1. MARK4210, 2014 Spring, L1/L2
MARK4210: Strategic Marketing
2014 Spring, Section L1/L2
[Class #24]
Consumer Behavior

2. 2
MARK4210, 2014 Spring, L1/L2
Consumer Buying Behavior
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Consumer Buying Behavior refers to the buying
behavior of final consumers – individuals &
households who buy goods and services for
personal consumption
 The central question for marketers is: “How do
consumers respond to various marketing
efforts the company might use?”

3. 3
MARK4210, 2014 Spring, L1/L2
Five ‘Premises’ of Consumer
Behavior – Basis for Analysis
Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009
 Consumer behavior is purposeful and goal-oriented
 Consumer has free choice
 Consumer behavior is a process
 Consumer behavior can be influenced
 Consumers need to be educated

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MARK4210, 2014 Spring, L1/L2
A Model of Consumer Behavior
Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

5. 5
MARK4210, 2014 Spring, L1/L2
Factors Influencing Consumer
Behavior
Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

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MARK4210, 2014 Spring, L1/L2
Influencing Consumer Behavior:
Cultural Factors
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Culture: social heritage of a group (organized
community or society); the most basic determinant
of a person’s wants and behavior
 Subcultures: sub-groups of people with shared value
systems based on common life experiences and
situations
 Social classes: relatively permanent & ordered
divisions in a society whose members share similar
values, interests, and behaviors

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MARK4210, 2014 Spring, L1/L2
Influencing Consumer Behavior:
Social Factors
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Reference groups: influence the person’s attitudes
and self-concept; they also create pressures to
conform that may affect the person’s choices
 Family: consider the roles & influence of the
husband, wife, and children in the purchase decision
 Social roles: the activities a person is expected to
perform according to the people around him or her
 Status: the general esteem given to a role by
society; people often choose products that show
their status in society

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MARK4210, 2014 Spring, L1/L2
Influencing Consumer Behavior:
Personal Factors
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Age
 Life-Cycle Stage
 Occupation
 Economic Situation
 Lifestyle – a person’s pattern of living as expressed
in his or her activities, interests, and opinions
 Personality – a person’s distinguishing psychological
characteristics that lead to relatively consistent and
lasting responses to his or her environment
 Self-Concept – the complex mental pictures people
have of themselves; self-image

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MARK4210, 2014 Spring, L1/L2
Influencing Consumer Behavior:
Psychological Factors – Motivation
Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009
 Freud’s Theory
• Underlying psychology – psychological forces shaping
people’s behavior are largely unconscious, and that a
person cannot fully understand his or her own
motivations
 Maslow’s Theory of Motivation
• Sought to explain why people are driven by particular
needs at particular times
 Herzberg’s Theory
• States that there are certain factors that cause
satisfaction, while a separate set of factors cause
dissatisfaction

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MARK4210, 2014 Spring, L1/L2
Maslow’s Hierarchy of Needs
Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

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MARK4210, 2014 Spring, L1/L2
Influencing Consumer Behavior:
Psychological Factors – Perception
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Perception is the process by which an individual
selects, organizes, and interprets information inputs
to create a meaningful picture of the world.
 Perceptions vary widely among individuals exposed
to the same reality
 In marketing, perceptions are often more important
than the reality, as it affects consumers’ actual
behavior

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MARK4210, 2014 Spring, L1/L2
Buyer Decision Process
Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Need Recognition
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 For the decision process to begin, a potential buyer
must first recognize a problem or need
 Can be caused by internal or external stimuli

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Information
Sources
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Personal Sources
• Family, friends, neighbors, and acquaintances
 Commercial Sources
• Advertising, salespeople, dealers, packaging, and
displays
 Public Sources
• Restaurant reviews, editorials in the travel section,
consumer-rating organizations
 Experience
• Handling, examining, using the product

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Information Search
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Generally speaking the consumer receives the most
information about a product from commercial
sources
 The most effective information often comes from
personal sources or public sources that are
independent authorities
 The Internet has changed information search

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Evaluation of
Alternatives
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Products are seen as bundles of product attributes
 Customers rank attributes and form purchase
intentions

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Purchase Decisions
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 In executing a purchase intention, the consumer
may make up to five sub decisions:
• Brand
• Dealer
• Quantity
• Timing
• Payment-method

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Successive Sets
(Choices) in Brand Selection
Marketing Management, Kotler, Keller, Pearson Education, Inc., 2009

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Purchase Decision
Perceived Risks
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Consumer’s decision to modify, postpone, or avoid a
purchase decision is heavily influenced by perceived
risk
 Types of risks perceived by consumers:
• Functional risk
• Physical risk
• Financial risk
• Social risk
• Psychological risk
• Time risk

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MARK4210, 2014 Spring, L1/L2
Buyer Decision: Post Purchase
Behavior
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 The smaller the gap between customer expectations
and perceived performance, the greater the
customer’s satisfaction
 "Cognitive dissonance" is buyer discomfort caused
by post purchase conflict

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MARK4210, 2014 Spring, L1/L2
Other Key Points on Buyer Decision
Marketing for Hospitality and Tourism, Kotler, Bowen, and Makens, Pearson Education, Inc.
 Consumers often view price as an indication of
quality (“price-quality inference”)
 Dissatisfied customers may not complain (staff must
seek out consumer dissatisfaction)
 Beyond minimizing dissatisfaction, consumers must
be motivated to purchase