MYCOB
By Norwidayati bt. Ahmad
Jabatan Perdagangan
Politenik Merlimau
Melaka
CONSUMER BEHAVIOUR is social psychology
applied to consumption situations. This situation
includes buying, selling, using and disposing of
consumer goods and services. At the end of the
course, students should possess a working
knowledge of attitude, perception, consumer’s
decision-making process and external factors
that influence consumer behavior.
Course Learning Outcomes
Upon completion of this course, students should
be able to:
CLO1 : Analyze the importance of consumer behavior
knowledge to influence the decision-making process in
the marketing field.
CLO2 : Participate as a leader or a member
of the group to discuss the factors that influenced
consumer behavior in marketing activity.
CLO3 : Display the positive value and ethics in
consumerism practices during the marketing
activity in class.
Consumer Behaviour
• Introduction to Consumer Behaviour
• Consumers Decision Making Process
• Individuals factors
• Environmental factors
• Consumerism
INTRODUCTION TO
CONSUMER BEHAVIOUR
In the end of this topic,
students will be able:
Analyze consumer behavior
Analyze the factors that influence
the growth of consumer behavior
Analyze consumer behavior
application
TOPIC 1
Introduction to
Consumer Behaviour
Consumer behavior
The behavior that consumer
display in searching for,
purchasing, using, evaluating,
and disposing of products and
services that they expect will
satisfy their needs.
Interdisciplinary
study of consumer
behaviour
Psychology
Sociology
Anthropology
Economics
Interdisciplinary study
of consumer behaviour
Psychology
The study of the behavior and
mental processes of individuals
(thoughts, beliefs, difficulties,
feelings) of individuals.
Sociology
The study of how individuals
are influenced by groups in
their purchase behavior.
Social influence is an important
factor in understanding
consumer choice.
Anthropology
The study of people in relation
to their cultures which affect
the types of product that
consumers buys.
Economics
This is the study of income and
purchasing power, and its
impact on consumer behaviour.
Factors Influence The
Growth Of Consumer
Behaviour
• Short period of product life
cycle
• Environmental protection
• Consumer protection
• Public policies
• The growth of international
marketing
• The growth of non-profit
marketing development
Understand Consumer
Behavior Application
Market Segmentation
The process of dividing a market
into distinct subset of consumers
with common needs or
characteristics and selecting one
or more segments to target with
a distinct marketing mix.
Bases for segmentation
Geographic segmentation
It divides the market by location such as
nation, regions, states, countries, cities or
neighbourhoods
Demographic segmentation
Demographic segmentation is refers to the
vital and measureable statistics of
population.
Psychographic segmentation
Psychographic segmentation divides buyers
into different groups based on social class,
lifestyle or individual personality.
Behavioral Segmentation
Dividing a market into groups based on
consumer knowledge, attitude, use or
response to product.
Marketing plan
A written document containing
description and guidelines for an
organization’s or a product’s
marketing strategies, tactics and
programs - for offering their
products and services over the
defined planning period, often
one year.
De-Marketing
De-marketing basically refers to
when a company discourage its
customers to buy the product
produced by them.
Consumer behaviour
application in societal
and non-profit
marketing
Societal marketing
Societal Marketing is based on
the principle of societal welfare.
It emphasizes that an
organization must make strategic
marketing decisions keeping in
mind the consumer wants, the
organizational needs and most
important the long term
interests of the society.
Non-profit marketing
A non-profit organization does
not exist in order to generate
profits for stockholders or
owners, its income is retained to
fund operational activities and
expenses.
Education to the
consumers
Consumer education is the
process of supporting citizens to
become more skilled, literate and
responsible as consumers.
It helps people to improve their
understanding of goods and
services and develop the skills
and confidence to become more
aware of their rights in the
consumer market, make better
informed choices and know where
to go for help.
CONSUMERS DECISION
MAKING PROCESS
In the end of this topic,
students will be able:
Analyze the concept of consumer
decision making
Analyze consumers’ acceptance of
new products and services
TOPIC 2
Consumers Decision Making
Process
The Concept Of
Consumer Decision Making
A process of gathering and
processing information,
evaluating it and selecting the
best possible option so as to
solve a problem or make a buying
choice.
Individual role in buying
decision process
Initiator
Influencer
Decider
Buyer
User
TOPIC 2
Consumers Decision Making
Process
The model Of
Consumer Decision Making
TOPIC 2
Consumers Decision Making
Process
Need/Problem recognition
• The first stage of the buyer decision
process is recognizes a problem or
need.
• There are two different types of
needs or problem recognition – the
actual and desired state.
Information search
• The stage of buyer decision in which
the consumer search for product
information.
• The consumer may have heightened
attention or may go into active
information search.
• Information sources - internal and
external
TOPIC 2
Consumers Decision Making
Process
Evaluation of alternatives
• The stage of buyer decision in which
the consumer uses information to
evaluate brand choice. Consumers try
to determine how well a product or
service satisfies a particular need.
• Criteria used for evaluating brands -
Evoked set, Inept set, Inert set.
Purchase decision
• The stage of the buyer decision
process in which the consumer
actually buys the product. The
consumers should have identified the
best brand or alternative.
• Consumers make three types of
purchases; trial, repeat and long-
term commitment purchase.
TOPIC 2
Consumers Decision Making
Process
Post purchase decision
• In the final stage of consumer
decision making process the
consumer evaluates or analysis the
purchased product, usefulness of the
product, satisfaction delivered from
the product, value of the product
with respect to the need fulfilment
of the consumer.
• There are three possible
expectation: Actual performance
matches expectations, Performance
exceeds expectations and
Performance is below expectation
TOPIC 2
Consumers Decision Making
Process
Consumers’ Acceptance Of
New Products And Services
The diffusion process is the
process by which the
acceptance of an innovation is
spread by communication
(mass media, sales people, or
informal conversations) to
members of a social system
(a target market) over a period
of time.
New product characteristics
that influence consumer
acceptance:
• Relative advantage
• Compatibility
• Complexity
• Trialability
• Observability
TOPIC 2
Consumers Decision Making
Process
Stages in adoption process
• Awareness (introduction stage)
• Interest (information-gathering
stage)
• Evaluation (consideration stage)
• Trial (sampling stage)
• Adoption /Rejection (buy or not
buy stage)
Types of adopters
• Innovators
• Early adopters
• Early majority
• Late majority
• Laggards
TOPIC 2
Consumers Decision Making
Process
Percentage of adopters by
category sequence
INDIVIDUAL FACTORS
In the end of this topic,
students will be able:
Discuss motivation
Interpret personality
Discuss perception
Seek learning
Discuss attitude
TOPIC 3
Individual factors
Motivation
Motivation is the driving force
within the individuals that impels
them to take action.
This driving force is produced by
state of tension, which exists as
the result of an unfulfilled need.
TOPIC 3
Individual factors
Motivation theories
a. Maslow’s Hierarchy of needs
theory
TOPIC 3
Individual factors
Motivation theories
Maslow’s Hierarchy of needs
theory
TOPIC 3
Individual factors
Motivation theories
b. Trio need theory
TOPIC 3
Individual factors
The dynamics of
motivation
• Needs are never fully satisfied
• New needs emerge as old need
are satisfied
• Success and failure influence
goals
• Multiplicity of needs and
variation of goals
TOPIC 3
Individual factors
Personality
Personality can be defined as the
inner psychological characteristics
that both determine and reflect
how a person responds to his or
her environment.
The nature of
personality
• Personality reflects
individual differences
• Personality is consistent and
enduring
• Personality can change
TOPIC 3
Individual factors
Theories of personality
There are three major theories of
personality:
• Freudian theory
• Trait theory
• Self-concept theory
Freudian theory
Freud implicated the structure of
the mind, namely id, ego and
superego and how conflicts among
these constituent parts are
resolved in shaping human
personality.
TOPIC 3
Individual factors
Freudian theory
Trait theory
A trait is any characteristics in
which one person different
from another.
Traits are the features of an
individual or tendency of an
individual in a particular manner.
TOPIC 3
Individual factors
Self-concept theory
The self-concept theory refers to
individual thoughts and feelings
based on identifying
himself/herself as an object for
reference.
Dimension of self-concept
TOPIC 3
Individual factors
Perception
Perception is defined as the
process by which an individual
selects, organizes and interprets
stimuli into a meaningful and
coherent picture of the word.
TOPIC 3
Individual factors
Perception
The stages of perception
TOPIC 3
Individual factors
Perception
The internal and external factors
influencing perception
a. Internal factors
Needs and Desires
Personality
Experience
b. External factors
Size
Intensity
Frequency
Status
Contrast
Position
Novelty
Repetition
Colour & Movement
TOPIC 3
Individual factors
• LEARNING
Learning
Consumer learning can be thought
of as the process by which
individuals acquire the purchase
and consumption knowledge and
experience that they apply to
future related behavior.
Elements in consumer
learning
• Motivation
• Cues
• Response
• Reinforcement
TOPIC 3
Individual factors
Learning theory
a. Classical conditioning theory
According to Pavlov theory,
conditioned learning results when
a stimulus that is paired with
another stimulus that elicits a
known response serves to produce
the same response when used
alone.
TOPIC 3
Individual factors
Strategic application of
classical conditioning
Three basic concepts derive
from classical conditioning:
Repetition
Stimulus generalization
Stimulus discrimination
Attitude
According to Schiffman and
Kanuk (2010), attitude is a
learned predisposition to behave
in a consistently favorable or
unfavorable way which respect
to given object.
TOPIC 3
Individual factors
Characteristics of attitude
• The attitude “object”
• Attitudes are learned
• Attitudes have consistency
• Attitudes occur within a
situation
Strategies of attitude change
• Changing the basic motivational
function
• Associating the product with an
admired group or event
• Resolving two conflicting
attitudes
• Altering components of the multi
attributes model
• Changing consumer beliefs about
competitors’ brands
ENVIRONMENTAL
FACTORS
In the end of this topic,
students will be able:
Discuss the influence of culture
and sub-culture towards
consumer behavior
Discuss how social class
influences consumer behavior
Discuss reference groups and
family influences
TOPIC 4
Environmental factors
The Influence Of Culture And
Sub-culture Towards
Consumer Behaviour
Culture is defined as sum total of
learned beliefs, values and customs
that serve to direct the consumer
behavior of members of a
particular society.
Components in the
culture
• Value
• Custom
• Language and symbol
• Belief
TOPIC 4
Environmental factors
Characteristic of culture
Culture satisfied needs
The invisible hand of culture
Culture is learned
• Formal learning
• Informal learning
• Technical learning
Culture is dynamic
Define sub-culture
Sub-culture can be defined as
distinct cultural group that
exists as an identifiable
segment within a larger, more
complex society.
TOPIC 4
Environmental factors
5 major subculture
Geographic and regional subculture
Religion
Race
Age
• Gen Y, Gen X, Baby boomers, Seniors
Gender
Social class
A continuum which includes a
range of social positions on
which each member of society
can be placed, divided into a
small number of specific social
classes or strata.
TOPIC 4
Environmental factors
Social status
A relative rankings of members of
each social class in terms of
specific status factors.
Categories of social class
profiles
The upper-upper social class
The lower upper social class
The upper-middle class
The lower-middle class
The working class
Upper-lower class
The lower-lower class
TOPIC 4
Environmental factors
Evaluate selected consumer
behavior applications of social
class
• Clothing, fashion and shopping
• The pursuit of leisure
• Saving, spending and credit
• Social class and communication
Reference Group
A group that an individual can
identify with, and one which
guides his/her future behaviour
depending on specific situational
circumstances.
TOPIC 4
Environmental factors
• Membership
A membership group is one to which
a person belongs or qualifies for
membership.
• Type of contact
Types of contact refers to
whether the communication or
interaction process is a direct or
indirect one.
• Attraction
Attraction is referred to the level
of desirability that membership
within a group has for the
individuals.
Dissociative group
Associative group
Aspirational group
TOPIC 4
Environmental factors
The influence of reference
groups
Reference group influence can
take three forms:
• Informational influence
Informational influence occurs when an
individual uses the behaviours and
opinions of reference group members
as potentially useful bits of
information.
• Normative influence
Normative influence sometimes
referred to as utilitarian influence,
occurs when an individual fulfills group
expectations to accomplish direct
rewards or avoiding consent
• Identification influence
TOPIC 4
Environmental factors
• Identification influence
Identification influence called value-
expressive influence, occurs when
individuals have internalized the group’s
values and norms.
.
Family
Family is defines as two or more
persons related by blood, marriage,
or adoption who reside together.
Functions of family
• Economic well-being
The family who forms their family
for economic security, providing
financial.
TOPIC 4
Environmental factors
Functions of family
• Emotional support
The provision of emotional
nourishment (including love,
affection, and intimacy) to its
members is an important core
function of the contemporary family.
• Suitable family lifestyles
Upbringing, experience, and the
personal and jointly held goals of the
spouses determine the importance
placed on education or career, on
reading, on television viewing, on the
learning of computer skills, on the
frequency and quality of dining out, and
on the selection of the other
entertainment and recreational
activities.
TOPIC 4
Environmental factors
Family decision making and
consumption-related roles
Family decision making is the process
by which decisions that directly or
indirectly involve two or more family
members are made.
Influencers
Family member(s) who provide
information to other members about
a product or service
Gatekeeper
Family member(s) who control the flow
of information about a product or
service into the family
TOPIC 4
Environmental factors
Deciders
Family member(s) with the power to
determine unilaterally or jointly
whether to shop for, purchase, use,
consume or dispose a specific product
or service.
Buyers
Family member(s) who make the actual
purchase of particular product or
service.
Preparers
Family member(s) who transform the
product into a form suitable for
consumption by other family members.
Users
Family member(s) who use or consume a
particular product or service.
TOPIC 4
Environmental factors
Maintainers
Family member(s) who service or repair
the product so that it will provide
continued satisfaction
Disposers
Family member(s) who initiate or carry
out the disposal or discontinuation of a
particular product or service