CHA PT ER 3

CONSUMER
B E H AV I O R &
INSIGHT
C ON TEN T
1. Definition

2. Model of Consumer Behavior

3. Characteristics Affecting Consumer Behavior

4. Types of Buying Decision Behavior

5. The Buyer Decision Process

 Customer vs Consumer

Customers are referred as Consumers are people who buy and

someone who has needs and consume products and services to satisfy
wants about a product. They may their needs and wants. They are the last
purchase products but does not to consume the product created. A
mean that they will use the consumer can be an individual, a
product themselves. household or a group of people.
1. DEFINITION
Consumer behavior can be defined as the process and activities
people engage in when searching for, selecting, purchasing, using,
evaluating, and disposing of products and services to satisfy their
needs and desires (Belch, 2020)

Marketers need to know the specific needs customers are

attempting to satisfy and how they translate into purchase criteria.
2. MODEL OF
CONSUMER
B E H AV I O R
2. MODEL OF CONSUMER BEHAVIOR
2. MODEL OF CONSUMER BEHAVIOR
3.CHARACTERISTICS
AFFECTING
CONSUMER
B E H AV I O R
3. CHARACTERISTICS AFFECTING CONSUMER
BEHAVIOR
 Cultural Factors
• Culture is the most basic cause of a person’s wants and behavior. Human behavior is largely
learned. Growing up in a society, a child learns basic values, perceptions, wants, and behaviors
from his or her family and other important institutions. Marketers are always trying to spot cultural
shifts so as to discover new products that might be wanted.

• Each culture contains smaller subcultures, or groups of people with shared value systems based
on common life experiences and situations. Subcultures include nationalities, religions, racial
groups, and geographic regions.

• Almost every society has some form of social class structure. Social classes are society’s
relatively permanent and ordered divisions whose members share similar values, interests, and
behaviors.
 Social Factors
• Many small groups influence a person’s behavior. Marketers try to identify the reference
groups of their target markets. Reference groups expose a person to new behaviors and
lifestyles, influence the person’s attitudes and self-concept.

• Family members can strongly influence buyer behavior. The family is the most important
consumer buying organization in society. Marketers are interested in the roles and influence
of the husband, wife, and children on the purchase of different products and services.

• The person’s position in each group can be defined in terms of both role and status. A role
consists of the activities people are expected to perform according to the people around
them. Each role carries a status reflecting the general esteem given to it by society.
 Personal Factors

• People change the goods and services they buy over their lifetimes.
Life stage changes usually result from demographics and life-changing
events—marriage, having children, purchasing a home, divorce,
children going to college, retirement.

• Occupation affects the goods and services bought

• A person’s economic situation will affect their product choices.

Marketers watch trends in personal income, savings, and interest rates
• People coming from the same
subculture, social class, and
occupation may have quite
different lifestyles. Lifestyle is a
person’s pattern of living as
expressed in his or her psycho-
graphics.

Nielsen PRIZM
 • Each person’s distinct
personality influences his or her
buying behavior. Personality
can be useful in analyzing
consumer behavior for certain
product or brand choices.
 Psychological Factors
• A person has many needs at any given time. Some are biological,
arising from states of tension such as hunger, thirst, or discomfort.
Others are psychological, arising from the need for recognition, esteem,
or belonging. A need becomes a motive when it is aroused to a sufficient
level of intensity. A motive (or drive) is a need that is sufficiently pressing
to direct the person to seek satisfaction.

• Motivation is the energizing force that stimulates behavior to satisfy

needs
• A person tries to satisfy the
most important need first.

• When that need is satisfied, it

will stop being a motivator, and
the person will then try to
satisfy the next most important
need.
4. TYPES OF BUYING
D EC I S I O N B E HAV I O R
4. TYPES OF BUYING DECISION BEHAVIOR
• Consumers undertake complex buying behavior when they are highly
involved in a purchase and perceive significant differences among
brands.

• Dissonance-reducing buying behavior occurs when consumers are

highly involved with an expensive, infrequent, or risky purchase but see
little difference among brands

• Habitual buying behavior occurs under conditions of low-consumer

involvement and little significant brand difference.

• Consumers undertake variety-seeking buying behavior in situations

characterized by low consumer involvement but significant perceived
brand differences.
5.THE BUYER
DECISION
PROCESS
• Consumers usually pass
through all five stages with
every purchase.

• But in more routine purchases,

consumers often skip or reverse
some of these stages.
5. THE BUYER
DECISION PROCESS
 Why consumer behavior is important to
marketing strategy?

Marketers’ success in influencing purchase behavior depends in large part on how

well they understand consumer behavior. Marketers need to know the specific
needs customers are attempting to satisfy and how they translate into purchase
criteria.
• Marketers need to understand how consumers gather information regarding
various alternatives and use this information to select among competing brands
• How they make purchase decisions.
• Where do they prefer to buy a product?
• How are they influenced by marketing stimuli at the point of purchase?
• Marketers also need to understand how the consumer decision process and
reasons for purchase vary among different types of customers.
EXTRA: CONSUMER JOURNEY &
BRAND TOUCHPOINT
The Social Consumer Decision Journey
 Role of consumer journey when planning
marketing strategy

M arketers sho u l d ta rget sta ges i n t h e d eci si on

jo urn ey. M arketers of ten sp end a l arge
p ercen ta ge o f t h eir IM C b u dget s on ad vert i si n g
a nd sal es p ro mot i on whi ch a re d esi gn ed to
i nf l u ence con su mers a t t he con si d er a n d b uy
sta ges. Ho wever, co nsu mers may of t en b e
i nf l u enced more du ri ng t h e eva lu at e a n d en joy -
a dv ocat e-b on d st ages . For man y con su mers , th e
mo st i mpo rta nt in cen ti ve t o b uy may b e a no t her
p erso n ’s a dv o ca cy o r reco mmend at i on .
 Brand Touchpoint
A to u ch p oi nt refers to each a n d every o pp o rtu n i ty t he cu sto mer h as t o see o r h ear
a bo u t t he comp an y an d /o r i ts b ra nd s or h ave an en co u nt er o r experi en ce wi th it .

T hes e co nta ct s ca n ra n ge f rom si mp ly seei ng o r hea ri ng a n ad fo r a bran d t o act u al l y

h avi n g th e op p ort u ni t y t o u se o r ex peri en ce a bran d i n a reta i l sto re o r i nteract i n g
wi th th e co mp any du ri ng a s al es tran sa cti o n o r serv ice en cou nt er.
Practice: Find brand touchpoint for a specific brand
 Brand Touchpoint
• Co mpa ny-created to u ch p oi n ts a re p l an ned ma rket i n g commu n i ca ti o n
messa ges created b y t he comp a ny su ch a s a dv erti semen ts, web si tes
a nd so ci al med i a si tes , n ews/p res s relea ses, p ackagi n g, b ro ch ures a nd
col l at era l mat eria l , sa l e p ro mo ti o ns , a nd p oi n t-o f-p urch ase d i spl ay s
a lo n g wi th o th er t yp es o f i n-sto re d éco r.

• In tri n si c to u ch p oi n ts a re i nt era cti o ns t ha t occur wi th a comp a ny o r

b ra nd d uri n g t he p ro cess o f b uy i n g o r u si ng t he p ro d uct o r serv i ce
su ch a s d i scus si on s wi th retai l sa l es p erso n nel o r cu sto mer serv i ce
represen tat i ves
 Brand Touchpoint
• Un exp ected to u ch p oi n ts a re u na nt i ci pa ted ref eren ces o r i nf orma ti o n
a bo u t a comp a ny o r b ra nd t ha t a cu sto mer o r p ro sp ect receiv es t ha t i s
b eyo nd t he con t ro l o f t he o rgan i zat io n . P ro ba b ly t he mo st i nf l u ent i al
t yp e o f u nexp ected con ta ct i s a wo rd-o f-mo ut h messa ge whi ch ref ers to
a p erso n al commu n i ca ti o n t ha t comes f ro m f ri end s, a sso cia tes,
n ei ghb o rs, co-wo rkers, o r fa mi ly memb ers .

• Cu st omer -i n it i ated to u ch p oi n ts a re i nt era cti o ns t ha t o ccur when ever a

cu sto mer o r p ro sp ect con ta cts a comp a ny. M ost o f t hes e con ta cts
i nvo l ve i n qu i ri es o r comp l ai n ts con su mers mi ght h ave rega rd i n g t he u se
o f a p ro d uct o r serv i ce a nd occur t hro ugh cal l s ma de d i rect l y to t he
comp a ny, v i a e-ma il s, o r t hro ugh sp eci f ic sect i on s o f web si tes to whi ch
cu sto mers a re d i rect ed.
 T H A N K YO U

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