Lecture 4

Consumer Behaviour
Week Lecture topic
1 Course overview and marketing planning
2 Marketing environments
3 Market research
4 Consumer behaviour
5 Segmentation, targeting and positioning
6 Product & Services Strategy
7 Pricing Strategy
Mid-semester break
8 Place Strategy
9 Promotion - IMC
10 Evaluation, budgeting and implementation
11 Contemporary issues in marketing
12 Marketing mix review
13 Course review
 Learning Objectives
• How do consumer characteristics influence buying behavior?
• What major psychological processes influence consumer
responses to the marketing program?
• How do consumers make purchasing decisions?
• In what ways do consumers stray from a deliberative, rational
decision process?

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 Activity Icon

Icon Meaning Activity

These are important points and you should take notes.

Take notes
You will be required to know this information.

Individual Activity Students complete an individual task.

Students discuss/ complete activities in groups and report back to the

Group Activity
class.

Research required You will need to research this and do some reading before the next class.

You MUST understand this concept to successfully complete the subject.

Important Concept
Seek help if you don’t understand.

Practice Questions Students will complete these questions as practice.

 What is a Consumer?
• Consumer – B2C • Organisation – B2B
• Individual • Business
• Household • Government
• Personal consumption • Institutions
Model Of Consumer Behavior

Image Source: Figure 6.1 Model Of Consumer Behavior

Kotler & Keller (2016) Marketing Management, Global Edition
15e
What Influences Consumer Behavior?
What Influences Consumer Behavior?
• The study of how individuals, groups, and organizations select,
buy, use, and dispose of goods, services, ideas, or experiences
to satisfy their needs and wants

• Influenced by cultural, social, and personal factors

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Buyer characteristics

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Culture
The set of basic values, perceptions, wants and
Culture behaviours learned by a member of society from
family and other important institutions.

Cultural group A group of people with shared value systems based

on common life experiences and situations.

Relatively permanent and ordered divisions in a

Social class society whose members share similar values,
interests and behaviours.

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Social factors
Two or more people who interact to accomplish individual or mutual goals.

Groups that have a direct influence…

Membership groups

Reference groups

Aspirational groups

Opinion leaders

Online social networks

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 Family
• Family of orientation vs Family of
procreation
Traditional purchasing roles are changing!

marketers must see both men and women as possible targets

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Personal factors
Standard population descriptors
Demographics e.g. age, economic situation, life-cycle stage,
education, occupation.

A person’s pattern of living as expressed in his or her

Lifestyles activities, interests and opinions.

Personality & Personality refers to the unique psychological

self-concept characteristics that distinguish a person or group.

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Demographics and lifestyles

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brainstorming
You are all grouped as students.
• What are some of the typical characteristics of students?

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 Personality, brand personality
and self-concept
Brand The specific set of human traits that can be
personality matched to a brand.

Brand personality traits (identified in selected research)…

Sincerity: down-to-earth, honest, wholesome and

cheerful
Excitement: daring, spirited, imaginative and up-to-
date

Competence: reliable, intelligent an successful

Sophistication: upper-class and charming

Ruggedness: outdoorsy and tough

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 Name the brand that comes to mind…
Sincere Exciting Competent Sophisticated Rugged

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Self-concept
• A belief a person holds about his or her own attributes and
how they evaluate these qualities.
• Real and Ideal Selves:
• Ideal self is a persons conception of how they would like
to be.
• Real self is a more realistic appraisal of how they are
• Products play a pivotal role defining self concept

https://www.youtube.com/watch?v=vilUhBhNnQc&amp=&NR=1
 Key Psychological
Processes
Motivation

Memory Perception

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Emotions Learning
 Psychological factors

Motive A need that is sufficiently pressing to direct the

(or drive) person to seek satisfaction.

The process by which people select, organise and

Perception interpret information to form a meaningful picture of
the world.

Changes in an individual’s behaviour arising from

Learning experience.

Belief: A descriptive thought that a person holds

about something.
Beliefs &
attitudes Attitude: A person’s consistently favourable or
unfavourable evaluations, feelings and tendencies
towards an object or idea.
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 Motivation
Maslow’s Herzberg’s
Freud’s Hierarchy of Two-Factor
Theory Needs Theory

Behavior is Behavior is Behavior is

guided by driven by guided by dis-
subconscious lowest, satisfiers and
motivations unmet need satisfiers

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Motivation

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Perception and beliefs
• Young woman or old woman?

Selective attention is the tendency for

people to screen out most of the
information to which they are exposed.
Selective distortion is the tendency for
people to interpret information in a way
that will support what they already believe.
Selective retention is the tendency to
remember good points made about a
brand they

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 Attitudes
Attitudes are difficult to change. Thus, companies generally
try to fit their products into existing attitudes rather than
attempt to change attitudes.

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Model of Consumer Behaviour
 The buyer decision process
Need recognition The buyer recognises a need, triggered by internal or
external stimuli.

The buyer seeks out information about products or

Information search services with potential to satisfy the need.

Evaluation of The consumer processes information in order to

alternatives arrive at brand choices.

The consumer forms a purchase intention and

Purchase decision
ultimately makes the actual purchase.

Following purchase, the consumer will engage in a

Post-purchase variety of post-purchase behaviours – including
behaviour satisfaction, formation of future purchase intentions
and loyalty intentions.
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The Buying Decision Process
• Problem recognition
• The buyer recognizes a problem / need triggered by
internal/external stimuli

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 The Buying Decision Process
Information search
• Personal sources
• Commercial
sources
• Public sources
• Experiential sources

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Sets Involved In Decision Making

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Image Source: Figure 6.5 Sets Involved In Decision Making

Kotler & Keller (2016) Marketing Management, Global Edition
15e
Pearson Education Limited
 The Buying Decision
Process
• Evaluation of alternatives
• Expectancy-value model (compensatory model)

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Image Source: Kotler & Keller (2016) Marketing Management, Global Edition 15e
Pearson Education Limited
The Buying Decision
Process

Intervening factors

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Image Source: Kotler & Keller (2016) Marketing Management, Global Edition 15e
Pearson Education Limited
Types of perceived risk
Functional
Risk

Time Risk Physical Risk

Psychological Financial Risk

Risk

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Social Risk
 The Buying Decision
Process
• Post-purchase behavior
– Post-purchase satisfaction
– Post-purchase actions
– Post-purchase uses and disposal

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Customer Product Use/Disposal

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Image Source: Figure 6.7 Customer Product Use/Disposal Kotler & Keller (2016) Marketing
Management, Global Edition 15e
Pearson Education Limited
Moderating Effects on Consumer Decision
Making • Low-involvement Consumer Decision
Making
• Variety-Seeking Buying Behavior

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Image Source: Kotler & Keller (2016) Marketing Management, Global Edition 15e
Pearson Education Limited
Who Benefits from the Study of
Consumer Behaviour?
Ethicists and Public Policy
Marketing Advocacy Makers and
Managers Groups Regulators

Academics Consumers
and Society
 Marketing Implications
1. Developing and implementing customer-oriented strategy

2. Selecting the target market

3. Developing products
4. Positioning

5. Promotions and marketing communication decisions

6. Pricing decisions

7. Distribution decisions
 Workshop next week
• Influences on consumer buying decision
• Expand the decision making process

Lecture next week

• Segmenting, targeting and positioning

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 •See You in the
Tutorials & Workshops
Thank You.