6-7 Consumer Behavior

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Consumer Behavior
Consumer Behavior
 Consumer behavior is the study of 
how individuals, groups, and 
organizations select, buy, use, 
and dispose of goods, services, 
ideas, or experiences to satisfy 
their needs and wants. 
 Marketers must fully understand 
both the theory and reality of 
consumer behavior. 
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What Influences 
Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
How do consumers decide?
Emotions influence consumer 
decisions…
“I agree that depending on the consumers' emotions, 
they are probably not going to buy in the same way. 
For example, when I feel joy, I would tend to buy more 
things that I associate with happiness, for instance 
clothes: I would buy more, and pay lee attention to the 
price. I could also buy tickets to a show.
On the other hand, when I feel boredom, I do not want to 
go shopping, but I can buy more food, especially junk 
food that I would never buy otherwise, just because I 
don't feel like cooking.”
Consumption decisions influence 
emotions…
“We might feel that consuming alcohol can make us jolly 
because we associate it with having a good time. Since 
this is a positive feeling and connection with the product 
we will consume more of it. On the other hand, alcohol 
can also make people feel "guilty", either because of the 
health issues associated with it or because people do 
stupid things when they consume it and then feel guilty. 
So this negative feeling associated with the product will 
influence people to consume less of it.”
…but not for all products!
“When deciding to attend Lollapalooza: Cost, Bands that 
will attend, Friends that will go. Lollapalooza has an 
hedonic approach, I’m buying an experience, so the 
context is important because it determines my level of 
enjoyment, so the music played and the company I will 
have are very important.”
Toothpaste: Cost, whitening effect, breath smell effect.
Toothpaste has a more utilitarian approach, what am I 
paying v/s what I will objectively receive. 
“I think that resources and quality (but in a 
different sense) are criteria that apply to 
both decisions. But I don’t think that “who 
else is using it” weights much on the 
buying toothpaste decision. Instead, I think 
“differentiation” between the toothpastes 
(like teeth whitening toothpaste, or fresh 
breath toothpaste, for example), is crucial 
to decide which toothpaste the consumer 
will choose.”
“I think the three decision criteria that most 
people use to decide if they will attend 
lollapalooza or not are:
- Price 
- The quality of the music/bands 
- If their friends will attend or not
I think that the criteria used to decide 
whether or not to go to a music concert 
doesn't differ much from the reasons to buy 
toothpaste. The price of it, the quality of it, 
and if your friends buy it or not.” 
“I can’t imagine social aspect 
has a lot of importance; I use 
the toothpaste I think works 
best for me, not because my 
friends also use the same 
brand.”
“I think the three more important factors are (thinking 
in people my age):
- Line-up (which groups come to play at Lolapalooza 
this year): if there aren't groups that I like is unlikely 
that I would want to go. This year comes Pearl Jam, 
one of my favorite groups!
- Ticket price: this is a very relative factor, if I don't like 
the line-up I could think $200 dollars for the two days 
is a lot, but if I am a big music fan and I like the groups 
I may be willing to pay that price (which is my case)
- Date of the event: this could also be very important. 
In my case, Lolapalooza is just before exam week!!, 
so it is the only thing that could make it impossible for 
me to go.”
Relative importance of decision 
criteria
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What is Culture?
Culture is the fundamental determinant of a 
person’s wants and behaviors acquired 
through socialization processes with family 
and other key institutions.
Cultures, Subcultures, Tribes
In other words…
Culture is a map, a recipe, a codebook 
through which people in a given group think, 
classify, understand, and modify the world and 
themselves. 
People who share the same culture feel like 
they belong to a group.
Interesting facts about Chilean 
culture
 Chileans are usually extremely affectionate within the family. 
Family members kiss and hug each other and are particularly 
fond of children. Children, especially boys, are treated like little 
kings, and it is not difficult to spot the regalón, the spoiled or 
pampered child, usually the youngest in the family. 
 Young people tend to stay at home until they get married or have 
to move to another town for work reasons. These close-knit family 
relations provide Chileans with a sense of security and comfort. 
They can, however, prevent them from exploring life on their own, 
as there is often no transition period between living with one’s 
parents and setting up home as a married couple. 
Interesting facts about Chilean 
culture
 “If you are invited to a Chilean home, a gift of a bouquet of 
flowers for the hostess is appropriate. Arrive a few minutes late. 
When you arrive at the home, wait outside the door until you are 
invited in and greet the head of the household first.
 Do not give yellow roses as they indicate contempt.
 Do not give purple or black flowers as they symbolize death.
 Do not give scissors or knives as they indicate you want to sever 
the relationship.
 For a young girl's 15th birthday, a gift of gold jewelry is the norm.
 Gifts are opened when received.
 When the hostess serves coffee, that is a signal for guests that 
the dinner party is over and it is time to leave.”
Cultures change!
Fast Facts About Chilean consumers
 The average Chilean eats 87.2 kg of meat per year
 Chile is the second country in bread consumption 
(90kg/person/year)
 Chileans now drink 10l more of soft drinks/year than 10 
years ago
Cultural interview
 What differences have you found?
 How do these differences may influence 
consumption decisions?
Well, I believe that I purchase very little 
every day, you could say that I am a bit 
“thrifty”, so maybe this won’t be very 
interesting.
Alarm: the first thing I do in the morning is turn off the cellphone alarm. 
…
Shower: is a much needed service that allows me to clean myself up, 
feeling fresh and awake. There is no substitute to perform all these 
functions simultaneously.
Light: essential service at this time of year, especially if you have to 
wake up at 7am because it is still dark. If I had no light it would take 
me twice as long to do my stuff. It gives me security.
Yogurt with cereals: its my breakfast, I love it and makes me happy in 
the morning, plus satisfy my appetite. There are many brands in the 
supermarket but I always buy the same.
…
“What I find most interesting about the consumer 
behavior are all the behaviors that are behind 
every decision we take, even the smallest one and 
how marketers, understand how consumers act 
and prepare their product accordingly, in order to 
attract our attention and consume the product or 
service they are offering. It’s almost scary, as if 
they are messing with the way we think, but in 
reality they just take advantage of it and we end 
up taking decisions that we don’t tend to regret.”
“It really amazes me 
that when I think I’m 
just buying a light 
coke, there is a whole 
process behind that 
make me choose coke 
instead of any other 
drink, light instead of 
normal coke, canned 
coke instead of the 
bottle, etc.”
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-22
What Influences Consumer Behavior?
Cultural Factors
SocialFactors
Personal Factors
Social Factors
Reference groups
Opinion Leaders
Social roles and class
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Reference Groups
 Membership groups
 Primary groups
 Secondary groups
 Non-membership groups
 Aspirational groups
 Disassociative groups
Family
“For lunch, I eat what I 
have in my house. My 
mom always buys food. 
I think she goes to the 
supermarket and 
considers all brands and 
prices there. It's better 
when you pay less.”
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Personal Factors
 Age
 Life cycle stage
 Occupation
 Wealth
 Personality
 Values
 Lifestyle
 Self-concept
“When I walk, I listen to music on my IPod. 
I love iPods because I can put a lot of 
music in it, I can choose the music to play 
easily, and I also love its design. Moreover, 
I bought it three years ago when having 
branded items was more important to me.”
Age and Stage of Lifecycle
Occupation and Economic 
Circumstances
Personality
- self-confidence, 
- autonomy, 
- deference, 
- sociability, 
- defensiveness,
- adaptability
Figure 6.1 Model of 
Consumer Behavior
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-31
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Motivation
Freud’s
Theory
Behavior
is guided by 
subconscious
motivations
Maslow’s
Hierarchy
of Needs
Behavior
is driven by 
lowest, 
unmet need
Herzberg’s
Two-Factor
Theory
Behavior is
guided by 
motivating 
and hygiene
factors
Maslow’s Hierarchy
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Perception
 Selective attention: we screen most stimuli out
 Selective retention: we tend to remember what we like
 Selective distortion: we tend to interpret information in a 
way that fits our preconceptions
 Subliminal perception: we may be influenced by stimuli we 
don’t perceive
Learning
 Behavioral learning: strong drives + motivating 
cues + positive reinforcement
 Cognitive learning: learn by observing, think, 
create
Operant conditioning
https://www.youtube.com/watch?v=qy_mIEnnlF4&list=PLF302762D4EE25172
Hedonic bias
 If it is successful, it was my accomplishment
 If it was a failure, it was the product’s fault
Emotions
Huggies Dia del Amigo
https://www.youtube.com/watch?v=Orr8Ix8JX_g
Memory
Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior
The woman who needs to purchase diapers is a good example of 
someone that will have to go all over the 5 stages of purchasing. And the 
student is the opposite, he will skip some of the stages. Let’s analyze it a 
little bit closer:
The 5 steps are: Problem recognition – information search – evaluation of 
alternatives – purchase decision – post-purchase behavior.
Both will need to recognize their problems (stage one), but then, as the 
women is living outside of her home country and also she is preparing to a 
new situation (is her first baby) she will have to research a lot of 
information and also evaluate a lot of alternatives to make her decision 
(stage 2 and 3), because she doesn’t have the experience, she doesn’t 
know anything about her problem. 
On the other hand, the student will skip these steps, he knows what 
snacks he like. Also the student will probably take less time in steps 4 and 
5 because, as he is buying in a recurrent place for him, he knows the 
dealer of the snack, the way he have to pay, etc. (stage 4), and finally, he 
is already satisfied with the brand of his snack, he knows it for a long time 
so his post-purchase behavior won’t change too much.
Problem recognition
 Occurs whenever a consumer sees a significant 
difference between their current state of affairs 
and some ideal state
 Marketers can develop ads that stimulate 
problem recognition
http://www.youtube.com/watch?v=JVLMCk2FSJs
http://www.youtube.com/watch?v=JVLMCk2FSJs
SOURCES OF INFORMATION 
Information Search
CommercialPersonal
Public Experiential
Evaluation of alternatives
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Steps Between Alternative 
Evaluation and Purchase
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“A young man is shopping for a Christmas gift to his long-time 
girlfriend.”
I think that in this case the consumer will go through all five phases 
and he will spend more time in stage 2 and 3.
-Problem recognition: He recognizes his need, which is that he 
wants to give his girlfriend a Christmas present.
-Information search: He researches and tries to find out which 
would be the perfect gift that his girlfriend wants most. So he asks her 
family and friends if they know what she needs or what she would like 
to have (If he already knows what to give her, he could ask for their 
opinion). Then he asks and research where he can find this item. This 
process could be easy but it could also take a lot of time.
-Evaluation of alternatives: He will evaluate the different choices 
and decide for the best gift according to his budget. He could spend a 
lot of time trying to choose what to give her.
-Purchase decision: He will purchase the present that he thinks she 
would like that suits with his budget.
-Post-purchase behavior: As it is a gift, he won't use it. But he will 
be satisfied, happy and relieved if she likes it and if she doesn't he 
would be disappointed and frustrated.
Purchase Decision
http://www.bestbuy.com/site/olspage.jsp?id=cat13504&type=page&pageIdentity=searchDriven&useProductString=true&productString=1218860987032*1218870365250*1218862380870*1218646127726&unProductString=1218863728681*1218810049489*1218858193076*1218858583403*1218857084845*1218851719043*1218829108571*1218858735324*1218524519689*1218851199437*1218862005026&catId=pcmcat138500050001
Purchase Decision
 Expectancy-value model= compensatory
 Perceived good things about a product can help to 
overcome perceived bad things. 
 Non-Compensatory models of choice
 Heuristics
 Conjunctive (“any one under $20 and blue”)
 Lexicographic (“the best brand that has what I care
 most about”)
 Elimination-by-aspects 
Post-purchase 
 Usage
 Satisfaction
 Information search
 Word-of-mouth
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http://www.youtube.com/user/AllThatGlitters21
Satisfaction
 A person’s feeling of pleasure or 
disappointment resulting from 
comparing a product’s perceived 
performance our outcome with his/her 
expectations. 
A fact that intrigues me, specifically of post-
purchase behavior, is that sellers have to 
struggle to sell a product, but at the same 
time can not praise it, because they can 
create very high expectations, which if not 
met, will leave dissatisfied customers. It’s a 
task that I find difficult to do, is something 
paradoxical.
Figure 6.7 How Customers 
Use or Dispose of Products
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Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior
Other Decision Processes
Low Involvement
Impulse buying
High Involvement
Extended problem-solving
Behavioral Decision Theory/Economics
 Availability
 Representativeness
 Anchoring and adjustment
 Framing
 Prospect theory
Characteristics That Make a 
Difference in Business Markets
 Multiple buyers
 Number of 
customers
 Size of purchases
 Geographic 
concentration
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