Unit II
U N D E R S TA N D I N G TA R G E T
A U D I E N C E B E H AV I O R
Consumer Behavior
Study of how individuals make decisions to spend their available
resources – (time, money and efforts) on consumption related
items –
What they buy
Why they buy
Where they buy
How often they buy and use a product or service.
B enefits
C osts
O thers
S elf-Efficacy
Benefits and costs are the main focus of marketing.
Consumers must give up something (cost) to get something
(benefit).
Others (family, peers) can influence marketing in a positive or
negative way through social pressure.
Andreasen & Kotler, 91-92
Benefits
Costs
Others
Self-Efficacy
Self-Efficacy can play a part in behavior even when all other
factors (benefits, costs, others) are in sync. One has to believe
that he/she can change their behavior
Andreasen & Kotler, 92
The greatest challenge marketers face is figuring out how
to make the benefits greatly outweigh the costs!
A simple formula:
Benefits of customer= cost to marketer
Cost of customer= benefit to marketer
• The exchange role is very essential
Andreasen & Kotler, 93
**Understanding consumer behavior is vital for the success of the organization.
Management decisions where understanding
consumer behavior is key:
Segmentation: categorizing consumers into groups according to
similarities
Marketing Mix: pricing costs and benefits, how to promote pricing
conclusion, how to distribute the end results in a convenient and attainable
manner for consumers
Strategic Allocation: how much money and resources to use for desired
project
Timing: when to employ the final marketing strategy
Andreasen & Kotler, 94
4 levels to make management decisions :
Descriptive understanding: profile characteristic (age, gender, occupation) or
complexly categorize (social class, family life cycle)
Understanding of associations: how some behaviors/characteristics are
linked with others at a given time
Understanding of causation: goes beyond linking behaviors to
understanding what causes them (is it a factor that can be controlled by the manager?)
Ability to explain causation: now, goes beyond what causes behaviors to
why it occurs!
**Complexity grows with each level. This is not easy!! Only experience, time, and careful research leads to
successful management decisions.
Andreasen & Kotler, 94-95
Consumers must make the decision to engage in
behaviors influenced by marketers.
There are 2 factors that play a part in consumer
action.
**See Table 4-1 on p. 96
Low-involvement: simple exchanges that do not involve high
cost , time & effort
High-involvement: contingent upon 1 or more of the
subsequent:
The behavior required of the consumer will reflect upon his or her self-image.
Monetary/personal costs of undesirable behavior is perceived high.
Personal/social danger of making a bad move is perceived high.
The pressures from “others” (remember?) to behave or not to behave in a particular
way is strong, making impulse to conform stronger.
Note : “ Involvement is the activation of extended problem – solving behavior when the act of purchase or
consumption is seen by the decision maker as having high personal importance or relevance”.
Andreasen & Kotler, 95-96
Behaviors which are being performed for the very first time are
those which cause consumers to go into complex decision making
mode.
The behaviors are also usually of high involvement and occurring over time.
According to research, more successful marketing can come from
the creation of stages beginning with the stage the current target
audience is in.
The goal should be transitioning the audience to the next stage, making the
change more attainable.
Andreasen & Kotler, 97
Pre-contemplation: an audience who
has just began to consider a marketer
targeted behavior
Never heard about benefits of behavior
2 Stages of Contemplation:
Heard of behavior yet not attracted (i.e.
Early: thoughts of behavior just
against religion, inappropriate)
beginning
Contemplation: audience is already Focus on benefits and costs (mostly
considering targeted behavior benefits; determines moving to next
Weighing costs and benefits stage)
Thinking of the opinion of “others” Late: considering behavior more
Focus on costs, other, ability
Thinking of their ability to perform
behavior
**Most marketing begins here
Andreasen & Kotler, 97-98
Preparation and Action: Maintenance: reinforcement
audience has carefully comes into play due to the
thought out the behavior and marketers goal of long term
action soon follows. behavior compliance.
Action may be prolonged by self- Keeping audience engaged is
doubt, opportunity, or because they the key
need a boost in the forward
direction
Andreasen & Kotler, 98
Pre-contemplators: Preparation and Action:
Arouse audience senses Boost self-esteem, create an
through awareness, abundance opportunities
knowledge, and interest Maintenance:
Contemplators: Generate rewards, make
Early: emphasize personal behavior continuance simple,
focus social pressure on the
(not societal) benefits good behavior
Late: emphasize the
reduction of costs and
social pressure
Andreasen & Kotler, 99
In the world of strategic marketing, where long term
behavior change is the most common goal, understanding
consumer behavior and how to apply stages to easily
reach their goals are very essential steps to success.
