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Chapter 5
Consumer Behavior:
How and Why We Buy
Chapter Objectives
 Define consumer behavior and explain why
consumers buy what they do
 Describe the prepurchase, purchase, and
postpurchase activities
 Explain how internal factors influence
consumers’ decision-making processes
 Show how situational factors influence
consumer behavior
 Explain how consumers’ relationships influence
their decision-making processes
 Show how the Internet offers consumer-toconsumer marketing opportunities
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Real People, Real Choices:
Decision Time at (RED)
 What is the optimal way to generate the
most money for the Global Fund?
– Option 1: Expand the (RED) model based on
what the research revealed about the teen
market
– Option 2: Stick with the existing (RED) model
– Option 3: Expand the (RED) model to include
more traditional non-profit aspects
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Decisions, Decisions
 Consumer behavior:
The process we use to select,
purchase, use, and dispose of goods,
services, ideas, or experiences to
satisfy needs/desires
 Internal, situational, and social factors
influence consumer behavior
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Figure 5.1
The Consumer Decision-Making Process
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Consumer Behavior Varies
 The amount of effort expended by
consumers varies according to:
– Extended problem-solving vs. habitual
decision making
– Involvement:
Relative importance of perceived
consequences of the purchase
– Perceived risk:
Choice of product has potentially negative
consequences
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Figure 5.2
Extended Problem Solving vs. Habitual
Decision Making
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Decision-Making Process:
Step 1: Problem Recognition
 Occurs when consumer sees a
significant difference between current
state and ideal state
 Marketers can develop ads that
stimulate problem recognition
– Example: Radio ads promoting restaurants
which are played at lunchtime
– Example: TV ad showing excitement of
owning a new car
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Figure 5.3, Part 1
Marketers’ Responses to Decision-Process
States
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Decision-Making Process:
Step 2: Information Search
 Consumers need adequate information
to make a reasonable decision
– Consumers search memory and the
environment for information
– Internet search engines, portals, or “shopping
robots” are being increasingly relied upon
 Behavioral targeting:
– Marketers deliver ads for products
consumers look for by watching
what they do online
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It’s Debatable
Class Discussion Question
Internet search engines and portal Web sites allow
consumers to access a variety of products and
services worldwide, as well as locate multiple
sellers of a particular product or service.
Some people feel that this has enabled individuals
to become “better” consumers. Others feel that the
proliferation of manufacturers, distributors, and
retailers overloads consumers decision-making
capabilities. Where do you stand?
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Figure 5.3, Part 2
Marketers’ Responses to Decision-Process
States
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Decision-Making Process:
Step 3: Evaluation of Alternatives
 A consumer identifies a small number
of products in which he or she is
interested, then narrow choices and
compares the pros/cons of each
– Evaluative criteria:
Product characteristics consumers use to
compare competing alternatives
– Marketers identify and discuss important
evaluative criteria
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Evaluative Criteria
In this ad, PowerBar
attempts to influence
consumers’ beliefs about
the evaluative criteria they
should use when they
choose a snack
Do you feel that this ad will
be successful? Why or why
not?
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Decision-Making Process:
Step 4: Product Choice
 Consumers often rely on heuristics to
make decisions
– Heuristics:
A mental rule of thumb used for a speedy
decision, such as . . .
• Price equals quality
• Brand loyalty
• Country of origin
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Advice
Web sites like
Tripadvisor.com
help consumers
Decision-Making Process:
Step 5: Postpurchase Evaluation
 Consumer satisfaction/dissatisfaction
after purchase of product is critical
– Degree of satisfaction is influenced by
whether or not expectations of product quality
are met/exceeded
– Marketing communications must create
accurate expectations for the product
– Cognitive dissonance is common
Visit Planetfeedback.com
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Figure 5.4
Influences on Consumer Decision Making
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Perception
 Perception:
– Process by which we select, organize, and
interpret information from outside world
 Three factors are necessary for
perception to occur
– Exposure: capable of registering a stimulus
– Attention: mental processing activity
– Interpretation: assigning meaning
to a stimulus
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Subliminal Perception?
True subliminal advertising
embeds images or words into
an ad that cannot be perceived
consciously in an attempt to
motivate consumers to action
by appealing to their ID
The ad at left borrows from this
idea but is not actually a
subliminal ad as the images
embedded in the cola are easily
perceived
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Motivation
 Motivation:
Internal state that drives us to satisfy
needs by activating goal-oriented
behavior
 The hierarchy of needs categorizes
motivation as being related to five
different types of needs
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Figure 5.5
Maslow’s Hierarchy of Needs & Related
Products
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Learning
 Learning:
– A relatively permanent change in behavior
caused by information or experience
 Behavioral learning
– Classical conditioning
– Operant conditioning
– Stimulus generalization
 Cognitive learning theory
– Observational learning
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Attitudes
 Attitudes:
– Lasting evaluations of a person, object, or
issue
– Three attitude components
• Affect (feeling): emotional response
• Cognition (knowing): beliefs or knowledge
• Behavior (doing): intention to do something
– Marketers decide which attitude component
will drive consumer preferences
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Personality
 Personality:
– The set of unique psychological
characteristics that consistently influences the
way a person responds to situations in the
environment
 Personality traits:
– Innovativeness, materialism, self-confidence,
sociability, need for cognition
 Self-concept
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Marketing Personality
Some products
are marketed as a
means of personal
expression, others
are targeted toward
expressing or
improving an
individual’s self
concept
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Age Group
 Nostalgia is often used to
market goods
 Goods/services often
appeal to a specific age
group
 Purchases are often
associated with a
particular stage in the
family life cycle
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Lifestyle
 Lifestyle:
A pattern of living that
determines how people
choose to spend their time,
money, and energy
 Psychographics:
Groups consumers
according to psychological
and behavioral similarities
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Situational Influences
on Consumers’ Decisions
 Many situational influences shape purchase
choices:
– Important dimensions of the physical environment
include décor, smells, and lighting
– Arousal and pleasure determine consumers’ reaction
to store environment
– Entertainment helps enhance the shopping experience
 Time is a situational factor
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Social Influences
on Consumer Decisions
 We are members of many groups that
influence our buying decisions:
– Culture/subcultures
– Social class
– Group memberships
– Opinion leaders
– Gender roles
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Culture and Subcultures
 Culture:
– The values, beliefs, customs, and tastes
produced or practiced by a group of people
– Includes key rituals like weddings and funerals
– Cultural values are important
 Subculture:
– A group within a society who share a distinctive
set of beliefs, characteristics,
or common experiences
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Emerging Lifestyle Trends
 Social movements within society also
influence consumer choices
 Consumerism
– A social movement that attempts to protect
consumers from harmful business practices
– Resulted in the Consumer Bill of Rights:
• Right to be safe; right to be informed; right to
be heard; right to choose freely
 Environmentalism
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Emerging Lifestyle Trends
 Environmentalism
– Seeks conservation and improvement of the
natural environment
• Kyoto Protocol—reduces greenhouse gasses
• Environmental stewardship—firms protect or
enhance environment in business activities
• Green marketing—marketing strategy that
supports environmental stewardship
• Greenwashing—environmentally friendly
claims that are exaggerated
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Social Class
 Social class:
– The overall rank or social standing of groups
of people within a society, according to
factors such as family background, education,
occupation, and income
– Status symbols such as luxury products allow
people to flaunt their social classes
– Mass-class consumers are targeted by many
marketers
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Group Memberships
 Reference group:
– A set of people a consumer wants to please
or imitate and that therefore has an effect on
an individual’s evaluations, aspirations, or
behavior
– Conformity means that people change
behavior due to group pressure
• Referred to as the bandwagon effect
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Opinion Leaders
 Opinion leaders
– Are people who influence others’ attitudes or
behaviors because others perceive them as
possessing expertise about the product
– Have high interest in product category
– Update knowledge by reading, talking with
salespeople, etc.
– Impart both positive and negative product
information
– Are among the first to buy goods

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Gender Roles
 Gender roles
Society’s expectations regarding
appropriate attitudes, behaviors, and
appearance for men and women
– Consumers often associate “sex-typed”
products with one gender or the other
– Sex roles are constantly evolving
• Metrosexuals
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Consumer-to-Consumer
E-Commerce (C2C)
 C2C E-Commerce:
– Online communications and purchases that
occur among individuals without directly
involving the manufacturer or retailer
 Popular online C2C formats include:
– Gaming
– Chat rooms, rings, lists, and boards
– Social networks
– Online brand communities
– Blogs
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Online Brand Communities
Eventful.com allows
fans to create
demand for
performances
where they live
Eventful.com
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Real People, Real Choices:
Decision Made at (RED)
 Julia chose option 1
– Julia felt (RED) should complement
partnerships with international brands with
smaller special editions appealing to youth
– Implementation: (RED) skateboard was
introduced in 2008 to target teens
– Measuring success: Brand tracking study
measured awareness, consideration,
preference, and brand momentum
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Keeping It Real: Fast-Forward to
Next Class Decision Time at NCR
 Meet Brad Tracy, VP of Americas
Marketing Deployment for NCR
 NCR recently released a new
generation of point of sale (POS)
workstations
 The decision to be made:
Should NCR continue to attend a
particular trade show?
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Pearson
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Publishing as Prentice Hall
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