Consumer Behaviour

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Consumer behaviour

The study of consumer behaviour is, in essence, the dissection of the human psyche as it pertains to acquisition, utilization, and disposal of goods and services. It’s not just about what people buy; it's about the convoluted dance of their emotions, attitudes, and deeply ingrained preferences that ultimately dictate their buying behaviour. And let's not forget the external nudges – the flashing lights, the catchy jingles, the feel of a fabric – all these stimuli play their part, shaping those responses in ways we sometimes don't even realize. This field, a relatively young sub-discipline of marketing that emerged in the mid-20th century, has blossomed into an interdisciplinary pursuit, drawing heavily from the wellsprings of psychology, sociology, social anthropology, and even economics, particularly its more nuanced, less rational cousin, behavioural economics.

At its core, consumer behaviour analysis aims to understand the intricate tapestry of individual characteristics – demographics, the elusive personality, the ever-shifting lifestyles, and the quantifiable variables like usage rates, occasion of use, brand loyalty, the fervent advocacy for a brand, and that coveted willingness to provide referrals. All of this is an attempt to unravel what people truly want and how they go about their consumption patterns. But it doesn't stop there. It also delves into the external forces that shape desire: the insidious influence of social groups – family, friends, sports fanatics, and those revered reference groups – and the broader societal currents that manifest as brand-influencers and opinion leaders.

Given the inherent unpredictability of human desires, marketers and researchers are forced to employ a diverse arsenal of tools. Ethnography, the deep dive into human culture, consumer neuroscience with its probing of the brain's responses, and the ever-expanding power of machine learning are all brought to bear. And of course, there are the customer relationship management (CRM) databases, vast repositories of data that allow for an almost obsessive examination of what keeps customers hooked, what makes them return, and what transforms them into vocal brand champions. These databases are also the bedrock of market segmentation, particularly behavioral segmentation, enabling the creation of marketing strategies so precise they feel almost invasive.

Origins of consumer behaviour

The genesis of consumer behaviour as a distinct field can be traced back to the mid-20th century. Prior to this, marketing was largely dominated by what's termed the "classical schools of thought." These approaches were predominantly descriptive, relying heavily on case studies and the occasional interview. However, by the late 1950s, a rather pointed critique emerged, highlighting marketing's lack of methodological rigor, particularly its reluctance to embrace the mathematically-oriented research methods of the behavioral sciences. This critique was the catalyst, paving the way for marketing to become more interdisciplinary and to adopt a consumer-centric perspective.

From the 1950s onwards, marketing began to shift its intellectual allegiance away from the staid principles of economics and towards the more dynamic realms of the behavioral sciences, including sociology, anthropology, and even clinical psychology. This influx of new perspectives ushered in a new era, one where the customer, not just the product, became the central unit of analysis. The discipline was enriched with groundbreaking concepts like opinion leadership, the influence of reference groups, and the elusive notion of brand loyalty. Market segmentation, particularly segmentation based on socioeconomic status (SES) and the household life-cycle, also gained significant traction. With the integration of consumer behavior, marketing began to exhibit a more sophisticated scientific approach, developing and testing theories with greater rigor.

In its nascent stages, consumer behavior was heavily influenced by motivation research, a field that had already begun to illuminate the hidden drivers of customer behavior. This research, prevalent in the advertising industry and within psychology during the 1920s, 30s, and 40s, provided a rich foundation. By the 1950s, marketing readily adopted techniques pioneered by motivation researchers, such as depth interviews, projective techniques, thematic apperception tests, and a broad spectrum of qualitative and quantitative research methods. More recently, the field has continued to evolve, embracing tools like ethnography, photo-elicitation techniques, and phenomenological interviewing. And the evolution doesn't stop there; contemporary research is plumbing even deeper, incorporating neuroimaging studies and the vast potential of big data analytics to uncover subconscious motivations and intricate decision-making processes. Today, consumer behaviour, or CB as it's colloquially known, is an indispensable sub-discipline within marketing, a staple in virtually every undergraduate marketing curriculum.

Definition and explanation

Consumer behaviour, in its most comprehensive definition, encompasses "all activities associated with the purchase, use and disposal of goods and services, including the consumer's emotional, mental and behavioural responses that precede or follow these activities." The term "consumer" itself is broad, extending beyond the individual purchaser to encompass organizational consumers and, more specifically, "an end user, and not necessarily a purchaser, in the distribution chain of a good or service." [8] The scope of consumer behaviour is vast, covering three primary areas: [9]

Purchase activities: This delves into how consumers acquire products and services, encompassing every step from information gathering and evaluation of options to the final payment methods and the overall purchase experience itself.
Use or consumption activities: This focuses on the "who, where, when, and how" of consumption, exploring the usage experience, the symbolic meanings attached to products, and how they are distributed within families or other consumption units.
Disposal activities: This examines how consumers part with products and their packaging, which can also include activities like reselling items on platforms such as eBay or in second-hand markets.

The responses observed within consumer behaviour can be categorized as: [10]

Emotional (or affective) responses: These relate to the consumer's feelings, emotions, and moods.
Mental (or cognitive) responses: These encompass the consumer's thought processes, their beliefs, and their understanding.
Behavioural (or conative) responses: These are the observable actions a consumer takes in relation to the purchase and disposal of goods and services.

As defined by the American Marketing Association, consumer behaviour is "the dynamic interaction of affect and cognition, behaviour, and environmental events by which human beings conduct the exchange aspects of their lives." In essence, it's an applied social science, utilizing principles derived from experimental research, often termed "behaviour principles," to interpret human economic consumption. It sits at the fascinating crossroads of economic psychology and marketing science. [11]

The purchase decision and its context

For marketers, understanding the nuances of purchase and consumption behaviour is not merely an academic exercise; it's a critical challenge. Consumer behaviour, in its broadest interpretation, is about comprehending not only the intricate process of making purchase decisions but also how products or services are ultimately consumed and experienced. Consumers are not passive recipients; they are active decision-makers. They choose what to buy, often constrained by their disposable income or budget, and their preferences are constantly in flux, influenced by a myriad of factors. [12] [13] [14]

Some purchasing decisions are elaborate affairs, involving extensive information searches and careful evaluation of numerous alternatives. [15] Others, however, are far more complex, often dictated by time constraints, a lack of knowledge, or limited negotiating power. [16] These might include impulse buys or habitual purchases, executed almost instantaneously with minimal cognitive effort.

Furthermore, purchase decisions are not always solitary endeavors. They can be made by groups, such as families or businesses, or by individuals acting alone. In group decisions, particularly within households, different members may play distinct roles at various stages of the decision process. One person might initiate the discussion about a product category, another might diligently research product information, while a third might be the one to physically make the purchase. The literature often categorizes these roles:

In the context of a family unit, the adult female frequently assumes the role of brand decision-maker for the entire household, while children can wield significant influence.

The Initiator: This is the individual who first proposes a particular brand or product for consideration.
The Influencer: This person offers recommendations or advice regarding a specific brand.
The Decider: This is the individual who ultimately makes the purchase decision.
The Purchaser: This is the person who places the order or physically buys the product.
The User: This is the individual who consumes or uses the product. [17]

It's important to note that for most purchase decisions, all these roles are fulfilled, but not necessarily by different individuals. Consider a family deciding on a dining-out venue: a parent might initiate the idea due to fatigue, children might exert significant influence, but both parents might act as joint deciders, filtering out unacceptable options and steering towards more palatable ones. The power of children as influencers in a wide array of purchase situations cannot be overstated; this phenomenon is often referred to as pester power. [18]

The purchasing decision model

To better understand the mental processes that underpin purchasing decisions, some scholars employ the concept of the black box. This metaphor represents the internal cognitive and affective processes a consumer undergoes during a purchase decision. The decision model situates this "black box" within a broader environmental context, illustrating the interplay of external and internal stimuli—such as consumer characteristics, situational factors, marketing influences, and broader environmental forces—and the resulting consumer responses. This model draws parallels with the black box theory of behaviourism, emphasizing not only the internal processes but also the relationship between stimuli and the consumer's reaction.

The decision model posits that purchase decisions are not made in a vacuum. They unfold in real time and are influenced by a confluence of stimuli, including interpersonal interactions, internal psychological states, environmental factors, and deliberate marketing efforts. [20] Marketing stimuli are the planned actions of companies, while environmental stimuli encompass broader societal, economic, political, and cultural forces. Crucially, the buyer's "black box" also contains individual buyer characteristics and the decision-making process itself, both of which significantly shape the buyer's responses.

Purchases of up-market perfumes, often bought as gifts, are considered high-involvement decisions because the gift itself symbolizes the relationship between the giver and the recipient.

Problem recognition

The initial phase of the purchase decision process is initiated by problem recognition, also known as need arousal or category need. This is the point where a consumer identifies a discrepancy between their current state and their desired or ideal state. In simpler terms, it's when the consumer realizes they are "in the market" for something to satisfy a need or want. The intensity of this underlying need is the driving force for the entire decision-making journey. [21]

Theorists typically categorize problem-solving situations relevant to purchase decisions into three broad classes: [22]

Extensive problem-solving: This applies to purchases that require significant deliberation, extensive information gathering, and careful evaluation of alternatives. These are usually high-value items or products with high social visibility, such as fashion items or automobiles.
Limited problem-solving: This applies to purchases that are familiar or have been made before, such as routine or straight re-buy situations. These are typically lower-priced items.
Routinised problem-solving: This describes repeat purchases or habitual buying behavior, where decisions are made with minimal conscious effort.

Consumers become aware of a problem through various triggers: [23]

The purchase of a mobile phone might spark the desire for accessories like this car mount.

Out-of-Stock/Natural Depletion: When a consumer runs out of a product and needs to replenish it, such as milk or bread.
Regular Purchase: When a consumer habitually buys a product on a regular basis, like a newspaper or magazine.
Dissatisfaction: When a consumer is unhappy with a current product or service.
New Needs or Wants: Changes in lifestyle can create new needs. For instance, the arrival of a baby necessitates the purchase of items like a cot, stroller, and car seat.
Related Products: The acquisition of one product can trigger the need for accessories, spare parts, or complementary goods. For example, buying a printer leads to the need for ink cartridges; purchasing a digital camera necessitates memory cards.
Marketer-induced problem recognition: When marketing efforts persuade consumers to recognize a problem they weren't previously aware of. The constant stream of content, both conscious and subconscious, from traditional and social media plays a significant role in stimulating this need recognition.
New Products or Categories: When consumers become aware of innovative products that offer superior solutions to their needs. Disruptive technologies, like the advent of wireless communication devices, can spur the demand for a host of new related products.

Information search

During the information search and evaluation stages, consumers engage in processes designed to identify a set of viable purchase alternatives. Initially, they conduct an internal search, scanning their memory for suitable brands. The "evoked set" is the small collection of brands—typically 3 to 5—that a consumer can recall from memory. [24] Consumers may then supplement this internal search with an external search, utilizing resources such as the internet, manufacturer websites, store visits, product reviews, and recommendations from peers. The widespread availability of information has significantly enhanced consumer awareness, allowing them to know what's available, its specific attributes, and its price point. [25]

Awareness of a brand doesn't automatically place it in the consideration set. Brands towards which a consumer holds negative beliefs form the "inept set" and are usually excluded. Indifferent feelings towards other brands place them in the "inert set." [26] As the purchase decision nears, consumers refine their mental list into a "consideration set" – the realistic purchase options. [27] This set represents the "small set of brands which a consumer pays close attention to when making a purchase decision." [28] Ultimately, this leads to a "choice set" of strong contenders for purchase. [29]

Specific brand names enter a consumer's consideration set based on how well they align with the consumer's purchasing objectives and their accessibility at the time of the decision. [30] Memorable brand names are, by implication, more accessible. Historically, advertising and promotion played a crucial role in ensuring a brand name was included in the consumer's evoked set, with repeated exposure driving top-of-mind brand awareness. However, the internet has democratized information access, allowing consumers to gather brand and product data from numerous platforms. The consideration set has thus gained even greater prominence, as consumers are no longer solely reliant on memory. This is the essence of marketing: "the process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return." [32] This definition underscores the exchange at the heart of marketing and the crucial "creation" of value. For marketers, this means disseminating relevant brand information widely across all forums where consumers seek product or brand information, both traditional and digital. Understanding the consumer's touchpoints is paramount.

Evaluation of alternatives

The evaluation of alternatives can be viewed as a distinct stage in the decision process, or it may occur continuously throughout. Consumers assess alternatives based on both functional (utilitarian) and psycho-social (value-expressive or symbolic) benefits. [33]

Functional benefits are the tangible outcomes a consumer experiences, such as taste or appearance.
Psycho-social benefits are more abstract, relating to a brand's personality – for example, the social currency gained from wearing a designer label or driving a prestigious car.

Brand image, or brand personality, is a significant psycho-social attribute. Consumers may hold both positive and negative beliefs about a brand. [34] Research indicates that consumers often gravitate towards brands whose personality mirrors their own, which can influence brand preference, choice, satisfaction, loyalty, and the likelihood of positive word-of-mouth referrals. [ citation needed ] The study of this brand-consumer personality congruence is known as self-congruity research. [35] A brand's social media presence plays a substantial role in this stage, fostering a two-way communication channel where consumers can express their views. [36] Consumer beliefs about brands are shaped by prior experiences and perceptual filters like selective perception, distortion, and retention. Less knowledgeable consumers tend to focus on functional attributes, while more experienced consumers process more abstract, self-related information. [37]

Marketers must understand which benefits consumers value most and, consequently, which attributes are critical to their purchase decisions. Monitoring competing brands within the consumer's consideration set is also essential for strategic planning. During evaluation, consumers rank or assess the relative merits of available options. No single evaluation process applies universally; criteria vary based on the unique buying situation. [38] Social media further facilitates peer-to-peer evaluation, allowing consumers to gauge the pros and cons of alternatives more easily. [39] Thus, the attributes considered important differ across consumers and contexts. For instance, restaurant evaluation might involve food quality, price, location, ambiance, service, and menu selection, with individual priorities varying based on geographic, demographic, psychographic, and behavioral characteristics. Consumers seeking a fine dining experience might travel further than those looking for a quick, utilitarian meal. After weighing these attributes, consumers assign importance scores, leading to a subjective assessment and a ranked list of products or brands. [40] [41]

Purchase decision

Once alternatives are evaluated, the consumer solidifies their intention to purchase. This "purchase intent" is a strong, though imperfect, predictor of sales. [42] If purchase intentions don't translate into actual sales, it signals a marketing problem. For example, a consumer may want to buy a new product but be unaware of where to find it, thus preventing the purchase. The "sales conversion rate" measures the extent to which purchase intentions result in actual sales. [43]

Happy hour promotions, like "two for the price of one," serve as potent calls-to-action, encouraging immediate purchase.

Organizations employ various strategies to enhance conversion rates. Easy credit terms, sales promotions (e.g., premiums, contests), and advertising with strong calls-to-action can incentivize immediate purchase. [44] A call-to-action is any device designed to prompt an immediate sale, often using imperative verbs like "Buy now!" or "Don't wait!". Limited-time offers and special deals also create urgency. [45] Service convenience, minimizing customer effort, is another crucial factor. [46] The key to an effective call-to-action is providing compelling reasons for prompt purchase.

As consumers approach the final purchase decision, they increasingly rely on personal sources of information. [47] Therefore, sales representatives must be adept at making persuasive pitches and closing sales. Tactics like "social evidence" (referencing satisfied customers) and "scarcity attraction" (highlighting limited availability) can expedite decisions. [48]

Post-purchase evaluation

Following the purchase and consumption of a product or service, the consumer enters the post-purchase evaluation stage. This stage provides critical feedback to marketers, influencing future purchase patterns and consumption activities. [49] [50]

Here, consumers compare the product's features—price, functionality, quality—against their initial expectations. [51] This evaluation process, where expectations are correlated with perceived value, directly impacts future purchase decisions. [52] A positive post-purchase evaluation encourages repeat purchases of the same brand or from the same company, known as "post-purchase intention." [53] Conversely, dissatisfaction may lead to actions like seeking refunds, lodging complaints, avoiding the brand in the future, or sharing negative reviews with others, often via social media.

Consumers may experience post-decision dissonance, or cognitive dissonance, a feeling of anxiety or unease about whether the correct purchase decision was made. [54] This can affect subsequent behavior, including repeat patronage and customer loyalty.

To mitigate post-purchase dissonance, consumers often seek validation from peers or significant others, a trend amplified by social media likes, reviews, and testimonials. Marketing communications can also reinforce the wisdom of the purchase choice. [56]

If consumers find the chosen option inferior to forgone alternatives, they may experience regret or buyer's remorse. Short-term regret can dissipate over time, and through experience, consumers engage in hypothesis testing, forming and refining hypotheses about products and services. This process involves hypothesis generation, evidence exposure, encoding, and integration.

Influences on purchase decision

Purchasing behaviour is a complex interplay of internal and external factors.

Consumer awareness

Consumer awareness refers to the degree to which consumers are conscious of their consumption patterns and the products available in the long-term shopping environment. [57]

Changes in an individual's life concept, driven by rising living standards and evolving incomes, directly impact their awareness and consumption habits. [58] Differences in personality and internal motivations are also key drivers of changing consumer awareness.

Intensified market competition acts as a catalyst for this change. As companies launch numerous branded products, consumer brand awareness matures, and brand preference becomes a significant factor. [59] This competitive landscape compels companies to prioritize market research and understand consumer psychology to enhance market share and brand loyalty. [60]

Shifting life concepts have also led to a rise in rational consumption psychology. Social marketing, customized marketing, brand-name shopping, and a heightened sensitivity to price all play crucial roles in understanding consumer attitudes and predicting market demand responses. [61] [62] [63] [64]

Internal influences on purchase decision

Internal influences encompass both personal and interpersonal factors. Social theory posits that individuals possess both a personal identity and a social identity. Personal identity is defined by unique characteristics like skills, interests, and hobbies, while social identity relates to an individual's perception of the groups they belong to – age groups, lifestyle affiliations, religious communities, educational circles, and other reference groups. The fundamental human need to belong, as established by social psychologists, significantly shapes purchasing behavior. [65] Consequently, a broad range of internal factors influence purchase decisions, including psychological, socio-economic, demographic, and personality traits. Demographic factors include income level, psychographics (lifestyles), age, occupation, and socioeconomic status. Personality factors encompass knowledge, attitudes, personal values, beliefs, emotions, and feelings. Psychological factors include an individual's motivation, attitudes, personal values, and beliefs. Social identity factors involve culture, sub-culture, and reference groups. External factors, such as the environment and prior consumer experience, also play a role.

Motivations and emotions

A consumer's underlying motivation is the primary driver of their actions, including information search and purchase decisions. A consumer's attitude towards a brand, or brand preference, is seen as a link between the brand and a purchase motivation. [66] These motivations can be negative (driven by a desire to avoid pain) or positive (seeking a reward, such as sensory gratification). [67]

Abraham Maslow's hierarchy of needs offers a framework for understanding motivations, proposing that individuals prioritize satisfying basic needs (food, shelter) before higher-order needs become significant. Maslow's five levels are: [56]

Physiological: Basic needs like food, water, and sleep.
Safety: The need for physical security, shelter, and protection.
Belonging: The need for love, friendship, and social acceptance.
Esteem: The need for status, recognition, and self-respect.
Self-actualisation: The desire for personal growth and fulfillment.

Physiological and safety needs are considered "lower-order" needs. Consumers typically expend most of their resources (time, energy, finances) on fulfilling these before higher-order needs become salient. Marketing efforts must understand which motives drive particular product choices and illustrate how products or brands satisfy these needs. [59] While Maslow's model is a valuable general framework for human motivation, it's not specific to purchasing decisions.

A decision to buy an analgesic, for example, is driven by the motivation to alleviate pain (negative motivation). Conversely, purchasing an ice-cream sundae is motivated by the pursuit of sensory gratification (positive motivation).

Another perspective proposes eight purchase motivations—five negative and three positive—that energize purchase decisions. [67] These motivations are believed to provide either positive or negative reinforcement. [68]

Motivation	Emotional Sequence
NEGATIVE
Problem removal	Annoyance → Relief
Problem avoidance	Fear → Relaxation
Incomplete satisfaction	Disappointment → Optimism
Mixed approach avoidance	Conflict → Peace-of-mind
Normal depletion	Mild annoyance → Convenience
POSITIVE
Sensory gratification	Dull (or neutral) → Sensory anticipation
Intellectual simulation	Bored (or neutral) → Excited
Social approval/conformity	Apprehensive (or ashamed) → Flattered/proud

In marketing literature, the consumer's motivation to seek information and engage in the purchase decision process is often referred to as "involvement." [69] Consumer involvement is defined as "the personal relevance or importance of a message [or a decision]." [70] Purchase decisions are classified as "low involvement" when the perceived psycho-social loss from a poor decision is minimal. Conversely, "high involvement" decisions carry significant perceived psycho-social risks. [71] The level of consumer involvement is influenced by factors such as perceived risk, social visibility of the product, and prior experience with the product category. [72]

Perception

A crucial aspect of marketing strategy involves understanding how consumers acquire and process information from external sources. Perception is the process through which individuals receive, organize, and interpret information to assign meaning. It involves three stages: sensing information, selecting information, and interpreting information. Sensation, the immediate response to sensory input, plays a role in how consumers react to brands, advertising, and packaging. Perception is a uniquely individual process, influenced by a combination of internal factors (experiences, expectations, needs) and external cues.

When exposed to a stimulus, consumers may react differently due to their individual perceptual processes. [56] Several processes can either enhance or interfere with perception: selective exposure (consumers choosing what information to engage with), selective attention (focusing on some messages while ignoring others), selective comprehension (interpreting information to align with existing beliefs), and selective retention (remembering some information while forgetting other parts). [73] Collectively, these processes lead consumers to favor certain messages. The way consumers integrate information to make purchase decisions is termed integration. [74]

Marketers are keenly interested in consumer perceptions of brands, packaging, product formulations, labeling, and pricing. Of particular interest is the "just noticeable difference" in stimuli – how much must a price be lowered before consumers recognize it as a bargain? [75] Furthermore, marketers venturing into global markets must be cognizant of cultural differences in perception. For instance, while white symbolizes purity in Western cultures, it signifies mourning in many Eastern cultures, making white packaging inappropriate for certain products in Asia. [76]

Symbolic Consumer Behaviour

Symbolic consumption represents an internal influence on consumer behaviour, imbued with special meaning. Consumption symbols can signify group membership or individual uniqueness. [77] Consumer behaviour extends beyond mere material and psychological consumption.

Symbolic consumption has two primary meanings:

A symbol of consumption: Products are used to express and communicate meaning. Cultural meanings allow us to use products to symbolize membership in social groups, making symbolic consumption a process of social expression and communication.
Symbolic consumption: Consumers purchase not only the product itself but also the cultural and social significance it represents, including mood, beauty, status, atmosphere, style, and emotional appeal. This is particularly evident in brand consumption. Brands offer consumers functional value, symbolic value, and experiential value. Luxury brands, for instance, transcend their functional utility by conveying identity. While historically associated with aristocracy, luxury goods now serve as aspirational symbols for consumers seeking to project an image of status, wealth, and success, thus shaping and maintaining their self-concept. [79]

Prior experience

A consumer's prior experience with a product category or brand significantly influences their purchase decisions. Experienced consumers, or "experts," are more adept at information gathering, consult a wider range of sources, and employ sophisticated heuristics for evaluating options. Novice consumers, conversely, are less efficient searchers and perceive higher purchase risks due to unfamiliarity. Prior experience reduces the motivation for extensive information search, though it enhances the efficiency of processing new information. [80] Research suggests that increased consumer experience leads to a broader consideration set at the product category level. [81]

Random factor

Random factors, such as unexpected occasions or unforeseen circumstances, can influence consumer purchase decisions. These factors may either delay or expedite the decision-making process. Studies have indicated that even seemingly minor physical cues in waiting environments, like queue guidelines or floor mats, can act as virtual boundaries, altering consumers' initial decisions. [82]

External influences on purchase decision

Purchasing behavior is also shaped by external influences, including culture, sub-culture, social class, reference groups, family, and situational determinants.

Culture

Culture, the broadest external factor, encompasses the learned meanings, values, norms, and customs shared by members of a society. Cultural norms are relatively stable, exerting a profound influence on consumer behaviour, affecting everything from basic psychological processes like self-identity and motivation to information processing and the interpretation of advertising messages. [83] Perceived value and happiness also play critical roles in shaping consumer attitudes and behavioral intentions. [84]

The cultural context of consumption behavior is dictated by the overall social and cultural atmosphere, as well as the consumer's internal artistic quality, aesthetic pursuits, and cultural values. For instance, societal criticism of ostentatious displays of wealth reflects the influence of vulgar culture. Internal factors represent the consumer's spiritual realm and values, as expressed through their consumption choices.

Marketers aiming for global expansion must understand cross-cultural differences. Ferrari, for example, discovered that Chinese consumers' desire for immediate gratification differed from Western consumers' patience for custom-made vehicles. To meet this demand, Ferrari and other luxury brands have had to adapt their production processes for Asian markets. [85]

Subcultures

Subcultures can be based on age, geography, religion, race, or ethnicity. More commonly, however, subcultures form when individuals with shared interests coalesce into distinct groups, sometimes referred to as consumer tribes. Membership is often self-selected, signaled through symbols, rituals, or behaviors understood by the group (e.g., dress codes, speech patterns). Examples within youth culture include skaters, surfers, and punks, who create a sense of belonging.

Consumption subcultures are defined by a shared commitment to a particular brand or product, transcending demographic and geographic boundaries. The Harley-Davidson motorcycle owners' group is a prime example. [86] Harley-Davidson has capitalized on this subculture by establishing the Harley Owners Group (HOG). [87]

Members of the 'Goth' subculture share a distinctive dress code.

Subcultures are significant for marketers for several reasons. They represent potentially profitable market segments, and new trends often emerge from within these groups, making them valuable for trend-spotting.

Social class

Social class refers to relatively homogeneous societal divisions, typically based on socioeconomic factors like education, income, and occupation. Defining and measuring social class can be complex, but marketers often use conventional quintile classifications. [88] Higher socioeconomic groups often control a disproportionate share of discretionary spending, making them prime targets for luxury goods and services. Conversely, middle-class consumers tend to be more price-conscious and engage in more comparative shopping, while lower-class consumers may purchase more impulsively. [89]

Reference groups

A reference group is "a group whose presumed perspectives or values are being used by an individual as the basis for his or her judgment, opinions, and actions." [59] Group influence and socialization processes are key to understanding how individuals acquire value systems.

The family, a primary reference group, exerts a strong influence on attitudes and behaviors.

The literature identifies five types of reference groups: primary, secondary, aspirational, dissociative, and formal.

Primary groups: Such as family, exert a strong influence on attitudes and behaviors.
Secondary groups: Clubs, societies, or sports teams align with a person's values but have a less fundamental influence.
Aspirational groups: Individuals aspire to belong to these groups due to admired characteristics.
Dissociative reference groups: Individuals distance themselves from these groups due to negative associations with their values or behaviors. [55]

Opinion Leaders, also known as influencers, mavens, or hubs, exert considerable social influence due to their expertise and credibility within specific product categories. [90] Journalists, celebrities, and bloggers are common examples. Identifying opinion leaders for marketing strategies can be challenging, often requiring techniques like key informant identification or socio-metric analysis. Marketers may also rely on intuition, providing free products to instructors or editors in hopes of influencing consumer choices.

Influences on consumer purchasing behaviours during the COVID-19 pandemic

The COVID-19 pandemic significantly altered consumer purchasing behaviors, leading to increased instances of compulsive buying, impulsive buying, panic buying, and revenge buying, often as coping mechanisms for negative emotions. [93] [94]

Panic buying, characterized by excessive purchases due to fear and uncertainty, surged globally for necessities like food and hygiene products. [95] [96] In Australia, for example, toilet paper sales saw an unprecedented spike. [97] This behavior, driven by an irrational fear of scarcity, provided a sense of control amidst broader uncertainty. [96]

Revenge buying, particularly observed in luxury retail stores upon reopening after lockdowns, became another prominent phenomenon. [94] One Hermes store in Guangzhou, China, reportedly made US$2.7 million in sales on its first day back. [98] Luxury purchases, often associated with positive emotions, served as an emotional release and a means to compensate for negative feelings during the pandemic, fulfilling needs for belonging, esteem, and self-actualization. [100] [101] These purchases provided sensory gratification and problem avoidance. [94]

Consumers sought internal happiness through consumption as a response to external crises and social distancing measures. Both panic and revenge buying were compensatory and therapeutic, an attempt to regain control and enhance well-being. [94]

The pandemic also accelerated online shopping, with increased spending on sportswear and technology products related to remote work. [103] Furthermore, heightened environmental awareness spurred a preference for sustainable products, even at higher costs, and encouraged brands to adopt sustainable marketing practices. [104]

The pandemic also led to channel migration, with consumers becoming more open to trying new brands online and adapting to online purchasing for daily needs. [103]

Consumer decision styles

Theorists suggest that consumers exhibit distinct decision-making styles, defined as "a mental orientation characterising a consumer's approach to making choices." [107] Sproles and Kendall identified eight factors, including price sensitivity, quality consciousness, and brand consciousness, leading to a typology of eight decision-making styles: [108]

Quality conscious/Perfectionist: Prioritizes the highest quality products, engaging in systematic comparisons.
Brand-conscious: Prefers expensive, well-known brands, often believing higher prices indicate superior quality. Brand consciousness signifies an awareness of a brand's distinctiveness and its competitive advantage.
Recreation-conscious/Hedonistic: Views shopping as an enjoyable activity.
Price-conscious: Focuses on price and value, seeking lower prices and discounts.
Novelty/fashion-conscious: Seeks new products and experiences, staying current with trends.
Impulsive: Makes spontaneous purchases with little concern for expenditure or value.
Confused (by over-choice): Feels overwhelmed by too many product choices, stores, or information overload.
Habitual/brand loyal: Follows routine purchase patterns, sticking to favorite brands or stores.

The Consumer Styles Inventory (CSI) has been widely validated across various countries and contexts, revealing cross-cultural variations and adaptations. [109] [110] These styles are valuable for marketers due to their relative stability over time, aiding in market segmentation. [111]

Other topics in consumer behaviour

Beyond the purchase decision itself, marketers are interested in various aspects of consumer behavior, including risk perception and reduction, brand switching, channel switching, brand loyalty, customer citizenship behaviors, and post-purchase intentions and behaviors like brand advocacy.

Risk perception and risk reduction activities

Consumers' perceptions of risk are crucial in the pre-purchase stage. Perceived risk is defined as "the consumer's perceptions of the uncertainty and adverse consequences of engaging in an activity." [112] It comprises two dimensions: the importance or severity of an outcome (consequences) and the subjective likelihood of its occurrence (uncertainty). [113] For instance, fear of flying stems from the low probability but high consequence of an airline accident.

Marketers often facilitate trial to mitigate risk perceptions.

The literature identifies five primary types of risk: [114]

Financial Risk: Potential financial loss from a poor decision.
Performance Risk (Functional Risk): The possibility that a product or service will not function as expected.
Physical Risk: Potential for physical harm if something goes wrong.
Social Risk: Potential loss of social status associated with a purchase.
Psychological Risk: Potential for a purchase to negatively impact self-esteem.

If consumers perceive a purchase as risky, they employ strategies to reduce this risk or withdraw from the purchase altogether. [115] Perceived risk drives information search activities.

Services marketers note that risk perception is often higher for services due to their lack of tangible "search attributes." [116] Products are categorized based on evaluation ease: search goods (tangible attributes evaluated before purchase), experience goods (evaluated after purchase, like restaurants), and credence goods (quality difficult to assess even after consumption, like professional services). [117] For credence goods, consumer trust in the provider is paramount. [118]

Typical risk-reduction strategies include: [119] [120]

Prospective purchasers meticulously inspect expensive gold jewelry before buying.

Advertising and Promotional Messages: Paying close attention to marketing communications.
Shopping Around: Comparing offers and inspecting merchandise.
Buying Known Brands: Relying on reputable brands as indicators of quality.
Buying from Reputable Stores: Trusting established retailers.
Product Reviews: Consulting independent expert reviews.
Online Reviews/Testimonials: Reading about other consumers' experiences.
Sampling or Limited Trial: Obtaining samples or test-driving products.
Manufacturer Specifications: Reviewing provided product information.
Referrals: Seeking recommendations from friends or relatives.
Sales Representatives: Consulting with sales staff.
Product Guarantees: Looking for warranties or formal guarantees.

New product adoption and diffusion of innovations

The study of how new products, services, ideas, or technologies spread through groups is a key area in consumer behavior. Understanding diffusion patterns can help marketers accelerate adoption and refine marketing programs. Diffusion models also provide benchmarks for tracking new product introductions. [121]

Diffusion research typically falls into two categories: general diffusion research, exploring the overall process, and applied diffusion research, examining specific product diffusion in particular contexts. [122] A common pattern emerges: initial adoption by a few, followed by successive waves of adoption, leading to an S-shaped adoption curve. [123] The speed and shape of this curve vary significantly across product markets.

Everett Rogers' diffusion model segments consumers into five adopter categories based on their adoption rate: [124]

Innovators (2.5%): Venturesome, risk-tolerant, early adopters of new ideas.
Early adopters (13.5%): Respected opinion leaders, influential in their social communities.
Early majority (34%): Adopt innovations slightly ahead of the average, deliberate decision-makers.
Late majority (34%): Skeptical, adopt in response to social pressure.
Laggards (16%): Traditionalists, resistant to change, last to adopt.

Factors influencing diffusion rate include relative advantage, compatibility, complexity, trialability, and observability of the innovation. [127] Innovations possessing these characteristics tend to diffuse more rapidly. Marketers can facilitate adoption by emphasizing relative benefits, compatibility, and observability, and by offering trial opportunities. [120]

The diffusion rate for many new technologies is accelerating, as evidenced by the rapid penetration of mobile phones compared to telephones. [128] [129] This acceleration is attributed to factors like reduced barriers to entry, lower innovation costs, and consumers' high valuation of convenience. [130] [131] [132]

Brand-switching

Brand-switching occurs when consumers choose a different brand than their usual one, often due to unavailability, a desire for variety, or competitive offers. In the fast-moving consumer goods (FMCG) market, switching is common, and marketers target brand-switchers actively. Rossiter and Bellman categorize consumers based on loyalty/switching behavior: [133]

Brand Loyals: Consistently purchase their preferred brand.
Favorable Brand Switchers: Exhibit moderate preference and can be enticed to switch.
Other Brand Switchers: Typically buy competing brands, possibly due to unawareness or negative experiences.
New Category Users: Unaware of a category but possess potential to become users.

Price is a major driver of brand switching globally, though quality also plays a significant role, with regional variations observed. [134]

Switching costs—monetary, psychological, or effort-related—influence brand switching. Lower switching costs, common in FMCG, lead to higher switching rates. [ citation needed ] Switching between platforms like Android and Apple, for instance, involves significant data migration and learning new routines.

The halo effect, where a product is viewed positively due to overall brand perception, marketing messaging, or packaging, can prevent brand switching. [135] Similarly, terms like "Ecological" or "Organic" on food packaging create a halo effect regarding quality and healthiness. [136]

Channel-switching

Channel-switching involves consumers shifting to different purchasing environments, such as moving from brick-and-mortar stores to online platforms. [137] Convenience is a primary driver, allowing consumers to shop anytime, anywhere. Online-only deals and discounts further encourage this shift. Globalisation, the rise of "category killers" like Officeworks, and regulatory changes also contribute. For example, in Australia and New Zealand, supermarkets have increasingly gained market share for therapeutic goods previously sold by pharmacies. [138]

While channel switching offers consumers a more diverse shopping experience, it poses a threat to market share for traditional retailers. [139] Retailers often mitigate this by adopting multi-channel strategies. [140]

Impulse buying

According to Hawkins Stern's 1962 research, impulse purchases fall into four categories: pure impulse, reminded impulse, suggestion impulse, and planned impulse. [141] Pure impulse buying is a strong, unplanned desire for a product. Reminded impulse buying occurs when seeing a product triggers a remembered need. Suggestion impulse buying happens when a consumer encounters an unknown product and envisions a use for it. Planned impulse buying involves a change in purchasing plans while shopping. [48] [142]

Large family-sized cakes are more likely to be planned purchases, while individual portions are more prone to impulse buys.

Nielsen International's 2013 research indicates that about 72% of FMCG purchases are planned, with 28% being unplanned or impulse buys. Top impulse food purchases include candy, chocolate, and cookies, while non-food impulse buys often involve cosmetics and personal care items. [143] This explains why these products are strategically placed near store entrances or checkout areas. Retailers leverage these insights to optimize store layouts for impulse purchases.

Subtle tactile cues, such as mobile phone vibrations, may reinforce impulse buying in digital environments, acting as secondary reinforcers that increase spontaneous purchases. [144]

Affect: Emotions, feelings and mood

A consumer's affective state significantly influences information search, evaluation of alternatives, product choice, service encounters, complaining behavior, and responses to advertising. Affect, defined as "a class of mental phenomena uniquely characterised by a consciously experienced, subjective feeling state, commonly accompanying emotions and moods," plays a crucial role in shaping attitudes and decision-making. [145] [146]

Distinguishing between affect, emotions, feelings, and mood can be challenging, with researchers often using these terms interchangeably. [147] However, the role of emotions in consumer behavior remains an under-researched area requiring further theoretical and empirical attention. [148]

Information search

Individuals in a positive mood tend to be more efficient information processors, capable of integrating information and finding creative solutions. They are generally quicker to make decisions and easier to please, evaluating information more positively. [149] For online environments, website design that prioritizes ease of navigation is crucial to avoid customer frustration and negative brand evaluations.

Choice

Affective states can heavily influence impulse-buying decisions. Consumers tend to place greater weight on immediate affective rewards and punishments, while future rewards receive less consideration. [150] The immediate pleasure of a sweet treat often outweighs the long-term benefits of healthier options because the immediate emotional gain is a stronger, more visual driver.

Customer experience

Customers in a negative mood are more demanding, process information slowly, and are more prone to complaining.

Customer satisfaction

The relationship between affect and customer satisfaction is well-established, particularly in service marketing. [151] Research suggests affect can be both a precursor and an outcome of satisfaction, with emotions experienced during consumption leaving affective traces in memory that influence satisfaction assessments. [152]

Meta-analyses show strong positive relationships between customer satisfaction and repurchase intent/loyalty. [153] Both cognitive and hedonic factors significantly impact brand perceptions, loyalty, and trust. [154] Brand personality, particularly sincerity and competence, strongly influences brand success metrics. [155]

Advertising

Emotion plays a vital role in advertising. "Thinking ads" appeal to cognitive processing (central route), while "feeling ads" engage emotions (peripheral route). [156] Advertisers can bypass rational processing by appealing directly to emotions. Neuroimaging studies suggest consumers rely heavily on emotions and past experiences when evaluating brands. [157] Emotional responses require fewer cognitive resources, lead to more enduring brand associations, and shape attitudes toward the brand and advertisement. [158] [159]

Customer loyalty

Customer loyalty is defined by both a relative attitude and repeat patronage. [160] Dick and Basu proposed four loyalty types:

No Loyalty: Low attitude, low patronage.
Spurious Loyalty: Low attitude, high patronage (due to convenience, lack of alternatives, or high switching costs).
Latent Loyalty: High attitude, low patronage (situational factors override attitude).
Loyalty (True Loyalty): High attitude, high patronage.

Loyalty marketing programs recognize that acquiring new customers is significantly more expensive than retaining existing ones. [161] Reward programs offer points redeemable for goods/services, while recognition programs grant special privileges or status. [162] [163] Hybrid programs combine both. Loyalty marketing also involves sophisticated database analysis to segment and manage customer loyalty.

Customer citizenship behaviour

Customer citizenship behaviour refers to voluntary actions customers take for brands out of loyalty. [165] Seven types are identified: voice (complaining to rectify issues), display of affiliation, policing (monitoring other customers), flexibility, service improvement suggestions, word-of-mouth referrals, and benevolent acts. [166]

Internet consumer behaviour

Traditional consumer behavior models developed in the 1960s and 70s may not fully capture online behavior, which requires new theoretical frameworks. [169] Post-COVID-19, online shopping has become increasingly essential. [170]

Online shoppers derive satisfaction from website navigation and the convenience of price comparison, driven by utilitarian factors, whereas offline shoppers focus on the physical store environment (hedonic motivations). [171]

Different types of online behaviour

Consumers use online platforms for various stages of the purchase process: information acquisition, actual purchase, and post-purchase engagement (e.g., joining brand communities, posting reviews). [172] Lewis and Lewis identified five online behavioral segments:

Directed Information-Seekers: Primarily seek information online, with no guarantee of conversion.
Undirected Information-Seekers: Newcomers to a product/service, more likely to interact with online prompts.
Directed Buyers: Intend to purchase a specific product/service online.
Bargain Hunters: Price-sensitive, attracted by sales and discounts.
Entertainment Seekers: Attracted to marketing delivered as entertainment.

A typology of online consumer behaviour

Wendy Moe proposed that online consumer behavior can be predicted by analyzing click patterns and visit frequency. [173] E-consultancy identified three categories: "trackers" (seeking specific products), "hunters" (seeking within product categories), and "explorers" (browsing without specific intent). [174]

Influence of the Internet on buying process

The internet significantly impacts the buying process by facilitating communication and marketing efforts at each stage, from generating awareness to supporting post-purchase engagement. [175] For instance, online retailers like JD.com and Taobao leverage detailed product comparisons, secure payment options, and efficient delivery to capture consumer interest and facilitate purchases.

The role of aesthetics and visual fluency in relation to consumer choice

Consumers often decide their liking for a product within 90 seconds of first viewing it. [176] Aesthetically pleasing products are crucial in the marketplace. Research indicates that people prefer visual displays that are easier to process and understand – a phenomenon known as visual fluency. [177] When a product's design aligns with a consumer's pre-existing associations, it appears more attractive and familiar. [177] Visual cues like color, composition, typography, and imagery contribute to this fluency.

Colour

Color psychology reveals that 62-90% of consumer product assessment is based on color alone. [176] Colors like blue and black are perceived as reliable and expensive, while yellow, orange, and brown are associated with affordability and lower quality. [179] This association can be leveraged; for example, a brand aiming for an economical image might use yellow. Color can also communicate brand personality. [180]

Composition

Composition affects information processing and consumer perceptions. In Western cultures, right-aligned or right-positioned products are often perceived as higher quality. [181] Centered or symmetrical compositions are generally found more pleasing, appearing more attractive and important due to their ease of processing and interpretation. [181] [182] [183]

Imagery

Pictorial imagery enhances consumer recall and recognition, capturing attention more effectively. [184] Consumers tend to view objects more positively when surrounded by congruent imagery. [183] Familiar imagery becomes part of a consumer's visual lexicon, increasing visual fluency and making products appear more familiar, likeable, and friendly. [185]

Typographic elements

While imagery is processed more easily, typography is essential. Handwritten fonts convey individuality and luxury, while sans-serif fonts suggest energy and modernity. [186] Font size and weight can also influence perceptions, with larger sizes perceived as more authoritative. [187]

Environmental impact

Consumer behavior significantly influences environmental impact, from material consumption and recycling to pollution and carbon footprint. Green marketing targets environmentally conscious consumers. However, one study found no impact of green marketing on consumer behavior in Bangladesh, suggesting policies that reduce the cost of eco-friendly products and raise awareness are needed. [ citation needed ]

Psychological factors, such as the "better-than-average" bias, can lead consumers to perceive their pro-environmental efforts as superior, potentially reducing their sense of personal responsibility and hindering green behaviors. [188] This cognitive defense mechanism may stem from guilt and concern related to climate change information. [188]

Research methods used

Researchers employ standard market research methods like surveys, depth interviews, and focus groups to understand consumer behavior. Increasingly, newer methodologies like ethnographic research and neuroscience, along with experimental designs, are used for deeper insights. Disciplines like behavioural economics also contribute valuable perspectives.

Ethnographic research

Originating in anthropology, ethnographic research allows marketers to study consumers within their cultural contexts, examining lifestyle factors, attitudes, and the influence of social context on product selection and usage. This "participant observation" occurs in natural settings. [189] Methods include:

Observed product usage: Observing consumers using products at home or work to understand packaging, labeling, and usage patterns.
Day-in-the-life studies: Extended observations to grasp consumer norms and expectations.
Accompanied purchase/shop-alongs: Researchers accompany shoppers to observe responses to merchandising.
Cultural studies: In-depth immersion to understand fundamental behavioral rules.
Guerilla ethnography: Random observations in public spaces for quick insights.
Mystery shopping: Observing customer service experiences.
Multiple methodologies: Combining ethnographic research with conventional techniques.

Trendspotters like Faith Popcorn extensively use ethnography to identify emergent trends. [190]

Consumer neuroscience

Consumer neuroscience, also known as neuromarketing, applies neuroscience to marketing problems. It utilizes biometric sensors like EEG, fMRI, and eye tracking to study consumer responses to stimuli. [191] [192] [193] This field has revealed insights into framing price, choice fatigue, and decision paralysis. [195] [196] [197] Nielsen Research has integrated neuromarketing into its services, acquiring companies specializing in this area. [194]

Consumer Behaviour