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Chapter 4
Consumer Behavior

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 ILO’s
By the end of this module, you will be able to
1. Describe the stages in the consumer purchase decision
process.
2. Identify the influences on consumer behavior.
3. Distinguish among three variations of the consumer
purchase decision process: routine, limited, and extended
problem solving.
4. Explain how data can be used to understand the consumer
decision-making process.

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 Marketing Analytics Implications
1. Many of the models used in consumer behavior were
brought over from psychology.
2. Because consumers are influenced by a wide variety of
factors, marketers must constantly study data gathered from
the marketing environment and the multiple environments
in which consumers live.
3. Marketers have developed a series of tools to help structure
and assist consumers in making complex decisions.

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 Warby Parker: Making Eyeglasses Stylish,
Convenient, and Affordable
Warby Parker is successful at each stage of the consumer purchase
decision process. important
Problem Recognition: As soon as consumers realize they want or need
new eyeglasses, Warby Parker is available online or at a nearby location.
Information Search: Warby Parker makes it easy to select from online
options and convenient retail outlets to guide the consumer journey.
Evaluation of Alternatives: Warby Parker lets consumers browse from
hundreds of frames to express their personal style.
Purchase: Consumers simply provide a current prescription, and new
eyeglasses or sunglasses are shipped within a couple of weeks.
Post-Purchase Evaluation: Warby Parker lets consumers return
eyeglasses within 30 days, no questions asked, so there’s no buyer’s
remorse.
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 The Consumer Purchase Decision Process
1. Problem Recognition
What need do I have to satisfy?
2. Information Search
What products are available to meet my need?
3. Evaluation of Alternatives
What product will best satisfy my need?
4. Purchase
Where should I purchase from and how much should I pay?
5. Post-Purchase Evaluation
Am I satisfied with my purchase?

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 Problem Recognition
Marketers must understand
all aspects of consumers’
problems.

Marketers must remember

that if the consumer is not
aware of a problem or does
not recognize a need, he or
she is unlikely to engage in
any of the subsequent steps of
the buying process.

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 Information Search
External information search
• Consumers seek information beyond their personal
knowledge and experience.
• Advertisements, social media, product websites, friends and
family.
Internal information search
• Consumers use past experiences with items from the same
brand or product class as sources of information.

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 Evaluation of Alternatives
Once consumers
acquire information,
they can use it to
evaluate different
alternatives.
Evaluative criteria
consist of attributes
that consumers
consider important
about a certain
product.

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 Purchase
After evaluating alternatives, consumers will most likely
purchase a product.
At this point, they have several decisions to make.

Which
form of
Where payment? Interest
to buy? rates?

Financing
terms?

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 Post-Purchase Evaluation
Post-purchase evaluation occurs after the sale is complete.
Three main things are evaluated:
• Customer satisfaction – a state that is achieved when
customers’ expectations and needs are met.
• Loyalty – an accrued satisfaction over time that results in
repeat purchases.

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 Influences on Consumer Behavior
Psychological.
Situational and Personal.
Sociocultural.
Involvement.

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 Psychological Influences on Consumer Behavior
Attitude
• A consumer’s overall evaluation of a product, which involves
general feelings of like or dislike.
Learning
• The modification of behavior that occurs over time due to
experiences and other external stimuli.
• Marketers can provide cues and reinforcement.
Motivation
• The inward drive people have to get what they need or want.

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 Maslow’s Hierarchy of Needs
Maslow’s hierarchy of needs
illustrates the belief that
people are motivated to meet
their basic needs before
fulfilling higher-level needs.
Marketers identify categories
of psychological needs based
on Maslow’s hierarchy.

Access the text alternative for slide images.

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 Maslow’s Hierarchy of Needs
Maslow’s hierarchy of needs is shaped like a pyramid. Levels are
described from bottom to top. The first level is physiological.
Examples of these needs are breathing, food, water, and sleep.
The second level is safety. Examples of these needs are security
of body, employment, resources, family, health, body, and
property. The third level is love and belonging. Examples of these
needs are friendship, and family. The fourth level is esteem.
Examples of these needs are self-esteem, confidence,
achievement, respect of others, and respect by others. The top
level is self-actualization. Examples of these needs are creativity,
spontaneity, problem solving, and lack of prejudice.

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 Maslow’s Hierarchy of Needs
Identifying Consumer Priorities: Maslow's theory outlines that
individuals have a range of needs, from basic physiological needs
to higher-level self-actualization needs. By understanding where
consumers are in the hierarchy, marketers can tailor their
products and messaging to meet those specific needs. For
example, a consumer struggling to meet basic needs might be
more interested in affordable, essential products, while a
consumer at a self-actualization level may seek products that
enhance personal growth or creativity.
Targeting the Right Market: Different consumer segments are at
different levels of the hierarchy. By investigating these needs,
marketers can target specific groups more effectively. For
instance, luxury brands may focus on consumers who have their
physiological and safety needs met and are now focused on
esteem or self-actualization needs.
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 Maslow’s Hierarchy of Needs
Crafting Effective Messaging: The hierarchy helps marketers
craft messages that resonate with their audience. If marketers
understand which needs are most pressing for their target
audience, they can emphasize how their product addresses
those needs. For example, health-related products might focus
on safety and security, while lifestyle products could focus on
esteem and social belonging.
Product Development and Positioning: Maslow’s Hierarchy also
informs the development of new products and their positioning.
Marketers can use the hierarchy to create products that cater to
specific levels of need. For example, a company producing
vitamins may first address basic health needs (physiological) and
later position their products to meet higher needs like self-
actualization through personal wellness and achievement.
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 Maslow’s Hierarchy of Needs
Enhancing Consumer Loyalty: When marketers align their
products with consumers’ deeper needs, they can build stronger
emotional connections and brand loyalty. Meeting these needs
doesn’t just satisfy a purchase; it strengthens a consumer’s sense
of identity and fulfillment.

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 Situational and Personal Influences on Consumer
Behavior 1
Time
• Time considerations often affect purchasing decisions.
Surroundings
• Factors in a consumer’s surroundings, such as crowd size,
smell, and store appearance, can affect decision making.

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 Situational and Personal Influences on Consumer
Behavior 2
Personality
• The set of distinctive characteristics that lead an individual to
respond in a consistent way to certain situations.
Lifestyle
• A person’s typical way of life as expressed by their activities,
interests, and opinions.

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 Situational and Personal Influences on Consumer
Behavior 3
Values reflect a consumer’s
belief that a specific behavior is
socially or personally
preferable to another behavior.

Patagonia’s ad telling people

not to buy its apparel was a
counterintuitive attempt to
appeal to consumers’ concerns
about environmental
responsibility and
sustainability.

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 Sociocultural Influences on Consumer Behavior
Family Influences
• For some cultures, family is the primary influence.
Reference Groups
• Made up of people to whom a consumer compares
themselves.
Opinion Leaders
• Individuals who exert an unequal amount of influence on the
decisions of others because they are considered
knowledgeable about particular products.

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 Family Lifecycle
Family lifecycle describes distinct family-related phases that an individual
progresses through over the course of their life time.

Unmarried Married with Married with small

no kids children or tweens

Married with Married without Unmarried

teens dependent children survivor
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 In class Activity

In small groups discuss why you purchase some

products instead of others. For example, why do you
buy a certain type of shampoo or deodorant? Create a
list of preferred items you purchase and why you
purchase them. Why would information about this
purchasing behavior be important to marketers? Be
prepared to present your findings to the class.

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 Involvement Influences on Consumer Behavior 1
Involvement is the personal, financial, and social significance of
the decision being made.

Access the text alternative for slide images.

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 Involvement Influences on Consumer Behavior 2
Low-involvement products
• Consumers often don’t recognize their desire for this type of
product until they are in the store.
• Marketers can use in-store promotion, unique packaging, or
special displays to drive these types of purchases.
High-involvement products
• Companies that market high-involvement products must
provide potential consumers with extensive and helpful
information as they go through the decision-making process.

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 Variations of the Consumer Purchase Decision Process 1

Routine Problem Limited Problem Extended Problem

Solving Solving Solving
Example Toothpaste New Cell Phone New Car
Frequency of Regularly Occasionally Infrequently or
Purchase never
Experience in Experienced Some experience None or little
Purchasing experience
Level of Usually low level Mid-level High level
Involvement

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 Variations of the Consumer Purchase Decision Process 2

Routine Problem Limited Problem Extended Problem

Solving Solving Solving
Coverage of Decision-
Making Stages:
Problem Recognition Yes Yes Yes
Information Search No Limited amount Yes
Evaluating Alternatives No Limited amount Yes
Making the Purchase Yes Yes Yes
Post-Purchase Limited amount Yes Yes
Evaluation

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 Marketing Analytics: Using Data to Understand
Consumer Behavior

Using Research to Develop

Understanding Influences on
Predictive Models of
Consumers
Consumer Behavior

Models of Consumer
Decision Making

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 Using Research to Develop Predictive Models of
Consumer Behavior
• In marketing we are primarily interested in how consumers
think and behave in a marketplace.
• Firms use data to convert theories of how people think and
behave into workable models that can predict how
consumers will respond to market offerings.
• Ongoing data collection must occur; for example, consumer
post-purchase surveys.

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