MODULE 3

CONSU MER BEHAVIOR

• Need to understand consumer behavior
• Influence consumer behavior in favor of your
brand (not merely purchase)
• “Process and activities that people engage in
when searching for, selecting, purchasing,
using, evaluating and disposing of products
and services”
• Decision making process: Various stages that
customers pass through while buying a product
 PROBLEM RECOGNITION

• Difference between actual state and ideal /

desired state
• Perceives needs and becomes motivated to act
• Out of stock; Dissatisfaction; New needs;
Related products; Marketer-induced; New
products
 EXAMINING CONSUMER MOTIVATIONS

• Factors that compel a consumer to take an

action
• Maslow’s Hierarchy of Needs
• Psychoanalytic Theory
• Motivational research
INFORMATION SEARCH

• Internal search and External search

• Sources of external search
• Extent of search depends on several factors
 PERCEPTION
• Process by which consumers selects, organizes and interprets information
to form meaningful picture
• Sensation: Immediate, direct response of senses to the stimulus
THREE PERCEPTUAL PROCESSES ==
• Selective exposure;
Selective attention – marketer have to work hard to attract the customers’
notice, need to explain which stimuli will people notice
Selective retention – people forget much that they learn but will tend to
retain information that supports their attitudes & beliefs = that’s why use
drama & repetition in sending messages
Selective distortion – twisting the information into personal meanings &
interprets the information in a way that will fit our preconceptions.
• Depends on Individual, Stimulus and Situation
 ALTERNATIVE EVALUATION

• Awareness set; Evoked set; Consideration set

• Evaluative criteria
• Consequences: Functional and Psychosocial
• Attributes vs Consequences
 ATTITUDES

• Learned predispositions to act in a consistently

favorable or unfavorable manner towards an object
• Attitudes related to behavior
• Multi-attribute attitude model
• Salient beliefs
• Changing attitudes: Adding attributes; Changing the
importance of attributes; Changing beliefs about
brands; Changing beliefs about competing brands
 INTEGRATION PROCESSES AND
DECISION RULES

• Combination of information related to

brands
• Decision rules/ Strategies
• Heuristics
 PURCHASE DECISION
• Purchase intention
• Brand loyalty

POSTPURCHASE EVALUATION
• Satisfaction and Dissatisfaction
• Cognitive Dissonance
 VARIATIONS IN THE DM PROCESS

• Not all steps always exist

• Extended / Limited / Routine Problem
Solving Behaviors
 CONSUMER LEARNING PROCESS

• Process by which individuals acquire the purchase

and consumption knowledge and experience they
apply to future related behaviors
• Involvement
• Behavior learning theories: S—R theories
Roles of external environmental stimuli in causing
behavior
Classical conditioning; Operant Conditioning
• Cognitive Learning theory
 ENVIRONMENTAL INFLUENCES ON
CB

• Culture
• Subculture
• Social class
• Reference groups
• Family