MKT1705D Week 4 Consumer Behaviour

Behaviour of consumers in marketplace

1) Purchase

2) Use

3) Evaluate (whether you like the product or not)

4) Dispose of goods & services

Post-Purchase Phenomena

1) Satisfaction

2) Anxiety

3) Complaint Behaviour

Factors influencing Consumer Behaviour

1) Social Factors

2) Personal Factors

3) Cultural Factors

4) Psychological Factors

Cultural Factors

Set of learned beliefs, values, attitudes, habits, and behaviour shared by members of a society and transmitted from generation to generation

Social Factors

Refer to the external influences from the people and groups around a consumer that shape their buying decisions.

Normative Social Influence

Refer to when consumer conforms to group expectations to gain rewards, avoid social rejection, or avoid embarrassment.

Informational Social Influence

Refer to when a consumer looks to others for guidance because they are unsure of what to do. They assume the group or expert possesses better knowledge about a product or situation.

Personal Factors

Refer to the internal, individual characteristics unique to a consumer that deeply affect their buying choices.

Examples of Personal Factors

1) Demographic (age, education, economic situation)

2) Lifestyle (Activities, Interests, Opinions)

3) Personality & Self-Concept (Consumer’s perception of him/herself)

Psychological Factors

Refer to the internal mental processes that drive consumers to recognize their needs, gather information, and make final buying decisions.

Examples of Psychological Factors

1) Motivation

2) Perception

3) Attitude

Motivation

Sufficiently strong need directing to consumer to fulfil it to reduce inner tension.

Maslow’s Hierachy of Needs

5. Self-Actualization (Growth, achieving full potential) (least needed)

4. Esteem Needs (Status, respect, recognition, accomplishments)

3. Love & Belonging (Friendship, intimacy, family, connection)

2. Safety Needs (Security, employment, health, financial stability)

1. Physiological Needs (Food, water, shelter, sleep, clothing) (most needed)

Perception

How a consumer selects, organises, and interprets information to create a meaningful picture of the world

Attitude

Enduring positive/negative feelings towards an object

Influenced by own beliefs, importance of belief, important others

Buying Decision Process

Refer to the multi-step journey a consumer goes through before, during, and after making a purchase.

Buying Decision Process Steps

1) Need/Problem Recognition (Gap between actual and desired state. Triggered by internal or external stimuli)

2) Information Search (Gathering options via personal, commercial, public, or experiential sources.)

3) Alternative Evaluation (Comparing brand alternatives based on specific choice criteria.)

4) Purchase Decision (Buying intention, which can be disrupted by others' attitudes or situational factors.)

5) Post-Purchase (Evaluation of satisfaction. Can lead to cognitive dissonance (buyer's remorse))

Consumer Buying Decision Behaviour

Refers to the varying ways people behave when purchasing products, depending on the degree of consumer involvement and the degree of differences among brands.

Complex Buying Behaviour

Conditions: High involvement, highly priced, risky, and self-expressive, with massive differences between brands.

Behaviour: Consumer learns about the product deeply, develops beliefs, and makes a highly deliberate choice.

Example: Buying a laptop, a luxury car, or a home.

Dissonance-Reducing Buying Behaviour

Conditions: High involvement and expensive, but the consumer sees very little difference between competing brands.

Behaviour: Consumer shops around quickly and buys based on price or convenience, but later experiences cognitive dissonance (worrying they made the wrong choice).

Example: Buying a carpet, diamond ring, or home mattress.

Variety-Seeking Buying Behaviour

Conditions: Low involvement, inexpensive, but there are major differences between products.

Behaviour: Consumer switches brands often for the sake of variety, curiosity, or boredom, rather than dissatisfaction.

Example: Buying cookies, potato chips, or shampoo.

Habitual Buying Behaviour

Conditions: Low involvement and little to no perceived difference between brands.

Behaviour: Consumer buys out of pure habit and familiarity, not brand loyalty. They grab it off the shelf without thinking.

Example: Buying table salt, sugar, or toilet paper.

Buying Decision Behaviours

1) Complex Buying Behaviour

2) Dissonance-reducing Buying Behaviour

3) Variety-seeking buying Behaviour

4) Habitual Buying Behaviour

Variation of Levels of Consumer Decision-Making

1) Routine Response Behaviour

2) Limited Problem Solving

3) Extended Problem Solving

Routine Response Behaviour

When: Low-cost, frequently purchased, low-risk items.

The Process: Consumers skip stages 2 (Search) and 3 (Evaluation). They recognize the need and go straight to the purchase based on habit.

Example: Buying your favorite brand of milk, soda, or gum.

Limited Problem Solving

When: Moderately expensive items, or when a consumer knows the product category but is unfamiliar with a new brand.

The Process: Consumers do a moderate amount of information search and comparison. They use simple guidelines (like price or a friend's recommendation) to make a quick choice.

Example: Buying a new toaster, a pair of jeans, or a mid-range restaurant meal.

Extended Problem Solving

When: High-priced, infrequently purchased, high-risk items.

The Process: Consumers carefully follow all 5 stages of the buying decision process. They spend significant time gathering information and evaluating many alternatives to reduce risk.

Example: Buying a car, a wedding ring, or choosing a university.