This document outlines key concepts about consumer behavior from marketing textbooks. It discusses factors that influence consumer behavior such as cultural, social, personal, and psychological factors. A model of consumer behavior is presented involving need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Maslow's hierarchy of needs and theories of motivation from Freud and Herzberg are also summarized. The document provides an overview of the consumer decision process.

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

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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?”

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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

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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