Consumer Buying Secrets Revealed

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Consumers Buying Secrets REVEALED!
A Marketer’s Guide For Business
By Paul Tunde Raji (Bsc. Accounting)
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Disclaimer
The author, publisher and distributors never give legal, accounting or medical
advice. The reader must always seek those services from competent
professionals that can review their own particular circumstances.
Not all suggestions will be suitable for everyone or work equally well for
every business. It is up to you to pick strategies for your business with
regard to your own circumstances, experience, resources and goals. The
author, publisher and distributors particularly disclaim any liability, loss, or
risk taken by individuals who directly or indirectly act on the information
contained herein. All readers must accept full responsibility for their use of
this material.
Copyright © 2007 by Paul Tunde Raji -2- http://www.webneur.com/

About this Book and the Author
“Consumer Buying Secrets Revealed!” is about consumer behavior. It was

written for marketers and business students by Paul Tunde Raji. This text will
be a major source of information on consumer behavior for many years to
come because the writer did research online and offline for practical and
theoretical information for six years before writing this book.
This book is timely and outlines many ideas - ideal for your personal library
as a reference tool. It walks the readers around all the roadblocks in
marketing.
Paul Tunde Raji is a Nigerian and holds a

Bachelor of Science Degree in Accounting in
1998. He worked as an Audit Assistant for two
years. Then, he joined an insurance company
as Marketing Executive. This is where his
marketing career started.
He is a Freelance Writer with UVOCORP, an

Academic Writing Assistance Agency based in
the United Kingdom where he assists in
academics, from high school to master degree
level, solving academic problems.
He has “Expert Author” status from Ezinearticles.com
He has a full-time in his e-commerce business.
He is the owner and C.E.O. of http://www.webneur.com/
He is happily married to Racheal Olasunmbo Raji. They are blessed with a

beautiful daughter named “Wisdom” and a lovely son named “Fortune”.

Paul Tunde Raji often understands the problems of others quite easily. He
has a sympathetic nature and is dedicated to helping others. The sick and the
troubled often turn to him for assistance and advice.
He is a broadminded, trustworthy and an earnest person and will do what he

can to persuade people that have taken a wrong turn in life to rehabilitate
themselves.
He is an idealistic person and interested in making the world a better place in

which to live. He believes that we should all help each other.
He will do more than his share in order to achieve co-operation with others.

Contents
Please Read This FIRST! ....................................................................................2
Copyright Notice.........................................................................................................................2
Terms of Use for the Electronic Edition. ..................................................................................2
Disclaimer....................................................................................................................................2
About this Book and the Author........................................................................3
Contents ..............................................................................................................5
Introduction .........................................................................................................8
Consumer Behavior..........................................................................................10
Buying Decision Process .................................................................................13
Commercial Sources ............................................................................................................... 14

Public Sources......................................................................................................................... 14
Nicosia Flow Chart Model of Consumer Behavior .........................................17
Marketing Implications .....................................................................................18
Criticism ............................................................................................................................... 18
Engel, Kollat and Blackwell Complete Model of Buying Behavior ...............19
Post-Purchase Behavior ..................................................................................22
Cognitive Dissonance ......................................................................................23
Coping ...................................................................................................................................... 23
Marketing Response................................................................................................................ 23
Critique of Engel et al Model .............................................................................................. 24
Howard and Sheth Model of Consumer Behavior..........................................25
Endogenous Variables or Hypothetical Construct .............................................................. 27

Critique of this Model .......................................................................................................... 28
Andresen Model of Complex Customer Decision ..........................................29
Critique of the Model ........................................................................................................... 29

Learning Influence on the Consumer .................................................................................... 31

Connectionist Theory .......................................................................................33
Marketing Implication.............................................................................................................. 33
Cognitive Theory...............................................................................................36
Tolman’s Latent Learning Theory.......................................................................................... 37
Attitude in Relation to Consumer Behavior....................................................38
Components of Attitude ...................................................................................40
Functions of Attitude............................................................................................................... 40
Marketing Implication of Attitude in Consumer Behavior .............................42
Factors that Resist Attitude Change ...............................................................44
Attitude and Persuasive Communication .......................................................46
Planning of Persuasive Communication ........................................................49
Factors that Influence Consumer Behavior....................................................50
Primary Group or Membership Group ............................................................52
Family ....................................................................................................................................... 52
Friends and Associates .......................................................................................................... 52
Anticipatory or Aspiratory Group .......................................................................................... 53
Dissociate Group ..................................................................................................................... 53
Role and Status.................................................................................................................... 53
General Implication of Group in Marketing.....................................................55
Economic Factors Effect on Consumer Behavior..........................................57
General Economic Situation ............................................................................58
Income ...............................................................................................................59
Disposable Personal Income.................................................................................................. 59

Discretionary Income .......................................................................................................... 59
Consumers’ Income Expectation ....................................................................61
Credit Facilities .................................................................................................62
Installment Credit .................................................................................................................... 62

Non-Installment Credit ............................................................................................................ 62
Possession of Assets.......................................................................................63
Physical Assets ....................................................................................................................... 63

Financial Assets ...................................................................................................................... 63
Consumerism ....................................................................................................64
Seller’s Rights:..................................................................................................................... 64
Buyer’s Rights: .................................................................................................................... 65
Consumer and Consumer Organizations .......................................................67
Consumer Behavior Online..............................................................................69
What Consumers Are Looking For ........................................................................................ 69
Steps I Follow as a Routine to Improve Sales ................................................73
Recommended Marketing Sources.................................................................................... 75

Introduction
"Learning about a human being is a lifetime's task"

Paul Tunde Raji (Bsc. Accounting) http://www.webneur.com
Dear Friend, the first step is what counts
Welcome and congratulations!
You have just taken a huge, first step towards boosting your sales-potential.
You’ve made it farther than 90% of businessmen ever do. You’ve been
exploring your options and we’ve connected through the power of the
Internet.
To support your informed decision, I have spent countless hours and

hundreds of dollars on research and developing this information product.
And, I simply want to make sure you know that I really appreciate your
purchase.
Thank You!
Sincerely, you are one of life’s few decision-makers and action takers. I
admire those qualities greatly. And, you should know that I intend to do
everything within my power to see that your decision will prove to be the
right decision.
I’ll even go as far as to say: Your decision to purchase this ebook – as far as
having a tremendous increase in sales performance is concerned – is
probably going to be the wisest decision you will EVER make!
Here’s why:
You are about to learn the real secrets to consumers’ “buying behavior” using
this ebook with virtually no additional cost. I will also reveal to you the most
viable place where you could sell any product or service for “hungry and
thirsty” consumers.

And, you should know right off the bat that the information you are about to
read totally delivers on every promise made on my web site. What’s more,
everything you are about to read is not just mere theory. It is hard-won,
tested and proven solution/discovery and theory.

Consumer Behavior
Consumers consist of individuals, households, and corporate bodies that buy

products or services. They are widely varied in the way they react to
products and other stimuli. Each consumer is a decision-making unit who
collects information and uses many dimensions to analyze it. The resulting
decision is the purchase or rejection of a product or service.
The difference in consumers and factors that they consider to make a

purchase decision are important to marketers. Marketers need to understand
the type of stimuli that can yield a favorable response from consumers and
also to identify the factors and interactions that go into decision-making.
The careful study and understanding of consumers requires the marketer to

design an effective marketing plan.
Marketers’ success anchors on the extent to which they understand and

respond perfectly to the behavior of consumers. They are compelled to
search for new ideas, theories and principles from behavioral sciences such
as Anthropology, Sociology, Psychology and Economics.
It has been discovered that consumers involve considerations from these

perspectives when making their purchase decisions. Consumer behavior is
known to be an element of human behavior that deals with how people
interact with his or her environment, particularly in order to purchase and
after purchasing a product or service.
For a marketer to penetrate the hearts of many consumers and to let them
react positively to his products or service, understanding the behavior of a
consumer is inevitable. The reason is because the knowledge acquired about
the consumers has an important role to play for the marketers’ success.
In modern business, every organization needs to learn buyer’s behavior. The

outcome of the study helps the company to know WHO the consumers are,
Copyright © 2007 by Paul Tunde Raji - 10 - http://www.webneur.com/

WHAT, WHERE, WHEN and WHY they prefer a particular product to other
competing products.
The theme of marketing philosophy is “consumer sovereignty” which states

that consumer is king and all the activities performed by an organization
should be channeled towards satisfying the needs and wants of the
consumers while at the same time trying to achieve organizational objectives
which is to make profit.
Cundiff, Still and Govoni (1973) supports this analogy by saying what the
result management is looking for in managing their departments. This is not
only to satisfy consumers’ needs, wants and desires, but to also facilitate
achievement of company goals.
In an economy with freedom of choice, the principle of “consumer

Sovereignty” dictates that the consumer ultimately determines a firm’s
continued existence and performance. Consumer behavior will determine the
fate of the enterprise because for an efficient and effective allocation of
resources to be achieved, those who produce products and services cannot
passively place their wares before the public. There is an additional and
dynamic function to be performed which is their reason for seeking to satisfy
the needs and desires of those who purchases and consumes these products
and services.
The essence of marketing therefore is to analyze the process through which a

group of people make and carry out buying decisions, identify the buyers and
buying decision process.
Although many buying decisions involve only one decision maker other
decisions may involve several participants who play such role as initiator,
influencer, decider, buyer and user. The marketer’s job is to identify the
other buying participant, their buying criteria, and their level of influence on
the buyer.

A consumer's experience has been widened by his or her exposure to

competing products, rapid changes in technology which result in regular
availability of innovative products, socio- economic and other environmental
changes, all these conditions in which consumer are subjected to, make them
to be complex and more unpredictable to deal with.

The Buying Decision Process
When making a decision to buy a product from many competing products, a

consumer unknowingly passes through a few stages of the decision process.
There are five stages and each stage motivates the buyer to purchase. Only
one stage is concerned with actual purchasing. Sometimes, the consumer
does not pass through all the five stages before purchasing a product.
Need Arousal is the first stage of a buying decision process. The need for a
given product is activated by internal and external stimuli. The marketer
creates awareness for his product through sales promotion and advertising.
The external stimuli helps to arouse the consumer’s need for the product
while internally, physiological imbalance such as hunger, thirst, warmth, etc.
which are primarily unlearned makes a person recognize a need. The
consumer recognizes a significant difference in his perceived desire and
actual position. He thereafter responds by searching for a product that can
satisfy the identified need.
The consumer having sufficiently been motivated to satisfy a need searches

for information about every product brand that can perfectly match the need.
If a suitable product is available for an urgently felt need, the consumer
quickly purchases the product. However, in most cases, consumers do not
purchase products immediately the products are brought to their awareness.
At this stage, consumers look for further information, and the intensity and
duration of this depends on their past experience together with the
importance of the product.
Different products are identified through intensive and passive searches.

Passive search involves the consumer reading information about the product
on the Internet or in newspapers, magazines and other published materials.
Intensive, or heightened search is where the consumer actively searches for

information from many sources, while moving from one place to another.
These sources include personal sources such as family, friends, neighbors,

acquaintances, associates and members of his social group whose opinions

he trusts and respects.
Commercial Sources
The consumer pays close attention to commercial messages through

advertising, packaging, talking to salespeople, sales promotion and point of
purchase displays.
Public Sources
These provide messages from mass media publicity, government reports,

news and product-testing companies.
These messages are objective, reliable and factual. The motivated consumer
tries to get a feel for the product through his senses. He tastes a sample,
tests the product during a demonstration by the salesperson; this can be
achieved by having a trial or testing period, where he can handle the product
to judge its suitability. All these sources present the consumer with a large
number of alternative products and information on the features of the
product, like packaging, operating manual, pricing, warranty, etc. The
product has features or characteristics that attracts consumers/customers to
buying or using it.
Empirical research confirmed that consumers use their cognition

consciousness and rational judgment to examine products before making
their purchases.
They evaluate by comparing products in order to make a choice. Evaluation

takes the following dimensions or guiding rules: Those features of interest to
the consumers are listed for further analysis. These consist of performance,
taste, color, physical appearance, packaging, range, price etc. Consumers are
asked to list what they prefer in the product. The preferred attributes of
competing products is used to attach weight or priority or rank the attributes
to facilitate ranking, the consumer uses brand belief or image of each brand

(if any) to compare one product with other products. This evaluation
establishes the position of each product in relation to the important
attributes.
Other evaluation criteria and techniques use quantitative and qualitative

models to apply objectivity. They consist of dominance, conjunctive,
disjunctive, lexicographic, expectancy and ideal-product, compensatory and
determinant models.
In the Dominance model, the customer lists all his preferred attributes and
rates all available alternative products with the attribute; the product with
superiority in many attributes over others is retained while the inferior
quality brands are dropped.
In the Conjunctive model, all products are classified into two groups
(acceptable and unacceptable) based on the minimum attributes that a
product must meet. Unacceptable products are those that fall short of
minimum specification and are eliminated from further consideration.
The disjunctive model only sets in if the consumer only has to pick from
products whose attributes exceed the specified minimum attributes.
In the Lexicographic model, a single dominant attribute which is common to

all products is used to rank them.
The product with the highest score becomes the consumer's choice. If two or
more products have the same score, the consumer uses the next best
attribute to compare each product with others. This process is repeated until
a surviving product that has the highest total score is identified while the rest
are eliminated.
The Expectancy model is when the consumer identifies attributes of

importance and assigns a weight that represents degrees of preference to
each attribute. The resultant score is obtained by the aggregate of weights of
each attribute, multiplied by the performance level of the product for each
attribute.

In the Ideal product model, the consumer forms an image of his ideal
product. He lists many attributes that the product must possess. If the
current products do not have the attributes he desires, he selects the one
whose attribute is closer to the ideal product. To capitalize on the opportunity
offered by this model, a marketer can interview consumers to find two or
more ideal attributes of interest and build these into his product.
Under the Compensatory model, also known as Multi-attribute model, the

product chosen is the one that has the overall balance of favored features
across all attributes.
There is also the Determinant Attribute Model, which states that attributes of
importance sometimes do not significantly influence consumers choices
among competitive products whose attributes are similar.
The choice of product may be made because of a less important attribute

that differentiates the product.

Nicosia Flow Chart Model of Consumer Behavior
Using a computer flow-chart system, this model shows the input, processor
and output variables together with their relationships towards reaching a
decision that will solve current and future problems of the consumer. It
assumes that the consumer does not have direct experience with a particular
product.
In addition, there are four main stages of decision present in this model.
Stage One: An advertising message about a firm and its products is

presented to the consumer who is not familiar with the product. The
consumer uses psychological, personality and environmental attributes to
examine it.
He then forms an attitude towards the product.
Stage Two: To avoid making mistakes, the consumer searches for more
information about the advertised product and its competitors. He conducts
product/service comparison, to form a more favorable attitude to a few of the
product/service options offered out of the various available alternatives.
The result of the analysis may or may not be a motivation to the advertised
product.
Stage Three: If the consumer is motivated to prefer one product to all the
others, he makes the final decision to purchase.
Stage Four: The post-purchase experience gathered in the course of using

the product is stored in his memory. This data bank is used to decide
whether or not to buy the same product /service in future. This completes
the circular decision process of the consumer.
By buying the product or not, the result of the decision stage is known
(through the Feedback System) by the firm and the firm’s knowledge about
its consumer’s behavior is also completed.

Marketing Implications
This model is scientific enough to help marketers gain an insight into the
consumer behavior process. By stating what happen at each stage, the firm
can apply the right marketing decision to improve the probability that the
consumer purchases the product/service.
Criticism
The research leading to construction of the model was based on a narrow
scope of advertising and how consumers accept the new product. The
research limitations and variables considered were not stated.
This makes it difficult for other interested researchers to find where they can
support and improve the model through further research. The relationship
between the stages is not as direct as the explanation states. In addition, the
descriptions and explanation accompanying the model are too brief.
How consumers form and sustain attitudes to a new product requires further
research and explanation.

Engel, Kollat and Blackwell

Complete Model of Buying Behavior
This model is an improvement on the Black box model. It contains such

elements as Information input and the Processing unit (which has product
evaluation, general motivation and personal inputs). All these elements
interact and move the consumer across five decision-making stages.
It explains what happen to the inputs in the evaluation process and the type
of outputs. The black box model that contains the invisible intervening
variable, becomes the CENTRAL CONTROL UNIT (CCU). It serves as the
consumer’s psychological structure. It contains memory and manner of
thinking and behavioral pattern, personality variables, past information of
direct experience and current information.
Personality features are the stable behavior pattern of an individual that he

perceives as helpful in satisfying his needs. They are called MOTIVES.
The means of reacting to situation are called RESPONSE TRAITS. They vary
among individuals.
Both motives and traits combine in function to form a general psychological

reaction of a person. They resist change from outside influences.
Experience or past information is, consciously or unconsciously, retained in

the central control unit to make the person respond consistently to stimuli.
The consumer develops product-related values and attitudes from personality
and experience.
This gives shape to their behavior and makes the consumer form a habit for
evaluating products by choosing one product out of many alternatives.

Detailed Analysis of the Model
Messages relating to the firm and a product/service are transferred to

consumers through their sense organs and are stored in the central control.
After processing it, the required response to the message is passed to the
awareness level of the consumer.
He becomes alert due to feelings of discomfort that he suffers through the

sensory receptors. The need is strengthened by a drive to find the best
solution to his need.
In his effort to satisfy the needs with the right product/service, he is exposed
to many stimuli about other products.
Through a process of product/service comparison, the consumer restricts his

attention to the product that is not misleadingly promoted.
Information about the selected product is used in the next stage.
If the consumer has the financial means, he recognizes the need. He knows
that his desired condition is not yet reached. This feeling arouses a response
to satisfy the drive caused by motives and needs.
Where the consumer is unaware of his needs, the firm uses sales promotions,
advertisements, a salesperson, packaging, etc., to trigger or create
awareness. This stage is the starting point for a lengthy buying process.
Where they have little or no information on competing product/service, the
consumer may have to identify many products/services and research their
prices, suppliers, features, operating instruments (manual), packaging,
product or services etc.
He uses internal or passive methods, such as reading, review and recalling

information stored in memory that relates to the specific type of
product/service.

Externally, he looks for information from his reference group, marketing

firms and salespersons connected with the product/service.
The search will present him with many possible products/services from which
he locates a group of products from which choices can be made.
The products/services are examined and compared with one another in order
to choose the best one.
The consumer compares each product on a set of criteria used for evaluating
all the product/services. The criteria may include price, features,
performance, color and packaging.
Each product/service is also rated from the reference group and

psychological viewpoints. As products have many attributes, only those
falling within the consumer’s specifications are considered.
At the end, he forms product/service image (or preference, judgment) for

some alternatives (choice set). He can buy any product or service from the
set.
At this stage, the consumer selects the best or preferred product from the
choice set. The decision may be influenced again by the positive/negative
attitudes of other people and the consumer’s willingness to comply with the
group.
Other situational factors, such as unanticipated occurrence like sickness, loss

of job, perceived risks etc., may force the consumer to modify, postpone or
avoid purchase of the product.
If these obstructions are not present, the consumers purchase the product
immediately the decision is made.

Post-Purchase Behavior
The consumer asks himself after purchasing a product, “WAS MY DECISION

GOOD?” He compares his own expectations of the product with the actual
(perceived) performance of the product.
If the actual performance is lower than the expected performance, frustration

(cognitive dissonance) sets in.
If the product’s performance equates or exceeds the consumer’s

expectations, there is a high probability for repeat purchase and spreading of
good information about the product. The criteria used for evaluating products
are applied for analysis of post-purchase perception.
To maintain stable positive mental attitudes about the products, the

consumer requires assurance from the producer in the form of after-sales
services through advertising, salesperson contact, repair, availability,
warranty, maintenance etc.
From the buying process explained above, regardless of the type of buying
decision, the buyer has one stage that reflects in the actual purchase. The
decision to buy can stop at any stage. Not every instance of buying behavior
passes through all the five stages.
After need-recognition, the Central Control Unit passes an instruction (go,

stop) to set the next action of the consumer. And, as the buyer proceeds
towards their decision, each action is stored in memory. This helps him to
learn from what he does; the result of past experience is retained for future
decisions.
This decision-making model transcends routine response behavior to

extensive problem-solving behavior. However, the model allows varying
buying situations.

Cognitive Dissonance
This is the post- (perceived) bad-purchase experience of the consumer of a

product and how he copes with it.
It occurs when the buyer examines the performance of the product each time
he uses it to know if the actual experience is in line with his desired
expectation. This frustration (regret, annoyance) is heightened when the
product is a durable type, which is usually expensive, the negative feature of
the chosen product/service is many and/or the product itself does not
perform satisfactorily. The rejected alternative becomes more attractive.
Coping
The consumer reacts in many ways such as:
• He feels like returning the product to the seller
• He sells the product and buys another product
• He looks for favorable information (reassurance) about his purchase.
• He avoids information that favors the rejected product
• He changes his attitude/belief to be consistent with the favorable

behavior.
Marketing Response
Post-purchase follow-up of the consumer is necessary to provide after-sales

services. These include installation, product availability, maintenance and
repair, use of warranty, availability of spare parts etc., depending on the
nature of the product. Others include a salesperson's visit to monitor the
consumer’s experience, sale promotion, and use of reminder advertisements
to boost the confidence of user.

Critique of Engel et al Model

It shows the various behavioral influences that occur in the box and how they
interact from need arousal through need recognition to post-purchase
behavior.
Marketers have a lesson to learn about these variables and how they recur in
a way that consumers can prefer their products or services.
Examination of post-purchase behavior allows marketers to have a

permanent business relationship with every consumer. The model implicitly
points out the importance of this stage for repeat purchase/patronage.
Lastly, it affords companies the opportunity to enrich their marketing
activities with a message that consumers need during decision-making.

Howard and Sheth Model of Consumer Behavior
It presents the decision-making process in a most elaborate manner. The

means of blending the inputs with intervening variables and the resultant
outputs are indicated in the four components of the model.
The elements to be explained include stimuli input, intervening variable

available (which contain endogenous and exogenous variables) and output
response.
Input Stimuli: Information from the business firm and the social
environment is passed to the consumer. It contains indicative messages
about the product features and symbolic information from other sources like
salesmen, mass media and reference groups.
Intervening Variables: These are used to analyze the input and consist of
seven exogenous variables, which combine with perception and learning in
the endogenous variables.
Exogenous variables: There are seven. They are the external parts of the
hypothetical construct.
1. Importance of Purchase: The consumer measures the perceived

role of each product/service. If a specific product/service is more
important than the rest, it limits the information search by ignoring
other products/services.
2. Time Pressures: The degree of urgency for a product may not allow
the consumer to carefully analyze other products features. He
hurriedly pays close attention to only one or two products.
3. Financial Status: The quality and quantity of the product that a

consumer focuses on is affected by his purchasing power. Many
products are evaluated according to the consumer’s income, income

expectation, job stability, credit facilities etc. Where he has a strong

financial base, many more products are evaluated.
4. Personality Factors: Traits like confidence, authority, self-esteem

and self-concept, etc., assists in making the choice. They make the
consumer suppress information from other sources and uses his
discretion in choosing the right product/service.
5. Organization: For an organizational buyer, the influence of other

persons involved in the decision, particularly their status, power and
authority are considered by the actual buyer. In addition, he reflects
the organization’s buying policies and channels of operation in his
buying decision.
6. Social Class: The consumer tries to conform to the values and norms
of the class of people he belongs to, in order to enjoy their praise and
acceptance of the product.
7. Culture: Being the product of a culture, some of the items the

consumer purchases are a reflection of the inherited patterns of
consumption. He tends to prefer products that the culture has
ingrained into his personality from his childhood.

Endogenous Variables or Hypothetical Construct
It contains basically psychological variables: perception and learning. These

unseen variables work upon the product information input and the outcome
of it is expressed as either a purchase or no purchase.
From the perception aspect, the consumer is made to consider information

that relates to his past experience, personality and need, for a product
category. He develops sensitivity by applying perceptual vigilance and
perceptual defense to a given product.
If the product is inconsistent with the consumer's beliefs, the consumer may
distort its information to stop it changing his long-standing beliefs. This is
called perceptual bias.
He goes through a search for information on a product that is urgently

needed. The learning aspect of the construct contains specific and non-
specific motives, product-potential of the evoked set, decision mediators, and
predisposition towards product, inhibitors, and satisfaction with the purchase
of a product.
Specific motives relate to a product’s features such as safety, durability,

reliability etc., while non-specific motives may be power, status and prestige.
The consumer uses the decision mediators (a set of rules) to rank other
alternative products in the evoked set.
He uses past learning, experience and external information to compare the

satisfaction that each product can give (brand differentiation) with other
products. The result of these motives, evoked set and decision mediators
analysis manifest in the consumer, forming as attitude or predisposition
towards a specific product.
Rather than actualizing the predisposition in terms of purchase, the

consumer is delayed by Inhibitors (constraint forces). Inhibitors are
environmental forces that modify behavior. They include a product’s price,

availability, time pressure, financial status etc. If they persist, the buyer’s
attitude can be changed.
Output Variables: After passing through the information input and

processing in the previous stages, the consumer’s response appears in five
ways. He pays more attention to a set of products and has a better
comprehension (reservoir of knowledge) about a product to which he then
forms an attitude, based on its need-satisfying strength.
Critique of this Model

This model is the most favored by researchers as it presents the most
comprehensive steps that a consumer uses to make a decision.
It urges marketers to analyze their strategies in line with consumers’ buying

processes and influences in order to get their product /service sold. All the
major influences, such as economic, psychological and socio-cultural
influences, are integrated in the model.
Nevertheless, further research is needed to replicate and improve on the

model.

Andresen Model of Complex Customer Decision
This model uses attitude formation and attitude change, borrowed from social
psychology, to explain consumer behavior. Sources of information about a
product and the product itself (features, availability etc.,) pass through a
perpetual barrier in the mind of the consumer. The buying cycle contains four
stages: input, perception and filtration, disposition changes and outcome.
It is assumed that the consumer selectively perceives and distorts product

information in a way that is different from the original messages from the
company. By drawing information from this reference group, personality
needs and their attitude about complimentary products, the consumer filters
and perceives the product messages.
Hence, his feelings, beliefs and disposition about the product are adjusted.
He may thereafter develop an intention to buy by searching for further
information or stop any further action on the product. Positive intention to
buy may be negative information from other people about the product and its
competitors.
If the obstacles are cleared, he purchases the item and his experience after
purchase is stored for future purchase decisions.
Critique of the Model

Andresen discovered two marketing strategies that affect the buyer’s
attitude, namely: market segmentation and product differentiation.
Market segmentation fits the product into the attitude and behavior of
consumers, so that a positive attitude is formed towards the product.
Product differentiation makes the consumers change their attitude by

being forced to accept or consume the existing product. To make consumers
develop a positive attitude and to effect a change of attitude to a product,
the marketer should use acceptable channels of communication to provide
good product information.

Any assumption that a positive attitude can directly lead to purchase

behavior is condemned. This is because the attitude/behavior relationship is
too complex to be given simplistic interpretation, and empirical evidence to
support the proposition is absent.
The issue of whether attitude has a direct influence on behavior is

controversial and social psychologists are still working towards
verifying the claim.

Learning Influence on the Consumer
Behavior: Learning is an intervening variable between input stimuli and

output. It is not visible; rather its result is what helps us to know whether or
not a person has learned something. It is defined as a relatively permanent
change in behavior of a person that is caused by practice or experience. It
deals with the acquisition of knowledge by deliberately performing a manual
or mechanical action, or by memorizing some theories.
From this definition, certain terms are clarified to avoid ambiguity. Learning
makes a person experience an enduring change in behavior. Temporary
change caused by tiredness or the intake of alcohol or drugs is not included.
The change in behavior is achieved by practice or experience. Therefore,
unconscious change in behavior due to illness, growth etc., is not part of
learning. The change in behavior occurs to the feelings, emotion and
personality of the person.
Learning can be positive or negative.
Learning has stages that an individual passes through. Each stage has a
marketing implication. Product message and information from their social
environment arouses the need for a product by the consumer. The
recognition on reaching a threshold level gives rise to a drive. Based on this,
the person, after some evaluation and research, purchases the product that
he anticipates will satisfy his need. If the product rewards him by performing
satisfactorily, the person stores and retains his post-purchase experience.
The data is recalled or remembered and used in making subsequent
purchases.
Hence, if an advertised product performs satisfactorily for the consumer, he

develops a habit or product loyalty to ensure a repeat purchase whenever the
same need arises in the future.
After the first trial, the person experiences a stable change in his attitude and
response to the same product. He forms a firm attitude, which finally makes

his purchase decision towards the product to become somewhat automatic or

routine. The sum of all these changes of a person’s behavior from the state
of unawareness and reluctance to buy a product, through product
identification and automatic response to the product is known as learning.
Two broad theories of learning, which were borrowed from the study of
animals through experiments, are relevant in marketing. They include
connectionist and cognitive theories.

Connectionist Theory
This asserts that a consumer can be made to change behavior by

conditioning him over time. This requires presenting the person with stimuli
about a product that will make him respond. If the product is rewarding, the
consumer will subsequently buy the product.
This method of learning is also called Stimulus – response or Association

theory. Over time, the consumer responds to a product because he has
learned about it. If he has not used it, he collects suitable information from
his reference group to decide to make the purchase.
Reinforcement (satisfaction) and other marketing stimuli (advertisement,

sales promotion) can make the consumer repeatedly purchase the same
product. The theory followed the classical conditioning and operant
conditioning of Ivan Pavlov of Russia and B.F Skinner of the U.S.A.
Ivan Pavlov’s classical conditioning experimented on dogs by pairing their

food supply with the ringing of a bell. After so many repeated instances,
associating the food and the bell, the food was removed and the dog
responded to the bell alone. Thus, the initial unconditioned response of the
dog and the bell was turned to conditioned response.
B. F. Skinner’s Operant, or Instrumental, conditioning was done by

putting a cat in a box. The cat, in its bid to escape pressed a spring
that let it escape or released food to it. By applying this continuously,
the cat distinguished the spring from other levers and it repeatedly
pressed the right spring. The reinforcement led to slower learning.
Marketing Implication
With these theories, psychologists have performed similar experiments and

the results were the same. In marketing, consumers have been used to test
the theory and the following implications are derived.

An intensive advertisement campaign can build up a strong association

between the product and its function. This makes the consumer want to try
the product. If the product meets the buyer’s expectation, he tends to buy it
again in future.
This is primary reinforcement (reward).
Secondary reward, in the form of sales promotion such as price reduction,

seasonal greeting, prizes and praise for purchase of a product can let the
consumer, who has almost forgotten the product (extinction), continue to
buy the product (spontaneous recovery).
Occasional reminder advertisement at off-season may almost level the sales

value over time. It narrows the difference in income from sales between
peak-season and off-season. Non-stop presentation of information about a
product makes the consumer quickly discriminate the product from others in
the market.
In addition, good positioning of a product through a unique price selling point

can assist in product discrimination.
Product generalization can occur. If a product performs well, the consumer

may pass a general judgment on other products provided by the same
company or persons. For example, good judgment about King's vegetable oil
that has been used is passed to King's Toothpaste, King's Toilet soap and
King's Scouring Powder, which are yet to be used. By branding its product,
the company can encourage brand recognition after the first trial by the
consumer.
For example, if the word panadol is not written on the product, many people
will not buy it because they believe that, “it does not have the same quality
as the one that carries the word p-a-n-a-d-o-l”.
Consumers can be encouraged to have loyalty to the product only if their

response is reinforced frequently, or at regular intervals, through sales
promotion programs. Learning is effectively achieved if the thing to be

learned is presented in a familiar environmental setting, such as a good demonstration

and presentation.

Cognitive Theory
This theory views learning as a process of restructuring a person’s cognition

(knowledge) with regards to a specific problem. The person uses distinctive
and systematic reasoning and intellectual activity to solve the problem.
A person faced with a problem collects information deliberately (planned) or

by accident (trial and error). He assimilates the information to form an
experience (direct or indirect) and attitude towards the object. The stored
information is recalled to solve a given problem and subsequent ones.
This makes man a problem solver. Wolfgang Kohler’s insight learning belongs
to this cognitive theory. He used a chimpanzee to solve a problem. The
animal was put in a cage with pieces of wood that could be fitted to become
long. Outside the cage were bananas which were beyond the reach of the
animal. After many trials, the animal succeeded in fitting the pieces of wood
and used it to draw the bananas into the cage. The solution was suddenly
discovered as if a light was turned on in the darkness.
Insight depends on the arrangement of a problem situation for which the

solution comes from organizing forces of perception. Once a solution occurs
through insight, it can be promptly repeated. The solution can be applied in
new situations.
Therefore, the solution to the problem does not involve learning of a specific
set of conditioned associations but rather, forming of a cognitive relationship
between a means and an end.

Tolman’s Latent Learning Theory
This is also a form of cognitive theory. It shows that learning goes on without
the presence of reward but, when good reward appears, previous information
is used to enhance it.
He put a rat in a puzzle box. While trying to escape through the complex
routes, the rat developed a mental picture (cognitive map) of the layout,
which led to its escape. The Reward (escape) and Punishment
(imprisonment) experience served to convey information that assisted the rat
to improve its escape in subsequent attempts.
Tolman transferred the findings to human beings by stating that an individual

may form many kinds of cognitions about the way the world is structured. An
individual finds out how goals can be achieved and relationships between
things.
For an individual to respond adaptively to new situations to solve problems,

they may combine much cognition from past experience. A consumer can
buy a never-used item by making use of his intelligence to analyze the
product.
A consumer is a rational problem-solver who uses detailed evaluation of

many factors; economic, sociological and psychological to make each
purchase decision.
Trial and error is used to purchase unbranded products, which may then be
purchased repeatedly if they are satisfactory.
If the consumer has never used a product, he can collect information from
other sources to form an evoked set.
Where enough information is not available, he imitates his reference group.

Repetition of an advertisement makes the consumer become familiar with
and perhaps develop a preference for the product.

Attitude in Relation to Consumer Behavior
Attitude is a person’s feelings about an object or person. It is their learned

readiness to respond in a stable (favorable or unfavorable) manner to a given
object.
A person develops their attitudes through past experience. That can be direct
or indirect and are enhanced by physical and social cues in the environment.
Once it is formed, the person directs his attitude to the object or person and
this influences his perception.
It is enduring in nature and guides the person’s response to similar objects or

persons that confront him. If the object is a product, his purchase behavior is
influenced by the attitude. The consumer uses his present or past experience
about a product to form an attitude towards it in future.
But, he experiences change in the attitude as he grows older and faces

higher responsibility. This makes products that were initially rejected to be
sought after. For example, a young boy who likes pop and disco music can
later prefer traditional music, as he grows older. A spendthrift bachelor
gradually learns to save money to meet additional obligations as his
responsibility increases after marriage.
Favorable and unfavorable attitudes to products or the company develops

gradually and selectively according to the consumer’s need, information
exposure, social group and environment.
Input from reliable sources creates a favorable attitude. Information from

people and credible mass media is judged reliable while some is suspected. If
the person trusts the source, he forms a positive attitude, according to the
nature of the information.
In this regard, a marketer has to consider the influence of the source of

information available to consumers. He needs to identify and use such
reliable sources in presenting his product message. Other relevant sources,

such as window displays of a product, recommendations from people etc.,

create favorable attitudes towards the product.
The consumer is indirectly influenced by the beliefs and norms of his

reference group. However, he selects only those aspects that are compatible
with his own beliefs. A large portion of attitude is formed from childhood
within his family setting. He learns the patterns of behavior toward the
society, sex, money, religion, marriage, type of consumption etc.
In adulthood, his aspiration groups gradually change the consumer’s attitude.

He sheds some childhood attitudes and picks those from his aspiration group
in order to secure their approval. Group information in attitude formation and
attitude change is most effective where the consumer lacks adequate
information and he is uncertain how to identify the right product.
When a person has unsatisfied needs, a drive emerges which directs attitude
towards a product that can satisfy such needs.
The resultant attitude helps to simplify his response to an advertised product.

If the needs are fully satisfied by the product, he forms a good attitude to it
and responds quickly to the same product in future. A marketing-oriented
company can elicit favorable attitudes from its consumers by building a good
corporate image, a suitable marketing mix and consumer-oriented service
that satisfy consumers physical and psychological needs.
Acquisition of new knowledge (education) arouses a new attitude to an

object. The person’s orientation to life changes as a result of advanced
knowledge and interaction with other educated people. Attitude formation
occurs objectively in consumers, based on their educational exposure. For
this reason, they read all available messages about the product to form an
attitude that may be positive or negative.

Components of Attitude
Attitude has three inter-related elements namely cognitive, affection and

reaction.
Cognitive: is the belief or knowledge about the product. It is acquired by

obtaining information from many sources. The belief is formed towards
known things or product after obtaining this detailed information.
Affection: feeling of like or dislike for the product aroused from traits,
motives, social norms etc. It is an emotional variable emanating from the
mind of the consumer.
Reaction: the person is pressed to react in some ways towards the

advertised product. This element makes the person develop a favorable
attitude that may lead to the purchase of a product.
However, having a favorable attitude does not lead to automatic purchase as

other factors may inhibit the consumer’s decision e.g. finance. These three
components are consistently inter-related. Each has a level of appeal to the
consumer that occupies any point between a very favorable and very
unfavorable scale. A positive attitude makes a consumer react favorably to
an advertised product.
Functions of Attitude
Attitude directs the consumer towards products that satisfy his needs and
away from unsatisfactory ones. The person can defend his integrity, prestige
and ego by having reasons to support his feelings.
Possession of adequate information by the consumer arms him with sufficient

data to defend him and maintain his ego (self-image). The consumer forms
values or beliefs about the product. He uses the value to achieve satisfaction,
or express his feeling in the form of opinion towards the product. The
cognitive, or knowledge, aspect of attitudes makes the consumer give

meaning to the product. This experience is organized and consistent for the
product over time.

Marketing Implication of Attitude in Consumer Behavior
Attitude helps a marketer to measure the effect of advertising on behavior.

Public opinions about social or political issues are known through the attitude
of people. People with a positive attitude tend to react favorably to an
advertised product. If a consumer has a negative attitude towards an aspect
of the firm, it may affect his buying behavior for the company’s product. The
consumer’s attitude towards the firm and/or its product can make or break
the marketing programs of the firm.
A consumer may experience a change of attitude as the factors ( social,

cultural and personality) that help to form the attitude change.
Nevertheless, the self-concept element of personality may slow down change

of attitude. Positive change occurs when an existing attitude and beliefs are
in context with self-concept and vice-versa.
Marketers have to ensure that consumers have a favorable attitude at all

times. Attitude change is realizable if old attitudes no longer yield satisfaction
and the person becomes frustrated. His behavior can be modified by learning
or past experience. In addition, improvement in the level of aspiration of the
person can effect the change.
Mass media can help in promoting new ways for solving problems or
satisfying needs. If the person is convinced that he can get satisfaction only
by revising an existing attitude, he tends to change. An unpleasant
experience with a product, or anticipation of harmful consequences, can
make the consumer rethink and review his attitude. When punishment or
fear is attached, a course of action that will save a consumer from
undesirable results of the person is relieved of any need to conform with
present attitudes.
Here, the punishment is shown and the solution to the problem is presented,
so that the consumers see good reason to change.

For example, by showing HIV patients and presenting a gold circle condom as
a means of avoiding that disease, the consumer is encouraged to have a
favorable attitude to the product.
Attaching a reward to the purchase of your product can make the reward-
minded consumer try a product. Sales promotion is relevant in this sense.
The marketer can identify the reference group to which his consumer belongs
and get opinion leaders to consume the product. This will have the effect of
attracting the purchase by other members.

Factors that Resist Attitude Change
A long-held attitude tends to resist change, as it has become part of the

consumer’s patterns of inner adjustment to the product. A high degree of
likes or dislike for a product take time to be altered in the mind of the
consumer. Complex attitudes can more easily be made to adjust to a point of
agreement than a simple attitude. It is possible to break down the complexity
for the person to appreciate his problem.
When many inter-related attitudes have been ingrained into a person’s value
system, they are more difficult to change than an isolated attitude towards a
product. Attitudes that are consistent tend to be stable and a marketer will
find difficulty in changing it.
The personal factors from intelligence, self-concept, etc., are more durable
and resistant to attitude change. A person that belongs to a group and
largely depends on the cohesive group norms, does not easily accept change
unless it is compatible with changes in the group’s norms.
The communicator, the message and the audience affect whether and to
what extent, attitude is changed. The personality of the communicator used
in an advertisement should be acceptable to the consumers. He can be more
relevant by being involved in a profession relating to the product type. For
example, the following personalities positively influence the attitude of
consumers of the product in their professions; Ronaldo (sport kits), Model
(dresses), Michael Jackson (musical equipment). If the wrong person is used,
the consumers attitudes will remain unchanged.
In addition, from the interaction with other people, oral communication

among members that pass credible and reliable information to the consumer.
It engenders a positive attitude and vice-versa. If the content of the message

is logically presented to give incentive, the reasonable argument makes the
audience (consumers) accept it.

Positive appeals suggest rewards to be gained by responding to the message

and a negative message about possible punishment from consuming the
product can each lead to attitude change.
This way, the warning of Federal Ministry of Health to cigarette smokers

about the consequences of drug consumption may make the consumers form
a new attitude. Remember the words “drug kills”, “cigarette smoking is
dangerous to your health”. The presentation should relate to social and
cultural factors influencing the consumers.
Presentation of persuasive information through popular media may lead to a

positive change of attitude.

Attitude and Persuasive Communication
Some attitudes make a consumer develop an interest in a product. Marketers

have an obligation to use all suitable communication methods to make
consumers form good attitudes toward their products.
All the elements of the promotion mix are involved in achieving this goal.
Proper planning and implementation of promotional campaigns result in the
building of goodwill and laundering of any existing poor image. Use of
information stimuli can soon make employees and the public have good
attitudes and express favorable opinions about the company and its product.
Through well-conceived marketing communication, old negative attitudes can

be changed to favor the firm and its products. This communication may
include anything from local media, such as the use of trumpet, talking drum,
horns, metal gongs etc., up to the modern print and electronic media.
Modern communication media are the most suitable means of penetrating

the heart and breaking down the attitude barrier of consumers. They use soft
selling techniques through color, personalities, power of reasoning, attractive
phrases or words and other pleasing appeal that draws the consumers'
attention.
However, traditional communication is sometimes combined with the modern

type to reflect the particular environment of consumers. The following
promotion tools are found to be effective in arousing positive mental
attitudes and changing the negative attitudes of consumers.
Electronic media such as radio, television, cinema and print media which
include newspapers, journals, billboards, magazine, periodicals, posters and
other published material serve as good and reliable sources of information for
the consumer. The NBC and its international branches profit from Coca Cola®
due to its ever-changing advertisements. Different appeals – dogmatism, and
emotionalism is applied to effect change of attitudes. By interacting with

relevant public, and implementing social and economic projects, the firm
creates a good public image and, indirectly, a positive attitude of consumers
toward its product. Many companies register their names and products
permanently in the favorable mind of the consumers due to their display of
social responsibility.
The firms’ salespeople attract the interest and change the attitudes of
consumers through good presentation, handling of consumers’ complaints,
courtesy, rapport after sales services and other inter-personal
communication.
Competent and well-trained salespersons add weight to attitude change of

consumers. Marketers have to train salespersons and ensure that they
demonstrate their knowledge in the field. The way products are displayed
inside and outside the seller's store can appeal to or repel consumers.
Merchandising uses many techniques to make products attractive and create

impulse decisions in the consumers’ minds. Use of backing group music,
displaying posters, a good arrangement of products on the shelves and
positioning of goods near the point of purchase can motivate consumers.
The attractive design, color and reusability of packages of a product can lead
to the formation of positive attitudes. Marketing can enhance packaging by
employing the service of competent product designers and motivating the
Research and Development Staff.
New package designs of automobile, electronic and other technical products

serve as sources of attitude change. Companies have to mix these
promotional elements in the proportion that can lead to attainment of their
marketing and overall goals.
Though the cost can be enormous, management have to strike a balance in

their attempt to use more than one element. Success of persuasive
communication anchors or depends on the manner in which it is planned and
executed by the firm.

The following process shows the technique of the communication program.

Planning of Persuasive Communication
Define the target market i.e. the group of consumers for which the
communication is designed.
Observe, study and understand the consumers’ purchase decisions about the
product.
Set the type and scope of information that is suitable to the target market
and how to appeal to them.
State the objectives of the communication against which the purchase can be
compared, to determine its efficiency and effectiveness.
Design the promotion elements to use and assign the task to each relevant
area.
Draw the total amount of money (budget) needed to implement all

the communication elements. Implement the program at the same
time to feel the impact on consumers’ attitudes.

Factors that Influence Consumer Behavior
A comprehensive approach to buying behavior acknowledges that man is a

complex creature and an ardent information processor. Any explanation of
man’s economic activities which does not take note of his psychological
makeup, the society in which he lives and the cultural background that
shapes his orientation towards life, is likely to cause bad business decisions
being taken by the marketer.
It is necessary to understand these facts so that we can appreciate the

decision-making pattern of the consumer and his or her behavior in the
target market. Some of these influences on the consumer include:
Cultural Factors: The most fundamental influence on consumer behavior

can be the culture in which he lives or had grown up in. Thus, the products
and services that are of high, or pressing interest to an individual in one
culture may be different from that of another culture. The difference in
beliefs, values and norms can account for this difference in need-satisfying
orientation or behavior.
Group is defined in many ways but in this context. It refers to a collection of

people who interact with one another in a manner that each member
influences and is influenced by other members.
Based on this definition, a normal human being is a member of at least one

group. By his nature, man is a social animal whose life history depends on
his interaction with other people. He is influenced directly or indirectly by the
attitudes of the people around him. Therefore, he tries to adapt to the
attitude of some members, while he rejects others.
Before he makes any decision, he thinks first about how others will judge
him.
Reference group is the aggregate of all the groups that an individual

interacts with, either directly or indirectly. It includes primary and secondary

groups. An individual who is a consumer can belong to many groups at a

time. He identifies with and uses the group as a guide to give shape to his
own behavior. They change the behavior and life styles of the consumer by
molding his attitude and self-concept to fit into the group norms. This
influence reflects in the product and brand selection of members.

Primary Group or Membership Group
This form of reference group includes family, friends, neighbors, workmates,

etc. An individual has a regular face-to-face interaction with them and they
can largely affect his behavioral patterns.
Family
Family is the smallest, single group that most affects a person’s behavior.
The consumer was born and bred by the family. As he or she grew up in the
system, he imbibed a lot of features of the family in the form of love, types
of food, personal ambition, self-worth etc.
The habit formed from the interaction becomes part of his lifestyle even
when he lives outside the family. The family is very persuasive by praising,
cajoling, criticizing, suggesting, giving orders etc., to its members.
Each member has a role to play. The wife is dominant in purchasing of items
like food, kitchen utensils, carpet etc. while both husband and wife are
involved in the purchase of expensive products like furniture, housing,
entertainment etc.
An experienced marketer has an opportunity to identify the dominant spouse

in the purchase of specific items.
He then uses the marketing program to make a positive impact on the

influencer or decider in the purchase of his product or service.
Friends and Associates
This group includes neighbors, childhood friends, business partners, co-

workers and others in the peer group. They serve as a good source of
information about a product or they certify that a product is socially
acceptable.

Since they have influence on members’ product choices, the marketer can
adopt the use of sales promotion and word-of-mouth communication to make
the group like the product. In turn, the group could spread favorable
information about the product to convince their members.
Sometimes, an opinion leader (influential person whose purchases are

imitated by others) can be identified and reached by the marketing
communication about a product. They will unknowingly help to carry their
members along by purchasing the products.
However, these leaders have influence only in their chosen profession but not
on all products e.g. Maradona for football, Venus and Serena Williams in lawn
tennis, Michael Jackson in music, etc., serves as attractions to their fans.
Anticipatory or Aspiratory Group
This group is secondary and has indirect influence on the consumer who is
not yet a member but who aspires (wishes) to be a member. The aspiring
members tend to like what the group does. He or she acts like them and will
possibly imbibe their consumption behavior.
Dissociate Group
People that an individual tries to avoid belong to this group. For example,
occult groups, armed robbers, assassins, fraudsters etc. The consumer
dislikes their values and attitudes. Therefore, he avoids whatever they
consume in order to be seen a non-member of the group.
Role and Status

A person belongs to many groups at a time and his position in each group is
clearly defined. The standard of performance or behavior that is attached to
the status is equally explained. The role of the person in the group
determines his general and, possibly, buying behavior.

It is not surprising, therefore, that manager of a company may have to put

on a new personality that befits his status. For example; eating habits, items
he purchases, his mode of dressing and general behavior depend on his
status and role within the society or group in which he is a member.
For a marketer to succeed in getting consumers for products that

demonstrate esteem or prestige, he should understand how the roles affect
behavior, identify the target market and direct the marketing effort to the
market.

General Implication of Group in Marketing
A Reference group serves as the basis for comparing products; source of

information to reduce perceived risks and source of sanitation for wrong
behavior. Their influence on members can be expressed positively or
negatively and changes the consumer’s attitude, motivation and direct
decisions.
They also modify the perception of consumers. Factors peculiar to an

individual’s reference group can be used to create a market segment from
the mass market. They pass reliable buying information to a consumer of a
never-used item to make him have a first trial of the product.
The influence of a reference group on consumer is more pronounced when

the consumer uses a product that is visible to the group e.g. books, clothing,
shoes and when the items are luxury or durable items that carry higher risk,
and particularly in a cohesive group. Also, when the consumer belongs to and
is committed to the group norms, particularly in a cohesive group.
This also occurs when the group activity is very attractive to the buyer or if
he or she is buying a product on which limited information is available. When
an individual belongs to many groups, he or she experiences conflicts of
norms and may feel he is in dilemma. For example, a school girl wearing a
pair of trousers at school, while her family sanctions it at home, can solve the
problem through multi-faceted personality by obeying norms of each group
when she is in their midst. This method is known as compartmentalization.
Alternatively, she can weigh the importance of the groups in relation to her
fulfillment of physical, social and psychological needs. The degree of value
attached to each group of a norm is measured. She also identifies her status
and role in each group; a high status may put her in a position to flout the
norms without serious repercussions.

Finally, she provides a defensive argument to support reasons for accepting a

group norm but rejecting others.
A marketer is expected to identify and reflect group influences in their

advertisements and personal selling.
Every society, particularly in a free enterprise system, has different levels of

groups; those with wealthy people and those that are less privileged as
members.
Generally, the various group levels are called social classes. Every class is a
group of similar and enduring set of persons who have a hierarchy of
authority. Their members share similar interests and behavior.
Each class is distinct from others. Members are similar in ways they tend to
react and associate with each other. One class differs from another in terms
of occupation, wealth, power and distinctiveness. Each class is relatively
higher or lower in status and power to others.
Social class is divided into upper and lower classes, each of which has
specific patterns of general behavior and consumption. Members are judged
as superior or inferior, based on their social status.
For a marketer, society can be analyzed to find the set of people belonging to
each class. The attributes of the classes are used to develop the right
marketing mix. Unique desires for products/brand preference like books,
clothing, furniture, leisure, automobile, etc., is found in each class. The
marketer has to segment his or her marketing activities to serve his or her
preferred class.

Economic Factors Effects on Consumer Behavior
Economic theorists believe that a market for any product consists of identical
buyers who are rational. The buyers possess perfect information about the
market and use it to get optimum value for their efforts and money. In the
same view the suppliers are assumed to be identical, as their products are
competitive with little or no difference in their quality. Price serves as the
basis of differentiating one product from another. Buyers therefore, make
their purchases from sellers with the lowest price. They try to balance the
marginal utility among products.
No matter how cheap a product is, the consumer will buy it only if he has the
purchasing power to do so. This power depends on many economic variables
including the general economic situation, income and credit facilities or
possession of specific types of assets.

General Economic Situation
Economic data and trends are used to explain purchasing power. A

prosperous economy improves the ability of people to consume many
products. Business activities operate at peak level and workers' salaries and
benefits are paid easily. Marketing activities are facilitated by economic
indices like mass employment, plant capacity utilization, encouraging
national treasury and low inflation etc.
This is all reversed in poor economic conditions.
The economy becomes a moving target that must be checked and balanced
to eliminate fluctuations in the demand and supply relationship. The
Government applies fiscal and monetary policies to influence consumption of
different goods and services. Marketers need information on economic data
relating to individuals and households to develop the right marketing
programs according to economic trends.

Income
Income refers to the monetary reward for labor involved in making useful
goods and services available to consumers. The level of income that a
consumer gets affects the quality and quantity of products he acquires. As
income generally increases, consumers have stronger purchasing power for
different products. When the level of income is low, consumers tend to spend
a higher proportion of it on consumption but, as income rises above poverty
level, the propensity for immediate consumption declines and saving
increases.
A marketer must know the general income level and distribution among
different consumers in order to segregate his product marketing mix to
reflect their varied income levels. Knowledge of the dominant income level of
families helps a marketer to apply a unique formula for the set of consumers
who belong to each given group.
Disposable Personal Income
This is the amount left to the income earner after deducting his tax.
Disposable income is an economic factor that influences personal
consumption and saving. It is used by consumers to meet fixed and varied
commitments such as food, housing, clothing, medication, transportation etc.
In an inflationary period, a large portion of this income is spent by
consumers, while little or nothing is saved.
Discretionary Income
Any residual amount is in excess of immediate needs. This part of a
consumer’s disposable income is used to purchase non-essential items or for
saving and is called discretionary income.
It consists of money saved for future use without affecting necessary items.
It is set aside to purchase products that are durable and expensive in nature,
such as furniture, recreation, traveling personal care, etc.

Marketers need to focus on this type of consumer whose incomes are high
enough to meet high-level needs. Discretionary income and purchases
increase as income of consumers, generally, increases.

Consumers’ Income Expectation
If consumers have a high expectation for a given income, they could be

motivated to spend a high proportion of their income to purchase different
items. Savings are reduced, as the future is seen to be sure of providing
more income to offset excess spending in the present period.
In Nigeria, this expectation accounts for impulse purchases by consumers

when new minimum wages are announced. Marketers, who are aware of this
development, often capitalize on the opportunity by increasing the prices of
their goods.

Credit Facilities
By allowing consumers to make use of “buy product now and pay later”,
consumption of goods increases even where the consumers do not have
enough money to pay quickly. Modern businesses have recognized the
economic value of credit transactions. Such methods are widely applied to
encourage consumption. Common credit facilities include installment and
non-installment credits.
Installment Credit
Buyers are allowed to use expensive items and pay for them at fixed
intervals agreed by both the seller and buyer. Furniture, electric appliances,
automobiles and machinery etc., are acquired by leasing and hire purchase
agreements. However, total ownership does not belong to the consumers
until they pay the final installment.
Non-Installment Credit
The consumers are permitted to take possession of the product and make the
full payment all at once at an agreed later time. Credit facilities have now
been accepted as a way of life in business world.
Through these methods, producers increase sales and realize some profit
while the consumers are able to consume products beyond their immediate
purchasing power. Credit facilities are tied to economic trends; they increase
in prosperity and reduce in harsh conditions.
Both individual and corporate consumers are involved in credit transactions.

Individual level high income earners have higher credit opportunities than
low-income earners.

Possession of Assets
Existing financial and physical assets possessed by consumers can influence

their buying behavior. Each consumer’s assets can signify what he wants in
the future.
Physical Assets
A consumer who owns a house and a car is liable to need furniture, home
appliances, car accessories and so on. It also shows that there is a possibility
for repeat purchases of these items in the future. Therefore, these assets are
a measure of consumption patterns.
Financial Assets
Cash and other quickly convertible assets, such as money in the bank,
prepayment, goods in stock and debtors at the disposal of consumers help to
ensure quicker purchase of any item.
In summary, economic factors disclose how consumers are influenced to

spend their income, use credit facilities and their assets to satisfy their
needs.
Generally, economic background assumes products have the same qualities

and only the price serves as the basis for differentiating one product from
other products in their buying decisions. They use rational consideration
(from economic perspective) and non- rational factors (socio-cultural and
psychological) to affect purchase.
These findings prove economic viewpoints wrong. They show that the market
consists of different buyers that reflect these differences by adequately
proving different products.
In addition, economic consideration is just one of those dimensions that

consumers use to make their decisions.

Consumerism
This is an organized movement of consumers, Government and concerned

citizens aimed at protecting the rights of the consumers which are infringed,
by sellers or producers.
It is a group that protests against perceived injustices and dissatisfactions

suffered by consumers at the hands of producers and sellers. Included in
consumerism are responses of the producers and other concerned groups
and individuals towards correction of the injustices.
Knowledge about exploitation of consumers by sellers was recognized early in

1900. This led to local protests against harmful products as well as false and
misleading advertisements that sellers presented to consumers.
The consumers started to realize that they had some rights, and sellers also
had their own rights. It was expected that none of the parties should have
superiority over the other.
Seller’s Rights:
The rights of sellers include:
• The right to introduce any product in size and style that is not injurious
to the consumer's health by showing warnings controlling product
quality
• The right to price their product at any level without discrimination

among buyers
• The right to promote products with regards to fair competition
• The right to formulate any product message that is not misleading or

fraudulent in content and execution
• The right to introduce any attractive buying incentive schemes.

Buyer’s Rights:
The rights of buyers consist of:
• The freedom to buy or reject a product
• The right to buy only product that is safe
• The right to get proof that the product lives up to its claim
• The right to obtain adequate information about the product
• The right to be protected from doubtful products and unethical

marketing practices
• The right to influence products and marketing practices to improve

quality of life.
Despite all these rights, sellers and producers have reneged in fulfillment of
their obligations. Discontent occurred between sellers and buyers, among
business organizations, and environmentalists indirectly joined in the crusade
against environmental pollution.
Consumerism became more aggressive around the 1960s in America due to

the following causes:
• Economic discontent
• Ecological discontent
• Political discontent
• Aggressiveness of young people
As the complaints of this movement became noticeable, all parties affected

by the activity of consumerism started to find solutions by implementing
action, responses which differ from time to time.
For this reason, consumer oriented programs which are used to live up to
expectations of consumers are focused on the perspective as consumers and

consumer organization, government, business organization,

environmentalists and independent organizations that cherish high quality of
life.
It is worthy of note, that though consumerism started in America and

Europe, it was also experienced in Nigeria as a British colony.
Therefore, Nigerian consumers suffered from similar discontent brought

about by producers who were based in Europe. Under the colonial master,
Nigeria enjoyed some legislation, which protected the consumers from
producers' oppression. Since the colonial days, educated people who lived in
Nigeria and those that studied abroad aroused the interest of Nigerian
consumers in this crusade.
In addition, interaction of Nigerian consumers, producers and sellers with

their foreign counterparts gives impetus to consumerism in Nigeria. At this
juncture, active responses used in this topic are largely Nigerian-based
techniques.

Consumer and Consumer Organizations
Enlightened and serious consumers have individually and collectively been

fighting for their rights in different ways. Court cases are used to seek
redress from unethical marketing and production practices, vandalization,
burning and looting of business houses that are discovered to be exploiting
consumers.
For example, many aggrieved consumers used the opportunity of a political

crisis of 1993 to destroy and loot financial houses that exploited them.
Publishing their complaints through letters to editors, consumers exposed

unethical marketing practices, which resulted in public condemnation of the
erring producers. Concerned citizens showed their protest in organized
manner. Consumers have formed non-profit and voluntary associations like
co-operative societies, which protect their members. A consumer association
with national coverage was formed in 1980 to collectively fight for
consumers’ rights.
Consumers tend to support and vote for political parties whose manifesto
includes:
• Control of inflation,
• Availability of high quality product, etc.
In addition, consumers can secure favorable legislation against erring

producers of sub-standard and harmful products. To avoid the wrath of
people and government, which can lead to service problems for them,
companies are now adapting their production and marketing practices to
meet consumers' tastes and preferences.
Better communication presently exists between producers and consumers.

Many firms have a separate department or senior staff in charge of public
relations, corporate affairs, consumer affairs etc. These entities are

concerned with answering complaints, suggestions, enquiries, and pass

useful information to consumers and other interested public. Written
communication, such as instruction booklets and staff handbooks contain
information that pleases consumers.
The officer in charge of consumer affairs sits with other department heads to
include consumer interest in the company's plan and policies.
Consumer forums are also used to listen to the opinions of consumers and
reflect their contribution in the marketing mix of the companies.
Product information is contained in instruction booklets, packages or

pamphlets, which show manufacturing and expiry date, usage and care of
products and ingredients used to make the products.
Sometimes, the preferred method of disposing the used product or package

is disclosed to make consumers avoid contracting harmful effect of such
products. Edible products are made to contain nutritional elements to make
consumers have good health and vitality.
Product quality improvement and pollution-reduction measures are

made by producers. Use of after sales services such as parts
availability, maintenance and repairs, installations, guarantee and
warranty etc. gives consumers full satisfaction. Advertising is
carefully planned and executed to avoid stating wrong prices and
information, which causes ill feeling to unsatisfied consumers. Some
firms are trying to reduce and control their channel of distribution in
order to have reasonable prices for their products.
The present economic situation forces producers of fast-moving products to

use direct channel of distribution. This makes them bypass many middlemen
and sell goods directly to consumers, often at reduced prices.

Consumer Behavior Online
It is imperative to know what consumers are looking for online. This is so

that marketers can create value or services to meet their needs.
If you do not know the mind of your prospects or consumers, then you need
to carry out research and surveys to accomplish this task. This could be
achieved with the aid of software or through the use of questionnaires also.
What Consumers Are Looking For
Information-rich products: Every marketer should know the quality of

‘Good Information’. Good information is not uncertain or doubtful; it must be
simple to understand. It may not be 100% accurate, but it should be as
accurate as possible, it should be brief and straightforward, especially if
immediate actions are needed. Good information is timely and up-to-date.
Consumers online are looking for relatively cheap products: Every marketer
should not be in a haste to make a super-profit within a short time-span.
Information products and other e-commerce products should be relatively
cheaper than the offline/physical products to produce and distribute.
Consumers Online are looking for authoritative companies; companies they

could trust, since business is about trust. You should endeavor to be an
authority of your professed products or service. Another factor to consider is
that every consumer evaluates a site before purchasing a product or service.
It is important for marketers to know how consumers online evaluate a site.
Exposure: The level of exposure a marketer gives his or her site plays an
important role in the purchasing decisions of consumers. Every marketer
should invest quality time and money on publicity as this will familiarize the
consumers with the website and the product.

Attention: Every marketer should reply to all letters and inquiries promptly
and politely, whether the inquiry is positive or negative. First time
impressions always last.
Comprehension: How visitors comprehend the contents of the site will

determine whether they visit the website again or not. The language used in
the site must be explicit enough. Try to avoid slang that is not business-like.
Yielding and Acceptance: The terms and conditions and privacy policy
should be standardized and friendly, because consumers often go carefully
through “terms of service” and your “privacy policy” before making a buying
decision. “Money back Guarantee” should be conspicuously emphasized if the
product or service is unsatisfactory to the consumer.
Conspicuousness of purchase: It is always good to place the testimonials

of your past and present consumers on your site. This will give your
prospects or visitors a sense of belonging and confidence, especially if you
have famous clients or consumers. This is a great sales tool for your website.
Safety: It is a must to use a secure server when transacting business online.

This will protect the credit card of your clients. Throughout my online
research, it is a common practice that merchants or marketers do not take
time to know their clients or customers/prospects. This is often the case in
opt-in-email marketing. With the advent of automation, many
merchants/marketers do not take time to know their customers/prospects or
request vital information about them, which will enhance and accelerate their
marketing effort and bring consistent sales.
There was a time that I bought software from a reputable firm. From the
second day, an auto-responder was set to be submitting information to my
email address. I wrote the organization for certain information about the
software which was not included in their “frequently asked questions” but my
question was not answered on time until after repeated emails. I had to
eventually make a direct phone call before the problem was solved.

There was also a time when my country (Nigeria) did not have the privilege
of using a credit card. During this time, merchants and marketers kept
sending messages about their products/services into my email box and I was
interested in some.
I had the money with me but there was no way to transact the payment
online. If the merchants or marketers had taken my country/locality data,
they would have paused or stopped sending me follow-up mails because they
would know it was an effort in futility. There are still many localities/countries
that do not have access to credit cards. Also, if you know the age group of
your client/prospect, you will be able to know if he or she is suited for your
product or service at a particular point in time.
At times, I received emails about nursing mothers. If these merchants had

known my sex, they would have concentrated on their niche market, which
are regarded as “qualified leads”. My contribution to internet marketing is
that every marketer/merchants should first send a data form or
questionnaire to those that sign-in for their newsletter or subscription or for
free things or test/trial versions of their products/services before sending
follow up sales letters or closing sales.
The truth of the matter is that consumers more often buy products or
services when they are really in need of it rather than when they just want it.
I found, based on my own personal experience, that the most viable,

effective and quickest sales-generation medium or market place is the
“forum”.
‘Forum’, as defined by Merriam-Webster’s collegiate Dictionary 10th Edition:

“the market place or public place of an ancient Roman city forming the center
of judicial and public business.”
OR
…a program involving discussion of a problem - usually by several

authorities.

Since ‘marketing’ itself is identifying the need of the consumers, a good

professional salesman should be able to identify the needs of his potential
customers or prospects by visiting the forum and reading through the posted
information in the thread.
The following steps are my “sales secret” which solves all problems that I
mentioned on my website as a sales problem.
By participating in the forum:
9 It affords me the opportunity to know the rational and non-rational

factors that consumers consider in purchasing decisions.
9 I can adjust my marketing activities to the changing taste and

preference of the consumers and prospects.
9 It enables me have a competitive advantage over my competitors

since most of them focus mostly on other marketing techniques.
9 It greatly reduces the uncertainty about the consumers because I am

able to predict the buyers or consumers’ response to various
marketing programs.
9 It also enables me to keep my customers, because I always develop a

good relationship through the forum.
Since buying online is about trust and credibility, any consumer will find it
easier to trust someone who has built credibility over time through familiarity
rather than any strange website or person.

Steps I Follow as a Routine to Improve Sales
On the Google search engine, I’ll type in my ‘market category +forum’. For
example, to sell my e-Book “Consumers Buying Secrets Revealed!”, I always
choose “shopping forum” as my search phrase because that is the best
category for my product.
In choosing a category, one needs to be careful.
I once made the same mistake when I was still testing the waters. I chose
“marketing” and, at times, I chose “small business” but the sales
performance was just too poor. The reason was that I tried to sell to a poorly
selected ‘niche market’.
In a nutshell, the nature of your product or service will determine the

category that you will choose for your product or service.
Alternatively, you could choose to use your (main keywords + forum). But, in
my own case, “shopping” is not in my main keywords though it is delivering
optimal results.
One has to use his or her discretion when choosing the ‘search phrase’. The
golden rule is that it must align with your product or service.
After typing in “shopping forum” on the Google search engine, the search
result always generates thousands of websites with forums in this category. I
usually open as many websites as I could each day and sign-in on each
website to participate in the forum.
After sign-in, I will first read through all the posted threads or information
(both recent and hot information). I don’t normally read any posted thread of
the “authorities in any field”. I usually use a scan and skim method for
selecting the headlines or titles to read. I select and concentrate on those
that are asking for help or seeking solutions to a problem that falls within my
business category.

After identifying his or her need, which fulfils the golden rule of marketing
(identifying the needs of consumers), I will write the person involved through
his or her personal contact address or private message box.
I always include my website’s url/address at the end of the letter to direct

him or her to my sales letter’s web page.
After this, I always post a short article-with related information that relates
to my business and I‘ll also include my website’s url in the ‘General View
Thread Post” in each forum.
Conclusively, I stand to tell you authoritatively without any doubt that there
is no medium or marketing technique ever established and that will later
come up as a result of innovation that can meet and satisfy all these
essential needs of marketers which I listed above other than participating in
the forums in your market category.
It is pertinent to mention that I also use other marketing techniques like:

traffic exchanges, link exchanges and search engine optimization techniques
etc. But I focus mostly on forums as my ultimate marketing medium and it
has, and will continue to yield tremendous super sales, hence super profit.
Thanks for purchasing this e-Book.

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Consumers Buying Secrets REVEALED!

A Marketer’s Guide For Business

By Paul Tunde Raji (Bsc. Accounting)

Proudly brought to you by

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Please Read This FIRST!

“Consumers Buying Secrets Revealed!” is Copyright © 2007 Webneur. All

Terms of Use for the Electronic Edition.

Unless you are a current Member of eBookwholesaler or the Author, you

Copyright © 2007 by Paul Tunde Raji -2- http://www.webneur.com/

About this Book and the Author

“Consumer Buying Secrets Revealed!” is about consumer behavior. It was

Paul Tunde Raji is a Nigerian and holds a

He is a Freelance Writer with UVOCORP, an

He has “Expert Author” status from Ezinearticles.com

He has a full-time in his e-commerce business.

He is the owner and C.E.O. of http://www.webneur.com/

He is happily married to Racheal Olasunmbo Raji. They are blessed with a

Copyright © 2007 by Paul Tunde Raji -3- http://www.webneur.com/

He is a broadminded, trustworthy and an earnest person and will do what he

He is an idealistic person and interested in making the world a better place in

Copyright © 2007 by Paul Tunde Raji -4- http://www.webneur.com/

Please Read This FIRST! ....................................................................................2

About this Book and the Author........................................................................3

Buying Decision Process .................................................................................13

Commercial Sources ............................................................................................................... 14

Nicosia Flow Chart Model of Consumer Behavior .........................................17

Marketing Implications .....................................................................................18

Engel, Kollat and Blackwell Complete Model of Buying Behavior ...............19

Post-Purchase Behavior ..................................................................................22

Cognitive Dissonance ......................................................................................23

Howard and Sheth Model of Consumer Behavior..........................................25

Endogenous Variables or Hypothetical Construct .............................................................. 27

Andresen Model of Complex Customer Decision ..........................................29

Critique of the Model ........................................................................................................... 29

Copyright © 2007 by Paul Tunde Raji -5- http://www.webneur.com/

Connectionist Theory .......................................................................................33

Tolman’s Latent Learning Theory.......................................................................................... 37

Attitude in Relation to Consumer Behavior....................................................38

Components of Attitude ...................................................................................40

Marketing Implication of Attitude in Consumer Behavior .............................42

Factors that Resist Attitude Change ...............................................................44

Attitude and Persuasive Communication .......................................................46

Planning of Persuasive Communication ........................................................49

Factors that Influence Consumer Behavior....................................................50

Primary Group or Membership Group ............................................................52

General Implication of Group in Marketing.....................................................55

Economic Factors Effect on Consumer Behavior..........................................57

General Economic Situation ............................................................................58

Disposable Personal Income.................................................................................................. 59

Consumers’ Income Expectation ....................................................................61

Credit Facilities .................................................................................................62

Installment Credit .................................................................................................................... 62

Copyright © 2007 by Paul Tunde Raji -6- http://www.webneur.com/