Consumer Behavior

Consumer Decision Process

A five-step model illustrating how consumers make purchasing decisions.

Awareness

The first step in the marketing funnel where consumers become aware of a product or service.

Need Recognition

The initial stage in the consumer decision process where a consumer identifies a need.

Functional Value

The practical benefit a product provides, such as hydration from bottled water.

Money Value

The perceived worth of a product compared to its cost, influencing purchasing decisions.

Social Value

The extent to which a product allows consumers to connect with others, often tied to brand prestige.

Psychological Value

The degree to which owning a product helps customers express themselves or feel better.

Maslow's Hierarchy of Needs

A theory prioritizing human needs, indicating that lower-level needs must be met before addressing higher-level needs.

Post Purchase

The evaluation phase after a purchase where consumer satisfaction and loyalty are assessed.

Conversion

The process of turning a potential sale into an actual purchase.

Marketing as Storytelling

The concept that effective marketing creates a narrative that engages consumers and raises awareness.

Persistence and Thinking it Through

The idea that understanding consumer behavior requires looking beyond what consumers say to what they actually do.