ConsumerBehaviour

Paper Code: BBA503(A)

Introduction to Consumer Behaviour and Consumer Research

Consumer behaviour refers to the study of how individuals, groups, and organizations make decisions about purchasing,
using, and disposing of products and services. It involves understanding the psychological, social, and emotional factors
that influence consumer choices, as well as the broader cultural and environmental forces at play. By analyzing consumer
behaviour, businesses, marketers, and policymakers can design strategies to meet the needs and desires of consumers
more effectively.
Key Aspects of Consumer Behaviour:
1. Psychological Factors: These include motivation, perception, learning, attitudes, and beliefs. Consumers'
motivations and attitudes toward products and services greatly impact their buying decisions.
2. Social and Cultural Factors: The influence of family, friends, social groups, and cultural norms can shape
consumer preferences. Social status, lifestyle, and societal values also play significant roles.
3. Personal Factors: Age, income, occupation, and lifestyle affect how individuals make purchase decisions.
4. Decision-Making Process: This involves the stages a consumer goes through before making a purchase: problem
recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
5. Behavioral Influences: These are external factors like advertising, sales promotions, and product placement, as
well as personal experiences that shape consumers' preferences and choices.
Introduction to Consumer Research:
Consumer research is the systematic collection and analysis of data regarding consumer preferences, behavior, and
experiences. It is a critical tool for businesses and organizations to understand consumer needs, identify trends, and
optimize their marketing strategies. The goal of consumer research is to gain insights that can help improve product
offerings, enhance customer satisfaction, and increase sales.
Methods of Consumer Research:
1. Quantitative Research: Involves collecting numerical data through surveys, experiments, or observation. This
type of research helps measure and predict consumer behavior patterns.
2. Qualitative Research: Focuses on understanding the underlying reasons, opinions, and motivations behind
consumer behavior. This can be done through interviews, focus groups, or ethnographic studies.
3. Observational Research: Involves studying consumer behavior in natural settings without interference, providing
insights into how consumers behave in real-life situations.
4. Experimental Research: Conducted in controlled environments to determine cause-and-effect relationships
between variables, often used to test consumer reactions to specific marketing strategies or products.
In summary, understanding consumer behaviour and conducting thorough consumer research are essential for
businesses aiming to align their offerings with consumer expectations and to build long-term, successful relationships
with their target markets.

Consumer Behaviour – Definition

Consumer behaviour refers to the study of the processes and actions involved when individuals or groups decide to
acquire, use, and dispose of products, services, ideas, or experiences. It encompasses the decision-making process,
motivations, and influences that shape consumer choices, as well as the underlying psychological, emotional, and social
factors that drive purchasing behavior.

Consumer and Customers, Buyers and Users, Organisations as Buyers

While the terms consumer, customer, buyer, user, and organization as buyers are often used interchangeably, they have
distinct meanings in the context of consumer behaviour and marketing. Here’s a breakdown of these concepts:
1. Consumer vs. Customer
• Consumer: A consumer is an individual who uses a product or service. Consumers may or may not be the ones
who purchase the product. For example, a child may be the consumer of a toy, but the parents are the ones who
buy it.
• Customer: A customer is an individual or entity that purchases a product or service. Customers are responsible
for making the transaction, regardless of whether they use the product or not. For example, a company that buys
software licenses is the customer, even though its employees are the end consumers of the product.
Difference:
• Consumers use products or services, whereas customers purchase them. In some cases, the customer and the
consumer can be the same person (e.g., when a person buys a product for their own use).
2. Buyers vs. Users
• Buyer: A buyer is an individual or organization that makes the actual purchase decision and transaction. In many
cases, buyers consider factors such as price, quality, brand, and availability when making decisions.
• User: A user is the individual or group who directly utilizes the product or service after it has been purchased.
The user may not have had any part in the purchasing decision. For instance, a company’s purchasing
department might buy software, but the employees who use the software are the users.
Difference:
• Buyers are responsible for acquiring the product, while users are the ones who benefit from or interact with the
product. These roles can overlap, especially in direct consumer purchases.
3. Organisations as Buyers
• Organisations as Buyers: Organisations, such as businesses, government agencies, and non-profits, also engage
in buying activities. These buyers make purchases for operational needs, production, or reselling to consumers.
The buying decision-making process for organizations is typically more complex than individual consumer
purchases, often involving multiple stakeholders and factors like long-term contracts, pricing models, and bulk
purchasing.
Examples of organisational buyers:
• A manufacturing company purchasing raw materials for production.
• A retail business buying products in bulk from wholesalers or distributors.
• A healthcare organization purchasing medical equipment or pharmaceuticals.
Characteristics of Organisational Buying:
• Complex Decision-Making: Organizational buying often involves multiple departments, such as procurement,
finance, and operations, and may require approval from senior management.
• B2B (Business-to-Business) Focus: Unlike consumer markets, where the focus is on individual needs,
organizational buying is typically driven by functional or operational needs.
• Formalized Purchasing Process: Organizations often have established procedures, criteria, and contracts in place
for buying decisions, especially for high-value items.
• Long-Term Relationships: Companies often build long-term partnerships with suppliers to ensure reliable
product quality and service, leading to repeat purchases.

Development of the Marketing Concept

The marketing concept is a business philosophy that emphasizes understanding and meeting the needs and wants of
consumers while achieving organizational goals. The evolution of this concept reflects changes in the business
environment, consumer preferences, and the role of marketing within companies. The development of the marketing
concept can be divided into several stages, each representing a shift in focus or approach to marketing.
1. Production Concept (Pre-1920s to 1930s)
• Focus: The production concept was the earliest form of marketing, prevalent during the industrial revolution. It
emphasized maximizing production efficiency and availability of goods.
• Principle: "Goods are good enough, and if you make them affordable and widely available, consumers will buy
them."
• Key Features:
 o Companies focused on increasing production and distribution efficiency.
o The goal was to make products widely available to consumers at low prices, assuming demand would
naturally follow.
o Marketing was seen primarily as a way to increase production and distribution, not to meet customer
needs.
Example: Ford's Model T – Initially, Henry Ford’s focus was on mass production and distribution, making cars affordable
and widely available, assuming that the product itself would attract customers.
2. Product Concept (1920s to 1940s)
• Focus: The product concept shifted the emphasis to improving product quality and features. Businesses believed
that consumers would favor products that offered the most quality, performance, or innovative features.
• Principle: "Consumers will favor products that offer the most quality, performance, and innovative features."
• Key Features:
o The focus was on continuous product improvements, differentiation, and innovation.
o Marketers believed that consumers would automatically choose superior products once they were
available.
o Over-emphasis on the product sometimes led to overlooking customer preferences and needs.
Example: Companies in the 1930s-1940s, like those in the automobile industry, started focusing on enhancing the
features and quality of their cars, assuming that innovation would lead to increased sales.
3. Sales Concept (1930s to 1950s)
• Focus: The sales concept emerged during the Great Depression and post-war period when competition
increased. The focus shifted to aggressively promoting products and persuading consumers to buy.
• Principle: "Consumers need to be convinced to buy; aggressive sales tactics are necessary."
• Key Features:
o Emphasis on selling and promotional efforts to push products out to the market.
o Companies focused on making sales rather than understanding and responding to consumer needs.
o Sales-driven strategies were used, often involving heavy advertising and sales promotions.
Example: After World War II, companies like those in the automotive industry ramped up advertising campaigns to
promote their products, recognizing that competition was becoming more intense.
4. Marketing Concept (1950s to Present)
• Focus: The marketing concept emerged as businesses recognized that understanding and meeting consumer
needs were critical to long-term success. This approach marks a shift from a product or sales focus to a
customer-centric focus.
• Principle: "Achieving organizational goals depends on knowing the needs and wants of target markets and
delivering the desired satisfactions better than competitors."
• Key Features:
o Customer Orientation: Businesses prioritize understanding consumer needs and preferences through
research.
o Integrated Marketing: All functions of the organization, such as production, sales, and marketing, align
to meet customer needs.
o Profit through Customer Satisfaction: The ultimate goal is customer satisfaction, which leads to
customer loyalty, repeat business, and profitability.
o Long-Term Focus: Companies focus on building lasting relationships with customers rather than focusing
on short-term sales.
Example: Companies like Apple and Nike emphasize consumer needs in their product development, customer
experiences, and marketing strategies, ensuring that the entire organization aligns to meet consumer demands
effectively.
5. Societal Marketing Concept (1970s to Present)
• Focus: The societal marketing concept builds on the marketing concept but adds a social responsibility
dimension. It emphasizes balancing consumer wants, company profits, and societal well-being.
• Principle: "The organization should determine the needs, wants, and interests of target markets and deliver the
desired satisfaction more effectively and efficiently than competitors, while preserving or enhancing the well-
being of consumers and society."
• Key Features:
 o Emphasis on ethical, sustainable, and socially responsible marketing practices.
o Companies are encouraged to consider the long-term impact of their products on society and the
environment.
o This approach aligns the interests of the organization, consumers, and society.
Example: Companies like Patagonia and TOMS Shoes are known for integrating societal values such as environmental
sustainability and social responsibility into their marketing strategies, focusing not only on consumer satisfaction but also
on contributing positively to society.
6. Relationship Marketing Concept (1990s to Present)
• Focus: The relationship marketing concept focuses on creating long-term relationships with customers, rather
than just transactional exchanges.
• Principle: "The goal is to build strong, lasting relationships with customers through personalized communication,
loyalty programs, and consistent value delivery."
• Key Features:
o Emphasis on customer retention and loyalty, rather than just customer acquisition.
o Companies focus on understanding customers deeply and engaging with them over time.
o Digital tools like CRM (Customer Relationship Management) systems play a significant role in fostering
long-term relationships.
Example: Companies like Amazon and Starbucks have effectively used relationship marketing by personalizing customer
interactions and offering loyalty rewards, which strengthens their connection with consumers.
Summary of the Development of the Marketing Concept
• Production Concept: Focus on mass production and availability.
• Product Concept: Focus on product quality and innovation.
• Sales Concept: Focus on aggressive selling tactics to drive sales.
• Marketing Concept: Focus on understanding consumer needs and providing satisfaction through the entire
organization.
• Societal Marketing Concept: Focus on balancing consumer satisfaction, company profits, and societal well-being.
• Relationship Marketing Concept: Focus on long-term customer relationships and loyalty.
The development of the marketing concept represents a shift from product and sales-centric approaches to a consumer-
centric, value-driven philosophy, emphasizing customer satisfaction, long-term relationships, and broader societal
responsibility. This evolution highlights the increasing importance of understanding consumer behavior in creating
sustainable business success.

Consumer Behavior and Its Applications in Marketing

Understanding consumer behavior is vital for marketers as it helps predict, influence, and satisfy consumer needs. Here
are six key applications of consumer behavior in marketing:
1. Segmentation and Targeting
Consumer behavior helps marketers identify different consumer segments based on preferences, needs, and behaviors.
This allows companies to target specific groups with tailored products, services, and marketing strategies, increasing the
effectiveness of their campaigns.
Example: A cosmetics brand targeting different age groups (e.g., teens vs. elderly) with age-appropriate product
offerings.
2. Product Development and Innovation
By studying consumer behavior, businesses can identify unmet needs and market trends, guiding product innovation.
Understanding what consumers desire enables companies to create products that better meet those needs.
Example: A smartphone company using consumer insights to develop features like longer battery life or improved
cameras based on consumer feedback.
3. Pricing Strategies
Consumer behavior insights help determine the perceived value of products and the optimal price point. Marketers can
adjust pricing based on consumer willingness to pay, the brand's positioning, and competitor prices.
Example: Luxury brands like Rolex or Gucci use premium pricing strategies to reinforce exclusivity and perceived value
among high-income consumers.
4. Advertising and Promotion
Understanding consumer motivations and information processing helps marketers create effective advertisements. The
right messages, media channels, and timing can increase engagement and drive sales.
Example: A health brand using influencer marketing to target health-conscious consumers with personalized product
recommendations.
5. Customer Loyalty and Retention
By analyzing consumer behavior, companies can design loyalty programs and customer retention strategies that keep
customers coming back. Focusing on factors like satisfaction and emotional connection enhances long-term loyalty.
Example: Starbucks using its loyalty program to reward customers with personalized offers based on purchase history.
6. Retail Strategy and Experience
Consumer behavior influences retail decisions like store layout, product placement, and online shopping experiences.
Marketers optimize these elements based on how consumers browse and make purchase decisions.
Example: Supermarkets placing impulse-buy items like snacks at checkout, based on the understanding that consumers
make unplanned purchases during the buying process.
In summary, consumer behavior provides valuable insights that inform various aspects of marketing, from segmentation
to customer loyalty, ensuring companies can meet customer needs and drive long-term success.

Consumer Research Process (Short Version)

The consumer research process involves systematically collecting and analyzing data to understand consumer behavior
and make informed marketing decisions. Here are the key steps:
1. Defining the Research Problem
Identify the problem or opportunity the research aims to address, such as understanding why consumers prefer a
competitor's product.
2. Designing the Research Plan
Develop a plan outlining the research method (exploratory, descriptive, or causal) and data collection techniques (e.g.,
surveys, focus groups).
3. Data Collection
Gather primary data (new data, such as surveys or interviews) or secondary data (existing data, such as industry reports).
4. Data Analysis
Analyze the collected data to identify patterns and insights, using statistical or qualitative methods.
5. Reporting and Presentation of Findings
Present the findings in a clear report to stakeholders, highlighting key insights and recommendations.
6. Making Marketing Decisions
Use the research findings to make informed marketing decisions, such as adjusting product features or pricing strategies.
In summary, the consumer research process helps businesses understand consumer behavior and make data-driven
marketing decisions.

Marketing Segmentation and Positioning

Marketing Segmentation and Positioning are crucial strategies that help businesses target specific groups of consumers
and differentiate their products in the market. Here's an overview:
1. Marketing Segmentation
Marketing segmentation is the process of dividing a broad consumer or business market, typically consisting of existing
and potential customers, into sub-groups of consumers based on some type of shared characteristics. These segments
allow businesses to tailor their marketing efforts more precisely.
Types of Market Segmentation:
• Demographic Segmentation: Based on age, gender, income, education, family size, etc.
o Example: A luxury brand may target high-income individuals.
• Geographic Segmentation: Based on location, such as countries, regions, cities, or neighborhoods.
o Example: A winter coat brand targets colder regions.
• Psychographic Segmentation: Based on lifestyle, values, interests, and social status.
o Example: A fitness brand may target health-conscious individuals who value an active lifestyle.
 • Behavioral Segmentation: Based on consumer behaviors like purchasing patterns, brand loyalty, or product
usage.
o Example: A coffee shop may target regular customers with a loyalty program.
2. Positioning
Positioning refers to how a product or brand is perceived by consumers relative to competing products. It involves
creating a distinct image and identity for a product in the minds of the target segment.
Steps in Positioning:
• Identify Competitive Advantage: Determine what makes the product unique compared to competitors (e.g.,
quality, price, features).
o Example: Apple's competitive advantage is its innovative technology and premium design.
• Determine Target Segment: Based on segmentation, choose the target audience for the positioning strategy.
o Example: Nike positions its products for athletes and those with an active lifestyle.
• Positioning Statement: A concise statement that outlines how a brand wants to be perceived by its target
market.
o Example: "Red Bull gives you wings" targets energetic, adventurous consumers seeking excitement.

Product Positioning Strategy (Short Version)

Product positioning is about defining how a product is perceived in the minds of consumers, distinguishing it from
competitors. Here are the key steps in creating a product positioning strategy:
1. Identify Target Audience
Understand who the product is meant for, based on demographics and preferences.
• Example: A luxury watch brand targeting high-income professionals.
2. Define Competitive Advantage
Highlight what makes the product unique, such as price, quality, or features.
• Example: Volvo is positioned as the safest car brand.
3. Create a Positioning Statement
A clear statement that communicates the product’s unique value.
• Example: "For athletes, Nike is the brand that empowers performance because of innovative design."
4. Focus on Key Benefits
Emphasize the benefits that appeal most to the target audience.
• Example: T-Mobile positions itself with unlimited data.
5. Choose a Positioning Strategy
Select a positioning approach:
• Price-Based: Affordable or premium pricing (e.g., Walmart).
• Quality-Based: Superior quality (e.g., Mercedes-Benz).
• Benefit-Based: Focus on benefits (e.g., Dyson vacuums).
• User-Based: For specific users (e.g., Harley-Davidson).
• Usage-Based: For specific occasions (e.g., Gatorade).
6. Align Marketing Mix
Ensure product, price, place, and promotion align with the positioning.
• Example: Coca-Cola promotes happiness through ads, packaging, and retail.

Consumer Motivation: Introduction, Needs, and Goals

Consumer motivation refers to the driving force that influences consumers to make decisions and take actions in their
purchasing behavior. It is the internal need or desire that pushes individuals to satisfy a specific want or goal.
Understanding consumer motivation is crucial for marketers as it helps them create products, messages, and strategies
that resonate with their target audience.
1. Introduction to Consumer Motivation
Motivation in consumer behavior is the process that initiates, guides, and sustains goal-directed behaviors. It is
influenced by both internal factors (e.g., emotions, personal values, and psychological needs) and external factors (e.g.,
marketing, social influences, and cultural context). Motivation drives consumers to act, whether it's purchasing a
product, using a service, or seeking information.
2. Consumer Needs
Needs are the basic requirements that consumers seek to satisfy. These are typically categorized as:
• Biological Needs: Essential for survival, such as food, water, and shelter.
o Example: A consumer buys a bottle of water when feeling thirsty.
• Psychological Needs: These include emotional and social needs such as love, belonging, and esteem.
o Example: A consumer buys a luxury brand to feel prestigious or gain social status.
• Functional Needs: These relate to practical or utilitarian aspects of a product or service.
o Example: A person buys a smartphone for its features like calling, texting, and internet access.
• Hedonic Needs: These are desires related to pleasure, enjoyment, or emotional satisfaction.
o Example: A consumer purchases a chocolate bar for pleasure rather than hunger.
3. Consumer Goals
Goals represent the desired outcomes that consumers aim to achieve by satisfying their needs. They can be both short-
term (immediate) and long-term (over time), and vary based on individual preferences, circumstances, and aspirations.
Some examples of consumer goals include:
• Short-Term Goals: Immediate needs like satisfying hunger, quenching thirst, or attending to a specific task.
o Example: A consumer buys a snack to eat during a break at work.
• Long-Term Goals: These are more complex and may include lifestyle changes, achieving personal success, or
improving health.
o Example: A consumer adopts a fitness regime with the goal of achieving long-term health and fitness.

Maslow's Hierarchy of Needs

Maslow's Hierarchy of Needs is a psychological theory proposed by Abraham Maslow in 1943. It suggests that human
beings have a series of needs that are arranged in a hierarchy, with basic needs at the bottom and more complex, self-
actualizing needs at the top. According to Maslow, individuals are motivated to satisfy lower-level needs before moving
on to higher-level ones. The hierarchy is typically represented as a pyramid, with five levels:
1. Physiological Needs (Basic Needs)
• Description: These are the fundamental requirements for human survival, such as food, water, shelter, warmth,
and sleep.
• Example: A consumer buys food or water to satisfy hunger and thirst.
2. Safety Needs
• Description: Once physiological needs are met, individuals seek safety and security, including physical safety,
health, financial stability, and protection from danger or harm.
• Example: A person buys home insurance or security systems to feel safe.
3. Social Needs (Love and Belongingness)
• Description: Humans have a desire for relationships, affection, friendship, and a sense of belonging. These needs
include social connections with family, friends, and community.
• Example: A consumer may join a social club or use social media to stay connected with friends and family.
4. Esteem Needs
• Description: This level involves the need for respect, recognition, and self-esteem. People seek to feel valued and
appreciated by others, as well as to achieve personal goals and accomplishments.
• Example: A consumer buys a luxury car or high-end product to gain status and recognition from peers.
5. Self-Actualization (Self-Fulfillment)
• Description: The highest level of Maslow's hierarchy involves realizing one's full potential and pursuing personal
growth, creativity, and self-improvement. It's about becoming the best version of oneself.
• Example: A consumer may enroll in a course or attend workshops to learn new skills or achieve personal goals.
 Consumer Learning (Short Version)
Consumer learning refers to how consumers acquire knowledge and experiences that influence their attitudes, beliefs,
and purchasing decisions. It shapes how they perceive products, services, and brands.
Types of Consumer Learning:
1. Cognitive Learning: Learning through active information processing, like reading product reviews or descriptions.
o Example: Researching the benefits of a toothpaste brand online.
2. Behavioral Learning: Learning through associations and rewards (conditioning).
o Example: Repeated purchases due to loyalty rewards.
3. Observational Learning: Learning by observing others, especially influencers or peers.
o Example: Buying a brand of sneakers because of a popular influencer's endorsement.
4. Experiential Learning: Learning through direct interaction with products or services.
o Example: Trying a new coffee brand and forming an opinion based on taste.

Behavioral Theory in Consumer Behavior

Behavioral theory focuses on understanding how consumers respond to external stimuli, particularly through
conditioning and reinforcement. It suggests that behavior is learned and influenced by interactions with the
environment, rather than by internal thoughts or feelings.
Key Concepts of Behavioral Theory:
1. Classical Conditioning:
o Description: Learning through association. A consumer learns to associate a particular stimulus (e.g., a
brand logo) with a positive experience or feeling.
o Example: Consumers associate the Coca-Cola logo with happiness and refreshment due to repeated
exposure to its advertising and experiences.
2. Operant Conditioning:
o Description: Learning through rewards or punishments. Positive reinforcement encourages repetition of
behavior, while negative reinforcement discourages it.
o Example: A consumer may repeatedly buy from a store offering discounts or a loyalty program because
they are rewarded for their purchases.
3. Stimulus-Response:
o Description: The idea that a consumer's behavior is a direct response to a stimulus in their environment.
The stimulus triggers a certain response or behavior.
o Example: A catchy jingle or an attractive ad can prompt consumers to purchase a product.
Application of Behavioral Theory in Marketing:
• Advertising: Marketers use conditioning to create associations between their products and positive emotions or
experiences.
• Promotions: Loyalty programs and rewards are used to reinforce repeat purchases through operant
conditioning.
• Branding: Consistent use of logos, slogans, or jingles helps create strong associations with brands.

Cognitive Learning Theory in Consumer Behavior

Cognitive Learning Theory focuses on how consumers actively process and interpret information to make decisions.
Unlike behavioral theories, which emphasize learning through external stimuli and responses, cognitive learning views
consumers as active participants who use mental processes like thinking, understanding, and problem-solving.
Key Concepts of Cognitive Learning Theory:
1. Information Processing:
o Description: Consumers actively gather, store, and process information. They compare options, analyze
product features, and make decisions based on their understanding.
o Example: A consumer reads reviews and compares different smartphone models before making a
purchase.
2. Active Learning:
 o Description: Consumers learn by engaging with information, reflecting on their experiences, and
connecting new knowledge to existing knowledge.
o Example: A consumer might research a product online, watch tutorial videos, and seek feedback from
friends before deciding to buy.
3. Constructive Learning:
o Description: Consumers build their understanding and expectations about products based on prior
experiences and external information.
o Example: After trying a brand for the first time, a consumer builds an opinion that affects future
purchasing decisions.
4. Problem-Solving:
o Description: Cognitive learning involves solving problems or finding solutions. Consumers gather
information, evaluate alternatives, and select the option that best meets their needs.
o Example: A consumer may search for a budget-friendly, high-performance laptop based on specific
features and reviews.
Application of Cognitive Learning Theory in Marketing:
• Advertising: Brands use informational ads to educate consumers about product benefits and features, helping
them make informed decisions.
• Content Marketing: Marketers create helpful content (e.g., tutorials, blog posts) that allows consumers to learn
about a product or service before purchasing.
• Brand Loyalty: Consumers who have positive learning experiences with a brand are more likely to develop
loyalty based on knowledge and trust.

Consumer Attitudes: Overview

Consumer attitudes are the mental positions or evaluations that consumers hold toward products, services, brands, or
ideas. These attitudes influence their buying behavior, preferences, and decisions. Attitudes are shaped by beliefs,
feelings, and experiences, and can be either positive, neutral, or negative.
Functions of Attitudes:
Attitudes serve various purposes for consumers, including:
1. Utilitarian Function: Consumers develop attitudes to maximize rewards or minimize punishments. Products that
provide tangible benefits are favored.
o Example: A consumer prefers a washing machine for its time-saving features.
2. Ego-Defensive Function: Attitudes help protect the consumer's self-esteem or justify past behaviors.
o Example: A consumer may justify buying an expensive brand to feel more prestigious.
3. Value-Expressive Function: Attitudes allow consumers to express their values, ideals, or beliefs.
o Example: A consumer buys eco-friendly products to align with environmental values.
4. Knowledge Function: Attitudes help consumers organize and make sense of their environment by simplifying
decision-making.
o Example: A consumer prefers a specific phone brand because they have had positive experiences with it.
Attitude Models:
Several models explain how consumer attitudes are formed and influenced:
1. The ABC Model of Attitudes:
o Affective: The emotional response or feelings about a product (e.g., liking a brand).
o Behavioral: The consumer's tendency to act in a certain way toward the product (e.g., purchasing the
brand).
o Cognitive: The beliefs or thoughts about the product (e.g., the quality or features of a brand).
2. The Fishbein Model:
o This model links attitudes to the beliefs about product attributes. It measures attitude strength by
evaluating the likelihood that certain product attributes will lead to a desired outcome.
o Formula: Attitude = Σ (Belief about Attribute × Evaluation of Attribute).
3. The Elaboration Likelihood Model (ELM):
o Central Route: Consumers carefully consider product information when they are motivated and able.
 o Peripheral Route: Consumers are influenced by superficial cues (e.g., attractive packaging or celebrity
endorsements) when they are less motivated or able.
Factors that Inhibit the Relationship Between Beliefs, Feelings, and Behavior:
Several factors can weaken or prevent the relationship between a consumer’s beliefs, feelings, and behaviors:
1. Cognitive Dissonance: When a consumer holds conflicting beliefs, it can lead to discomfort, causing
inconsistency between attitudes and actions.
2. Lack of Motivation or Ability: Consumers may not be motivated to act on their beliefs or may lack the resources
to do so.
3. External Influences: Social, cultural, or environmental pressures may lead consumers to act contrary to their
attitudes (e.g., peer pressure).
4. Incomplete Information: Consumers may act based on insufficient or misleading information, causing
discrepancies between attitudes and behavior.
Learning Attitudes:
Attitudes are learned through various processes:
1. Classical Conditioning: Repeated exposure to stimuli can create associations with positive or negative feelings.
o Example: Associating a brand with positive emotions due to consistent, favorable advertising.
2. Operant Conditioning: Positive or negative reinforcement influences the development of attitudes toward a
product.
o Example: A consumer may develop a positive attitude toward a brand after receiving a reward or
discount for a purchase.
3. Observational Learning: Consumers learn attitudes by observing the behaviors and attitudes of others,
especially influencers or family.
o Example: A consumer may develop a preference for a brand after seeing peers or celebrities endorse it.
Changing Attitudes:
Changing consumer attitudes is a challenging but vital aspect of marketing. Attitudes can be modified through:
1. Persuasive Communication: Delivering strong, credible messages that provide new information or challenge
existing beliefs.
2. Social Influence: Leveraging social proof (e.g., influencer endorsements, customer reviews) can shift consumer
attitudes.
3. Direct Experience: Allowing consumers to directly interact with a product or brand, which can influence their
attitudes.
4. Emotional Appeals: Advertising that appeals to emotions, such as happiness or nostalgia, can alter attitudes
toward a product.
Attitude Change Strategies:
Marketers use different strategies to change consumer attitudes:
1. Changing Beliefs: Altering consumers' perceptions of a product’s attributes.
o Example: Emphasizing new features in a product that consumers may not be aware of.
2. Adding New Beliefs: Introducing new attributes or benefits that the consumer may not have considered before.
o Example: A car brand may highlight its fuel efficiency to attract environmentally conscious consumers.
3. Changing the Importance of Attributes: Repositioning the product by altering the relative importance of certain
attributes to consumers.
o Example: A smartphone brand may emphasize camera quality over battery life to appeal to social media
users.
4. Changing Affective Responses: Shifting emotional reactions to a product through advertisements or experiences.
o Example: Using heartwarming stories in ads to evoke positive feelings toward a brand.

Social Class and Group Influences on Consumer Behavior

Consumer behavior is significantly influenced by social class and group influences. These factors shape how individuals
make purchasing decisions, what products they value, and how they engage with brands.
1. Introduction to Social Class and Group Influences
• Social Class refers to the hierarchical categorization of individuals based on factors like income, education,
occupation, and social status. It influences consumer preferences, purchasing patterns, and brand choices.
• Group Influences occur when individuals are influenced by others in their social networks, including family,
friends, or colleagues. These influences can impact consumer behavior through shared values, expectations, and
information exchange.

2. Nature of Social Class

• Social class is determined by an individual’s economic position within society, which affects their access to
resources, opportunities, and consumption patterns.
• Social class influences consumer behavior, including the types of products purchased, brand loyalty, shopping
habits, and lifestyle choices.

3. Social Class Categories

Social class can typically be divided into the following categories:
1. Upper Class: Affluent individuals with significant wealth and status, often associated with high-quality, luxury
goods.
2. Middle Class: Professionals, managers, and skilled workers who have moderate income and prefer quality, yet
affordable products.
3. Working Class: Individuals with manual labor or routine jobs, generally looking for practical and affordable
goods.
4. Lower Class: Consumers with limited financial resources, who often prioritize necessity-based products and seek
cost-effective options.

4. Money and Other Status Symbols

• Money is a key indicator of social class, but status symbols (e.g., luxury goods, exclusive experiences) are also
important. People may buy high-status items to signal wealth or position.
• Examples of Status Symbols: Luxury cars, designer clothing, high-end electronics, private memberships.

5. Sources of Group Influences

Group influences come from various sources:
1. Family: The primary group influencing consumer behavior from early childhood.
2. Peers: Friends and colleagues who influence decisions and preferences.
3. Cultural Groups: Ethnic, religious, and community-based groups that affect values and preferences.
4. Reference Groups: Groups with which individuals identify or aspire to, which influence their attitudes and
behaviors.

6. Types of Reference Groups

Reference groups can be categorized into:
1. Membership Groups: Groups to which an individual currently belongs, such as family, friends, or coworkers.
o Example: A consumer may choose brands based on recommendations from friends.
2. Aspirational Groups: Groups that an individual aspires to join, such as celebrities, athletes, or professionals.
o Example: A young person may choose a particular brand of clothing because it is associated with an
admired celebrity.
3. Dissociative Groups: Groups that an individual wants to distance themselves from.
o Example: A person might avoid a certain brand because it is associated with a group they do not want to
identify with.

7. Nature of Reference Groups

• Reference groups influence consumer behavior by providing standards of comparison for attitudes, values, and
behaviors.
• Direct Influence: When individuals interact within the group and share opinions, they directly affect each other’s
behavior.
 • Indirect Influence: Consumers observe the behaviors or lifestyles of people in reference groups without direct
interaction, but it still impacts their choices.

8. Reference Group Influences

• Normative Influence: When individuals conform to group norms or behaviors.
o Example: A person purchases certain fashion brands to align with a peer group’s standards.
• Informational Influence: When individuals seek information or advice from group members before making
decisions.
o Example: A consumer may ask for recommendations from friends before buying a product.

9. Applications of Reference Group Influences

• Brand Loyalty: Consumers may align with specific brands because their reference group supports those brands.
• Marketing Strategies: Brands target reference groups in their advertising campaigns, using celebrity
endorsements or influencer marketing.
• Word of Mouth: Consumers may rely on the experiences and opinions of their reference groups to guide their
purchases.

10. Family Life Cycle Stages

The family life cycle stages reflect different phases in a family’s life, each of which influences consumer behavior:
1. Young Singles: Single individuals who prioritize personal items like clothes, electronics, and entertainment.
2. Young Married Couples: Married couples with no children, focusing on products for their home and leisure.
3. Full Nest: Families with children who tend to prioritize home, family products, and education.
4. Empty Nest: Older couples whose children have left home, with increased disposable income for travel and
luxury items.
5. Solitary Survivors: Older individuals living alone, often purchasing health-related products and services.

11. Husband-Wife Influences

• Decision Making: Husband and wife often influence each other’s decisions, especially for household or family-
related purchases.
• Joint Decisions: In some cultures, purchases (e.g., cars, home appliances) are made jointly.
• Individual Decisions: In other cases, one partner may have more influence, such as the wife making decisions for
groceries or clothing.

12. Parent-Child Influences

• Children’s Influence: Children influence family purchasing decisions, especially in categories like toys,
entertainment, and food.
• Parental Influence: Parents have the greatest influence on major financial decisions, such as buying a home or
car.

13. Consumer Socialization of Children

• Socialization Process: Children learn consumer behavior by observing and interacting with their parents, peers,
and media.
• Influences: Advertising, peer pressure, and parental behavior all shape children's attitudes and behaviors toward
brands and products.

14. Word-of-Mouth Communications within Groups

• Importance of Word-of-Mouth (WOM): Consumers trust recommendations from friends, family, and colleagues
more than traditional advertising.
• Influence on Decisions: Positive or negative feedback from others can significantly influence a consumer’s
decision to purchase a product.
15. Opinion Leadership
• Opinion Leaders: These are individuals who have significant influence over others' purchasing decisions. They
often have expertise in a particular area or hold a high status within a social group.
o Example: An expert tech reviewer or a popular fashion influencer may influence the decisions of their
followers.
• Role in Consumer Behavior: Opinion leaders guide others in making informed choices and shaping attitudes
toward products, especially in niche areas like technology, fashion, and lifestyle.

Consumer Decision-Making Process

The consumer decision-making process involves several stages that consumers go through before making a purchase. It
includes recognizing a problem, gathering information, evaluating alternatives, and ultimately making a purchase.
Afterward, post-purchase behavior is observed, influencing future decisions.

1. Introduction to the Consumer Decision-Making Process

The consumer decision-making process can be broken down into the following stages:
1. Problem Recognition: Identifying a need or problem.
2. Information Search: Seeking information to solve the problem.
3. Evaluation of Alternatives: Comparing available options.
4. Outlet Selection: Choosing where to buy.
5. Purchase: Making the decision to buy.
6. Post-Purchase Behavior: The consumer's reaction after the purchase.

2. Problem Recognition
• Description: The process begins when a consumer recognizes a need or problem that requires a solution.
• Example: A person realizes their phone is outdated and needs to be replaced.
• Triggers: Problems can arise from internal stimuli (e.g., hunger, dissatisfaction) or external stimuli (e.g.,
advertising, word-of-mouth).

3. Information Search
• Description: Once the need is recognized, consumers search for information to find possible solutions.
o Internal Search: Recalling previous experiences and knowledge.
o External Search: Gathering information from external sources such as friends, family, advertisements,
reviews, or the internet.
• Factors Influencing Search:
o Perceived Risk: Higher risk leads to more extensive search.
o Involvement: Greater involvement increases information search efforts.
o Availability of Information: The ease of obtaining information can influence search behavior.

4. Evaluation of Alternatives
• Description: After gathering information, consumers compare different options based on specific criteria such as
price, quality, and features.
• Criteria for Evaluation:
o Functional Attributes: Practical features, such as battery life or durability.
o Aesthetic Attributes: Look and feel of the product.
o Brand Reputation: Trust in the brand influences the decision.
• Types of Decision Rules:
o Compensatory Decision Rule: Weighing pros and cons, where positive features can compensate for
negative ones.
o Non-Compensatory Decision Rule: Choosing an option based on one critical feature (e.g., lowest price).

5. Outlet Selection
 • Description: This stage involves deciding where to make the purchase, based on factors like location, store
atmosphere, pricing, and convenience.
• Factors Influencing Outlet Selection:
o Convenience: Proximity to the consumer’s location.
o Store Environment: Atmosphere, customer service, and ambiance.
o Price: Competitive pricing and discounts.
o Online vs. Offline: Deciding between an online store and a brick-and-mortar store.

6. Purchase Decision
• Description: After evaluating alternatives and selecting the outlet, the consumer makes the actual purchase.
• Factors Impacting Purchase:
o Salesperson Influence: Persuasive in-store communication can affect the decision.
o Promotions: Discounts, offers, or special deals can encourage purchase.
o Impulse Buying: Unplanned purchases driven by emotions or situational factors.
o External Factors: Social influence or peer pressure may also play a role.

7. Post-Purchase Behavior
• Description: After the purchase, the consumer reflects on their decision, which may lead to satisfaction or
dissatisfaction.
• Key Aspects of Post-Purchase Behavior:
o Cognitive Dissonance: Consumers may experience doubt or anxiety about their decision (e.g., “Did I
make the right choice?”).
o Satisfaction/Dissatisfaction: If the product meets or exceeds expectations, the consumer is satisfied; if
not, dissatisfaction occurs.

8. Post-Purchase Behavior (Continued):

• Loyalty: Satisfied consumers are more likely to repurchase and become loyal customers.
• Word-of-Mouth: Satisfied consumers often share positive experiences, which can influence others’ decisions.
• Complaints and Returns: Dissatisfied consumers may return the product or share negative feedback.