Consumer behavior

DISTRIBUTION MANAGEMENT

  • UAB Universitet Autonoma de Barcelona

  • Facundo García Pereyra

  • Email: josefacundo.garcia@uab.cat

OVERVIEW OF CONSUMER BEHAVIOR

  • Definition: Consumer behavior is the process and activities people engage in when searching, selecting, purchasing, using, evaluating, and disposing of products/services.

  • Understanding consumer behavior is crucial for marketers to influence buying behavior effectively, as it helps identify customer needs and translate them into buying criteria.

CONSUMER DECISION-MAKING PROCESS

  • Stages: The consumer's purchase decision process involves several psychological stages: problem recognition, information search, evaluating alternatives, purchase decision, and post-purchase evaluation.

PROBLEM RECOGNITION

  • Definition: The awareness of a need when consumers perceive a discrepancy between their ideal and actual state.

  • This stage is crucial and initiates further decision-making processes.

  • Problems may not always indicate a negative state; they can arise from unmet needs.

Sources of Problem Recognition

  • Out of Stock (e.g., buying food)

  • Dissatisfaction (e.g., changing a mobile device)

  • New Needs/Desires (e.g., buying clothes for a job)

  • Related Purchases (e.g., purchasing a laptop requires a sleeve)

  • Vendor-induced recognition

  • New Products

CONSUMER MOTIVATIONS

  • Perception of problems and motivations impact the decision process.

  • A consumer's perspective may differ based on whether they view a purchase functionally (e.g., a watch as reliable) or emotionally (e.g., a watch as a fashion statement).

HIERARCHY OF NEEDS

  • Based on the theory by Abraham Maslow, it serves as a framework for understanding consumer motivations. Marketers tailor campaigns to meet various needs across different segments.

PSYCHOANALYTIC THEORY

  • Pioneering by Freud, this theory probes subconscious motivations influencing buying behavior.

MARKETING MOTIVATION RESEARCH

  • Methods: In-depth interviews, projective techniques, focus groups, etc.

  • Example insights derived from motivational research reveal deep-seated reasons behind consumer choices (e.g., luxury purchases for status or protection).

PROBLEMS AND CONTRIBUTIONS OF PSYCHOANALYTIC THEORY

  • Criticisms: Considered vague, overly focused on individual experiences.

  • Contributions: Provides qualitative insights into consumer sentiments, particularly through focus groups and projective techniques.

INFORMATION SEARCH

  • Stages of Information Search:

    • Internal Search: Recall of past experiences or knowledge to inform decisions.

    • External Search: Seeking additional information from various sources, such as online, social, commercial, or personal.

PERCEPTION

  • Importance: How consumers perceive information affects selection and interpretation. Effective marketing stimuli should stand out through various sensory channels.

EVALUATING ALTERNATIVES

  • Consumers compare identified brands to solve their needs using criteria known as the evoked set. The evoked set is a subset of brands considered for purchase.

EVALUATION CRITERIA AND DECISION RULES

  • Consumers compare brands based on attributes—both objective (price, warranty) and subjective (style, performance).

ATTITUDES

  • Attitudes are predispositions to respond and sum up evaluations of objects or brands.

  • Multi-Attribute Attitude Models: Help marketers identify how attitudes are formed based on brand attributes.

ATTITUDINAL CHANGE STRATEGIES

  • Marketers can influence consumer attitudes by modifying beliefs about attributes or changing perceptions of their importance.

INTEGRATION PROCESSES

  • Consumers use integration processes to combine brand characteristics, informed by decision rules, when evaluating alternatives. Sometimes simplified heuristics are used.

PURCHASE DECISION

  • The final step involves deciding which brand to purchase, based often on a match between motives and brand attributes. A time lag can exist between intent and actual purchase.

POST-PURCHASE EVALUATION

  • Consumers compare product performance against expectations leading to satisfaction or dissatisfaction, impacting future purchase intentions and brand attitudes.

VARIATIONS IN CONSUMER DECISION-MAKING

  • Consumers may skip stages in decision-making based on past experiences or the comparatively low importance of a decision.

ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR

  • Decisions are influenced by external factors such as culture, social class, reference groups, and situational determinants.

CULTURE

  • Represents the shared meanings, values, and customs of a society influencing consumption behavior; marketers must consider cultural context in advertising.

SUBCULTURES

  • Smaller groups within a culture, distinguished by unique beliefs and behaviors, impacting consumer behavior significantly.

SOCIAL CLASS

  • Divisions within society based on lifestyle, values, and norms derived from factors like income and education, often inform consumer behavior.

REFERENCE GROUPS

  • Groups influencing an individual's opinions and actions regarding purchases, especially noticeable in group settings (e.g., parties).

SITUATIONAL DETERMINANTS

  • Specific purchasing situations can influence consumer perceptions and behaviors. Tailored messaging can enhance the effectiveness of advertising.

EXERCISE: ADVERTISING APPEALS

  • Emotional appeals connect with consumers by invoking certain feelings (joy, pride), contrasting with rational appeals emphasizing product attributes (quality, value).

  • Marketer's choice of appeal may vary depending on target demographics (age, gender) and campaign objectives.