chapter 4: consumer buying behaviour copyright © 2010 pearson education canada consumer behaviour 1...

Chapter 4: Consumer Buying Behaviour

Copyright © 2010 Pearson Education Canada

Consumer Behaviour

1

The actions a person takes in purchasing and using products and services,

including the mental and social processes that precede and follow these actions

What makes the consumer tick?

What buttons must the marketer press?


Consumer Behavior

• Why people choose one product or brand over another

• How they make these choices• How companies use this knowledge to

provide value to consumers

Copyright © 2010 Pearson Education Canada 2


purchase decision process

• Behind the visible act of making a purchase lies a decision process that must be investigated

• The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.



Consumer purchase decision process

• Certain variables influence behaviour—• We cannot be certain which ones actually

trigger a response– The purchase of a particular brand of product

could be the result of an endorsement by a celebrity of a friend

– It could be based on past experience with the product

– It could be the delivery of a free sample



Consumer purchase decision process

• Five Stages of Consumer Behavior

– problem recognition, – information search, – alternative evaluation, – purchase decision, and – post-purchase behavior.




Purchase Decision Process

6

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-purchase Evaluation


Problem recognition: Perceiving a Need

• Problem recognition is caused by a difference between the consumer’s ideal state and actual state. There are various causes of sources of problem recognition

1. Out of stock2. Dissatisfaction3. New needs/wants4. Related products/purchases5. Marketer induced problem recognition6. New products




Information Search

8

Time and money determine the nature of the purchase decision; the time spent evaluating alternatives.

Routine

Limited

Complex

Does not involve much time or money

More expensive and time consuming

Capital investment; much time and effort



Post-Purchase Evaluation

9

“Second thoughts” often follow a complex buying decision.

Did I make the right decision?

The unsettled state of mind experienced by an individual after a decision has been made is called cognitive dissonance.



Influences on Consumer Behaviour

10

Psychological

Personal

Social

Cultural

Consumer

Marketing Mix• Product• Price• Marketing Communications• Distribution

Company• Image• Reputation



Needs and Motivation Theory

11

Need

Motive

Absence of something useful

Condition prompting action to satisfy a need



Maslow’s Hierarchyof Needs

Physiological needs(food, water, shelter)Physiological needs(food, water, shelter)1

Safety needs(security, protection)

Safety needs(security, protection)

2

Social needs(sense of belonging,

love from family and friends)

Social needs(sense of belonging,

love from family and friends)3

Esteem needs(self-esteem, status,

recognition)

Esteem needs(self-esteem, status,

recognition)

4

Self-actualization

(self-development,fulfillment, personal growth)

Self-actualization

(self-development,fulfillment, personal growth)

5

Lower level

Higher level



Personality: a person’s distinguishing psychological characteristics that is influenced by self-perceptions, needs, culture, family and reference groups.

RealSelf: it is

you as you really are

RealSelf: it is

you as you really are

Self-Image: It is

the role you play

Self-Image: It is

the role you play

Looking-Glass

Self: how you think others

see you

Looking-Glass

Self: how you think others

see you

Ideal Self: how you would like to be

Ideal Self: how you would like to be

Self-Concept Components

Personality and Self-Concept



Attitudes

14

An individual’s feelings, favourable or unfavourable, toward an idea or object (Product or service).

Gaining acceptance is easier if the product idea fits with the attitudes of the target market.

A hearty Angus burger at Harvey’s appeals to a 20-something male with a big appetite! A salad on the side does not!



People receive and interpret messages differently.

Massages received depend on three levels of interest and need requirement :

Selective Exposure: we notice only information that interests usSelective Exposure: we notice only information that interests us

Selective Perception: screen out information that conflicts with

previously learned attitudes and beliefs

Selective Perception: screen out information that conflicts with

previously learned attitudes and beliefs

Selective Retention: we remember only what we want to rememberSelective Retention: we remember only what we want to remember

Perceptions



Lifestyle

16

A person’s pattern of living expressed in terms of activities, interests, opinions and values.

Independent research companies conduct surveys and place people in lifestyle segments.

Each segment is motivated by a unique set of attitudes and beliefs.

Source: Millward Brown Goldfarb



Technology

17

Technology has changed buying behaviour. Time-pressed “connected” consumers are conducting research online and buying online.

1. Technology makes the transaction process more convenient for consumers.

2. Companies are re-evaluating media alternatives in order to follow their customers; more digital media and less traditional media is the trend.



Reference Groups

18

A group, class, or category of people to which individuals believe they belong.

Co-workersSports teamsHobby clubsSchoolmates

Reference groups (peers) are a strong influence among young people.

The hip hop community (hip hop musicians) is one of the biggest brand building communities in the world.



Family

19

Family members influence buying decisions.

1. Major decisions are shared decisions.

2. Major retailers are reconfiguring to appeal more to women.

3. Wal-Mart Supercentres are specifically designed for women 30 to 45 with 2 or 3 children, a husband and a career.

4. Children influence $20 billion in family spending each year in Canada.



Social Class

20

The division of people in ordered groups based on similar values, lifestyles and behaviours.

Social class is determined by income, occupation, education, and inherited wealth

Upper-UpperLower-Upper

Upper-Middle Lower-MiddleUpper-LowerLower-LowerAs a person moves through

life he/she can move in and out various social classes.



Cultural Influences

21

Culture refers to “behaviour learned from external sources such as family, the workplace, and education—that help form the value systems an individual lives by.

Gen X, Gen Y, Boomers

Ethnic Groups

French Quebec Marketing strategies must be tailored to the unique needs of different groups.



Regional Influence

22

Location and culture have an influence on attitudes and values. Canada is a diverse country.

AtlanticQuebecOntarioPrairies

B.C.

1. Identify common and unique characteristics in each region (within regions there are urban and rural considerations).

2. National strategies don’t always work.

3. Implement regional strategies if profitable (costs versus benefits).

chapter 4: consumer buying behaviour copyright © 2010 pearson education canada consumer behaviour 1...

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