Elements of Marketing

Topic 2: Consumer Behaviour

Stephan Tseng
UNSW Business School
[email protected]
 CHAPTER 5
Consumer behaviour

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 Consumer behaviour
• Articulate the steps in the consumer buying
process.
• Describe the difference between functional
and psychological needs.
• Describe factors that affect an information
search.
• Discuss postpurchase outcomes.
• List the factors that affect the consumer
decision process.
• Describe how involvement influences the
consumer decision process.

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 Concept map

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 The consumer decision process

Need Information Alternative Post-

Purchase
recognition search evaluation purchase

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 Need recognition

Need recognition

Functional needs Psychological needs

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 Need recognition (cont.)

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 Search for information

Internal search Consumer refers to

for information their own memories
and knowledge

Information
search

Consumer refers to
External search friends, family,
for information salespeople and
commercial
exposure

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 External search for information

BlackMilk Clothing Pty Ltd..

Visual content influences our consumption behaviour

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 Factors affecting consumers’
search processes

Perceived vs
Perceived
benefits costs

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 Locus of control
Internal locus of control = more search activities
External locus of control = fate, external factors

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 Actual or perceived risk
Performance risk

Psychological risk Financial risk

Physiological risk Social risk

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 Evaluation of alternatives:
attribute sets
Alternative
evaluation
Universal

Retrieval

Evoked

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 Evaluation of alternatives
In your opinion, what makes the perfect holiday?

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 Evaluative criteria
List some evaluative criteria when buying
clothes for an important job interview.

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 Determinant attributes
• Product features that are important to the buyer
• Features on which competing brands or stores are
perceived to differ

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 Determinant attributes and the
process of evaluation

The Organic and Quality Foods website has a range of

information about the benefits of buying organic produce.
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 Consumer decision rules

Shutterstock.com/March Marcho

© pio3/Shutterstock
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 Multi-attribute model

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 Purchase and consumption
Increase
conversion rate

Reduce real or virtual

abandoned carts

Merchandise in stock

Reduce the
actual waiting time

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 Postpurchase

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 Customer satisfaction
• Marketers can take several steps to ensure
postpurchase satisfaction, such as:
– demonstrating correct product use
– building realistic expectations
– providing a money-back guarantee
– encouraging feedback
– periodically making contact with customers.

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 Postpurchase dissonance
• Occurs when a consumer questions the
appropriateness of their purchase
• Especially likely for products that are expensive,
infrequently purchased, don’t work as intended
or are associated with high levels of risk
• Warranties and guarantees help minimise
postpurchase dissonance

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 Customer loyalty
• Loyalty is a combination of purchasing behaviour
and attitude (liking the brand).

• Loyal customers will only buy certain brands and

shop at certain stores, and they include no other
firms in their evoked set.

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 Negative word of mouth
Occurs when consumers spread negative
information about a product, service or store
to others

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 Factors influencing the consumer decision
process

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 Psychological factors: motives

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 Needs and wants

© nbnserge/Shutterstock
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 Psychological factors: attitudes
• An attitude is a person’s enduring evaluation of
their feelings about, and behavioural tendencies
towards, an object or idea.
• Attitudes are learned, long lasting and develop over
time.
• Attitudes are comprised of cognitive, affective and
behavioural components.

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 Psychological factors: attitudes (cont.)
Based on positive reviews
(cognitive component) and positive
feelings (affective component)
many people went to see the latest
John Wick movie (behavioural
component) and came away with a
positive attitude.

© Kevin Winter/Staff/Getty Images

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 Psychological factors: perception
Perception is the process
by which consumers
select, organise and
interpret information to
form a meaningful picture
of the world.

Source: © 2016 reproduced courtesy of Brisbane City Council

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 Psychological factors: learning
Learning is a change in a person’s thought process or behaviour that
arises from experience.

© Justin Sullivan/ Staff/Getty Image

Showcasing watch capabilities and benefits as the ‘wearable part of your everyday life’
provides the consumer with information to form selection attributes or store in memory
for future purchase.

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 Psychological factors: lifestyle
• The way consumers spend their time and money to
achieve certain goals
• A component of psychographics
• Why do we buy the brands we buy?

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 Social factors: family

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Children influence parents’ purchasing decisions.
 Social factors: reference groups

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Celebrities such as Beyoncé and Jay Z, considered a ‘power couple’, can be part of
a consumer’s reference group, influencing their purchasing decisions.

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 Social factors: culture
• Exists in the form of visible artefacts
– behaviour
– dress
– symbols
– physical settings
– ceremonies
• Also manifests as underlying values
– thought processes
– beliefs
– assumptions
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 Situational factors

Situational factors tend to override psychological

and social factors when it comes to the actual act of
purchasing:
-purchasing situation
-shopping situation
-temporal states

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 Influencing the buying decision

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 Involvement and consumer buying decisions

Elaboration likelihood model

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 Types of buying decisions
• Extended problem-solving
• Limited problem-solving
– impulse buying
– habitual decision-making

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