IMC
&
Consumer Behavior
Learning Objectives
• Objective 1: Define the consumer market and construct a simple
model of consumer buyer behavior.
• Objective 2: Describe the four major factors that influence
consumer buyer behavior.
• Objective 3: List and define the major types of buying decision
behavior.
• Objective 4: Describe the stages in the buyer decision making
process.
Consumer Markets and Buyer Behavior
Consumer buyer behavior is the buying behavior of final
consumers—individuals and households that buy goods and
services for personal consumption.
Consumer markets are made up of all the individuals and
households that buy or acquire goods and services for
personal consumption.
Why Consumer Behavior Matters?
How & Why NOKIA Failed
https://www.youtube.com/watch?v=e-Cpg_KR_z4
Why Consumer Behavior Matters?
Using Consumer Psychology to Understand Buyer Behavior - Coca-Cola Life
https://www.youtube.com/watch?v=aGfdubLAtY8
How Consumer Behavior Works for Business?
How CB helps marketers? (Part 1)
https://www.youtube.com/watch?v=Jxe8Tgnz2SA
How Consumer Behavior Works for Business?
How CB helps marketers? (Part 2)
https://www.youtube.com/watch?v=iWuYUhSHXHg
How Consumer Behavior Works for Society?
How Consumer Behavior Works for Society?
Elevator of Shame
https://www.youtube.com/watch?v=J930Rut_J6E
Ice Cream Toilet for preventing pool/public urination
https://www.youtube.com/watch?v=8saMaQUl5sQ
Walking While Texting
https://www.youtube.com/watch?v=tm2lfv3_ELc
https://www.youtube.com/watch?v=0i4vQVP_B6U
Musical Highway for speed control
https://www.youtube.com/watch?v=Uucy_blcSrg
Model of Consumer Behavior
Figure: The Model of Buyer Behavior
Characteristics Affecting Consumer Behavior
Factors Influencing Consumer Behavior
Characteristics Affecting Consumer Behavior
Cultural Factors
• Culture is the most basic cause of a person’s wants and
behavior. And human behavior is largely learned.
• Culture is the set of basic values, perceptions, wants, and
behaviors learned by a member of society from family and
other important institutions.
Characteristics Affecting Consumer Behavior
Cultural Factors
Subcultures are
groups of people
within a culture
with shared value
systems based on
common life Targeting Hispanic Americans: Burger King
sponsors an annual family-oriented
FÚTBOL KINGDOM national soccer tour in eight
experiences and major Hispanic markets in USA
situations.
P&G introduced its Cover Girl
Queen Latifah line is specially
formulated ”to celebrate the
beauty of women of color.”
5-12
Characteristics Affecting Consumer Behavior
Cultural Factors
Social classes are society’s relatively permanent and ordered
divisions whose members share similar values, interests, and
behaviors.
• Measured as a combination of occupation, income,
education, wealth, and other variables
• Major social classes:
✓Upper Class
✓Middle Class
✓Working Class
✓Lower Class
Characteristics Affecting Consumer Behavior
Social Factors
Groups and Social Networks
Membership Aspirational Reference
Groups Groups Groups
Opinion leader
• Groups with • Groups an • Groups that A person within a reference
direct individual form a group who, because of special
influence wishes to comparison skills, knowledge, personality, or
and to which belong to or reference other characteristics, exerts social
a person in forming influence on others.
belongs attitudes or
behavior
Characteristics Affecting Consumer Behavior
Social Factors
Groups and Social Networks
• Online social networks
• Buzz marketing
• Social media sites
• Virtual worlds
• Word of mouth
• Opinion leaders
Characteristics Affecting Consumer Behavior
Social Factors
• Family is the most important consumer-buying organization in society.
• Husband’s family background influences financial, assets & other durable BB
• Husband’s family background influences grocery, home appliances etc. BB
• Roles & Status: A person belongs to many groups—family, clubs,
organizations, online communities. The person’s position in each
group can be defined in terms of both role and status.
Characteristics Affecting Consumer Behavior
Personal Factors
• Age and life-cycle stage
• Occupation affects the goods and services bought by consumers.
• Economic situations including income, spending, savings & interest
rate.
• Lifestyle is a person’s pattern of living as expressed in his or her
psychographics.
• Personality refers to the unique psychological characteristics that
distinguish a person or group.
Lifestyle based marketing
Personality based marketing
Characteristics Affecting Consumer Behavior
Psychological Factors
Motivation
Perception
Learning
Beliefs and attitudes
Characteristics Affecting Consumer Behavior
Psychological Factors
A motive (or drive) is a need that is sufficiently pressing to direct the
person to seek satisfaction of the need.
Motivation research refers to qualitative research designed to probe
consumers’ hidden, subconscious motivations.
Characteristics Affecting Consumer Behavior
Psychological Factors
Figure 5.4 - Maslow’s Hierarchy of Needs
Characteristics Affecting Consumer Behavior
Psychological Factors
Perception is the process by which people select,
organize, and interpret information to form a
meaningful picture of the world.
Perceptual Processes
Selective Selective Selective
attention distortion retention
Characteristics Affecting Consumer Behavior
Psychological Factors
Selective attention is the tendency for people to screen out
most of the information to which they are exposed.
Selective distortion is the tendency for people to interpret
information in a way that will support what they already
believe.
Selective retention is the tendency to remember good points
made about a brand they favor and forget good points about
competing brands.
Characteristics Affecting Consumer Behavior
Psychological Factors
• Learning is the change in an individual’s behavior
arising from experience and occurs through the
interplay of:
Drives Stimuli Cues Responses
Reinforcement
Characteristics Affecting Consumer Behavior
Psychological Factors
A belief is a descriptive thought that a person has about
something based on:
• knowledge
• opinion
• faith
An attitude describes a person’s relatively consistent
evaluations, feelings, and tendencies toward an
object or idea.
Types of Buying Decision Behavior
FIGURE: Types of Buying Behavior
Complex Buying Behavior
• Consumers are highly involved in a purchase and perceive significant differences
among brands.
• When the product is expensive, risky, purchased infrequently, and highly self-
expressive.
Marketers of high involvement products must understand the information-
gathering and evaluation behavior of high-involvement consumers.
They need to help buyers learn about product-class attributes and their relative
importance.
They need to differentiate their brand’s features, perhaps by describing the brand’s
benefits using print media with long copy.
Dissonance-reducing buying behavior
It occurs when consumers are highly involved with an expensive, infrequent, or
risky purchase but see little difference among brands.
After the purchase, consumers might experience post-purchase dissonance (after-
sale discomfort)
To counter such dissonance, the marketer’s after-sale communications should
provide evidence and support to help consumers feel good about their brand
choices.
Habitual buying behavior
• Habitual buying behavior occurs under conditions of low-consumer involvement
and little significant brand difference.
• Low-cost, frequently purchased products, for example, take table salt.
• Consumers have little involvement in this product category—they simply go to
the store and reach for a brand.
• Consumers do not form strong attitudes toward a brand; they select the brand
because it is familiar.
• Ad repetition is needed to create brand familiarity
• Acquiring shelf-space to increase visibility
• A little differentiation will give you an extra mileage
Habitual buying behavior
Charmin toilet tissue offers Ultrastrong, Ultrasoft, and Freshmate (wet) versions
“soften your bottom line”
Variety-seeking buying behavior
• Situations characterized by low consumer involvement but significant perceived
brand differences.
• Consumers often do a lot of brand switching.
• In most cases, brand switching occurs for the sake of variety rather than because
of dissatisfaction.
• Create switching barriers:
- Contractual agreement
- Credits
- Infrastructural development (building outlets, neon-sign etc.)
- Equipment providing / leasing
The Buyer Decision Process
FIGURE: Buyer Decision Process
The Buyer Decision Process
Need Recognition
Need recognition is the first stage of the buyer
decision process, in which the consumer
recognizes a problem or need triggered by:
• Internal stimuli
• External stimuli
The Buyer Decision Process
Information Search
Information search is the stage of the buyer
decision process in which the consumer is
motivated to search for more information.
•Sources of information:
• Personal sources
• Commercial sources
• Public sources
• Experiential sources
The Buyer Decision Process
Evaluation of Alternatives
Alternative evaluation is the stage of the buyer
decision process in which the consumer uses
information to evaluate alternative brands in the
choice set.
The Buyer Decision Process
Purchase Decision
Purchase decision is the buyer’s decision about
which brand to purchase.
• The purchase intention may not be the purchase
decision due to:
• Attitudes of others
• Unexpected situational factors
The Buyer Decision Process
Postpurchase Behavior
Postpurchase behavior is the stage of the buyer
decision process in which consumers take
further action after purchase, based on their
satisfaction or dissatisfaction.
The Buyer Decision Process
Postpurchase Behavior
Cognitive dissonance is
buyer discomfort caused
by postpurchase conflict.
Thank You
