Understanding Buyer Decision Process
Understanding Buyer Decision Process
The buyer's decision-making process in consumer behavior is a complex series of steps that
individuals go through when deciding whether to purchase a product or service. It involves
various stages, and understanding this process is crucial for businesses to effectively market
and sell their offerings. The process is typically broken down into several stages:
1. Problem Recognition: This is the first stage where consumers recognize a need or a
problem that can be satisfied by making a purchase. This need can arise from various
factors such as dissatisfaction with a current product, an emerging trend, or a personal
desire.
2. Information Search: Once the need is identified, consumers actively seek information
to find potential solutions. Information can be gathered from personal experiences,
friends and family, advertisements, online reviews, or other sources.
3. Evaluation of Alternatives: Consumers compare different products or services to
evaluate their features, benefits, and drawbacks. They may consider factors such as
price, quality, brand reputation, and reviews during this stage.
4. Purchase Decision: After evaluating the available options, the consumer makes a
decision to purchase a particular product or service. This decision can be influenced
by various factors, including personal preferences, recommendations, or promotional
activities.
5. Purchase: In this stage, the consumer actually buys the chosen product or service.
This may involve online or offline transactions, depending on the nature of the
purchase.
6. Post-Purchase Evaluation: After making the purchase, consumers assess their
satisfaction with the product or service. If the expectations are met or exceeded, it
leads to positive reinforcement. However, if there is dissatisfaction, it can result in
post-purchase dissonance or regret.
7. Post-Purchase Behavior: Consumers may share their experiences through reviews,
word-of-mouth, or social media. Positive post-purchase behavior can lead to brand
loyalty and repeat purchases.
Buyer Decision
1. Product Choice – Product choice refers to the process through which a consumer selects a
specific product from among the various options available in the market. Example of
smartphone.
Let's consider an example of product choice using the process described earlier. Suppose
a consumer is looking to purchase a new smartphone:
i. Need Recognition: The consumer recognizes the need for a new smartphone,
perhaps because their current phone is outdated, slow, or lacks certain features
they desire.
Information Search: The consumer starts researching
smartphones by reading online reviews, comparing
specifications, and seeking recommendations from
friends or family. They may visit websites, watch
YouTube reviews, and explore social media to gather
information.
ii. Evaluation of Alternatives: The consumer considers various smartphone options
from different brands. They weigh factors such as camera quality, battery life,
processing speed, brand reputation, and price. Alternatives may include models
from Apple, Samsung, Google, and other manufacturers.
iii. Purchase Decision: After careful consideration, the consumer decides to purchase
a specific smartphone model. This decision could be influenced by a combination
of factors, such as the phone's camera capabilities, positive reviews, and a
competitive price point.
iv. Purchase: The consumer goes to a retail store or visits an online platform to make
the actual purchase. They may choose to buy from a specific retailer or directly
from the smartphone manufacturer.
v. Post-Purchase Evaluation: After using the new smartphone, the consumer assesses
whether it meets their expectations. If the device performs well, has the desired
features, and satisfies their needs, the consumer is likely to feel satisfied with their
choice.
vi. Post-Purchase Behavior: The consumer might share their positive experience with
the new smartphone on social media, write a review online, or recommend it to
friends. This positive post-purchase behavior can contribute to the brand's
reputation and influence others in their product choices.
In this example, the product choice of a smartphone involves a series of steps where the
consumer actively engages in information search, evaluation, and decision-making based
on various factors. The final choice is influenced by personal preferences, product
features, brand reputation, and other consideration.
2. Brand Choice - Brand choice is a specific aspect of the broader decision-making process
where consumers select a particular brand from among the available alternatives in a
product category. Brand choice is influenced by various factors, and consumers often
consider a range of elements when making decisions related to brands.
i. Brand Awareness: Consumers need to be aware of the existence of a brand
before considering it as a choice. Brand awareness can be influenced by
advertising, word of mouth, past experiences, and other marketing efforts.
ii. Brand Consideration: In this stage, consumers actively consider different
brands within a product category. They may create a shortlist of brands based
on factors such as reputation, perceived quality, brand image, and familiarity.
iii. Brand Evaluation: Consumers assess and compare the attributes and benefits
associated with each brand on their shortlist. This evaluation may involve
considering factors like product features, quality, price, brand trustworthiness,
and the overall brand experience.
iv. Brand Preference: Based on the evaluation, consumers may develop a
preference for one brand over others. This preference can be influenced by
personal experiences, positive reviews, or a brand's alignment with the
consumer's values and lifestyle.
v. Brand Choice: The final decision involves choosing one brand over others
when making a purchase. This decision is influenced by a combination of
rational and emotional factors, including product performance, perceived
value for money, and emotional connections to the brand.
vi. Purchase: The consumer then goes ahead and buys the product associated with
the chosen brand. This could happen in a physical store, online, or through
other distribution channels.
vii. Post-Purchase Evaluation: After the purchase, the consumer evaluates their
satisfaction with the chosen brand. Positive experiences may reinforce brand
loyalty, while negative experiences could lead to reconsideration in future
purchases.
viii. Brand Advocacy: Satisfied customers may become advocates for the chosen
brand. They may recommend the brand to friends and family, write positive
reviews, or engage in other forms of brand advocacy.
Brand choice is influenced by a combination of marketing efforts, brand
reputation, product quality, personal preferences, and social influences.
Companies invest in building strong brands to increase the likelihood of being
chosen by consumers in a competitive market.
3. Dealer Choice - Dealer choice, in the context of the buyer's decision process, refers to the
selection of a specific dealer or retailer from whom a consumer will make a purchase.
This decision is an important aspect of the overall buying process, especially for products
that are distributed through various channels or where there are multiple dealers offering
the same or similar products. The process of dealer choice involves several stages:
i. Identification of Dealers: Consumers start by identifying potential dealers or
retailers who offer the product or service they are interested in. This identification
can occur through various means, including online searches, recommendations
from friends or family, or exposure to advertising.
ii. Information Search: Once potential dealers are identified, consumers engage in an
information search to gather details about each dealer. This information may
include factors such as location, reputation, customer reviews, pricing, return
policies, and additional services.
iii. Dealer Evaluation: Consumers evaluate the different dealers based on the gathered
information. They assess factors like the dealer's credibility, customer service,
trustworthiness, and the overall shopping experience associated with each option.
iv. Comparison of Dealers: Consumers compare the strengths and weaknesses of each
dealer to determine which one aligns best with their preferences and requirements.
This comparison may involve considering the convenience of the location, the
range of products or services offered, and any additional benefits or incentives.
v. Dealer Preference: Based on the evaluation and comparison, consumers may
develop a preference for one dealer over others. This preference could be
influenced by factors such as a positive reputation, competitive pricing, or positive
past experiences with the dealer.
vi. Dealer Choice: The final decision involves selecting a specific dealer to make the
purchase. Consumers may choose the dealer that best meets their needs, provides
a positive shopping experience, and aligns with their preferences.
vii. Purchase: After choosing a dealer, the consumer proceeds to make the actual
purchase. This could occur in a physical store, through an online platform, or via
other sales channels provided by the chosen dealer.
viii. Post-Purchase Evaluation: Following the purchase, consumers assess their
satisfaction with the chosen dealer. Positive experiences may contribute to brand
loyalty and influence future purchase decisions.
Dealer choice is a critical aspect of the overall buyer's decision process, as the chosen
dealer can significantly impact the overall customer experience. Factors such as customer
service, product availability, pricing, and the ease of the purchasing process play key roles
in influencing consumers' decisions regarding which dealer to choose.
4. Purchase Timing – Purchase timing is a crucial aspect of the buyer decision-making
process and refers to the moment when a consumer decides to make a purchase based on
the timing of their needs, preferences, and external factors. This aspect is particularly
relevant for products or services that may have varying levels of demand or are
influenced by factors such as seasonality, promotions, or individual circumstances. Here's
how purchase timing fits into the broader buyer decision-making process:
i. Need Recognition: The decision-making process begins with the recognition of a
need or desire. This could be triggered by a variety of factors such as a change in
circumstances, the emergence of a new need, or the recognition of a problem that
requires a solution.
ii. Information Search: Consumers actively seek information about products or
services that could satisfy their identified need. During this stage, they may also
consider external factors such as the timing of promotions, sales events, or
seasonal discounts.
iii. Evaluation of Alternatives: Consumers assess and compare various options, taking
into account not only the features, quality, and price of products but also the
timing of their purchase. They may evaluate whether waiting for a sale or specific
timing could offer better value.
iv. Brand Choice: Brand considerations may also be influenced by timing. For
example, a consumer may prefer a specific brand known for seasonal releases or
promotions during certain times of the year.
v. Dealer Choice: The choice of dealer or retailer can be influenced by timing-related
factors, such as proximity to sales events, availability of promotions, or the
dealer's reputation during specific periods.
vi. Purchase Choice and Timing: The final purchase decision is influenced by the
optimal timing for the consumer. This could involve waiting for a specific time of
the year (e.g., holiday season, Black Friday) or taking advantage of limited-time
promotions.
vii. Purchase: The consumer completes the transaction, making the purchase at the
chosen time. This may involve taking advantage of discounts, promotions, or
other timing-related incentives.
viii. Post-Purchase Evaluation: After the purchase, consumers may reflect on whether
the timing of their decision was advantageous. Positive post-purchase evaluation
may lead to a continued consideration of timing in future purchases.
Understanding the role of purchase timing in the decision-making process allows
businesses to strategically plan their marketing efforts, promotions, and sales events
to align with consumer behaviors. It also highlights the importance of recognizing
when consumers are most likely to make purchasing decisions, allowing businesses to
optimize their strategies and cater to consumer preferences.
5. Purchase Amount – The purchase amount is a critical component of the buyer decision-
making process, representing the monetary value that a consumer is willing to spend on a
particular product or service. The decision-making process regarding the purchase amount
involves considerations of budget, perceived value, and the perceived benefits of the
chosen product or service. Here's how purchase amount fits into the broader buyer
decision-making process:
i. Need Recognition: The decision-making process begins with the recognition of a
need or desire. This need can influence the budgetary considerations for the
purchase.
ii. Information Search: Consumers gather information about available products or
services, including their prices. This information search helps them understand the
range of prices for items that meet their identified need.
iii. Evaluation of Alternatives: During the evaluation stage, consumers assess not only
the features, quality, and benefits of products but also their respective prices. The
perceived value for money becomes a crucial factor in the decision-making
process.
iv. Brand Choice: The choice of a specific brand can also influence the perceived
value, and consumers may associate certain brands with higher or lower price
expectations.
v. Dealer Choice: The choice of dealer or retailer can impact the purchase amount.
Different dealers may offer the same product at varying prices or with different
promotional incentives.
vi. Purchase Choice and Amount: The final decision involves selecting a specific
product or service along with the associated purchase amount. Consumers weigh
factors such as budget constraints, perceived value, and the overall cost-benefit
ratio in making this decision.
vii. Negotiation or Price Matching: In some cases, consumers may engage in
negotiation with the seller or explore price-matching options to ensure they get the
best possible deal.
viii. Purchase: The consumer completes the transaction by making the purchase at the
chosen price point. This involves payment, whether in-store, online, or through
other payment methods.
ix. Post-Purchase Evaluation: After the purchase, consumers may reflect on whether
the chosen product or service was worth the amount paid. Positive post-purchase
evaluation may lead to future purchases, while dissatisfaction may influence
future budgetary considerations.
Understanding the factors that influence the purchase amount is crucial for businesses
in pricing their products or services strategically. It involves considerations of
perceived value, competitive pricing, and the alignment of the product or service with
the budget constraints and expectations of the target consumers. Marketers can use
pricing strategies, discounts, and promotional offers to influence consumers'
perceptions of value and encourage them to make purchases within their budgetary
constraints.
Culture Factors
1. Culture - It encompasses the values, beliefs, customs, rituals, and norms shared by
a group of people, influencing their behaviors, preferences, and consumption
patterns. Understanding the cultural factors in consumer behavior is essential for
businesses to tailor their marketing strategies effectively.
i. Cultural Values and Beliefs: Cultural values and beliefs shape individuals'
perceptions of what is desirable or acceptable. For example, in some
cultures, frugality and saving money may be highly valued, influencing
purchasing decisions, while in others, conspicuous consumption and
luxury may be emphasized.
ii. Cultural Rituals and Traditions: Cultural rituals and traditions can impact
consumer behavior. For instance, certain products may be associated with
specific cultural celebrations or events, leading to increased demand
during those times.
iii. Cultural Sensitivity in Product Design: The design of products needs to be
culturally sensitive. Colors, shapes, and features may carry different
meanings in various cultures. Adapting products to align with cultural
preferences enhances their acceptance in the market.
Marketers need to be culturally aware and adapt their strategies to align with the
cultural context of their target audience. Failing to understand and respect cultural
factors can lead to misunderstandings, ineffective marketing campaigns, and potential
damage to brand reputation.
2. Sub-Culture - Subculture, as a cultural factor in consumer behavior, refers to
smaller groups within a larger culture that share distinctive values, behaviors, and
consumption patterns. Subcultures emerge based on factors such as age, ethnicity,
religion, social class, geographical location, or shared interests. Understanding
subcultures is crucial for marketers as they often exhibit unique preferences and
behaviors that differ from the mainstream culture.
i. Age-Based Subcultures: Different age groups often form distinct
subcultures with their own preferences and consumption patterns. For
example, teenagers, millennials, and baby boomers may have different
attitudes toward brands, technology, and lifestyle choices.
ii. Religious Subcultures: Religious affiliations can shape subcultures with
specific values and norms. For example, certain religious groups may have
dietary restrictions that influence their food choices, and their preferences
may extend to other products and services.
iii. Gender-Based Subcultures: Subcultures can form around gender identities,
influencing consumer behavior. Products and marketing messages may be
tailored to specific gender-based subcultures, recognizing differences in
preferences and needs.
iv. Lifestyle Subcultures: Shared interests and lifestyles can lead to the
formation of subcultures. For example, individuals with a passion for
outdoor activities may form a subculture with specific preferences for
outdoor gear and recreational products.
3. Social Class – Social class is a significant cultural factor that influences consumer
behavior. Social class refers to a division of society based on economic and social
factors, including income, education, occupation, and lifestyle. It is a cultural
aspect that shapes individuals' values, preferences, and consumption patterns.
Understanding the impact of social class is essential for marketers, as it plays a
crucial role in determining how consumers perceive and interact with products
and brands.
Social Factors
i. Reference group - A reference group is a term used in consumer behavior to describe
the individuals or groups that consumers compare themselves to or use as a standard
for evaluating their own attitudes, behaviors, and preferences. Reference groups play
a significant role in shaping consumer behavior and influencing purchasing decisions.
ii. Family - plays a crucial role in influencing consumer behavior. The family unit is
often considered one of the primary socialization agents, shaping individuals'
attitudes, values, and preferences.
iii. Roles & status – Roles and status are important elements in consumer behavior,
influencing how individuals make choices and interact with products and services.
Personal Factors
i. Formation of Personal Identity: The family life cycle contributes to the formation of
an individual's personal identity. Experiences, roles, and responsibilities within the
family shape one's sense of self and influence personal preferences.
ii. Changing Needs and Priorities: As individuals move through different stages of the
family life cycle, their needs and priorities evolve. For example, the needs of a
bachelor are different from those of a married couple with young children or empty
nesters. These changing needs impact purchasing decisions.
iii. Life Transitions: Life transitions, such as marriage, parenthood, and becoming an
empty nester, are integral parts of the family life cycle. These transitions often trigger
changes in consumption patterns and preferences.
iv. Roles and Responsibilities: Different stages of the family life cycle involve distinct
roles and responsibilities. These roles influence decision-making, and individuals may
consider family needs and dynamics when making purchases.
v. Financial Considerations: The family life cycle is often associated with changing
financial circumstances. Financial considerations, such as income levels, budgeting
priorities, and expenditure patterns, become integral personal factors influencing
consumer behavior.
vi. Time Constraints: The demands on time vary across life cycle stages. Individuals in
the full nest stage with young children may face time constraints that influence their
shopping behaviors, such as preferring convenience-oriented products.
vii. Socialization and Influence: The family life cycle plays a crucial role in socialization.
Personal preferences, brand choices, and consumption habits are often influenced by
the social environment within the family, impacting how individuals express their
personal tastes.
viii. Personal Values and Beliefs: Personal values and beliefs are shaped and reinforced
within the family context. These values influence product choices, ethical
considerations, and the alignment of purchases with personal principles.
ix. Decision-Making Autonomy: Autonomy in decision-making varies across life stages.
Young adults may have more autonomy in their choices, while decisions in family-
oriented stages may involve collaborative or joint decision-making.
Recognizing the family life cycle as a personal factor in consumer behavior allows
marketers to tailor their strategies to the unique characteristics and needs associated with
each stage. By understanding how individuals navigate through different life cycle stages,
marketers can develop targeted messages, products, and services that resonate with
consumers at various points in their personal journeys.
Psychological Factors –
1. Perception: Selective Attention: Consumers tend to focus on certain stimuli while
ignoring others. Marketers use this by creating attention-grabbing advertisements or
packaging.
Selective Distortion: Consumers interpret information in a way that aligns with their
existing beliefs. Marketers need to be aware of this when conveying messages.
2. Motivation: Maslow's Hierarchy of Needs: Consumers are motivated by needs such as
physiological, safety, social, esteem, and self-actualization. Marketers often appeal to
these needs in their messaging.
3. Learning: Cognitive Learning: Consumers learn through experiences and information
processing. Marketers can facilitate learning by providing clear and compelling
product information.
4. Attitudes and Beliefs: Cognitive Dissonance: Consumers strive for consistency in
their beliefs and attitudes. Marketers can reduce post-purchase dissonance by
reinforcing positive aspects of the product or service.
5. Personality and Lifestyle: Brand Personality: Consumers may choose brands that
align with their own personality traits or lifestyle. Marketing efforts often aim to
create a brand personality that resonates with the target audience.
6. Social Influence: Reference Groups: Consumers are influenced by the opinions and
behaviors of reference groups, such as friends, family, and celebrities. Word-of-mouth
and social media play a significant role in this aspect.
7. Cultural and Subcultural Factors: Cultural Values: Culture shapes consumers' values,
beliefs, and behaviors. Marketers must consider cultural nuances in their advertising
and product positioning.
8. Perceived Risk: Risk Perception: Consumers assess the level of risk associated with a
purchase, such as financial risk, performance risk, and social risk. Marketers can
mitigate perceived risks through guarantees, warranties, and testimonials.
9. Emotions: Emotional Appeal: Emotional responses can significantly impact
purchasing decisions. Marketers use emotional appeals in advertising to create
positive associations with their products.
10. Self-Concept: Self-Image: Consumers make purchases that align with their self-
concept. Marketers often emphasize how a product can enhance or complement the
consumer's identity.
Buyer Roles
In consumer behavior, the concept of "buying roles" refers to the different roles that
individuals may take on when making a purchase decision. These roles are often categorized
based on the level of involvement and responsibility each person has in the decision-making
process. The main buying roles include:
1. Initiator: The person who first recognizes a need or desire for a particular product or
service. This individual may start the decision-making process by identifying a problem
or an opportunity that requires a purchase.
2. Influencer: Individuals or groups that provide information or recommendations that
influence the decision-making process. Influencers may not necessarily make the final
decision, but their opinions and suggestions carry weight.
3. Decider: The person who has the authority to make the final decision on the purchase.
This role is crucial, especially in cases where multiple individuals are involved in the
decision-making process.
4. Buyer: The person responsible for executing the actual purchase. This may or may not be
the same individual as the decider. In some cases, the buyer and decider may be different
people with the buyer being tasked with making the transaction.
5. User: The individual or group of individuals who will use the product or service.
Understanding the needs and preferences of the end-user is essential for businesses to
ensure customer satisfaction.
6. Gatekeeper: An individual or group that controls the flow of information to others
involved in the decision-making process. Gatekeepers can be particularly influential in
business-to-business (B2B) settings where there may be layers of decision-makers.
These buying roles are often applicable in both consumer and business contexts, but the
level of complexity and the number of people involved may vary. For example, in a
family purchasing a household appliance, different family members may take on various
buying roles. In a business setting, the decision-making process can involve multiple
individuals or departments. Understanding these roles helps marketers tailor their
strategies to effectively target and communicate with the key influencers, decision-
makers, and users involved in the purchase process. It also helps businesses anticipate
potential challenges and address the specific needs of each buying role to enhance the
overall consumer experience.
Buying Behavior
i. Complex
ii. Dissonance – Reducing
iii. Habitual
iv. Variety seeking
Buying Process
The buying process, also known as the consumer decision-making process, is a series of steps
that individuals go through when considering, evaluating, and making a purchase. While the
process may vary depending on the complexity of the decision or the type of product or
service, the general buying process typically involves the following stages:
Let's go through the buying process in consumer behavior with an example. For this
illustration, we'll consider the purchase of a smartphone:
1. Problem Recognition: Example: Sara realizes that her current smartphone is outdated
and has a slow performance. She recognizes the need for a new smartphone with
better features and capabilities.
2. Information Search: Example: Sara starts researching online, reads reviews, and asks
friends for recommendations. She looks for information about various smartphone
brands, models, features, and prices.
3. Evaluation of Alternatives: Example: After gathering information, Sara creates a
shortlist of potential smartphones based on factors like camera quality, processing
speed, battery life, and brand reputation. She compares models from Apple, Samsung,
and Google.
4. Purchase Decision: Example: After careful consideration, Sara decides to purchase the
latest model of the iPhone. Her decision is influenced by the perceived quality, brand
loyalty, and positive reviews from friends who own iPhones.
5. Purchase Process: Example: Sara goes to the Apple store, selects the specific iPhone
model and color she wants, and completes the purchase transaction. She may also
choose to buy accessories like a protective case or screen protector.
6. Post-Purchase Evaluation: Example: After using the iPhone for a few weeks, Sara is
highly satisfied with its performance, camera quality, and overall user experience. She
feels that the purchase met or exceeded her expectations.
7. Post-Purchase Behavior: Example: Sara becomes an advocate for Apple, sharing her
positive experience with friends and on social media. She writes a positive online
review and joins online communities to discuss and share tips about her new iPhone.
These post-purchase actions play a crucial role in shaping a business's reputation and success.
Positive actions, such as word-of-mouth recommendations and repeat purchases, contribute to
customer loyalty and brand advocacy. On the other hand, negative actions, like complaints or
returns, can highlight areas for improvement and impact the brand negatively. Businesses
often implement strategies to encourage positive post-purchase behavior and address any
issues that may arise.
Dispose -
"Use and dispose" is a concept in consumer behavior that refers to the stages of a product's
life cycle after it has been purchased. It involves how consumers use the product and
ultimately dispose of it. Understanding these stages is crucial for businesses in terms of
product design, marketing, and sustainability efforts.
Disposal: Example: Eventually, Alice decides to dispose of her old smartphone. She might
recycle it, sell it, donate it, or properly discard it according to environmental guidelines.
PART – 2
Consumer Behaviour – The mental and emotional processes and physical activities people
engage in when they select, purchase, use, and dispose of products or services to satisfy
particular needs and desires.
3. Brand Positioning: Consumer behavior research aids in defining and refining a brand's
positioning in the market. By understanding how consumers perceive their brand
compared to competitors, marketers can develop strategies to differentiate their offerings
and create a unique value proposition that resonates with their target audience.
Example: A fast-food chain realizes through consumer surveys that its target audience
perceives its brand as offering unhealthy food options. To change this perception, the
company launches a marketing campaign emphasizing its commitment to using fresh,
locally sourced ingredients and promoting healthier menu choices to align its brand with
health-conscious consumers.
2. Attention: Once exposed to the information, consumers must pay attention to it for further
processing. Attention is selective and influenced by factors such as the relevance of the
information, its novelty, and the consumer's own interests and motivations. Example:
Within the same social media feed, the consumer's attention is captured by a video
showcasing the smartphone's camera capabilities. The vibrant visuals, dynamic
transitions, and captivating content lead the consumer to focus on the advertisement
amidst the clutter of other posts.
3. Perception: After paying attention to the information, consumers interpret and make sense
of it through perceptual processes. This involves organizing and understanding sensory
inputs such as sight, sound, taste, touch, and smell to form meaningful impressions of the
product or service.
Example: As the consumer watches the video advertisement, they perceive the
smartphone as a powerful tool for capturing high-quality photos and videos. The sleek
design, innovative features, and user-friendly interface are interpreted positively, shaping
the consumer's initial impression of the product.
Learning:
1. Learning refers to the process through which consumers acquire new knowledge
or behaviors. In marketing, learning often occurs through experiences with
products, advertisements, or other stimuli. Key aspects of learning include:
2. Behavioral Learning: Consumers learn through direct experience with products.
For example, a consumer may learn that a certain brand of soda tastes better than
others through repeated consumption.
3. Cognitive Learning: Consumers also learn through mental processes such as
reasoning, problem- solving, and information processing. For instance, they may
learn about a brand features and benefits through advertising or word-of-mouth.
Memory: Memory plays a crucial role in consumer behavior, influencing brand recall and
purchase decisions. Memory can be divided into several types, each with its own
characteristics:
1. Sensory Memory: This is the initial stage of memory, where sensory information
is briefly stored for a very short duration (less than a second). Sensory memory
helps consumers to perceive and interpret stimuli from the environment. For
example, seeing a brand logo or hearing a brand jingle creates sensory memory.
2. Short-Term Memory (STM): STM has limited capacity and stores information for
a short period, typically around 20-30 seconds without rehearsal. Consumers use
STM to process and evaluate information before deciding whether to encode it
into long-term memory. For instance, remembering a brand name while shopping
in a store.
3. Long-Term Memory (LTM): LTM is where information is stored for an extended
period, from hours to years. It has virtually unlimited capacity and can hold vast
amounts of information. Within LTM, there are different levels of accessibility,
including:
Top-of-Mind Awareness (TOMA): This refers to brands that are
immediately and spontaneously recalled by consumers when thinking
about a particular product category.
Achieving TOMA is a key objective for marketers as it increases the
likelihood of brand consideration and purchase. For example, Coca-Cola
often achieves top-of-mind awareness in the soft drink category.
Brand Recall: Brand recall occurs when consumers retrieve a brand from
memory with or without any related stimulus. Effective branding,
advertising, and other marketing activities
enhance brand recall, ensuring that the brand is remembered when consumers are making
purchasing decisions.
Perception:
Perception involves the process of selecting, organizing, and interpreting sensory
information to give it meaning and significance. In marketing, perception influences how
consumers perceive brands, products, and marketing stimuli. Key elements of perception
include:
Selective Attention: Consumers tend to pay attention to stimuli that are relevant to their
needs or interests while filtering out irrelevant information. Marketers use various
strategies to capture consumers; attention, such as eye-catching packaging or engaging
advertisements.
Perceptual Organization: Consumers organize sensory information into meaningful
patterns and structures. Marketers can leverage principles of perceptual organization, such
as proximity, similarity, and closure, to create visually appealing designs and layouts.
Interpretation: Consumers interpret sensory information based on their beliefs, attitudes,
and pastexperiences. Marketers must understand consumers' perceptual processes to
effectively communicate brand messages and positioning.
2. Dissatisfaction:
Definition: Dissatisfaction occurs when the product or service fails to meet the
consumer's expectations or falls short in some way, leading to feelings of
disappointment, frustration, or regret.
Causes of Dissatisfaction: Dissatisfaction can arise from various factors, such as
product defects, poor customer service, misleading advertising, or unmet needs
and preferences.
Contributing to Dissonance: If consumers experience dissatisfaction with their
purchase, it can exacerbate post-purchase dissonance. They may question their
decision-making process, feel regretful about their choice, and contemplate
returning the product or switching to a different brand.
Example: John buys a pair of running shoes from a well-known brand, expecting
them to provide superior comfort and support during his workouts. However, after
wearing them for a few days, he notices that the shoes cause discomfort and pain
in his feet. John feels dissatisfied with his purchase, as the shoes did not meet his
expectations of quality and performance. He considers returning them to the store
for a refund.
3. Delight:
Definition: Delight refers to an exceptionally positive and memorable experience
that exceeds the consumer's expectations, creating feelings of joy, surprise, or
excitement.
Creating Delight: Delightful experiences can result from unexpected perks,
personalized service, exceptional product performance, or meaningful interactions
with the brand.
Mitigating Dissonance: When consumers are delighted with their purchase, it can
counteract any potential post-purchase dissonance. They feel positively reinforced
in their decision, develop stronger emotional connections with the brand, and are
more likely to become loyal advocates.
Example: Emily orders a custom-made birthday cake from a local bakery for her
daughter's birthday party. When she picks up the cake, she is delighted to find that
it not only looks beautiful but also tastes delicious. The intricate design and
personalized touch exceed Emily's expectations, and she receives numerous
compliments from guests at the party. Emily is delighted with the cake and plans
to order from the bakery for future occasions.
4. Post-Purchase Dissonance:
Definition: Post-purchase dissonance, also known as buyer's remorse, refers to the
psychological discomfort or tension that arises after making a purchase decision,
particularly when consumers perceive a discrepancy between their expectations
and the actual product or service performance.
Factors Influencing Dissonance: Post-purchase dissonance can be influenced by
the degree of commitment involved in the purchase, the importance of the
decision, and the availability of alternative options.
Managing Dissonance: Marketers can mitigate post-purchase dissonance by
providing clear and accurate product information, offering reassurance through
warranties or return policies, soliciting feedback to address concerns, and
fostering positive post-purchase experiences.
Example: David purchases a high-end laptop after extensive research and
comparison shopping. However, shortly after making the purchase, he starts
experiencing post-purchase dissonance. Despite the laptop's impressive
specifications, David begins to doubt his decision when he encounters minor
performance issues and realizes that he could have bought a similar model at a
lower price. He feels conflicted about whether he made the right choice and
considers returning the laptop or seeking a refund.
1. Motivation
Motivation is an important factor influencing a consumer's behaviour and helping a
brand create marketing plans. Each consumer is unique in what motivates their
purchasing decision. A consumer might only make a purchase if the product or brand
meets their requirements. Brands can market these products to solve consumer
problems, which might motivate them to purchase. To understand customers'
motivation levels, consider Maslow's hierarchy of needs theory. This hierarchy
outlines five different levels of human needs ranked by priority. The lower hierarchy
level includes basic needs, such as hunger and shelter.A higher hierarchy level
includes needs such as self-fulfilment, belonging and love. According to Maslow, only
when consumers meet the lower-level needs do they address higher-level needs. This
hierarchy is essential for understanding a consumer's needs. When a brand
understands the needs of a consumer and the motivation behind those needs, it helps
create highly targeted segments. For instance, an electronics brand can start its
marketing campaign by highlighting that older washing machines are no longer in
style, encouraging consumers to adapt to new and innovative technologies.
2. Learning
Learning introduces new information that changes a customer's behaviour and
perception from previous experience. It is highly relevant in understanding consumer
behaviour for a particular market. While learning can be both experiential and non-
experiential, marketing teams focus on non-experiential learning. Non-experiential
learning is the practice of learning through investigation and observation. This
psychological factor is essential because consumers value the experience of friends
and family members more than the information provided directly by a brand.The
marketing team can achieve this through case studies, consumer reviews and
informational leaflets. Typically, the team uses non-experiential learning to provide
consumers with information related to products and services. This information teaches
customers about products and services from the experiences of others. Often, a
consumer seeks this non-experiential learning to gain insights about a product and
make their purchase decision. Consumers are more inclined to purchase when a brand
makes non-experiential learning readily available.
3. Reinforcement
Reinforcement is a subset of learning in which consumers have their thoughts,
opinions and learning validated through rewards and punishments. This psychological
factor is essential because consumers return to a brand when the information they
learned and gathered about a product or service is true. Conversely, if a consumer
learns about a product with negative reinforcement, they might never purchase again
from the brand. Understanding how reinforcement influences customers' purchasing
decisions and behaviour is essential to create a marketing campaign that resonates
with the target audience. For instance, a customer may learn that new eyeliner is
smudge-proof and lasts more than 12 hours. When a customer purchases the eyeliner
and notices that the brand's claims are correct, this results in positive reinforcement.
This motivates consumers to make repeat purchases and they might share the
information about it with their friends and family members. This behaviour
encourages other consumers to purchase, which can increase sales.
4. Socialisation
Socialisation is a psychological factor that focuses on internalizing the norms and
values of society, based on the environment. Consumers use socialisation to learn
specific normalized behaviours that might change with time. They learn these
behaviours from socialisation agents, such as parents, siblings, politicians, teachers
and celebrities. These agents consciously and unconsciously teach consumers about
behavioural patterns. Often, information a brand shares with consumers can serve as a
socialisation agent.To attract consumers, marketers can socialise and encourage them
to make purchase decisions. Socialisation can influence their behaviour because it
establishes a certain type of engagement. Often, the marketing team might align the
campaign based on the customer's socialisation pattern. This can encourage positive
interaction between a consumer and a brand.
5. Attitudes and beliefs
Another important psychological factor that influences consumer behaviour is their
attitudes and beliefs. Attitude is how a consumer thinks, feels and behaves. It refers to
emotions, behaviours and beliefs toward a particular object, person or event. Belief is
a fact or proposition that an individual believes or accepts as true. When a consumer
holds a negative belief and attitude toward a particular brand, it discourages them
from interacting and purchasing from a brand. Attitudes and beliefs can affect the
decision-making process. The marketing campaign can bring a positive change in the
consumer's attitude. Typically, when a consumer has a negative brand attitude, the
marketing team can change their strategy and develop a product that meets
expectations. It is essential for a marketing team to understand that shifting consumer
attitudes and beliefs is challenging. For instance, if a consumer lives in a family that
uses one perfume brand, they might believe that other brands are not as good. When
purchasing a perfume, their attitude might affect their purchase decision.
6. Perception
Perception refers to the way an individual organises and interprets sensory
information. For consumers, perception helps an individual think about a product and
dictates how they engage with a brand. It is challenging for marketing professionals to
understand consumers' perceptions because each individual might perceive
information differently based on their experience and knowledge. Because of the
different perceptions of two consumers with identical needs, they might purchase
different products. As a result, marketing professionals can strive to understand
processes that lead to a difference in perception.An individual might make a purchase
decision based on selective attention, retention and distortion. In selective attention,
consumers pay attention to information immediately useful for them. In selective
retention, consumers recollect useful information and forget unnecessary information.
Selective distortion is the process in which consumers perceive information in a
biased way that reinforces existing beliefs and experiences.
Consumer Culture
Refers to the shared beliefs, values, norms, customs, and practices that characterize a
particular group of people. It encompasses everything from language, religion, and social
structure to food preferences, fashion, and leisure activities.
1. Values and Beliefs: Consumer culture reflects the values and beliefs prevalent in a
society. These values influence consumers' perceptions of products and brands. For
example, in cultures that prioritize sustainability and environmentalism, consumers
may prefer eco-friendly products.
2. Lifestyle and Identity: Consumption is often tied to identity and social status. People
use products and brands to express their identity, social status, and belonging to
certain groups or communities. For example, luxury brands are often associated with
wealth and status.
3. Rituals and Traditions: Consumption is often embedded in rituals and traditions
within a culture. For example, holidays and special occasions often involve specific
consumption patterns, such as gift-giving or feasting.
4. Symbols and Meanings: Products and brands carry symbolic meanings that go
beyond their functional utility. Consumers interpret these symbols based on their
cultural context. For example, a particular brand of sneakers may symbolize
athleticism, rebellion, or fashion depending on the cultural context.
5. Media and Advertising: Consumer culture is influenced by media and advertising,
which shape perceptions of desirable lifestyles and consumption norms. Advertising
campaigns often tap into cultural values and symbols to resonate with consumers.
7. Globalization: Globalization has led to the spread of consumer culture across
borders, resulting in the adoption of certain consumption patterns and preferences
worldwide. However, local cultures also influence how consumer culture manifests in
different regions.
8. Values and Beliefs: Consumer culture reflects the values and beliefs prevalent in a
society. These values influence consumers' perceptions of products and brands. For
example, in cultures that prioritize sustainability and environmentalism, consumers
may prefer eco-friendly products.
9. Lifestyle and Identity: Consumption is often tied to identity and social status. People
use products and brands to express their identity, social status, and belonging to
certain groups or communities. For example, luxury brands are often associated with
wealth and status.
10. Rituals and Traditions: Consumption is often embedded in rituals and traditions
within a culture. For example, holidays and special occasions often involve specific
consumption patterns, such as gift-giving or feasting.
11. Symbols and Meanings: Products and brands carry symbolic meanings that go beyond
their functional utility. Consumers interpret these symbols based on their cultural
context. For example, a particular brand of sneakers may symbolize athleticism,
rebellion, or fashion depending on the cultural context.
12. Media and Advertising: Consumer culture is influenced by media and advertising,
which shape perceptions of desirable lifestyles and consumption norms. Advertising
campaigns often tap into cultural values and symbols to resonate with consumers.
13. Globalization: Globalization has led to the spread of consumer culture across borders,
resulting in the adoption of certain consumption patterns and preferences worldwide.
However, local cultures also influence how consumer culture manifests in different
regions.
Understanding consumer culture is essential for marketers and businesses to develop effective
marketing strategies and products that resonate with their target audience. By aligning with
the values, beliefs, and symbols of consumer culture, companies can create stronger
connections with consumers and drive purchasing behavior.
Core societal values are the fundamental beliefs and principles that shape the behavior,
attitudes, and norms of a society. In consumer culture, these values play a significant role in
influencing individuals' consumption patterns, preferences, and decision-making processes.
While the specific core societal values can vary across different cultures and societies, some
common values that are often observed in consumer culture include:
1. Materialism: Materialism is the belief that material possessions and wealth are
important indicators of success, happiness, and social status. In consumer culture,
materialistic values drive individuals to acquire goods and services as a means of self-
expression, identity construction, and social comparison.
2. Individualism: Individualism emphasizes the importance of personal autonomy,
freedom, and self-expression. In consumer culture, individualistic values encourage
consumers to make purchasing decisions based on their personal preferences, tastes,
and desires, rather than conforming to societal norms or expectations.
3. Consumerism: Consumerism is the ideology that encourages the continuous
consumption of goods and services as a means of achieving fulfillment, happiness,
and well-being. In consumer culture, consumerist values promote the idea that one's
worth and identity are closely tied to their ability to consume and possess material
goods.
4. Convenience: Convenience is the value placed on ease of access, efficiency, and
simplicity in fulfilling one's needs and desires. In consumer culture, convenience-
oriented values drive the demand for products and services that offer convenience
features, such as fast food, online shopping, and on-demand entertainment.
5. Quality: Quality refers to the standard of excellence or superiority associated with
products and services. In consumer culture, values related to quality drive consumers
to seek products that offer superior performance, durability, reliability, and
craftsmanship, often at premium prices.
6. Sustainability: Sustainability is the value placed on environmental conservation,
social responsibility, and ethical business practices. In consumer culture,
sustainability-oriented values influence consumers to make eco-conscious purchasing
decisions, such as choosing environmentally friendly products, supporting sustainable
brands, and practicing responsible consumption habits.
7. Status and Prestige: Status and prestige are values associated with social recognition,
admiration, and respect. In consumer culture, status-oriented values drive consumers
to purchase luxury goods, premium brands, and conspicuous consumption items as
symbols of wealth, success, and social standing.
8. Community and Connection: Community and connection values emphasize the
importance of social relationships, belonging, and shared experiences. In consumer
culture, these values drive consumers to seek products and brands that foster social
connections, community engagement, and meaningful interactions with others.
These core societal values shape the dynamics of consumer culture, influencing individuals'
perceptions, motivations, and behaviors in the marketplace. Understanding these values is
essential for businesses and marketers to develop effective strategies for product
development, branding, and marketing communications that resonate with consumers'
cultural values and aspirations.
Consumer lifestyle refers to the way individuals live their lives, including their activities,
interests, opinions, and values, particularly as they relate to consumption behaviors. Lifestyle
encompasses various aspects of daily life, such as hobbies, leisure activities, social
interactions, work-life balance, and purchasing decisions. Here are some key aspects of
consumer lifestyle:
1. Activities and Interests: Consumer lifestyle is characterized by the activities and
interests individuals engage in during their leisure time. This can include hobbies such
as sports, cooking, traveling, gardening, arts and crafts, gaming, and more. Consumer
lifestyles are often influenced by personal preferences, cultural norms, and social
trends.
2. Values and Beliefs: Lifestyle choices are often guided by individuals' values, beliefs,
and ideologies. For example, some consumers may prioritize sustainability and
environmentalism in their lifestyle choices, while others may prioritize convenience,
luxury, or social status. These values influence purchasing decisions and brand
preferences.
3. Social Interactions: Consumer lifestyle is shaped by social interactions and
relationships with others. This can include spending time with family and friends,
participating in social events and gatherings, and engaging in online communities and
social networks. Social influences play a significant role in shaping consumer
behavior and lifestyle choices.
4. Work-Life Balance: Consumer lifestyle also reflects individuals' approach to
balancing work, leisure, and personal responsibilities. This can include preferences for
flexible work arrangements, remote work, or pursuing a career that aligns with
personal passions and interests. Work-life balance considerations impact how
individuals allocate their time and resources for consumption activities.
5. Media and Entertainment Preferences: Lifestyle choices are often reflected in
individuals' media consumption habits and entertainment preferences. This can
include preferences for specific genres of music, movies, TV shows, books, podcasts,
and online content. Media consumption patterns influence cultural trends and shape
consumer lifestyle choices.
6. Health and Wellness: Consumer lifestyle encompasses attitudes and behaviors
related to health and wellness, including diet, exercise, self-care, and healthcare
practices. Health-conscious consumers may prioritize organic foods, fitness activities,
mindfulness practices, and holistic wellness products as part of their lifestyle choices.
Examples: Consumers who prioritize health and wellness may prefer organic foods,
gym memberships, athletic wear brands like Lululemon, and wellness products such
as vitamins or meditation apps.
7. Fashion and Personal Style: Consumer lifestyle can also be expressed through
personal style and fashion choices. This includes preferences for clothing, accessories,
grooming products, and beauty treatments that reflect individual tastes, personality
traits, and cultural influences. Fashion trends and style aesthetics play a role in
shaping consumer lifestyle choices. Examples: Fashion-conscious consumers may
follow trends and purchase clothing from trendy brands like Zara or H&M. They may
also invest in designer accessories, follow fashion influencers on social media, and
attend fashion events.
VALS Farmwork
Vals which is also known as values attitude and lifestyle is one of the primary ways to
perform psychographic segmentation. All three terms are intangible in nature and therefore
give an idea of the inert nature of the consumer. If you know what your consumer is thinking,
you would know what kind of promotions or communications will attract him most. And how
do you know what the consumer is thinking? By determining his vals – Values, attitudes and
lifestyle. VALS is different for different people. Let’s take income as an example. If you are a
person with high income your lifestyle would probably include habits of the SEC A class
such as dining out of home frequently and that too in top class restaurants, wearing only
branded clothes and buying the best cars out there. Whereas if you are a middle class
income group consumer, you would be more wary of spending money and would rather
concentrate on savings.
The VALS framework was developed keeping a consumers resources as well as his capacity
to accept innovation in mind. The X axis consisted of primary motivation (explained
below) and the Y axis consisted of resources such as income, education, confidence etc. Thus
these two factors were determined to be critical to define the values attitude and lifestyle of
any consumer.
Resources – Included resources available to an individual such as income, education,
intelligence, emotional support, etc.
Primary motivation – Which determined what actually drives the individual. Is it
knowledge, the desire to achieve something or is it to be social.