OHT 3.

Consumer behaviour

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 OHT 3.2 Consumer buying-decision making

Figure 3.1

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 OHT 3.3

Problem recognition

• Consumers can identify or recognise a problem

independently from the marketer and look for a solution.

• Marketers can use the marketing mix to bring a problem

to consumers’ attention.

• Problem recognition requires the willingness and the

ability to fulfil the emerging need.

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 OHT 3.4

Questions consumers seek to answer by their

information search

• What kind of purchase will solve the problem?

• Where and how can the purchase be obtained?
• What information is needed to arrive at a decision?
• Where can that information be obtained?
• What are the pressures of gaining this information?

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 OHT 3.5

Types of information searches

• Ongoing search - browsing and storing information for

future reference.

• Purposeful search - having a specific objective in mind.

Bloch et al (1986)

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 OHT 3.6
Information evaluation
Consumers construct a list of performance criteria, then
assess each supplier or available brand against it.

This reduces the potential options (wide list of potential

products/services which might satisfy needs) to an
evoked set (a shortlist for serious appraisal).

Marketers influence this stage via communications

campaigns which implant images of products/services or
emphasise the importance of product/service attributes
in consumers’ minds.
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 OHT 3.7

Consumer market beliefs

• Products and brands.

• The retail outlet.
• Price.
• Promotion.
• Packaging.

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 OHT 3.8

Products and brands

Table 3.1
Source: Adapted from Duncan (1990).

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 OHT 3.9

Retail outlet

Table 3.1 cont.

Source: Adapted from Duncan (1990).

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 OHT 3.10

Price

Table 3.1 cont.

Source: Adapted from Duncan (1990).

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 OHT 3.11

Promotion

Table 3.1 cont.

Source: Adapted from Duncan (1990).

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 OHT 3.12

Packaging

Table 3.1 cont.

Source: Adapted from Duncan (1990).

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 OHT 3.13
Making a decision
• Consumers construct a list of performance criteria, then
assess each supplier or available brand against it.
• This reduces the potential options (wide list of potential
products/services which might satisfy needs) to an
evoked set (a shortlist for serious appraisal).
• Negotiations may take place to finalise purchase details,
e.g. cash or credit payment terms, trade in discounts,
delivery dates, etc.
• Marketers influence this stage via communications
campaigns which implant images of products/services or
emphasise the importance of product/service attributes
in consumers’ minds.
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 OHT 3.14 Post-purchase evaluation
Has the purchase lived up to its expectations?
Marketers can help reduce cognitive dissonance by:
• Ensuring that customers’ needs and wants have been
carefully researched.
• Tailoring the marketing mix to suit the audience.
• Painting a realistic picture of the product/service in all
advertising literature.
• Making sure consumers’ expectations are rooted in
reality - for example letting the consumer test the
product/service before purchase.
• Good after sales care.
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 OHT 3.15

Impact of dissatisfied customers

Dissatisfied customers can tell up to eleven other people

about their bad experiences, which is two to three times
more people than a satisfied customer will talk to.

Smith, 1993

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 OHT 3.16

Routine problem solving buying situations

These tend to be:

• Routine day to day purchases/services.
• Low risk purchases.
• Low priced.
• Frequently purchased goods/services.
• Where loyalty to favourite brands is often shown
(favourite breakfast cereal, etc.).

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 OHT 3.17

Routine problem solving model

Three stage model suggested by Ehrenberg and Goodhart

(1980)

• Stage 1 - Awareness of the brand or product.

• Stage 2 - Trial the brand or product.
• Stage 3 - Repeat purchase.

Over time the repeat purchase becomes habitual.

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 OHT 3.18

Limited problem solving buying situations

These tend to be:
• Buying situations that occur less frequently, e.g. a
holiday, new TV, etc.
• Situations that involve more deliberate decision making
than more routine buying problems.
• Purchases that are moderately expensive.
• Purchases that will be expected to last a long time.
• Purchases that are perceived to have a greater risk.
• Purchases where some form of information search and
evaluation takes place.
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 OHT 3.19

Extended problem solving buying situations

• These represent a more serious investment of money,

time and effort, e.g. new car or home.
• These purchasing situations occur infrequently.
• Involves gathering as much information and analysis as
possible.

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 OHT 3.20
Environmental influences on
consumers’ buying behaviour
• Socio-cultural - e.g. the need for individuals to conform
with norms of social groups, etc.
• Technological - e.g. technological innovation allowing
cheaper production of products, database technology
allowing companies to create personal relationships with
their customers.
• Economic and competitive influences - e.g. during a
recession consumers may be more reticent about
purchasing more expensive items.
• Political and regulatory - e.g. the backing of a regulatory
body can provide reassurance to consumers.
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 OHT 3.21

Psychological influences on consumers’ buying

behaviour

• Personality.
• Perception.
• Learning.
• Motivation.
• Attitudes.

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 OHT 3.22 Maslow’s hierarchy of needs

Figure 3.3

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 OHT 3.23 Influences on culture

Figure 3.4

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 OHT 3.24

Reference groups

• Membership groups.

• Aspirant groups.

• Dissociative groups.

• Family.

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 OHT 3.25 The family as a decision-making unit

Figure 3.6

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