Consumer Behavior
Information about Consumer Behavior
Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
Belch and Belch define consumer behaviour as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.
Sources of problem recognition include:
Sources of information include:
The selective perception process Stage Description Selective exposure consumers select which promotional messages they will expose themselves to. Selective attention consumers select which promotional messages they will pay attention to Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences Selective retention consumers remember messages that are more meaningful or important to them
You should consider the implications of this process on the development of an effective promotional strategy. First, which sources of information are more effective for the brand and second, what type of message and media strategy will increase the likelihood that consumers are exposed to our message, that they will pay attention to the message, that they will understand the message, and remember our message.
The relevant internal psychological process that is associated with the alternative evaluation stage is attitude formation. Belch and Belch (2007, p.117) note that attitudes are 'learned predispositions' towards an object. Attitudes comprise both cognitive and affective elements - that is both what you think and how you feel about something. The multi-attribute attitude model explains how consumers evaluate alternatives on a range of attributes. Belch and Belch (2007) identify a number of strategies that can be used to influence the process (attitude change strategies). Finally, there are a range of ways that consumers apply criteria to make decisions. Belch and Belch (2007) explain how information is integrated and how decision rules are made including the use of heuristics. The marketing organisation should know how consumers evaluate alternatives on salient or important attributes and make their buying decision.
The relevant internal psychological process that is associated with post purchase evaluation is learning. Belch and Belch (2007) discuss two basic approaches to learning theory behavioural and cognitive learning theory. Behavioural learning theory proposes that stimuli from the environment influence behaviour. Return to top
Belch and Belch define consumer behaviour as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.
Basic model of consumer decision making
| Stage | Brief description | Relevant internal psychological process |
|---|---|---|
| Problem recognition | The consumer perceives a need and becomes motivated to solve a problem. | Motivation |
| Information search | The consumer searches for information required to make a purchase decision | Perception |
| Alternative evaluation | The consumer compares various brands and products | Attitude formation |
| Purchase decision | The consumer decides which brand to purchase | Integration |
| Post-purchase evaluation | The consumer evaluates their purchase decision | Learning |
Problem recognition
Problem recognition results when their is a difference between one's desired state and one's actual state. Consumers are motivated to address this discrepancy and therefore they commence the buying process.Sources of problem recognition include:
- An item is out of stock
- Dissatisfaction with a current product or service
- Consumer needs and wants
- Related products/purchases
- Marketer-induced
- New products
Information Search
Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search.Sources of information include:
- Personal sources
- Commercial sources
- Public sources
- Personal experience
The selective perception process Stage Description Selective exposure consumers select which promotional messages they will expose themselves to. Selective attention consumers select which promotional messages they will pay attention to Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences Selective retention consumers remember messages that are more meaningful or important to them
You should consider the implications of this process on the development of an effective promotional strategy. First, which sources of information are more effective for the brand and second, what type of message and media strategy will increase the likelihood that consumers are exposed to our message, that they will pay attention to the message, that they will understand the message, and remember our message.
Alternative evaluation
At this stage the consumer compares the brands and products that are in their evoked set. How can the marketing organisation increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organisation needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision.The relevant internal psychological process that is associated with the alternative evaluation stage is attitude formation. Belch and Belch (2007, p.117) note that attitudes are 'learned predispositions' towards an object. Attitudes comprise both cognitive and affective elements - that is both what you think and how you feel about something. The multi-attribute attitude model explains how consumers evaluate alternatives on a range of attributes. Belch and Belch (2007) identify a number of strategies that can be used to influence the process (attitude change strategies). Finally, there are a range of ways that consumers apply criteria to make decisions. Belch and Belch (2007) explain how information is integrated and how decision rules are made including the use of heuristics. The marketing organisation should know how consumers evaluate alternatives on salient or important attributes and make their buying decision.
Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organisation must facilitate the consumer to act on their purchase intention. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.Post purchase evaluation
Once the consumer has purchased and used the product, they will evaluate their purchasing decision. They compare the product's performance with their expectations. If the product does not perform as expected they will experience post purchase dissatisfaction. When consumers purchase high involvement products, that is more expensive products for which they exert a greater purchasing effort in terms of time and search, they usually experience some level of discomfort after the purchase. That is, they experience some doubt that they made the right choice. This situation is called 'cognitive dissonance' (thinking disharmony). You should consider the implications of post purchase behaviour for the marketing organisation. How can the marketing organisation minimise the likelihood of post purchase dissatisfaction and/or cognitive dissonance?The relevant internal psychological process that is associated with post purchase evaluation is learning. Belch and Belch (2007) discuss two basic approaches to learning theory behavioural and cognitive learning theory. Behavioural learning theory proposes that stimuli from the environment influence behaviour. Return to top
References
- 'The Theory of Buyer Behavior ' (Wiley, 1969)
- J. Engel, D. Kollatt and R. Blackwell, 'Consumer Behaviour ' (Dryden Press, 1978)
- D. Mercer, ‘Marketing’ (Blackwell, 1996)
- 'Behaviour of Buyer'(T.Ocean 1998)
General bibliography
- Bilkey, Warren J., "The Vector Hypothesis of Consumer Behavior, Journal of Marketing, Vol. 16, No. 2, Oct., 1951, pp. 137-151.
- Chisnall, P.M. (1992), Marketing: A Behavioural Analysis, McGraw-Hill, London.
- Davidson, W.R., Bates, A.D., Bass, S.J. (1976), The Retail Life Cycle, Harvard Business Review, Boston, MA.
- Grunert, K.C. (1988), Research in Consumer Behaviour: Beyond Attitudes and Decision Making, European Research, Vol. 16.
- Hague, D.C. (1977), Managerial Economics: Analysis for Business Decisions, Longman, Harlow.
- Howard, J., Sheth, J.N. (1968), Theory of Buyer Behaviour, J. Wiley & Sons, New York, NY.
- Karmarck, A.M. (1983), Economics and the Real World, Basil Blackwell, Oxford.
- Kim, Soyoung, Littrell, Mary A., "Predicting Souvenir Purchase Intentions", Journal of Travel Research, v.38, November 1999, pp.153-162.
- Loudon, D.L. (1988), Consumer Behaviour: Concepts and Applications, McGraw Hill, London.
- McNair, B. (1958), Retail Development, Harper & Row, New York, NY.
- Nicosia, F.M. (1968), "Advertising management, consumer behaviour and simulation", Journal of Advertising Research, Vol. 8 No.1, pp.29-39.
- Schiffman, L.G. (1993), Consumer Behaviour, Prentice Hall International, London.
- Solomon, M.R. (1994), Consumer Behaviour, Allyn & Bacon, London.
- Stern, L.W., El-Ansary, A.I. (1992), Consumer Behaviour: An Information Processing Perspective, Prentice Hall, Englewood Cliffs, NJ.
- Termorshuizen, J.G., Meulenberg, M.T.G., Wierenga, B., "Consumer behaviour in respect of milk in the Netherlands", European Review of Agricultural Economics Volume 13, Number 1 Pp. 1-22, 1986.
- Wansink B. (2006), , New York: Bantam Dell.
External links
Psychology (from Greek: Literally "talk about the soul" (from logos)) is both an academic and applied discipline involving the scientific study of mental processes and behavior.
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Sociology (from Latin: socitus, "companion"; and the suffix -ology, "the study of", from Greek λόγος, lógos, "knowledge") is the systematic and scientific study of society and societal behavior.
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Social psychology is the scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others (Allport, 1985). By this definition, scientific refers to the empirical method of investigation.
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Anthropology (from Greek: ἄνθρωπος, anthropos, "human being"; and λόγος, logos, "speech" lit. to talk about human beings) is the study of humanity.
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Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold).
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Buyer decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service.
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Demographics refers to selected population characteristics as used in government, marketing or opinion research, or the demographic profiles used in such research. (Note the distinction from demography, see below.
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psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles. They are also called IAO variables (for Interests, Attitudes, and Opinions).
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Brian Wansink (born 1960, Sioux City, Iowa) is an American professor in the fields of marketing and nutritional science. He is best known for his work on consumer behavior and specifically on food psychology and behavior, which focuses on how micro environments (supermarkets,
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The Food and Brand Lab is a non-profit research facility at Cornell University which focuses on why people buy and eat the foods they do in the quantities they do. Directed by Brian Wansink [1] , the stated mission of the Lab is to "Conduct top level academic research
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