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Consumer Behaviour and Target
Audience Decisions
Consumer Behaviour

Processes and activities which people
engage in when searching for, selecting,
purchasing, using, evaluating, and
disposing of products and services to
satisfy needs and desires.
A Basic Model of Consumer
Decision Making
Figure 2-1
Consumer Decision Making
Decision Stage
Psychological Process
Need Recognition
Motivation
Information Search
Perception
Alternative Evaluation
Purchase Decision
Postpurchase Evaluation
Attitude Formation
Integration
Learning
Consumer Decision Making
Decision Stage
Need Recognition
Psychological Process
Motivation
Sources of Need Recognition
Out of Stock
Dissatisfaction
New Needs
or Wants
Related Product
Purchase
Market-Induced
Recognition
New
Products
Ads Help Consumers Recognize
Needs
Maslow’s Hierarchy of Needs
Self-actualization needs
(self-development, realization)
Esteem needs
(self-esteem, recognition, status)
Social needs
(sense of belonging, love)
Safety needs
(security, protection)
Physiological needs
(hunger, thirst)
Hierarchy of Human Needs: Love,
Nurturance, Belonging
Sexy Ads May Motivate
Consumers
Sexy Ads Get Noticed
Consumer Decision Making
Decision Stage
Psychological Process
Need Recognition
Motivation
Information Search
Perception
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Information Search
Information
Search
Internal Search
•Scan memory to
recall experiences
and knowledge about
past purchase
alternatives.
External Search
•Undertaken if
internal search does
not yield enough
information.
External Sources of Information
Personal
Sources
Perception
The process by which an individual
receives, attends to, interprets, and
stores information to create a meaningful
picture of the world.
 Marketers can formulate communication
strategies based upon how consumers
acquire and use information from
external sources.

The Selective Perception
Process
Selective Exposure
Selective Attention
Selective Comprehension
Selective Retention
Selective Exposure

Occurs as consumers choose whether or
not to make themselves available to
information.

TV viewers may change channels or leave
the room during commercial breaks.
Selective Attention

Occurs when
consumer chooses
to focus on certain
stimuli while
excluding others.
 For example,
combining colour
with black and white
grabs attention.
Selective Comprehension
Consumers may interpret information
based on their own attitudes, beliefs,
motives, and experiences.
 An ad disparaging a consumer’s
favourite product may be interpreted as
biased or untruthful.

Selective Retention

Consumers do not remember all the
information they see, hear, or read –
even after attending and comprehending
it.
Advertisers Attempt to Help
Consumers Retain Information
Mnemonics (symbols, rhymes,
associations, and images) can assist in
consumers’ learning and memory
processes.
 Example: A telephone number spelling
out the company’s name.

Consumer Decision Making
Decision Stage
Psychological Process
Need Recognition
Motivation
Information Search
Perception
Alternative Evaluation
Attitude Formation
Attitude Formation is Based on
Evaluation of
Alternatives
All available brands
Brand A
Brand B
Brand C
Brand D
Brand E
Brand F
Brand G
Brand H
Brand I
Brand J
Brand K
Brand L
Brand M
Brand N
Brand O
Evoked Set of Brands
Brand B
Brand E
Brand F
Brand I
Brand M
Consumers Must Evaluate Their
Brand Choices
Evaluative Criteria
Objective
Subjective
Price
Warranty
Service
Style
Appearance
Image
Evaluative Criteria
Consumer View
•Product or service
viewed in terms of its
consequences.
Evaluative
Criteria
Marketer View
•Products are viewed
as bundles of
attributes.
Different Perspectives: The
Consumer’s
View
Will the neighbors
How does it cut
the taller grass?
be impressed with
my lawn?
How close can I
get to the
shrubs?
Is it going to be as
fun to use later this
summer?
Will it pull
that
little trailer I
saw at the
store?
Functional
Functional
Consequences
Will I enjoy having
more time for golf?
Product Is Seen As
A Set of Outcomes
Psychosocial
Consequences
Attitude

“Attitudes are learned predispositions to
respond to an object.”


Gordon Allport
A summary construct representing an
individual’s overall feelings toward an
object or its evaluation.
Consumer Attitudes Focus on
Objects
Individuals
Products
Ads
Brands
Attitudes
Toward:
Media
Companies
Retailers
Organizations
Advertising, Promotion, and
Attitudes

Advertising and
promotion are used
to create favourable
attitudes, and/or
change negative
attitudes.
 Here, the ad
attempts to change
attitudes by
highlighting added
attributes.
Consumer Decision Making
Decision Stage
Psychological Process
Need Recognition
Motivation
Information Search
Perception
Alternative Evaluation
Purchase Decision
Attitude Formation
Integration
Purchase Decision

At some point in the buying process, the
consumer makes a purchase decision.


Consumer stops searching for and
evaluating alternative brands in the evoked
set.
The purchase decision starts with a
purchase intention.

Predisposition to buy a certain brand.
Purchase Decision

The purchase decision is not the actual
purchase.
Consumer must implement decision and
make purchase.
 Additional decisions may be needed.
 Time delay often exists between making a
purchase decision and purchase itself.
 The time delay affects the marketing
strategy, and depends on:

Type of purchase to be made
 Risk involved in purchase

Brand Loyalty May Affect
Purchase Decision

Consumers may have a preference for a
certain brand, which will result in its
repeated purchase.
Integration Processes
The ways in which product knowledge,
meanings, and beliefs are combined to
evaluate two or more alternatives.
 Analysis of the integration process
focuses on the different types of
integration rules or strategies used by
consumers to decide among purchase
alternatives.

Types of Integration Strategies
Integration Strategies
Formal Decision
Rules
•Require examination
and comparison of
alternatives on
specific attributes.
Simplified Decision
Rules or Heuristics
•Easy to use and
adapt to
environmental
situations.
•Price- or promotionbased
Consumer Decision Making
Decision Stage
Psychological Process
Need Recognition
Motivation
Information Search
Perception
Alternative Evaluation
Purchase Decision
Postpurchase Evaluation
Attitude Formation
Integration
Learning
Postpurchase Evaluation
After purchase, consumer assesses the
level of performance of product or
service.
 Provides feedback from actual use of
product to influence the likelihood of
future purchases.

Satisfaction
“A judgment that consumers make with
respect to the pleasurable level of
consumption-related fulfillment.”
 Cognitive dissonance:

A feeling of psychological tension or
postpurchase doubt a consumer
experiences after making a difficult
purchase choice.
 More likely to occur when consumer has to
choose between two close alternatives.

Variations in Consumer Decision
Making
Types of
Decision
Making
Routine Problem
Solving
Limited Problem
Solving
Extended
Problem Solving
Variations in Consumer Decision
Making
Group Decision Making
 Group situations constitute many purchase
decisions.
 Reference group



“A group whose presumed perspectives or values
are used by an individual as the basis for his or her
judgments, opinions, and actions.”
Used to guide consumers’ purchase decisions even
when the group is not present.
Marketers use aspirational or dissociative reference
group influences in developing ads and promotional
strategies.
Variations in Consumer Decision
Making
Group Decision Making
Figure 2-4
Target Audience Decision
Consumer understanding is the key to
the success of any IMC plan, program,
or ad.
 The goal of an IMC plan, program or ad
is to influence the behaviour of a target
audience.

Marketing and Promotions
Process Model
Figure 2-5
Target Market Process
Identify Markets With Unfulfilled Needs
Determine Market Segmentation
Select Market To Target
Target Market and Target
Audience

Target market


The group of consumers toward which an
overall marketing program is directed.
Target audience

A group of consumers within the target
market for which the advertising campaign,
for example, is directed.
Target Market Process
Identify Markets With Unfulfilled Needs
Market Segmentation

Marketer identifies a target market by:
Identifying the specific needs of groups of
people, or segments
 Selects one or more segments as a target
 Develops marketing programs directed to
each.

Beer is Beer? Not really!
Popular
Imports
Specialties
Premium
Light
A Product for Every Segment
A Package is More Than a
Container
The Marketing Segmentation
Process Find Ways To Group Consumers
According To Their Needs.
Find Ways To Group Marketing Actions - Usually the
Products Offered - Available To the Organization.
Develop a Market/Product Grid To Relate the Market
Segments To the Firm’s Products and Actions.
Select the Product Segments Toward Which the Firm
Directs Its Marketing Actions.
Take Marketing Actions To Reach Target Segments.
Bases for Segmentation
Psychographic
Demographic
Customer
Characteristics
Socioeconomic
Geographic
Behaviour
behaviour
Outlets
Buying
Situation
Usage
Benefits
Psychographic Segmentation
Dividing the market on the basis of
lifestyle, personality, culture, and social
class.
 Criteria include:


Lifestyle
VALS
 VALS 2

Personality
 Culture
 Social class

Marketing to a Lifestyle
Abercrombie & Fitch Targets
Echo Boomers
Benefit Segmentation

The grouping of consumers on the basis
of attributes sought in a product.
Behaviouristic Segmentation

Grouping customers according to their usage,
loyalties, or buying responses to a product.




Product or brand usage.
Degree of use.
Brand loyalty.
Can be used in combination with demographic
and/or psychographic criteria to develop profiles
of market segments.
Target Audience Options:
Rossiter
Brand Loyal and Percy Perspective
Regularly buy the
Customers
firm’s product.
Favourable
Brand
Switchers
Buy focal brand but
also buy others.
NonCustomers
New category
users
Customers not
purchasing within a
product category.
Other brand
switchers
Not consistently
purchasing focal
brand.
Other brand
loyals
Loyal to another
brand.