Report in Marketing

1. Consumer Behavior

2. Understand how consumer
cognitive (thinking) processes and
limitations, affect, beliefs, social
influences, and other contextual
factors influence consumer
decision making, choices, and
behavior
Appreciate how these insights can
be used to design and implement
effective marketing strategies
Appreciate individual and segment
differences in process and outcome

3. I'm the fellow who goes into a restaurant, sits down and patiently waits while
the waitresses do everything but take my order. I'm the fellow who goes into a
department store and stands quietly while the sales clerks finish their little
chitchat. I'm the man who drives into a gasoline station and never blows his
horn, but waits patiently while the attendant finishes reading his comic book.
"Yes, you might say, I'm a good guy. But do you know who else I am? I am the
fellow who never comes back, and it amuses me to see you spending
thousands of dollars every year to get me back into your store, when I was
there in the first place, and all you had to do to keep me was to give me a little
service; show me a little courtesy."
Source: From a Better Business Bureau bulletin submitted by An Arkansas
Reader to Dear Abby

4. Defining Consumer
Behavior
Consumer Behavior is the Process
Involved When Individuals or Groups
Select, Use, or Dispose of Products,
Services, Ideas or Experiences
(Exchange) to Satisfy Needs and
Desires.

5. Problem Recognition
Consumer Information
Processing
Evaluation of Alternatives
Purchase
Post Purchase Evaluation

6. Problem Recognition
 Our goal is to find a solution to the
problem by each potential customer so
therefore we have to identify the need or
the problem first.
Ex.
-The need to constantly communicate with
their children even travelling.
Then we clearly want to identify the
problem to reduce or eliminate parents’
anxiety over the welfare of their children.

7. Information Search
 After recognizing the need, consumer is motivated to conduct and
information search.
 Sources of information:
 Internal Sources- personal experiences with the product
 External Sources-outside consumers personal experiences
Time, effort and expense dedicated to information
search depends on:
 Degree of risk involved in the purchase
 Amount of expertise with the product category
 Actual cost of the search
 Ex. You went to facebook and able to see some online
advertisements.

8. Customers evaluate products as bundles of
attributes
Brand attributes
Product features
Aesthetic attributes
Price
Customers place different levels of importance on
attributes
Important considerations in the evaluation stage:
Products must be in the evoked set
Consumers’ choice criteria must be understood
Marketing programs must be designed to influence
consumers’ opinions about product or brand image
Evaluation of Alternatives

9. Cellphone
Iphone 5s
Samsung Galaxy Note 3
LG L7
Iphone 5s

10. Consumer Buying Decision Process
Successive Sets Involved in Consumer Decision Making

11. Purchase intention and the act of buying are distinct
concepts
Potential intervening factors between intention and
buying (car example):
Unforeseen circumstances
Angered by the salesperson or sales manager
Unable to obtain financing
Customer changes mind
Key issues in the purchase decision stage:
Product availability
Possession utility
Purchase Decision

12. Possible outcomes in the postpurchase stage:
(1) Delight
(2) Satisfaction
(3) Dissatisfaction
Postpurchase Evaluation

14. 1. Consumer & Psychological Variables
2. Social Influences
3. The Purchase Situation

15. Consumer & Psychological Influences
MOTIVATION
- The motivation to buy, happens as a result of the drive stimulus which in
result of an unsatisfied need.
-The need that moves a person to action is called “drive”
PERCEPTION
- People see, hear, taste, and feel differently. What may be beautiful to
one may not be beautiful to another person.
-Process by which an individual selects, organizes, and interprets
information to form a cohesive picture about an entity
Perceptions affect consumer behavior
However, remember that individuals can perceive the same entity in
different ways

16. LEARNING
- a change of behavior occurring as a result of past experience.
-repeat purchase possibly if being satisfied.
LIFESTYLE
- The individual’s mode of living is called lifestyle and may be
identified by his activities, interest, and opinion.
ATTITUDE
- The buying behavior affected by his attitude.
-It may be defined as person’s feeling about
something like product, an advertisement, idea….
It may be affected by:
1. Family influences
2. Peer Group Influences
3. Information
4. Experience
5. Personality

17. SOCIAL INFLUENCES
Decision could come from:
1. PERSONAL INFLUENCES
- The view, opinions, and behavior of other persons oftentimes influence
the purchasing decision of the consumer.
:: Opinion Leaders ::Word-of-mouth
2. REFERENCE GROUPS
- These are groups of people that are looked upon by a concerned
member when forming an attitude about a particular topic.
3. The FAMILY
4. SOCIAL CLASS- refers to a group people who have approximately equal position
as viewed by others in the society.
5. CULTURE- The set of values, beliefs, attitude and behavior patterns shared by
the members of a society and transmitted to the next generation through
socialization

18. The Purchase Situation
Purchase Task- is derived from the reason WHY the consumer is making a
purchase and this affects buying behavior.
Social Surroundings- refer to the situation of people present in the purchase
area.
Physical Surroundings
Temporal Effects- The TIME of the day the purchase is made and the time
available for shopping.
Antecedent States- consumer’s mood or the amount of money he has in his
pocket can affect his buying behavior.