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Understanding Consumer Behaviour
elaboratemarketing.com
@letselaborate
Online marketing tutorial
Human Motivation
Maslow’sTheory of Human Motivation (1943)
• Maslow believed people had a set of motivation
systems from basic needs to self actualisation
• According to this theory, everyone needs
to go through all of the needs to reach
self-actualisation, from the bottom to the
top of the pyramid
Maslow, 1943
Maslow’s theory of motivation
Motivation Definition Product examples
Physiological
Biological & physiological needs
Air, water, food, drink, shelter, sex, sleep, warmth
Water, food, house, bed
Functional/practical
Safety needs
Protection from the elements
Security, stability
Freedom from fear
Helmet, house & health insurance,
internet security
Emotional/social/cultural
Love & belongingness
Friendship, intimacy, affection
Love from work, friends, family, romantic relations
Flowers, organ donorship,
chocolates, cards, birthday
presents
Self-esteem/luxury
Esteem needs
Achievements, status, independence, self-respect from
others
Car, lottery, marathon
Self actualisation
Realising personal potential
Self fulfilment
Seeking personal growth
University course, training
The Consumer Buying Process
Need/Problem recognition
Step one: Need and problem recognition.This arises when the consumer
recognises that there is a need for an item
• Assortment depletion - when the stock of goods has been used up or
worn out
• Assortment extension - when there’s the need to add some new items
Information Search
Step two: Information search. Once someone has become motivated to
buy/need something they engage in two forms of information search:
1. Internal Search - remembering previous experiences and what
they already know about the product/service
2. External Search - shopping around, reading literature, looking at
advertisements and talking to friends
Identification and evaluation of alternatives
Step three: identification and evaluation. After the information search the
consumer will evaluate the alternatives they have open to them
The consumer will use cut offs - which are the minimum and maximum
acceptance values for the product
Signals - price tags, brand names, price, etc
Purchase decision and post-purchase
evaluation
Step four: purchase. Next comes the actual purchase, where the consumer
will pick an appropriate method of payment
Step five: post-purchase evaluation. Post-purchase evaluation involves the
consumer deciding on whether the purchase has been a success or not
(Blythe, 2013)
This involves comparing what the consumer was expecting to get and what
they actually have
Post-purchase dissonance - where the product has not lives up to
expectations
The consumer decision making
process
Influences on the decision making unit
Reference Groups Personal Factors Psychological factors Social Factors
Primary groups – people we
most often see
Secondary groups – people we
see occasionally
Situational factors – changes in
circumstances e.g. pay rise
Perception –The way people
build up a view of the world
Informational influence – the
need to seek information from a
group
Aspirational groups – groups
wish we belong
Demographic factors –
individual characteristics
Motives – the internal force that
encourages someone towards a
particular course of action
Normative compliance –
pressure exerted on someone
Dissociative groups – group an
individual does not want to
belong to
Level of involvement – the
degree of importance or that
emotional attachment
Attitude – cognition (conscious),
affect (emotional attachment)
and contagion (planned course
of action)
Value -expressive influence –
need to physiologically associate
with a particular group
Automatic groups – belong to
virtue e.g. age
Formal/informal groups –
membership based on friendship
Influences on the decision making process
Cultural - subcultures, ethnicity, country and origin
Social - social groups, family, virtual groups,
Personal influences - personal values & ethics
People and personalities who influence decisions
The decision making unit
The decision making unit is a group of people who participate in or influence the
purchase decision at any stage in the buying process (CIM, 2012)
This may involve a number or roles:
• Gatekeepers - controls the flow of information to the decision makers. Barrier to sales
people
• Influencers - Individuals who ‘have the ear’ of the decision makers
• Users - who will actually use the product
• Deciders - who will make the actual decision, usually the hardest to influence
• Buyers - who will actually buy the product
B2B vs B2C buyer behaviour
B2B B2C
• Experts
• Professional buyers
• Well trained, rational decisions
• Non-professional buyers
• Knowledge gap
• No formal training, emotional
• Large quantities
• Higher risk - more money
• Smaller quantities
• Sales people are important • Sales people less important
• Group/multiple people in decision making
process
• Single decision maker
Summary
• Maslow’sTheory of Human Motivation (1943) determines the set of motivation systems a
consumer goes through
• There are 5 key steps in the consumer decision making process
1. Need/problem recognition
2. Information search
3. Identification and evaluation of options and alternatives
4. Purchase decision
5. Post-purchase evaluation
• When making the decision to buy a product/service personal, physiological and social factors
play a key part. Reference groups can also have an impact on the decision.
• The decision making unit consist of; gatekeepers, influencers, users, deciders and buyers.
When marketing your product or service it is important to know which one of these you need
to target.
@letselaborate
www.elaboratemarketing.com
rachel@elaboratemarketing.com

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Understanding Consumer Behaviour

  • 2. Human Motivation Maslow’sTheory of Human Motivation (1943) • Maslow believed people had a set of motivation systems from basic needs to self actualisation • According to this theory, everyone needs to go through all of the needs to reach self-actualisation, from the bottom to the top of the pyramid Maslow, 1943
  • 3. Maslow’s theory of motivation Motivation Definition Product examples Physiological Biological & physiological needs Air, water, food, drink, shelter, sex, sleep, warmth Water, food, house, bed Functional/practical Safety needs Protection from the elements Security, stability Freedom from fear Helmet, house & health insurance, internet security Emotional/social/cultural Love & belongingness Friendship, intimacy, affection Love from work, friends, family, romantic relations Flowers, organ donorship, chocolates, cards, birthday presents Self-esteem/luxury Esteem needs Achievements, status, independence, self-respect from others Car, lottery, marathon Self actualisation Realising personal potential Self fulfilment Seeking personal growth University course, training
  • 5. Need/Problem recognition Step one: Need and problem recognition.This arises when the consumer recognises that there is a need for an item • Assortment depletion - when the stock of goods has been used up or worn out • Assortment extension - when there’s the need to add some new items
  • 6. Information Search Step two: Information search. Once someone has become motivated to buy/need something they engage in two forms of information search: 1. Internal Search - remembering previous experiences and what they already know about the product/service 2. External Search - shopping around, reading literature, looking at advertisements and talking to friends
  • 7. Identification and evaluation of alternatives Step three: identification and evaluation. After the information search the consumer will evaluate the alternatives they have open to them The consumer will use cut offs - which are the minimum and maximum acceptance values for the product Signals - price tags, brand names, price, etc
  • 8. Purchase decision and post-purchase evaluation Step four: purchase. Next comes the actual purchase, where the consumer will pick an appropriate method of payment Step five: post-purchase evaluation. Post-purchase evaluation involves the consumer deciding on whether the purchase has been a success or not (Blythe, 2013) This involves comparing what the consumer was expecting to get and what they actually have Post-purchase dissonance - where the product has not lives up to expectations
  • 9. The consumer decision making process
  • 10. Influences on the decision making unit Reference Groups Personal Factors Psychological factors Social Factors Primary groups – people we most often see Secondary groups – people we see occasionally Situational factors – changes in circumstances e.g. pay rise Perception –The way people build up a view of the world Informational influence – the need to seek information from a group Aspirational groups – groups wish we belong Demographic factors – individual characteristics Motives – the internal force that encourages someone towards a particular course of action Normative compliance – pressure exerted on someone Dissociative groups – group an individual does not want to belong to Level of involvement – the degree of importance or that emotional attachment Attitude – cognition (conscious), affect (emotional attachment) and contagion (planned course of action) Value -expressive influence – need to physiologically associate with a particular group Automatic groups – belong to virtue e.g. age Formal/informal groups – membership based on friendship
  • 11. Influences on the decision making process Cultural - subcultures, ethnicity, country and origin Social - social groups, family, virtual groups, Personal influences - personal values & ethics People and personalities who influence decisions
  • 12. The decision making unit The decision making unit is a group of people who participate in or influence the purchase decision at any stage in the buying process (CIM, 2012) This may involve a number or roles: • Gatekeepers - controls the flow of information to the decision makers. Barrier to sales people • Influencers - Individuals who ‘have the ear’ of the decision makers • Users - who will actually use the product • Deciders - who will make the actual decision, usually the hardest to influence • Buyers - who will actually buy the product
  • 13. B2B vs B2C buyer behaviour B2B B2C • Experts • Professional buyers • Well trained, rational decisions • Non-professional buyers • Knowledge gap • No formal training, emotional • Large quantities • Higher risk - more money • Smaller quantities • Sales people are important • Sales people less important • Group/multiple people in decision making process • Single decision maker
  • 14. Summary • Maslow’sTheory of Human Motivation (1943) determines the set of motivation systems a consumer goes through • There are 5 key steps in the consumer decision making process 1. Need/problem recognition 2. Information search 3. Identification and evaluation of options and alternatives 4. Purchase decision 5. Post-purchase evaluation • When making the decision to buy a product/service personal, physiological and social factors play a key part. Reference groups can also have an impact on the decision. • The decision making unit consist of; gatekeepers, influencers, users, deciders and buyers. When marketing your product or service it is important to know which one of these you need to target.