1. Consumer behaviour

2. Consumer buying-decision making
Figure 3.1

3. Problem recognition
Consumers can identify or recognise a problem independently from the marketer and look for a solution.
Marketers can use the marketing mix to bring a problem to consumers’ attention.
Problem recognition requires the willingness and the ability to fulfil the emerging need.

4. Questions consumers seek to answer by their information search
What kind of purchase will solve the problem?
Where and how can the purchase be obtained?
What information is needed to arrive at a decision?
Where can that information be obtained?
What are the pressures of gaining this information?

5. Types of information searches
Ongoing search - browsing and storing information for future reference.
Purposeful search - having a specific objective in mind.
Bloch et al (1986)

6. Information evaluation
Consumers construct a list of performance criteria, then assess each supplier or available brand against it.
This reduces the potential options (wide list of potential products/services which might satisfy needs) to an evoked set (a shortlist for serious appraisal).
Marketers influence this stage via communications campaigns which implant images of products/services or emphasise the importance of product/service attributes in consumers’ minds.

7. Consumer market beliefs
Products and brands.
The retail outlet.
Price.
Promotion.
Packaging.

8. Products and brands
Table 3.1
Source: Adapted from Duncan (1990).

9. Retail outlet
Table 3.1 cont.
Source: Adapted from Duncan (1990).

10. Price
Table 3.1 cont.
Source: Adapted from Duncan (1990).

11. Promotion
Table 3.1 cont.
Source: Adapted from Duncan (1990).

12. Packaging
Table 3.1 cont.
Source: Adapted from Duncan (1990).

13. Making a decision
Consumers construct a list of performance criteria, then assess each supplier or available brand against it.
This reduces the potential options (wide list of potential products/services which might satisfy needs) to an evoked set (a shortlist for serious appraisal).
Negotiations may take place to finalise purchase details, e.g. cash or credit payment terms, trade in discounts, delivery dates, etc.
Marketers influence this stage via communications campaigns which implant images of products/services or emphasise the importance of product/service attributes in consumers’ minds.

14. Post-purchase evaluation
Has the purchase lived up to its expectations?
Marketers can help reduce cognitive dissonance by:
Ensuring that customers’ needs and wants have been carefully researched.
Tailoring the marketing mix to suit the audience.
Painting a realistic picture of the product/service in all advertising literature.
Making sure consumers’ expectations are rooted in reality - for example letting the consumer test the product/service before purchase.
Good after sales care.

15. Impact of dissatisfied customers
Dissatisfied customers can tell up to eleven other people about their bad experiences, which is two to three times more people than a satisfied customer will talk to.
Smith, 1993

16. Routine problem solving buying situations
These tend to be:
Routine day to day purchases/services.
Low risk purchases.
Low priced.
Frequently purchased goods/services.
Where loyalty to favourite brands is often shown (favourite breakfast cereal, etc.).

17. Routine problem solving model
Three stage model suggested by Ehrenberg and Goodhart (1980)
Stage 1 - Awareness of the brand or product.
Stage 2 - Trial the brand or product.
Stage 3 - Repeat purchase.
Over time the repeat purchase becomes habitual.

18. Limited problem solving buying situations
These tend to be:
Buying situations that occur less frequently, e.g. a holiday, new TV, etc.
Situations that involve more deliberate decision making than more routine buying problems.
Purchases that are moderately expensive.
Purchases that will be expected to last a long time.
Purchases that are perceived to have a greater risk.
Purchases where some form of information search and evaluation takes place.

19. Extended problem solving buying situations
These represent a more serious investment of money, time and effort, e.g. new car or home.
These purchasing situations occur infrequently.
Involves gathering as much information and analysis as possible.

20. Environmental influences on consumers’ buying behaviour
Socio-cultural - e.g. the need for individuals to conform with norms of social groups, etc.
Technological - e.g. technological innovation allowing cheaper production of products, database technology allowing companies to create personal relationships with their customers.
Economic and competitive influences - e.g. during a recession consumers may be more reticent about purchasing more expensive items.
Political and regulatory - e.g. the backing of a regulatory body can provide reassurance to consumers.

21. Psychological influences on consumers’ buying behaviour
Personality.
Perception.
Learning.
Motivation.
Attitudes.

22. Maslow’s hierarchy of needs
Figure 3.3

23. Influences on culture
Figure 3.4

24. Reference groups
Membership groups.
Aspirant groups.
Dissociative groups.
Family.

25. The family as a decision-making unit
Figure 3.6