Consumer Behavior

Definition of consumer behavior: it is the study of consumers and the processes they use to choose, use (consume), and dispose of products and services.
"All marketing decisions are based on assumptions and knowledge of consumer behavior," (Hawkins and Mothersbaugh, 2007). Quality + Price + Customer Service = Value and Satisfaction |

So what is meant by 'Quality?'
Quality ― is a product or service's ability to meet the customers' need or want.
Products
* Performance * Features * Reliability * Serviceability * Aesthetics * Perception
Services
* Responsiveness * Reliability * Assurance * Empathy * Tangibles
Why People Buy
Many factors are involved in a customers' buying decision, any one of which can become the deciding factor, such as: * Conspicuous consumption: Lavish spending for the purpose of displaying wealth or social status; preference for buying increases with price. * Snob effect: Desire to buy something nobody else has; preference for buying increases with rarity or scarcity. * Bandwagon effect: Desire to buy something everybody else is buying; preference for buying increases with perceived popularity. * Economic-To enhance their lifestyle or to fulfill two of Maslow's needs: physiological (food, shelter) and Safety and Security. * Psychological-This is the study of how people interact with their environment, products are consumed to enhance their well being, for example air fresheners, furniture and convection ovens.

Internal Influences
Learning
Learning is a change of behavior following an interaction between a person and their environment.
The Learning Process: * Exposure - the customer becomes aware of product, service or advertisement through at least one of their five senses (sight, smell, taste, touch, hearing). * Attention - the customer processes the stimulus. * Understanding - the customer interprets the information and acts on it either by purchasing the product or service, dismissing the information, seeking more information or remembering it for future information.

Memory
Memory refers to a consumer's ability to understand the marketing messages and assign them value and meaning.
Physical Characteristics of message * Imagery: When the brand name, words, and slogan work together to create an image in the mind of the consumer, it will invoke ideas, feelings and objects, and a direct recovery of past experiences. * Color: Colors have an enormous impact on marketing messages, and color affects consumers in a subjective manner. * Font: The presentation of words and how they are shaped will also enhance the marketing message and contribute to the value and meaning. * Simplicity of the message: A simple message is generally easier to understand. * Consistency of the message: The message needs to fit in with the surrounding information—style, color, text, photographs, music—all have to work together. * Source of the message: Consumers will be more likely to remember and purchase products endorsed by credible sources, animated characters or celebrities.
Characteristics of the message receiver (consumer) * Intelligence * Involvement * Familiarity * Expectations * Physical limits
Personality
Personality is defined as the thoughts, emotions, intentions and behavior that people express as they move through their environment.
The Five Factor Model Approach to personality identifies five core traits and how they manifest into behavior.

Other personality traits that translate into consumer behavior purchases: * Frugality * Impulsiveness * Anxiety * Bargaining * Vanity * Competence * Excitement * Ruggedness * Sincerity * Sophistication Lifestyle and Attitude
A. Lifestyle
Lifestyle is a way to segment people into groups based on three things: opinions, attitudes and activities. Lifestyle means the ways groups of consumers spend time and money.
B. Attitude
An attitude is an internal evaluation, expressed outwardly about a person, object or issue. There are three components of attitude - affect, behavior and cognition. This system sometimes called the ABC's of attitude. These three components work together to form a hierarchy of effects:

ELM Model
One theory about attitude change is the Elaboration Likelihood Model (ELM). This model shows how attitudes are changed based on the level of involvement in the purchase.
The central route: If the consumer is highly involved in the purchase, then they will put forth considerable effort toward understanding the marketing messages.
The peripheral route: If the consumer is not highly involved in the purchase, or lacks the motivation to process information, they are more likely to pay attention to the attractiveness of the people in the advertisement, images and music, which are all non-product related information.