Consumer behavior-Decision Making

Consumer Behavior
Chapter 8
Decision Making
N.Menakan BBA(Hons) Spl (MKG)

Figure 1-1 Stages in the Consumer’s Purchasing Process
Need Recognition Alternative Search
Alternative
Evaluation
Post Purchase
Evaluation
Purchase
Decisions
Social influences
Marketing influences
Situational influences
Psychological influences

• Figure 1-2 An Overview of influences on Consumer Decision Making
Social influences Marketing influences Situational influences
Psychological influences
Consumer Decision Making

• Behavioral scientist have become increasingly aware of the powerful
effects of the social environment and personal interactions on human
behavior. In terms of consumer behavior,
1. Culture and Subculture
2. Social class,
3. and Reference group
influences have been related to purchase and consumption decisions.

• Culture is one of the most basic influences on an individual’s needs, wants,
and behavior, since all facets of life are carried out against the background
of the society in which an individual lives.
• Cultural antecedents affect everyday behavior, and there is empirical
support for the notion that culture is a determinant of certain aspects of
consumer behavior.
• Culture values are transmitted through three basic organizations:
1. The Family
2. Religious Organizations
3. Educational Institutions
Sub-Culture types
Nationality
Geographical location
Religion
Race and caste
Gender
Age

• What is the important here is that different social classes tend to have
different attitudinal configurations and values, which influences the
behavior of individual members.

1.Upper Class
• Upper Class are differentiated mainly by having high incomes. This class
remains the group in which quality merchandise is most prized and prestige
brands are commonly sought

2.The Middle Class
• These consumers want to do the right thing and buy what is popular. They
are concerned with fashion and buying what experts in the media
recommended.

3.The Low Class
• A class of people below the middle class, having the lowest social rank or
standing due to low income, lack of skills or education and the like, broadly
working class.

1. Primary reference groups include family and close friends.
2. Secondary reference groups include fraternal organizations and
associations.
• A buyer may also consult a single individual about decisions, and this
individual would be considered a reference individual.

• Making Marketing strategies are often designed to influence consumers
decision making and lead to profitable exchanges. Each element of
marketing mix can affect consumers in various ways.

Product Influences:
1. Brand name
2. Quality
3. Newness
4. Packaging
5. Labeling Information

Price Influences:
• The price of products and services often influences whether consumers will
purchase them at all and, if so, which competitive is offering selected.
Stores, such as Wal-Mart, that are perceived to charge the lowest prices
attract many consumers based on this fact alone. For some offerings, higher
prices may not deter purchase because consumers believe that products or
services are higher quality or are more prestigious.

Promotional Influences:
1. Advertising
2. Sales promotions
3. Sales people
4. Publicity
5. Events and sponsorships

Place Influences:
1. Availability increase the chance of consumers finding and buying the
products or services.
2. Visibility

• Situational influences are temporary conditions that affect how buyers
behave whether they actually buy your product, buy additional products, or
buy nothing at all from you. They include things like physical factors,
social factors, time factors, the reason for the buyer's purchase, and the
buyer's mood.
• 1.Physical Factors
• Marketing professionals take physical factors such as a store’s design and
layout into account when they are designing their facilities.
• Store locations are another example of a physical factor
• Physical factors like these the ones over which firms have control are
called atmospherics. In addition to store locations, they include the music
played at stores, the lighting, temperature, and even the smells you
experience.

2. Social Factors
• Social factors related to a purchase involve features and fundamental
interactions of other people who are present throughout a purchase decision
or who may be there when the product is utilized.
• Social factors that influence consumers purchasing decisions are other
persons, their compatibilities, roles, interactions and crowding.
• The social factor you’re in can significantly affect what you will buy, how
much of it, and when. Perhaps you have seen Girl Scouts selling cookies
outside grocery stores and other retail establishments and purchased
nothing from them. But what if your neighbor’s daughter is selling the
cookies? Are you going to turn her down, or be a friendly neighbor and buy
a box (or two)?

3. Time
• The time of day, the time of year, and how much time consumers feel like
they have to shop also affects what they buy. Researchers have even
discovered whether someone is a “morning person” or “evening person”
affects shopping patterns.
• Companies worldwide are aware of people’s lack of time and are finding
ways to accommodate them.
4. Reason for the buyer's purchase
• The reason you are shopping also affects the amount of time you will spend
shopping. Are you making an emergency purchase? Are you shopping for a
gift?
• What about shopping for a gift? Purchasing a gift might not be an
emergency situation, but you might not want to spend much time shopping
for it either.

5. Buyer's mood
• Mood is an important variable for consideration in consumer behavior.
• Have you ever felt like going on a shopping spree? People’s moods
temporarily affect their spending patterns. Some people enjoy shopping.
It’s entertaining for them. At the extreme are compulsive spenders who get
a temporary “high” from spending.

• The Psychological Factors are the factors that talk about the psychology
of an individual that drive his actions to seek satisfaction. Some of the
important Psychological Factors are:

1.Motivation:
• The level of motivation influences the buying behavior of the consumers. It
is very well explained by Maslow through his need hierarchy theory
comprising of basic needs, security needs, social needs, esteem needs and
self-actualization needs.
2. Perception:
• The consumer perception towards a particular product and the brand also
influences his buying decision. The perception is the process through which
the individual selects, organize and interpret the information to draw a
meaningful conclusion.
3. Learning:
• The individual’s learning depends on the skills, knowledge and intention.
The skills are developed through practice while the knowledge and
intention are acquired with the experience.

4.Attitudes and Beliefs:
• The individuals have certain beliefs and attitudes towards products on
which their purchase decisions rests. These attitudes and beliefs are the
tendency to respond to a given product in a particular way, and these make
up the brand image that influences the consumer buying behavior.

Consumer behavior-Decision Making

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