1. Understanding Consumer Behavior
How do Certain Brands Become Successful?

2. Consumer Behavior Consumer behavior is the study of consumers
and how they make decisions
If a marketer can identify consumer buyer
behavior, he or she will be in a better position to target products and services toward them
Marketing is about satisfying customer wants and needs; a want is an unfulfilled desire and a need is anything you require to live

3. Maslow’s Theory of Motivation
Self Actualization
Realize Potential
Respect & recognition
Esteem
Social
Friends, love belonging
Security
Physical safety & economic security
Food, water, air, shelter, sleep
Physiological

4. Maslow Example (Housing)
Physiological – home that provides protection
from the weather
Security – house in safe neighborhood possibly
have a security system
Social – neighborhood with other families possibly
with children/good schools, etc.
Esteem – well maintained home (nice landscaping, etc.)
Self-Actualization – home that is designed and built by owner

5. Three (3) Buying Motives
Buying motives - Customer’s MOTIVATION to satisfying NEEDS and WANTS
Emotional motives – reasons for purchase are based on feelings, beliefs, or attitudes. Forces of love, affection, guilt, fear, or passion often compel the customer to buy
Rational motives – reasons to buy are based on factors of logic. These include factors such as saving money, durability, and saving time
Patronage motives – reasons to buy are based on loyalty. They encourage customer to purchase at a particular business or to buy a particular brand

6. Buying Motive Examples
Purchase a vehicle because it has the best
gas mileage
rational motive
Purchase a type of running shoe because
you like that brand
patronage motive
Buying an item because you want your baby to
have the very best
emotional motive

7. Five (5) Buying Behaviors
Five (5) Steps of Buying Behaviors
Problem Recognition – Consumer must first recognize a need, desire, or problem
(you want to learn how to play the piano – need to find a good piano player)
Information search – Consumer gathers information about alternative solutions
(you talk to your parents, teachers, friends about piano teachers)

8. Five (5) Buying Behaviors (continued)
Evaluation of alternatives – After gathering info, consumer evaluates alternatives to determine which is best
(Determine which piano player you can afford, what hours they are available, how will you get there, their reputation)
Purchase – If suitable choice is available, consumer selects the product or service from the alternatives and makes the purchase
(Take lessons with your chosen piano teacher)
Post-purchase Evaluation – Consumer judges the satisfaction or dissatisfaction with the product or service
(Taken a few lesson, play some songs and decide if you want to continue)

9. INFLUENCES on Consumer Decision Making Process
Personality – Buying decisions based on individual preferences
Social Class – Refers to the lifestyle, values, and beliefs that are common to a group of people
Cultural Environment – Set of beliefs or attitudes that are passed on from generation to generation
Reference Group – Groups or organizations from which a consumer takes their values or attitudes

10. 3 TYPES of Decision-Making
Routine Decision-Making – Purchases that are made frequently and do not require much thought
(chewing gum, regular food purchases)
Limited Decision-Making – Takes more time than routine. Used with more expensive or less frequently purchased items
Extensive Decision-Making – When consumer goes through all 5 steps of Decision Making Process. Consumers do not make decision lightly and spend time and effort evaluating alternatives and arriving at decision

11. Consumer Decision Making Process
Programmed
Decision
Complex
Decision
Limited Problem Solving
Routine Decision Making
Extensive Problem Solving

12. Decision Making Examples
You buy a pair of jeans after shopping at 2 different stores and trying on 6 pairs Limited Decision Making You are a runner and you need new shoes so you buy the New Balance style that you purchased last time Routine Decision Making You buy a laptop for college. You have never had a laptop before so you spend time researching different brands on the Internet and try out a Mac and PC before deciding on a Mac Extensive Decision Making