Overview of Consumer Behaviour in Marketing

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Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. [1] It blends elements from psychology, sociology, social anthropology and economics.

It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer.

Research has shown that consumer behaviour is difficult to predict, even for experts in the field. 2] Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer.

A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved.

Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et al. 2009).

Contents [hide] 1 Black box model 2 Information search 3 Evaluation of alternatives 4 Purchase decision 5 Postpurchase evaluation 6 Other influences 7 See also 8 References 9 Further reading 10 External links [edit] Black box model ENVIRONMENTAL FACTORS BUYER'S BLACK BOX BUYER'S RESPONSE Marketing Stimuli Environmental Stimuli Buyer Characteristics Decision Process Product Price Place Promotion Economic Technological Political Cultural Demographic Natural Attitudes Motivation Perceptions Personality Lifestyle Knowledge Problem recognition Information search

Alternative evaluation Purchase decision Post-purchase behaviour Product choice Brand choice Dealer choice Purchase timing Purchase amount The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. [3] It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). [4] The black box model is related to the black box theory of behaviourism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer.

The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response. The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer. edit] Information searchOnce the consumer has recognised a problem, they search for information on products and services that can solve that problem.

Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search. Sources of information include: Personal sources Commercial sources Public sources Personal experience The relevant internal psychological process that is associated with information search is perception. Perception is defined as "the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world".

Consumers' tendency to search for information on goods and services makes it possible for researchers to forecast the purchasing plans of consumers using brief descriptions of the products of interest. [5] The selective perception process Stage Description Selective exposure consumers select which promotional messages they will expose themselves to. Selective attention consumers select which promotional messages they will pay attention to. Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences.

Selective retention consumers remember messages that are more meaningful or important to them. The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand. [edit] Evaluation of alternativesAt this time the consumer compares the brands and products that are in their evoked set. The evoked set refers to the number of alternatives that are considered by consumers during the problem-solving process. Sometimes also known as consideration , this set tends to be small relative to the total number of options available.

How can the marketing organisation increase the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organisation needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. It also needs to check other brands of the customer’s consideration set to prepare the right plan for its own brand. [edit] Purchase decisionOnce the alternatives have been evaluated, the consumer is ready to make a purchase decision.

Sometimes purchase intention does not result in an actual purchase. The marketing organisation must facilitate the consumer to act on their purchase intention. The organisation can use a variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.

Once the integration is achieved, the organisation can influence the purchase decisions much more easily. There are 5 stages of a consumer buying process [6] they are: The problem recognition stage, meaning the identification of something a consumer needs. The search for information, which means you search your knowledge bases or external knowledge sources for information on the product. The possibility of alternative options, meaning whether there is another better or cheaper product available. The choice to purchase the product and then finally the actual purchase of the product. 6] This shows the complete process that a consumer will most likely, whether recognisably or not, go through when they go to buy a product. [edit]

Postpurchase evaluationThe EKB (Engel, Kollat, Blackwell) model was further developed by Rice (1993) which suggested there should be a feedback loop, Foxall (2005) further suggests the importance of the post purchase evaluation and that it is key because of its influences on future purchase patterns. [edit] Other influencesConsumer behaviour is influenced by internal conditions such as demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings.

Psychological factors include an individuals motivation, perception, attitude and belief, while personal factors include income level, personality, age, occupation and lifestyle. Behaviour can also be affected by external influences, such as culture, sub-culture, locality, royalty, ethnicity, family, social class, past experience reference groups, lifestyle, market mix factors. [edit] See alsoFood and Brand Lab Consumer socialization Art ; Copy Window shopping Consumer confusion [edit]

References

1. Kuester, Sabine (2012): MKT 301: Strategic Marketing ; Marketing in Specific Industry Contexts, University of Mannheim, p. 10.
2. J. Scott Armstrong (1991). "Prediction of Consumer Behavior by Experts and Novices". Journal of Consumer Research (Journal of Consumer Research Inc. ) 18: 251–256. http://marketing. wharton. upenn. edu/documents/research/Prediction%20of%20consumer%20behavior. pdf.
3. Sandhusen, Richard L. : Marketing (2000). Cf. S. 218
4. Sandhusen, Richard L. : Marketing (2000). Cf. S. 219
5. J. Scott Armstrong and Terry Overton (1971). "Brief vs. Comprehensive Descriptions in Measuring Intentions to Purchase". Journal of Marketing Research 5: 114–117. http://marketing. wharton. upenn. edu/ideas/pdf/armstrong2/brief. df.
6. a b Khosla, Swati (2010). "Consumer psychology: The essence of Marketing". International Journal of Educational Administration 2 (2): 220-220. http://web-l4. ebscohost. com. ezproxy-f. deakin. edu. au/ehost/detail? vid=5;hid=106;sid=4657a35a-29b0-4753-b833-46a39c374718%40sessionmgr113;bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=ehh;AN=60641974. Retrieved 2012-05-16. [edit] Further readingBlackwell, Miniard and Engel (2006). Consumer Behaviour (10th Ed. ).
7. Thomson Learning. Deaton, Angus; Muellbauer, John, Economics and consumer behavior, Cambridge ;
8. New York : Cambridge University Press, 1980.ISBN 0-521-22850-6 Foxall, G. (2005. ) Understanding Consumer Choice. Baingstoke. Palgrave Macmillian. Howard, J. , Sheth, J. N. (1968), Theory of Buyer Behavior, J. Wiley ; Sons, New York, NY. Kardes, Frank R. ; Cronley, Maria L. ;
9. Cline, Thomas W. , Consumer Behavior, Mason, OH : South-Western, Cengage Learning, 2011. ISBN 978-0-538-74540-6 Laermer, Richard; Simmons, Mark, Punk Marketing, New York : Harper Collins, 2007. ISBN 978-0-06-115110-1 (Review of the book by Marilyn Scrizzi, in Journal of Consumer Marketing 24(7), 2007) Loudon, D. L. 1988), Consumer Behavior: Concepts and Applications, McGraw Hill, London. McNair, B. (1958), Retail Development, Harper ;
10. Row, New York, NY. Packard, Vance, The Hidden Persuaders, New York, D. McKay Co. , 1957. Schiffman, L. G. (1993), Consumer Behavior, Prentice Hall International, London. Schwartz, Barry (2004), The Paradox of Choice: Why More Is Less, Ecco, New York. Shell, Ellen Ruppel, Cheap: The High Cost of Discount Culture, New York : Penguin Press, 2009. ISBN 978-1-59420-215-5 Solomon, M. R. (1994), Consumer Behavior, Allyn ;
11. Bacon, London. edit] External linksThe Society for Consumer Psychology [hide]v ·t ·eConsumer behaviour Concepts Consumption (economics) ·Consumer spending ·Autonomous consumption ·Induced consumption ·Consumer debt ·Consumer economy ·Consumer culture theory Research types Consumer behaviour
12. Consumer sovereignty ·Marketing research ·Consumer neuroscience ·Consumer choice ·Consumer product ·Consumer economics ·Consumer basket ·Consumption function Consumer attributes Consumer confusion
13. Consumer's risk ·Consumer confidence ·Consumer socialization ·Consumer ethnocentrism ·Cultural consumer ·Homo economicusProcesses Consumer cooperative ·Consumer-to-business ·Factory-to-consumer Consumer service
14. Consumerization Retrieved from "http://en. wikipedia. org/w/index. php? title=Consumer_behaviour&oldid=532422664" Categories: Consumer behaviourMarketing analyticsHidden categories: Articles needing additional references from April 2011All articles needing additional referencesNavigation menuPersonal tools Create accountLog inNamespaces ArticleTalkVariantsViews ReadEditView historyActions Search Navigation Main page Contents Featured content Current events Random article Donate to Wikipedia InteractionHelp

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