Consumer Behavior & Marketing Communication

Unit 1

Consumer behavior

Consumer behavior refers to the study of how individuals make decisions about purchasing goods and
services. It encompasses the processes involved in recognizing needs, searching for information,
evaluating alternatives, making purchases, and post-purchase evaluation. Understanding consumer
behavior is crucial for marketers and businesses, as it helps them tailor their products, marketing
strategies, and customer experiences to meet the needs and preferences of their target audience.
Factors influencing consumer behavior include psychological, social, cultural, and economic influences,
as well as personal preferences and situational contexts.

Marketing Mix

The marketing mix is a foundational concept in marketing that refers to the combination of factors that
a company can control to influence consumers' purchasing decisions. Traditionally, it consists of four key
components, often referred to as the "4 Ps":

1. Product: This includes the goods or services offered by a business, focusing on quality, features,
branding, and packaging.
2. Price: This involves the pricing strategy for the product, including discounts, payment terms, and
perceived value, which can affect demand.
3. Place: This refers to the distribution channels used to deliver the product to consumers,
including locations, logistics, and online presence.
4. Promotion: This encompasses all the activities aimed at communicating the product's benefits
and persuading customers to purchase, including advertising, sales promotions, public relations,
and social media.

In recent years, the marketing mix has evolved to include additional elements, such as People, Process,
and Physical evidence, particularly in service marketing, creating the "7 Ps" framework. By effectively
managing these components, businesses can better meet customer needs and achieve their marketing
objectives.

Consumer Goals

Consumer goals refer to the specific objectives or outcomes that individuals aim to achieve when
making purchasing decisions. These goals can vary widely based on personal preferences, needs, and
circumstances, and they play a crucial role in shaping consumer behavior. Common types of consumer
goals include:

1. Functional Goals: These focus on practical needs, such as solving a problem, enhancing
efficiency, or improving performance. For example, a consumer may seek a reliable car for daily
commuting.
 2. Emotional Goals: These involve the desire for feelings such as happiness, status, or belonging. A
consumer might buy luxury goods to boost self-esteem or connect with a particular social group.
3. Social Goals: These are related to social interactions and relationships, such as impressing
others, fostering connections, or fitting in. A consumer may choose a product that is trendy to
align with peers.
4. Cognitive Goals: These pertain to information-seeking and learning, where consumers aim to
make informed decisions based on research and analysis.

Understanding consumer goals helps marketers tailor their strategies to meet these diverse needs,
ultimately enhancing customer satisfaction and loyalty. By aligning products and messaging with
consumer objectives, businesses can create more effective marketing campaigns and improve overall
engagement.

Consumer Decision Making Process

The consumer decision-making process is a structured sequence of steps that individuals typically follow
when making purchasing decisions. Here’s a brief overview of each stage:

1. Need Recognition: This is the initial stage where a consumer identifies a need or problem. It can
be triggered by internal stimuli (e.g., hunger) or external stimuli (e.g., advertisements).
Recognizing a need motivates the consumer to seek a solution.
2. Search for Information: Once a need is recognized, consumers gather information to address it.
This can involve internal search (recalling past experiences) and external search (seeking
information from friends, family, online reviews, and marketing sources). The depth of this
search can vary based on the complexity and importance of the decision.
3. Pre-Purchase Evaluation of Alternatives: At this stage, consumers evaluate different products or
services that can satisfy their needs. They compare features, prices, quality, and brand
reputation, often creating a shortlist of preferred options.
4. Purchase: After evaluating alternatives, the consumer makes a decision and completes the
purchase. This stage can be influenced by factors such as pricing, availability, and the purchasing
environment (online or in-store).
5. Consumption: This phase involves using the product or service. The experience during
consumption can significantly affect future purchasing decisions and overall satisfaction.
6. Post-Consumption Evaluation: After consumption, consumers assess their satisfaction with the
product. This evaluation can lead to positive or negative feelings, influencing future behavior,
including repeat purchases, brand loyalty, or negative word-of-mouth.
7. Divestment: Finally, consumers may decide to dispose of the product, either by reselling,
recycling, or discarding it. This stage can reflect their satisfaction with the product and its
perceived value over time.

Understanding this process helps marketers develop strategies to effectively engage consumers at each
stage, ultimately guiding them toward a positive purchasing experience.
Interrupts in buying process and their effects

Interruptions in the buying process can significantly impact consumer behavior and decision-making.
These interruptions can occur at any stage of the decision-making process and may stem from various
sources. Here are some common types of interruptions and their potential effects:

1. Information Overload: When consumers are bombarded with too much information, it can lead
to confusion and indecision. This overload may cause consumers to delay their purchase or
abandon it altogether due to feeling overwhelmed.
2. Negative Reviews or Feedback: Encountering negative reviews or feedback during the search for
information can derail a consumer's interest in a product. This can lead to a reevaluation of
alternatives and, in some cases, to a complete withdrawal from the purchasing process.
3. Price Changes: Unexpected price increases or discounts can interrupt the buying process. A
sudden price hike might lead consumers to reconsider their decision, while a discount might
prompt a quicker purchase.
4. External Influences: Factors such as recommendations from friends or family, social media
trends, or advertising can interrupt a consumer’s thought process. Positive external influences
can encourage a purchase, while negative ones can deter it.
5. Technical Issues: For online purchases, technical difficulties (like website crashes or payment
failures) can frustrate consumers and lead to cart abandonment. A seamless purchasing
experience is crucial to maintaining consumer interest.
6. Emotional Disruptions: Personal circumstances or emotional states (like stress or excitement)
can influence decision-making. A negative emotional state might lead to impulsive buying or
avoidance, while positive emotions might enhance the likelihood of purchase.
7. Competing Priorities: Changes in a consumer's life situation (like a new job or family
commitments) can shift priorities and interrupt the buying process. Consumers may postpone or
alter their purchasing decisions based on these new factors.

Effects of Interruptions

1. Increased Abandonment Rates: Interruptions often lead to higher rates of abandoned carts in e-
commerce and lost sales in physical stores.
2. Altered Preferences: Interruptions can cause consumers to reconsider their initial choices,
potentially leading them to select different products or brands.
3. Decreased Loyalty: Negative experiences during the buying process can erode brand loyalty,
making consumers less likely to return for future purchases.
4. Extended Decision-Making Time: Consumers may take longer to make decisions if they
experience interruptions, leading to delays in sales cycles.
5. Shift in Purchase Timing: Interruptions can lead consumers to postpone their purchases or
change the timing of when they buy.

By understanding these interruptions and their effects, marketers can develop strategies to minimize
disruptions and enhance the overall purchasing experience.
Customer involvement

Customer involvement refers to the degree of personal relevance or significance that a consumer
perceives in a purchasing decision. This concept plays a crucial role in determining how consumers
engage with products, brands, and the buying process. Customer involvement can vary based on several
factors, including the nature of the product, the individual's personal values, and the context of the
purchase. Here are the key aspects of customer involvement:

Types of Customer Involvement

1. High Involvement:
 Characteristics: Involves significant investment of time, effort, and resources. Consumers
typically engage in extensive research, comparison, and evaluation.
 Examples: Buying a car, a house, or high-end electronics. These purchases often involve
substantial financial commitments and personal importance.
2. Low Involvement:
 Characteristics: Involves minimal effort and is often based on habit or impulse. Consumers may
rely on heuristics (mental shortcuts) rather than extensive evaluation.
 Examples: Purchasing everyday items like snacks or toiletries. These decisions are often made
quickly and with little deliberation.

Factors Influencing Customer Involvement

1. Product Characteristics: The complexity, cost, and risk associated with a product can influence
involvement levels. High-risk items typically lead to higher involvement.
2. Personal Relevance: If a product aligns closely with an individual’s values, interests, or lifestyle,
it is likely to evoke higher involvement.
3. Situational Factors: Context can play a role; for instance, a limited-time offer or a unique
situation may heighten involvement temporarily.
4. Social Influences: Recommendations from friends, family, or social media can affect how
involved a consumer feels in the decision-making process.

Implications for Marketers

1. Tailored Marketing Strategies: Understanding the level of customer involvement can help
marketers design targeted strategies. High-involvement products may benefit from detailed
information, demonstrations, and personalized communication, while low-involvement products
may require broader reach and convenience.
2. Engagement Techniques: For high-involvement purchases, marketers can use in-depth content,
interactive experiences, and customer testimonials to foster deeper engagement.
3. Brand Loyalty: High involvement often leads to stronger brand loyalty, as consumers invest
more thought and emotional connection into their decisions.
 4. Decision-Making Support: Providing resources such as guides, FAQs, and comparison tools can
enhance the buying experience for high-involvement products, helping consumers feel more
confident in their choices.

By recognizing and addressing the varying levels of customer involvement, businesses can create more
effective marketing strategies and improve overall customer satisfaction.

Consumer journey through the world of technology

The consumer journey through the world of technology has evolved significantly, shaped by
advancements in digital tools, platforms, and connectivity. This journey typically involves several key
stages that reflect how consumers interact with technology during their decision-making process. Here’s
an overview:

1. Awareness

In this initial stage, consumers become aware of a product or service through various technological
channels. This can include:

 Social Media: Influencers, ads, and organic content introduce consumers to new products.
 Search Engines: Consumers may stumble upon products while searching for solutions to their
needs or interests.
 Online Reviews: User-generated content helps build awareness and credibility.

2. Research and Consideration

Once aware, consumers actively seek information to evaluate their options. Technology plays a crucial
role here:

 Websites and E-commerce Platforms: Detailed product descriptions, specifications, and pricing
help consumers compare options.
 Social Proof: Reviews and ratings from other consumers on platforms like Amazon, Yelp, or
Trustpilot influence perceptions.
 Comparison Tools: Websites and apps that allow side-by-side comparisons make it easier for
consumers to weigh alternatives.

3. Evaluation of Alternatives

In this stage, consumers narrow down their choices:

 Content Consumption: Consumers may watch unboxing videos, tutorials, or expert reviews on
YouTube or tech blogs.
 Virtual Try-Ons: Augmented reality (AR) tools allow consumers to visualize products in their own
environment (e.g., furniture, makeup).
 Interactive Features: Configurators for customizing products (like cars or tech gadgets) help in
making informed decisions.
4. Purchase

When consumers decide to buy, technology facilitates the transaction:

 E-commerce Sites: Easy-to-navigate online stores streamline the purchasing process.

5. Consumption

After purchase, consumers engage with the product:

 User Experience: Technology impacts how consumers use the product, such as apps for smart
devices or online services.
 Support and Community: Online forums, customer support via chatbots, and user communities
enhance the consumption experience.

6. Post-Purchase Evaluation

Following consumption, consumers reflect on their experience:

 Feedback Channels: Technology allows easy sharing of reviews and experiences on social media
or review platforms.
 Loyalty Programs: Digital loyalty programs encourage repeat purchases through rewards and
personalized offers.
 Customer Surveys: Companies can gather feedback through online surveys to improve future
offerings.

7. Advocacy and Engagement

Satisfied consumers often become advocates:

 Social Sharing: Happy customers share their experiences on social media, influencing their
networks.
 User-Generated Content: Brands may encourage consumers to create content (like photos or
videos) featuring their products, fostering community engagement.

Conclusion

The consumer journey through technology is dynamic and interactive, driven by the need for
convenience, information, and engagement. As technology continues to evolve, businesses must adapt
their strategies to meet changing consumer expectations, ensuring they provide seamless experiences
across all stages of the journey. Understanding this journey helps brands connect with consumers more
effectively and build lasting relationships.