1. Consumer Behaviour Understand behaviour
Why people behave the way the do (select Toyota Vs Mazda, Mongolia Vs Australia, UWA Vs others)
Predictors sought say of choice (motivation, needs, PV, experience, others) and;
Understand at all stages
Pre (information gathering – how, where, quantity)
During (involvement, actual behaviour)
Post (what next - +/- W.O.M., intent to repurchase etc.)

2. Model of Consumer Behaviour
This CTR corresponds to Figure 6-1 on p. 183 and to the material on pp. 183.
Model of Consumer Behaviour
Marketing and Other Stimuli
Buyer’s Black Box
Buyer’s Response ?
Mix
P.E.S.T
Characteristics
Buyer decision
process
What
Type
Quantity
Frequency
Where
Logical?
Consumer Behaviour
Consumer Behaviour refers to the buying Behaviour of final consumers -- individuals and households who buy goods and services for personal consumption.
Model of Consumer Behaviour
Marketers control the stimuli or inputs consisting of the four Ps: Product, Place, Price, and Promotion. Environmental and situational influences, though perhaps beyond the control of the marketer, also influence many consumer choices. But what happens between the marketing stimuli input and the buyer’s response or output? That “black box” processing is the central question for marketers.
Teaching Tip: You may wish to discuss the “buyer’s black box” in more detail at this stage. Students sometimes become involved in the controversy regarding the presence or absence of consciousness in consumers. Consider using a two-side in-class discussion:
Side A: Experimental psychologists argue that what we call consciousness is merely a set of complex learned responses -- an ordinary physiological function.
Side B: Sociologists and social psychologists argue that consciousness is greater than the sum of its physiological parts. For marketers, the issue is sometimes linked to free will: Do marketers create needs by conditioning consumers? Do marketers offer need-fulfillers to needs consumer’s create in their “black box?”

3. Factors Influencing Consumer Behaviour
This CTR corresponds to Figure 6-2
on p. 184 and to the material on pp
Social
Household type
Reference groups
Roles & status
Personal
Age & lifecycle stage
Occupation
Education
Economic situation
Psychological
Motivation
Perception
Learning (memory)
Beliefs & attitudes
Personality &
self-concept
Consumer
BUYER DECISION
PROCESS
Lifestyle
Buyers’ responses
Product service &
category selection
Brand selection
Reseller selection
Purchase timing &
repurchase intervals
Purchase amount
Marketing programs
Marketing objectives
Marketing strategy
Marketing mix
Experiences
Influences on Consumers
Psychological. Maslow's hierarchy reminds marketers that need states vary in their intensity or motivation. Perception is the process of organizing stimuli and is influenced by selective exposure, distortion, & retention. Learning occurs in response to the presentation of information linked to relevant drives, cues, responses, and reinforcement only some of which is under the control of the marketer. Beliefs and attitudes, though shaped by cultural and social forces, may vary considerably on the individual level.
Personal. Major personal factors are age and life cycle stage, occupation, economic situation, life style and personality/self-concept. Texts vary in their treatment of the PLC stages but it is clear that singles buy different products than do young marrieds with small children. Occupations differ in time constraints and social pressures to conform that affect consumption decisions. Lifestyles measured by AIO or VALS typologies can reveal different consumption patterns across otherwise dissimilar groups. The unique characteristics of each person that make up their personality also affect Behaviour.
Cultural. Culture is the most basic influence on a person's values, priorities, and beliefs. Cultural shifts make marketing opportunities although most such changes are in secondary rather than core cultural values. Subcultures are important markets as these groups are often significantly different in their needs to warrant different marketing approaches.
Social. Social class is determined by a combination of income, occupation, education, wealth and other variables. Social factors within one's class that affect consumer Behaviour include reference groups & aspirational groups. Families also exert strong social influences. Finally, each relationship a person has with his or her group carries with it certain roles and status that may carry consumptive responsibilities.
Cultural
Culture
Subculture
Social Class
Environmental influences
Economic
Technological
Political

4. Needs and Wants Needs – Noun (3 variations):
Internal force driving behaviour
Means to an end (what makes people satisfied, happy etc.)
Justified requirement for performing behaviour
Broad fundamental biological and psychological requirements that propel behaviour, including the need for food, water and shelter (Arnould, Price and Zinkhan 2002)
Maslow’s hierarchy of needs: physiological, safety and security, social, ego, self-actualisation
Max-Neef (1992) proposed nine fundamental needs:
Subsistence, protection, affection, understanding, participation, leisure, creation, identity and freedom plus possibly transcendence.
Max-Neef proposes that needs can be filled by satisfiers ‘everything which by virtue of being, having, doing, and interacting contributes to the actualisation of human needs.
Wants – Particular form of consumption that is capable of satisfying an underlying need (Arnould et al. 2002)

5. Customer Value – Extrinsic versus Intrinsic
Something capable of bringing about some end (means-end)
The capacity or power of a thing or action to produce something else
Utilitarian, instrumental
Example – ticket to a rock concert, money,
Intrinsic
Pleasure contained within
Something worth having for its own sake
Non-instrumental
Example - aesthetic view of natural landscape (Kalbarri – Nature’s window)

6. Social Factors Public Private Luxuries Necessities
This CTR relates to Figure 6-4, p.197. and the material on pp
Social Factors
Expose to new behaviour and lifestyles
Influence attitude and self-concept
Create pressure to conform
Public
Luxuries
Necessities
Private
Group Influence on Product Choice
Strong
Weak
Group Influence on Brand Choice
Bread makers
Boat
Car
Refrigerator
Group Influence on Brand Choice
Groups vary in their influence on product and brand purchases as illustrated on the CTR. Consumers belong to several different membership groups.
Primary Groups. Primary groups are those with which we have regular but informal interaction. These include family, friends, neighbors, and co-workers.
Secondary Groups. Secondary groups are those with which we have more formal and less regular interaction such as religious groups, professional associations, and trade unions.
Reference Groups. These groups serve as direct (face-to-face) or indirect points of comparison and evaluation in a person’s formation of attitudes or Behaviour.
Aspirational Groups. This type of group is one to which the individual wishes to belong and emulates in adopting Behaviours appropriate to that group.
Opinion Leaders. These are people within a reference group who exert influence over others due to special knowledge, skill, personality, or other characteristic.
Different groups exert different influence

7. Consumer Buying Roles Decider Buyer User Influencer Initiator Key
This CTR relates to the material on pp
Teaching Tip: Involving students in a discussion of different consumer buying roles can be challenging. You might wish to link a discussion to social influences or family roles and have students describe purchasing responsibilities each role has.
Consumer Buying Roles
Decider
Buyer
User
Influencer
Initiator
Key
Family
Decision
Roles
Consumer Buying Roles Include
Initiator. The person who first suggests or thinks of the idea of buying a particular product or service. For example, Bill may suggest a Disney World trip for a family vacation.
Influencer. The person whose views or advice carries some weight in the final decision. This person may influence the decision criteria used as well. For example, Dad's feelings about Florida may influence the Disney World trip.
Decider. The person who authorizes the purchase. For example, Mom's vacation time may be limited by her schedule as an attorney, so she decides when and where the family goes.
Buyer. The person who actual makes the purchase. For example, Jane may telephone the reservation at Disney World once given the authorisation.
User. The person who consumes the product. For example, the whole family would use the Disney product. For equipment purchases like computers at universities, it might be students enrolled in courses coming to the computer lab.

8. Family and Lifestyle Influences
This CTR corresponds to Table 6-1 on p. 193 and the material on pp
Family and Lifestyle Influences
Family Influences
Age and Life Cycle Stage
Occupation
Economic Situation
Lifestyle Identification
Activities
Opinions
Interests
Personal Factors: Family
Age and Life-Cycle Stage. Buyers’ choices are affected by changes in their age and family structure over time. Young singles have different tastes in clothes, furniture, food, and recreation than do middle aged persons with their own children. Older consumers continue to change in their preferences and additionally acquire new buyer needs such as increased health care needs.
Occupation. A person’s occupation carries with it distinct consumptive needs. White collar workers need different clothes than blue collar workers. Also, occupations usually carry their own subcultural norms and values that influence buyer Behaviour.
Economic Situation. Means constrain buyer Behaviour for almost everyone except for the most wealthy.
Lifestyle
Lifestyle is a person’s pattern of living as expressed in her or his activities, interests, and opinions. Determining lifestyle involves measuring AIO dimensions -- the Activities, Interests, and Opinions of consumers.
Psychographics. Lifestyle measures combined with demographic information can identify distinct market segments for consumer products and services. The best known of these methods, VALS 2, is addressed on the following CTR.
Personality and Self-Concept. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting response to one’s own environment. Self-concept is the basic perception that people have about who they are.

9. Consumption as Process
Understand
Impact
3 Consumption paradigms
Cognitive
Reinforcement
Habit
Pre-consumption
Consumption
Post-consumption

10. Types of Buying Decisions
This CTR corresponds to Figure 6-8 on p. 203 and relates to the material on pp
Types of Buying Decisions
Reinforcement (learned)
Classical conditioning (M = ?)
Habit (Sight induces purchase)
Expensive
Risky
Infrequent
Self-Expressive
Low cost
Low risk
Frequent
Complex
Buying
Behaviour
Dissonance-
Reducing Buying
Variety-
Seeking
Habitual
High
Involvement
Significant
differences
between
brands
Few
Low
Types of Buying Decision Behaviour
Complex Buying Behaviour. Consumers undertake this type of Behaviour when they are highly involved in a purchase and perceive differences among brands. Involvement increases with the product is expensive, infrequently purchased, risky, and highly self-expressive.
Dissonance-Reducing Buying Behaviour. Consumers engage in this Behaviour when they are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. Without objective differentiation to confirm the purchase, buyers often seek support to reduce postpurchase dissonance -- the feeling they may have made the wrong decision.
Habitual Buying Behaviour. This Behaviour occurs under conditions of low consumer involvement and little significant brand differences. Consumers do not search extensively for information about brands. Brand familiarity aids in promoting products under essentially passive learning conditions.
Variety-Seeking Buying Behaviour. Consumers may seek variety when involvement is low and there are significant perceived differences among brands. Differences may be product features -- new taste, improvements, extra ingredients -- or promotional benefits such as coupons, rebates, and price reductions.

11. The Buyer Decision Process
The Buyer Decision Making Process
This CTR corresponds to Figure 6-9 on p and relates to the material on pp
Teaching Tip: Consider asking students to describe some of their purchases decisions made at the beginning of the term and link them to steps in the process.
The Buyer Decision Process
Cognitive (problem-solving)
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Behaviour
Stages in the Buyer Decision Process
Need Recognition. Problems are recognised when people sense a difference between an actual state and some desired state. Problem recognition can be triggered by either internal or external stimuli.
Information Search. Consumers vary in the amount of information search they conduct. Information search may be a survey of information stored in memory or may be based upon information available externally. Search effort varies from heightened awareness corresponding to increased receptivity for relevant information to active information search modes where the person expends some energy to obtain information that is desired. External information vary in their informational and legitimising characteristics. Riskier decisions usually elicit more search Behaviour than non-risky decisions.
Evaluation of Alternatives. Following information search, the person compares decisional alternatives available. Criterion for evaluation compares product attributes of the alternatives against degrees of importance each attribute has in meeting needs, beliefs about the product or brand's ability and utility, and an evaluation procedure that ranks the alternatives by preference that forms an intention to buy.
Purchase Decision. - The individual buys a product. Purchasing other than the intended product may be due to attitudes of others exerted after the evaluation of alternatives is completed or unexpected situational factors such as point of purchases promotions that affect the alternatives' ranking.
Post-purchase Behaviour. This involves comparing the expected performance of the product against the perceived performance received. Cognitive dissonance describes the tendency to accentuate benefits and downplay shortcomings.

12. Stages in the Adoption Process
This CTR relates to the material on pp
Stages in the Adoption Process
New products
Awareness
Interest
Evaluation
Trial
Adoption
Information-seeking
Make sense to try?
Try on small scale
Stages in the Adoption Process
The new product adoption process parallels the buyer decision process but focuses more on the interaction of consumer needs with product adoption. The new product adoption process may work best to explain how regularly used products requiring re-purchase are considered for inclusion in the consumer's consumptive Behaviour patterns but may also apply to some durables as well.
Awareness. In this stage the consumer is aware of the new product but lacks further information about it.
Interest. The consumer is motivated to seek information about the new product.
Evaluation. The consumer determines whether or not to try the new product.
Trial. The consumer tries the new product on a small scale to test its efficacy in meeting his or her needs. Trial can be imagined use of the product in some cases.
Adoption. The consumer decides to make use of the product on a regular basis.
Full and more regular

13. Adoption of Innovations
This CTR corresponds to Figure 6-10 on p. 210 and relates to the material on pp
Adoption of Innovations
Percentage of Adopters
Time of Adoption
Early
Late
Innovators
Adopters
Early Majority
2.5%
13.5%
34%
16%
Laggards
Late Majority
Individual Differences in
Innovativeness
Innovators. Innovators include the first 2.5% of buyers who adopt a new product idea. Innovators help get the product exposure but are not often perceived by the majority of potential buyers as typical consumers. Innovators like risk taking and enjoy buying new products. Innovators may purchase at skimming prices.
Discussion Note: You might discuss the ethical implications of skimming. Is it fair? Also, are there cost considerations associated with new product development that make skimming to recover high start up costs more ethical than it may seem?
Early Adopters. Early Adopters comprise about 13.5% of the buyers who adopt new products. This group serves as opinion leaders to the rest of the market and their product usage outcomes serve as motivation to later buyers to get the product.
Early Majority. Early Majority are some 34% of buyers adopting the product. They are deliberate consumers who adopt new ideas before the average person but seldom lead the market.
Late Majority. Late Majority comprise another 34% of buyers adopting the product. This group is skeptical of new products and only buys after the majority of the market has tried it.
Laggards. Laggards are the final 16% of adopters and are tradition-bound. They are suspicious of change and only adopt innovation that have already become something of a tradition.

14. Influences on Rate of Adoption
Influences on the Rate of Adoption
This CTR relates to the material on pp
Teaching Tip: The adoption of innovations may be initially confusing to students but they will usually become involved in discussion when new products of importance to them are used as examples.
Influences on Rate of Adoption
Influences
Relative
Advantage
Communi-
cability
Divisibility
Compatibility
Complexity
Product Characteristics Influences
Relative Advantage. This refers to the degree to which the innovation appears superior to existing products. The greater the perceived relative advantage, the sooner the innovation will be adopted.
Compatibility. This refers to the degree to which the innovation fits the values and experiences of the potential consumers. Increased compatibility will accelerate adoption of the innovation.
Complexity. This refers to the degree to which the innovation is difficult to understand or use. Greater complexity will slow the rate of adoption of the innovation.
Divisibility. This refers to the degree to which the innovation can be tried on a limited basis. Greater divisibility will help increase the rate of adoption of the innovation.
Communicability. This refers to the degree to which the results of using the innovation can be observed or described to others. Greater communicability will increase the rate of adoption of innovation.

15. Buyer Decision Process Vs New Product Adoption Process
Both cognitive problem-solving process models
Both contain needs recognition, information search, evaluation, decision stages
BDP = overt
NPAP = covert
BDP starts with consumer needs recognition – seek products to fill need
NPAP starts with product (awareness)
With NPAP – All stages present
With BDP – some stages may be skipped or reversed

16. BDP and Buying Behaviour Types
Variety-seeking
Complex
NR>IS>EVAL>PD>PPB
NR>IS>PD>EVAL>PPB
Dissonance-reducing
Habitual
NR>PD>PPB
NR>IS>EVAL>PD>PPB>IS
>PPB