Marketing Management

Consumer Behavior I

Paul Dishman, Ph.D.Department of Business Management

Marriott School of Management

Brigham Young University

Lecture 7

Paul Dishman, Ph.D.

Marketing Management

The Nature of Consumer Behavior

There is only one boss--the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. --Sam Walton

Listen to the whispers and you won’t have to hear the screams.

--Cherokee saying

Paul Dishman, Ph.D.

Marketing Management

“Blackbox” model of CB

Environmental Stimuli

Marketing Stimuli

ResponseIndividual

Characteristics &Decision Processes

Paul Dishman, Ph.D.

Marketing Management

How do consumers make decisions?

• Economic Man Theory

• Hedonistic Man Theory

• Pavlovian Theory

Paul Dishman, Ph.D.

Marketing Management

Purchase Behavior

Paul Dishman, Ph.D.

Marketing Management

Stages in Buying Behavior

Awareness need recognition

Interest information search

Evaluation evaluation of alternatives

Trial purchase decision

Adoption postpurchase behavior

Paul Dishman, Ph.D.

Marketing Management

Psychological Factors

• Perceptions: biases and blind spots

• Beliefs, attitudes, and learning

• Motivation

Paul Dishman, Ph.D.

Marketing Management

Motivation: MaslowMotivation: Maslow

Physiological

Safety

Social

Esteem

Self-Actualization

Paul Dishman, Ph.D.

Marketing Management

ActualizersActualizersPsychographics:VALS 2

Psychographics:VALS 2

Principle Oriented Status Oriented Action Oriented

AchieversAchievers

StrugglersStrugglers

StriversStrivers

FulfilledsFulfilleds

BelieversBelievers

ExperiencersExperiencers

MakersMakers

Abundant ResourcesAbundant Resources

Minimal ResourcesMinimal Resources

Paul Dishman, Ph.D.

Marketing Management

Time of Adoption of Innovations

Innovators

2.5 %

Early Adopters

13.5 %

Early Majority

34%

Late Majority

34%

Laggards

16%

Paul Dishman, Ph.D.

Marketing Management

Important Attributes in BuyingImportant Attributes in Buying

• Convenience– (most important attribute to a

consumer?)

• Price

• Dependability– quality of product

• Investment

Paul Dishman, Ph.D.

Marketing Management

Simple ModelSimple Model

MarketingStimuli

OtherStimuli

BuyerCharacteristics

BuyingDecision

BuyerResponse

Paul Dishman, Ph.D.

Marketing Management

ExerciseExercise

• Take out a piece of paper

• Please answer the following questions

Paul Dishman, Ph.D.

Marketing Management

#1#1

• Are you the person responsible for purchasing laundry detergent in your household?

Yes No

Paul Dishman, Ph.D.

Marketing Management

#2#2

• If YES to above, list the name of a laundry detergent that you purchase on a regular basis

• If NO to above, what is the name of the first laundry detergent brand that comes to mind?

Paul Dishman, Ph.D.

Marketing Management

#3#3

• If YES to #1, list the reason(s) that you purchase this brand

• If NO to #1, list the reason(s) that you think the brand you thought of is so popular

Paul Dishman, Ph.D.

Marketing Management

#4#4

• What other brands of laundry detergent might you consider purchasing, and why?

Paul Dishman, Ph.D.

Marketing Management

• In your opinion, what is the most important feature for a laundry detergent?

#5#5

Paul Dishman, Ph.D.

Marketing Management

Exercise: Create ModelExercise: Create Model

Paul Dishman, Ph.D.

Marketing Management

Possible CB Model

How could they usethis information?

Evoked Setof Brands

Price

PurchasePriority

DecisionType

Family orSurrogateInfluence

SalientFeatures/Benefits

Availability

PurchaseDecision

Why would this be important to

?

Paul Dishman, Ph.D.

Marketing Management

Importance of UnderstandingBuyer Behavior

• Construct model to help understand your buyers’ decision process

• Find influences and influencers• Determine influential methods

– leverage costs by maximum effectiveness

• Determine reinforcement points• Evaluate