Consumer Behavior Model Overview

Consumer Behavior Model

• The model is a framework to understand how consumers make decisions.
• It consists of five steps:
  • Need Recognition
  • Information Search
  • Evaluation of Alternatives
  • Purchase Decision
  • Post-purchase Behavior

Need Recognition

• It is the beginning of the buying process.
• The consumer identifies a problem or a need, which triggers the desire to purchase.
• Internal stimuli (memories and experience) and external stimuli (outside environment) influence this stage
• It is triggered by factors like:
  • Product out of stock
  • Dissatisfaction with previous purchases
  • New needs or wants
  • Related product purchases
  • Advertising and promotions
  • New products

Information Search

• Consumers gather information about the product they are considering.
• It can be obtained through:
  • Personal Sources: family, friends, neighbors, acquaintances
  • Commercial Sources: advertisements, salespeople, dealers, packaging, displays
  • Public Sources: restaurant reviews by critics, consumer-rating organizations
  • The Internet: the company's website, review platforms, and social media

Evaluation of Alternatives

• Consumers analyze and compare different options based on different approaches.
• The Multi-attribute Approach:
  • Each product is considered a bundle of attributes (price, style, safety, features, etc)
  • Consumers assign different degrees of importance to each attribute (some features matter more than others)
  • Consumers form beliefs about each brand's specific attributes (price, quality, durability, etc)

Purchase Decision

• The consumer ranks the brands in the choice set and forms the intent to purchase.
• Purchase intention can be affected by:
  • Unexpected Situations: family influence, unforeseen events, financial constraints, etc.

Post-purchase Behavior

• The consumer uses the product and determines if the purchase was satisfactory.
• It can impact future purchases and customer loyalty.
• If the product meets expectations, the consumer will be satisfied.
• Consumers may voice their satisfaction or dissatisfaction through feedback and reviews.
• Cognitive dissonance (buyer's remorse) is a common feeling after purchasing a product, especially for major purchases.