Week_4_Customer_behaviour_-_session_slides

Characteristics Affecting Consumer Behaviour

  • Cultural Factors

    • Culture: Set of basic values, perceptions, wants, and behaviors.

    • Subculture: Group with shared value systems based on life experiences.

    • Social Class: Permanent divisions in society sharing similar values and interests.

  • Social Factors

    • Reference Groups: Groups that influence attitudes/behaviors.

    • Family: Primary consumer buying organization.

    • Roles and Status: Position within groups influences purchasing.

  • Personal Factors

    • Occupation: Impacts buying power and preferences.

    • Age and Life Cycle Stage: Needs change over time.

    • Economic Situation: Financial status affects buying behavior.

  • Psychological Factors

    • Motivation: Drives consumer behavior (e.g. Maslow's Hierarchy).

    • Perception: Process of organizing and interpreting information.

    • Learning: Change in behavior from experience.

    • Beliefs and Attitudes: Influence purchasing decisions based on evaluations.

The Consumer Decision Process

This process includes several stages that consumers pass through when making a buying decision:

  • Need Recognition: Realization of a need or problem.

  • Information Search: Seeking information to address the need.

  • Evaluation of Alternatives: Comparing various products or brands.

  • Purchase Decision: Final decision on what to buy.

  • Post-Purchase Behavior: Evaluations post-purchase influencing future behavior (satisfaction or dissatisfaction).

Models of Consumer Behavior

  • Stimulus-Response Model: Describes how marketing stimuli (4 Ps: Product, Price, Place, Promotion) influence buyer responses.

  • Buyer’s Black Box: Refers to the internal process of consumers that includes perceptions, motivations, attitudes, and social influences influencing their buying decision.

Psychological Processes Influencing Consumer Behavior

  • Motivation:

    • Driven by needs such as physiological, safety, social, esteem, and self-actualization.

  • Perception:

    • Affected by selective attention, distortion, and retention, shaping how products are viewed in the marketplace.

  • Learning and Attitudes:

    • Learning: Process by which behavior changes based on experiences.

    • Attitudes: Consistent evaluations or feelings toward products.

Cognitive Dissonance

  • The theory that people strive to reduce inconsistencies (dissonance) between thoughts, feelings, and behaviors.

Buying Decision Behavior

  • High Involvement vs. Low Involvement:

    • High involvement requires significant thought and is driven by emotional attachment, while low involvement leads to routine purchases.

  • Purchase Decision Differences:

    • Consumers may experience dissonance post-purchase if they notice better alternatives.

Conclusion

  • Understanding consumer behavior is critical as it integrates insights from psychology, sociology, anthropology, and economics.

  • It aids in understanding needs, delivering relevant product information, designing suitable products, influencing positive perceptions, and identifying behavioral patterns.