchase evaluationStep four: purchase. Next comes the actual purchase, where the consumer will pick an appropriate method of payment
Step five: post-purchase evaluation. Post-purchase evaluation involves the consumer deciding on whether the purchase has been a success or not (Blythe, 2013)
This involves comparing what the consumer was expecting to get and what they actually have
Post-purchase dissonance - where the product has not lives up to expectations
The consumer decision making process
Influences on the decision making unit
Reference Groups Personal Factors Psychological factors
Social Factors
Primary groups – people we most often seeSecondary groups – people we see occasionally
Situational factors – changes in circumstances e.g. pay rise
Perception – The way people build up a view of the world
Informational influence – the need to seek information from a group
Aspirational groups – groups we wish we belong
Demographic factors – individual characteristics
Motives – the internal force that encourages someone towards a particular course of action
Normative compliance – pressure exerted on someone
Dissociative groups – group an individual does not want to belong to
Level of involvement – the degree of importance or that emotional attachment
Attitude – cognition (conscious), affect (emotional attachment) and contagion (planned course of action)
Value -expressive influence – need to physiologically associate with a particular group
Automatic groups – belong to by virtue e.g. age
Formal/informal groups – membership based on friendship
Influences on the decision making process
Cultural - subcultures, ethnicity, country and origin
Social - social groups, family, virtual groups,
Personal influences - personal values & ethics
People and personalities who influence decisions
The decision making unit
The decision making unit is a group of people who participate in or influence the purchase decision at any stage in the buying process (CIM, 2012)
This may involve a number or roles:
• Gatekeepers - controls the flow of information to the decision makers. Barrier to sales people
• Influencers - Individuals who ‘have the ear’ of the decision makers
• Users - who will actually use the product
• Deciders - who will make the actual decision, usually the hardest to influence
• Buyers - who will actually buy the product
B2B vs B2C buyer behaviour
B2B B2CExpertsProfessional buyers• Well trained, rational decisions
Non-professional buyersKnowledge gap• No formal training, emotional
Large quantities• Higher risk - more money
• Smaller quantities
• Sales people are important • Sales people less important
• Group/multiple people in decision making process
• Single decision maker
Summary• Maslow’s Theory of Human Motivation (1943) determines the set of motivation
systems a consumer goes through
• There are 5 key steps in the consumer decision making process
1. Need/problem recognition2. Information search3. Identification and evaluation of options and alternatives4. Purchase decision5. Post-purchase evaluation
• When making the decision to buy a product/service personal, physiological and social factors play a key part. Reference groups can also have an impact on the decision.
• The decision making unit consist of; gatekeepers, influencers, users, deciders and buyers. When marketing your product or service it is important to know which one of these you need to target.
@letselaboratewww.elaboratemarketing.comrachel@elaboratemarketing.com
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