Chapter 4

Perspectives on
Consumer Behavior

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 Learning Objectives
LO1 Discuss why an understanding of consumer behavior is
valuable in developing advertising and promotional
programs.
LO2 Describe the steps in the consumer decision-making
process.
LO3 Explain the influence on consumer behavior of
psychological processes like perception and motivation.
LO4 Discuss behavioral learning theory and cognitive learning
theory.
LO5 Explain the influence of external factors like culture and
subculture influences.
LO6 Identify new ways to study consumer behavior.

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 An Overview of Consumer Behavior
Consumer Behavior
• Process and activities people engage in with relation to
products and services to satisfy their needs and desires.
• Searching for.
• Selecting.
• Purchasing.
• Using.
• Evaluating.
• Disposing of.

Purchase decisions may be influenced by

the personality or lifestyle of the consumer.
This ad for Telluride Ski Resort appeals to
those who enjoy the skier lifestyle.
©McGraw-Hill Education. Source: Telluride Ski & Golf Resort
 Figure 4-1 Basic Model of
Consumer Decision Making

Jump to Appendix 1 long image

description
©McGraw-Hill Education.
 The Consumer Decision-Making Process 1
Problem Recognition
• Consumer perceives a need and gets motivated to solve the
problem.
• Caused by difference between consumer’s ideal state and
actual state.
• Sources:
• Out of stock.
• Dissatisfaction.
• New needs or wants.
• Related products or purchases.
• Marketer-induced problem recognition.
• New products.
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 The Consumer Decision-Making Process 6
Information Search
• Internal search: Information retrieval that involves recalling:
• Past experiences.
• Information regarding various purchase alternatives.

• External search: Seeking information from external sources.

• Internet, personal, and public sources.
• Marketer-controlled sources.
• Personal experience.

©McGraw-Hill Education.
 Exhibit 4-7

AngiesList.com is a valuable source of information for

consumers engaging in external searches online.
©McGraw-Hill Education. Source: Angie’s List
 The Consumer Decision-Making Process 7
Information Search continued
• Extent of external source to be used depends on:
• Importance of purchase decision.
• Effort needed to acquire information.
• Amount of past experience relevant.
• Degree of perceived risk associated with purchase.
• Time available.

©McGraw-Hill Education.
 The Consumer Decision-Making Process 8
Perception
• Receiving, selecting, organizing, and interpreting information
to create meaningful picture of the world.
• Depends on:
• Internal factors.
• Characteristics of a stimulus.

In this ad for Simply Orange, the

use of color and context
influences the consumer’s
perception and helps promote the
urge to purchase orange juice.

©McGraw-Hill Education. Source: Simple Orange Juice Company

 The Consumer Decision-Making Process 14
Alternative Evaluation
• Comparing brands that have been identified as capable of:
• Solving the consumption problem.
• Satisfying the needs or motives that initiated the decision process.

• Evoked set: Subset of all brands of which consumer is aware.

• Size depends on:
• Importance of the purchase.
• Time and energy spent comparing alternatives.
• Top-of-mind awareness; reminder advertising.

©McGraw-Hill Education.
 Exhibit 4-11

The ad from the

Michigan Economic
Development
corporation presents the
many benefits of
Michigan and encourages
prospective businesses to
consider it in their
evoked set of places to
locate or relocate.

©McGraw-Hill Education. Source: Michigan Economic Development Corporation

 The Consumer Decision-Making Process 15
Alternative Evaluation continued
• Evaluative criteria and consequences.
• Evaluative criteria: Dimensions or attributes of a product that are used
to compare different alternatives.
• Objective or subjective.
• Viewed as product or service attributes.
• Functional consequences: Concrete outcomes of product or service
usage.
• Tangible and directly experienced by consumers.

©McGraw-Hill Education.
 The Consumer Decision-Making Process 16
Alternative Evaluation continued
• Evaluative criteria and consequences. continued
• Psychosocial consequences: Abstract outcomes that are more
intangible, subjective, and personal.
• Subprocesses:
• Process by which consumer attitudes are created, reinforced, and
changed.
• Decision rules or integration strategies used to compare brands and make
purchase decisions.

©McGraw-Hill Education.
 The Consumer Decision-Making Process 17
Attitudes
• Learned predispositions to respond to an object.
• Theoretically summarize consumer’s evaluation of an object.
• Represent positive or negative feelings and behavioral
tendencies.

©McGraw-Hill Education.
 Exhibit 4-12

This Michelin ad stresses

advantages over the
competition. The Michelin
Defender tire allows cars to
stop up to 31 feet shorter (than
the competition) and drive up
to 21,000 miles longer (than
the competition).

©McGraw-Hill Education. Source: Michelin North America, Inc.

 The Consumer Decision-Making Process 22
Purchase Decision
• Purchase intention:
• Predisposition to buy a certain brand by matching purchase motives
with attributes of brands considered.
• Brand loyalty:
• Preference for a particular brand that results in repeated purchases.

©McGraw-Hill Education.
 Figure 4-5 Brands That Have the Most Brand Loyalty

Category Winnera Category Winnera

Airline JetBlue Ice Cream Ben & Jerry’s
App-based Rideshare Lyft Laptop Computer Microsoft Surface
Athletic Footwear Nike Online Retailer Amazon
Automotive Hyundai Online Video Streaming Netflix
Casual/Fast Casual Panera Pizza Domino’s
Dining
Credit Card Discover Social Networking Sites Instagram
Energy Drinks Red Bull

a
Brands listed have highest loyalty ranking in Brand Keys 2016 Customer Loyalty Engagement Index.

©McGraw-Hill Education. Source: Brand Keys, Inc.

 The Consumer Decision-Making Process 23
Postpurchase Evaluation
• Satisfaction occurs when consumer’s expectations are met or
exceeded.
• Dissatisfaction occurs when product performance is below
expectations.
• Cognitive dissonance: Psychological tension experienced after
a difficult purchase choice.
• Postpurchase communication is important.

©McGraw-Hill Education.
 The Consumer Decision-Making Process 24
Variations in Consumer Decision Making
• Many purchase decisions based on habitual or routine choice
process.
• Marketers need to keep brands in consumer’s evoked set.
• Marketers of new brands or those with a low market share face a
challenge.
• A more complicated decision-making process occurs when
consumers have limited experience in purchasing a particular
product or service.

©McGraw-Hill Education.
 Environmental Influences on Consumer Behavior 1
Culture
• Complexity of learned meanings, values, norms, and customs
shared by members of society.
Subcultures
• Smaller segments within a culture, whose beliefs, values,
norms, and patterns of behavior set them apart from the
larger cultural mainstream.
• Social class:
• Homogeneous divisions in a society into which people sharing similar
lifestyles, values, norms, interests, and behaviors can be grouped.

©McGraw-Hill Education.
 Exhibit 4-18

This ad for Giorgio Armani's

fragrance Si Passione, is meant
to appeal to the growing
Hispanic subculture in the U.S.

©McGraw-Hill Education. Source: Giorgio Armani S.p.A

 Environmental Influences on Consumer Behavior 2
Reference Groups
• Group whose presumed perspectives or values are being used
by an individual as basis for judgments, opinions, and actions.
• Types: Associative, aspirational, or dissociative.
• Can include families.
Situational Determinants
• Specific situation in which consumers plan to use the product
or brand directly affects their perceptions, preferences, and
purchase behaviors.
• Types: Usage, purchase, and communications situation.

©McGraw-Hill Education.