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Consumer Behaviour Lecture 3. Objectives of this session Recap previous session Understand the decision-making processes that consumers go through as.

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Presentation on theme: "Consumer Behaviour Lecture 3. Objectives of this session Recap previous session Understand the decision-making processes that consumers go through as."— Presentation transcript:

1 Consumer Behaviour Lecture 3

2 Objectives of this session Recap previous session Understand the decision-making processes that consumers go through as they make a purchase Appreciate how those processes differ between different buying situation Understand the influences that affect decision- making, whether environmental, psychological or sociocultural Appreciate the implications of those processes and influences for marketing strategies 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

3 Elements of the external environment 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

4 Activity Working in pairs, carry out a STEP analysis to identify the main influences affecting the marketing environment of the sustainable land management sector 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

5 Consumer Buying Decision-Making Process Individual influences Group influences Marketing mix Decision-making process Situational influences 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

6 The Consumer Decision-Making Process Problem Recognition Information evaluation Decision Information search Post-Purchase Evaluation 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

7 Information Search What kind of purchase will address problem? How can the product be obtained? What information is needed? Source: C&G http://www.cheltglos.co.ukhttp://www.cheltglos.co.uk 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

8 Information Search Ongoing Search Purposeful Search 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

9 Information Evaluation Information Evaluation involves a process of narrowing down a wide list typically by constructing performance criteria with which to judge choices. 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

10 Interactive Decision Aids 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

11 Decision Consumers may use rules of thumb to decide: – Choose the cheapest – Choose the most expensive – Select the brand used before – Others? 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

12 Post-Purchase Evaluation Affects likelihood of repeat purchase May evoke cognitive dissonance 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

13 Review of the Decision-Making Process I’m hungry What’s available? Cakes or chocolate? Chocolate bar I should’ve had cake. Problem recognition Information search Information evaluation Decision Post-purchase evaluation 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

14 Purchasing Situations RoutineLimitedExtended 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

15 Routine Problem-Solving Situation Low risk, low price Purchase stages Awareness Trial Repeat purchase 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

16 Limited Problem Solving Situation Moderate price, moderate risk Relatively infrequent purchase 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

17 Extended Problem Solving Situation High cost, high risk Infrequent purchase 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

18 Situational (Environmental) Influences Sociocultural TechnologicalRegulatory PoliticalEconomic Competitive 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

19 Personality Personality can play a role in consumer behaviour particularly with high involvement products (e.g. choice of holiday) Source: © Hayes & Jarvis (Travel) Ltd http://www.hayesandjarvis.co.ukhttp://www.hayesandjarvis.co.uk 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

20 Perceptions Selective attention Selective retention Selective perception 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

21 Maslow’s Hierarchy of Needs Self-actualisation Esteem Belongingness Safety Physiological Sex Hunger Membership Security Success Protection Affection Potential Status Fulfilment 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

22 Attitudes Cognitive (Beliefs or disbeliefs) Conative (Attitudes leading to behaviour) Affective (Feelings emotional involvement) 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

23 Skoda Responded to Negative Attitudes

24 Group Membership Affects individuals by helping to Differentiate between essential and non-essential purchases Prioritise purchases where resources are limited Define meaning of a product and its benefits Foresee post-purchase implications 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

25 Other Group Influences Social class CultureReference groups FamilySub-culture 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

26 Reference Groups Membership Aspirant eg Harley Davidson Source: © Harley-Davidson UK http://www.harley-davidson.comhttp://www.harley-davidson.com 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

27 Family Life Cycle 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

28 Family as a Decision-Making Unit Initiator Influencer User Decider Purchasing Decision Purchaser 3-6 Brassington & Pettitt, Principles of Marketing 4e, © Pearson Education 2006

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