Understanding Consumer Behaviour

Jobber chap. 4

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Understanding consumers - the key questions

How do they buy?

What are their choice

criteria?

Customers

Who is important?

Where do they buy?

When do they buy?

The Decision-making Unit

1. Initiator.2. Influencer.3. Decider.4. Buyer.5. User.6. Gatekeeper.

Exercise

• Try to define the decision making unit when consumers buy the following products:– New car– Clothes– Tooth paste– Motor bike– Food– Bicycle helmet

Centreparcs

Centreparcs target their adverts at mothers who may act as ‘initiators’ in the decision to purchase a family holiday.

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Virgin Media

Virgin Media targetsits advertising at all

members of the household

decision-making unit,

with the customer benefit

of multiple online usage.

The consumer decision-making processNeed

recognition/problemawareness

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Informationsearch

Evaluationof alternatives

Purchase

Post-purchaseevaluation of alternatives

Special K

Kellogg’s Special K fulfills the needs of

their customers for a tasty low fat diet.

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Evaluation and purchase models

Normative beliefs

Personal beliefs

Purchase intentions

Purchase

Attitudes

Subjective norms

High involvement: the Fishbein and Ajzen model of reasoned action

TrialAwarenessRepeat

Purchase

Low involvement: the Ehrenberg and Goodhart repeat purchase model

Choice criteria used when evaluating alternatives

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TechnicalReliability Durability

PerformanceStyle/looks

ComfortDelivery

ConvenienceTaste

EconomicPrice

Value for moneyRunning costsResidual valueLife-style costs

SocialStatus

Social belongingConvention

Fashion

PersonalSelf-image

Risk reductionEthics

Emotions

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SEBO

The importance of reliability is stressed in this advert

for the SEBO Felix

vacuum cleaner.

Mercedes

Mercedes recognises the importance of experiential consumption in this advertisement for its cars.

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Audi

Audi advertises both the fuel

efficiency andresponsible

credentials of its TT TDI model.

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Influences on consumer purchasing behaviour

• information processing

• motivation• beliefs and

attitudes• personality• lifestyle• lifecycle

• culture• social class• geodemo-

graphics• reference

groups

Personal influences

Social influences

Consumer

The buying situation

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Determinants of the extent of problem solving

Self-image

Perceived risk

Social factors

Hedonism Differentiation and number

of alternatives

Level of involvement

Time pressure

Extent of problem solving

The consumer decision-making process and level of purchase involvement

Stage Low Involvement High Involvement

Need recognition/ problem awareness Minor Major, personally

important

Information search Limited search Extensive search

Evaluation of alternatives and the purchase

Few alternatives evaluated on few choice criteria

Many alternatives evaluated on many choice criteria

Post-purchase evaluation of the decision

Limited evaluation Extensive evaluation including media search

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Rolex

Rolex watches:

a symbol of achievement

and its rewards

Maslow’s hierarchy of needs

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Lifecycle stages

At home single

Young couple no children

Young parents

Middle-aged

parents

Empty nester

married working

Empty nester

married retired

Solitary retired

Young divorced no

children

On own young

Young divorced

with children

M-aged divorced no dep’nt children

M-aged divorced

with children

Middle-aged married no

children

Middle-aged divorced no

children

On own middle-aged

Social class categorization