Lecture 2

MKT10007
Fundamentals of Marketing
Lecture 2:
Buyer Behaviour
Prepared by Dr Lauren Gurrieri

An overview of marketing The marketing process Swinburne
Buyer Behaviour
SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

The marketing environment Swinburne
Lecture overview NEXT Week
• The marketing environment

- Understanding the marketing environment
- Tools used to monitor the marketing environment
- Demographic environment
- Sociocultural environment
- Economic environment
- Technological environment
- Natural environment
- Political and legal environment
- Competitive environment
- Responding to the marketing environment
Buyer behaviour Swinburne
Lecture overview
This Week
• Consumer buyer behaviour
- Consumer decision making process Assignment 2 is all
- Involvement about Consumer
- Types of consumer buying decisions Behaviour
- Consumer roles
- Factors affecting the consumer decision making process
▪ Cultural
▪ Social
▪ Individual
▪ Psychological

Consumer behaviour
• Consumer behavior is the study of how individuals,

groups and organisations select, buy, use and dispose of
products to satisfy their needs and wants
• Marketers must fully understand both the theory and

reality of consumer behaviour
- In Australia/NZ, there are more than 26 million people who
consume more than $1 trillion of goods and services each
year

The Study of Consumer Behaviour
The consumer market:

➢ “…individuals and households who buy or
acquire goods and services for personal
consumption.” (Kotler, et al. 2009: 162)
Most marketers undertake consumer research to try to
learn more about: what consumers buy, who buys,
how they buy, when they buy, where they buy and,
most importantly, why they buy.
The central question is:
➢ How do consumers respond to the various
marketing stimuli the marketing organisation
might use?
Consumer Stimulus-Response Model
Also called the “consumer decision making process”
Source: Armstrong et al. 2012: 149

Consumer Decision Making Process (CDMP);
Captures the full range of considerations that arise
when a consumer engages in a purchase
1. Need
recognition
2. Information
Internal Search External
processes/influences influences
3. Evaluation
Of
Alternatives
4. Purchase
5. Post purchase
evaluation
Consumer behaviour
• When buying something, consumers follow a buying process
• Consumer typically passes through five steps
• Process starts long before actual purchase and has consequences

after
• Consumers don’t always pass through all five stages

• May skip or reverse
• eg. for routine purchases would skip step 2 and 3
• Process often used as a guide for studying how consumers make
decisions
• Captures the full range of considerations that arise when a
consumer engages in a purchase
• Marketers should consider the entire process
Step 1; The buying process starts with Need recognition
• Occurs when a consumer is faced

with an imbalance between actual
and desired states – consumer
recognises a problem or need.
- Need can be triggered by internal or
external stimuli (that affect one or more of
the five senses; sight, smell, taste, Consumer satisfying a need
touch, and hearing.)
- A want exists when a consumer has an
unfulfilled need and has determined
that a product can satisfy it
Marketer provides external stimulus via TV ad

Buyer behaviour
Swinburne
• Internal stimuli is something you normally need and experience eg.
feeling thirsty or hungry
• External stimuli stem from sources outside one’s self, e.g. package
design or advertisement
• The role of the marketer is to (1) understand the

circumstances that trigger the need (2) communicate this
trigger to the consumer by getting the consumer to
recognise this imbalance, and buy their product to satisfy
the need.
• A want exists when consumer has an unfulfilled need and has
determined a product can satisfy it.
• Wants are not pure necessities, e.g. shelter or warm clothes
• Many people have perceived needs – things they think are
essential,
SCIENCE | TECHNOLOGY such
| INNOVATION as mobile
| BUSINESS | DESIGN phone – marketers exploit this.
• Consumers recognise unfulfilled needs by
Marketers
create and/or • Dissatisfaction with performance of existing
exploit these product; computer crashes/glitches.
circumstances
and then • Run out of something generally kept on hand
communicate • Changed circumstances, such as having a baby
that they have
a product to • Product acquisition – bought a camera now need a
satisfy this lens, razor > blades, new sport > need equipment.
“unfulfilled”
need. • Learn about a superior product/feature; iPhone 7
• Marketers can create wants
• We scan marketplace for new trends and then
create new products to satisfy needs based on new
trend.
• We can create new trends or events; Valentine’s Day,
Mother’s Day (created by Hallmark Cards) etc.
Segmentation, targeting and positioning Swinburne
Consumer decision making Process (CDMP)
> Assignment 2 In-Lecture Discussion
Theatre Your product
location
What triggers the need?
Right Back Take-away
coffee
How might marketers
communicate this trigger to the Right Front Breakfast
consumer by getting the cereal
consumer to recognise this
imbalance (=need), and buy Left Back New
their product to satisfy this need. refrigerator
Left Front New car
SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN 13

Step 2; Information search
• Consumers then search for information about the various

alternatives available to satisfy a need or want
- Internal search is the process of recalling information
stored in the memory
- External search seeks information from external
sources
▪ Marketing controlled
▪ Non-marketing controlled (personal sources, personal
experiences, public sources)
• Need to be aware of the potential for information overload

• If the consumer’s drive is strong and a satisfying product is near at
hand, the consumer is likely to buy it then; thirsty > buy a Coke at the shop
>>> marketer aims to put product and Point-of-Sale (POS) signage everywhere.
• If not, the consumer may store the need in memory and/or

undertake an information search related to the need
• Search can occur internally, externally or a combination of both
• Internal search = recalling information stored in the memory
• External search seeks information from external sources
1. Marketing-controlled, e.g. advertising, salespeople,
packaging
• Can be informative and help make choices
• But people are skeptical of bias
• A company must design marketing mix to make consumers
knowledgeable and aware of brand
External search information source # 2 is Non-marketing
controlled
• personal sources (friend, family)
• People we know who are experts in particular areas – phones,
computers.
• personal experience (handling and using product)
• public sources (internet, newspaper, consumer rating organisations)
• Though consumers receive the greatest amount of information

about a product from marketing-controlled sources….
• Most effective information comes from personal sources or public
sources that are independent authorities
• Need to ensure consumer’s do not feel overwhelmed with quantity of
information
• Can create information overload
• Unable
SCIENCE to make
| TECHNOLOGY decision
| INNOVATION | BUSINESS | DESIGN
• Extent of search depends on the perceived risk of

purchasing the product
• Types of risk
• financial (worth price paid)
• social (product results in embarrassment in front of others)
• physical (safe and not pose health or wellbeing risk)
• functional (perform to expectations)
• psychological (affects the mental well-being of the user)

- Factors influencing perceived risk are:

▪ Knowledge about product
▪ Confidence in decision making ability
▪ Product experience
▪ Interest in the outcome
• Generally, the higher the risk, the greater the search
>> Goal is to reduce uncertainty
• Perceived costs also affect search are the amount of
resources consumers need to commit to search these are
time, money, effort

Where would consumers search location
for information about the various Right Back Take-away
alternatives available to satisfy coffee
the need for your product?
(Internal & External search - Right Front Breakfast
Marketing controlled and Non- cereal
marketing controlled.)
Left Back New
refrigerator
The consumer’s Goal is to
reduce uncertainty. What risks Left Front New car
are the ones the consumer is
seeking to minimise by
searching for information?
Step 3; Evaluation of alternatives
• Search yields the buyer’s evoked set or consideration set = a
group of brands from which a buyer will choose.
• The process consumers use to make choices from evoked
set: Buyers don’t
“consider” all
brands, just a
preferred few.
There are 200
car brands
available in
Aus. People
tend to
“consider” no
more than 5
when
contemplating
purchase
• No single process is used by consumers to choose among

alternative brands
• Evaluation involves the development of a set of criteria
• Help the consumer consider and compare alternatives
• Some are objective (facts), others subjective
(emotions).
• To decide upon their evoked set, consumers will use
both objective (facts) and subjective (emotions)
evaluation criteria

• Consumers narrow their choice • Marketers try to
of brands by evaluating brands determine which
according to attributes that are attributes are most
important to them, e.g. a good important
camera on a phone. Then they • Marketers often make the
will select brands that have that mistake of making
attribute. assumptions about what the
consumer thinks is most
• Marketers will communicate to important – hence the
importance of marketing
consumers which important research.
attribute(s) their brand excels at
• E.g. Nokia Lumia 1020
launched by showing you
can find a needle in
haystack with its zoom.

• Narrow choices by using cut offs
• Minimum or maximum levels for brands to be considered
further
• To narrow choice of phone further, might use price
• E.g. Phone must be under $300
• Further narrow by ranking attributes
• What are most important attributes?
• How do products perform?
• E.g. camera quality and memory
• If a new brand is added to the evoked set, the original brands
may be evaluated differently
• E.g. $350 phone added
• Now phone that was $299 before may seem more desirable

Consumers use brands to help
evaluate alternatives
Brands can impact choice

• Used to simplify decision
making process
• Signal trust and quality
• E.g. Might trust a brand based on
experience with it
• E.g. might trust based on type of
people you think use it
• E.g. don’t want to ‘think’ so buy
market leader > e.g. Panadol
• Australia's most trusted
brand of pain reliever
• Marketers can influence a

consumer’s evaluations by
framing the alternatives
- Describes the alternatives
and their attributes in a
certain manner
- Make a certain attribute
seem more important to
consumers
• More likely to influence

inexperienced buyers

-What attributes are likely to location
be important to your Right Back Take-away
consumers? coffee
-What cut-offs might they
use? Right Front Breakfast
cereal
-How might brands impact on
the consumer’s choice?
Left Back New
refrigerator
Left Front New car

Step 4; Purchase
• The purchase decision will involve

buying the most preferred brand
- Trial purchase
- Repeat purchase
E.g. Harley
- Long-term commitment Davidson – stands
for the spirit of
• Cult brands
freedom and
• Deliver lifestyle and social benefits to individualism. They
consumers have a very loyal
• Sense of belonging customer base that
• People share same culture and buy this
passions experience
Step 4; Purchase
Two factors intervening between
purchase intention and purchase
decision can change the buyer’s
intention; Audience; examples?
1. Attitude of others; depends on two things:
• The intensity of the other person’s 2. Unanticipated

negative attitude toward the buyer’s situational factors
preferred alternative • Competing offers of
value at point of sale
• Our motivation to comply with the other • Sales person may not
person’s wishes close the sale correctly
• The more intense the other person’s • Emotional (you like the
negativism and the closer he or she is to salesperson) and
us, the more we will adjust our purchase functional factors
intention (short of time, getting
• The
SCIENCE converse
| TECHNOLOGY is also
| INNOVATION true | DESIGN
| BUSINESS tired, feet are hurting.).
Step 5; After buying or “Post-purchase” behaviours
After the purchase, the consumer might experience
“dissonance” about their purchase. “Cognitive dissonance”
is an inner tension that a consumer experiences after recognising
an inconsistency between behaviour and values or opinions.
• Dissonance is discomfort caused by “post-purchase conflict”

or “buyer’s remorse”
• Did I make the right decision? Can feel this even if you
are satisfied – Audience; Can you give examples?
• Therefore the marketer’s job does not end when the product
is bought.
• reduce dissonance by reassuring the buyer that they
made the right decision. Making buyer feel good about the
brand. Dissonance might lead some buyers to return
product.
Step 5; Post-purchase behaviours
• Marketing can minimise this by reinforcing decision and

making customers feel good about brand
- Effective communication
- Follow-up
- Guarantees
- Warranties

Marketers monitor post-purchase satisfaction, post-purchase
actions, and post-purchase uses
Post-purchase satisfaction. Satisfaction is a function of the

closeness between expectations and the product’s perceived
performance
• If the performance falls short of expectations the consumer is
dissatisfied
• If the performance meets expectations the consumer is satisfied
• If the performance exceeds expectations the consumer is
delighted
• More expensive and difficult to attract new customers, so
marketers try to keep current customers satisfied.
• A satisfied customer may tell about 3-4 people
SCIENCE | • Dissatisfied
TECHNOLOGY customer
| INNOVATION may tell as many as 11 others.
| BUSINESS | DESIGN
Post-purchase actions
Satisfaction or dissatisfaction with the
product will influence subsequent
behavior.
• A satisfied customer may buy again and

spread positive word of mouth
• A dissatisfied consumer may abandon or

return the product or complain to others
• The creator of Vodafail.com Adam Brimo
submitted 30-page document to the Australian
Communications and Media Authority
• Summarised experiences of 12,000 Vodafone

customers in relation to poor coverage, service
and complaint handling.
Post-purchase uses and disposal.

• Marketers monitor how buyers use
and dispose of the product
• A key driver of sales frequency is
product consumption rate
• Consumers may fail to replace
some products soon enough
because they overestimate Therefore marketers
product life aim to increase
consumption rate.
Therefore marketers remind
consumers to buy again
Consumer Decision Making Process (CDMP);
Captures the full range of considerations that arise
when a consumer engages in a purchase
1. Need
recognition
2. Information
Internal Search External
processes/influences influences
3. Evaluation
Of
Alternatives
4. Purchase
5. Post purchase
evaluation
Involvement – what is it + why is it important to marketers?
• Higher involvement purchases are usually those where
the consumer perceives a high level of risk – see Step 2
Evaluation. High Risk > High Involvement.
• Involvement-level decides the amount of time and effort a
potential buyer invests in the search, evaluation and
decision processes of consumer behaviour
• Involvement has a strong impact on the manner or path by
which a consumer moves through decision making
stages
• High Risk > generally means that consumers go through
every step of the CDMP and often, over a long period of
time
• Low Risk > Low Involvement > some steps may be
skipped for purchases, e.g., milk.
Involvement – what is it and why is it important?

Level of involvement in a purchase is determined by
• Previous experience - If you have a previous satisfactory experience with
a brand, your involvement decreases, and increases if negative.
• Knowledge about the product category – if you feel less knowledgeable >
higher involvement.
• Interest; If you are interested in electronics or cars > higher involvement.

• Perceived risk of negative consequences; As risk increases, so does
involvement. Refer Step 2 Info Search re Risk;
• financial (worth price paid)
• social (product results in embarrassment in front of others)
• physical (safe and not pose health or wellbeing risk)
• functional (perform to expectations)
• psychological (affects the mental well-being of the user)
Involvement – what is it and why is it important?
- Level of involvement in a purchase is determined by

• Situation; buying a bottle of champagne for engagement =
high involvement.
• Social visibility; high social visibility > high involvement. All
purchases make a statement about purchaser, e.g.
engagement ring, couch, suburb buy house in.

Involvement
• Involvement; what should marketers do?
- High involvement: provide extensive and informative
promotion
- Low involvement: invest in in store promotions and packaging
• Marketers can convert a low involvement product into
one of higher involvement >> and then communicate that
their brand satisfies this “high involvement” need >>>>
- Link product to an involving issue; e.g. breakfast cereals and
health benefits
- Link product to an involving personal situation; e.g. watch for
anniversary gift
- Design advertising to trigger strong emotions related to
values or ego – e.g. nappies and providing nurturing environment
‘must be love’
- Add important features; e.g. whitening toothpaste
Types of consumer buying decisions

• All consumer buying decisions fall along a continuum,
with three broad categories: See “More About……..” slides at end of
these slides for further discussion of matters relevant to getting higher grades
for Types of buying decisions.

-High or Low Involvement? Theatre Your product

location
-What risks? Right Back Take-away

coffee
-Type of Consumer Buying Right Breakfast

Decision? Front cereal
Left Back New fridge

2 minutes discussion
2 minutes to present to the Left Front New car
lecture audience

Understanding buyer behaviour Swinburne
Consumer roles in the buying process. The marketer needs to
know which people are involved in the buying decision and what role
each person plays. Marketers identify who occupies the various roles
because this influences marketing mix decisions,
especially promotion
person who first

person who
Initiator suggests or thinks of
consumes/uses
product, e.g. all User idea to buy product, e.g.
youngest child
Key
who Decision Influencer
makes Buyer Roles
actual
purchase, whose view carries
e.g. father weight in buying
decision, e.g. teenager
interested in technology
ultimately makes Decider
buying decision, e.g.
mother
Factors influencing consumer buying decisions
External influences that represent the environment in
which the individual behaviour takes place:
• Culture
Cultural Factors • Subcultures
• Social class
• Reference groups
• Family
Social Factors • Opinion leaders
• Roles and status
• Age and lifecycle

• Occupation
Individual Factors • Economic situation
• Lifestyle
• Personality and self-concept
• Motivation
• Perception
Psychological Factors • Learning
• Beliefs and attitudes
Internal characteristics that determine our
behaviour:
Factors influencing consumer buying decisions
• These factors influence every stage of the process
• So marketers must take them into account
• Cultural factors exert the broadest and deepest
influence on consumer behaviour
• Social factors sum up the social interactions between a
consumer and influential groups of people
• Individual factors are unique to each individual and play
a major role in the types of products someone wants
• Psychological factors determine how consumers
perceive and interact with their environments and
influence their decisions
Cultural factors
• Culture is the essential character of a society that

distinguishes it from other cultural groups
• Culture is heavily ingrained into our daily habits and a
major influence on our wants and general behaviour
• Comprises values, language, myths, customs, rituals and
symbols that shape the behaviour of that culture
- Learned from others in society and passed down
• Dynamic so can evolve
• How would you define Australian culture?
• E.g. larrikin humour, egalitarianism, valuing underdog, fair go, tall poppy
syndrome >>> reflected in our Welfare State > “social democracy”.
• E.g. Traditions – Cup Day, ANZAC day
Diesel Global Warming Campaign
Cultural factors (2007) Models posing in Diesel
clothing in a world affected by raised
water levels and temperatures
Marketers constantly seek to identify
cultural shifts, or trends, that may impact
demand for products
• Particularly those affecting our values

– acceptable modes of conduct
• E.g. trend toward healthier lifestyles

such as exercise, weight loss, organic, Here is Rio de Janeiro underwater
environmental sustainability
• To make their brand more appealing

to people concerned about certain
cultural trends and causes the
marketer might seek to attach their
brand to that trend or cause.
Tropical birds in Venice
Cultural factors
Subcultures are homogenous groups of
people who share elements of the overall
culture, as well as cultural elements
unique to their own group. People’s
attitudes, values and purchase decisions
are similar within subcultures
- Political beliefs
- Religious beliefs
- Ethnic background - shared value
systems based on common life
experiences and situations Subcultures effect food preferences,
clothing choices, recreational pursuits,
- Demographic characteristics and even aspirations such as career goals
Elements of ‘sameness’ arise e.g.
hipsters, goths, punks
Buyer behaviour Cultural factors Swinburne
Audi ‘old luxury’ campaign; Audi
Social classes are relatively permanent and America chief marketing officer
ordered divisions in a society whose members says brand represents
share similar values, interests and behaviours "progressive luxury," while brands
like Mercedes-Benz and BMW are
• Usually determined by occupation, "old luxury.” >> Audi attempts to
income, education and wealth >> distinct “re-position” MB and BMW.
product and brand and media preferences
• For marketers, people within a class tend

to exhibit similar buying behaviour.
• In Australia, most people define

themselves as middle class
• Recent trends speak to the
disintegration or challenges to class
structures
• Eg. High salaries of blue collar jobs,
Rise of the ‘cashed up bogan’

Social factors People seek out the opinions of others to reduce search and
evaluation, reduce perceived risk, guidance on new products etc
• Reference groups are groups in society that influence an

individual’s purchasing behaviour
• Primary groups - close, personal, enduring relationships, fairly continuous
interactions
• Secondary groups - more formal and require less continuous and
personal interaction, temporary, based on interests and activities
- Aspirational groups those a person hopes to join
- Disassociative groups those whose values or behaviour
an individual rejects
• Reference groups influence members by:
- Serving as information sources and influencing perceptions
- Affecting aspiration levels
- Their
SCIENCE norms
| TECHNOLOGY either
| INNOVATION constrain
| BUSINESS | DESIGN or simulate consumer behaviour
Social factors
• Family is the most influential reference group, so
marketers strive to understand the role each play in
purchase decisions. The members of a person’s household are
most influential primary reference group
• Parents and siblings, Spouse and own children

Social factors
• Marketers must understand the role of family members in
purchase decisions
• Children influence their parents’ purchase decisions
through ‘pester power’
• Eg. confectionery at supermarket checkout at child eye
level
• While traditionally women were seen as the main
purchasers of household items, men are increasingly
adopting this role
• Eg. 2013 Heineken campaign plays on tension
between male-female household decisions
• Do you think men and women shop differently?
Are influenced differently?
Social factors
• Opinion leaders are people who influence the opinions of others.
• Where reference group influence is strong, marketers must

determine how to reach and influence the group’s opinion leaders
• Opinion Leaders are often highly confident, socially active, and

frequent users of the category
• Their special skills, knowledge, personality or other characteristics

exert influence on others
• Important due to the level of influence they hold, and their potential
as brand advocates, particularly in online environments.
• Bloggers with large followings are particularly appealing to
marketers as brand endorsers, due to their referential influence
over their followers.

Social factors
• Marketers try to identify the

personal characteristics of
opinion leaders for their
products, determine what
media they use and direct
messages at them.
• Hope to create buzz
marketing by getting
opinion leaders to spread
word about their product

Social factors
• Our position in the many groups we belong to can be defined in terms of
both role and status
• A role is the activities people are expected to perform according to those

around them
• Each role carries a status reflecting the general esteem given to it by
society
E.g. With her parents, a woman plays the
role of daughter; in her family, she plays
the role of wife and mother; in her
company, she plays the role of product
manager.
E.g. Role of the father as ‘caretaker’ in VW

Polo 2012 campaign
A father’s lifelong journey to keep his
daughter safe >> sending her away from
home to live-in at Uni in a safe car
Individual factors; What do you buy now that you didn’t buy in the past?
• Our taste in food, clothes, furniture, and recreation is often
related to our age
• Consumption is also shaped by the stage of the life cycle
empty nesters, young singles, young married with children.
• Marketers must consider critical life events or transitions as
giving rise to new needs; marriage, childbirth, first job,
retirement.

Individual factors
• Occupation and economic situation both influence

consumption patterns and product choices

Individual factors
• Personality refers to the unique characteristics
that lead to relatively consistent and lasting
responses to our environment
• Often understood in terms of traits – e.g. orderly,
adaptable or dominant
• Each person’s distinct personality influences his
or her buying behaviour.
• People buy brands reflecting their
personality traits
• Eg. someone with trait ‘need for
achievement’ may buy Mercedes car
• Self-concept is how consumers perceive
themselves > buy to support self-image (or an
idealised form of one’s self) > someone who sees
themselves as environmentally aware shops at
Body Shop
Individual factors
• Personality and self-concept are

reflected in Lifestyle; pattern of
living as expressed by one’s
activities, interests and opinions.
• People coming from the same

subculture, social class or
occupation might have quite
different lifestyles
• Consumers do not just buy

products- they are buying the
values and lifestyles they
represent; Red Bull is a brand
which has affiliated itself with
action and daredevil sport lifestyle.
Psychological factors Psychological factors are what consumers
use to interact with their world, so
A need becomes a motive when it Marketers often use these Psychological
is aroused to a sufficient level to factors to predict behaviour.
direct a person to satisfy it
Motivation is the driving force that

causes a person to take action to
satisfy specific needs
Freud contends that behaviour is

guided by subconscious
motivations. People do not fully
understand their motivations > so
less conscious cues such as
colour, shape and name, can affect
someone’s brand choice
Maslow argues that human needs

are arranged in a hierarchy. Satisfy
needs at |bottom
SCIENCE and| INNOVATION
TECHNOLOGY then move up.
| BUSINESS | DESIGN
Psychological factors – see “more about…” slides for
more information about Perception.
• Perception is the process by which people select,
organise and interpret stimuli into a meaningful and
coherent picture
- Selective exposure
- Selection distortion
- Selective retention
- Subliminal perception

Psychological factors
• Learning describes changes in an individual’s
behaviour arising from experience and practice
• Generally occurs on two levels
- Experiential learning – doing something
- Cognitive learning – thinking, working it out
• Reinforcement and repetition boost learning >>
Reinforcement; good experience with a brand.
Repetition; repeat jingle such as ‘Still call Australia
Home’ to reinforce learning Qantas is an Australian
airline
• Classical conditioning generates a conditioned

response
• E.g. Air Jordan – Michael Jordan is sporting
hero and wears Nike shoes > conditioned Nike
= sporting success > I wear Nike = I sporting
success
Psychological factors
• A belief is an organised pattern of
knowledge that an individual holds
true about their world. Consumers
develop set of beliefs about product attributes then
form an image of a brand/set of beliefs about it e.g.
Canon cameras have best image quality – Canon
make best cameras
• An attitude is a learned tendency

to respond consistently towards a
given object. An attitude puts people into a
frame of mind
• Leads them to behave consistently
• More enduring and complex than beliefs –
difficult to change
• Marketers find it easier to fit into/exploit existing
attitudes e.g. organic = good, healthy, natural,
more nutrients
Buyer Behaviour
“More about” slides follow for

those students interested in
more information about
particular topics
More about…………. Swinburne
Types of consumer buying decisions > Routine
• Frequently purchased low cost goods, e.g. bread
• Low involvement
• Normally consider one brand – automatic decision
• Don’t experience need recognition unless out of stock, habits change or
influenced by communications
• Related to brand loyalty

• Repeat purchase with a high level of commitment
• Related to inertia (it is called “Spurious Loyalty” – people always buy the same
brand (= behavioural loyalty) but they have no strong Attitudinal Loyalty (no strong
feelings towards the brand.)
• Consumers will Repeat purchase to minimize consumer effort
• Marketers of rival brands try to break ‘habit’ by promoting variety seeking

behaviour
• Sales promotion tools as incentives to switch brands
• Sales efforts to change shelf space (position)
• Routine (Continued)
• Marketers need to retain customers
• Distribution – product always on shelf
• Monitor competitive actions – price match
• Reminder ads to keep brand on the “top of mind”.
• Limited
• Consumers willing to put some effort into deciding the best way to satisfy a
need, e.g., deciding on a restaurant.
• Higher involvement than routine
• Simple evaluative criteria
• Normally make a decision in store

• Extensive is high risk, involvement and cost
• Put lots of effort in deciding how to satisfy it, e.g., buying a house, or a car.
• Unfamiliar, expensive or infrequently purchased item
• New or important need
• Consider a lot of brands through a lot of information sources
• Carefully evaluate each product alternative using complex evaluative criteria
• The Risk of cognitive dissonance (fear of being dissatisfied with their purchase)
is higher
• Decision making does not always remain constant

• E.g. First time parent buys nappies = High Involvement. Once satisfied with the
brand they have chosen they move to Limited and/or eventually to Routine for
their subsequent purchases

Psychological factors - Perception
• A motivated person is ready to act.
• How people act is influenced by their perception of the situation
• Each of us receives, organises and interprets sensory information in an

individual way
• Use short- and long-term memory in this process
• People form different perceptions of the same stimulus because of
three perceptual processes
• Selective exposure
• Consumer notices certain stimuli and ignores other stimuli
• Average person might be exposed to 1,500 ads a day
• Cannot pay attention to all, screen most out
• More likely to notice stimuli relating to current need (what interests
us)
SCIENCE• | Marketers work hard
TECHNOLOGY | INNOVATION to get
| BUSINESS attention – e.g shock tactics
| DESIGN
• Selective distortion
• Stimuli consumers do notice will not always come across in way
intended by marketers
• SD is tendency of people to interpret information in a way that fits
our preconceptions (personal meanings, what we believe)
• Marketers must try to understand how consumers interpret
marketing info, eg. red and yellow colours for hunger
• Selective retention
• People also forget much of what they learn.
• People remember only what they want to remember (info that
supports personal beliefs)
• Eg. good points about a product we like and forget good points
about competing products.
• Marketers must work hard to get their message through
• Subliminal perception
• Consumers worried affected by marketing messages without even
knowing it
• 1957 researcher James Vicary inserted the words “Eat popcorn”
and “Drink Coca-Cola” into a movie.
• Into a single frame long enough that human subconscious
could pick it up, but too short for viewer to be aware of it.
• These subliminal messages created an 18.1% increase in
Coke sales and a 57.8% increase in popcorn sales.
• But most further research supports little or no link between
subliminal messages and CB
• Coke and Camel examples
• Cues play a critical role in perception
• E.g chocolate bars wrapped in foil signal prestige
• E.g. shiny labels indicate cheaper wine
• E.g. price = quality

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Lecture 2

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MKT10007

Prepared by Dr Lauren Gurrieri

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

Lecture overview NEXT Week

• The marketing environment

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

• Consumer behavior is the study of how individuals,

• Marketers must fully understand both the theory and

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

The consumer market:

Also called the “consumer decision making process”

Source: Armstrong et al. 2012: 149

• When buying something, consumers follow a buying process

• Consumer typically passes through five steps

• Process starts long before actual purchase and has consequences

• Consumers don’t always pass through all five stages

Step 1; The buying process starts with Need recognition

• Occurs when a consumer is faced

Marketer provides external stimulus via TV ad

• The role of the marketer is to (1) understand the

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN 13

Step 2; Information search

• Consumers then search for information about the various

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

• If not, the consumer may store the need in memory and/or

• Though consumers receive the greatest amount of information

Step 2; Information search

• Extent of search depends on the perceived risk of

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

Step 2; Information search

- Factors influencing perceived risk are:

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

Step 3; Evaluation of alternatives

• No single process is used by consumers to choose among

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

Step 3; Evaluation of alternatives

Step 3; Evaluation of alternatives

Brands can impact choice

Step 3; Evaluation of alternatives

• Marketers can influence a

• More likely to influence

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN 26

• The purchase decision will involve

• The intensity of the other person’s 2. Unanticipated

• Dissonance is discomfort caused by “post-purchase conflict”

Step 5; Post-purchase behaviours

• Marketing can minimise this by reinforcing decision and

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

Post-purchase satisfaction. Satisfaction is a function of the

• A satisfied customer may buy again and

• A dissatisfied consumer may abandon or

• Summarised experiences of 12,000 Vodafone

Step 5; Post-purchase behaviours

Post-purchase uses and disposal.

Involvement – what is it and why is it important?

• Interest; If you are interested in electronics or cars > higher involvement.

Involvement – what is it and why is it important?

- Level of involvement in a purchase is determined by

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

Types of consumer buying decisions

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

-High or Low Involvement? Theatre Your product

-What risks? Right Back Take-away