Chapter 4: Perceptive on Consumer Behaviour

Consumer behavior is defined as process & activity people engage while searching, evaluation , selecting and disposal of products and services to satisfy their wants. Some of the customer purchase decision involve extensive research while others are merely impulsive. The stages in consumer decision making process are as follows:

 Psychological factors influencing the purchase decision

Stage 1: Problem Recognition

In the stage consumer perceives a need and becomes motivated to solve the problem. Need is felt by the consumer due to difference between his perception of ideal stage and actual stage.Sources of problem recognition

• Out of Stock
• Dis-satisfaction
• New needs & wants
• Related product/ purchases ( Complimentary Product)
• Marketer induced problem recognition
• New Products

Consumer Motivations

1.  Mas-low's Hierarchy of need

2. Psychoanalytic Theory
According to the theory the consumer buying decision is based on many deep complex motives and can be  determined by probing the subconscious. Some of marketing reserach method used for psychoanalytic reasoning are :

Stage 2 : Information Search

• Personal Sources 
• Marketing controlled sources
• Public sources
• Personal Experiences

Perception
Perception matters to marketers for following reason:

1. Sensation : How consumer sense external information ??
2. Selecting Information : How consumers select and attend to various source of information ??
3. Interpreting Information : How information is interpreted and given meaning by consumers ??

Stage 3 : Alternate Evaluation

Evaluation Criterion

• Objective criterion : Attributes like price, warranty, color, size etc.
• Subjective Criterion: Attributes like style, appearance, image etc

Evaluation Consequences

• Functional Consequences : Tangible attributes which are directly experiences by consumers
• Psychological Consequences: Abstract outcomes that are subjective and personal in nature 

Consumer Attitudes

Consumer may hold attitude towards

• Individuals
• Brand companies organisation
• Product categories
• Retailers
• Advertisement
• Media

As resultant attitudes is a  function of multiple attitude, following function is used to arrive at consumer attitude 

Ways to influence or change consumer attitude are

• Increase or change the strength or belief rating of a brand of an important attitude
• Change consumer perception of the importance or value of an attribute
• Add a new attribute to the attribute formation process
• Change perception of belief rating for a competing brand

Stage 5: Purchase Decision

Type of decision rules

• Heuristic : Simple thumb rules
• Affect Referral Rule :Making decision on the basis of effective impression or feeling about the brand
• Compensatory Rules: By evaluating strength and weakness of each brand

Stage 6: Post Purchase Evaluation

Learning Process

• Classical Conditioning

• Operant Conditioning

• Cognitive Learning Process

Consumer learn through information processing and problem solving

Environmental influence on Consumer behavior

Variation in Consumer Decision making Process

• Extended problem solving
• Limited problem solving
• Routine response behaviour