Consumer

Behavior
 Consumer
Behavior
Consumer Behavior is the study of consumers’ choices during
searching, evaluating, purchasing and using products and services that
they believe would satisfy their needs
https://www.youtube.com/watch?v=aH0Y-315uJs\

https://www.instagram.com/p/CpAVypZNhpW/
Students

To get your company’s

name out there, you need
to make sure.
 Students

To get your company’s

name out there, you need
to make sure.
Consumer Decision Making Process
“Every decision you make reflects your evaluation of who you are”

Post-purchase
Purchase (Conversion) evaluation (Repurchase)

Evaluation of Alternative
(Consideration)

Information Search
(Research)
Need Recognition
(Awareness)
Consumer Decision Making Continuum
“Every decision you make reflects your evaluation of who you are”
 Level of Involvement
The level of involvement in buying decisions may be considered a continuum from decisions
that are fairly routine (consumers are not very involved) to decisions that require extensive
thought and a high level of involvement.

High Low
Involvement Involvement
 Level of Involvement and
Consumer Buying Behavior
Model Of Consumer Behavior
 Motivation
Motivation is the driving force that implies people to act and reflects the reason or
reasons one has for acting or behaving in a particular way

P&G mission is “branded products and services of quality and value

that improves the lives of the world’s consumers”

Marriott’s mission statement is “ to enhance the lives of our customers

by creating and enabling unsurpassed vacation and leisure
experiences .”
 Motivation
Motivation is the driving force that implies people to act and reflects the reason or
reasons one has for acting or behaving in a particular way

How motive, needs and goals shape consumer

behavior ?

Motive

?
? ?
• Focus on the needs of their consumers than on the
products produced or sold

• Producing products that will satisfy consumers’ needs

such that the company stays in the forefront of the
search for new and effective solution to consumers’
desires.

• https://www.youtube.com/watch?v=bVoyVm52FKY
 Motivation
Motivation is the driving force that implies people to act and reflects the reason or
reasons one has for acting or behaving in a particular way

How motive, needs and goals shape consumer

behavior ?

Need

?
?
• Biogenic needs and Psychogenic needs

• Need arousal at a specific moment in time can be

caused by
1. Psychological arousal : Decrease in blood sugar
level
2. Cognitive arousal : Facebook reminding users of
friends’ birthday
? https://www.youtube.com/watch?v=isnIkO2NR0w
• Consumers’ needs change over time although the
manners of how they satisfy changes over time.
 Motivation
Motivation is the driving force that implies people to act and reflects the reason or
reasons one has for acting or behaving in a particular way

How motive, needs and goals shape consumer

behavior ?

Goals

?
? ?
• Sought after results of motivated behavior

• Buyers’ actions are driven by:

1. Generic Goals
2. Product specific goals

https://www.youtube.com/watch?v=fPVmpdRXuw8
 Motivation
Motivation is the driving force that implies people to act and reflects the reason or
reasons one has for acting or behaving in a particular way

How motive, needs and goals shape consumer

?
behavior ?

How do we classify needs?

? ?
Maslow’s Need Hierarchy Theory

• Abraham Maslow first introduced the concept of a

hierarchy of needs in his 1943 paper, titled "A
Theory of Human Motivation,“
• People are motivated to fulfill basic needs before
moving on to other, more advanced needs.
• Maslow believed that these needs are similar to
instincts and play a major role in motivating
behavior
 Students

To get your company’s

name out there, you need
to make sure.
 Motivation
Motivation is the driving force that implies people to act and reflects the reason or
reasons one has for acting or behaving in a particular way

How motive, needs and goals shape consumer

? ?
behavior ?

How do we classify needs?

? ?
How the hidden motives impacts consumer
2. Maslow’s Need Hierarchy Theory
behavior

• Abraham
Sharply
seen hierarchy
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These motives are often unclear to outsiders and may show the

• People are motivated to fulfill basic needs before

moving
• Brand on towealth/success
symbolizes other, more advanced
(will feel needs.
Maslow believed that these needs are similar to
•important/respected)
• It will show I’m trendy and fashion
instincts and play a major role in motivating
• It is Preferred brand with celebrities so will be special
behavior
 Motivation
Motivation is the driving force that implies people to act and reflects the reason or
reasons one has for acting or behaving in a particular way

How motive, needs and goals shape consumer

? ?
behavior ?

How do we classify needs?

? ??
How the hidden motives impacts consumer
2. Maslow’s Need Hierarchy Theory
behavior

••
Abraham
• and
How Maslow
Why consumers

Online
usefirst introduced the concept of a
technology?
hierarchy of needs in his 1943 paper, titled "A
Theory of Human Motivation,“
People are motivated
interaction to fulfill basic needs before
amongst consumers’
• moving
Reviews andon to other, more advanced needs.
comments
• Maslow believed that these needs are similar to
• https://www.youtube.com/watch?v=UfawgQJICU8
instincts and play a major role in motivating
behavior
 Perception
The process by which individuals select, organize and interpret stimuli into a
meaningful and coherent picture of the world

How we see the world around us?

• https://www.youtube.com/watch?v=LurFpFTi5kU
• https://www.youtube.com/watch?v=u3ybWiEUaUU

• It’s not what actually is so, but what consumers think is so, that
affects their actions and buying habits

• To the marketer, consumers’ perceptions are much more important

than their knowledge of objective reality.
 Perception
The process by which individuals select, organize and interpret stimuli into a
meaningful and coherent picture of the world

What influences customer perception?

• Customer perception is influenced by both direct and indirect

interactions with your business.
• Factors such as
❑ social media,
❑ online reviews,
❑ pricing,
❑ quality,
❑ influencers, and
❑ CX
 Perception
The process by which individuals select, organize and interpret stimuli into a
meaningful and coherent picture of the world

Why is customer perception important?

•Customer perceptions affect your brand

image
•Customer perceptions influence
purchasing decisions
 Perception
The process by which individuals select, organize and interpret stimuli into a
meaningful and coherent picture of the world

How to improve customers’ perception of your brand?

•Provide customer support

•Share customer success stories
•Encourage company-wide collaboration
•Support social causes:
 Perception
The process by which individuals select, organize and interpret stimuli into a
meaningful and coherent picture of the world

How to improve customers’ perception of your brand?

•According to CX Trends Report, 63

percent of customers want to buy from
socially responsible companies, and 54
percent want to buy from companies
that prioritize diversity, equity, and
inclusion in their communities and
workplace.
 Sensory Systems
Sensation refers to the immediate response of our sensory receptors to basic stimuli

01 Sight
Sensory Input: Eye

Marketers communicate
meaning on a visual
channel using a
product’s color, size, and
styling.

https://www.youtube.co
m/watch?v=-4L50dvXvL
g&t=65s
 Sensory Systems
Sensation refers to the immediate response of our sensory receptors to basic stimuli

01 Sight Touch 02

Sensory Input: Skin

Touching a product influences

persuasion and could be used as a

Scent Sound
persuasive tool.
04

Taste 05
 Sensory Systems
Sensation refers to the immediate response of our sensory receptors to basic stimuli

01 Sight Touch 02

03 Scent
Sensory Input: Nose 04
Like color, odor can also stir emotions and memory.

Scent Marketing is a form of sensory marketing that

we may see in detergents, and more.

https://www.youtube.com/watch?v=xUiCxL8rnfM
 Sensory Systems
Sensation refers to the immediate response of our sensory receptors to basic stimuli

01 Sight Touch 02

Sound 04

Scent
Sensory Input: Ears
03
https://www.youtube.com/watc
h?v=VGa1imApfdg

Taste
 Sensory Systems
Sensation refers to the immediate response of our sensory receptors to basic stimuli

01 Sight Touch 02

03 Scent Sound 04

Taste 05

Sensory Input: Mouth

 Sensory Systems
Sensation refers to the immediate response of our sensory receptors to basic stimuli

01 Sight Touch 02

Sensory Input: Eye Sensory Input: Skin

https://www.youtube.com/watch?v=-4L
50dvXvLg&t=65s

03 Scent Sound 04

Sensory Input: Ears

Sensory Input: Nose https://www.youtube.com/watch?v=VGa

Taste 05
https://www.youtube.com/watch?v=xUi 1imApfdg
CxL8rnfM

Sensory Input: Mouth

 Sensory Threshold

• We do not have an infinite capacity to detect all levels of

energy
• To be sensed, a stimulus must be strong enough to be
detected; loud enough to be heard; concentrated enough
to smell and; bright enough to be seen
• The point at which a stimulus is strong enough to be
detected by activating a sensory receptors is called as a
Threshold
• Two general kinds of sensory thresholds for each sense
are – Absolute and Differential threshold
 Sensory Threshold

Absolute Threshold
The smallest possible strength of a stimulus that can be
detected half the time
There is no change in the intensity of the stimulus while
determining the absolute threshold.

Example: Two people riding together may first spot the billboard
at different times
 Sensory Threshold
Differential Threshold or Just Weber’s law
Noticeable Difference • The JND between two stimuli is not an
The minimum amount of change required in the absolute amount but an amount relative to
intensity of a stimulus, for someone to be able to
interpret a difference the intensity of the first stimulus
• The stronger the initial stimulus, the greater
There needs to be a change in the intensity of the
stimulus while determining the difference threshold
the additional intensity needed for the
second stimulus to be perceived as
Example: Changing iconic symbols without losing different.
consumer recognition

https://www.youtube.com/watch?v=Y6cqvqCMaNI

https://www.youtube.com/watch?v=wrIjvo_xrrk
 Elements of Perception

Focusing attention on certain sights, sounds,

tastes, touches, or smells in your
Interpretation environment.

Organize stimuli into groups and

Selection
perceive them as unified whole

Organization
Assign meaning to our experiences
 Elements of Perception

It occurs when consumers tune into messages

Selective that they find pleasant or with which they are
1 Exposure sympathetic

Selective Consumers’ heightened awareness of stimuli

Perceptual Selection 2 Attention that meets their needs and interests and
minimal awareness of stimuli irrelevant to their
needs

3 Perceptual We tend to see and we don’t see what we

Defence don’t want to see
Attention
 Elements of Perception

Interrelationship between the stimulus itself and the

Figure environment or context within which it appears
1 and https://www.youtube.com/watch?v=PXhsOpOT-ZA
Ground

Perceptual Organization
People’s instinctive tendency to group stimuli
2 Grouping together so that they become a unified picture
Geslet (In German, pattern
or impression
or configuration)
Psychology Principles
People will fill in blanks to perceive a
3 Closure complete object whenever an external
stimulus partially matches that object
 Interpretation

Stereotyping Physical
01 02
Appearance
https://www.youtube.com/
watch?v=vOX0XrxYqpc

Descriptive
03 Halo Effect Terms
04

05
First Impression
 Learning
Learning induces changes in our behavior arising from experience

What is Learning?

• The process by which individuals acquire the purchase and

consumption knowledge and experience that they apply to future
related behavior

• According to Kotler, ‘learning involves changes in an individual’s

behavior arising out of the experience’. Most of the human behavior
is learned over time, out of the experience.
Elements of Learning Theories

Motivation • Unfilled needs lead to motivation

Cues • Stimuli that direct motives

Response • Consumer reaction to a drive or cue

• Increases the likelihood that a response

Reinforcement will occur in the future as a result of a cue
 Memory
The processes that allow us to record and later retrieve experiences
and information related to products, services, and consumption
experiences.
Model Of Consumer Behavior
What Influences Consumer Behavior?
• Cultural factors
– Culture
– Subcultures
– Social classes
What Influences Consumer Behavior?
• Social factors
– Reference groups
– Cliques
– Family
– Roles and status
Reference Groups
• Membership groups
– Primary vs. secondary
• Aspirational groups
• Dissociative groups
• Opinion leader
Family
• Family of orientation vs. family of procreation
What Influences Consumer Behavior?
• Personal factors
– Age/stage in life cycle
– Occupation and economic
circumstances
– Personality and self-concept
– Lifestyle and values
 How Consumer Behavior is helpful
for Marketers
Knowledge of consumer behavior can be an important competitive
Competitive advantage while formulating marketing strategies.
1 Advantage
Paying close, regular attention to consumer behavior can help you
Predicting spot trends in their actions as they begin to emerge. The sooner you
2 marketing spot these trends, the more efficiently you can shift your marketing
trends efforts to support them
Consumer Behavior The data allows marketers to keep an eye on is an opening for
the development of new products or services. If customers are
Identifying
3
consistently performing a particular behavior, or expressing
room for new needs that the business does not currently address, marketers
products. may find that there’s room in the market for them to expand
their offerings.
Helps
4 Personalize The Having adequate consumer insights and a deep understanding of
Buyer’s Journey audience’s buying process helps you personalize their buyer
journey. Research shows that personalization results in greater
consumer engagement, repeat sales, and brand advocacy.
 How Marketing impacts
Consumer Behavior

Using imagery and word associations is a great way to attract

attention to your company brand. This causes your audience to
Audience’s associate your product with things they already see as hip and
emotional trendy.
response https://www.youtube.com/watch?v=yqorn7q3cz4

Brand imagery Marketing affects consumer behavior is by evoking

and messaging emotions such as nostalgia and fear.
https://www.youtube.com/watch?v=LI0hiJGVzAM

Audience’s
memories The more people react to your marketing campaigns, the more
they will talk about them. And the more they discuss your brand
and products, the more likely people are to buy them.
https://www.youtube.com/watch?v=rdQrwBVRzEg