Consumer Behaviour

Lecture 3

Objectives of this session• Recap previous session• Understand the decision-making processes that

consumers go through as they make a purchase

• Appreciate how those processes differ between different buying situation

• Understand the influences that affect decision-making, whether environmental, psychological or sociocultural

• Appreciate the implications of those processes and influences for marketing strategies

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Elements of the external environment

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Activity

Working in pairs, carry out a STEP analysis to identify the main influences affecting the marketing environment of the sustainable land management sector

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Consumer Buying Decision-Making Process

Individual influences

Group influences Marketing mix

Decision-making process

Situational influences

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The Consumer Decision-Making Process

Problem Recognition

Information evaluation

Decision

Information search

Post-Purchase Evaluation

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Information Search

• What kind of purchase will address problem?

• How can the product be obtained?

• What information is needed?

Source: C&G http://www.cheltglos.co.uk

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Information Search

Ongoing Search

Purposeful Search

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Information Evaluation

Information Evaluation involves a process of narrowing down a wide list typically by constructing performance criteria with which to judge choices.

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Interactive Decision Aids

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Decision

Consumers may use rules of thumb to decide:

– Choose the cheapest– Choose the most expensive– Select the brand used before– Others?

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Post-Purchase Evaluation

• Affects likelihood of repeat purchase

• May evoke cognitive dissonance

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Review of the Decision-Making Process

I’m hungry

What’s available?

Cakes or chocolate?

Chocolate bar

I should’ve had cake.

Problem recognition

Information search

Information evaluation

Decision

Post-purchase evaluation

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Purchasing Situations

Routine Limited Extended

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Routine Problem-Solving

Situation• Low risk, low pricePurchase stages• Awareness• Trial• Repeat purchase

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Limited Problem Solving

Situation• Moderate price,

moderate risk

• Relatively infrequent purchase

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Extended Problem Solving

Situation• High cost, high risk

• Infrequent purchase

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Situational (Environmental) Influences

Sociocultural

TechnologicalRegulatory

Political Economic

Competitive

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Personality

Personality can play a role in consumer behaviour particularly with high involvement products (e.g. choice of holiday)

Source: © Hayes & Jarvis (Travel) Ltd http://www.hayesandjarvis.co.uk

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Perceptions

Selectiveattention

Selectiveretention

Selectiveperception

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Maslow’s Hierarchy of Needs

Self-actualisation

Esteem

Belongingness

Safety

PhysiologicalSex Hunger

Membership

Security

Success

Protection

Affection

Potential

Status

Fulfilment

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Attitudes

Cognitive

(Beliefs or disbeliefs)

Conative(Attitudes

leadingto

behaviour)

Affective(Feelings

emotionalinvolvement)

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Skoda Responded to Negative Attitudes

Group MembershipAffects individuals by helping to

• Differentiate between essential and non-essential purchases

• Prioritise purchases where resources are limited• Define meaning of a product and its benefits• Foresee post-purchase implications

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Other Group Influences

Social class

CultureReference groups

Family Sub-culture

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Reference Groups

• Membership

• Aspirant

eg Harley DavidsonSource: © Harley-Davidson UK http://www.harley-davidson.com

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Family Life Cycle

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Family as a Decision-Making Unit

Initiator

InfluencerUser

Decider

Purchasing Decision

Purchaser

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