What is consumer behaviour? Consumer behaviour is influenced by two major factors:1. External to consumer – cultural and social2. Internal to the consumer – Psychological and personal** Having a clear understanding of the factors at workinfluencing consumer behaviour can assist businesses in theirmarketing management.
External Consumer influences social class and culture – set of beliefs, customs Where a person is raised, who is involved in their upbringing and the culture that surrounds their experiences Social class structures
Internal Consumer Influences Psychological factor – motivation, perception, learning, beliefs and attitudes_Plays a role in defining why consumers behave in certainways Consumers may be motivated on an immediate need; food, money clothing etc. or they may be motivated on a want (car, boat, bigger house) Whatever the motivation marketers can use this opportunity to meet the need or want.
Buying Decisions Research has shown that consumers will demonstrate one of four behaviours when they are involved in a purchasing decision.1. Complex buying behaviour2. Dissonance reducing behaviour3. Habitual buying behaviour4. Variety seeking behaviour
Complex buying behaviour a lot of information is gathered Decision has high financial risk Buyer heavily involved in decision making process Alternatives are thoroughly investigatedExamples of this behaviour include: buying a car, house,technology
Dissonance Reducing behaviour when consumers are looking to purchase an expensive yet infrequent purchase where there is little perceived difference between brands Buyers highly involved in decision making process Being fully informed before making a final choiceExamples: Purchase of an engagement ring, typically it is aonce off buy and is expensive and there is relatively littledifference between diamond suppliers.
Habitual Buying Behaviour Can be seen when a consumer engages in a regular purchase such as a newspaper or coffee. These purchases are routine, tradition based Consumers do not need to engage heavily with the decision on a regular basis
Variety Seeking Behaviour when a consumer likes an alternative between various choices to experiment with products or services on the market. Customers will shop around to source the various options available Often enjoy trying the different products and services sampledExample: looking for food available in a food court or scour thesupermarket shelves for the snack options.
Stages of the Buying DecisionProcess Five stages of interaction by consumer when purchasing:1. Need recognition2. Information search3. Evaluation of alternatives4. Purchase decision5. Post purchase behaviour
Need recognition Consumer wants a need or want to be satisfied Type of need depends on the extent the of effort the individual will go to in order to resolve the need.
Information Search information by prior knowledge or seeking vigorous search for info. Maybe through friends, family, professional services and other public info.
Evaluation of Information Evaluate information gathered Forms an important pre purchase stage; pros and cons of each alternative are weighed and considered Consumer will have their own criteria for the purchase and it is against this criteria that each alternative will be regarded
Purchase decision Choice is made Maybe be result of elimination and best possible alternative considered Time pressures, money, other external influences might push final decision Nature of decision will depend on how much time is given to the final purchase decision
Post Purchase Consumer reflects on purchase Cognitive Dissonance – when consumer feels unsure post purchase that they had made the right decision