Understanding Consumer Behavior: Consumers Make Purchase Decisions

Understanding Consumer Behavior
consumers make
purchase decisions
Consumer
behavior = HOW
consumers use and

dispose of product
Model of Buyer Behavior
The Consumer Decision
Process
Need Recognition
Preferred
Present State
Status
Marketing helps consumers recognize

an imbalance between present status
and preferred state.
Recognition of
Unfulfilled Wants
• When a current product isn’t performing

properly
• When the consumer is running out of a product
• When another product seems superior to the

one currently used
Information Search
Internal Information Search
• Recall information in
memory
External Information search
• Seek information in outside

environment
• Non-marketing controlled
• Marketing controlled
External
Information Searches
Need Less Need More
Information Information
Less Risk More Risk

More knowledge Less knowledge
More product experience Less product experience
Low level of interest High level of interest
Confidence in decision Lack of confidence
Evoked Set
Evoked Set
Group of brands, resulting

from an information search,
from which a buyer can choose
Evaluation of Alternatives
and Purchase
Evoked Set Analyze product

attributes
Use cutoff criteria
Rank attributes by
importance
Purchase
Buyer Decision Process
Step 1. Need Recognition
Buyer
Recognizes a
Problem or
Internal a Need External
Stimuli – Arising From: Stimuli-
Hunger Friends
The Buyer Decision Process
Step 2. Information Search
Personal Sources •Family, friends, neighbors

•Most effective source of
information
Commercial Sources •Advertising, salespeople
•Receives the most information
from these sources
Public Sources •Mass Media

•Consumer-rating groups
•Handling the product

Experiential Sources •Examining the product
•Using the product
Step 3. Evaluation of Alternatives
Consumer May Use Careful

Calculations & Logical Thinking
Consumers May Buy on Impulse and

Rely on Intuition
Consumers May Make Buying Decisions
on Their Own
Consumers May Make Buying Decisions

Only After Consulting Others
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of Others Situational
Factors
Purchase Decision
Step 5. Post-purchase Behavior
Satisfied Customer!
Cognitive Dissonance
Consumer’s
Expectations of Product’s Performance
Product’s Perceived
Performance
Dissatisfied Customer
Cognitive Dissonance
Cognitive Inner tension that a

Dissonance
consumer experiences
after recognizing an
inconsistency between
behavior and values or
opinions.
Post-purchase Behavior
Consumers can reduce dissonance by:
 Seeking information that reinforces positive
ideas about the purchase
 Avoiding information that contradicts the
purchase decision
 Revoking the original decision by returning
the product
Marketing can minimize dissonance through

effective communication with purchasers.
Problem Solving Continuum
Low involvement High involvement
Frequently purchased Infrequently purchased
Inexpensive Expensive
Little risk High risk
Little information needed Much information desired
Routinized Limited Extensive

Response Problem Problem
Behavior Solving Solving
Low involvement High involvement

Routine
Response Behavior
 Little involvement in selection process
 Frequently purchased low cost goods
 May stick with one brand
 Buy first/evaluate later
 Quick decision
Extensive Decision Making
 High levels of involvement
 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance

Levels of involvement
 High involvement
 Low involvement
 Enduring involvement
 Situational involvement
Factors Influencing Consumer
Behavior
Factors Affecting Consumer
Behavior: Social
Groups Membership,
Reference, or Aspirational
Family Most Important

Consumer Buying Organization
Roles and Status

Factors Affecting Consumer
Behavior: Personal
Personal Influences
Age and Life Economic Personality &

Occupation Situation Self-Concept
Cycle Stage
Lifestyle Identification
Activities Interests Opinions

Factors Affecting Consumer Behavior:
Psychological
Motivation
Psychological
Factors Affecting
Beliefs and Buyers
Choices Perception
Attitudes
Learning
Lifestyle Dimensions
Adopter Categories
Adoption Process Steps
Awareness
Interest
Evaluation
Dissonance
Trial
may set in
after the
Decision decision!
Confirmation

Understanding Consumer Behavior: Consumers Make Purchase Decisions

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Understanding Consumer Behavior

consumers use and

Marketing helps consumers recognize

• When a current product isn’t performing

• When the consumer is running out of a product

• When another product seems superior to the

Internal Information Search

• Seek information in outside

Less Risk More Risk

Group of brands, resulting

Evoked Set Analyze product

Use cutoff criteria

Personal Sources •Family, friends, neighbors

Public Sources •Mass Media

•Handling the product

Consumer May Use Careful

Consumers May Buy on Impulse and

Consumers May Make Buying Decisions

Cognitive Inner tension that a

Marketing can minimize dissonance through

Routinized Limited Extensive

Low involvement High involvement

 Frequently purchased low cost goods

 May stick with one brand

 Buy first/evaluate later

 High levels of involvement

 High cost goods

 Evaluation of many brands

 Long time to decide

 May experience cognitive dissonance

Family Most Important

Roles and Status

Age and Life Economic Personality &

Activities Interests Opinions

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