consumer problem solving behaviour

• school Campus Bookshelves
• menu_book Bookshelves
• perm_media Learning Objects
• login Login
• how_to_reg Request Instructor Account
• hub Instructor Commons
• Download Page (PDF)
• Download Full Book (PDF)
• Periodic Table
• Physics Constants
• Scientific Calculator
• Reference & Cite
• Tools expand_more
• Readability

selected template will load here

This action is not available.

4.3: Buyer behavior as problem solving

• Last updated
• Save as PDF
• Page ID 21352

• John Burnett
• Global Text Project

Consumer behavior refers to buyers who are purchasing for personal, family, or group use. Consumer behavior can be thought of as the combination of efforts and results related to the consumer's need to solve problems. Consumer problem solving is triggered by the identification of some unmet need. A family consumes all of the milk in the house or the tires on the family care wear out or the bowling team is planning an end-of-the-season picnic. This presents the person with a problem which must be solved. Problems can be viewed in terms of two types of needs: physical (such as a need for food) or psychological (for example, the need to be accepted by others).

Although the difference is a subtle one, there is some benefit in distinguishing between needs and wants. A need is a basic deficiency given a particular essential item. You need food, water, air, security, and so forth. A want is placing certain personal criteria as to how that need must be fulfilled. Therefore, when we are hungry, we often have a specific food item in mind. Consequently, a teenager will lament to a frustrated parent that there is nothing to eat, standing in front of a full refrigerator. Most of marketing is in the want-fulfilling business, not the need-fulfilling business. Timex does not want you to buy just any watch, they want you to want a Timex brand watch. Likewise, Ralph Lauren wants you to want Polo when you shop for clothes. On the other hand, the American Cancer Association would like you to feel a need for a check-up and does not care which doctor you go to. In the end, however, marketing is mostly interested in creating and satisfying wants.

The decision process

Exhibit 10 outlines the process a consumer goes through in making a purchase decision. Each step is illustrated in the following sections of your text. Once the process is started, a potential buyer can withdraw at any stage of making the actual purchase. The tendency for a person to go through all six stages is likely only in certain buying situations—a first time purchase of a product, for instance, or when buying high priced, long-lasting, infrequently purchased articles. This is referred to as complex decision making .

For many products, the purchasing behavior is a routine affair in which the aroused need is satisfied in a habitual manner by repurchasing the same brand. That is, past reinforcement in learning experiences leads directly to buying, and thus the second and third stages are bypassed. This is called simple decision making . However, if something changes appreciably (price, product, availability, services), the buyer may re-enter the full decision process and consider alternative brands. Whether complex 0r simple, the first step is need identification. 1.

Need identification

Whether we act to resolve a particular problem depends upon two factors: (1) the magnitude of the discrepancy between what we have and what we need, and (2) the importance of the problem. A consumer may desire a new Cadillac and own a five-year-old Chevrolet. The discrepancy may be fairly large but relatively unimportant compared to the other problems he/she faces. Conversely, an individual may own a car that is two years old and running very well. Yet, for various reasons, he/she may consider it extremely important to purchase a car this year. People must resolve these types of conflicts before they can proceed. Otherwise, the buying process for a given product stops at this point, probably in frustration.

Once the problem is recognized it must be defined in such a way that the consumer can actually initiate the action that will bring about a relevant problem solution. Note that, in many cases, problem recognition and problem definition occur simultaneously, such as a consumer running out of toothpaste. Consider the more complicated problem involved with status and image–how we want others to see us. For example, you may know that you are not satisfied with your appearance, but you may not be able to define it any more precisely than that. Consumers will not know where to begin solving their problem until the problem is adequately defined.

Marketers can become involved in the need recognition stage in three ways. First they need to know what problems consumers are facing in order to develop a marketing mix to help solve these problems. This requires that they measure problem recognition. Second, on occasion, marketers want to activate problem recognition. Public service announcements espousing the dangers of cigarette smoking is an example. Weekend and night shop hours are a response of retailers to the consumer problem of limited weekday shopping opportunities. This problem has become particularly important to families with two working adults. Finally, marketers can also shape the definition of the need or problem. If a consumer needs a new coat, does he define the problem as a need for inexpensive covering, a way to stay warm on the coldest days, a garment that will last several years, warm cover that will not attract odd looks from his peers, or an article of clothing that will express his personal sense of style? A salesperson or an ad may shape his answers.

Information search and processing

After a need is recognized, the prospective consumer may seek information to help identify and evaluate alternative products, services, and outlets that will meet that need. Such information can come from family, friends, personal observation, or other sources, such as Consumer Reports , salespeople, or mass media. The promotional component of the marketers offering is aimed at providing information to assist the consumer in their problem solving process. In some cases, the consumer already has the needed information based on past purchasing and consumption experience. Bad experiences and lack of satisfaction can destroy repeat purchases. The consumer with a need for tires may look for information in the local newspaper or ask friends for recommendation. If he has bought tires before and was satisfied, he may go to the same dealer and buy the same brand.

Information search can also identify new needs. As a tire shopper looks for information, she may decide that the tires are not the real problem, that the need is for a new car. At this point, the perceived need may change triggering a new informational search.

Information search involves mental as well as the physical activities that consumers must perform in order to make decisions and accomplish desired goals in the marketplace. It takes time, energy, money, and can often involve foregoing more desirable activities. The benefits of information search, however, can outweigh the costs. For example, engaging in a thorough information search may save money, improve quality of selection, or reduce risks. As noted in the integrated marketing box, the Internet is a valuable information source.

Information processing

When the search actually occurs, what do people do with the information? How do they spot, understand, and recall information? In other words, how do they process information? This broad topic is important for understanding buyer behavior in general as well as effective communication with buyers in particular, and it has received a great deal of study. Assessing how a person processes information is not an easy task. Often observation has served as the basis. Yet there are many theories as to how the process takes place. One widely accepted theory proposes a five-step sequence. 2.

• Exposure . Information processing starts with the exposure of consumers to some source of stimulation such as watching television, going to the supermarket, or receiving direct mail advertisements at home. In order to start the process, marketers must attract consumers to the stimulus or put it squarely in the path of people in the target market.

• Attention . Exposure alone does little unless people pay attention to the stimulus. At any moment, people are bombarded by all sorts of stimuli, but they have a limited capacity to process this input. They must devote mental resources to stimuli in order to process them; in other words, they must pay attention. Marketers can increase the likelihood of attention by providing informational cues that are relevant to the buyer.

• Perception . Perception involves classifying the incoming signals into meaningful categories, forming patterns, and assigning names or images to them. Perception is the assignment of meaning to stimuli received through the senses. (More will be said about perception later.)

• Retention . Storage of information for later reference, or retention, is the fourth step of the information-processing sequence. Actually, the role of retention or memory in the sequence is twofold. First, memory holds information while it is being processed throughout the sequence. Second, memory stores information for future, long-term use. Heavy repetition and putting a message to music are two things marketers do to enhance retention.

• Retrieval and application . The process by which information is recovered from the memory storehouse is called retrieval . Application is putting that information into the right context. If the buyer can retrieve relevant information about a product, brand, or store, he or she will apply it to solve a problem or meet a need.

Variations in how each step is carried out in the information-processing sequence also occur. Especially influential is the degree of elaboration. Elaborate processing, also called central processing, involves active manipulation of information. A person engaged in elaborate processing pays close attention to a message and thinks about it; he or she develops thoughts in support of or counter to the information received. In contrast, nonelaborate, or peripheral, processing involves passive manipulation of information 3. It is demonstrated by most airline passengers while a flight attendant reads preflight safety procedures. This degree of elaboration closely parallels the low-involvement, high-involvement theory, and the same logic applies.

Identification and evaluation of alternatives

After information is secured and processed, alternative products, services, and outlets are identified as viable options. The consumer evaluates these alternatives, and, if financially and psychologically able, makes a choice. The criteria used in evaluation varies from consumer to consumer just as the needs and information sources vary. One consumer may consider price most important while another puts more weight upon quality or convenience.

The search for alternatives and the methods used in the search are influenced by such factors as: (a) time and money costs; (b) how much information the consumer already has; (c) the amount of the perceived risk if a wrong selection is made; and (d) the consumer's pre-disposition toward particular choices as influenced by the attitude of the individual toward choice behavior. That is, there are individuals who find the selection process to be difficult and disturbing. For these people there is a tendency to keep the number of alternatives to a minimum, even if they have not gone through an extensive information search to find that their alternatives appear to be the very best. On the other hand, there are individuals who feel it necessary to collect a long list of alternatives. This tendency can appreciably slow down the decision-making function.

Product/service/outlet selection

The selection of an alternative, in many cases ,will require additional evaluation. For example, a consumer may select a favorite brand and go to a convenient outlet to make a purchase. Upon arrival at the dealer, the consumer finds that the desired brand is out-of-stock. At this point, additional evaluation is needed to decide whether to wait until the product comes in, accept a substitute, or go to another outlet. The selection and evaluation phases of consumer problem solving are closely related and often run sequentially, with outlet selection influencing product evaluation, or product selection influencing outlet evaluation.

The purchase decision

After much searching and evaluating, or perhaps very little, consumers at some point have to decide whether they are going to buy. Anything marketers can do to simplify purchasing will be attractive to buyers. In their advertising marketers could suggest the best size for a particular use, or the right wine to drink with a particular food. Sometimes several decision situations can be combined and marketed as one package. For example, travel agents often package travel tours.

To do a better marketing job at this stage of the buying process, a seller needs to know answers to many questions about consumers' shopping behavior. For instance, how much effort is the consumer willing to spend in shopping for the product? What factors influence when the consumer will actually purchase? Are there any conditions that would prohibit or delay purchase? Providing basic product, price, and location information through labels, advertising, personal selling, and public relations is an obvious starting point. Product sampling, coupons, and rebates may also provide an extra incentive to buy.

Actually determining how a consumer goes through the decision-making process is a difficult research task. As indicated in the Newsline box, there are new research methods to better assess this behavior.

Postpurchase behavior

All the behavior determinants and the steps of the buying process up to this point are operative before or during the time a purchase is made. However, a consumer's feelings and evaluations after the sale are also significant to a marketer, because they can influence repeat sales and also influence what the customer tells others about the product or brand.

Keeping the customer happy is what marketing is all about. Nevertheless, consumers typically experience some postpurchase anxiety after all but the most routine and inexpensive purchases. This anxiety reflects a phenomenon called cognitive dissonance . According to this theory, people strive for consistency among their cognitions (knowledge, attitudes, beliefs, values). When there are inconsistencies, dissonance exists, which people will try to eliminate. In some cases, the consumer makes the decision to buy a particular brand already aware of dissonant elements. In other instances, dissonance is aroused by disturbing information that is received after the purchase 4. The marketer may take specific steps to reduce postpurchase dissonance. Advertising that stresses the many positive attributes or confirms the popularity of the product can be helpful. Providing personal reinforcement has proven effective with big-ticket items such as automobiles and major appliances. Salespeople in these areas may send cards or may even make personal calls in order to reassure customers about their purchase.

Capsule 8: Review

Influencing factors of consumer behavior

While the decision-making process appears quite standardized, no two people make a decision in exactly the same way. As individuals, we have inherited and learned a great many behavioral tendencies: some controllable, some beyond our control. Further, the ways in which all these factors interact with one another ensures uniqueness. Although it is impossible for a marketer to react to the particular profile of a single consumer, it is possible to identify factors that tend to influence most consumers in predictable ways.

The factors that influence the consumer problem-solving process are numerous and complex. For example, the needs of men and women are different in respect to cosmetics; the extent of information search for a low-income person would be much greater when considering a new automobile as opposed to a loaf of bread; a consumer with extensive past purchasing experience in a product category might well approach the problem differently from one with no experience. Such influences must be understood to draw realistic conclusions about consumer behavior.

For purpose of discussion, it may be helpful to group these various influences into related sets. Exhibit 11 provides such a framework. Situational, external, and internal influences are shown as having an impact on the consumer problem solving process. Situation influences include the consumer's immediate buying task, the market offerings that are available to the consumer, and demographic traits. Internal influences relate to the consumer's learning and socialization, motivation and personality, and lifestyle. External influences deal with factors outside the individual that have a strong bearing on personal behaviors. Current purchase behavior is shown as influencing future behavior through the internal influence of learning. Let us now turn to the nature and potential impact of each of these sets of influences on consumer problem solving. Exhibit 11 focuses on the specific elements that influence the consumer's decision to purchase and evaluate products and services.

Situational influences

Buying task

The nature of the buying task has considerable impact on a customer's approach to solving a particular problem. When a decision involves a low-cost item that is frequently purchased, such as bread, the buying process is typically quick and routinized. A decision concerning a new car is quite different. The extent to which a decision is considered complex or simple depends on (a) whether the decision is novel or routine, and on (b) the extent of the customers' involvement with the decision. A great deal of discussion has revolved around this issue of involvement. High-involvement decisions are those that are important to the buyer. Such decisions are closely tied to the consumer's ego and self-image. They also involve some risk to the consumer; financial risk (highly priced items), social risk (products important to the peer group), or psychological risk (the wrong decision might cause the consumer some concern and anxiety). In making these decisions, it is worth the time and energies to consider solution alternatives carefully. A complex process of decision making is therefore more likely for high involvement purchases. Low-involvement decisions are more straightforward, require little risk, are repetitive, and often lead to a habit: they are not very important to the consumer 5. Financial, social, and psychological risks are not nearly as great. In such cases, it may not be worth the consumer's time and effort to search for information about brands or to consider a wide range of alternatives. A low involvement purchase therefore generally entails a limited process of decision making. The purchase of a new computer is an example of high involvement, while the purchase of a hamburger is a low-involvement decision.

When a consumer has bought a similar product many times in the past, the decision making is likely to be simple, regardless of whether it is a high-or low-involvement decision. Suppose a consumer initially bought a product after much care and involvement, was satisfied, and continued to buy the product. The customer's careful consideration of the product and satisfaction has produced brand loyalty, which is the result of involvement with the product decision.

Once a customer is brand-loyal, a simple decision-making process is all that is required for subsequent purchases. The consumer now buys the product through habit, which means making a decision without the use of additional information or the evaluation of alternative choices.

Market offerings

Another relevant set of situational influences on consumer problem solving is the available market offerings. The more extensive the product and brand choices available to the consumer, the more complex the purchase decision process is likely to be.

For example, if you already have purchased or are considering purchasing a DVD (digital versatile disc), you know there are many brands to choose from—Sony, Samsung, Panasonic, Mitsubishi, Toshiba, and Sanyo, to name several. Each manufacturer sells several models that differ in terms of some of the following features–single or multiple event selection, remote control (wired or wireless), slow motion, stop action, variable-speed scan, tracking control, and so on. What criteria are important to you? Is purchasing a DVD an easy decision? If a consumer has a need that can be met by only one product or one outlet in the relevant market, the decision is relatively simple. Either purchase the product or let the need go unmet.

This is not ideal from the customer's perspective, but it can occur. For example, suppose you are a student on a campus in a small town many miles from another marketplace. Your campus and town has only one bookstore. You need a textbook for class; only one specific book will do and only one outlet has the book for sale. The limitation on alternative market offerings can clearly influence your purchase behavior.

As you saw in the DVD example, when the extent of market offerings increases, the complexity of the problem-solving process and the consumers' need for information also increases. A wider selection of market offerings is better from the customer's point of view, because it allows them to tailor their purchases to their specific needs. However, it may confuse and frustrate the consumer so that less-than-optimal choices are made.

Demographic influences

An important set of factors that should not be overlooked in attempting to understand and respond to consumers is demographics. Such variables as age, sex, income, education, marital status, and mobility can all have significant influence on consumer behavior. One study showed that age and education have strong relationships to store selection by female shoppers. This was particularly true for women's suits or dresses, linens and bedding, cosmetics, and women's sportswear.

DeBeers Limited, which has an 80 per cent share of the market for diamonds used in engagement rings, employed a consumer demographic profile in developing their promotional program. Their target market consists of single women and men between the ages of 18 and 24. They combined this profile with some lifestyle aspects to develop their promotional program.

People in different income brackets also tend to buy different types of products and different qualities. Thus various income groups often shop in very different ways. This means that income can be an important variable in defining the target group. Many designer clothing shops, for example, aim at higher-income shoppers, while a store like Kmart appeals to middle-and lower-income groups.

External influences

External factors are another important set of influences on consumer behavior. Among the many societal elements that can affect consumer problem solving are culture, social class, reference groups, and family.

A person's culture is represented by a large group of people with a similar heritage. The American culture, which is a subset of the Western culture, is of primary interest here. Traditional American culture values include hard work, thrift, achievement, security, and the like. Marketing strategies targeted to those with such a cultural heritage should show the product or service as reinforcing these traditional values. The three components of culture-beliefs, values, and customs-are each somewhat different. A belief is a proposition that reflects a person's particular knowledge and assessment of something (that is, "I believe that ..."). Values are general statements that guide behavior and influence beliefs. The function of a value system is to help a person choose between alternatives in everyday life.

Customs are overt modes of behavior that constitute culturally approved ways of behaving in specific situations. For example, taking one's mother out for dinner and buying her presents for Mother's Day is an American custom that Hallmark and other card companies support enthusiastically.

The American culture with its social values can be divided into various subcultures. For example, African-Americans constitute a significant American subculture in most US cities. A consumer's racial heritage can exert an influence on media usage and various other aspects of the purchase decision process.

Social class

Social class , which is determined by such factors as occupation, wealth, income, education, power, and prestige, is another societal factor that can affect consumer behavior. The best-known classification system includes upper-upper, lower-upper, upper-middle, lower-middle, upper-lower, and lower-lower class. Lower-middle and upper-lower classes comprise the mass market.

The upper-upper class and lower-upper class consist of people from wealthy families who are locally prominent. They tend to live in large homes furnished with art and antiques. They are the primary market for rare jewelry and designer originals, tending to shop at exclusive retailers. The upper-middle class is made up of professionals, managers, and business owners. They are ambitious, future-oriented people who have succeeded economically and now seek to enhance their quality of life. Material goods often take on major symbolic meaning for this group. They also tend to be very civic-minded and are involved in many worthy causes. The lower-middle class consists of mid-level white-collar workers. These are office workers, teachers, small business people and the like who typically hold strong American values. They are family-oriented, hard-working individuals. The upper-lower class is made up of blue-collar workers such as production line workers and service people. Many have incomes that exceed those of the lower-middle class, but their values are often very different. They tend to adopt a short-run, live-for-the-present philosophy. They are less future-oriented than the middle classes. The lower-lower class consists of unskilled workers with low incomes. They are more concerned with necessities than with status or fulfillment.

People in the same social class tend to have similar attitudes, live in similar neighborhoods, dress alike, and shop at the same type stores. If a marketer wishes to target efforts toward the upper classes, then the market offering must be designed to meet their expectations in terms of quality, service, and atmosphere. For example, differences in leisure concerts are favored by members of the middle and upper classes, while fishing, bowling, pool, and drive-in movies are more likely to involve members of the lower social classes.

Reference groups

Do you ever wonder why Pepsi used Shaquille O'Neal in their advertisements? The teen market consumes a considerable amount of soft drinks. Pepsi has made a strong effort to capture a larger share of this market, and felt that Shaquille represented the spirit of today's teens. Pepsi is promoted as "the choice of a new generation" and Shaquille is viewed as a role model by much of that generation. Pepsi has thus employed the concept of reference groups.

A reference group helps shape a person's attitudes and behaviors. Such groups can be either formal or informal. Churches, clubs, schools, notable individuals, and friends can all be reference groups for a particular consumer. Reference groups are characterized as having individuals who are opinion leaders for the group. Opinion leaders are people who influence others. They are not necessarily higher-income or better educated, but perhaps are seen as having greater expertise or knowledge related to some specific topic. For example, a local high school teacher may be an opinion leader for parents in selecting colleges for their children. These people set the trend and others conform to the expressed behavior. If a marketer can identify the opinion leaders for a group in the target market, then effort can be directed toward attracting these individuals. For example, if an ice cream parlor is attempting to attract the local high school trade, opinion leaders at the school may be very important to its success.

The reference group can influence an individual in several ways 6. :

• Role expectations: The role assumed by a person is nothing more than a prescribed way of behaving based on the situation and the person's position in the situation. Your reference group determines much about how this role is to be performed. As a student, you are expected to behave in a certain basic way under certain conditions.

• Conformity: Conformity is related to our roles in that we modify our behavior in order to coincide with group norms. Norms are behavioral expectations that are considered appropriate regardless of the position we hold.

• Group communications through opinion leaders: We, as consumers, are constantly seeking out the advice of knowledgeable friends or acquaintances who can provide information, give advice, or actually make the decision. For some product categories, there are professional opinion leaders who are quite easy to identify–e.g. auto mechanics, beauticians, stock brokers, and physicians.

One of the most important reference groups for an individual is the family. A consumer's family has a major impact on attitude and behavior. The interaction between husband and wife and the number and ages of children in the family can have a significant effect on buying behavior.

One facet in understanding the family's impact on consumer behavior is identifying the decision maker for the purchase in question. In some cases, the husband is dominant, in others the wife or children, and still others, a joint decision is made. The store choice for food and household items is most often the wife's. With purchases that involve a larger sum of money, such as a refrigerator, a joint decision is usually made. The decision on clothing purchases for teenagers may be greatly influenced by the teenagers themselves. Thus, marketers need to identify the key family decision maker for the product or service in question.

Another aspect of understanding the impact of the family on buying behavior is the family lifecycle . Most families pass through an orderly sequence of stages. These stages can be defined by a combination of factors such as age, marital status,and parenthood. The typical stages are:

• The bachelor state; young, single people.

• Newly married couples; young, no children.

• The full nest I and II; young married couples with dependent children:

• Youngest child under six (Full nest I)

• Youngest child over six (Full nest II)

• The full nest III; older married couples with dependent children.

• The empty nest I and II; older married couples with no children living with them:

• Adults in labor force (Empty nest I)

• Adults retired (Empty nest II)

• The solitary survivors; older single people:

• In labor force

• Retired

Each of these stages is characterized by different buying behaviors. For example, a children's clothing manufacturer would target its efforts primarily at the full nest I families. Thus, the family cycle can be helpful in defining the target customers.

Internal influences

Each customer is to some degree a unique problem solving unit. Although they can be grouped into meaningful segments, in order to fully appreciate the totality of the buying process, a marketer needs to examine the internal forces that influence consumers. They are learning/socialization, motivation and personality, and lifestyle.

Learning and socialization

As a factor influencing a person's perceptions, learning may be defined as changes in behavior resulting from previous experiences. However, learning does not include behavior changes attributable to instinctive responses, growth, or temporary states of the organism, such as hunger, fatigue, or sleep. It is clear that learning is an ongoing process that is dynamic, adaptive, and subject to change. Also, learning is an experience and practice that actually brings about changes in behavior. For example, in order to learn how to play tennis, you might participate in it to gain experience, be exposed to the different skills required, the rules, and so forth. However, the experience does not have to be an actual, physical one. It could be a conceptualization of a potential experience. In other words, you could learn to play tennis by reading about how to play without actually doing it. This is called nonexperiential learning .

Nonexperiential learning is particularly relevant in consumer behavior. For example, assume you are considering purchasing a bottle of Zinfandel wine. You ask the salesclerk what it tastes like, and he tells you it tastes like a strong ginger ale. Not liking the taste of ginger ale, you reject the purchase. Thus you have learned that you do not like Zinfandel wine without having a direct taste experience. A great deal of our learning is of this type. This may be one reason why marketers try to identify opinions leaders who in turn tell others in the market about the benefits of the product.

Another characteristic of learning is that the changes may be immediate or anticipated. In other words, just because we do not see immediate evidence that learning has taken place is no reason to assume that learning has not occurred. We can store our learning until it is needed, and frequently do this in terms of making purchase decisions. For example, we are willing to learn about many product attributes even though we do not expect to buy the product in the near future.

As new information is processed and stored over time, consumer learning takes place There are several theories of learning: one of the most useful to marketers is that of socialization. Socialization refers to the process by which persons acquire the knowledge, skills, and dispositions that make them more or less able members of their society. The assumption made is that behavior is acquired and modified over the person's lifecycle.

The social learning approach stresses sources of influence–"socialization agents" (i.e. other people)–that transmit cognitive and behavioral patterns to the learner. In the case of consumer socialization, this takes place in the course of the person's interaction with other individuals in various social settings. Socialization agents might include any person, organization, or information source that comes into contact with the consumer.

Consumers acquire this information from the other individuals through the processes of modeling, reinforcement, and social interaction Modeling involves imitation of the agent's behavior. For example, a teenager may acquire a brand name preference for Izod from friends. Marketers can make use of this concept by employing spokespersons to endorse their products and services who have strong credibility with their target consumers, as in the case of Bill Cosby (Jell-O). Reinforcement involves either a reward or a punishment mechanism used by the agent. A parent may be reinforced by good product performance, excellent post-purchase services, or some similar rewarding experience. The social interaction mechanism is less specific as to the type of learning involved; it may include a combination of modeling and reinforcement. The social setting within which learning takes place can be defined in terms of variables such as social class, sex, and family size.

These variables can influence learning through their impact on the relationship between the consumer and others. It should be noted that an individual who promotes learning can be anyone—such as parent, friend, salesperson, or television spokesperson.

Motivation is a concept that is difficult to define. In fact, the difficulty of defining motives and dealing with motivation in consumer research accounts for its limited application. For the most part, the research in motivation involves benefit segmentation and patronage motives. Patronage motives typically concern the consumer's reasons for shopping at a particular outlet. Consumers are classified, for example, as price-conscious, convenience-oriented, service-oriented, or in terms of some other motivating feature.

A motive is the inner drive or pressure to take action to satisfy a need. To be motivated is to be a goal-oriented individual. Some goals are positive, some are negative, some individuals have a high level of goal orientation, some have a very low level. In all cases, the need must be aroused or stimulated to a high enough level so that it can serve as a motive. It is possible (and usual) to have needs that are latent (unstimulated) and that therefore do not serve as the motive of behavior. The sources of this arousal may be internal (people get hungry), environmental (you see an ad for a Big Mac), or psychological (just thinking about food can cause hunger). It is possible (and usual) to have needs that are latent (unstimulated) and that therefore do not serve as the motive of behavior.

For motivation to be useful in marketing practice, a marketing manager must understand what motives and behaviors are influenced by the specific situation in which consumers engage in goal-directed, problem-solving behavior.

Motivation flows from an unmet need, as does all consumer problem solving. Perhaps the best known theory dealing with individual motivation is provided in the work of A H Maslow. One of the most important parts of Maslow's theory is his development of a model consisting of several different levels of needs that exist in a human being and relate to each other via a "need hierarchy”. Maslow has differentiated between five levels of needs. The first of these concerns itself with physiological needs; that is, hunger, thirst, and other basic drives. All living beings, regardless of their level of maturity, possess physiological needs. Physiological needs are omnipresent and are of a recurrent nature7.

Safety and security needs are second in Maslow's hierarchy. The difference between physiological needs and safety and security needs is somewhat hazy. Safety and security imply a continued fulfillment of physiological needs. This is an extension of the more basic needs.

Third in Maslow's hierarchy of needs are the love needs. These are the needs for belonging and friendship. They involve a person's interaction with others. The fourth level of needs in Maslow's hierarchy is the esteem needs. These are needs related to feeling good about oneself and having a positive self-image.

The fifth and highest level in Maslow's needs hierarchy is the need for self-actualization or self-fulfillment. This need can be defined as the need of a person to reach his full potential in terms of the application of his own abilities and interest in functioning in his environment.

It is important in discussing these levels of Maslow's hierarchy to point out two additional factors. First, Maslow has clearly indicated that these five levels of needs operate on an unconscious level. That is, the individual is probably not aware of concentration upon one particular need or one assortment of needs. One of the misunderstandings associated with Maslow's theory is that he believes the five needs to be mutually exclusive. That, in fact, is not the intent of Maslow. To the contrary, several of these needs may occur simultaneously for any one individual; the relative importance of each need for any one individual determines the hierarchy involved.

When we attempt to integrate Maslow's needs hierarchy with the concept of segmentation, we can see that a manager might find certain subgroups that fit together because of some homogeneity of needs. For example, a marketer may target a group with strong self-esteem needs in designing a promotional program for cosmetics. Appeals to higher-order needs are important for many products and services, even basic commodities.

Personality is used to summarize all the traits of a person that make him/her unique. No two people have the same traits, but several attempts have been made to classify people with similar traits. Perhaps the best-known personality types are those proposed by Carl Jung, as is a variation on the work of his teacher, Sigmund Freud. His personality categories are introvert and extrovert . The introvert is described as defensive, inner-directed, and withdrawn from others. The extrovert is outgoing, other-directed, and assertive. Several other more elaborate classifications have also been devised.

Various personality types, like people with various motives, are likely to respond in different ways to different market offerings. For example, an extrovert may enjoy the shopping experience and rely more on personal observation to secure information; thus, in-store promotion would become an important communication tool. Knowing the basic personality traits of target customers can be useful information for the manager in designing the marketing mix. Marketers have, however, found personality to be difficult to apply in developing marketing strategy. The primary reason for this is the lack of good ways to measure personality traits. Most available measures were developed to identify people with problems that needed medical attention. These have little value with consumers who are mentally healthy. As a result, most marketers have turned to lifestyle analysis.

One of the newer and increasingly important set of factors that is being used to understand consumer behavior is lifestyle. Lifestyle has been generally defined as the attitudes, interests, and opinions of the potential customer. Such variables as interest in hunting, attitude toward the role of women in society, and opinion on the importance of dressing well can be used to better understand the market and its behavior.

It is the multifaceted aspect of lifestyle research that makes it so useful in consumer analysis. A prominent lifestyle researcher, Joseph T Plummer, summarizes the concept as follows:

...life style patterns, combines the virtues of demographics with the richness and dimensionality of psychological characteristics....Life style is used to segment the marketplace because it provides the broad, everyday view of consumers life style segmentation and can generate identifiable whole persons rather than isolated fragments. 8.

A useful application of the lifestyle concept relates to consumer's shopping orientation. Different customers approach shopping in very different ways. They have different attitudes and opinions about shopping and different levels of interest in shopping. Once people know their alternatives, how do they evaluate and choose among them? In particular, how do people choose among brands of a product? Current description of this process emphasizes the role of attitudes. An attitude is an opinion of a person, idea, place, or thing. Attitudes range based on a continuum from very negative to very positive. Traditionally, an attitude is broken down into three components: cognitive, affective, and behavioral. That is, an attitude is first what we know/believe, followed by what we feel, and ending with an action. Thus, we have learned that a particular company has been polluting a local river; we feel very strongly that business should not do this and feel very angry; and we boycott the product made by that company.

A great deal of marketing strategy is based on the idea that the cognitive, affective, and behavioral components of an attitude tend to be consistent. Thus, if it is possible to change what people believe about Yamaha CD players, their feelings and their actions may eventually change as well. However, this relationship among the three components of an attitude seems to be situation–or even product–specific. For example, attitudes tend to predict behavior better in high-involvement decisions. Thus, if someone has a strong attitude about wearing stylish clothes, then it is possible to predict that the person will restrict purchases to a particular set of brands. Furthermore, we do not react to products in isolation. The situation, or our attitude toward the situation, plays an important role in how well attitudes predict behavior. For example, assume that a consumer likes pizza but does not like Pizza Inn pizza. In a social setting where everyone wants to go to Pizza Inn for pizza, this person might eat this brand rather than not have pizza at all.

Despite limitations on the predictive power of attitudes, attitudes can help us understand how choices are made. However, we need to carefully assess the validity of the attitude-behavior relationships for each situation and product.

Capsule 9: Review

Given the hypothesis that attitudes influence buying behavior, how can a company bring its products and consumers' attitudes into a consistent state; that is, into a situation where consumers evaluate a given product or brand as satisfying their need? Marketers have two choices: either they can change consumers' attitudes to be consistent with their product, or they can change the product to match attitudes. It is easier to change the product than to change consumers' attitudes. Nevertheless, attitudes can sometimes be modified. Modifying attitudes might be the only reasonable choice, as when a firm is introducing a truly new product or an unusual new use for an existing one. Marketers should nevertheless face the fact that it is extremely difficult to change consumers' attitudes. If there is to be change, it is most likely to occur when people are open-minded in their beliefs or when an existing attitude is of weak intensity; that is, when there is little information to support the attitude or very little ego involvement on the individual's part. The stronger a person's loyalty to a certain brand, for example, the more difficult it is to change that attitude.

1. [1] Sources : Jennifer Gilbert, "New Teen Obsession," Advertising Age, February 14, 2000, p. 8; "School Daze," American Demographics, August 1999, p. 80; Krestina Filiciano, "Just Kidding," Adweek, May 1, 2000, p. 58.

2. [2] Sources : Joanne Gordon, "Shrink Rap," Fortune, February 7, 2000, pp. 110-111; Ronald B. Liebier, "Storytelling: A New Way to Get Close to the Customer," Fortune, February 3, 1997, pp. 102-105; Kendra Darko, "Zooming In On What's Important." American Demographics, August 1999, pp. 46-47.

10 Consumer Behavior Models (& Which One Applies to Your Business)

Published: December 10, 2021

Consumer behavior models are instrumental for understanding how, when, and why your customers buy. By applying the models to your customer acquisition efforts , you can accurately predict who will buy your product and target the right customers at the right time.

In this post, we’ll discuss the most important consumer behavior models and explain how you can use them to create customer-centric experiences.

What is a consumer behavior model?

A consumer behavior model is a theoretical framework for explaining why and how customers make purchasing decisions. The goal of consumer behavior models is to outline a predictable map of customer decisions up until conversion, thus helping you steer every stage of the buyer’s journey.

Consumer behavior models may sound complicated, but they’re not. They’re a way to create a “buyer behavior story” that you can use to refine and improve your customer experience.

As a whole, buyer behavior refers to an individual's buying habits based on influences from their background, education, personal beliefs, goals, needs, desires, and more.

Businesses aim to understand buyer behavior through customer behavior analysis , which involves the qualitative and quantitative analysis of a target market. Even though this data can tell you your customer’s favorite brand of socks, it doesn’t mean much if it doesn’t tell you why they purchased that brand of socks.

That’s where consumer behavior models come in. Consumer behavior models contextualize results from customer behavior analysis studies and help you get to the “why” of purchasing decisions.

Free Customer Journey Template

Outline your company's customer journey and experience with these 7 free templates.

• Buyer's Journey Template
• Future State Template
• Day-in-the-Life Template

You're all set!

Click this link to access this resource at any time.

Consumer Behavior Models

Customer behavior models help you understand your unique customer base and more effectively attract, engage, and retain them. These models are either traditional or contemporary.

Traditional Behavior Models

Traditional behavior models were developed by economists hoping to understand what customers purchase based on their wants and needs. Traditional models include the following:

• Learning Model
• Psychoanalytical Model
• Sociological Model
• Economic Model

1. Learning Model of Consumer Behavior

The Learning Model of customer behavior theorizes that buyer behavior responds to the desire to satisfy basic needs required for survival, like food, and learned needs that arise from lived experiences, like fear or guilt. This model takes influence from psychologist Abraham Maslow’s Hierarchy of Needs (pictured below).

Sigmund Freud is the father of psychoanalysis. The psychoanalytical model draws from his theories and says that individual consumers have deep-rooted motives, both conscious and unconscious, that drive them to make a purchase. These motives can be hidden fears, suppressed desires, or personal longings.

Thus, customers make purchases depending on how stimuli from your business, like an advertisement on Instagram, appeal to their desires. It’s important to note that, since these desires can be unconscious, customers don’t always know why it appeals to them; they just know it feels right to have it.

This model is unique in terms of application, but it’s relevant to businesses that sell an image that accompanies their products or services. For example, say you sell glasses. We all long to fit in and feel like we’re valued and seen as capable, smart people. Glasses are sometimes a symbol of intelligence, so you’d want to appeal to this desire when crafting a customer experience.

You may instruct marketing to create ad campaigns that display pictures of people wearing your glasses in educational settings or doing things that society labels as ‘smart.’

3. Sociological Model

For instance, C-Suite executives are expected to be professional and formal. People who hold these jobs will make purchases that speak to and uphold this group’s rules, like formal business wear.

This model can apply to most businesses, especially those that create products and services relevant to specific groups. To use the Sociological Model, you’d want to create experiences that speak to how these groups usually act. One example is brands that sell exercise equipment.

You sell to and appeal to consumers that are part of a societal group that likes to work out. To delight these customers, you’d want to sell to their desires, like equipment that improves performance or an insulated water bottle that stays cold and leaves them satisfied during their breaks. By doing this, you’re speaking to the consumer in that specific group and showing them that your product will help them retain their position in that group.

Check out this ad from Nike. They’re selling this shoe to the undefined group of people who like to run, claiming that it will improve their speed and help them fit in with the group.

4. Economic Model of Consumer Behavior

That means that businesses and manufacturers can predict sales based on their customers’ income and their products’ price. If companies offer the lowest-priced product, they may feel that they’re guaranteed a consistent level of profit.

While the economic model is the easiest to understand, it’s also the most limited. A buyer may have other reasons for purchasing a product aside from price and personal resources.

One such example would be prescription medicine in the U.S. healthcare industry. While the price of a prescription drug may exceed the buyer’s resources, the buyer would still have to find a way to purchase it and meet their needs. They might open a credit card or take out a personal loan to pay for the medicine. Thus personal income and price don’t affect the purchasing decision here; instead, need does.

Contemporary Models

Contemporary models of consumer behavior focus on rational and deliberate decision-making processes rather than emotions or unconscious desires. The contemporary models include:

• Engel-Kollat-Blackwell (EKB) Model
• Black Box Model
• Hawkins Stern Model
• Howard Sheth Model
• Nicosia Model
• Webster and Wind Model

1. Engel-Kollat-Blackwell (EKB) Model of Consumer Behavior

• Awareness : During this stage, consumers view advertisements from a business and become aware of their need, desire, or interest, to purchase what they've just discovered.
• Information Processing : After discovering a product or service, a consumer begins to think about how the product or service relates to their past experiences or needs and whether it will fulfill any current needs.
• Evaluation : At this point, consumers will research the product they’ve discovered and research options from competitors to see if there is a better option or if the original product is the best fit.
• Purchasing Decision : A consumer will follow through with a purchase for the product that has beat out competitors to provide value. A consumer may also stop the process if they change their mind.
• Outcome Analysis : After making a purchase, a customer will use what they’ve bought and assess whether their experience is positive or negative. After a trial period, they’ll keep a product and maybe decide to become repeat customers or express dissatisfaction and return to stage three.

Overall, EKB says that consumers make decisions based on influencing factors that they assess through rational insight.

This model applies to businesses that have many competitors with similar products or services. If your product market is highly saturated and competitive, the goal is to outshine your competitors by meeting customers at every stage of their journey.

Increase visibility for your business during the awareness stage through Search Engine Optimization . Show them how your product or service will benefit them and give them the resources they need to weigh you against your competitors, like customer reviews and testimonials , free trials, discounts for bulk purchases. Lastly, and provide excellent after-sales support to show them that you care about their business even if they make a return.

2. Black Box Model of Consumer Behavior

It may look complex, but it’s a fairly straightforward path. A consumer comes into contact with external stimuli from your business’ marketing mix and other external stimuli, and they process it in their mind (black box). They relate the external stimuli to their pre-existing knowledge, like personal beliefs and desires, to make a decision.

In short, this model says that consumers are problem solvers who make decisions after judging how your product will satisfy their existing beliefs and needs. Since consumers only follow through with a purchase after understanding how a product relates to their experiences, this model can benefit businesses selling products that go along with a lifestyle.

Case in point: cars. Different brands sell their cars to specific types of buyers. Jeeps and Subarus are for those that engage in outdoor activities and need a sturdy, reliable vehicle. At the same time, Mercedez Benz and Lexus’ are marketed to those who want luxurious driving experiences. Even though the machinery is relatively similar, these brands speak to the pre-existing life values that customers have, and they promise that purchasing their vehicle will uphold their values.

3. Hawkins Stern Impulse Buying Model

• Escape Purchase : Sometimes called pure impulse, this involves purchasing an item that isn’t a routine item or on a shopping list. Consumers are drawn to these items through appealing visuals.
• Reminder Purchase : A consumer makes a reminder impulse purchase when they come across a product through in-store setups, promotional offers, or a simple reminder that a product exists, like a strategically placed ice cream scoop in the freezer aisle of a grocery store.
• Suggested Purchase : Suggested impulse purchases occur when a consumer is made aware of a product after a recommendation or suggestion from an in-store salesperson or online algorithms. For example, seeing an ad that says, “Other people who bought this shoe you’re about to buy also purchase these socks.” The consumer didn’t know the socks existed, didn’t plan to buy them, but now the suggestion has told them that they need them.
• Planned Purchase : Although planned is the opposite of impulse, these purchases occur when a consumer knows they want a particular product but will only buy it if there is a deal involved. An unexpected price drop could lead a customer to make a planned impulse purchase.

Buyer Persona Templates

Organize your audience segments and make your marketing stronger.

• Learn about personas.
• Conduct persona research.
• Create targetted content.
• Build your own personas.

The Hawkins Stern Model applies to most businesses, as there are no limits to what a customer with this purchasing behavior will buy. Create a tailored customer experience by putting care into product displays, creating AI algorithms for online shopping, or placing items on sale to appeal to your shoppers who are planned purchase impulse buyers.

4. Howard Sheth Model of Buying Behavior

According to this model, there are three successive levels of decision-making:

• Extensive Problem-Solving : In this stage, customers know nothing about the product they’re seeking or the brands that are available to them. They’re in active problem-solving mode to find a suitable product.
• Limited Problem-Solving : Now that customers have more information, they slow down and begin comparing their choices.
• Habitual Response Behavior : Customers are fully aware of all the choices they have and know which brands they prefer. Thus, every time they make a purchase, they know where to go.

We’ve all gone through some version of these stages. Let’s look at an anecdotal example.

When I first started buying glasses online, I had no idea which retailers I should use or whether the glasses sold online would be the same quality as the opticians’ offerings. I searched online to find a high-quality online glasses retailer (extensive problem-solving).

I found a few choices and started comparing them from both a pricing and quality standpoint (limited problem-solving). I eventually chose one, and that’s the retailer I’ve used ever since (habitual response behavior).

But these stages aren’t that simple. According to the Howard Sheth model, I was under the sway of several stimuli during this process:

• Inputs : This refers to the marketing messages and imagery a consumer receives while they’re going through the decision-making process. “Inputs” also refers to any perceptions and attitudes that come from the consumer’s social environment, such as their friends, family, and culture.
• Perceptual and Learning Constructs : This may sound complicated, but this stimulus is simply the customer’s psychological makeup and psychographic information. Perceptual and learning constructs may include needs, preferences, and goals.
• Outputs : After inputs and perceptual and learning constructs are mixed together, you get the output. The output is the customer’s resulting action under the influence of marketing messages, social stimuli, and internal psychological attributes. It can result in the customer paying more attention to a certain brand over another.
• External Variables : This is anything that’s not directly related to the decision-making process, such as weather or religion, that still may sway the customer’s decision.

5. Nicosia Model

While it’s an attractive model because it places all the power on businesses, it’s unwise to ignore the customer’s internal factors that lead to a purchase decision. In other words, while you may offer the wittiest and most effective marketing copy ever, a customer’s internal attributes may have more sway in some instances over others.

The model is comprised of four “fields”:

• One: The business’ characteristics and the customer’s characteristics . What does your marketing messaging look like? And what’s your customer’s perception of that messaging? Are they predisposed to be receptive to your message? The latter is shaped by the customer’s personality traits and experiences.
• Two: Search and evaluation . Similar to the Howard Sheth model’s “limited problem-solving” stage, the customer begins to compare different brands here based on the company’s messaging.
• Three: Purchase decision . The purchase decision will occur after the company convinces the customer to choose them as their retailer or provider.
• Four: Feedback. During the feedback field, the company will determine whether it should continue using the same messaging, and the customer will decide whether they will continue to be receptive to future messages.

6. Webster and Wind Model of Organizational Buying Behavior

• Environmental Variables : Environmental variables refer to any external factors that could sway a purchase decision. Customer demands, supplier relationships, and competitive pressure are a few examples. Broader variables apply, too, such as technology, politics, and culture.
• Organizational Variables : Organizational variables refer to internal factors that could sway a purchase decision, such as the organization’s goals and evaluation criteria.
• Buying Center Variables : Who makes the final purchase decision? Who has the authority to sign the contract, and who influences the buying process? Buying center variables take all of this into account.
• Individual Variables: These variables refer to the demographic and psychographic information of the individual prospect at the business. What’s their education and level of experience? What are their goals and desires?

After taking all of those variables into account, B2B organizations are then able to chart a predictable buyer’s journey for their target customers.

Your Customers Will Inform Your Strategy

If you take the time to create buyer personas, you’ll discover how your customers plan, or don’t, to purchase your products and services. If they say a deal entices them, pay close attention to the Hawkins Stern Impulse Buying Model. If they report strong ties to their social groups, refer to the Sociological Model.

Overall, your customers will inform your strategy and help you create tailored experiences that speak to their buyer behavior and leave them feeling satisfied after every purchase.

Editor's note: This post was originally published in January 2021 and has been updated for comprehensiveness.

Don't forget to share this post!

Related articles.

How AI Image Misuse Made a World of Miscommunication [Willy's Chocolate Experience]

7 Ways to Delight Your Customers This Holiday Season

14 Customer Experience Fails that Companies Can Learn From

How Customer Experience Has Evolved Over the Last Decade [+ 2024 Trends]

Memorable Examples of AR in Customer Experience [+Tips for Implementing the Technology]

How to Create an Effective Customer Journey Map [Examples + Template]

Digital Customer Experience: The Ultimate Guide for 2023

How to Implement a Hybrid Customer Service Strategy That Works [Expert Tips]

User Flows: 8 Tips For Creating A Super Smooth User Experience

11 Best Practices for B2B Customer Experience

Outline your company's customer journey and experience with these 7 free customer journey map templates.

Service Hub provides everything you need to delight and retain customers while supporting the success of your whole front office

BUS203: Principles of Marketing

Understanding Buyer Behavior

Read this chapter. The terms "customer" and "consumer" are often mistakenly used interchangeably. The distinction is blurry because different organizations, academics, and governments have varying definitions for both of them. One easy way of distinguishing between the two is to think of the consumer as a potential customer to a firm and the customer as someone that already consumes the goods a specific firm produces. For example, if you regularly purchase shoes from Footlocker, you are a Footlocker customer. But if your friend does not shop at Footlocker, then Footlocker considers him a consumer: a potential customer. Firms often target consumers and existing customers differently.

Buyer Behavior as Problem Solving

Consumer behavior refers to buyers who are purchasing for personal, family, or group use. Consumer behavior can be thought of as the combination of efforts and results related to the consumer's need to solve problems. Consumer problem solving is triggered by the identification of some unmet need. A family consumes all of the milk in the house or the tires on the family care wear out or the bowling team is planning an end-of-the-season picnic. This presents the person with a problem which must be solved. Problems can be viewed in terms of two types of needs: physical (such as a need for food) or psychological (for example, the need to be accepted by others).

Although the difference is a subtle one, there is some benefit in distinguishing between needs and wants. A need is a basic deficiency given a particular essential item. You need food, water, air, security, and so forth. A want is placing certain personal criteria as to how that need must be fulfilled. Therefore, when we are hungry, we often have a specific food item in mind. Consequently, a teenager will lament to a frustrated parent that there is nothing to eat, standing in front of a full refrigerator. Most of marketing is in the want-fulfilling business, not the need-fulfilling business. Timex doesn't want you to buy just any watch, they want you to want a Timex brand watch. Likewise, Ralph Lauren wants you to want Polo when you shop for clothes. On the other hand, the American Cancer Association would like you to feel a need for a check-up and doesn't care which doctor you go to in the end, however, marketing is mostly interested in creating and satisfying wants.

The Decision Process

Figure 4.1 outlines the process a consumer goes through in making a purchase decision. Each step is illustrated in the following sections of your text. Once the process is started, a potential buyer can withdraw at any stage of making the actual purchase. The tendency for a person to go through all six stages is likely only in certain buying situations-a first- time purchase of a product, for in stance, or when buying high priced, long-lasting, infrequently purchased articles. This is referred to as complex decision making.

For many products, the purchasing behavior is a routine affair in which the aroused need is satisfied in a habitual manner by repurchasing the same brand. That is, past reinforcement in learning experiences leads directly to buying, and thus the second and third stages are bypassed. This is called simple decision making. However, if something changes appreciably (price, product, availability, services), the buyer may reenter the full decision process and consider alternative brands. Whether complex 0, simple, the first step is need identification.

Need Identification

Whether we act to resolve a particular problem depends upon two factors: (1) the magnitude of the discrepancy between what we have and what we need, and (2) the importance of the problem. A consumer may desire a new Cadillac and own a five-year old Chevrolet. The discrepancy may be fairly large, but relatively unimportant compared to the other problems he/she faces. Conversely, an individual may own a car that is two years old and running very well. Yet, for various reasons, he/ she may consider it extremely important to purchase a car this year. People must resolve these types of conflicts before they can proceed. Otherwise, the buying process for a giver. product stops at this point, probably in frustration.

FIGURE 4.1 The consumer decision process

Once the problem is recognized, it must be defined in such a way that the consumer can actually initiate the action that will bring about a relevant problem solution. Note that, in many cases, problem recognition and problem definition occur simultaneously, such as a consumer running out of toothpaste. But consider the more complicated problem involved with status and image-how we want others to see us. For example, you may know that you are not satisfied with your appearance, but you may not be able to define it any more precisely than that. Consumers will not know where to begin solving their problem until the problem is adequately defined.

Marketers can become involved in the need recognition stage in three ways. First, they need to know what problems consumers are facing in order to develop a marketing mix to help solve these problems. This requires that they measure problem recognition. Second, on occasion, marketers want to activate problem recognition. Public Service Announcements espousing the dangers of cigarette smoking is an example. Weekend and night shop hours are a response of retailers to the consumer problem of limited weekday shopping opportunities. This problem has become particularly important to families with two working adults. Finally, marketers can also shape the definition of the need of problem. If a consumer needs a new coal, does he define the problem as a need for inexpensive covering, a way to stay warm on the coldest days, a garment that will last several years, warm covering that will not attract odd looks from his peers, or an article of clothing that will express his personal sense of style? A salesperson or an ad may shape his answers.

Information Search and Processing

After a need is recognized, the prospective consumer may seek information to help identify and evaluate alternative products, services, and outlets that will meet that need. Such information can come from family, friends, personal observation, Of other sources, such as Consumer Reports, salespeople, or mass meciia. The promotional component of the marketers offering is aimed at providing information to assist the consumer in their problem- solving process. In some cases, the consumer already has the needed information based on past purchasing and consumption experience. Bad experiences and lack of satisfaction can destroy repeat purchases. The consumer with a need for tires may look for information in the local newspaper or ask friends for recommendation. If he has bought tires before and was satisfied, he may go to the same dealer and buy the same brand.

Information search can also identify new needs. As a tire shopper looks for information, she may decide that the tires are not the real problem, that the need is for a new car. At this point, the perceived need may change, triggering a new informational search. Information search involves mental as well at; the physical activities that consumers must perform in order to make decisions and accomplish desired goals in the marketplace. It takes time, energy, money, and can often involve foregoing more desirable activities. The benefits of information search, however, can outweigh the costs. For example, engaging in a thorough information search may save money, improve quality of selection, or reduce risks. As noted in the Integrated Marketing box, the Internet is a valuable information source.

Information Processing

When the search actually occurs, what do people do with the information? How do they spot, understand, and recall information? In other words, how do they process information? This broad topic is important for under standing buyer behavior in general as well as effective communication with buyers in particular, and it has received a great deal of study. Assessing how a person processes information is not an easy task. Often observation has served as the basis. Yet there are many theories as to how the process takes place. One widely accepted theory proposes a five step sequence.

1. Exposure. Information processing starts with the exposure of consumers to some source of stimulation such as watching television, going to the super market, or receiving direct mail advertisements at home. In order to start the process, marketers must attract consumers to the stimulus or put it squarely in the path of people in the target market.

2. Attention. Exposure alone does little unless people pay attention to the stimulus. At aJ1Y moment, people are bombarded by all sorts of stimuli, but they have a limited capacity to process this input. They must devote mental resources to stimuli in order to process them; in other words, they must pay attention. Marketers can increase the likelihood of attention by providing informational cues that are relevant to the buyer.

3. Perception . Perception involves classifying the incoming signals into meaningful categories, forming patterns, and assigning names or images to them. Perception is the assignment of meaning to stimuli received through the senses. (More will be said about perception later).

4. Retention . Storage of information for later reference, or retention, is the fourth step of the information-processing sequence. Actually, the role of retention or memory in the sequence is twofold. First, memory holds information while it is being processed throughout the sequence. Second, memory stores information for future, long-term use. Heavy repetition and putting a message to music are two things marketers do to enhance retention.

5. Retrieval and Application . The process by which information is recovered from the memory storehouse is called retrieval. Application is putting that information into the right context. If the bu yer can retrieve relevant information about a product, brand, or store, he or she will apply it to solve a problem or meet a need.

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

3.2 Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process

Learning objectives.

• Distinguish between low-involvement and high-involvement buying decisions.
• Understand what the stages of the buying process are and what happens in each stage.

As you have seen, many factors influence a consumer’s behavior. Depending on a consumer’s experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The level of involvement reflects how personally important or interested you are in consuming a product and how much information you need to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product, although some products such as purchasing a house typically require a high-involvement for all consumers. Consumers with no experience purchasing a product may have more involvement than someone who is replacing a product.

You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives. As Nike would put it, you “just do it.” Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them.

Consumers often engage in routine response behavior when they make low-involvement decisions—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you’re waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be.

By contrast, high-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving , where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

High-involvement decisions can cause buyers a great deal of postpurchase dissonance (anxiety) if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that postpurchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople may be utilized to answer questions and do a lot of customer “hand-holding.”

Allstate’s “You’re in Good Hands” advertisements are designed to convince consumers that the insurance company won’t let them down.

Mike Mozart – Allstate, – CC BY 2.0.

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the manufacturers of products that are typically high-involvement decisions can’t become complacent about the value of their brands.

1970s American Cars

(click to see video)

Today, Lexus is the automotive brand that experiences the most customer loyalty. For a humorous, tongue-in-cheek look at why the brand reputation of American carmakers suffered in the 1970s, check out this clip.

Stages in the Buying Process

Figure 3.9 “Stages in the Consumer’s Purchasing Process” outlines the buying stages consumers go through. At any given time, you’re probably in a buying stage for a product or service. You’re thinking about the different types of things you want or need to eventually buy, how you are going to find the best ones at the best price, and where and how will you buy them. Meanwhile, there are other products you have already purchased that you’re evaluating. Some might be better than others. Will you discard them, and if so, how? Then what will you buy? Where does that process start?

Figure 3.9 Stages in the Consumer’s Purchasing Process

Stage 1. Need Recognition

You plan to backpack around the country after you graduate and don’t have a particularly good backpack. You realize that you must get a new backpack. You may also be thinking about the job you’ve accepted after graduation and know that you must get a vehicle to commute. Recognizing a need may involve something as simple as running out of bread or milk or realizing that you must get a new backpack or a car after you graduate. Marketers try to show consumers how their products and services add value and help satisfy needs and wants. Do you think it’s a coincidence that Gatorade, Powerade, and other beverage makers locate their machines in gymnasiums so you see them after a long, tiring workout? Previews at movie theaters are another example. How many times have you have heard about a movie and had no interest in it—until you saw the preview? Afterward, you felt like you had to see it.

Stage 2. Search for Information

For products such as milk and bread, you may simply recognize the need, go to the store, and buy more. However, if you are purchasing a car for the first time or need a particular type of backpack, you may need to get information on different alternatives. Maybe you have owned several backpacks and know what you like and don’t like about them. Or there might be a particular brand that you’ve purchased in the past that you liked and want to purchase in the future. This is a great position for the company that owns the brand to be in—something firms strive for. Why? Because it often means you will limit your search and simply buy their brand again.

If what you already know about backpacks doesn’t provide you with enough information, you’ll probably continue to gather information from various sources. Frequently people ask friends, family, and neighbors about their experiences with products. Magazines such as Consumer Reports (considered an objective source of information on many consumer products) or Backpacker Magazine might also help you. Similar information sources are available for learning about different makes and models of cars.

Internet shopping sites such as Amazon.com have become a common source of information about products. Epinions.com is an example of consumer-generated review site. The site offers product ratings, buying tips, and price information. Amazon.com also offers product reviews written by consumers. People prefer “independent” sources such as this when they are looking for product information. However, they also often consult non-neutral sources of information, such advertisements, brochures, company Web sites, and salespeople.

Stage 3. Product Evaluation

Obviously, there are hundreds of different backpacks and cars available. It’s not possible for you to examine all of them. In fact, good salespeople and marketing professionals know that providing you with too many choices can be so overwhelming that you might not buy anything at all. Consequently, you may use choice heuristics or rules of thumb that provide mental shortcuts in the decision-making process. You may also develop evaluative criteria to help you narrow down your choices. Backpacks or cars that meet your initial criteria before the consideration will determine the set of brands you’ll consider for purchase.

Evaluative criteria are certain characteristics that are important to you such as the price of the backpack, the size, the number of compartments, and color. Some of these characteristics are more important than others. For example, the size of the backpack and the price might be more important to you than the color—unless, say, the color is hot pink and you hate pink. You must decide what criteria are most important and how well different alternatives meet the criteria.

Figure 3.10

Osprey backpacks are known for their durability. The company has a special design and quality control center, and Osprey’s salespeople annually take a “canyon testing” trip to see how well the company’s products perform.

melanie innis – break – CC BY-NC-ND 2.0.

Companies want to convince you that the evaluative criteria you are considering reflect the strengths of their products. For example, you might not have thought about the weight or durability of the backpack you want to buy. However, a backpack manufacturer such as Osprey might remind you through magazine ads, packaging information, and its Web site that you should pay attention to these features—features that happen to be key selling points of its backpacks. Automobile manufacturers may have similar models, so don’t be afraid to add criteria to help you evaluate cars in your consideration set.

Stage 4. Product Choice and Purchase

With low-involvement purchases, consumers may go from recognizing a need to purchasing the product. However, for backpacks and cars, you decide which one to purchase after you have evaluated different alternatives. In addition to which backpack or which car, you are probably also making other decisions at this stage, including where and how to purchase the backpack (or car) and on what terms. Maybe the backpack was cheaper at one store than another, but the salesperson there was rude. Or maybe you decide to order online because you’re too busy to go to the mall. Other decisions related to the purchase, particularly those related to big-ticket items, are made at this point. For example, if you’re buying a high-definition television, you might look for a store that will offer you credit or a warranty.

Stage 5. Postpurchase Use and Evaluation

At this point in the process you decide whether the backpack you purchased is everything it was cracked up to be. Hopefully it is. If it’s not, you’re likely to suffer what’s called postpurchase dissonance . You might call it buyer’s remorse . Typically, dissonance occurs when a product or service does not meet your expectations. Consumers are more likely to experience dissonance with products that are relatively expensive and that are purchased infrequently.

You want to feel good about your purchase, but you don’t. You begin to wonder whether you should have waited to get a better price, purchased something else, or gathered more information first. Consumers commonly feel this way, which is a problem for sellers. If you don’t feel good about what you’ve purchased from them, you might return the item and never purchase anything from them again. Or, worse yet, you might tell everyone you know how bad the product was.

Companies do various things to try to prevent buyer’s remorse. For smaller items, they might offer a money back guarantee or they might encourage their salespeople to tell you what a great purchase you made. How many times have you heard a salesperson say, “That outfit looks so great on you!” For larger items, companies might offer a warranty, along with instruction booklets, and a toll-free troubleshooting line to call or they might have a salesperson call you to see if you need help with product. Automobile companies may offer loaner cars when you bring your car in for service.

Companies may also try to set expectations in order to satisfy customers. Service companies such as restaurants do this frequently. Think about when the hostess tells you that your table will be ready in 30 minutes. If they seat you in 15 minutes, you are much happier than if they told you that your table would be ready in 15 minutes, but it took 30 minutes to seat you. Similarly, if a store tells you that your pants will be altered in a week and they are ready in three days, you’ll be much more satisfied than if they said your pants would be ready in three days, yet it took a week before they were ready.

Stage 6. Disposal of the Product

There was a time when neither manufacturers nor consumers thought much about how products got disposed of, so long as people bought them. But that’s changed. How products are being disposed of is becoming extremely important to consumers and society in general. Computers and batteries, which leech chemicals into landfills, are a huge problem. Consumers don’t want to degrade the environment if they don’t have to, and companies are becoming more aware of this fact.

Take for example Crystal Light, a water-based beverage that’s sold in grocery stores. You can buy it in a bottle. However, many people buy a concentrated form of it, put it in reusable pitchers or bottles, and add water. That way, they don’t have to buy and dispose of plastic bottle after plastic bottle, damaging the environment in the process. Windex has done something similar with its window cleaner. Instead of buying new bottles of it all the time, you can purchase a concentrate and add water. You have probably noticed that most grocery stores now sell cloth bags consumers can reuse instead of continually using and discarding of new plastic or paper bags.

Figure 3.11

The hike up to Mount Everest used to be pristine. Now it looks more like this. Who’s responsible? Are consumers or companies responsible, or both?

jqpubliq – Recycling Center Pile – CC BY-SA 2.0.

Other companies are less concerned about conservation than they are about planned obsolescence . Planned obsolescence is a deliberate effort by companies to make their products obsolete, or unusable, after a period of time. The goal is to improve a company’s sales by reducing the amount of time between the repeat purchases consumers make of products. When a software developer introduces a new version of product, it is usually designed to be incompatible with older versions of it. For example, not all the formatting features are the same in Microsoft Word 2007 and 2010. Sometimes documents do not translate properly when opened in the newer version. Consequently, you will be more inclined to upgrade to the new version so you can open all Word documents you receive.

Products that are disposable are another way in which firms have managed to reduce the amount of time between purchases. Disposable lighters are an example. Do you know anyone today that owns a nondisposable lighter? Believe it or not, prior to the 1960s, scarcely anyone could have imagined using a cheap disposable lighter. There are many more disposable products today than there were in years past—including everything from bottled water and individually wrapped snacks to single-use eye drops and cell phones.

Figure 3.12

Disposable lighters came into vogue in the United States in the 1960s. You probably don’t own a cool, nondisposable lighter like one of these, but you don’t have to bother refilling it with lighter fluid either.

Europeana staff photographer – A trench art lighter – public domain.

Key Takeaways

Consumer behavior looks at the many reasons why people buy things and later dispose of them. Consumers go through distinct buying phases when they purchase products: (1) realizing the need or wanting something, (2) searching for information about the item, (3) evaluating different products, (4) choosing a product and purchasing it, (5) using and evaluating the product after the purchase, and (6) disposing of the product. A consumer’s level of involvement is how interested he or she is in buying and consuming a product. Low-involvement products are usually inexpensive and pose a low risk to the buyer if he or she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.

Review Questions

• How do low-involvement decisions differ from high-involvement decisions in terms of relevance, price, frequency, and the risks their buyers face? Name some products in each category that you’ve recently purchased.
• What stages do people go through in the buying process for high-involvement decisions? How do the stages vary for low-involvement decisions?
• What is postpurchase dissonance and what can companies do to reduce it?

Principles of Marketing Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Share This Book

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Consumer Motivation and Involvement

13 Needs, Wants, and Goals

Every New Year, many of us make resolutions — or goals — that eventually go unsatisfied: eat healthier; pay better attention in class; volunteer, exercise more. As much as we know our lives would improve if we actually achieved these goals, people quite often don’t follow through. But what if that didn’t have to be the case? What if every time we made a goal, we actually accomplished it? Each day, our behaviour is the result of countless goals — maybe not goals in the way we think of them, like lifting the heaviest weights or being the first person to land on Mars. But even with “mundane” goals, like getting food from the grocery store, or showing up to work on time, we are often enacting the same psychological processes involved with achieving loftier dreams. To understand how we can better attain our goals, let’s begin with defining what a goal is and what underlies it, psychologically.

A  goal is the cognitive representation of a desired state, or, in other words, our mental idea of how we’d like things to turn out (Fishbach & Ferguson 2007; Kruglanski, 1996). This desired end state of a goal can be clearly defined (e.g., stepping on the surface of Mars), or it can be more abstract and represent a state that is never fully completed (e.g., eating healthy). Underlying all of these goals, though, is motivation , or the psychological driving force that enables action in the pursuit of that goal (Lewin, 1935).

Motivation can stem from two places. First, it can come from the benefits associated with the process of pursuing a goal ( intrinsic motivation ). For example, you might be driven by the desire to have a fulfilling experience while working on your Mars mission. Second, motivation can also come from the benefits associated with achieving a goal ( extrinsic motivation ), such as the fame and fortune that come with being the first person on Mars (Deci & Ryan, 1985). One easy way to consider intrinsic and extrinsic motivation is through your eyes as a student. Does the student work hard on assignments because the act of learning is pleasing ( intrinsic motivation )? Or does the student work hard to get good grades, which will help land a good job ( extrinsic motivation )?

Needs & Wants

Consumer behaviour can be thought of as the combination of efforts and results related to the consumer’s need to solve problems. Consumer problem solving is triggered by the identification of some unmet need . A family consumes all of the milk in the house; or the tires on the family car wear out; or the bowling team is planning an end-of-the-season picnic: these present consumers with a problem which must be solved. Problems can be viewed in terms of two types of needs: physical (such as a need for food) or psychological (for example, the need to be accepted by others).

Although the difference is a subtle one, there is some benefit in distinguishing between needs and wants. A need is a basic deficiency given a particular essential item. You need food, water, air, security, and so forth. A want is placing certain personal criteria as to how that need must be fulfilled. Therefore, when we are hungry, we often have a specific food item in mind. Consequently, a teenager will lament to a frustrated parent that there is nothing to eat, while standing in front of a full refrigerator.

Most of marketing is in the want-fulfilling business, not the need- fulfilling business. Apple does not want you to buy just any watch, they want you to want to buy an Apple Watch. Likewise, Ralph Lauren wants you to want Polo when you shop for clothes. On the other hand, a nonprofit such as the Canadian Cancer Association would like you to feel a need for a check-up and does not care which doctor you go to. In the end, however, marketing is mostly interested in creating and satisfying wants.

Utilitarian & Hedonic Needs

Often discussion around needs are further explained in the context of those which are utilitarian ( practical and useful in nature ) and hedonic ( luxurious or desirable in nature ). Consumers satisfying their utilitarian needs will be more price sensitive than consumers seeking to satisfy hedonic needs who will justify high(er) prices due to the infrequency in which they would purchase a luxury item. Cognitive dissonance , or consumer guilt, is more likely to be associated with hedonic purchases than utilitarian ones.

Distinguishing Features Between Utilitarian Needs and Hedonic Needs

Prevention & Promotion Orientation

Research also distinguishes between two distinct self-regulatory orientations (or perceptions of effectiveness) in pursuing a goal: prevention and promotion.

A prevention emphasizes safety, responsibility, and security needs, and views goals as “oughts.” That is, for those who are prevention-oriented, a goal is viewed as something they should be doing, and they tend to focus on avoiding potential problems (e.g., exercising to avoid health threats). This self-regulatory focus leads to a vigilant strategy aimed at avoiding losses (the presence of negatives) and approaching non-losses (the absence of negatives).

On the other hand, a promotion focus views goals as “ideals,” and emphasizes hopes, accomplishments, and advancement needs. Here, people view their goals as something they want to do that will bring them added pleasure (e.g., exercising because being healthy allows them to do more activities). This type of orientation leads to the adoption of an eager strategy concerned with approaching gains (the presence of positives) and avoiding non-gains (the absence of positives).

To compare these two strategies, consider the goal of saving money. Prevention-focused people will save money because they believe it’s what they should be doing (an ought), and because they’re concerned about not having any money (avoiding a harm). Promotion-focused people, on the other hand, will save money because they want to have extra funds (a desire) so they can do new and fun activities (attaining an advancement). Although these two strategies result in very similar behaviours, emphasizing potential losses will motivate individuals with a prevention focus, whereas emphasizing potential gains will motivate individuals with a promotion focus. And these orientations — responding better to either a prevention or promotion focus — differ across individuals (chronic regulatory focus) and situations (momentary regulatory focus; Higgins, 1997).

Brands Applying Prevention or Promotion Orientations

Marketing Professional Farah Khan, says every marketer needs to understand that different consumers can respond differently to the same marketing strategy (Khan, 2015). How? The difference lies in how we perceive goals in relation to our personal values and believes (Khan, 2015). Prevention Orientation – or as Khan calls it, “Play to not lose” seeks ways to stay safe and secure; while Promotion Orientation – or “Play to win” – is all about risk and advancement.

Prevention Orientation: Avoiding Negative Outcomes

Marketers tailor their messages to consumers in order to appeal to their unique approaches to achieving goals. For example, consumers who are largely motivated to avoid harm/losses, act responsibly, and minimize damage, may be drawn to brands such as the ones below, which use persuasive messaging to highlight the avoidance of negative outcomes:

• The Body Shop & LUSH Cosmetics ( cruelty-free).
• Patagonia ( avoids excessive waste and environmentally harmful production practices ).
• Thrift clothing stores, such as The Goodwill ( sustainability; up-cycling ).
• Vape accessories ( reduced-risk smoking experience ).

Promotion Orientation: Seeking Rewards and Positive Outcomes

On the other hand, consumers with a promotion-focused goal orientation seek to maximize gain, benefit, and reward. Brands that appeal to these consumers may include:

• Axe Body Spray ( enhance attractiveness ).
• Birchbox ( personalized delivery of beauty products ).
• Dove ( promotes high self-esteem ).
• Music festivals and concerts ( memory-making experiences ).

Motivational Conflicts

Motivational conflict (or ambivalence) arises when people experience two goals that are incompatible with each other (Baker, Dickson, & Field, 2014). Consumers often find themselves in a state of conflict when two or more competing goals conflict with each other.

The three main types of motivational conflicts are:

• Approach-Approach: conflict occurs when a person must choose between two desirable choices (Solomon, 2017). If the goal is to take a vacation, you might be stuck between two really good options: a beach holiday or an alpine ski trip.
• Approach-Avoidance: conflict occurs when a person desires something, but also seeks to avoid it at the same time. This type of conflict carries both positive and negative outcomes for the consumer, such as eating delicious (yet unhealthy) junk food.
• Avoidance-Avoidance: conflict occurs when a person is faced to choose between two equally undesirable choices, both of which carry negative outcomes. Spending a sunny summer weekend studying for an exam or getting a failing grade on that exam are both very unpleasant outcomes!

Text Attributions

• The opening paragraph; the sections on “Goals” and “Prevention & Promotion” are adapted from: Fishbach, A. & Touré-Tillery, M. (2021). “ Motives and Goals “. In R. Biswas-Diener & E. Diener (Eds), Noba textbook series: Psychology. Champaign, IL: DEF publishers.

Baker, S., Dickson, J.M. & Field, M. (2004). Implicit priming of conflicting motivational orientations in heavy drinkers. BMC Psychology, 2, 28. https://doi.org/10.1186/s40359-014-0028-1.

Deci, E. L., & Ryan, R. M. (1985). The general causality orientations scale–Self-determination in personality. Journal of Research in Personality, 19 (2), 109–134.

Fishbach, A., & Ferguson, M. F. (2007). The goal construct in social psychology. In A. W. Kruglanski & E. T. Higgins (Eds.), Social psychology: Handbook of basic principles , 490–515. New York, NY: Guilford Press.

Higgins, E. T. (1997). Beyond pleasure and pain. American Psychologist, 52 (12), 1280–1300.

Khan, F. (2015, January 4). Consumer Persuasion Based on Promotion Or Prevention Focused Goals .  LinkedIn. https://www.linkedin.com/pulse/consumer-persuasion-based-promotion-prevention-focused-farah-khan/

Kruglanski, A. W. (1996). Goals as knowledge structures. In P. M. Gollwitzer & J. A. Bargh (Eds.), The psychology of action: Linking cognition and motivation to behavior, 599–618. New York, NY: Guilford Press.

Lewin, K. (1935). A dynamic theory of personality: Selected papers (D. E. Adams & K. E. Zener, Trans). New York, NY: McGraw Hill.

Solomon, M., White, K. & Dahl, D.W. (2017). Consumer Behaviour: Buying, Having, Being Seventh Canadian Edition. Pearson Education Inc.

A goal represents how we would like things to turn out, also known as a desired end state.

The psychological energy, or driving force, that pushes us to pursue our goal(s).

The tendency to take action and pursue a goal (motivation) because the process itself will be beneficial and fulfilling.

The tendency to take action and pursue a goal (motivation) because the outcome and achievement itself will be beneficial.

A basic deficiency (lacking of) an essential item, such as food, water, and shelter.

Identifying specific and personal criteria on a need and how it should be fulfilled.

Needs that are considered practical and useful.

Needs that are considered luxurious and highly desirable.

Also known as "consumer remorse" or "consumer guilt", this is an unsettling feeling consumers may experience post-purchase if they feel their actions are not aligned with their needs.

A self-regulatory orientation we use emphasizes goals as things we should be doing as well as things we should be avoiding. This orientation focuses on safety, responsibility, and security needs as well as avoiding problems, dangers, and potential threats.

A self-regulatory orientation we use emphasizes goals as things we are hopeful about as well as things that bring accomplishment and advancement to our needs. This orientation focuses on things that we want to do that will bring us pleasure and positive outcomes.

In a marketing context, these different types of conflicts exist when consumers are faced with making a choice between purchasing decisions that bring on different outcomes -- positive and/or negative. The three motivational conflicts are approach-approach; approach-avoidance; and, avoidance-avoidance.

Introduction to Consumer Behaviour Copyright © by Andrea Niosi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Share This Book

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Individual Consumer Decision Making

29 Consumer Decision Making Process

An organization that wants to be successful must consider buyer behavior when developing the marketing mix. Buyer behavior is the actions people take with regard to buying and using products. Marketers must understand buyer behavior, such as how raising or lowering a price will affect the buyer’s perception of the product and therefore create a fluctuation in sales, or how a specific review on social media can create an entirely new direction for the marketing mix based on the comments (buyer behavior/input) of the target market.

The Consumer Decision Making Process

Once the process is started, a potential buyer can withdraw at any stage of making the actual purchase. The tendency for a person to go through all six stages is likely only in certain buying situations—a first time purchase of a product, for instance, or when buying high priced, long-lasting, infrequently purchased articles. This is referred to as complex decision making .

For many products, the purchasing behavior is a routine affair in which the aroused need is satisfied in a habitual manner by repurchasing the same brand. That is, past reinforcement in learning experiences leads directly to buying, and thus the second and third stages are bypassed. This is called simple decision making .

However, if something changes appreciably (price, product, availability, services), the buyer may re-enter the full decision process and consider alternative brands. Whether complex or simple, the first step is need identification (Assael, 1987).

When Inertia Takes Over

Need Recognition

Whether we act to resolve a particular problem depends upon two factors: (1) the magnitude of the discrepancy between what we have and what we need, and (2) the importance of the problem. A consumer may desire a new Cadillac and own a five-year-old Chevrolet. The discrepancy may be fairly large but relatively unimportant compared to the other problems they face. Conversely, an individual may own a car that is two years old and running very well. Yet, for various reasons, they may consider it extremely important to purchase a car this year. People must resolve these types of conflicts before they can proceed. Otherwise, the buying process for a given product stops at this point, probably in frustration.

Once the problem is recognized it must be defined in such a way that the consumer can actually initiate the action that will bring about a relevant problem solution. Note that, in many cases, problem recognition and problem definition occur simultaneously, such as a consumer running out of toothpaste. Consider the more complicated problem involved with status and image–how we want others to see us. For example, you may know that you are not satisfied with your appearance, but you may not be able to define it any more precisely than that. Consumers will not know where to begin solving their problem until the problem is adequately defined.

Marketers can become involved in the need recognition stage in three ways. First they need to know what problems consumers are facing in order to develop a marketing mix to help solve these problems. This requires that they measure problem recognition. Second, on occasion, marketers want to activate problem recognition. Public service announcements espousing the dangers of cigarette smoking is an example. Weekend and night shop hours are a response of retailers to the consumer problem of limited weekday shopping opportunities. This problem has become particularly important to families with two working adults. Finally, marketers can also shape the definition of the need or problem. If a consumer needs a new coat, do they define the problem as a need for inexpensive covering, a way to stay warm on the coldest days, a garment that will last several years, warm cover that will not attract odd looks from their peers, or an article of clothing that will express their personal sense of style? A salesperson or an ad may shape their answers

Information Search

After a need is recognized, the prospective consumer may seek information to help identify and evaluate alternative products, services, and outlets that will meet that need. Such information can come from family, friends, personal observation, or other sources, such as Consumer Reports, salespeople, or mass media. The promotional component of the marketers offering is aimed at providing information to assist the consumer in their problem solving process. In some cases, the consumer already has the needed information based on past purchasing and consumption experience. Bad experiences and lack of satisfaction can destroy repeat purchases. The consumer with a need for tires may look for information in the local newspaper or ask friends for recommendation. If they have bought tires before and was satisfied, they may go to the same dealer and buy the same brand.

Information search can also identify new needs. As a tire shopper looks for information, they may decide that the tires are not the real problem, that the need is for a new car. At this point, the perceived need may change triggering a new informational search. Information search involves mental as well as the physical activities that consumers must perform in order to make decisions and accomplish desired goals in the marketplace. It takes time, energy, money, and can often involve foregoing more desirable activities. The benefits of information search, however, can outweigh the costs. For example, engaging in a thorough information search may save money, improve quality of selection, or reduce risks. The Internet is a valuable information source.

Evaluation of Alternatives

After information is secured and processed, alternative products, services, and outlets are identified as viable options. The consumer evaluates these alternatives , and, if financially and psychologically able, makes a choice. The criteria used in evaluation varies from consumer to consumer just as the needs and information sources vary. One consumer may consider price most important while another puts more weight (importance) upon quality or convenience.

Using the ‘Rule of Thumb’

Consumers don’t have the time or desire to ponder endlessly about every purchase! Fortunately for us, heuristics , also described as shortcuts or mental “rules of thumb”, help us make decisions quickly and painlessly. Heuristics are especially important to draw on  when we are faced with choosing among products in a category where we don’t see huge differences or if the outcome isn’t ‘do or die’.

Heuristics are helpful sets of rules that simplify the decision-making process by making it quick and easy for consumers.

Common Heuristics in Consumer Decision Making

• Save the most money: Many people follow a rule like, “I’ll buy the lowest-priced choice so that I spend the least money right now.” Using this heuristic means you don’t need to look beyond the price tag to make a decision. Wal-Mart built a retailing empire by pleasing consumers who follow this rule.
• You get what you pay for: Some consumers might use the opposite heuristic of saving the most money and instead follow a rule such as: “I’ll buy the more expensive product because higher price means better quality.” These consumers are influenced by advertisements alluding to exclusivity, quality, and uncompromising performance.
• Stich to the tried and true: Brand loyalty also simplifies the decision-making process because we buy the brand that we’ve always bought before. therefore, we don’t need to spend more time and effort on the decision. Advertising plays a critical role in creating brand loyalty. In a study of the market leaders in thirty product categories, 27 of the brands that were #1 in 1930 were still at the top over 50 years later (Stevesnson, 1988)! A well known brand name is a powerful heuristic .
• National pride: Consumers who select brands because they represent their own culture and country of origin are making decision based on ethnocentrism . Ethnocentric consumers are said to perceive their own culture or country’s goods as being superior to others’. Ethnocentrism can behave as both a stereotype and a type of heuristic for consumers who are quick to generalize and judge brands based on their country of origin.
• Visual cues: Consumers may also rely on visual cues represented in product and packaging design. Visual cues may include the colour of the brand or product or deeper beliefs that they have developed about the brand. For example, if brands claim to support sustainability and climate activism, consumers want to believe these to be true. Visual cues such as green design and neutral-coloured packaging that appears to be made of recycled materials play into consumers’ heuristics .

The search for alternatives and the methods used in the search are influenced by such factors as: (a) time and money costs; (b) how much information the consumer already has; (c) the amount of the perceived risk if a wrong selection is made; and (d) the consumer’s predisposition toward particular choices as influenced by the attitude of the individual toward choice behaviour. That is, there are individuals who find the selection process to be difficult and disturbing. For these people there is a tendency to keep the number of alternatives to a minimum, even if they have not gone through an extensive information search to find that their alternatives appear to be the very best. On the other hand, there are individuals who feel it necessary to collect a long list of alternatives. This tendency can appreciably slow down the decision-making function.

Consumer Evaluations Made Easier

The evaluation of alternatives often involves consumers drawing on their evoke, inept, and insert sets to help them in the decision making process.

The brands and products that consumers compare—their evoked set – represent the alternatives being considered by consumers during the problem-solving process. Sometimes known as a “consideration” set, the evoked set tends to be small relative to the total number of options available. When a consumer commits significant time to the comparative process and reviews price, warranties, terms and condition of sale and other features it is said that they are involved in extended problem solving. Unlike routine problem solving, extended or extensive problem solving comprises external research and the evaluation of alternatives. Whereas, routine problem solving is low-involvement, inexpensive, and has limited risk if purchased, extended problem solving justifies the additional effort with a high-priced or scarce product, service, or benefit (e.g., the purchase of a car). Likewise, consumers use extensive problem solving for infrequently purchased, expensive, high-risk, or new goods or services.

As opposed to the evoked set, a consumer’s inept set represent those brands that they would not given any consideration too. For a consumer who is shopping around for an electric vehicle, for example, they would not even remotely consider gas-guzzling vehicles like large SUVs.

The inert set represents those brands or products a consumer is aware of, but is indifferent to and doesn’t consider them either desirable or relevant enough to be among the evoke set. Marketers have an opportunity here to position their brands appropriately so consumers move these items from their insert to evoke set when evaluation alternatives.

The selection of an alternative, in many cases, will require additional evaluation. For example, a consumer may select a favorite brand and go to a convenient outlet to make a purchase. Upon arrival at the dealer, the consumer finds that the desired brand is out-of-stock. At this point, additional evaluation is needed to decide whether to wait until the product comes in, accept a substitute, or go to another outlet. The selection and evaluation phases of consumer problem solving are closely related and often run sequentially, with outlet selection influencing product evaluation, or product selection influencing outlet evaluation.

While many consumers would agree that choice is a good thing, there is such a thing as “too much choice” that inhibits the consumer decision making process. Consumer hyperchoice is a term used to describe purchasing situations that involve an excess of choice thus making selection for difficult for consumers. Dr. Sheena Iyengar studies consumer choice and collects data that supports the concept of consumer hyperchoice. In one of her studies, she put out jars of jam in a grocery store for shoppers to sample, with the intention to influence purchases. Dr. Iyengar discovered that when a fewer number of jam samples were provided to shoppers, more purchases were made. But when a large number of jam samples were set out, fewer purchases were made (Green, 2010). As it turns out, “more is less” when it comes to the selection process.

The Purchase Decision

After much searching and evaluating, or perhaps very little, consumers at some point have to decide whether they are going to buy.

Anything marketers can do to simplify purchasing will be attractive to buyers. This may include minimal clicks to online checkout; short wait times in line; and simplified payment options. When it comes to advertising marketers could also suggest the best size for a particular use, or the right wine to drink with a particular food. Sometimes several decision situations can be combined and marketed as one package. For example, travel agents often package travel tours with flight and hotel reservations.

To do a better marketing job at this stage of the buying process, a seller needs to know answers to many questions about consumers’ shopping behaviour. For instance, how much effort is the consumer willing to spend in shopping for the product? What factors influence when the consumer will actually purchase? Are there any conditions that would prohibit or delay purchase? Providing basic product, price, and location information through labels, advertising, personal selling, and public relations is an obvious starting point. Product sampling, coupons, and rebates may also provide an extra incentive to buy.

Actually determining how a consumer goes through the decision-making process is a difficult research task.

Post-Purchase Behaviour

All the behaviour determinants and the steps of the buying process up to this point are operative before or during the time a purchase is made. However, a consumer’s feelings and evaluations after the sale are also significant to a marketer, because they can influence repeat sales and also influence what the customer tells others about the product or brand.

Keeping the customer happy is what marketing is all about. Nevertheless, consumers typically experience some post-purchase anxiety after all but the most routine and inexpensive purchases. This anxiety reflects a phenomenon called cognitive dissonance . According to this theory, people strive for consistency among their cognitions (knowledge, attitudes, beliefs, values). When there are inconsistencies, dissonance exists, which people will try to eliminate. In some cases, the consumer makes the decision to buy a particular brand already aware of dissonant elements. In other instances, dissonance is aroused by disturbing information that is received after the purchase. The marketer may take specific steps to reduce post-purchase dissonance. Advertising that stresses the many positive attributes or confirms the popularity of the product can be helpful. Providing personal reinforcement has proven effective with big-ticket items such as automobiles and major appliances. Salespeople in these areas may send cards or may even make personal calls in order to reassure customers about their purchase.

Media Attributions

• The graphic of the “Consumer Decision Making Process” by Niosi, A. (2021) is licensed under CC BY-NC-SA and is adapted from Introduction to Business by Rice University.

Text Attributions

• The sections under the “Consumer Decision Making Process,” “Need Recognition” (edited), “Information Search,” “Evaluation of Alternatives”; the first paragraph under the section “Selection”; the section under “Purchase Decision”; and, the section under “Post-Purchase Behaviour” are adapted from Introducing Marketing [PDF] by John Burnett which is licensed under CC BY 3.0 .
• The opening paragraph and the image of the Consumer Decision Making Process is adapted from Introduction to Business by Rice University which is licensed under a Creative Commons Attribution 4.0 International License .
• The section under “Using the ‘Rule of Thumb'” is adapted (and edited) from Launch! Advertising and Promotion in Real Time [PDF] by Saylor Academy which is licensed under CC BY-NC-SA 3.0 .

Assael, H. (1987). Consumer Behavior and Marketing Action (3rd ed.), 84. Boston: Kent Publishing.

Green, P. (2010, March 17). An Expert on Choice Chooses. The New York Times. https://www.nytimes.com/2010/03/18/garden/18choice.html.

Consumer purchases made when a (new) need is identified and a consumer engages in a more rigorous evaluation, research, and alternative assessment process before satisfying the unmet need.

Consumer purchases made when a need is identified and a habitual ("routine") purchase is made to satisfy that need.

Purchasing decisions made out of habit.

The first stage of the Consumer Decision Making Process, need recognition takes place when a consumer identifies an unmet need.

The second stage of the Consumer Decision Making Process, information search takes place when a consumer seeks relative information that will help them identify and evaluate alternatives before deciding on the final purchase decision.

The third stage of the Consumer Decision Making Process, the evaluation of alternatives takes place when a consumer establishes criteria to evaluate the most viable purchasing option.

Also known as "mental shortcuts" or "rules of thumb", heuristics help consumers by simplifying the decision-making process.

A small set of "go-to" brands that consumers will consider as they evaluate the alternatives available to them before making a purchasing decision.

The brands a consumer would not pay any attention to during the evaluation of alternatives process.

The brands a consumer is aware of but indifferent to, when evaluating alternatives in the consumer decision making process. The consumer may deem these brands irrelevant and will therefore exclude them from any extensive evaluation or consideration.

A term that describes a purchasing situation in which a consumer is faced with an excess of choice that makes decision making difficult or nearly impossible.

A type of cognitive inconsistency, this term describes the discomfort consumers may feel when their beliefs, values, attitudes, or perceptions are inconsistent or contradictory to their original belief or understanding. Consumers with cognitive dissonance related to a purchasing decision will often seek to resolve this internal turmoil they are experiencing by returning the product or finding a way to justify it and minimizing their sense of buyer's remorse.

Introduction to Consumer Behaviour Copyright © 2021 by Andrea Niosi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Share This Book

Module 7: Consumer Behavior

Reading: the “black box” of consumer behavior, introduction.

The relationship between the customer (also called the buyer) and the provider (the seller) forms through a phenomenon called a market exchange. During the exchange process, each party assesses the relative trade-offs they must make to satisfy their respective needs and wants. On the part of the seller, the trade-offs are guided by company polices and objectives. For example, company policy may dictate that it can proceed with an exchange only when the profit margin is 10 percent or greater. The buyer—the other party in the exchange—also has policies and objectives that guide his or her decisions in an exchange. For individual buyers, these are usually unwritten personal policies and objectives that people make at each stage of a purchasing decision based on the information and options available to them.  Even more likely, individuals often are not fully conscious of what prompts them to behave in a particular manner.

Essential Questions About Buyer Behavior

Buyers are essential partners in the exchange process. Without them, exchanges would stop. Buyers are the focus of successful marketing; their needs and wants are the reason for marketing. Without an understanding of buyer behavior, it isn’t possible to tailor an offering to the demands of potential buyers. When potential buyers are not satisfied, exchange does not proceed, and the goals of the marketer are not met. As long as buyers have free choice and competitive offerings from which to choose, they are ultimately in control of the marketplace.

A market can be defined as a group of potential buyers with needs and wants and the purchasing power to satisfy them. During the exchange process, the potential buyers “vote” (usually with their dollars) for the market offering they feel best meets their needs. When marketers understand how buyers arrive at a decision, they can create offerings that will attract buyers. Two key questions a marketer needs to answer related to buyer behavior are:

• How do potential buyers go about making purchase decisions?
• What factors influence their decision process and in what way?

The answers to these two questions form the basis for the design of a market offering.

When we use the term “buyer,” we are referring to an individual, group, or organization that engages in market exchange. In fact, there are differences in the characteristics of these three entities and how they behave in an exchange. Therefore, individuals and groups are traditionally placed in the consumer category, while organization is the second category. This module will first discuss consumer purchasing decisions, followed by business-to-business purchasing decisions.

Opening the “Black Box” of Consumer Behavior

Consumer behavior refers to buyers who are purchasing products for personal, family, or group use. Over time, marketers have turned to the work of behavioral scientists, philosophers, economists, social psychologists, and others to help them understand consumer behavior. As a result, there are many different theories and models used to explain why consumers act as they do. Are consumers fundamentally active or passive? Rational or emotional? How do they make buying decisions?

The Economic Man Theory

One early theory of consumer decision making based on principles of economics is known as the “economic man.”  According to the “economic man” model, consumers are rational and narrowly self-interested. This theory assumes people act selfishly as consumers, always trying to maximize the benefits they derive from the exchange process. (This theory asserts that the seller/producer is also an economic man, who always strives to maximize his profits from an exchange.) The economic man model suggests consumers actively use information about all the available options before making a decision to purchase.

Although this model may help explain some consumer decisions, most would agree it is too simplistic to explain every consumer choice. In fact, people often make decisions based on irrational factors as well. For example, some consumers may be heavily influenced by word-of-mouth information from friends or peers. They might choose something because of herd mentality rather than because it provides the greatest objective value. Similarly, many people are averse to change, and so they make suboptimal consumer choices because a familiar choice seems easier or safer.

The Stimulus-Response Model

Another model of consumer behavior, called the stimulus-response or “black box” model, focuses on the consumer as a thinker and problem solver who responds to a range of external and internal factors when deciding whether or not to buy. These factors are shown in Figure 1, below:

Figure 1. Black Box Model

As illustrated in the figure above, the external stimuli that consumers respond to include the marketing mix and other environmental factors in the market. The marketing mix (the four Ps) represents a set of stimuli that are planned and created by the company. The environmental stimuli are supplied by the economic, political, and cultural circumstances of a society. Together these factors represent external circumstances that help shape consumer choices.

The internal factors affecting consumer decisions are described as the “black box.” This “box” contains a variety of factors that exist inside the person’s mind. These include characteristics of the consumer, such as their beliefs, values, motivation, lifestyle, and so forth. The decision-making process is also part of the black box, as consumers come to recognize they have a problem they need to solve and consider how a purchasing decision may solve the problem. As a consumer responds to external stimuli, their “black box” process choices based on internal factors and determine the consumer’s response–whether to purchase or not to purchase.

Like the economic man model, this model also assumes that regardless of what happens inside the black box (the consumer’s mind), the consumer’ response is a result of a conscious, rational decision process. Many marketers are skeptical of this assumption and think that consumers are often tempted to make irrational or emotional buying decisions. In fact, marketers understand that consumers’ irrationality and emotion are often what make them susceptible to marketing stimuli in the first place.

For this reason, consumer purchasing behavior is considered by many to be a mystery or “black box.” When people themselves don’t fully understand what drives their choices, the exchange process can be unpredictable and difficult for marketers to understand.

Buyer Behavior As Problem Solving

A common way for marketers to think about consumer behavior today is as a set of activities a person goes through in order to solve problems. This problem-solving process is triggered when a consumer identifies some unmet need. For instance, a family consumes all of the milk in the house, or a birthday party is coming up and a gift is needed, or a soccer team is planning an end-of-season picnic. Each buying scenario presents a problem the buyer must solve. These problems can involve two types of needs: physical (such as a need for milk, a birthday gift, or picnic food) or psychological (for example, the need to feel secure, the need to be loved, or the need to have fun).

This problem-solving process also involves needs and wants. A need is a basic deficiency for an essential item. You need food, water, air, security, and so forth. A want  places specific, personal criteria on how a need must be fulfilled. To illustrate, when we are hungry, food is a need. When we have a specific food item in mind, that item is a want. That difference is illustrated by the familiar scenario of standing in front of a full refrigerator and complaining that there is nothing to eat.

Most of marketing is in the want-fulfilling business, not the need-fulfilling business. Swatch and Timex do not want you to buy just any watch. They want you to want their brands of watches. Likewise, H&M wants you to desire their brand of clothing when you shop for clothes. On the other hand, the American Cancer Association markets to you in the hope that you will feel the need to get a checkup, and it doesn’t care which doctor you go to. But in the end, marketing is mostly about creating and satisfying wants .

This model of consumer behavior acknowledges that both rational and irrational factors may shape a buyer’s purchasing decisions. It also recognizes that internal and external factors play a role in the decision process. In fact, the problem-solving model helps us map a consistent process individuals go through as they make buying decisions. When marketers understand this process and the factors that influence it, they can take action to influence buyer perceptions and behavior at various stages of the process.

The next reading will discuss the stages of the decision-making process in greater detail.

• Revision and adaptation. Provided by : Lumen Learning. License : CC BY: Attribution
• Chapter 4: Understanding Buyer Behavior, from Introducing Marketing. Authored by : John Burnett. Located at : http://solr.bccampus.ca:8001/bcc/file/ddbe3343-9796-4801-a0cb-7af7b02e3191/1/Core%20Concepts%20of%20Marketing.pdf . License : CC BY: Attribution
• Homo economicus. Provided by : Wikipedia. Located at : https://en.wikipedia.org/wiki/Homo_economicus . License : CC BY-SA: Attribution-ShareAlike
• Black Box. Provided by : Pixabay. Located at : https://pixabay.com/en/black-box-container-cardboard-box-310220/ . License : CC0: No Rights Reserved
• Consumer Behaviour. Provided by : Wikipedia. Located at : https://en.wikipedia.org/wiki/Consumer_behaviour#Black_box_model . License : CC BY-SA: Attribution-ShareAlike

• Skip to main content
• Skip to primary sidebar
• Skip to footer
• QuestionPro

• Solutions Industries Gaming Automotive Sports and events Education Government Travel & Hospitality Financial Services Healthcare Cannabis Technology Use Case NPS+ Communities Audience Contactless surveys Mobile LivePolls Member Experience GDPR Positive People Science 360 Feedback Surveys
• Resources Blog eBooks Survey Templates Case Studies Training Help center

Consumer Behavior Models: Types & 5 Stages

Consumer behavior models are like tools that help you understand why people buy things when they buy them and how they decide to make a purchase. 

When you use these models to guide your efforts in getting new customers, you can make pretty good guesses about who will buy your product and ensure you’re reaching out to the right folks at the right moment. So, these models are like a map showing you the way to more successful sales.

In this blog, we will learn about different types of consumer behavior models, why it is important for businesses, and also discuss the stages of these models.

What is Consumer Behavior?

Consumer behavior is the examination of how customers make decisions when choosing products to fulfill their needs. 

It involves studying the behaviors and actions that lead consumers to purchase and use specific products. This understanding is of utmost significance for marketers, enabling them to align more effectively with customer expectations and preferences.

What is a consumer behavior model?

Consumer behavior models are like a map that helps us understand why people buy things. It’s a simplified way of looking at how consumers make choices. Think of it as a roadmap to figure out why someone picks one product over another. 

These buying behavior models show a person’s steps when deciding to buy something. They often include things like recognizing a need, searching for information, thinking about options, and finally making a decision.

These models are super useful for companies because they can follow the map to see how customers make choices. This helps businesses make better products, set the right prices, create effective ads, and choose where to sell their stuff. In a nutshell, a buyer behavior model is like a guide that shows how people decide what to buy, which is really beneficial for businesses.

Why Understanding Consumer Behavior Matters

Understanding consumer behavior matters for several important reasons:

Product development

Businesses can create products and services that align with your preferences and needs when they understand what you want. This leads to better-designed products that are more likely to meet your expectations, resulting in increased satisfaction and loyalty.

Targeted marketing

Consumer behavior insights allow companies to tailor their marketing efforts to what resonates with them. This means you’re more likely to come across advertisements and promotions that genuinely interest you, making your experience as a consumer more enjoyable.

Pricing strategies

Knowing how you perceive the value of products or services helps companies set appropriate prices. They can avoid overpricing, making products more affordable, or they can use premium pricing for products that they see as high-quality. This pricing intelligence helps both you and businesses find mutually beneficial deals.

Optimized distribution

Understanding your behavior helps businesses determine where and how to make their products available. They can ensure that their products are accessible to you where and when you are most likely to buy, whether in physical stores, e-commerce platforms, or other channels.

Enhanced customer experience

By leveraging insights into your purchasing behavior, businesses can provide you with a more personalized and satisfying customer experience . This might involve tailoring product recommendations, streamlining the buying process, or improving customer service. When businesses get you, it leads to a happier and more loyal customer like yourself.

Understanding consumer behavior is a cornerstone of effective marketing and business strategy, with benefits that extend to both you and your businesses. It results in better products, more relevant marketing, fair pricing, convenient access to products, and an improved overall shopping experience for you.

Types of consumer behavior models

Certainly, consumer behavior models come in various types, each offering a distinct perspective on how and why consumers make choices. Here are common types of customer behavior models:

Traditional consumer behavior model

Learning model.

The learning model is like a guide that explains how you pick things when you go shopping. It’s all about how you learn and make choices based on your experiences. Think of it like this: when you have a good experience with a product, like a yummy ice cream flavor, you remember it. 

So, the next time you’re buying ice cream, you might pick the same flavor because you learned that it’s tasty. These consumer behavior models help us understand that our past experiences play a big role in our shopping decisions. It’s like your shopping memory helping you choose what you like!

Economic Model

Economic models are like tools that help you make smart choices when you’re shopping. It’s all about finding the best deal for your money. Think of it this way: you want to get the most value from your cash. 

So, you look at things like the price, your budget, and the quality of the product. If a product gives you a lot of happiness for a fair price, you’re more likely to choose it. These models help you shop wisely by considering your decisions’ economics, ensuring you get the most bang for your buck!

Psychoanalytical model

The psychoanalytical model is a bit like a detective for your shopping choices. It tries to figure out why you buy certain things based on your hidden feelings and desires. Imagine it’s like there’s a secret shopper inside your head. This model believes that even you might not know why you make some choices.

It suggests that deep inside, your wishes and emotions are guiding your shopping decisions. So, when you pick a product, it might be because it connects with something you didn’t even realize you wanted. This model helps uncover those hidden reasons behind your purchases, kind of like a shopping detective!

Sociocultural Models

Sociocultural consumer behavior models are like the puzzle pieces that make up your shopping decisions. They focus on how your family, friends, and the world around you influence what you choose to buy. Imagine you’re like a sponge, soaking up ideas from your surroundings. 

This sociological model says that the culture you live in, the traditions you follow, and even the opinions of your friends and family can affect your shopping choices. So, when you pick a product, it might be because it fits with what’s familiar or what people around you think is a good choice. These models help us see how the world outside you shapes your shopping adventure!

Contemporary consumer behavior models

Engel-kollat-blackwell (ekb) model.

The Engel-Kollat-Blackwell (EKB) model is like a roadmap for your shopping journey. It helps you understand all the steps you go through when deciding to buy something.

• Recognizing a problem: First, you realize that you need or want something, like a new phone or a pair of shoes. This model acknowledges that you’re like a detective, searching for what’s missing in your life.
• Gathering information: Next, you start gathering facts, like reading reviews or asking friends for advice. It’s like you’re collecting clues to solve a mystery.
• Evaluating options: You compare different products, considering things like features, prices, and quality. This step is a bit like being a judge at a talent show, trying to find the best contestant.
• Making a choice: Eventually, you make a decision and choose a product. It’s like casting your vote for the best candidate.
• Post-purchase evaluation: After buying, you think about whether you’re happy with your choice. It’s like reflecting on how well your favorite team performed after a game.

This model helps you see that shopping is a step-by-step process, kind of like following a treasure map with a final “X” that marks your purchase.

Black Box Model

The Black Box model is like a magic box that helps you understand your shopping decisions. Imagine it as a mysterious container with inputs, processes inside, and outputs.

• Inputs (Stimuli): This is where everything begins. It’s like all the things that catch your attention when you’re shopping – ads, recommendations, and product displays. It’s like someone handing you a riddle to solve.
• Inside the Black Box: Inside this magical box, something interesting happens, but you can’t see exactly what. It’s where your brain works its magic, processing all the information you’ve gathered. It’s like your thoughts are a secret recipe, mixing all the ingredients together.
• Outputs: This is where your decision comes out. You make a choice, like picking a product to buy or deciding not to. It’s like solving the riddle from the beginning, and your answer is your decision.

Hawkins Stern Impulse Buying Model

The “Hawkins Stern Impulse Buying Model” challenges the idea that you always make carefully thought-out decisions before buying something. It also sorts impulse buying into different types:

• Escape purchase: Sometimes, you see something that’s just too visually appealing to resist, even if you didn’t plan to buy it when you made your shopping list.
• Reminder purchase: You might get influenced by in-store promotions or reminders, like those bag clips strategically placed in the potato chip aisle that make you realize you need them.
• Suggested purchase: Social media ads, store employees, or even your family and friends might suggest things to you. For example, a website might suggest that other customers bought a lens cleaner and glasses case with their glasses, and you decide to get them, too.
• Planned purchase: Occasionally, you plan to buy something, and when the store offers a discount or a promotion deal, you go ahead and get it.

Many business professionals like to use this consumer behavior modeling because, let’s face it, we all make impulse purchases from time to time. For them, it’s a way to focus on in-store marketing, product packaging, and discounts.

Howard Sheth Model

The “Howard Sheth Model” explains that when you make a purchase, there’s a specific decision-making process with certain factors that influence it. 

Marketing and business development professionals find this model useful in most industries because, as a consumer, you may follow this process when buying any product or service. This decision-making process involves three levels:

• Extensive problem-solving: Imagine you know very little about the product you want to buy and the companies that make it. You use your problem-solving skills to figure out what’s available and what the market offers.
• Limited problem-solving: As you learn more about the product and compare different options, you’re at this level. It’s like you’re becoming a savvy shopper, checking out what various companies have to offer.
• Habitual response behavior: At this stage, you know a lot about the product you want and how to get it. It’s almost like second nature; you’re very familiar with the product and the available ways to buy it.

This consumer behavior models help professionals understand your decision-making process when you’re making a purchase, regardless of the product or service. It guides them in tailoring their strategies to meet your specific needs at each stage of the process.

Stages of the consumer behavior model

The consumer behavior models typically consist of five main stages:

Stage 01: Problem recognition

This is when you become aware of a need or desire for a product or service. It might occur when you realize you’re running low on a particular item, your current product no longer satisfies your needs, or when you spot something new that catches your attention.

Stage 02: Information search

Once you’ve recognized the problem or need, you start looking for information on potential solutions. You gather data from various sources, like doing online research, asking friends and family, reading reviews, or visiting stores.

Stage 03: Evaluation of alternatives

At this point, you compare the available options. You carefully weigh the benefits and drawbacks of different products or brands to figure out which one aligns best with your needs and preferences.

Stage 04: Purchase decision

After evaluating the alternatives, you make the decision about which product or brand to buy. This is where you commit and complete the purchase.

Stage 05: Post-purchase evaluation

Once you’ve made the purchase, you reflect on your decision. You consider whether the product or service meets your expectations and if you’re satisfied with your choice. This stage can influence your buying decisions and your perception of the brand.

These stages create a framework for understanding your journey as a consumer, from recognizing a need to making a purchase and evaluating your satisfaction afterward. Businesses and marketers use this model to tailor their strategies at each stage to meet your needs and expectations effectively.

How does QuestionPro help in creating consumer behavior models?

QuestionPro is a versatile survey and research platform that can significantly help in creating customer behavior models. Here’s how it can help:

Problem recognition

• Survey design: QuestionPro allows you to design surveys that help identify consumer needs and desires. You can create questions that uncover what triggers consumers to recognize a problem or a need.

Information search

• Data collection: You can use QuestionPro to collect consumer insights behavior data about how consumers search for information. Online surveys and feedback forms can help you understand where consumers go to gather information and what sources they trust.

Evaluation of alternatives

• Segmentation: QuestionPro’s segmentation features help you categorize consumers into different groups based on their preferences. This is invaluable for understanding how various segments evaluate alternatives differently.
• Advanced analytics: Use the platform’s analytical tools to delve into consumer evaluations. Analyze how consumers weigh pros and cons when making decisions.

Purchase decision

• Feedback integration: Integrate feedback from various touchpoints, including e-commerce platforms, to understand the factors that influence the final purchase decision.
• Survey customization: Create surveys that specifically explore what factors led to the purchase decision. QuestionPro’s customization features enable you to target these questions accurately.

Post-purchase evaluation

• Continuous feedback: Use QuestionPro to set up ongoing surveys that gather post-purchase feedback. This helps you understand if consumers are satisfied with their choices and if they would make the same decision again.
• Reporting: Utilize QuestionPro’s reporting and visualization tools to present your post-purchase evaluation findings effectively.

Consumer behavior models are not just theoretical frameworks; they are powerful tools businesses use to understand their customers better. By unlocking the secrets of consumer behavior, companies can create successful strategies that lead to higher customer satisfaction and improved overall performance.

Throughout the entire process of creating consumer behavior models, QuestionPro serves as a comprehensive platform for survey design, data collection, segmentation, analytics, feedback integration, and reporting. 

It empowers you to collect and analyze data that is crucial for understanding consumer behavior, helping you build more accurate and insightful models. So, the next time you want to create a model for your business, remember that QuestionPro is always there to make your consumer behavior model excellent!

LEARN MORE         FREE TRIAL

MORE LIKE THIS

Event Feedback Software: Top 11 Best in 2024

Apr 9, 2024

Top 10 Free Market Research Tools to Boost Your Business

Best 15 Behavior Analytics Tools to Explore Your User Actions

Apr 8, 2024

Top 7 Concept Testing Tools to Elevate Your Ideas in 2024

Other categories.

• Academic Research
• Artificial Intelligence
• Assessments
• Brand Awareness
• Case Studies
• Communities
• Consumer Insights
• Customer effort score
• Customer Engagement
• Customer Experience
• Customer Loyalty
• Customer Research
• Customer Satisfaction
• Employee Benefits
• Employee Engagement
• Employee Retention
• Friday Five
• General Data Protection Regulation
• Insights Hub
• Life@QuestionPro
• Market Research
• Mobile diaries
• Mobile Surveys
• New Features
• Online Communities
• Question Types
• Questionnaire
• QuestionPro Products
• Release Notes
• Research Tools and Apps
• Revenue at Risk
• Survey Templates
• Training Tips
• Uncategorized
• Video Learning Series
• What’s Coming Up
• Workforce Intelligence

Definition and examples of the consumer decision-making process

Lucid Content

Reading time: about 6 min

What is the consumer decision making process

The consumer decision-making process involves five basic steps. This is the process by which consumers evaluate making a purchasing decision. The 5 steps are problem recognition, information search, alternatives evaluation, purchase decision and post-purchase evaluation.

5 steps of the consumer decision making process

• Problem recognition : Recognizes the need for a service or product
• Information search : Gathers information
• Alternatives evaluation : Weighs choices against comparable alternatives
• Purchase decision : Makes actual purchase
• Post-purchase evaluation : Reflects on the purchase they made

The consumer decision-making process can seem mysterious, but all consumers go through basic steps when making a purchase to determine what products and services will best fit their needs. 

Think about your own thought process when buying something—especially when it’s something big, like a car. You consider what you need, research, and compare your options before making the decision to buy. Afterward, you often wonder if you made the right call. 

If you work in sales or marketing, make more of an impact by putting yourself in the customer’s shoes and reviewing the steps in the consumer decision-making process.

Steps in the consumer decision process

Generally speaking, the consumer decision-making process involves five basic steps.

1. Problem recognition

The first step of the consumer decision-making process is recognizing the need for a service or product. Need recognition, whether prompted internally or externally, results in the same response: a want. Once consumers recognize a want, they need to gather information to understand how they can fulfill that want, which leads to step two.

But how can you influence consumers at this stage? Since internal stimulus comes from within and includes basic impulses like hunger or a change in lifestyle, focus your sales and marketing efforts on external stimulus. 

Develop a comprehensive brand campaign to build brand awareness and recognition––you want consumers to know you and trust you. Most importantly, you want them to feel like they have a problem only you can solve.

Example: Winter is coming. This particular customer has several light jackets, but she’ll need a heavy-duty winter coat if she’s going to survive the snow and lower temperatures.

2. Information search

When researching their options, consumers again rely on internal and external factors, as well as past interactions with a product or brand, both positive and negative. In the information stage, they may browse through options at a physical location or consult online resources, such as Google or customer reviews.

Your job as a brand is to give the potential customer access to the information they want, with the hopes that they decide to purchase your product or service. Create a funnel and plan out the types of content that people will need. Present yourself as a trustworthy source of knowledge and information. 

Another important strategy is word of mouth—since consumers trust each other more than they do businesses, make sure to include consumer-generated content, like customer reviews or video testimonials, on your website.

Example: The customer searches “women’s winter coats” on Google to see what options are out there. When she sees someone with a cute coat, she asks them where they bought it and what they think of that brand.

3. Alternatives evaluation

At this point in the consumer decision-making process, prospective buyers have developed criteria for what they want in a product. Now they weigh their prospective choices against comparable alternatives.

Example: The customer compares a few brands that she likes. She knows that she wants a brightly colored coat that will complement the rest of her wardrobe, and though she would rather spend less money, she also wants to find a coat made from sustainable materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the purchase. Once they have gathered all the facts, including feedback from previous customers, consumers should arrive at a logical conclusion on the product or service to purchase.

If you’ve done your job correctly, the consumer will recognize that your product is the best option and decide to purchase it.

Example: The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand uses sustainable materials and asking friends for their feedback, she orders the coat online.

5. Post-purchase evaluation

This part of the consumer decision-making process involves reflection from both the consumer and the seller. As a seller, you should try to gauge the following:

• Did the purchase meet the need the consumer identified?
• Is the customer happy with the purchase?
• How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues to have a positive experience with your product. Post-purchase engagement could include follow-up emails, discount coupons, and newsletters to entice the customer to make an additional purchase. You want to gain life-long customers, and in an age where anyone can leave an online review, it’s more important than ever to keep customers happy.

Tools to better understand your customer

Putting yourself in the customer’s shoes can help you steer consumers towards your product. Here are some tools to help you analyze their decision-making process and refine your brand marketing and sales tactics.

Customer journey map

A customer journey map visualizes a hypothetical customer’s actions. Use it to empathize with your customers as they go through a specific process or try to complete a purchase. Map out the actions the customer is likely to take.

Learn how to make a customer journey map to understand the decision-making process for your product/service.

Empathy map

Empathy maps help teams understand the customer’s mindset when dealing with a product or service. They can be used for personas or specific customer types. Empathy mapping is often most helpful at the beginning of a new project. Collaborate as a team to quickly get inside the heads of your customers during every step of product development, testing, and release.

Learn how empathy maps work so you can understand your customers better and make customer-oriented decisions .

User personas

Based on user research or past user interactions, user persona cards construct fictional or composite personas that break down and organize your data into distinctive types of users. Build a more human picture of your users and understand your user base better by creating user personas for the various types of users for your product or service.

Understanding the consumer decision-making process is key if you want to attract more customers and get them to make that crucial purchase. Use this process and the tools above to tune in to consumers and genuinely understand how to reach them.

Visualize your own customer journey map.

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

Related articles

Use this guide to learn how to make a decision tree in Microsoft Excel—either directly in Excel using Shapes or using a simple Lucidchart integration.

Whether you specialize in a specific marketing role or you wear many different hats on a small team, we’ve rounded up nine marketing templates to make your job easier.

Bring your bright ideas to life.

or continue with

3.3 The Consumer Purchasing Decision Process

Learning outcomes.

By the end of this section, you will be able to:

• 1 Explain the first stage in the consumer purchasing decision process.
• 2 Summarize the second stage in the consumer purchasing decision process.
• 3 Describe the third stage in the consumer purchasing decision process.
• 4 Discuss the fourth stage in the consumer purchasing decision process.
• 5 Explain the fifth and final stage in the consumer purchasing decision process.

Consumer Decision Process

This chapter has examined many of the factors that influence consumer buying behavior, but behind the visible act of making a purchase lies an important decision process that takes place before, during, and after the purchase of a product or service. Figure 3.12 shows the five stages of the consumer decision process .

A buyer passes through five stages of the consumer decision process when making choices about which products or services to buy. Let’s examine each, starting at the beginning.

Stage 1: Need Recognition

The buying process starts when you sense a difference between your actual state and your desired state. This is referred to as problem awareness or need recognition. You might become aware of a need through internal stimuli (such as feeling hungry or thirsty when you’re on a long road trip) or external stimuli (such as passing a bakery and smelling the wonderful aroma of cookies baking).

Sometimes recognizing the problem or need is easy. You’ve run out of toilet paper or milk. But other times recognizing the problem or issue is more complicated. For example, think about this first stage in terms of your decision to enroll in college. What was the stimulus that triggered your interest in attending college? Are you a working adult who has recognized that upward advancement in your company won’t happen without possessing a college degree? Have you long aspired to be an entrepreneur, and you wanted to get some business and marketing courses under your belt so that you’re better prepared for the challenges of entrepreneurship? Perhaps a career in marketing has been on your internal radar since high school, and you’ve decided to take the plunge and get your degree in marketing. Or perhaps, after graduating from high school, your parents gave you an ultimatum—either find a job or enroll in college.

Stage 2: Information Search

Now that you’ve identified the problem or need, you’ll be inclined to search for more information. There are two different search states. The milder search state is called “heightened attention,” in which you become more receptive to information about the product or service. The stronger search state is called “active information search,” in which you might do some research about the product or service on the Internet (referred to as an internal search), ask friends and/or family members their opinions (what’s known as an external search), or even visit stores to view and touch the product (called an experiential search).

Keep in mind, of course, that not all needs/problems identified in Stage 1 will require this second stage. If you’ve run out of bread or toilet paper, you’re probably not going to do an information search; rather, you’ll just go to the store to buy what you need, and your information search may be as simple as checking prices at the grocery store to see if your favorite brand is available or another brand is on sale. However, purchase decisions of more consequence will usually trigger an information search of some type.

Again, consider the process you went through in deciding which college to attend. What sources of information did you use to find out about the colleges or universities you considered attending? Did you look at their websites, talk with friends or family who attended that school, or perhaps even visit the campus and meet with an admissions counselor?

Stage 3: Evaluation of Alternatives

Consumers are said to view a product or service as a “bundle of product attributes,” and you evaluate several attributes of a product or service in reaching your purchase decision. For example, if you’re buying a smartphone, you’ll consider factors such as battery life, speed, storage capacity, or price. If you’re booking a hotel, you’ll probably consider its location, cleanliness, free Wi-Fi, whether it has a free breakfast in the morning or a pool, and of course price.

What bundle of attributes did you use when evaluating your college alternatives? You may have considered factors such as location, size of the campus, whether the school had the program of study you wanted, if it had online learning, and cost.

Stage 4: Purchase Decision

This stage involves actually reaching a decision on the purchase of the product or service. One way people navigate all the information, evaluations, and choices in their purchase decision is to use heuristics —mental shortcuts or “rules of thumb.” Heuristics are types of preexisting value judgments that people use to make decisions.

For example, do you believe that the more expensive product is always of higher quality than the lower-priced product? That’s known as the price = quality heuristic. Brand loyalty is another heuristic people use in reaching their purchase decisions. For example, do you eat cereal? Do you always buy the same brand, or do you buy whatever’s on sale or a brand for which you have a coupon? Country of origin is still another heuristic. Given a choice, do you prefer to buy products made in the United States versus products made in other countries?

How did you make your purchase decision to enroll in your college or university? What heuristics did you use?

Stage 5: Post-Purchase Evaluation

After purchasing the product or service, you’ll experience either satisfaction or dissatisfaction. You may have second thoughts after making a purchase decision, and these doubts lead to cognitive dissonance , or buyer’s remorse—tension caused by uncertainty about the correctness of your decision. This may lead you to search for additional information to confirm the wisdom of your decision in order to reduce that tension.

What determines if a consumer is very satisfied, somewhat satisfied, or dissatisfied with his or her purchase? Satisfaction is a function of the closeness between the buyer’s expectations and the product’s perceived performance. If the product’s performance falls short of expectations, you’ll be dissatisfied. If the product’s performance meets your expectations, you’ll be satisfied, and if the product’s performance exceeds your expectations, you’ll be very satisfied.

Think about the purchase decision you made when you decided to enroll in your college or university. Are you very satisfied, satisfied, or dissatisfied with your decision? Refer to Table 3.1 for a summary of the five stages of the consumer decision process.

Careers In Marketing

You are also a consumer.

Learn about the five stages of the consumer decision process in this video from Open Up (Upatras) Entrepreneurship and this article from Business Study Notes .

GWI , a company that researches global consumer thinking, published its 2022 consumer trends report , which showed that consumers’ needs and priorities have shifted. Read the report and see if you find the same results for yourself. Have your priorities and needs changed since the pandemic hit? What are the other factors influencing your needs assessment?

Several tools can help you with a personal needs assessment. Practice your marketing skills on yourself by trying this needs assessment worksheet . This personal awareness will help you in many ways, including finding the right job that best fits your interests and abilities. Also take a few assessments and compare your results to better identify jobs worth learning more about. There are several free career aptitude tests to try:

• 123 Career Test
• Interest Assessment
• Work Values Matcher
• A Personality Color Test

In addition to career aptitude tests, personality tests assess your skill level and your ability to succeed in a career. Try a few of these:

• Typology Central Jung Personality Test
• Myers-Briggs Type Indicator

The Balance Careers site also provides a wealth of resources on additional aptitude, personality, talent, and preemployment tests. It’s worth your time to dive into this information to help you identify which career might be your best fit.

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Problem identification
• Post-purchase evaluation
• It is the mental conflict that occurs when a person’s behaviors and beliefs do not align.
• It is a mental shortcut that allows people to solve problems and make judgments more quickly and efficiently.
• It is a function of the closeness between your expectations of a product or service and its actual performance.
• It is the process of assigning the cause of behavior to either internal or external characteristics.

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

• Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
• Publisher/website: OpenStax
• Book title: Principles of Marketing
• Publication date: Jan 25, 2023
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
• Section URL: https://openstax.org/books/principles-marketing/pages/3-3-the-consumer-purchasing-decision-process

© Jan 9, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

Four Modes of Consumer Decision Making

Extended problem solving

Extended problem solving customer decision – making mode relates to a situation where customers lack experience in a specific consumption setting, nevertheless, the setting is perceived by them as a highly involving. The products are usually of a high value and they also contribute to an individual’s social status, however, their purchase is often associated with significant amount of risk in terms of making improper purchase decision. Purchasing the first car or the first house can be mentioned as instances for extended problem solving.

Limited problem solving

Customer decision – making mode of limited problem solving , relates to a situation where both, customer experience, as well as, the level of their involvement are low. Considered to be the most common mode of decision – making, it lacks systematic approach in terms of decision – making. Examples for this mode of decision – making might include searching for and purchasing products and services associated with pest control within private properties.

In other words, as Perrey and Spillecke (2011) confirm, limited problem – solving customer decision – making mode relate to situations where customers are attempting to find appropriate solutions to their unpleasant issues. Retailers often attempt to attract such type of customers by employing a range of marketing techniques that include introducing discount vouchers, offering free samples etc.

Habit or variety seeking

Habit or variety seeking is the customer decision – making mode where a decision is not involving, however, there are high amount of repeated purchases from a specific brand. For example, the purchase of a specific brand of a dishwasher gel can be repeated over a long period of time in a habitual manner, without re-considering the value associated with the brand even when there are more valuable alternatives have emerged in the market.

Variety seeking relates to instances where customer moves to another brand within a given product category. At the same time, interestingly, “from one purchase occasion to the next, the individual  will switch brands from within this set, just for the sake of variety” (O’Guinn et al, 2011, p.175).

Brand loyalty

Customers with a decision – making mode of brand loyalty practice high level of involvement in decision – making and they also possess high level of experience with a particular brand. Instances of brand loyalty customer decision – making mode include using specific brand of cigarettes for a long period of time.

According to Cant et al (2009), factors effecting customer brand loyalty in retail setting include brand name, the quality of products and services, price and style of products, environment of the store, the level and nature of promotion offered, and the quality of customer services provided. Considerable amount of financial resources are usually invested by leading retailers in order to enhance their brand image and therefore increase their long-term growth prospects.

• Cant, M.C., Strydom, J.W. & Jooste, C.J. (2009) “Marketing Management” Juta Publications
• O’Guinn, T.C., Allen, C.T. & Semenik, R.J. (2011) “Advertising and Integrated Brand Promotion” Cengage Learning
• Perrey, J & Spillecke, D. (2011) “Retail Marketing and Branding: A Definitive Guide to Maximising ROI” John Wiley & Sons

If you still have questions or prefer to get help directly from an agent, please submit a request. We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

• Marketing, Advertising, Sales & PR
• Principles of Marketing

Types of Consumer Decision - Explained

What types of decisions do Consumers Make?

Written by Jason Gordon

Updated at August 22nd, 2021

• Marketing, Advertising, Sales & PR Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
• Accounting, Taxation, and Reporting Managerial & Financial Accounting & Reporting Business Taxation
• Professionalism & Career Development
• Law, Transactions, & Risk Management Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
• Business Management & Operations Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
• Economics, Finance, & Analytics Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles

Table of Contents

What are the types of consumer decisions.

Consumer decisions can be categorized into three primary types: 

• Routinized Response - This is the kind of decision where you don't really have to think much about it. 
• Limited Problem Solving - This type of purchase decision involves a little more thinking or a little more consideration. 
• Extensive Problem Solving - This is when we're making a decision to purchase and we are really going to labor over that decision. 

Each of these is discussed further below. 

Please enable JavaScript

What is a Routinized Response?

This is the kind of decision where you don't really have to think much about it. That is, it's a routine. In the context of making a purchase, this is when we make the decision to purchase without going through the consumer decision-making process. Generally, it means we simply follow or repeat a previous course of action. Think of going to the store and buying the same type or brand of grocery item that you buy every week. You do this as a routine, rather than identifying alternatives and comparing them. 

What is Limited Problem Solving?

This type of purchase decision involves a little more thinking or a little more consideration. Maybe we consider different products in making our purchase. Maybe we consider how much to buy. Whatever our considerations, we're going to spend more time and effort making this decision or making this purchase. 

What is Extensive Problem Solving?  

This is when we're making a decision to purchase and we are really going to labor over that decision. That is, we are really going to consider it thoroughly. We may do a great deal of research. We may consult friends or look at customer reviews. We generally use this approach when it is something that we have never bought before, its very technical in nature,  or when it is a very expensive item (like a car). Generally, this type of decision involves the most time, information, and effort in the evaluation of alternatives.

Related Articles

• Marketing Mix - Explained
• Captive Pricing - Explained
• Marketing Ethics - Explained
• Publicity - Explained

Search form

You are here.

BUYER BEHAVIOR AS PROBLEM SOLVING

Consumer behavior refers to buyers who are purchasing for personal, family, or group use. Consumer behavior can be thought of as the combination of efforts and results related to the consumer's need to solve problems. Consumer problem solving is triggered by the identification of some unmet need. A family consumes all of the milk in the house or the tires on the family care wear out or the bowling team is planning an end-of-the-season picnic. This presents the person with a problem which must be solved. Problems can be viewed in terms of two types of needs: physical (such as a need for food) or psychological (for example, the need to be accepted by others).

Although the difference is a subtle one, there is some benefit in distinguishing between needs and wants. A need is a basic deficiency given a particular essential item. You need food, air, security, and so forth. A want is placing certain personal criteria as to how that need must be fulfilled. Therefore, when we are hungry, we often have a specific food item in mind. Consequently, a teenager will lament to a frustrated parent that there is nothing to eat, standing in front of a full refrigerator. Most of marketing is in the want-fulfilling business, not the need-fulfilling business. Timex does not want you to buy just any watch, they want you to want a Timex brand watch. Likewise, Ralph Lauren wants you to want Polo when you shop for clothes. On the other hand, the American Cancer Association would like you to feel a need for a check-up and does not care which doctor you go to. In the end, however, marketing is mostly interested in creating and satisfying wants.

• The Decision Process
• Influencing Factors of Consumer Behavior
• ABOUT THE AUTHOR
• BALANCED COVERAGE
• INTERNATIONAL AND TECHNOLOGY COVERAGE
• CURRENT EXAMPLES FROM ALL TYPES AND SIZES OF BUSINESS
• A CLEAR, EFFECTIVE ORGANIZATION
• HELPFUL PEDAGOGY
• ACKNOWLEDGMENTS
• ELVIS-ALIVE AND WELL
• INTRODUCTION
• Defining Marketing Newsline: Picture your mission
• Justification for Study Review
• Consumer Content
• Company Capabilities
• Communication
• Competition Integrated marketing
• Cross-Functional Contact
• Community Contact
• Macromarketing Versus Micromarketing
• Service Marketing Versus Goods Marketing
• For-profit Marketing Versus Nonprofit Marketing
• Mass Marketing, Direct Marketing, and Internet Marketing
• Local, Regional, National, International, and Global Marketers
• Consumer Goods Marketing and Business-to-Business (Industrial) Marketing Review
• Functional-Level Considerations
• The Marketing Plan
• The Marketing Mix
• Evaluating Results
• KEYS TO MARKETING SUCCESS Review The Wall Street Journal (wsj.com) Questions
• THE HOG IS ALIVE AND WELL
• THE WEB SEGMENT
• The Market Is People
• The Market Is a Place
• The Market Is an Economic Entity
• Consumer Markets
• Industrial Markets
• Institutional Markets
• Reseller Markets
• The Undifferentiated Market (Market Aggregation)
• Product Differentiation
• Segmentation Strategies Review
• Bases of Segmentation
• Segmenting Ultimate Consumers Integrated marketing
• Single-base and Multi-base Segmentation
• Qualifying Customers in Market Segments
• The Concept of Positioning
• The Future of the Marketplace Review The Wall Street Journal (wsj.com) Questions
• ROLLING ROCK FINDS ITS NICHE
• DISCOVERING WHY THEY CHEW
• THE NATURE AND IMPORTANCE OF MARKETING RESEARCH
• WHAT NEEDS RESEARCHING IN MARKETING? Newsline: How execs use research Review
• Determining the Purpose and Scope of the Research
• The Informal Assessment
• Choosing the Approach
• Determining the Types of Data Needed
• Locating the Sources of Data
• Choosing the Method of Collecting Data Newsline: Where's the beef?
• Selecting the Sample
• Anticipating the Results/Making the Report
• CONDUCTING THE RESEARCH
• PROCESSING THE DATA
• THE VALUE OF MARKETING RESEARCH Integrated marketing The Wall Street Journal (wsj.com) Questions Review
• RESEARCH SAVES THE DAY AT CASE
• TILL DEATH DO US PART
• BUYER BEHAVIOR AND EXCHANGE
• Need Identification
• Information Search and Processing Integrated marketing
• Information Processing
• Identification and Evaluation of Alternatives
• Product/Service/Outlet Selection
• The Purchase Decision Newsline: Follow the consumer and see what happens
• Postpurchase Behavior Review
• Buying Task
• Market Offerings
• Demographic Influences
• Social Class
• Reference Groups
• Learning and Socialization
• Lifestyle Review
• Characteristics of Organizational Buying
• Stages in Organizational Buying Newsline: The future of the consumer Review The Wall Street Journal (wsj.com) Questions
• CUSTOMER SATISFACTION STILL MATTERS
• THE CAR INDUSTRY AND TECHNOLOGY
• External Surprises
• Competitors
• Product Liability
• Deregulation
• Consumer Protection
• Consumer Buying Power Newsline: Everyone seems to have money
• Technology Integrated marketing
• Demographic Changes
• The Baby Boom
• Generation X
• The Baby Boomlet
• Cultures and Subcultures Review
• Understanding Other Cultures Around the World
• Forecasts of the Future The Wall Street Journal (wsj.com) Questions
• CASE APPLICATION
• GOOD LUCK GETTING INTO CHINA
• DEFINING INTERNATIONAL MARKETING
• STANDARDIZATION AND CUSTOMIZATION
• REASONS FOR ENTERING INTERNATIONAL MARKETS
• REASONS TO AVOID INTERNATIONAL MARKETS
• Joint Ventures
• Direct Investment
• US Commercial Centers Review
• Trade Intermediaries
• The Corporate Level
• The Business Level
• The Functional Level
• Product/Promotion
• Distribution and Logistics Review
• Customs and Taboos
• Business Norms Integrated marketing
• Religious Beliefs
• Political Stability
• Monetary Circumstances
• Trading Blocs and Agreements
• Expropriation
• The Technological Environment
• The Economic Environment
• Marketing Objectives The Wall Street Journal (wsj.com) Questions
• UNILEVER'S GLOBAL BRAND
• JAPANESE CARS ON THE DECLINE
• DEFINING THE PRODUCT
• Classification of Consumer Goods
• Classification of Industrial Goods
• Simultaneous Production and Consumption
• Little Standardization
• High Buyer Involvement
• The Determination of Product Objectives
• The Product Lifecycle
• Approaches to the Market
• Product Features
• Related Services
• Product Mix Strategies
• Product Line Decisions
• Product Deletion Integrated marketing
• The Consumer's Viewpoint
• The Firm's Viewpoint
• Internal Sources
• External Sources
• Step 1: Generating New Product Ideas Newsline: New ideas are rare
• Step 2: Screening Product Development Ideas
• Step 3: Business Analysis
• Step 4: Technical and Marketing Development
• Step 5: Manufacturing Planning
• Step 6: Marketing Planning
• Step 7: Test Marketing Integrated marketing
• Step 8: Commercialization Review The Wall Street Journal (wsj.com) Questions
• HERSHEY CHOCOLATE MILK
• AMERICAN EXPRESS: COMMUNICATING BIG IDEAS
• Primary Tasks Integrated marketing
• Integrated Marketing Communication
• THE MEANING OF MARKETING COMMUNICATION
• THE OBJECTIVES OF MARKETING COMMUNICATION
• Interpersonal Communication Systems
• Organizational Communication Systems
• Public Communication Systems
• Mass Communication Systems
• Marketing Communications
• The Promotion Mix
• The Campaign Review
• The Advertising Department
• The Advertising Agency
• Developing the Creative Strategy
• Stating Media Objectives
• Evaluating Media
• Selection and Implementation
• Determining the Media Budget
• Banner Advertisements
• Types of Sales Promotion
• Public Relation's Publics
• Public Relations Techniques Review
• Inside Versus Outside Selling
• Company Salespeople Versus Manufacturer Representatives
• Direct Versus Indirect Selling
• The Selling Process Review
• Strengths and Weaknesses of Personal Selling
• The Sales Force of the Future Newsline: New toys for sales success? The Wall Street Journal (wsj.com) Questions
• THE MICRORECORDER
• THE MCDONALD'S EFFECT
• The Customer's View of Price
• Rational Man Pricing: An Economic Perspective
• Irrational Man Pricing: Freedom Rules
• The Marketer's View of Price
• PRICING OBJECTIVES Review
• Nonprice Competition
• Pricing to Meet Competition
• Pricing Above Competitors
• Pricing Below Competitors
• New Product Pricing Newsline: The risk of free PCs
• PRICE LINES
• Discounts and Allowances Integrated marketing
• PRICE BUNDLING
• PSYCHOLOGICAL ASPECTS OF PRICING Review
• Cost-Oriented Pricing: Cost-Plus and Mark-Ups
• Break-Even Analysis
• Target Rates of Return
• Demand-Oriented Pricing
• Value-Based Pricing Review
• The Future of Pricing The Wall Street Journal (wsj.com) Questions
• UNITED TECHTRONICS
• SAM SIGHTINGS ARE EVERYWHERE
• THE DUAL FUNCTIONS OF CHANNELS
• THE EVOLUTION OF THE MARKETING CHANNEL
• FLOWS IN MARKETING CHANNELS
• FUNCTIONS OF THE CHANNEL
• Producer and Manufacturer
• Department Stores
• Chain Stores
• Supermarkets
• Discount Houses
• Warehouse Retailing
• Planned Shopping Centers/Malls Newsline: The mall: a thing of the past?
• Nonstore Retailing Integrated marketing
• Functions of the Wholesaler
• Types of Wholesalers
• Physical Distribution Review
• Conventional Channels
• Administered VMS
• Contractual VMS
• Corporate VMS
• Horizontal Channel Systems
• Analyze the Consumer
• Establish the Channel Objectives
• Specify Distribution Tasks
• Number of Levels
• Intensity at Each Level
• Types of Intermediaries
• Who Should Lead
• Correcting or Modifying the Channel
• Power Review The Wall Street Journal (wsj.com) Questions
• CONNECTING CHANNEL MEMBERS
• Photo Credits

This action cannot be undo.

Choose a delete action Empty this page Remove this page and its subpages

Content is out of sync. You must reload the page to continue.

New page type Book Topic Interactive Learning Content

• Config Page
• Add Page Before
• Add Page After
• Delete Page

• Consumer Behavior Tutorial
• Consumer Behavior - Home
• Consumer Behavior - Consumerism
• Consumer Behavior - Significance
• Demand Analysis
• Buying Decision Process
• Developing Marketing Concepts
• Marketing Strategies
• Market Segmentation
• Market Positioning
• Role of Research
• Problem Recognition
• Research Paradigm
• Research Process
• Decision Making
• Pre-Purchase & Post-Purchase
• Individual Determinants
• Consumer Behavior - Motivation
• Personality & Self Concept
• Attention & Perception
• Consumer Behavior - Learning
• Consumer Behavior - Attitude
• External Influence
• Influence of Culture & Social Class
• Relationship Marketing
• Reference Group
• Models of Consumer Behavior
• Consumer Behavior - Models Types
• Implications of Marketing Models
• Online Customer Behavior
• Consumer Behavior - Expectations
• Emerging Trends
• Emerging Issues
• Consumer Behavior - Cross Culture
• Consumer Behavior Resources
• Consumer Behavior - Quick Guide
• Consumer Behavior - Resources
• Consumer Behavior - Discussion
• Selected Reading
• UPSC IAS Exams Notes
• Developer's Best Practices
• Questions and Answers
• Effective Resume Writing
• HR Interview Questions
• Computer Glossary

Consumer Behavior - Problem Recognition

Business managers need to be skilled, have expertise in problem recognition and solution techniques to be the greatest help in guiding their company towards greater success.

In problem recognition, the consumer recognizes a problem or need or want. The buyer recognizes a difference between his or her actual state and some desired state.

The need can be generated by internal stimuli when one of the person’s normal needs − hunger, thirst, sex, etc. rises to a high level sufficient to become a drive. A need can also be generated by external stimuli.

At this stage, the marketer should evaluate the consumer’s perspective by considering the basic questions like −

• What kinds of needs or problems or efforts arise.
• What brought them about and
• How it led the consumer towards the particular product.

Maslow’s Hierarchy of Needs

American Psychologist Abraham Harold Maslow believes that, needs are arranged in a hierarchy form. Only after a human has achieved the needs at a certain stage, does he move to the next one.

According to Maslow's theory, when a human being goes up the levels of the hierarchy has fulfilled the needs and wants in the hierarchy, one may ultimately achieve self-actualization. Maslow in the end concluded that, self-actualization was not a regular outcome of satisfying the other human needs. Human needs as identified by Maslow are as follow −

At the bottom of the hierarchy level are the "Basic needs or Physiological needs" of a human being − food, water, shelter, sleep, sex etc.

The next level is "Safety Needs − Security, Order, safety and Stability". These two steps are important for the physical survival of the person.

The third level of need is "Love and Belonging", which are psychological needs; when individuals have taken care of themselves physically, they are ready to share themselves with others, such as with family, friends and relatives.

The fourth level is achieved when individuals feel comfortable with what they have achieved. This is the "Esteem" level, the need to be capable and recognized, such as position, status and level of success.

The fifth level is the "Cognitive" or the "self-actualization" level, where individuals intellectually stimulate themselves and explore for their growth.

Finally, there is the "Aesthetic" level, which is the need for harmony, unity, order and beauty.