3. Objectives
Why consumer behaviour is important to strategic
planning
How an individual’s make-up affects consumption
behaviour
The factors which affect consumer buying decisions
A variety of models to better explain CBB
The strategic implications of consumer buyer behaviour
4. Some definitions of Consumer Buyer
Behaviour
“The behaviour consumers display in searching for, buying,
using, evaluating and disposing of products and services that
they expect will satisfy their needs” (Schiffman & Kanuk,
1994)
“…an investigation into the way individuals make decisions on
how to spend their available resources (time, money, effort) on
personal & household products.” (Schiffman & Kanuk, 2000)
…the consumer may act as buyer, payer, user or any
combination of these roles at a time” (Sheth, 2001)
5. Think of a fashion item that you
bought recently…
What was it?
How did you find out about its availability?
Did you consult with anyone else over this
purchase?
Where did you buy it from?
When did you buy it?
How did you pay for it?
Would you buy it again?
6. Defining Consumer Behaviour
Definition
…the study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas or experiences to
satisfy needs and desires (Solomon).
Key Concepts
Processes Individuals/Groups
Select,Purchase, Products, Services,
Use, Dispose Ideas, Experiences
7. Customer Types
Organisational
Private Consumers
Customers
Purchase:
Purchase: For use in the operation of a
business or organisation.
To manufacture other products
For personal or household use
For resale to others
ORGANISATIONAL
CONSUMER PRODUCT PRODUCT
2
8. Consumers can be buyers or users… or
both!
Consumers can act as individuals or on
behalf of an organisation
Fashion designers have two markets – the
fashion buyer and the consumer
11. Individual Factors
Motivation - An activated state that causes a person to
initiate goal-directed behaviour.
Motive - An aroused need that energises behaviour and
directs it towards a goal.
Need - The gap between actual and desired states.
Incentive - Something believed capable of satisfying a
particular motive.
12. Factors affecting Consumer Behaviour
Cultural factors
Social factors
Personal factors
Psychological factors
13.
14. Culture
Culture: “ the concepts, values and tangible items (such as
buildings and foods) that make up a particular society”
(Dibb et al, 2001)
Culture is the source of most of our values, norms, and roles.
The term culture is very difficult to define clearly, it encompasses so
much about the way a society lives.
A culture consists of values, beliefs, and customary behaviours learned
and shared by the members of a particular society.
Culture undergoes change over time – slowly
Rapid change can occur as a result of outside pressures These can
impact quickly on the nature of markets.
Cultural shifts
16. Subcultures
Subcultures: “Sub-divisions of culture according to geographic
regions or human characteristics, such as age or ethnic
background.” (Dibb et al, 2001)
Within a society there is a dominant culture.
However, there are also cultural differences. These can be
based on;
Geography (Counties; Provinces, Countries eg Scandinavia)
Language: Gaeltacht? Belgium 2 Languages, Switzerland)
Age: Tweenies, Teenagers, “Grey Power”
Lifestyle: Punks, Surfers etc
17. Social factors
Group Theory advocates the importance of Reference Groups :
“Actual or imaginary individual sor groups conceived of
having significant relevance upon an individual’s
evaluations, aspirations or behaviour” (Solomon et al,
1999)
The set of individuals with whom individuals compare
themselves to guide their attitudes, knowledge and or
behaviour
Family, friends, colleagues, clubs, organisations etc.
Aspirational; Football clubs, Celebrities etc.
Associative (those of which we are a member & with whom we identify)
Dissociative groups
18. Social factors cont’d
Reference groups influence CBB by
Exposing persons to new behaviours & lifestyles
Influencing attitudes & self concept
Creating pressures to conform
Group influence varies across product & brand
19. Social Factors: Family
Family
The most powerful social group in any society
Learn within the family
- what to believe
- how to behave
- what needs are socially accepted
Who is the decision-maker within the family?
20. Sociological factors
Social groups
Norms of dress
The family
Women buying men’s underwear for them
Geodemographics
21. Who Buys?
The Buying Decision Making
Process
Buyer Gatekeeper
Decider
(Decision
Maker)
User Influencer
Initiator
5
22. Irish Social Classification (mrbi)
Grade % of Heads of Description
household
AB 10 Upper middle, middle class
C1 20 Lower middle class
C2 25 Skilled working class
DE 30 Other working class; those at
lowest level of subsistence
F1 8 Large farmers
F2 7 Small farmers; farm labourers
23. Personal factors
Age
Family life cycle stage
Occupation
Economic status
Lifestyle
Personality & self-concept
26. Personality
Lifestyle
Self image
how we see ourselves
Ideal self image
how we like to see ourselves
Social self image
how we think we are seen
Ideal social self image
how we would like others to see us
27. The Extended Self
External objects that we
consider a part of us
Youare what you drive &
wear
Levels of extended self
Individual
Family
Community
Group
ALLMYLIFEFORSALE.COM
30. Motivation: Maslow’s Hierarchy of Needs
Physiological Needs Esteem Needs
Water, Feeling of self-worth,
Success,
Food,
Prestige,
Air
Self-Actualisation
Safety Needs
Becoming all that one is
Protection, shelter
capable of being,
Social Needs Self-fulfilment
Acceptance, People endeavour to satisfy a
Affection, number of these daily
Depending on age, income,
Feelings of belonging,
country etc
Friendship,
32. Sheth’s 5 Sets of Needs
Functional Needs
“does what it says on the
Epistemic Needs
tin..”
Express tendency to
Social Needs explore the unknown
More sophisticated
Travel, books, courses
Goods & services that
Situational Needs
provide assocs. With certain
Contingent on time & place
societal segments
Brands Unplanned
Emotional Needs
Express love, regret etc Needs become motives
when they drive us to act
34. Perception
The process by which people select, organise and
interpret information to form a meaningful
picture of the world
Affects how we act
People form different perceptions due to
Selective exposure
Selective attention
Selective distortion
Selective retention
36. Beliefs & Attitudes
Attitudes describe a person’s relatively consistent evaluations,
feelings and tendencies towards an object or idea
Belief: a descriptive thought that a person holds about something
Beliefs make up product & brand images
Favourable attitudes are NB for marketers – much more
profitable than turning around a negative one
Persuasion: either by
Targeting existing attitudes (Because you’re worth it…)
or
Modifying the target audience’s point of view (Dove Pro
Age)
37. Learning
Knowledge of brands, sizes, stores, preferences
Learn through experience
Learn through family and peers
38. Learning and LTM
Learning describes changes in an individual’s behaviour arising
from experience
Learning represents changes in the content or organisation of
information in consumers’ long-term memories
Marketing communicators attempt to alter consumers’ long-term
memories, knowledge structures, by facilitating learning of
information that is compatible with the marketer’s interest
40. Choice Criteria used when Evaluating
Alternatives
Technical- Social-
Reliability Status
Durability Social belonging
Convention
Performance
Fashion
Style/looks
Comfort
Delivery
Convenience Economic- Personal-
Taste Price Self-image
Value for money Risk reduction
Running costs Morals
Residual value Emotions
Life style costs
5
41. Decision Making
How do consumers make their choices?
An important determinant is the situation in which a
decision is made.
Three categories of consumer decision-making
behaviour:
Routinised response behaviour,
Limited problem solving, and
Extensive problem solving.
42. The consumer decision-making process and level of
purchase involvement
Stage Low Involvement High Involvement
Need recognition Major personality
Minor important
problem awareness
Information search Limited search Extensive search
Evaluation of Few alternatives Many alternatives
alternatives and the evaluated on few evaluated on many
purchase choice criteria choice criteria
Purchase Decision Uncomplicated / Complex decision rules
impulse Compensatory ?
Post-purchase Limited evaluation Extensive evaluation
evaluation of the media search
alternatives
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43. Opinion leadership
Influence exerted when a consumer is faced with
choice
Information is both sought from and/or given by the
OL
Fashion marketers ‘create’ opinion leaders
46. Consumer Behaviour Is Interdisciplinary
Psychology
Sociology
Social psychology
Anthropology
Economics
47. Why study consumer behaviour?
(Micro) Marketing Implications
Marketing Concept
Market Segmentation
Influencing Product/Service Choices
(Macro) Societal Implications
Understanding Popular Culture--e.g., Lady Gaga, Nike, the
Oscars
Understanding Consumer Culture around the World--e.g.,
Christmas as a Global Holiday
How does Marketing Affect Consumers?--e.g., Happiness, Envy,
Materialism
An increasingly significant part of human behaviour
48. Strategic Implications of Consumer Behaviour
Contemporary marketers rely on CB to increase effectiveness in
light of increasingly complex env’t
Market research: qualitative & quantitative data
Increasing importance of psychographics
Market segmentation
Brand / product postioning (Burberry / chav disaster)
Symbolism & semiotics: the study of meaning
Use of logos; hi-impact packaging; animation
Product innovation & value decisions
Brands judged relative to others
Use of perceptual maps
49. Developments in Consumer Behaviour
E-shopping: Vast consumer choice
Growth of global / international marketing:
The “euro”consumer ?
The global consumer?
Deviant consumer behaviour (I know I shouldn’t but..)
Ethical implications for marketers
Economic psychology:
Choice conflict (among equally reputable brands)
Loss / regret aversion
Editor's Notes
3 3 2 1 1
Associative – also known as membership groups – primary are informal (co-workers, neighbours); secondary more formal (religious, professional & trade-union) Aspirational: not a member – eg play for Man Utd Dissociative: consumer rejects their behaviour: eg religious cults; gangs?
Reference groups nb to marketers because of influence: where influence is strong marketers must reach the opinion leaders Family: Family of orientation; parents. Family of procreation: wife/husband, kids. Roles of each in purchasing interest marketers: who makes the decision Husband dominant / wife dominant / equal. Husband: buy the car 68 wife 3% equal 29% Colour of car: husband: 25%, wife 25%, equal 50% Kids: type of TV, electronic appliances.
17 17 16 15 15
Family lc: 9 stages: listed with fin situation & typical product interests Also psychological life cycle stages: transformations or passages we go thru: eg satisfied wife & mother may become dissatisfied person looking for a new career: simulates new interests. Divorce, widowhood: huge impact on consumer behaviour. Occupation also influences consumption pattern: blue-collar vs co, president Economic circumstances: spendable income; borrowing power; attitude to spending vs saving. Important for Income-sensitive products Lifestyle: pattern of living in the world as expressed by activities, interests & opinions. Goes beyond social class 7 personality: marketers monitor this to increase the number of ways their products fit meaningfully into the pattern. Personality: the person’ distinguishing psychological characteristics: can be difficult to link to brand choices. Self-concept (& ideal self-concept) form another method
It’s not really ‘me’.
Motivation: Maslow’s theory
Selective attention People are exposed to a great number of stimuli every day e.g. - average person exposed to 1,500 ads a day and remember only three or four Selective attention is the tendency to screen out most of the information to which they are exposed. Means marketers have to work pretty hard. Selective distortion We fit incoming information into an existing mindset. Selective distortion is the tendency to adapt information to personal meanings. People interpret information in a way that will support rather than challenge their preconceptions Selective Retention: People retain info that supports their beliefs & attitudes Marketers have to worked hard : therefore much use of drama & repetition in getting message across
“ The semiotics of consumption” – These symbols play a large role in how we perceive our world (Nike Swoosh; 3 stripes; Coca Cola Can;