2. What is consumer behaviour?
Consumer behaviour is influenced by two major factors:
1. External to consumer – cultural and social
2. Internal to the consumer – Psychological and personal
** Having a clear understanding of the factors at work
influencing consumer behaviour can assist businesses in their
marketing management.
3. 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
4. Internal Consumer Influences
Psychological factor – motivation, perception, learning,
beliefs and attitudes
_Plays a role in defining why consumers behave in certain
ways
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.
5. Buying Decisions
Research has shown that consumers will demonstrate one
of four behaviours when they are involved in a purchasing
decision.
1. Complex buying behaviour
2. Dissonance reducing behaviour
3. Habitual buying behaviour
4. Variety seeking behaviour
6. Complex buying behaviour
a lot of information is gathered
Decision has high financial risk
Buyer heavily involved in decision making process
Alternatives are thoroughly investigated
Examples of this behaviour include: buying a car, house,
technology
7. 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 choice
Examples: Purchase of an engagement ring, typically it is a
once off buy and is expensive and there is relatively little
difference between diamond suppliers.
8. 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
9. 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
sampled
Example: looking for food available in a food court or scour the
supermarket shelves for the snack options.
10. Stages of the Buying Decision
Process
Five stages of interaction by consumer when purchasing:
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behaviour
11. 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.
12. Information Search
information by prior knowledge or seeking vigorous search
for info.
Maybe through friends, family, professional services and
other public info.
13. 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
14. 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
15. Post Purchase
Consumer reflects on purchase
Cognitive Dissonance – when consumer feels unsure post
purchase that they had made the right decision