Consumer behaviour
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Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
Belch and Belch define consumer behavior as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.
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[edit] Basic model of consumer decision making also refered to as EKB model (Engel, Kollat & Blackwell, 1969)
| Stage | Brief description | |
|---|---|---|
| Problem recognition | The consumer perceives a need and becomes motivated to solve a problem. | Motivation |
| Information search | The consumer searches for information required to make a purchase decision | Perception |
| Information evaluation | The consumer compares various brands and products | Attitude formation |
| Decision | The consumer decides which brand to purchase | Integration |
| Post-purchase evaluation | The consumer evaluates their purchase decision | Learning |
[edit] Problem recognition
Problem recognition results when there is a difference between one's desired state and one's actual state. Consumers are motivated to address this discrepancy and therefore they commence the buying process.
Sources of problem recognition include:
- An item is out of stock
- Dissatisfaction with a current product or service
- Consumer needs and wants
- Related products/purchases
- Marketer-induced
- New products
The relevant internal psychological process that is associated with problem recognition is motivation. A motive is a factor that compels action. Belch and Belch (2007) provide an explanation of motivation based on Maslow's hierarchy of needs and Freud's psychoanalytic theory.
[edit] Information Search
Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search.
Sources of information include:
- Personal sources
- Commercial sources
- Public sources
- Personal experience
The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world'
The selective perception process Stage Description Selective exposure consumers select which promotional messages they will expose themselves to. Selective attention consumers select which promotional messages they will pay attention to Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences Selective retention consumers remember messages that are more meaningful or important to them
You should consider the implications of this process on the development of an effective promotional strategy. First, which sources of information are more effective for the brand and second, what type of message and media strategy will increase the likelihood that consumers are exposed to our message, that they will pay attention to the message, that they will understand the message, and remember our message.
[edit] Information evaluation
At this time the consumer compares the brands and products that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision.
The relevant internal psychological process that is associated with the alternative evaluation stage is attitude formation. Belch and Belch (2007, p.117) note that attitudes are 'learned predispositions' towards an object. Attitudes comprise both cognitive and affective elements - that is both what you think and how you feel about something. The multi-attribute attitude model explains how consumers evaluate alternatives on a range of attributes. Belch and Belch (2007) identify a number of strategies that can be used to influence the process (attitude change strategies). Finally, there are a range of ways that consumers apply criteria to make decisions. Belch and Belch (2007) explain how information is integrated and how decision rules are made including the use of heuristics. The marketing organisation should know how consumers evaluate alternatives on salient or important attributes and make their buying.
[edit] Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.
[edit] Postpurchase evaulation
The EKB model was further developed by Rice (1993) which suggested their should be a feedback loop, Foxall (2005) further suggests the importants of the post purchase evaulation and that the post purchase evaluation is key due to its influences on future purchase patterns.
[edit] References
- 'The Theory of Buyer Behavior ' (Wiley, 1969)
- Engel, J., Kollatt, D. and Blackwell, R. 'Consumer Behavior ' (Dryden Press, 1978)
- D. Mercer, ‘Marketing’ (Blackwell, 1996)
- 'Behaviour of Buyer'(T.Ocean 1998)
- Belch, G. E., & Belch, M. A. Advertising and Promotion: An Integrated Marketing Communications Perspective,(6 th: New York: NY: McGraw-Hill. 2004)
[edit] General bibliography
- Bilkey, Warren J., "The Vector Hypothesis of Consumer Behavior, Journal of Marketing, Vol. 16, No. 2, Oct., 1951, pp. 137-151.
- Chisnall, P.M. (1992), Marketing: A Behavioural Analysis, McGraw-Hill, London.
- Clark, Eric, "The Want Makers", Viking, 1988. ISBN 0340320281
- Davidson, W.R., Bates, A.D., Bass, S.J. (1976), The Retail Life Cycle, Harvard Business Review, Boston, MA.
- Foxall, G. (2005.) Understanding Consumer Choice. Baingstoke. Palgrave Macmillian.
- Grunert, K.C. (1988), Research in Consumer Behavior: Beyond Attitudes and Decision Making, European Research, Vol. 16.
- Hague, D.C. (1977), Managerial Economics: Analysis for Business Decisions, Longman, Harlow.
- Howard, J., Sheth, J.N. (1968), Theory of Buyer Behavior, J. Wiley & Sons, New York, NY.
- Karmarck, A.M. (1983), Economics and the Real World, Basil Blackwell, Oxford.
- Kim, Soyoung, Littrell, Mary A., "Predicting Souvenir Purchase Intentions", Journal of Travel Research, v.38, November 1999, pp.153-162.
- Loudon, D.L. (1988), Consumer Behavior: Concepts and Applications, McGraw Hill, London.
- McNair, B. (1958), Retail Development, Harper & Row, New York, NY.
- Nicosia, F.M. (1968), "Advertising management, consumer behavior and simulation", Journal of Advertising Research, Vol. 8 No.1, pp.29-39.
- Schiffman, L.G. (1993), Consumer Behavior, Prentice Hall International, London.
- Schwartz, B. (2004), The Paradox of Choice: Why More Is Less, Ecco, New York, NY.
- Solomon, M.R. (1994), Consumer Behavior, Allyn & Bacon, London.
- Stern, L.W., El-Ansary, A.I. (1992), Consumer Behavior: An Information Processing Perspective, Prentice Hall, Englewood Cliffs, NJ.
- Termorshuizen, J.G., Meulenberg, M.T.G., Wierenga, B., "Consumer behavior in respect of milk in the Netherlands", European Review of Agricultural Economics Volume 13, Number 1 Pp. 1-22, 1986.
- Wansink B. (2006), Mindless Eating: Why We Eat More Than We Think, New York: Bantam Dell.
