STUDY NOTES
Week 3 – study unit 3 – Understanding consumer decision making
1. Introduction: There are many factors that influence a consumer’s decision making in the
market. This unit also looks at understanding consumers behaviour towards different
products from different sellers in the market.
2. Outcomes:
Define consumer behaviour
Analyse the components of the consumer decision making process
Explain the consumers post purchase evaluation process
Identify the types of consumer buying decisions and discuss the significance of consumer
involvement
Identify and describe the individual factors that affect consumer buying decisions
Describe the role that a purchase situation can play in buyer behaviour
3. Notes:
The importance of understanding consumer behaviour
- Consumer behaviour describes how consumers make purchase decisions and how
they use and dispose of the purchased goods and services
- In order to have a consumer-oriented marketing concept, we need to know and
understand what consumers needs and wants are.
Factors influencing consumer buying decisions
- Cultural factors
Culture - a set of basic values, perceptions, wants and behaviours learned by a
member of society from family and other important institutions. EG. South
African culture – the way we speak, slang that we use etc.
Subculture – a group of people with shared value systems based on common life
experiences. EG. Racial group, religions etc
Social class – divisions in society whose members share similar values, interests
and behaviours. Measured by income, occupation, education etc. consumers
have distinct products and brand preference for products like clothing, cars, etc
- Social factors
Groups and social networks – a group consists of 2 or more people who interact
to accomplish goals. There’s membership groups (has a direct influence and to
which people belong, for example: similar hobbies, age or work) and reference
, groups (serves as direct or indirect points of reference in developing a persons
attitude or behaviour (friends). Social networks are online social communities
where people socialise or exchange information, for example YouTube.
Family – family members have a strong influence on purchase decisions
Roles and status – a role consist of activities people are expected to perform
according to people around them. Each role carries a status.
- Personal factors – buyer’s decisions are also influenced by personal characteristics
such as:
Age and life cycle – over a lifetime peoples tastes and preferences change and
that shapes our buying behaviour
Occupation – goods and services bought may be affected by a person’s
occupation. People purchase according to how much they earn.
Economic situation – product choice is affected by a consumer’s economic
situation. In times of recession, people don’t have disposable income and
marketers need to be able to see and understand that by looking at
repositioning or repricing products.
Lifestyle – a person’s pattern of living based on their activities (work, hobbies,
social events) and their interests and opinions (about themselves or products or
social issues). Consumers purchase the value that a product gives them.
Personality and self-concept – each person’s unique personality influences their
buying behaviour. Brands also have personalities, like some perfumes can be
viewed as conservative or extravagant, so they will be matched with consumers
who share the same personalities.
- Psychological factors – 4 major variables: motivation, perception, learning, beliefs
and attitudes
Motivation – a need is something that is sufficiently pressing which directs the
person to seek satisfaction of the need. A need becomes a motive when it is
aroused by a level of intensity. A motive is a need that is sufficiently pressing and
directs a person to seek satisfaction. There are 2 popular psychologists Sigmund
Freud and Abraham Maslow that have theories of human motivation:
# Freuds theory - motivation theory proposes that unconscious psychological
forces, such as hidden desires and motives, shape an individual's behaviour, like
their purchasing patterns.
#Maslows theory - Maslow proposed that motivation is the result of a person's
attempt at fulfilling five basic needs: physiological, safety, social, esteem and
self-actualization. According to Maslow, these needs can create internal
pressures that can influence a person's behaviour.
Week 3 – study unit 3 – Understanding consumer decision making
1. Introduction: There are many factors that influence a consumer’s decision making in the
market. This unit also looks at understanding consumers behaviour towards different
products from different sellers in the market.
2. Outcomes:
Define consumer behaviour
Analyse the components of the consumer decision making process
Explain the consumers post purchase evaluation process
Identify the types of consumer buying decisions and discuss the significance of consumer
involvement
Identify and describe the individual factors that affect consumer buying decisions
Describe the role that a purchase situation can play in buyer behaviour
3. Notes:
The importance of understanding consumer behaviour
- Consumer behaviour describes how consumers make purchase decisions and how
they use and dispose of the purchased goods and services
- In order to have a consumer-oriented marketing concept, we need to know and
understand what consumers needs and wants are.
Factors influencing consumer buying decisions
- Cultural factors
Culture - a set of basic values, perceptions, wants and behaviours learned by a
member of society from family and other important institutions. EG. South
African culture – the way we speak, slang that we use etc.
Subculture – a group of people with shared value systems based on common life
experiences. EG. Racial group, religions etc
Social class – divisions in society whose members share similar values, interests
and behaviours. Measured by income, occupation, education etc. consumers
have distinct products and brand preference for products like clothing, cars, etc
- Social factors
Groups and social networks – a group consists of 2 or more people who interact
to accomplish goals. There’s membership groups (has a direct influence and to
which people belong, for example: similar hobbies, age or work) and reference
, groups (serves as direct or indirect points of reference in developing a persons
attitude or behaviour (friends). Social networks are online social communities
where people socialise or exchange information, for example YouTube.
Family – family members have a strong influence on purchase decisions
Roles and status – a role consist of activities people are expected to perform
according to people around them. Each role carries a status.
- Personal factors – buyer’s decisions are also influenced by personal characteristics
such as:
Age and life cycle – over a lifetime peoples tastes and preferences change and
that shapes our buying behaviour
Occupation – goods and services bought may be affected by a person’s
occupation. People purchase according to how much they earn.
Economic situation – product choice is affected by a consumer’s economic
situation. In times of recession, people don’t have disposable income and
marketers need to be able to see and understand that by looking at
repositioning or repricing products.
Lifestyle – a person’s pattern of living based on their activities (work, hobbies,
social events) and their interests and opinions (about themselves or products or
social issues). Consumers purchase the value that a product gives them.
Personality and self-concept – each person’s unique personality influences their
buying behaviour. Brands also have personalities, like some perfumes can be
viewed as conservative or extravagant, so they will be matched with consumers
who share the same personalities.
- Psychological factors – 4 major variables: motivation, perception, learning, beliefs
and attitudes
Motivation – a need is something that is sufficiently pressing which directs the
person to seek satisfaction of the need. A need becomes a motive when it is
aroused by a level of intensity. A motive is a need that is sufficiently pressing and
directs a person to seek satisfaction. There are 2 popular psychologists Sigmund
Freud and Abraham Maslow that have theories of human motivation:
# Freuds theory - motivation theory proposes that unconscious psychological
forces, such as hidden desires and motives, shape an individual's behaviour, like
their purchasing patterns.
#Maslows theory - Maslow proposed that motivation is the result of a person's
attempt at fulfilling five basic needs: physiological, safety, social, esteem and
self-actualization. According to Maslow, these needs can create internal
pressures that can influence a person's behaviour.
