Consumer Behavior
Definition of consumer behavior: it is the study of consumers and the processes they use to
choose, use (consume), and dispose of products and services.
"All marketing decisions are based on assumptions and knowledge of consumer behavior,"
(Hawkins and Mothersbaugh, 2007).
Quality + Price + Customer Service = Value and Satisfaction
So what is meant by 'Quality?'
Quality ― is a product or service's ability to meet the customers' need or want.
Products
Performance
Features
Reliability
Serviceability
Aesthetics
Perception
Services
Responsiveness
Reliability
Assurance
Empathy
Tangibles
Why People Buy
Many factors are involved in a customers' buying decision, any one of which can become the
deciding factor, such as:
Conspicuous consumption: Lavish spending for the purpose of displaying wealth or social
status; preference for buying increases with price.
Snob effect: Desire to buy something nobody else has; preference for buying increases
with rarity or scarcity.
Bandwagon effect: Desire to buy something everybody else is buying; preference for
buying increases with perceived popularity.
Economic-To enhance their lifestyle or to fulfill two of Maslow's needs: physiological
(food, shelter) and Safety and Security.
Psychological-This is the study of how people interact with their environment, products
are consumed to enhance their well being, for example air fresheners, furniture and
convection ovens.
Internal Influences
Learning
Learning is a change of behavior following an interaction between a person and their
environment.
The Learning Process:
Exposure - the customer becomes aware of product, service or advertisement through
at least one of their five senses (sight, smell, taste, touch, hearing).
Attention - the customer processes the stimulus.
Understanding - the customer interprets the information and acts on it either by
purchasing the product or service, dismissing the information, seeking more information
or remembering it for future information.
Memory
Memory refers to a consumer's ability to understand the marketing messages and assign them
value and meaning.
Physical Characteristics of message
Imagery: When the brand name, words, and slogan work together to create an image in
the mind of the consumer, it will invoke ideas, feelings and objects, and a direct
recovery of past experiences.
Color: Colors have an enormous impact on marketing messages, and color affects
consumers in a subjective manner.
Font: The presentation of words and how they are shaped will also enhance the
marketing message and contribute to the value and meaning.
Simplicity of the message: A simple message is generally easier to understand.
Consistency of the message: The message needs to fit in with the surrounding
information—style, color, text, photographs, music—all have to work together.
Source of the message: Consumers will be more likely to remember and purchase
products endorsed by credible sources, animated characters or celebrities.
Characteristics of the message receiver (consumer)
Intelligence
Involvement
Familiarity
Expectations
Physical limits
Personality
Personality is defined as the thoughts, emotions, intentions and behavior that people
express as they move through their environment.
The Five Factor Model Approach to personality identifies five core traits and how they manifest
into behavior.
Other personality traits that translate into consumer behavior purchases:
Frugality
Impulsiveness
Anxiety
Bargaining
Vanity
Competence
Excitement
Ruggedness
Sincerity
Sophistication
Lifestyle and Attitude
A. Lifestyle
Lifestyle is a way to segment people into groups based on three things: opinions, attitudes and
activities. Lifestyle means the ways groups of consumers spend time and money.
B. Attitude
An attitude is an internal evaluation, expressed outwardly about a person, object or issue.
There are three components of attitude - affect, behavior and cognition. This system
sometimes called the ABC's of attitude. These three components work together to form a
hierarchy of effects:
ELM Model
One theory about attitude change is the Elaboration Likelihood Model (ELM). This model
shows how attitudes are changed based on the level of involvement in the purchase.
The central route : If the consumer is highly involved in the purchase, then they will put forth
considerable effort toward understanding the marketing messages.
The peripheral route : If the consumer is not highly involved in the purchase, or lacks the
motivation to process information, they are more likely to pay attention to the attractiveness of
the people in the advertisement, images and music, which are all non-product related
information.