Consumer Behaviour Reference: Dibb, Simkin, Pride & Ferrell

Consumer Behaviour
Reference:
Dibb, Simkin, Pride & Ferrell
Chapter 5
For use with Marketing: Concepts and Strategies 6e

By Sally Dibb, Lyndon Simkin, William M. Pride & O.C. Ferrell
ISBN 1408032147 © 2012 Cengage Learning EMEA
Q & A session
• Have you bought anything today?
• What was it?
• What made you buy that item?
• Is this a regular purchase?
• Where did you buy it?
• Do you always buy the same thing?
• How did you make up your mind which one to
choose?
Consumer buying decision process
Evaluation Post-
Problem Information of Purchase purchase
recognition search alternatives evaluation
Feedback

Objectives
• Through this week’s lessons you shall:
– Understand the different types of buying
behaviour
– Recognise the stages of the buying process and
understand how this process relates to different
types of buying decisions
– Explore some of the factors that influence the
buying decision process

Objectives (cont’d)
Understand why it is important for
marketers to attempt to understand
consumer behaviour and the role of this
behaviour in marketing strategy

Definition:
“the (buying) behaviour of final consumers –
individuals & households who buy goods and
services for personal consumption”
Draws on:
Psychology Social Psychology
Anthropology Economics
Sociology

By Sally Dibb, Lyndon Simkin, William M. Pride & O.C. Ferrell 6
Understanding Consumers:
Key Questions
Who is
important?
What are
How do their choice
they buy? criteria?
Customers
Where do When do
they buy? they buy?

TYPES OF CONSUMER BUYING BEHAVIOUR
• Routine Response Behaviour
• Limited Decision-Making
• Extensive Decision-Making
• Impulse Buying

TYPES OF CONSUMER BUYING BEHAVIOUR
Consumer
buying
decision
process and
possible
influences on
the process

THE CONSUMER BUYING DECISION PROCESS
– STAGE 1: PROBLEM RECOGNITION
• Problem recognition occurs when a buyer
becomes aware that there is a difference
between a desired state and an actual
condition;
• Can be triggered by
 Internal stimuli
 External stimuli

– STAGE 2: INFORMATION SEARCH

• Buyer (if continuing the decision process)
searches for information about products that will
resolve the problem or satisfy the need;
• Can be
 Heightened attention
 Active information search from:
 Personal / Commercial / Public / Experiential
Sources

• STAGE 3: EVALUATION OF ALTERNATIVES
– Consumers
 Seek benefits – links to brand attributes
 Attach degrees of importance
• SALIENCE (RASGO SOBRESALIENTE)
VS
• IMPORTANCE
 Develop brand beliefs = brand image
 Are assumed to have a utility function for each attribute
Identifying Alternatives:
All
Alternatives
Evoked Set Inert Set Inept Set
PROMINENT
PRODUCTS
RETRIEVAL SET IN
ENVIRONME
NT
• Stage 4: Product Selection / Purchase
• Evaluative Criteria: consider
Differences between brands / similarities
Determinant attributes
Procedural learning
• Heuristics: mental shortcuts
Rely on a product signal
Market belief – is it better if I pay more?
Country of origin as product signal
HEURISTICS: RELY ON PRODUCT
SIGNAL

Country of Origin: Czech Skoda

Current Skoda

Remind you of
And this? anything?
Skoda

Stage 4: Product Selection / Purchase

Choosing familiar brand names:
Inertia
Brand loyalty
Decision Rules:
Non-compensatory decision rules
Compensatory decision rules

Trainers:

ALSO TRAINERS:
WOULD YOU BUY / WEAR AT ANY PRICE?
IF NO = NON-COMPENSATORY!

 Stage 5: Post-Purchase Evaluation
Satisfaction / Dissatisfaction
Consumer Expectations vs
Perceived Performance
All large purchases result in cognitive
dissonance
Satisfied – tell 3 others
Dissatisfied – tell 11 others
Cognitive Dissonance:
“psychological state which occurs when a person
perceives that two cognitions (thoughts), both which
he believes to be true, do not ‘fit’ together”
 Individuals seek consistency, so to reduce

dissonance, a person can
 CHANGE HIS EVALUATION OF THE ALTERNATIVE
 SEEK NEW INFORMATION TO SUPPORT CHOICE
 CHANGE ATTITUDE

PERSONAL FACTORS
POST-PURCHASE EVALUATION - CUSTOMER COMPLAINTS

Personal Factors Influencing CBB
• Personal influencing factors are unique to a
particular person
– DEMOGRAPHIC FACTORS
• Age, gender, race, ethnic origin, income, family life
cycle & occupation
– SITUATIONAL FACTORS
• External circumstances or conditions that exist
– LEVEL OF INVOLVEMENT
• Emotional commitment and time spent searching
for a product
Psychological Factors Influencing CBB
• Psychological factors partly determine general

behaviour and thus influence consumer behaviour;
i.e.
– Perception
– Motives
– Learning
– Attitudes
– Personality
Nat King Cole Show =
Original ‘Soap’
Nat King Cole
Perception? Or Racism?
Album Cover, mid 60’s
Beyonce, 21st Century
MOTIVATION
“a need that is sufficiently pressing to
direct the person to seek satisfaction of
the need”
Maslow’s Theory of Motivation

Also called the Hierarchical Theory of
Motivation
Maslow’s Hierarchy of Needs

De Beers Target Ego Needs

LEARNING:
 Classical / Respondent Conditioning
 Stimulus-Response (Pavlov’s Dogs)
 Instrumental / Operant Conditioning
 Learn by doing / ‘correct’ response (Skinner’s Rats)
 Cognitive Interpretations
 Discovery of meaningful patterns (Gestalts)
 Social Learning
 Effect of Role Models

THINK OF SOME PREMIUM PERFUME BRANDS:
• Similar styles form a ‘gestalt’

Stimulus Generalisation:
Similar packaging (colours and/or styles)
leads consumer to ‘group’ products

Attitudes:
“Consistently favourable or unfavourable evaluations,
feeling & tendencies towards an object or idea”
Personality:
“All the internal traits and behaviours that make a
person unique”

Social Factors
• Roles and Family

• Reference Groups
• Social Classes
• Culture and Sub-Cultures

Reference Groups / Opinion Leaders

ORGANISATIONAL BUYING BEHAVIOUR ?
• Is a process and not isolated act but involves a
critical decisions points
• involves several stages, each of which yields a
decisions
• recognizes a problem than can be solved by
acquiring a specific product
• Problem recognition can be triggered by internal or
external forces.

2. General
1. Problem 3. Product
Description
Recognition Specifications
of Need
5. Acquisition
4. Supplier Organizational and Analysis
Search Buying Process of Proposals
7. Selection
6. Supplier 8. Performance
of
Selection Review
Order Routine
Three Buying Situations
(slide 1 of 4)
1. New task
2. Modified rebuy
3. Straight rebuy

THE BUYING CENTRE (TBC):
• Consists of individual who participating in the
purchasing decision and share the goals and risks
arising from the decision.
• Size of the buying centre varies, an average includes
more than 4 persons per purchase; the number of
people involved in all stages of one purchase may
be as many as 20.


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Consumer Behaviour

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

• Routine Response Behaviour

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

– STAGE 2: INFORMATION SEARCH

For use with Marketing: Concepts and Strategies 6e

Evoked Set Inert Set Inept Set

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

Stage 4: Product Selection / Purchase

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

 Individuals seek consistency, so to reduce

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

• Psychological factors partly determine general

Maslow’s Theory of Motivation

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

• Roles and Family

• Culture and Sub-Cultures

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

For use with Marketing: Concepts and Strategies 6e

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