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CONSUMER BEHAVIOUR
decision making behaviour of individuals and households who buy goods and services for personal consumption
CONSUMER INVOLVEMENT
degree of involvement (time, research, travel) a person is prepared to devote to a particular purchase
3 STAGES OF DECISION MAKING
1. habitual decision making
- low involvement decisions, low risk and frequently bought products
2. limited decision making
- limited involvement decisions, less frequently bought but familiar products
3. extended decision making
- high involvement decisions, high price, high risk, and unfamiliar products
- financial risk, social risk, functional risk
5 STAGES OF CONSUMER DECISION MAKING
1. need/want recognition
- occurs when person recognises discrepancy between a desired state and their actual state (what i have and what i would like to have)
2. information search
- extent of research varies with degree of involvement (online, word of mouth, company messages)
3. evaluation of option
- identify the ‘criteria’ that consumers use in making their choices in the category
4. purchase
- potential for influence at point of sale
5. post-purchase evaluation
- buyer continues to evaluate even after purchasing - affects subsequent decisions
- cognitive dissonance - buyer's remorse
3 CATEGORIES OF INFLUENCES ON DECISION MAKING
1. SITUATIONAL
- circumstances consumers find them in when they are making purchasing decisions or consuming the products
- physical
- social
- time
- motivational
- mood
2. GROUP
Cultural Factors
- immediate experiential level (taste in music, food, clothes) and deeper more influential level (cultural values)
- power distance - degree of inequality among people that is acceptable in a culture
- uncertainty avoidance - extent to which people in culture feel threatened by uncertainty and rely on mechanisms to reduce it
- individualism - extent to which people focus on their own goals
- masulinity - extent to which traditionally masculine values are valued over traditionally feminine values
Sub Culture
- differ on some influential dimensions from broader culture
- share common attitudes, values and behaviours
Social Class
- individuals of similar social rank
- socio economic status
- income, education, occupation
Reference Groups
- group to which individual looks for guidance as to what are appropriate values, attitudes or behaviours
- influence is strong when individual lacks guide for behaviour and has a high social risk
- membership reference groups = groups to which individuals belong
- aspirational reference groups = groups which the individual would wish to be a member of
- dissociative reference groups = groups with which individual does not wish to be associated with
- opinion leaders = reference group member who provides relevant and influential advice about specific topic of interest to group members
Family
- usually most influence over behaviour
- family life cycle = stages through which most families pass
- young singles
- young marrieds
- parenthood
- post-parenthood
- dissolution
- autonomic decisions - household products purchased by husband or wife
- wife-dominant decisions
- husband-dominant decisions
- syncratic decisions - purchased by husband and wife acting jointlypester power by children
3. INDIVIDUAL
Personal Characteristics
- demographics
- general make up of population in terms of objective, measurable characteristics
- used as part of the description and explanation of consumer behaviour
- lifestyle
- how they spend their time and how they interact with others
- actual lifestyle (more predictable) and preferred lifestyle (products aspirational or symbolic)
- lifestyle is partly a choice and partly determined by personality and demographic characteristics
- personality
- difficult to measure reliably
- balance seekers (balanced lifestyle)
- health conscious
- harmony seekers
- individualistic
- fun seekers
- success driven
- products expression of personality
Psychological Characteristics
- motivation
- internal drive to satisfy unfulfilled needs or achieve unmet goals
- Maslow’s hierarchy of needs
1. physiological
2. safety
3. love or belongingness
4 .esteem
5. self-actualisation
- choosing to buy a particular product
- buy a particular brand
- willing to pay a particular price
- preferring to shop through particular outlets
- perception
- psychological process that filters, organises and attributes meaning to external stimuli
- particular to individual
- selective exposure - actively seek out messages with which audience already agrees and ignore those which they disagree with
- selective attention - individual chooses to take in only those messages relevant to their needs
- selective distortion - individual’s tendency to perceive messages that are inconsistent with existing beliefs or attitudes in such as way as to reduce the inconsistency
- selective retention - tendency to remember only that info which is consistent with other beliefs and which is relevant to an individuals’ needs
- beliefs and attitudes
- mental map that consumer relies on when making judgements about problems that require solutions
- belief - descriptive or evaluative thoughts regarding knowledge or assessment of a thing
- attitude - desribes an individual’s relatively stable and consistent thoughts, feelings and behavioural intentions to an object or idea
- cognitive component - person’s awareness of and knowledge about object or issue
- affective component - feelings towards, or a approval of, the object or issue
- behavioural component - individual’s actions or intentions towards object or issue
-learning
- behavioural learning theories
- experience and repetition of behaviour
- cognition learning theories
- rational problem solving, emphasises acquisition and processing of new information
- more complex problems
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