Consumer Behaviour 1

Consumer Behaviour 1

1. Definition: Process that individuals or groups go through to select, purchase, use and dispose of goods, services, ideas to satisfy their needs and desires.

2. I. The consumer buying decision problem

   • 5 stages
     • 1. Problem recognition
       • The need recognition is the first and most important step in the buying process. If there is no need, there is no purchase. This recognition happens when there is a lag between the consumer’s actual situation and the ideal and desired one.
         • Example: the ability to be able to go to your work by car in 20 minutes every morning (ideal situation) rather than lose three hours in transit because you do not have a car and you live in the countryside (actual situation) is something that means a lot to you. So you will have a buying behavior to purchase a car. Even if the price is important.
           • The recognition of a need:
             • Internal stimuli (physiological need felt by the individual as hunger or thirst) which opposes the external stimuli such as exposure to an advertisement, the sight of a pretty dress in a shop window
             • Three different type of needs:
               • Functional need: the need is related to a feature or specific functions of the product or happens to be the answer to a functional problem.
                 • Social need: the need comes from a desire for integration and belongingness in the social environment or for social recognition
                   • Need for change: the need has its origin in a desire from the consumer to change.
     • 2. Information research
       • Once the need is identified, it’s time for the consumer to seek information about possible solutions to the problem. He will search more or less information depending on the complexity of the choices to be made but also his level of involvement.
         • Consumer will seek information with: Internal information: this information is already present in the consumer’s memory. It comes from previous experiences he had with a product or brand and the opinion he may have of the brand.
           • External information: External information: This is information on a product or brand received from and obtained by friends or family, by reviews from other consumers
     • 3. Alternative evaluation
       • Once the information collected, the consumer will be able to evaluate the different alternatives that offer to him, evaluate the most suitable to his needs and choose the one he think it’s best for him.
         • In order to do so, he will evaluate their attributes on two aspects. The objective characteristics (such as the features and functionality of the product) but also subjective (perception and perceived value of the brand by the consumer or its reputation).
           • The process will then lead to what is called “evoked set”. “The evoked set” (aka “consideration set”) is the set of brands or products with a probability of being purchased by the consumer (because he has a good image of it or the information collected is positive).
           • Inept set” is the set of brands or products that have no chance of being purchased by the shopper (because he has a negative perception or has had a negative buying experience with the product in the past).
     • 4. Purchase decision
       • Now that the consumer has evaluated the different solutions and products available for respond to his need, he will be able to choose the product or brand that seems most appropriate to his needs. Then proceed to the actual purchase itself.
         • his decision will depend on the information and the selection made in the previous step based on the perceived value, product’s features and capabilities that are important to him.
     • 5. Post-purchase behaviour
       • Once the product is purchased and used, the consumer will evaluate the adequacy with his original needs (those who caused the buying behavior). And whether he has made ​​the right choice in buying this product or not. He will feel either a sense of satisfaction for the product (and the choice). Or, on the contrary, a disappointment if the product has fallen far short of expectations.
     • III. Influences on consumer behaviour
       • Marketers try to ascertain what influences in consumers' lives affects this process.
         • There are three main categories: internal, situational and social influences.
           • Internal: Perception,motivation, Learning,Perception, attitudes, personality, age groups, lifestyles
             • Perception: Is the process by which people select, organize and interpret information from the outside world.
               • Ex. People associate the textures of fabrics and other surfaces with product qualities.
             • Motivation: Internal state that drives us to satisfy needs. Once we activate a need, a state of tension exists that drives the consumer towards some goal that will reduce that tension eliminating that need.
               • EX. Maslow hierarchy of needs. 1st Psychological, 2nd Safety, 3rd belongigness, 4th, Ego Needs, 5th Self-Actualization.
           • SituationaI influences: physical environment,Time
             • When, where and how consumers shop.
               • Ex. Marketer know that dimensions of the physical environment, including such factors as doctors, smells, lighting,music andeven temperature can significantly influence consumption.
           • Social influences: Culture, Subculture, Spcial Class, Group membership.
   • Remember the example about the pizzeria, Indian Food and sushi.

3. II. Heuristics

   • Consumers often rely on decisions guidelines when weighting the claims that companies make. These heuristics help simplify the decision-making process.
     • Ex. Price=Quality
       • Brand Loyalty: where people buy from the same company over and over because they believe that the company makes superior goods.
         • EX. designer clothes companies try to create a bond with customers from earky age by offering exclusive child collections (D&Gjunior)
       • Contry of origin: we assume that a product has certeain characteristicsif it comes from certain country.
         • Ex. A person assume that the Japanese made Honda would be a bit more reliable than the Ford