1. Lesson 4:
Behavioral
Dimensions of the
Consumer Market

2. Objectives When you finish this chapter, you should
1. Understand the economic-buyer model of buyer behavior.
2. Understand how psychological variables affect an individual’s buying behavior.
3. Understand how social influences affect an individual’s and household’s buying behavior.
4. See why the purchase situation has an effect on consumer behavior.
5. Know how consumers use problem-solving processes.
6. Have some feel for how a consumer handles all the behavioral variables and incoming stimuli.
7. Understand the important new terms.
6-2

3. A Model of Buyer Behavior
This slide relates to the material on pp
Instructor’s Note: This slide corresponds to Exhibit 6-1 on p. 156 and Transparency 46. See also Transparency 45 and Overheads
Purchase Reason
Time
Surroundings
Purchase
Situation
Motivation
Perception
Learning
Attitude
Personality/Lifestyle
Psychological
Variables
Family
Social Class
Reference Groups
Culture
Social
Influence
Problem-Solving Process
Person Does or Does Not Purchase (Response)
Marketing Mixes
All Other Stimuli
Person
Making
Decision
Summary Overview
Several behavioral sciences contribute to the marketer’s understanding of why consumers behave as they do. The basic model of consumer behavior shown on the slide integrates many of these influences.
Teaching Tip: Economics and psychology are often cited as sources for marketers but marketing also derives a great deal of knowledge about consumer behavior from sociology, anthropology, and communication theory.
Economic Models of Consumer Behavior
Needs. Economists often assume that consumers are people who know all the facts and logically compare choices in terms of cost and value received to get the greatest satisfaction for their time and money.
Economic Needs. Economic needs are concerned with making the best use of a consumer’s time and money-- from the consumer’s point of view.
Although useful, this view is probably too simplistic to cover all consumer behavior. Consequently, marketers try to identify sets of factors affecting the choices consumers make. These include psychological variables, social influences, events in the purchase situation.
Understanding Motivation
Needs. Needs are the basic forces that motivate a person to do something
Wants. Wants are learned needs, that is, they are needs expressed as a desire for a particular need-satisfier: I need food; I want a hamburger.
Drive. A drive is a strong internal stimulus that encourages action to reduce a need. When a drive is strong enough, it compels a person to seek satisfaction for a need and often in the form of a preferred want.
Exhibit 6-1
6-3

4. The PSSP Hierarchy of Needs
This slide relates to the material on pp
Instructor’s Note: This slide corresponds to Exhibit 6-3 on p. 158 and Transparency 47. See also Overhead 59.
Physiological Needs
Safety Needs
Social Needs
Personal
Needs
Summary Overview
Many different levels of needs can appeal to or motivate a person. The PSSP pyramid on the slide helps apply motivation theory to the particular needs of consumers and marketing managers trying to develop marketing mixes to meet those needs.
PSSP Hierarchy of Needs
Thinking of needs as being linked to one of these four levels helps explain why some marketing mix variations work in one context and not in another. But other influences also come into play which is why marketers don’t rely solely on motivation theory for understanding and responding to consumer behavior.
Physiological Needs. Physiological needs are the most basic needs people experience. These include biological needs for food, drink, rest, and sex.
Safety Needs. Safety needs come into play next. These are concerned with protection and physical well-being.
Social Needs. Social needs are concerned with love, friendship, social status and esteem. These are derived from a person’s interactions with others.
Personal Needs. Personal needs are concerned with an individual’s need for personal satisfaction, unrelated to what others do. They include self-esteem, fun, and freedom.
6-4

5. The Learning Process Drive Cues Response Reinforcement
This slide relates to the material on pp
Instructor’s Note: This slide corresponds to Exhibit 6-4 on p. 160 and Transparency 49. See also Transparency 48.
Drive
Cues
Response
Reinforcement
Summary Overview
Learning is a complex interaction of experience and cultural expectations based upon attitudes, beliefs, and actions.
The Learning Process
Perception. Perception refers to how we gather and interpret information from the world around us. Because we do not process or even attend to all incoming sensory stimuli equally, marketers are very much interested in the selective processes we use to handle incoming marketing mix stimuli:
Selective Exposure. We seek out and notice only information that interests us.
Selective Perception. We screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.
Selective Retention. If all of this weren’t enough, we remember only what we want to remember.
Learning. Learning is a change in a person’s thought processes caused by prior experience. Key concepts of the learning process include:
Cues. These are stimuli in the environment that trigger a drive or response.
Response. This is an effort to satisfy a drive.
Reinforcement. This occurs when the response is followed by satisfaction, which reduces the drive.
Cultural Influences. Learning does not take place in a vacuum. A person’s culture plays a large role in making some wants more available than others:
Attitude. This is a person’s point of view toward something.
Belief. This is a person’s opinion about something.
Expectation. This is an outcome or event that a person anticipates or looks forward to.
6-5

6. ??????? Lifestyle Dimensions Activities Interests Opinions
This slide relates to the material on pp See also Overhead 60 and Transparency 50.
Opinions
Interests
Activities
???????
Summary Overview
Psychographics or lifestyle analysis examines a person’s day-to-day pattern of living as expressed in AIO statements (Activities, Interests, and Opinions). When this information is linked to demographic information, marketers have the basis for very accurate segmentation of markets for some products.
Lifestyle Dimensions
Activities. Activities identify what people do. Activities are an important variable because behavior is objectively observable.
Interests. People also have interests. Stronger interests tend to create stronger drives that may pinpoint market opportunities.
Opinions. How people feel about things also affects their relative motivation to take action. By combining these opinions with interests and activities, marketers can develop a robust view of some target market segments.
Discussion Note: While lifestyles can be very useful for some types of products, it is important to remind students, as the text points out, that lifestyle segmentation may not match true target markets for all products.
6-6

7. Social Class Dimensions
This slide relates to the material on pp
Instructor’s Note: This slide corresponds to Exhibit 6-6 on p. 166 and Overhead 62. See also Overheads 61 and 63.
1.5%
32%
12.5%
38%
16%
Lower-middle class
Upper-middle class
Upper-class
Lower-lower class
Upper-lower
(“working”) class
Summary Overview
Perceived and actual social standing have powerful influences on consumers. It is important to remember when considering the influences below that who is chosen or appointed to fill each social influence role is largely determined by the social class to which the consumer belongs.
Social Influences
Social Class. A social class is a group of people who have approximately equal social position as viewed by others in the society.
Reference Group. A reference group consists of the people to whom an individual looks when forming attitudes about a particular topic.
Opinion Leader. An opinion leader is a person who influences others.
Culture. Underpinning all social influences is the culture of a society -- the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous people.
Exhibit 6-6
6-7

8. Reference groups/opinion leader
This slide relates to the material on pp
Instructor’s Note: This slide corresponds to Exhibit 6-6 on p. 166 and Overhead 62. See also Overheads 61 and 63.
REFERENCE GROUP – PEOPLE TO WHOM AN INDIVIDUAL LOOKS WHEN FORMING ATTITUDES ABOUT A PARTICULAR TOPIC
OPINION LEADER – A PERSON WHO INFLUENCES OTHERS (EACH SOCIAL CLASS AND AGE GROUP TENDS TO HAVE ITS OWN OPINION LEADER)
CULTURE – BELIEFS , ATTITUDES AND WAYS OF DOING THINGS
Summary Overview
Perceived and actual social standing have powerful influences on consumers. It is important to remember when considering the influences below that who is chosen or appointed to fill each social influence role is largely determined by the social class to which the consumer belongs.
Social Influences
Social Class. A social class is a group of people who have approximately equal social position as viewed by others in the society.
Reference Group. A reference group consists of the people to whom an individual looks when forming attitudes about a particular topic.
Opinion Leader. An opinion leader is a person who influences others.
Culture. Underpinning all social influences is the culture of a society -- the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous people.
Exhibit 6-6
6-7

9. Family as a Purchasing Unit
This slide relates to the material on pp
Summary Overview
The particular situation a consumer is in during or around the time of purchase can also have significant effects on the actual purchase.
Purchase Situation Influences
Purchase Reason. Why a consumer makes a purchase can affect buying behavior. In gift giving behavior in particular, the reason behind the purchase is significant.
Time. The time available for the purchase is also important. A leisure dinner induces different behavior than grabbing a quick cup of 7-Eleven coffee on the way to work.
Surroundings. The physical surroundings and the emotional responses they elicit or encourage can also affect the purchase.
Instructor’s Note: Ask students if they’ve ever been in a store known for its sophisticated use of surroundings to enhance sales such as Nike Town, The Disney Store, or Victoria Secrets. All these retailers make manipulation of the surroundings (“atmospherics”) a key part of their overall marketing strategy.
Úplné rodiny = mother-and-father families
Neúplné rodiny = single parent families
Nerodinné domácnosti = unmarried couples
Domácnosti jednotlivců = singles
6-8

10. The Consumer Problem Solving Process
This slide relates to the material on pp
Instructor’s Note: This slide corresponds to Exhibit 6-7 on p. 170 and Transparency 51.
Purchase Situation
Social Influences
Psychological Variables
Need-want Awareness
Information Search
Set Criteria
Decide on Solution
Purchase Product
Routinized Response
Postpone Decision
Postpurchase Evaluation
Response
Feedback of
information
as attitudes
Person making
decision
Marketing mixes All other stimuli
Summary Overview
It is often useful to view consumer behavior in terms of specific characteristics of the purchase situation. This can include marketing stimuli and other variables present in the retail environment. It can also include seeing the purchase itself as the culmination of a series of steps that solves a problem for the consumer.
Consumer Problem-Solving
1. Awareness. Here consumers are attentive to a need or problem and interested in ways to satisfy the need.
2. Gathering Information. Here consumers search internal (memory, personal) sources and may investigate external sources (friends, articles, demonstrations) for more information about the problem and/or the kinds of solutions available.
3. Evaluating Alternatives. Here consumers decide which different product choices might be capable of solving their problem.
4. Choosing a Solution. Here consumers select one ("the best") of the alternatives.
5. Evaluating the Decision. During this stage the consumer assesses the outcome of his or her decision.
Exhibit 6-7
6-9

11. Types of Buying Decisions
This CTR corresponds to Figure 6-8 on p. 203 and relates to the material on pp
Types of Buying Decisions
Expensive
Risky
Infrequent
Self-Expressive
Low cost
Low risk
Frequent
Complex
Buying
Behaviour
Dissonance-
Reducing Buying
Variety-
Seeking
Habitual
High
Involvement
Significant
differences
between
brands
Few
Low
Types of Buying Decision Behaviour
Complex Buying Behaviour. Consumers undertake this type of Behaviour when they are highly involved in a purchase and perceive differences among brands. Involvement increases with the product is expensive, infrequently purchased, risky, and highly self-expressive.
Dissonance-Reducing Buying Behaviour. Consumers engage in this Behaviour when they are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. Without objective differentiation to confirm the purchase, buyers often seek support to reduce postpurchase dissonance -- the feeling they may have made the wrong decision.
Habitual Buying Behaviour. This Behaviour occurs under conditions of low consumer involvement and little significant brand differences. Consumers do not search extensively for information about brands. Brand familiarity aids in promoting products under essentially passive learning conditions.
Variety-Seeking Buying Behaviour. Consumers may seek variety when involvement is low and there are significant perceived differences among brands. Differences may be product features -- new taste, improvements, extra ingredients -- or promotional benefits such as coupons, rebates, and price reductions.

12. The Adoption Process Awareness Interest Evaluation Trial Decision
This slide relates to the material on pp
Awareness
Interest
Evaluation
Trial
Decision
Confirmation
Summary Overview
For many extensive problem-solving situations, consumers may pass through a series of steps used to investigate and evaluate, and ultimately accept or reject, an idea or product as a solution to their problem. This process is referred to as the adoption process.
The Adoption Process
1. Awareness. Here the potential customer first learns about the existence of a product but may lack more details.
2. Interest. If this step is reached, the consumer will gather general information and facts about the product.
Teaching Tip: You might link the “if” to the selective processes discussed earlier under perception.
3. Evaluation. Here the consumer gives the product a mental trial, applying it to his or her own personal situation.
4. Trial. Here the consumer may buy the product to experiment with it in use.
5. Decision. Here the consumer decides on either adoption and continued use or rejection of the product from further consideration.
6. Confirmation. Here the adopter continues to rethink the decision and searches for further support that it was correct.
Dissonance may set in after the decision. The buyer may have chosen from among several attractive alternatives--weighing the pros and cons and finally making a decision. Later doubts, however, may lead to dissonance--tension caused by uncertainty about the rightness of a decision.
6-11

13. Relating the Processes
Instructor’s Note: This slide corresponds to Exhibit 6-10 on p. 174 and Overhead 65.
Problem-solving steps
1. Becoming aware of or interested in the problem
2. Gathering information about possible solutions
3. Evaluating alterative solutions
4. Deciding on the appropriate solution
5. Evaluating the decision
Adoption process steps
Awareness and interest
Interest and evaluation
Evaluation, maybe trial
Decision
Confirmation
Learning steps
Drive
Cues
Response
Reinforcement
Summary Overview
It is important to see the interrelation of the problem-solving process, the adoption process, and learning. Knowing how target markets handle these processes helps companies with their marketing strategy planning.
6-12

14. Adoption of Innovations
This CTR corresponds to Figure 6-10 on p. 210 and relates to the material on pp
Adoption of Innovations
Percentage of Adopters
Time of Adoption
Early
Late
Innovators
Adopters
Early Majority
2.5%
13.5%
34%
16%
Laggards
Late Majority
Individual Differences in
Innovativeness
Innovators. Innovators include the first 2.5% of buyers who adopt a new product idea. Innovators help get the product exposure but are not often perceived by the majority of potential buyers as typical consumers. Innovators like risk taking and enjoy buying new products. Innovators may purchase at skimming prices.
Discussion Note: You might discuss the ethical implications of skimming. Is it fair? Also, are there cost considerations associated with new product development that make skimming to recover high start up costs more ethical than it may seem?
Early Adopters. Early Adopters comprise about 13.5% of the buyers who adopt new products. This group serves as opinion leaders to the rest of the market and their product usage outcomes serve as motivation to later buyers to get the product.
Early Majority. Early Majority are some 34% of buyers adopting the product. They are deliberate consumers who adopt new ideas before the average person but seldom lead the market.
Late Majority. Late Majority comprise another 34% of buyers adopting the product. This group is skeptical of new products and only buys after the majority of the market has tried it.
Laggards. Laggards are the final 16% of adopters and are tradition-bound. They are suspicious of change and only adopt innovation that have already become something of a tradition.

15. Behavioural Influencers
Factors influencing Consumer Behaviour
This CTR corresponds to Figure 6-2
on p. 184 and to the material on pp
Social
Household type
Reference groups
Roles & status
Personal
Age & lifecycle stage
Occupation
Education
Economic situation
Psychological
Motivation
Perception
Learning (memory)
Beliefs & attitudes
Personality &
self-concept
Consumer
BUYER DECISION
PROCESS
Lifestyle
Buyers’ responses
Product service &
category selection
Brand selection
Reseller selection
Purchase timing &
repurchase intervals
Purchase amount
Marketing programs
Marketing objectives
Marketing strategy
Marketing mix
Experiences
Influences on Consumers
Psychological. Maslow's hierarchy reminds marketers that need states vary in their intensity or motivation. Perception is the process of organizing stimuli and is influenced by selective exposure, distortion, & retention. Learning occurs in response to the presentation of information linked to relevant drives, cues, responses, and reinforcement only some of which is under the control of the marketer. Beliefs and attitudes, though shaped by cultural and social forces, may vary considerably on the individual level.
Personal. Major personal factors are age and life cycle stage, occupation, economic situation, life style and personality/self-concept. Texts vary in their treatment of the PLC stages but it is clear that singles buy different products than do young marrieds with small children. Occupations differ in time constraints and social pressures to conform that affect consumption decisions. Lifestyles measured by AIO or VALS typologies can reveal different consumption patterns across otherwise dissimilar groups. The unique characteristics of each person that make up their personality also affect Behaviour.
Cultural. Culture is the most basic influence on a person's values, priorities, and beliefs. Cultural shifts make marketing opportunities although most such changes are in secondary rather than core cultural values. Subcultures are important markets as these groups are often significantly different in their needs to warrant different marketing approaches.
Social. Social class is determined by a combination of income, occupation, education, wealth and other variables. Social factors within one's class that affect consumer Behaviour include reference groups & aspirational groups. Families also exert strong social influences. Finally, each relationship a person has with his or her group carries with it certain roles and status that may carry consumptive responsibilities.
Cultural
Culture
Subculture
Social Class
Environmental influences
Economic
Technological
Political