Consumer Behavior – Lectures (HC) & Summary of the book: Buying / Having /
Being – By Solomon & Michael R. – CH1,4,5,6,7,8,9,10.
Chapter 1. An introducton to the study of the consumer behavior
Consumer behavior
Consumer behavior The behavior consumers display in searching for, purchasing, using, evaluatng and disposing
of products/services that they expect will satsfy their needs. (How individuals make decisions to spend their tme,
money and efort on consumpton related items)
When, how, where, how many tmes, how ofen they buy, how they evaluate their purchase and the
impact of these evaluatons and how they dispose.
Consumer behavior HC1 The dynamic interacton of afect, cogniton, behavior and the environment by which
humans conduct the exchange aspects of their lives (American MRK Associaton – Peter Olson)
Dynamic Thinking/feeling/actng is constantly changing
Interacton We are social beings, so interacton with others infuences our behavior
Exchanges Money in exchange for product/services
2 diferent types of consuming enttes Personal consumer and organizatonal consumer
Personal consumer: Are individuals that buy products/services for own use/gifs/households
Organizatonal consumer: Are companies/organizatons/insttutons that buy products/services in order
to run their business.
The development of the Marketng Concept
1. Producton concept The buyers are mostly interested in low prices/efcient producton, intensive
distributon and availability. (Occurs in developing countries or when a frm wants to expand its market)
2. Product concept The buyers that are interested in high product quality. Firms strive to improve quality
and add features that are technically feasible. Can lead to Myopia a focus on the product rather than on
the consumer needs.
3. Selling concept The buyers only buy when aggressively pursued to do so
4. Marketng concept Determining what the consumers want and based on that make a product. Deliver
satsfacton and focusses on the wants and needs of the consumer. Profts are gained from satsfacton.
Identfying consumer needs consists out of four ways:
Marketng segmentaton: Dividing markets into subcategories
Targetng: Selectng which markets to pursue
Positoning: Developing an image for the product/service in the mind of a consumer
Developing a clear marketng mix (4 P’s)
5. Value and retenton focused marketng Exists out of the following three elements:
Providing Customer Value = The rato between the customer’s perceived benefts (economical, functonal and
psychological) and their resources (money, tme, efort, psychological) used to obtain those benefts.
Providing Customer Satsfacton = An individual’s percepton of the performance of the product/service in
relaton to her/his expectatons. There are 6 types of customers per satsfacton grade:
o Loyalists Completely satsfed customers that keep purchasing
o Apostles Completely satsfed customers with exceeded expectatons, provide word-of-
mouth
o Defectors Neutrally satsfed customers, likely to stop purchasing
o Terrorists Negatve experienced customers, negatve word-of-mouth
o Hostages Unhappy customers but stay with the product because of the price or monopoly,
are difcult and costly and frequent complainers
o Mercenaries Highly satsfed customers, but not loyal and may defect because of impulse or
competton
Providing Customer Retenton = Focusses on providing value to its customers more efectvely than
competton and reaches customer satsfacton. Loyal customers buy more, are less expensive, pay less
attenton to compettors and spread positve word-of-mouth
,The role of Consumer Research
Consumer Research The process and tools used to study consumer behavior. There are two methodology’s:
1. Positvists: Conduct research over larger populatons, used to provide data for strategic decisions, seek
causes for consumer behavior and are objectve
2. Interpretvist: Seek to fnd patterns of operatve values, meanings and behavior and see each consumpton
situaton as unique and unpredictable (more modern theory)
Marketng Ethics and Social Responsibility
Societal Marketng Concept Requires that all marketers adhere to principles of social responsibility and advocates a
long-term perspectve and recognize that all companies would be better of in a stronger and healthier society. This is
an important concept of organizatonal efectveness and can improve the company’s image.
Chapter 4. The consumer as an individual
Decision The selecton of an opton of 2 or more diferent choices
No-choice/Hobson’s choice No alternatves and therefore forced to make a partcular purchase
Consumer behavior and Decision-Making are Interdisciplinary
There are three levels of Consumer Decision-Making:
1. Extensive (1%) – Usually occurs when buying products that are really expensive, people are high
involvement with the buying process as it is an important decision. Consumer needs lots of informaton about
the product and a set of criteria must be established before buying.
2. Limited (4%) – Usually occurs with impulse buying / trying something new, or when a consumer likes
variaton. The preferences for a select group of brands has not been fully established here. The purchase are
mostly familiar products and services. This commands low involvement with the brand.
o Reptle The purchase is made instnctvely
o Limbic system The purchase is made on emotonal basis
3. Routnized (95%) – Occurs when customers have experience with the product category and therefore
commands low involvement, things that people buy daily without thinking in ‘ habit formaton’ automatc
pilot or consumers use ‘heuristcs’ it’s a well-known brand, it’s expensive so it must be good, discount? Ill
be saving money!
4 Views on decision making Consumers:
1. Economic view Make ratonal decisions (not always) and are perfect for competton.
o The economic man theory Are consumers that are aware of alternatve products and able to
rank each alternatve in terms of benefts and able to identfy the best product
2. Passive view Make impulsive, irratonal purchases. They fail to recognize motvatons, a selectve
percepton and communicatons. Are unrealistc and simple minded
3. Emotonal view Make a relaton with deep feelings/emotons with purchases. Also impulse purchases
happen with consumers that have an emotonal view as their mood can highly infuence their purchase
behavior.
4. Cognitve view Make not perfect decisions but actvely seek info about a product. These people think as
problem solvers and are goal directed.
, The Consumer Behavior Decision Making Model
Input External Infuences
Marketng inputs: Reach, inform and Sociocultural environment: Are non-
persuade consumers to buy the product. commercial infuences and unwritten codes
The 4P’s are governed by consumer’s of conduct per culture. Afects what
percepton consumer purchase and how they use it
Process Consumer Decision-Making
Exists out of:
1. Need recogniton, Prepurchase Search and Evaluaton of Alternatves
2. Pshycological Field
3. Experiences
1. The need or the recogniton of a product
The process of decision making starts when the consumer feels he/she has a problem. There are two
problem recogniton styles:
- Actual state types The consumer has a problem when the previous product fails to perform
- Desired state types The consumer desires for something new
2. The pre-purchase search
Either the consumer has experience which provides him/her with adequate informaton to make a choice
or when there was no prior experience, the consumer is going to search for useful informaton. The
better the last experience, the less informaton the consumer needs.
