CB - 3 Consumer Behaviour
CB - 3 Consumer Behaviour
CB - 3 Consumer Behaviour
Behaviour
Economic view
The consumer is regarded as being rational. The
model assumes that there exists in the market a state
of perfect competition.
The consumer is aware of the various alternatives.
He has the knowledge and ability to rank all of these;
and he finally takes a rational decision.
He takes a decision and makes a choice as after
taking into account the cost and benefit, and the
overall value in economic terms
Cognitive View
The consumer is regarded as being a problem solver,
who searches for products to fulfill his needs/wants.
Consumer decisions are based on information
gathering and processing.
The consumer is believed to take decisions after a lot
of thought and deliberation, so as to get maximum
benefit and value
Passive View
Here, the consumer is regarded as
irrational and impulsive, who easily
succumbs to the selling and
promotional efforts of the marketer.
It is assumed that the consumers
are submissive to the self-serving
interests of the marketer and the
salespersons are powerful
Emotional View
The consumer is regarded as being
emotional and impulsive. who takes
decisions based on moods and
emotions.
Marketers must put in efforts and
create positive mood and emotions.
Models of Consumer
Behaviour
The consumer models refer to varying orientations
and perspectives with which consumers approach the
marketplace and how/why they behave as they do.
They refer to how the varying orientations impact the
buying decision process and overall buyer behavior.
Various models have been proposed by researchers;
these models can be classified as
(a) General models
(b) Specific models.
General Model
Economic Model
Psychological Model
Psychoanaytical Model
Sociological Model
Economic Model
The economic model explains buying
behavior from an economic perspective;
The assumption is that resources are
scarce viz. unlimited needs; a consumer
seeks value: he wants maximum benefit
at minimum cost.
The economic models showed concern as
to how scarce resources were allotted to
satisfy the unlimited needs and wants.
Psychological Model
The psychological model, also called the Learning
Model or the Pavlovian Learning Model, was
proposed by classical psychologists led by Pavlov.
According to this model, consumption behavior and
decision making is a function of interactions
between human needs and drives, stimuli and
cues, responses and reinforcements.
People have needs and wants
They are driven towards products and services
(stimuli and cues), which they purchase (response),
and they expect a satisfying experience (rewards
and reinforcements);
Repeat behavior would depend on reinforcement
received.
Cont.
The model believes that behavior is deeply
affected by the learning experiences of the
buyers; and learning is a product of
information search, information processing,
reasoning and perception.
Reinforcement leads to a habit formation
and the decision process for an individual
becomes routinized, leading to brand loyalty.
Consumers also learn through trial and error
and resultant experiences that get stored in
our memory.
Cont
The limitations of studying consumer
behavior with this approach is that the
model seems incomplete.
Learning is not the only determinant in the
buying process and the decision making.
The model totally ignores the role played by
(a) other individual determinants like
perception,
personality
(the
subconscious), attitudes;
(b) interpersonal and group influences.
Psychoanalytical model
The psychoanalytic model was
proposed by Sigmund Freud.
The model tries to explain consumer
behavior as a resultant of forces that
operate at subconscious level.
The individual consumer has a set of
deep seated motives which drive him
towards certain buying decisions
Gestalt Theory
The model based on Gestalt principles (meaning
patterns and configuration) lays emphasis on the
perceptual processes that impact buying behavior.
According to this model, consumption behavior and
decision making is based on how a consumer
perceives a stimuli ( the product and the service
offering and the 4 Ps) viz a viz. the external
environment
and
his
own
prior
experiences.
Cognitive Theory
The model proposed by Leon Festinger
views the consumer as one who faces a feeling of
anxiety (dissonance), while he is making a purchase;
This is because he is faced with many alternatives, all of
which seem desirable.
Post-purchase, this dissonance increases even further.
There is an imbalance in the cognitive structure; and the
consumer tries to get out of this state as soon as he can.
So a buyer gathers information that supports his choice
and avoids information that goes against it.
Sociological Model
The model is based on findings of Thorstien
Veblen, and focuses on the role played by social
groups and social forces.
A persons consumption pattern and buying
behavior is affected by social factors; his family,
friends, peers, social groups, reference group and
culture have a major role to play.
According to the model, man is perceived as a
social animal, and thus he conforms to norms of
its culture, sub culture and groups amongst which
he operates.
Emulative factors and social influences have a big
role to play in consumer decision making.
Marketing Implications of
Models
Model
Implication
Economic Model
Cont..
Model
Psychological Model
Implications
Consumers learn from
experiences of self and others.
-They would buy products and
services that are rewarding
and would bring positive
reinforcement. -Marketers
should arrange for product
demonstrations. -They should
also encourage trials: free
samples, testing and sales
promotion can help elicit trials.
-If the consumer finds the
product usage satisfying, he
would go for a repeat
purchase.
Model
Implications
Psychoanalytical
Model
Cont
Model
Gestalt
Cognitive
ThisImplications
has implications
for brand
management;
branding, brand
associations and
imagery.
This is related to postpurchase behavior;
the marketer needs to
help minimize the
consumers postpurchase dissonance.
Model
Implications
Sociological Model
A persons purchase
behavior is affected by
his culture, sub culture
and social group; Opinion leadership
and social group
appeals.
Stimulus Inputs(Input
Variables)
Cont
Hypothetical constructs
Two major groups
(1)Perceptual constructs
(2)Learning Constructs
Cont
The buyer is exposed to any information,
there is an attention; this attention towards
the stimuli depends on the buyers
sensitivity to information in terms of his urge
and receptivity towards such information.
Not all information would be processed and
the intake of information is subject to
perceived
uncertainty
and
lack
of
meaningfulness of information; this is
referred to as stimulus ambiguity.
This reflects the degree to which the buyer
regulates the stimulus information flow.
Cont
Stimulus ambiguity occurs when a
consumer does not understand the
message from the environment; it could
trigger off a need for a specific and active
search for information and thus lead to an
overt search for information.
The information that is gathered and
processed may suffer from perceptual bias
if the consumer distorts the information
received so as to fit his/her established
needs/beliefs/values/experiences etc.
Learning Constructs
Cont
The
brand
comprehension
is
the
knowledge and information that the buyer
has about the various brands in his evoked
set.
The buyer forms an order of preference for
the various brands; this order of
preference is based on the choice criteria
(decision mediators).
The decision mediators are the evaluative
criteria and the application of decisions
rules by the buyer to the various purchase
alternatives.
Cont
The purchase intention is a cumulative
outcome of the
interaction of buyer motives
choice criteria,
brand comprehension,
resultant brand attitude and the confidence
associated with the purchase.
Satisfaction involves the post purchase
evaluation (whether expectation from an
offering matches the performance)
Response Outputs
The output variables refer to the buyers
action or response to stimulus inputs.
Cont
Attention refers to the degree or level of information that a
buyer accepts when exposed to a stimulus. It reflects the
magnitude of the buyer's information intake.
Comprehension is the amount of information that he actually
processes and stores; here, it refers to brand comprehension
which is buyers knowledge about the product/service category
and brand.
The attitude is the composite of cognition, affect and behavior
towards the offering; the attitude reflects his evaluation of the
brand and the like/dislike based on the brand potential.
Intention refers to the buyers intention to buy or not to buy a
particular offering.
Purchase behavior refers to the actual act of buying. The
purchase behavior is a cumulative result of the other four
constituents.
Exogenous Variables
That influence some or all of the
constructs explained above, and thereby
impact the final output variables.
These are explained as Inhibitors or
environmental forces that restrain the
purchase of a favored brand.
Eg. importance of the purchase, price,
financial status of the buyer, time at the
disposal of the buyer, personality traits,
social pressures etc.
Cont
It was one of the first models to divulge as
to what constitutes loyalty towards a
specific product.
It helped gain insights in to the processes
as to how consumers process information.
The model is user friendly and is one of
the few models which has been used most
commonly and tested in depth.
various constructs cannot be realistically
tested; some of the constructs are
inadequately defined, and thus do not
lend to reliable measurements.
1. Marketer's communication
affecting consumers attitude
The consumer is exposed to the firms attributes through the marketing
communication.
The information could relate to the firm attributes as well as the
product, price and distribution.
This message relating to the firms attributes affects the consumers
perception, predisposition and attitude toward the firm and its offering.
The impact on perception and attitude is also dependent
upon the consumers personal characteristics, values,
experiences, culture, social influences etc.
Thus, the marketers communication affects the
consumers attitude
3. Purchase action
The motivated state leads to Field 3
of the model, i.e. the decision
making on the part of the consumer
and the act of purchase.
The consumer finally gets into action
and buys the product from a chosen
retailer
Information Input
The information input includes all kinds of
stimuli that a consumer is exposed to and
triggers a kind of behavior.
The consumer is exposed to a large
number
of
stimuli
both
marketing
(advertising, publicity, personal selling,
demonstrations, store display, point of
purchase stimuli) as well as non-marketing
sources (family, friends, peers)
Thus the various stimuli compete for
consumers attention.
These stimuli provide information to the
consumer and trigger off the decision
Information Processing
External Influences
Psychological Influences
on Consumer Decision
Making
Psychological Influences
Motivation
Personality
Perception
Learning
Attitude
Communications
External Influences : Social Class,
culture, Reference Groups,
Family members.
Cont.
A need is a state of felt deprivation while
a want is a desire for a specific satisfier.
Needs preexist a marketer.
They are already known and experienced
by consumers.
consumers fail to identify needs as the
needs lie at the sub conscious level and
remain unfelt.
In such cases, a marketer can just help a
consumer identify such needs.
Cont
Human needs are dormant and lie at a latent state.
They get aroused suddenly by
(i) Stimuli internal to the individual and his physiology
(ii) Stimuli in the external environment
The marketer could also formulate strategies that help
trigger such needs.
Cont.
Example: a person smells the aroma of
freshly baked cakes and enters the bakery
to buy some cakes.
The marketer could also formulate
strategies that help trigger such needs.
Example: A banner or a hoarding informing
people of a food festival at attractive
prices can trigger off a desire amongst
people to try out newer dishes and cuisine
Or the display of a newly launched car, can
encourage customer trail and subsequent
purchase.
Cont
This inner urge and the impelling action to put in
efforts to attain a goal and fulfill the need and
thereby attempt at satisfaction is referred to as
motivation.
The term motivation has been derived from the
Latin word movere which means to move.
When a consumer realizes that there exists a state of
felt deficiency (need), it gets translated into a variety
of options (wants) from which a consumer may
chose.
Cont
The need/want lead to
state of tension in the mind of the consumer
and an urge/drive to act (buy/consume), so
as to fulfill the need or want.
This manifests itself into a goal, which is
actually the behavior (act to purchase or
consume), which puts an end to the urge to
act.
The entire action may ultimately lead to
feelings of satisfaction, neutrality or
dissatisfaction.
Cont
Consumer motivation is the urge or drive to satisfy needs
through product purchase and its consumption.
The needs, wants, drives, and desires of an individual that
lead him or her toward the purchase of products or ideas.
The motivations may be physiologically, psychologically, or
environmentally driven. (Source: American Marketing
Association).
The entire need - want - goal - action - satisfaction chain
comprises the cognition, affect and behavior components
within an individual;
It gets started with cognition
Cont.
Human needs are dormant and lie at a latent state.
They get aroused suddenly by
(i) Stimuli internal to the individual and his physiology;
Example: a person feels hungry and moves towards a
restaurant to buy some food
(ii) Stimuli in the external environment
Example: a person smells the aroma of freshly baked
cakes and enters the bakery to buy some cakes.
The marketer could also formulate strategies that help
trigger such needs.
Example: A banner or a hoarding informing people of a
food festival at attractive prices can trigger off a desire
amongst people to try out newer dishes and cuisine
Or the display of a newly launched car, can encourage
customer trail and subsequent purchase.
Cont
As consumers begin to identify and feel that a need
exists, there occurs an inner urge or a drive towards
taking an action so as fulfill the need.
This inner urge and the impelling action to put in
efforts to attain a goal and fulfill the need and thereby
attempt at satisfaction is referred to as motivation.
Psychological Needs
These needs arise out of our sociology and
psychology and as such they are also called
secondary or psychogenic needs
Eg : Need for affiliation, power, recognition, esteem
and status, etc.
During the period of socialization, we acquire such
needs.
Human beings differ amongst each other in so far
as these needs are concerned.
Goals
The goals is manifested after the needs and wants are
identified.
Two types
(1) Generic goals
General category of goals that consumers see as a means
to satisfy their needs and wants
Eg : consumer may want to buy a cell phone.
(2) Product-specific goals:
These are specifically branded products or services that
the consumers select to fulfill the generic goal.
Eg : the consumer would want to buy a Nokia or a
Samsung.
Cont
Decisions Making can be of two types
a) Programmed decision making,
b) Non-programmed decision making.
a) Programmed decision making: This is applied for problems that
are routine and regular
They may also be habitual in nature, and brand loyalty could easily
develop.
Examples: Purchases made for staples, toiletaries etc.
b) Non-programmed decision making: This is applied for problems
that arise suddenly and are unique or novel.
With respect to marketing, these are decisions related to infrequent
purchases or specialty goods and emergency goods; these are high
involvement purchases.
Examples: Purchases made for laptops, real estate etc.
Cont
Consumer Decision Making pertains to the following
decisions:
a) What to buy: Products and Services (and the
Brands?)
b) How much to buy: Quantity
c) Where to buy: Place
d) When to buy: Time e) How to buy: Payment terms.
All purchase decisions are not similar. The effort put
into each decision making is different
Cont
The types of products and / situations where we
generally have LPS:
1. These goods are ones of low involvement; they are
generally moderately priced; they are frequently
bought; there is lesser amount of risk involved.
2. These are generally recurring purchases. Exceptions:
They may also be cases where an expensive product
is being repurchased. Examples: A laptop replacing a
desktop, a second TV for the home.
LPS
RPS
Complexity
of decision
making
High
Medium
low
Time taken
to make
decisions
High
Low-High
Low
Information
Gathering
Yes
Yes
NO
Information
sources
Many
Few
Few/ None
EPS
LPS
No
Yes
RPS
Awareness and
Knowledge
1 Decision
criteria
Yes
Yes
No
Somewhat
Evaluative
Criteria
Complex
Moderate
Simple
Brands
considered
Many
Few
One(Repeat
Purchase)
Cognitive
dissonance
High
Rare
None
2 Alternative
brands
available
EPS
LPS
No
Yes
Comparisons
Awareness
and
Knowledge
1 Decision
criteria
RPS
No
Somewhat
Evaluative
Criteria
Complex
Moderate
Simple
Brands
considered
Many
Few
One(Repeat
Purchase)
Cognitive
dissonance
High
Rare
None
2 Alternative
brands
available
Evaluation of
alternatives
Purchase
EPS
LPS
RPS
High
Medium
Low
Extensive,
Internal/
External
sources
Specialty
goods
Limited, Mostly
Internal Sources
Mixed
Convenience
Limited to
internal sources
only
Few
Immediate,
Brand loyalty
One(Repeat
Purchase)