CONSUMER BEHAVIOURLecture 1

Level 300Title: Introduction to Consumer Behaviour.

Objectives • Understand how consumer cognitive (thinking)

processes and limitations, affect, beliefs, social influences, and other contextual factors influence consumer decision making, choices, and behaviour.

• Appreciate how these insights can be used to design and implement effective marketing strategies.

• Appreciate individual and segment differences in process and outcome.

Psychology of Marketing

Perception. Decision making. Information search. Attitudes, beliefs, categorization. Consumer research methods, learning.

Defining consumer behaviour

Consumer Behaviour is the process Involved when individuals or groups select, use, or dispose of products, services, ideas or experiences in exchange to Satisfy Needs and desires.

The consumerWhy would consumers buy products and

services?• They identify a need that makes them

incomplete or insecure.• Consumers use products and services to

satisfy their needs.• They either need it to solve an immediate

problem or as a security.

Consumer behaviour

The behaviour• The display of consumer behaviour can be

categorized into three.

• Pre-purchase behaviour• Purchasing behaviour • Post-purchase behaviour

The self concept

Actual self and ideal self

Actual self & ideal self

Issues for discussion• How does a consumer decides that he needs a

product?• What are the best sources of information to lean on

for alternative products?• Is acquiring a product stressful or a pleasant

experience?• Does the product provide pleasure or perform its

intended function?• What determines whether a consumer is satisfied with

a product or not?

Factors affecting decision

Consumer decision making process

Consumer decision making

Evoked setA narrowed down set of alternatives that the customer is considering to make the last selection and purchase.

Problem recognition

Consumer needs can be triggered by internal or external stimuli.

Needs become wants.Leads to behaviour.Triggers information search.

Information search

Sources of information:-Personal Sources-Internal Sources-External Sources

Time, effort and expense dedicated to information search.

Consumer problem recognition• Consumer problem: Discrepancy between ideal and

actual state--e.g., consumer:– Has insufficient hair– Is hungry– Has run out of fuel

• Problems can be solved in several ways--e.g., stress reduction - vacation, movie, hot bath, medication.

Information search

Sources of information:-Personal Sources-Internal Sources-External Sources

Time, effort and expenses dedicated to information search.

Evaluation of alternatives

• Consideration set• Analyze product attributes• Use cut off criteria [pros/cons]• Multi-attribute models

Purchase

• To buy or not to buy…• Marketing determines which attributes are

most important in influencing a consumers’ choice (differentiation…later)

Post purchasing behaviour

• Cognitive dissonance:– Did I make a good decision?– Did I buy the right one? Get a good value?

• Marketers minimize this through:– Effective communication– Follow up– Guarantees– Warranties

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