Topic 1 Understanding Consumer Behaviour PDF

MARKET RESEARCH AND CONSUMER BEHAVIOR Topic 1 Topic: Understanding Consumer Behavior Consumer behavior is a complex field that explores the decision-making processes, motivations, and actions of individuals or groups when selecting, purchasing, using, or disposing of products or services. Understa...

MARKET RESEARCH AND CONSUMER BEHAVIOR Topic 1 Topic: Understanding Consumer Behavior Consumer behavior is a complex field that explores the decision-making processes, motivations, and actions of individuals or groups when selecting, purchasing, using, or disposing of products or services. Understanding these behaviors is crucial for businesses to develop effective marketing strategies. The Five Stages of Consumer Decision Making 1. Need Recognition: o This is the initial stage where a consumer becomes aware of a need or want. It can be triggered by internal factors (hunger, thirst) or external stimuli (advertising, product placement). o Example: Running out of milk or seeing a stylish outfit in a magazine. 2. Information Search: o Once a need is identified, consumers actively seek information about potential solutions. This can involve: ▪ Internal search: Recalling past experiences or knowledge. ▪ External search: Seeking information from various sources like friends, family, media, or the internet. o Example: Researching different smartphone models or reading product reviews. 3. Evaluation of Alternatives: o Consumers compare different product or service options based on specific criteria. These criteria can include price, quality, features, brand reputation, and personal preferences. o Example: Comparing laptops based on processor speed, storage capacity, and price. 4. Purchase Decision: o After careful evaluation, consumers make a purchase decision. This involves choosing a specific product or service and the retailer from which to buy. o Example: Selecting a particular laptop model from an online store.  5. Post-Purchase Behavior: o This stage involves evaluating the purchase decision. Consumers assess whether the product or service met their expectations and may engage in word-of-mouth communication or repeat purchases. o Example: Sharing a positive or negative review about the purchased laptop. Factors Influencing Consumer Decision Making It's important to note that various factors can influence consumer decision-making throughout these stages. These include: Psychological factors: Motivation, perception, learning, beliefs, attitudes, personality. Social factors: Reference groups, family, social class, culture, subculture. Personal factors: Age, occupation, lifestyle, economic situation. Consumer Motivation: The Driving Force Behind Behavior Consumer motivation is indeed a crucial aspect of understanding consumer behavior. Maslow's Hierarchy of Needs: A Foundation Maslow's hierarchy of needs is a foundational theory in understanding human motivation, including consumer motivation. It suggests that humans are motivated by a series of needs arranged in a hierarchical order. Maslow's Hierarchy of Needs: A Foundation Maslow's hierarchy of needs is a foundational theory in understanding human motivation, including consumer motivation. It suggests that humans are motivated by a series of needs arranged in a hierarchical order. Physiological needs: These are the most basic needs, such as food, water, and shelter. Safety needs: Protection from harm, security, and stability. Love and belongingness needs: Social interaction, affection, and acceptance. Esteem needs: Self-respect, achievement, status, and recognition. Self-actualization needs: Realizing one's full potential and personal growth. While Maslow's theory provides a general framework, it's important to note that individual motivations can vary widely and may not always follow a strict hierarchical pattern. Beyond Maslow: Other Motivational Theories Expectancy theory: People are motivated by their expectations of achieving desired outcomes. Goal-setting theory: Setting clear and challenging goals can increase motivation. Drive reduction theory: Motivation arises from physiological needs that create drives to reduce tension. Incentive theory: External rewards or incentives motivate behavior. Implications for Marketing Understanding consumer motivation is essential for effective marketing strategies. By identifying consumers' underlying needs and desires, marketers can develop products and messages that resonate with their target audience. For example: A luxury car might appeal to consumers' esteem needs. A healthy food product could target physiological and safety needs. A social media platform might focus on love and belongingness needs. References: - Schiffman, L. G., & Kanuk, L. (2010). Consumer behavior. Pearson Education. - Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370-396.