Chapter 4, Advertising And Promotion, 6/E - Belch

1. Perspectives on Consumer
Behaviour
Chapter 3
Advertising And Promotion, 6/E - Belch
Group 8
Integrated Marketing Communications
Aditya GSN Indrajit Bage N Krishna Chaitanya Neeraj Panghal Prateek Jaiswal Silpa Kamath

2. Chapter Objectives
▪ To understand the role consumer behaviour plays in the development and
implementation of advertising and promotional programs.
▪ To understand the consumer decision-making process and how it varies for
different types of purchases.
▪ To understand various internal psychological processes, their influence on
consumer decision making, and implications for advertising and promotion.
▪ To recognize the various approaches to studying the consumer learning
process and their implications for advertising and promotion.
▪ To recognize external factors such as culture, social class, group
influences, and situational determinants and how they affect consumer
behaviour.
▪ To understand alternative approaches to studying consumer behaviour.

3. An Overview of Consumer Behaviour
▪ Consumer behaviour can be defined 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.
▪ For many products and services, purchase decisions are the result of a
long, detailed process that may include an extensive information search, brand
comparisons and evaluations, and other activities. Other purchase decisions are
more incidental and may result from little more than seeing a product prominently
displayed at a discount price in a store.
A basic model of consumer decision making

4. The Consumer Decision-Making Process
Sources of Problem Recognition
▪ Problem recognition is caused by a difference between the consumer’s ideal state
and actual state. A discrepancy exists between what the consumer wants the
situation to be like and what the situation is really like.
▪ The major reasons could be
 Out of Stock
 Dissatisfaction
 New Needs/Wants
 Related Products/Purchases
 Marketer-Induced Problem Recognition
 New Products

5. The Consumer Decision-Making Process
Examining Consumer Motivations
• Hierarchy of Needs
• Psychoanalytic Theory
• Motivation Research in Marketing
 Marketing research methods used to probe the
mind of the consumer
 In-depth interviews
 Projective techniques
 Association tests
 Focus groups

6. The Consumer Decision-Making Process
Information Search
• Internal search
• External search
Perception
▪ how consumers sense external information
▪ how they select and attend to various sources of information, and
▪ how this information is interpreted and given meaning
Selective Perception Subliminal Perception
Ability to perceive a stimulus that is below
the level of conscious awareness.

7. The Consumer Decision-Making Process
Alternative Evaluation
▪ In this stage, the consumer compares the various brands or products and services
he or she has identified as being capable of solving the consumption problem and
satisfying the needs or motives that initiated the decision process. The various
brands identified as purchase options to be considered during the alternative
evaluation process are referred to as the consumer’s evoked set.
▪ Evaluative criteria are the dimensions or attributes of a product or service that are
used to compare different alternatives. Evaluative criteria can be objective or
subjective.
▪ Many marketers view their products or services as bundles of attributes, but
consumers tend to think about products or services in terms of their consequences
instead. Functional consequences Psychosocial consequences
▪ Two sub processes are very important during the alternative evaluation stage:
• the process by which consumer attitudes are created, reinforced, and changed
• the decision rules or integration strategies consumers use to compare brands and make purchase
decisions.

8. The Consumer Decision-Making Process
Attitudes
▪ A multi attribute attitude model views an attitude object, such as a product or
brand, as possessing a number of attributes that provide the basis on which
consumers form their attitudes.
 Attitude Change Strategies
• Identifying an attribute or consequence that is important and remind consumers how well the
brand performs on this attribute
• Getting consumers to attach more importance to the attribute in forming their attitude toward the
brand
• Emphasize a new attribute that consumers can use in evaluating a brand.
• Change consumer beliefs about the attributes of competing brands or product categories.

9. The Consumer Decision-Making Process
Integration Processes and Decision Rules
▪ Integration processes are the way product knowledge, meanings, and beliefs are
combined to evaluate two or more alternatives.
▪ Sometimes consumers make their purchase decisions using more simplified
decision rules known as heuristics.
Purchase Decision
Purchase intention Brand loyalty
Post purchase Evaluation
▪ Possible outcome of purchase is cognitive dissonance, a feeling of psychological
tension or post purchase doubt that a consumer experiences after making a
difficult purchase choice.

10. The Consumer Learning Process
▪ The process by which individuals acquire the purchase and consumption
knowledge and experience they apply to future related behaviour.”
▪ Two basic approaches to learning are the behavioural approach and cognitive
learning theory.
Behavioral Learning Theory
Classical Conditioning Operant Conditioning

11. The Consumer Learning Process
▪ Cognitive Learning Theory
Behavioural learning theories have been criticized for assuming a mechanistic view of
the consumer that puts too much emphasis on external stimulus factors. They ignore
internal psychological processes such as motivation, thinking, and perception; they
assume that the external stimulus environment will elicit fairly predictable responses.
The cognitive learning process

12. Environmental Influences on Consumer
Behaviour
▪ External influences on consumer behaviour

13. Environmental Influences on Consumer
Behaviour
▪ Culture
Cultural norms and values offer direction and guidance to members of a society in all aspects of their
lives, including their consumption behaviour.
▪ Subcultures
Marketers develop specific marketing programs for various products and services for these target
markets.
 Social Class
Social class refers to relatively homogeneous divisions in a society into which people sharing similar
lifestyles, values, norms, interests, and behaviours can be grouped
Social class is an important concept to marketers, since consumers within each social stratum often
have similar values, lifestyles, and buying behaviour. Thus, the various social class groups provide a
natural basis for market segmentation.
Consumers in the different social classes differ in the degree to which they use various products and
services and in their leisure activities, shopping patterns, and media habits. Marketers respond to
these differences through the positioning of their products and services, the media strategies they
use to reach different social classes, and the types of advertising appeals they develop.

14. Environmental Influences on Consumer
Behaviour
▪ Reference Groups
A reference group is “a group whose presumed perspectives or values are being used
by an individual as the basis for his or her judgments, opinions, and actions.”
Consumers use reference groups as a guide to specific behaviours, even when the
groups are not present.
Family Decision Making: An Example of Group Influences
The initiator The information provider The influencer
The decision maker The purchasing agent The consumer
 Situational Determinants
Specific usage situation Purchase situation Communications situation.