Consumer Behavior:

Consumer Behavior - Buyer Decision Process

• Purpose: describe the predictable, repeatable pattern consumers follow; marketers guide and influence this process; ethics are critical to create value for the consumer.
• Steps and marketer responsibilities:
  • ### Need recognition
  • Consumer senses a problem (e.g., empty fridge, old phone) or marketer provokes one with value in mind; avoid manipulation without value; marketers can highlight unmet needs or create awareness of problems a product solves.
  • Ways to provoke need:
    • Out of stock: e.g., running out of coffee or shampoo.
    • Dissatisfaction with competitor: e.g., internet provider is slow, old car frequently breaks down.
    • New product: e.g., latest smartphone model, innovative kitchen gadget.
    • New need (life stage changes: college, homeownership, marriage, etc.): e.g., baby formula for new parents, retirement planning services for empty nesters.
    • Related products (complete set, cross-sell): e.g., buying a printer prompts need for ink, buying a camera prompts need for lenses/accessories.
    • Marketer induced need (unrecognized problems we solutions can address): e.g., creating awareness of cybersecurity risks leading to software purchases, or emphasizing environmental impact leading to eco-friendly product adoption.
  • ### Information search
  • Consumer gathers options from internal (memory) and external (friends, reviews, internet) sources; marketer keeps search tight with a clear value proposition to stand out; ensure product info is easily accessible and compelling.
  • Post-provocation: once need is recognized, information search focuses on value and differentiation; keep data concise; communicate how you create value.
  • ### Evaluation of alternatives
  • Consumer narrows to a short list based on attributes deemed important (price, quality, features); marketer aims for strong positioning to win inclusion in the evoked set by clearly communicating unique benefits.
  • Key concepts:
    • Evoked set: final short list of contenders a consumer evaluates (e.g., Chipotle, Panera, Cava).
    • Positioning: deliberate crafting of a specific place in the customer's mind relative to competition.
  • ### Purchase
  • Consumer makes final decision on product, brand, and vendor; ensure a seamless, easy exchange of value, including convenient payment options and clear delivery processes.
  • ### Post-purchase
  • Consumer experiences product and forms satisfaction/dissatisfaction; minimize cognitive dissonance (buyer's remorse) through positive reinforcement; turn customers into brand ambassadors; tactics include guarantees, warranties, excellent customer service, and reinforcing ads that confirm the wise purchase.

Influences on Why and How We Buy

• Not solely individual choice; several influence layers shape decisions:

  1. Cultural, Subcultural, Microcultural Influences

     • Culture: broad norms, values, and behaviors of a group (e.g., American culture: independence, immediate gratification, optimism).
     • Subculture: regionally or group-defined norms within a culture (e.g., Mid Atlantic vs West Coast vs Northeast; 11 distinct US cultures).
     • Microculture: very local level (e.g., a university or city community like VCU) influencing preferences and buying behavior.
     • Impact: determines wants, timing, channel preferences, and purchasing method (in-person vs contact-free).

  2. Motivation (Maslow’s Hierarchy)

     • Levels (bottom to top):
     • $Physiological$: e.g., food, water, shelter (marketing of basic groceries, utility services, housing).
     • $Safety$: e.g., security, protection, stability (marketing of insurance, home security systems, financial planning, safe vehicles).
     • $Love/Belonging$: e.g., friendship, family, intimacy, community (marketing of social networking apps, dating services, community events, group travel).
     • $Esteem$: e.g., self-respect, achievement, status, recognition (marketing of luxury goods, advanced education, personal development courses, status symbols like high-end cars).
     • $Self-Actualization$: e.g., realizing personal potential, self-fulfillment, peak experiences (marketing of creative arts workshops, challenging travel experiences, advanced skill development, philanthropic opportunities).
     • Marketers move consumers up and down the pyramid to create awareness of needs and drive action; example dynamics:
     • Security concerns shift focus to safety needs (e.g., ADT) and can delay other purchases.
     • Aspirations (e.g., Rosetta Stone) address higher-level needs once basics are satisfied.
     • Purpose: align product messaging with current need level of the target segment.

  3. Psychological Factors

     • Classical conditioning: pair two unrelated stimuli to create a conditioned response (Pavlov’s dog); e.g., using popular music or celebrities in ads to associate positive feelings or desired traits with a brand, leading consumers to feel good about the product when they encounter it.
     • Operant conditioning: rewards (positive reinforcement like loyalty programs, discounts for repeat purchases) and punishments (negative reinforcement like late fees, price increases for non-preferred actions) guide behavior; shapes consumer habits and encourages desired actions.
     • Memory creation techniques:
     • Surprise elements: unexpected ads or product features capture attention and aid recall.
     • Engage multiple senses: e.g., aroma of fresh bread in a bakery, tactile feel of a luxury product, distinctive jingle; smell is strongest for long-term memory.
     • Personal insight: relatable stories or appeals that resonate with a consumer's own experiences or values helps memory embedding via self-relevance.

  4. ### Personal Factors

     • Influencers of buying behavior:
     • Personality and individual differences (color/pattern preferences, risk tolerance, etc.)
     • Profession and work needs shape product requirements
     • Life stage (homeowner, empty nester, new parent) changes buying needs
     • Marketers should understand these factors to tailor messaging and offerings to target segments.

Takeaways

• Mastery comes from linking the buyer decision process with cultural, motivational, psychological, and personal influences.
• Ethical consideration is essential when influencing decisions to deliver real value and avoid manipulation.