lectures 7-consumer behaviour
TRANSCRIPT
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CONSUMER BEHAVIOUR
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Consumers are not alike.
They vary in age, income, educational
qualifications and spending patterns.
Consumers are constantly involved in decision
making whether the products they purchased
are:
-Consumed slowly over time (such as a house or
a car which involve a complicated decision
process) or
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-Consumed quickly (such as food which may be
a relatively simple and routine decision-making
process).
HOW DO BUYERS MAKE THEIR BUYING
DECISIONS?
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Consumers do not make decisions in a
vacuum.
Rather, they are influenced by at least four
major factors
1. Psychological factors (e.g. Motivation-
which is an internal force that directs people to
act in a particular way or to satisfy a particularneed)
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2. Sociological/socio-cultural factors(e.g. Culture, family, social class,
reference groups)
3. Marketing mix factors (i.e. Price,promotion, distribution and product).
4. Situational factors (e.g. social
surroundings, physical surroundings,
temporal effects, antecedent states)
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Social surroundings refer to the social
environment in which the decision is takingplace. For example the people present at the time
might influence the decision.
Physical surroundings (e.g. having appropriate
music played in the store, prominent sales
posters, cleanliness of the store might influence
the decision)
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Temporal effects refer to aspects such as time of
the day, time of the year (for instance,
Christmas).
Antecedentrefers to aspects such as ones mood
or the amount or lack of cash on hand that can
influence choice.
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THE CONSUMER DECISON PROCESS
The buyer goes through the following decision
making stages.
Stage 1: Need Recognition
Stage 2: Search for InformationStage 3: Pre-Purchase Evaluation of Information
Stage 4: Purchase
Stage 5: Post Purchase Feelings
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The marketers job is to understand the buyers
behaviour and influences at each stage of thebuying process.
1STSTAGE: RECOGNITION OF NEEDThe first stage in the buying process is when the
buyer recognizes that he or she has a need.
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Major psychological factors that can influence
consumers recognition of needs are:
(i) Motivation (an internal force that directs peopleto act in a particular way or to satisfy a particular
need)
A person obviously has many needs that vary in
importance under different circumstances.
Therefore, the objectives of consumers are to satisfy
a hierarchy of needs.
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For example, Maslows Hierarchy of Needs
proposed that people have the following five hierarchy
of needs:Physiological (e.g. food, shelter, clothing etc)
Safety(e.g. insurance policy, fire extinguishers)
Belongingness and Love (e.g. Clubs, family)Self Esteem (e.g. status, education)
Self Actualization ( reaching ones full potential in life
e.g. in Art class, education, music, politics, religion)
(For a diagram see Exhibit 5-5 of Arens, Weigold and
Arens (2009) page 155)
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According to Maslow the first basic need (i.e.
Physiological need) dominates a persons
behaviour until it is satisfied; then the second needbecomes pre-potent until it is satisfied; and so on.
Although Maslow is not a perfect framework, it
provides marketers with a useful system for
identifying the possible needs that a consumer
might be seeking to satisfy.
It also explains why these needs change from time
to time.
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(ii) Attitude is another psychological factor that
can influence consumer decision.(NOTE: Attitude is a learned pre-disposition to
respond in a consistently favourable or
unfavourable manner with respect to a givenobject).
The object could be a product, brand, salesperson,
or retail store.
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Many consumer needs arise from internally
generated desires for food, shelter and clothing.
The need may also result from the breakdown of
the old product or from a constant need for
repairs.
Social interactions with friends or associates can
often lead to buyer interest in new products.
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Promotion-mix (i.e. advertising, personal selling,
sales promotion and publicity) can make peopleaware of unfilled wants or needs.
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In general, the stage of problem recognition can be
influenced by:
Psychological factors (e.g. motivation and
attitude),
Sociological/socio-cultural factors (e.g. Culture,
family, social class, reference groups)
Marketing mix factors (i.e. Price, promotion,
distribution and product).
Situational factors (e.g. social surroundings,
physical surroundings, temporal effects, antecedent
states)
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To influence this need recognition stage companies
can advertise to the following four broad of
markets (depending on the target markets theywish to reach):
1.Consumer markets (i.e. people who buy goodsand services for their own use);
2. Business markets (i.e. Organizations that buygoods and services to use or to resell).
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Within the business markets we have:
(i) Reseller markets (those companies that buy to
resell) and
(ii) industrial markets (those manufacturing
companies that buy products to be used to produce
other goods and services).3.Government markets (e.g. Federal, state
government etc).
4. Global markets or Transnational markets (i.e.markets in foreign countries),
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2ND STAGE: INFORMATION SEARCH
When the individual recognizes his (or her needs),he then enters into a state of information search for
alternative ways of filling the need.
The information search stage is important because
this is where marketing can help the buyer gather
necessary data by:
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-Training the sales people so that they will have the
right information to answer customers questions.
Such questions include:Can the old product be repaired?
If a new product is needed, what brands are
available?
What features are offered by different models? etc.
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Marketers at this stage of information search
should:
Have tags and brochures that informs buyersabout merchandise
Design the point-of-purchase displays, news
paper ads, television ads and radio commercialsthat give consumers information on:
-Prices
- Product availability
-Product desirable features
- Various payment methods etc.
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3RD STAGE: EVALUATION OF
ALTERNATIVESThis is where the buyer weighs the advantages and
disadvantages of the various alternatives and
eventually makes a decision.
Because this stage is a mental process, it is hard to
observe and consequently, is more difficult formarketing people to influence.
H k h ld b i i d h
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However, marketers should bear in mind that:
(i) Consumers view a product as a multi-attribute
objects, that is, as a bundle of attributes.
(ii) Consumers have been found to apply various
evaluation procedures to make a choice among
multi-attribute objects. The criteria that consumers
use in their evaluations include:
-Price
-Past experience
-Opinion of members of their families and other
reference groups.
-Attitudes towards various brands, etc
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4TH STAGE: PURCHASE
Once the customer has decided to buy, then the
seller has to complete the purchase transaction.
The job of the marketer at this stage includes:
-making the product conveniently available so that
the customers do not have to travel great distances
or wait in lines for it;
-the marketers should simplify the credit
arrangements including packaging and delivery.
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5TH STAGE: POST PURCHASE BEHAVIOUR
Typically, most buyers experience some postpurchase anxieties.
Leon Festinger refers to this state as Cognitive
dissonance.
Festinger theorises that people strive for internal
harmony, consistency or congruity among theircognitions (knowledge, attitudes, beliefs, values).
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Post-purchase cognitive dissonance occurs because
each of the alternatives considered by the consumers
usually has both advantages and limitations.
Therefore, when the purchase decision is finally
made, the selected alternatives have somedrawbacks.
At this stage, the marketer needs to have advertisingor personal selling that will reassure buyers.
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By stressing desirable features of a product through
promotion, it will reduce dissonance.
Finally, the way consumers are treated on returns,
repairs, warranty service etc, will influence the
decision process for subsequent purchases.
NOTE: This lecture is based on your text book andon Philip Kotler et. al; and W. Stanton marketing
books.