Chapter 6. The importance of understanding consumer behavior
Consumer behavior: described how consumers make purchase decisions and how they use and
dispose of the purchased goods or services. The study of consumer behavior also includes factors
that influence purchase decisions and product use.
Value: a personal assessment of the net worth one obtains from making a purchase. So, value is
what you get minus what you give up.
Value can also mean an enduring belief shared by a society that a specific mode of conduct is
personally or socially preferable to another mode of conduct.
Purchases are made based on perceived value, which is what you expect to get.
The value received from a purchase can be broken down into 2 categories:
Utilitarian value, is derived from a product or service that helps the consumer solve
problems and accomplish tasks. It is a means to the end. Value is provided because the
purchase allows something good to happen.
Hedonic value, is an end rather than to an end. The purchase tends to give us good
feelings and satisfaction. The value is provided entirely through the experience and
emotions associated with consumption.
It can happen that a purchase gives both values.
Consumer decision making process (consumers follow this process when buying new or
expensive items):
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase
5. Post purchase behavior
1 need recognition
This is the result of an imbalance between actual and desired states. This imbalance arouses the
customer's decision-making process. A want is the recognition of an unfulfilled need and a
product that will satisfy it. Wants can be viewed in terms of 4 goals: economizing, sustaining,
treating and rewarding.
Consumer behavior: described how consumers make purchase decisions and how they use and
dispose of the purchased goods or services. The study of consumer behavior also includes factors
that influence purchase decisions and product use.
Value: a personal assessment of the net worth one obtains from making a purchase. So, value is
what you get minus what you give up.
Value can also mean an enduring belief shared by a society that a specific mode of conduct is
personally or socially preferable to another mode of conduct.
Purchases are made based on perceived value, which is what you expect to get.
The value received from a purchase can be broken down into 2 categories:
Utilitarian value, is derived from a product or service that helps the consumer solve
problems and accomplish tasks. It is a means to the end. Value is provided because the
purchase allows something good to happen.
Hedonic value, is an end rather than to an end. The purchase tends to give us good
feelings and satisfaction. The value is provided entirely through the experience and
emotions associated with consumption.
It can happen that a purchase gives both values.
Consumer decision making process (consumers follow this process when buying new or
expensive items):
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase
5. Post purchase behavior
1 need recognition
This is the result of an imbalance between actual and desired states. This imbalance arouses the
customer's decision-making process. A want is the recognition of an unfulfilled need and a
product that will satisfy it. Wants can be viewed in terms of 4 goals: economizing, sustaining,
treating and rewarding.
