1. Module
Final
Review II

2. Learning Outcomes Identifying the Customer Investigating the Customer
Understanding Customer
Behaviour
Predicting and Influencing
Customer Behaviour

3. Basic Framework Motivation Perception Search Evaluation Choice
Learning

4. Motivation: Consumer Behaviour: “… the inner drive that reflects goal
-directed behaviour”
Consumer Behaviour:
The drive to satisfy needs and wants through the purchase and use of products and services

5. Bases of Motivation
Physiological +
Psychological
needs and wants

6. e.g. Maslow’s Hierarchy of needs

7. Functional
Symbolic +
Experience

8. Functional
Buying things for what they do
Physiological

9. Functional
Buying things for what they do
Physiological

10. Symbolic
Buying things for what they mean
Psychological

11. Experiential
The value from the experience
Physiological + Psychological

12. Perception
“How we see the world around us”

13. Elements of Perception
Sensation
Absolute threshold
Differential threshold
Subliminal perception

14. Sensation
Direct response of sensory organs to stimuli
Absolute threshold is the lowest level at which an individual can experience a sensation

15. Weber’s Law
The stronger the initial stimulus, the greater the intensity for the second stimulus to be perceived as different
Basis for “habituation”

16. Perceptual Selection Consumers selective in what they perceive
Selection depends on
- nature of stimulus
- expectations
- motives

17. Aspects of Selection
Selection
Organisation
Interpretation

18. Perceptions and Marketing
Basis for marketing decisions – strategy and operational
e.g. product positioning
communications media and
message

19. Search

20. Stages of Search and Choice
Information Search – seeking values
Evaluation of Alternatives – assessing value
Purchase decision – buying value
Post Purchase – value in use

21. Stages of Search and Choice
Information Search – seeking values
Evaluation of Alternatives – assessing value
Purchase decision – buying value
Post Purchase – value in use

22. Routine Problem Solving
Almost a Habit
Little effort in buying process
Low priced, frequently used products

23. Limited Problem Solving
Moderate effort
Buyer has little time or effort to spend

24. Extended Problem Solving
All stages of decision making process used
Time and effort spent on search and evaluation
High involvement purchases

25. Information Search Internal - memory of previous External
experiences
External
- personal sources
- public sources
- marketing sources

26. Alternative Evaluation – Assessing Value
Consumers evaluation criteria represent
Objective / functional attributes of product
Symbolic/subjective factors

27. Five Situational Influences
Purchase Task
Social surroundings
Physical surroundings
Temporal effects
States (Mood)

28. Purchase and Post-Purchase

29. Post – Purchase Evaluation
learned outcome from use/consumption
“cognitive dissonance”
Satisfaction / dissatisfaction

30. Cognitive Dissonance
Inner tension that consumer experiences after recognisng an inconsistency between expectation and experience

31. Dissonance and Post-Purchase
Did I make a good decision?
Did I buy the right product?
Did I get good value?

32. Satisfaction Consumer discovers after purchase that the product:
Unexpected features / benefits
Performs at a higher level than expected

33. Dissatisfaction Consumer discovers after purchase that product:
Does not have all expected features
Fails to perform as expected
Is defective or flawed

34. Learning
A process that creates changes in behaviour, immediate or expected, through experience and practice

35. Impact of Learning
Brand Loyalty
Lifetime Customer Value (LCV)

36. Brand Loyalty
No Preference
Brand Switcher
Brand Loyal
Brand Champion

37. Lifetime Customer Value
The total value of spending by a customer – and the impact of customer recommendation on revenue – over the period customer is in a market

38. External Influences on Consumer Behaviour

39. External Influences:
Culture
Subculture
Demographics
Social Status
Reference groups
Family
Marketing activities

40. Culture and Subculture
… the way we do things around here”

41. Culture:
Set of Values, ideas and attitudes that are accepted by a group of people and are passed on to the next generation

42. Culture and Consumers Influences values, perceptions, decisions
Is Learned
Provides “boundaries” for thought and action
Mostly unaware of culture

43. Sub Cultures
Groups within the larger/ national culture with unique values, ideas and attitudes
Each group displays specific social and cultural behaviour affecting buyer behaviour

44. The subculture may be distinctive because of:
age of its members,
their race,
ethnicity,
class
gender

45. Culture and Subcultures
A major influence on Marketing activity through the determination of Consumer Values, Perceptions and Behaviour in exchange

46. Group Influences on Consumers
(Ref. Chapter 6 and 7)

47. Group Influences include:
Primary Groups – family, friends
Secondary Groups – work groups, neighbours

48. Family
The Household is the basic consumption unit for most consumer purchases
More than one consumer involved in decision - making

49. The Family Life Cycle
Households go through distinct stages – based on composition of members of household
Consumption patterns change at different stages

50. Family Purchases Family members can play different roles in decisions:
Initiator
Information gatherer
Influencer
Decision – maker
Purchaser

51. Reference Groups
A group whose perspectives or values are being used by an individual as the basis for their current behaviour

52. e.g. Types of groups
Consumption subculture- activity groups
Brand Communities – Apple users
Virtual Communities – Internet
groups

53. Reference Groups influence:
Information
Expectations
Identification