1. Consumer Behaviour Models
Chapter 3
Consumer Behaviour Models

2. Chapter 3 : Consumer Behaviour Models
Chapter Objectives
To understand the role consumer behaviour plays in the development and implementation of advertising and promotion programs.
To understand the consumer decision-making process and how it varies for different types of purchase.
Chapter 3 : Consumer Behaviour Models

3. Chapter 3 : Consumer Behaviour Models
Chapter Objectives
To understand various internal psychological processes, their influence on consumer decision making, and implication for advertising and promotion.
To recognize external factors such as culture, social class, group influences, and situational determinants and how they affect consumer behaviour.
Chapter 3 : Consumer Behaviour Models

4. Consumer Decision Making Process
Need Recognition
Information Search
Alternative Evaluation
Purchase Decision
Postpurchase Evaluation
Chapter 3 : Consumer Behaviour Models

5. Consumer Decision Process
Need Recognition
Information Search
Alternative Evaluation
Purchase Decision
Postpurchase Evaluation
Motivation
Perception
Attitude Formation
Integration
Learning
Decision Process Stages
Psychological Processes
Chapter 3 : Consumer Behaviour Models

6. Sources of Need Recognition
Out of stock.
Purchase decision is routine.
Resolved by choosing familiar brand.
Dissatisfaction.
Dissatisfied with current state of product/service. (I.E. Comfort/style).
Advertising is used to help consumers recognize need for new product.
Chapter 3 : Consumer Behaviour Models

7. Sources of Need Recognition
New needs or wants.
Created by life changes. (I.E. Graduation, employment status, financial situation).
Wants are desired but not essential.
Related product purchase.
Purchase of a new product will most likely trigger purchase of accessories. (I.E. New camera will require film).
Chapter 3 : Consumer Behaviour Models

8. Sources of Need Recognition
Marketer-induced recognition.
Marketers’ encourage discontentment with current state or situation.
Brand switching is encouraged by sales promotion.
New products.
Innovative products may stimulate a need.
Consumers may not see a need for what the marketer is selling.
Chapter 3 : Consumer Behaviour Models

9. Examining Consumer Motivations
Marketers recognize need recognition will influence the remainder of the decision process.
To better understand consumer’s reasoning marketer’s devote considerable attention to motives.
Motives - factors that compel a consumer to take a particular action.
Chapter 3 : Consumer Behaviour Models

10. Maslow’s Hierarchy of Needs
Self-actualization needs
(self-development, realization)
Esteem needs
(self-esteem, recognition, status)
Social needs
(sense of belonging, love)
Safety needs
(security, protection)
Physiological needs
(hunger, thirst)
Chapter 3 : Consumer Behaviour Models

11. Market Research Methods
In-depth interviews.
The consumer talks freely in an unstructured interview to obtain insights into his or her motives, ideas or opinions.
Projective techniques.
Methods allowing consumers to project values, motives, attitudes or needs on some external object.
Chapter 3 : Consumer Behaviour Models

12. Market Research Methods
Association tests.
Consumers respond with the first thing that comes to mind when presented with some verbal or pictorial stimulus.
Focus groups.
A group of consumers with similar backgrounds or interests discuss a product, idea or issue.
Chapter 3 : Consumer Behaviour Models

13. Chapter 3 : Consumer Behaviour Models
Information Search
Internal search
The scanning of information stored in memory regarding various purchase alternatives
External search
Engaged when internal search does not yield enough information (external sources of information are used.)
Chapter 3 : Consumer Behaviour Models

14. External Information Search
Personal sources
Friends, relatives, co-workers
Market-controlled sources
Ads, salespeople, displays
Public sources
Print articles, news reports
Personal experience
Handling, examining, testing, using
Chapter 3 : Consumer Behaviour Models

15. Chapter 3 : Consumer Behaviour Models
Perception
The process by which individuals receive, attends to, interprets and stores information to create a picture of the world.
Selective perception
Filtering process in which internal and external factors influence what is received and how it is processed.
Occurs in all 4 stages of perception process.
Chapter 3 : Consumer Behaviour Models

16. Stages in Perceptual Process
Stage 1: sensation.
Immediate direct response of the senses to a stimulus.
Selective exposure.
Consumers choose whether or not to make themselves available for information.
Chapter 3 : Consumer Behaviour Models

17. Stages in Perceptual Process
Stage 2: selecting the information.
Personality, needs, motives, expectations will affect information that is selected.
Selective attention.
Consumer focuses on certain stimuli while excluding others.
Chapter 3 : Consumer Behaviour Models

18. Stages in Perceptual Process
Stage 3: interpreting the information.
Organizing, categorizing, and interpreting the incoming information.
Selective comprehension.
Interpreting information based on their own attitudes, beliefs, motives and experiences.
Chapter 3 : Consumer Behaviour Models

19. Stages in Perceptual Process
Stage 4: retaining the information.
Storage of information into short-term and long-term memory.
Selective retention.
Consumers do not remember everything they see, hear, or read.
Chapter 3 : Consumer Behaviour Models

20. The Selective Perception Process
Selective Exposure
Selective Attention
Selective Comprehension
Selective Retention
Chapter 3 : Consumer Behaviour Models

21. Evaluation of Alternatives
All available brands
Brand A
Brand B
Brand C
Brand D
Brand E
Brand F
Brand G
Brand H
Brand I
Brand J
Brand K
Brand L
Brand M
Brand N
Brand O
Evoked Set of Brands
Brand B
Brand E
Brand I
Brand M
Brand F
Chapter 3 : Consumer Behaviour Models

22. Chapter 3 : Consumer Behaviour Models
Evaluative Criteria
Dimensions or attributes of a product or service used to compare alternatives.
(I.E) purchase of an automobile.
Objective criteria - price, warrantee, etc.
Subjective criteria - style, appearance, image.
Chapter 3 : Consumer Behaviour Models

23. Chapter 3 : Consumer Behaviour Models
Evaluative Criteria
Marketer’s view their product as a bundle of attributes
Consumer’s view the product as a set of consequences:
Functional consequences are concrete, tangible outcomes
Psychological consequences are abstract and subjective
Chapter 3 : Consumer Behaviour Models

24. Chapter 3 : Consumer Behaviour Models
Consumer Attitudes
Learned predispositions to respond toward an object—an individual’s overall feelings toward or evaluation of an object.
Summarize consumer’s evaluation of an object and represent positive or negative feelings and behaviours.
Chapter 3 : Consumer Behaviour Models

25. Chapter 3 : Consumer Behaviour Models
Consumer Attitudes
Consumers hold attitudes toward:
Individuals
Brands
Companies
Organizations
Product categories
Retailers
Advertisements
Media
Chapter 3 : Consumer Behaviour Models

26. Attitude Change Strategies
Increase or change the strength or belief rating of a brand on an important attribute
Change consumers’ perceptions of the importance or value of an attribute
Add a new attribute to the attitude formation process
Change perceptions of belief ratings for a competing brand
Chapter 3 : Consumer Behaviour Models

27. Chapter 3 : Consumer Behaviour Models
Purchase Decision
At some point consumer stops evaluating alternatives and makes purchase decision.
Consumer develops a purchase intention or predisposition to buy a certain brand.
Purchase decisions will be different depending on the complexity of the product.
Chapter 3 : Consumer Behaviour Models

28. Integration Processes
The way product knowledge, meanings and beliefs are combined to evaluate two or more alternatives.
Consumers make purchase selections by using formal integration strategies.
Process involves deliberate evaluation of the alternatives attribute by attribute.
Chapter 3 : Consumer Behaviour Models

29. Postpurchase Evaluation
After consumption the consumer assesses level of performance of the product or service.
Feedback acquired from actual use of a product influences the likelihood of future purchases.
Advertising is used to reinforce consumer decisions to purchase their brands.
Chapter 3 : Consumer Behaviour Models

30. Satisfaction/Dissatisfaction
A judgment consumers make with respect to the pleasurable level of consumption-related fulfillment.
Satisfaction occurs when expectations are either met or exceeded.
Dissatisfaction results when performance is below expectations.
Chapter 3 : Consumer Behaviour Models

31. Behavioral Learning Theory
Classical conditioning
Assumes that learning is an associative process with an already existing relationship between a stimulus and a response.
Operant conditioning
The individual must actively operate or act on some aspect of the environment for learning to occur.
Response is positive reinforcement (reward) or negative reinforcement (punishment)
Chapter 3 : Consumer Behaviour Models

32. Classical Conditioning Theory
Conditioned
stimulus
(Brita water
filtration pitcher)
Association develops through
contiguity and repetition
Unconditioned
(waterfall)
response
(freshness, purity)
Chapter 3 : Consumer Behaviour Models

33. Operant Conditioning Process
Behavior
(consumer uses
product or service)
Positive or negative
consequences occur
(reward or punishment)
Increase or decrease in
probability of repeat
behavior (purchase)
Chapter 3 : Consumer Behaviour Models

34. Environmental Influences on Consumers
Culture
Subculture
Social class
Reference
groups
Situations
Chapter 3 : Consumer Behaviour Models

35. Roles in Family Decision-Making Process
Initiator - initiates purchase decision.
Information provider - gathers information to be used in making decision.
Influencer - influences criteria used in selection process.
Chapter 3 : Consumer Behaviour Models

36. Roles in Family Decision-Making Process
Decision maker(s) - makes the purchase decision.
Purchasing agent - physically makes the purchase.
Consumer - user of the product.
Chapter 3 : Consumer Behaviour Models