MAN1075

Marketing Principles

Week 2 Consumer Behaviour

Dr Sheena Karangi
Module Leader
 Recap

• Modern concept of Marketing

• Business approaches (market focused & Production focused)
• Efficiency & Effectiveness
• Kano Model
• SWOT
• BCG Matrix
• Ansoff Matrix

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 Overview

Part A
• Explore the changing context of consumer behaviour
• Characteristics Affecting consumer behaviour
• Types of buying decision behaviour

Part B
• Consumer decision making process
• What is Dissonance
• Buyer decision process for new products

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 PART A

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 What is Consumer behaviour ?

Consumer buyer behaviour : the process and influences on final consumers, individuals
and households, who buy goods and services for personal consumption

Online shopping Impulse shopping

Instore shopping Pre-determined shopping

Status luxury items Everyday items

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Understanding the Marketplace and Customer Needs

Market Offerings – Products, Services, and Experiences

Market offerings are some combination of products, services, information, or
experiences offered to customers to satisfy a need or want.

Marketing myopia is focusing only on

existing wants and losing sight of
underlying consumer needs.

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 Understanding the Marketplace and Customer Needs
Customer Value and Satisfaction

• Consumers usually face a broad array of products and services that might satisfy a
given need. How do they choose among these many market offerings?

Customers
• Value and
satisfaction

Marketers
• Set the right level
of expectations
The modern Consumer

Affluent

Has more More

information demanding

Many sources for Wants more

purchases Consumer choice

More knowledgeable Easily bored

Complex, emotional
reasons behind
purchase
The changing context of consumer
behaviour

Global
consumer
Co-
culture
creation of
value

Use of
social
media

New context of consumer behaviour

Jobber & Chadwick-Ellis, “Principles and Practice of Marketing, Ninth Edition"

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Changes in behavioural trends

Weight Watchers has focused

on changes in behavioural
trends to show how fad dieting
is not for everyone and to
position the brand as being
‘here to help’.

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Understanding consumers: the key
questions

Who is important?
How do they buy?

Consumers What are their choice

criteria?

Where do they buy? When do they buy?

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The roles of the buying centre

1. Initiator
2. Influencer
3. Decider
4. Buyer
5. User

Jobber & Chadwick-Ellis, “Principles and Practice of Marketing, Ninth Edition" 12

The influence of internet

The Internet is influencing how people buy; from

how they search for product alternatives, to
comparing purchase options 365 days, 24/7, any
time, any place, anywhere modes of purchasing.

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Characteristics Affecting Consumer Behaviour
Cultural Factors
Culture
• Set of basic values, perceptions, wants, and
behaviors learned by an individual from family
and other important institutions
Subculture
• Group of people with shared value systems based
on common life experiences and situations
• Total market strategy integrates ethnic themes
and cross-cultural perspectives within a brand’s
mainstream marketing
Social class
• Relatively permanent and ordered divisions in a
society whose members share similar values,
interests, and behaviors

Armstrong, G., Kotler with Opresnik, M.O., (2017), Marketing an Introduction (Global edition) 13th edition, Pearson Education.
Social Factors

• Family is the most important consumer-buying organization in society.

• Role and status can be defined by a person’s position in a group.
 Social Factors
Groups and Social Networks

• Online social networks

• Buzz marketing
• Social media sites
• Virtual worlds
• Word of mouth
• Opinion leaders

Copyright © 2016 Pearson Education, Inc. 5-16

Personal Factors

Lifestyle is a person’s pattern of living as expressed in his

or her psychographics. ( activities interest or opinions)
Lifecycle stages

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Personal choice criteria

Lurpak launches new product ranges

using the intangible idea of new
food adventures rather than the
tangible product features.

Go to the website to see how Lurpak

Butter is using advertising creatively
to promote its new product.

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 Personality
• Refers to the unique psychological characteristics that distinguish a person or group

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Personal Factors

Age and family Economic

Occupation
life-cycle situation

Personality
Lifestyle and self-
concept
Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

Armstrong, G., Kotler with Opresnik, M.O., (2017), Marketing an Introduction (Global edition) 13th edition, Pearson Education.
Maslow’s hierarchy of needs
Psychological Factors

Characteristics Affecting Consumer Behaviour

Beliefs and attitudes

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Types of Buying Decision Behaviour

Complex buying behavior

Habitual buying behavior

Variety-seeking buying behavior

Complex Buying Behaviour

• Typically
– Significant differences between brands and high involvement
• Customers Spend More Time and Effort in Information Search and
Evaluation
– Complex products
– Perceived risk
– Personal / emotional significance
• Examples
– Cars, computers, clothes
The high-involvement model of decision-
making
Fishbein-Ajzen Model

Personal
beliefs Attitudes

Purchase
Purchase
intentions
Normative Subjective
beliefs norms

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Habitual Behaviour

• Typically:
– Few perceived differences between brands, low involvement
• ‘Boring’ Products
– Functional
– No emotional / personal significance
– Low cost
– Frequent purchase
• Examples: toilet rolls, rice, matches
The low-involvement model of decision-
making

Ehrenberg and Goodhart Model

Repeat
Awareness Trial Purchase

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Variety Seeking Behaviour

• Typically:
– Low involvement, but significant differences between brands
• Decisions
– Based on novelty and desire to experiment rather than on utility
– Frivolity
– Large numbers of brands
– Low relative cost
• Examples
– Alcoholic drinks, confectionery, exotic foods
Perceptions of Risk in the Buying Process

• Economic Risk
– Resources invested in purchase - house
• Physical Risk
– Fear of physical harm - cheap meat
• Performance Risk
– Product / service is unknown quality - unfamiliar brand
• Psychological Risk
– Feared loss of status – e.g. Dacia car
 PART B

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The consumer decision-making
process

Need recognition or
Problem awareness

Information search

Evaluation of alternatives

Purchase

Post-purchase evaluation of decision

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1. Problem (Need) Recognition

• Awareness of Problem/Need Raised by:

– Routine depletion
– Change in circumstances
• Problem
– Perceived as the difference between current and
desired situation
• The Role of Advertising
– Sometimes, potential customers become aware of their
problem through advertising
2. Information Search

• Involves the Identification of Alternative Solutions by

Searching- online search SEO’s or Google
• Internal search
– Relevant information from memory
– Role of advertising and branding
• External search
– Friends, family, work colleagues
– Commercial sources - adverts, brochures, salespeople
– Third party reports - media
3. Evaluation of Alternatives

• Firstly
– Reduction of solutions to a manageable shortlist
• Evoked set
– A shortlist of brands for careful evaluation
• Secondly: Ranking of the Evoked Set
– Cost
– Availability
– Suitability

– It has fuelled the growth of

comparison websites
4. Purchase Decision

• Selection of:
– Quantity
– Quality
– Exact product characteristics
– Brand
– Retailer (etailer) and method of payment

The transaction- how easy is it to buy i.e. online, availability

of credit
5. Post-Purchase Behaviour

• Satisfaction
– Transaction
– Performance
– Durability
• Dis-satisfaction
– Cognitive dissonance
– How can you find this out? – contact the customer, ask
for feedback
 What is Dissonance?

The Opposite of Satisfaction

Often Occurs With Products that are:

– Expensive – e.g. car
– Difficult - many alternatives each with unique benefits
– – e.g. holidays
– Irrevocable – e.g. house-buying
The Buyer Decision Process for New Products

The adoption process is the mental process an individual goes through from
first learning about an innovation to final regular use.
Stages in the adoption process include:

Awareness Interest Evaluation Trial Adoption

The Buyer Decision Process for
New Products

Individual Differences in Innovativeness

• Innovators
• Early Adopters
• Early Mainstream
• Late Mainstream
• Lagging Adopters
The Buyer Decision Process for
New Products
 Summary of your learning

• You now have an understanding of what is

Consumer Behaviour
• What may influence consumer behaviour such
as family and friends
• The stages of the buying decision based on both
complex and habitual purchases
• The 5 steps leading towards a buying decision
• The buying decision around new products

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 Reading material

Essential Textbook:
• Armstrong, G., Kotler with Opresnik, M.O., (2020), Marketing an Introduction (Global edition) 14h edition, Pearson
Education. Chapter 5
• Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015). Marketing: An Introduction. 3rd edition, Pearson Education.
Chapters 5.

Supplementary reading:

• Jobber & Chadwick-Ellis, “Principles and Practice of Marketing, Ninth Edition” chapter 3
• Ajzen, I. (2012). The Theory of Planned behaviour, in Van Lange, P.A.M., Kruglanski, A.W. and Higgins, E.T. (eds),
Handbook of theories of social psychology, Vol. 1, 438-59, London, Uk:Sage
• Ajzen, I. and Fishbein, M. (1980), Understanding attitudes and predicting social behaviour, Englewood Cliffs, NJ: Prentice-
Hall.
• Ajzen, I., and Fishbein, M. (2005) The influence of attitude on behaviour, Albarracin, d., Johnson, B.T. and Zanna, M.P.
(Eds.), The handbook of attitudes. Mahwah, NJ, US: Erlbaum.
• Ehrenberg, A.S.C. and Goodhart, G.J. (1980), How Advertising Works, J. Walter Thompson/MRCA
• Pearson Education, (2018) Goodwill Industry: Consumer Behaviour – understanding consumer and business buyer
behaviour, Available online at:
http://media.pearsoncmg.com/ph/streaming/bp/2013/mktg/MKTG2013_Goodwill_Buyer_Full.html (Accessed 19/11/2018).
• Rose, S., Hair, N., & Clark, M. (2011). Online Customer Experience: A Review of the Business-to-Consumer Online
Purchase Context. International Journal of Management Reviews, 13 (1) 24-39.
• Solomon, M. (2013) Consumer Behaviour – a Global Edition (10th edition) Pearson Education (Prentice Hall) Harlow,
England

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 End

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