Consumer behaviour

The extensive data from these databases allows for a detailed examination of factors influencing customer loyalty, re-purchase intentions, and other behaviors like providing referrals and becoming brand advocates.

In the 1940s and 1950s, marketing was dominated by the so-called classical schools of thought which were highly descriptive and relied heavily on case study approaches with only occasional use of interview methods.

At the end of the 1950s, two important reports criticised marketing for its lack of methodological rigor, especially the failure to adopt mathematically-oriented behavioural science research methods.

[2] In its early years, consumer behaviour was heavily influenced by motivation research, which had increased the understanding of customers, and had been used extensively by consultants in the advertising industry and also within the discipline of psychology in the 1920s, 1930s, and 1940s.

[4] In addition to these, contemporary research has delved further into the complexities of consumer behavior, incorporating innovative approaches such as neuroimaging studies and big data analytics.

[23] Consumers may choose to supplement the number of brands in the evoked set by carrying out an external search using sources such as the Internet, manufacturer/brand websites, shopping around, product reviews, referrals from peers and the like.

Potential patrons seeking a pleasant dining experience may be willing to travel further distances to patronise a fine-dining venue compared to those wanting a quick meal at a more utilitarian eatery.

'Scarcity attraction' is another technique, where the salesperson mentions that the offer is limited, as it forces the consumer to make a quicker decision and therefore spend less time evaluating alternatives.

Consumer actions, in this instance, could involve requesting a refund, making a complaint, deciding not to purchase the same brand or from the same company in the future, or even spreading negative product reviews to friends or acquaintances, possibly via social media.

Novice consumers, on the other hand, are less efficient information searchers and tend to perceive higher levels of purchase risk on account of their unfamiliarity with the brand or category.

[81] Purchasing behaviour can also be affected by external influences, such as culture, sub-culture, social class, reference groups, family, and situational determinants.

Whereas consumers in the US, UK and Australia expect to wait 12 months for a custom-made Ferrari, prospective Chinese buyers want to drive the vehicle off the showroom floor.

For example, within youth culture it is possible to identify a number of sub-groups with common interests such as skaters and bladers, surfers, ravers, punks, skin-heads, Goths, homies, and others.

Social class refers to relatively homogenous divisions in a society, typically based on socio-economic variables such as educational attainment, income, and occupation.

Social class can be very difficult to define and measure, however marketers around the world tend to use a conventional classification which divides any given population into five socio-economic quintiles (e.g.

Journalists, celebrities, and bloggers are good examples of an opinion leader due to their broad social networks and increased ability to influence people's decisions.

[93] Panic buying occurs when consumers purchase more things than usual as a consequence of adverse feelings of fear, anxiety and uncertainty surrounding a crisis or disruptive event.

[93] For example, it was reported that an Hermes store in Guangzhou, China, made US$2.7 million in the first day it opened after lockdown, where consumers' purchases ranged from leather goods, scarves and homewares to a diamond-studded Birkin bag, among other things.

[99] Namely, revenge buying of luxury products provided an emotional release and a sense of belonging, esteem, and self-actualisation during the COVID-19 pandemic, in which people were frustrated and psychologically discomforted.

"[106] Sproles and Kendall (1986) developed a consumer style inventory (CSI) consisting of eight factors, such as price-sensitivity, quality-consciousness, brand-consciousness, novelty-seeking, fashion-consciousness, and habit.

[108] Many empirical studies have observed cross-cultural variations in decision styles, leading to numerous adaptations or modifications of the CSI scale for use in specific countries.

[117] Typical risk-reduction strategies used include:[118][119] Within consumer behaviour, a particular area of interest is the study of how innovative new products, services, ideas, or technologies spread through groups.

Marketers can also facilitate adoption by offering limited scale trial (e.g. samples, test drives, sale on approval) enabling consumers to develop an understanding of the innovation and how it is used prior to purchase.

Westbrook (1987, p. 259) defines affect as a "class of mental phenomena uniquely characterised by a consciously experienced, subjective feeling state, commonly accompanying emotions and moods.

This occurs because the immediate emotional gain is a strong driver, and one that consumers can readily visualise whereas the more distant goal lacks sufficient strength to drive choice.

[153] It is relatively widely accepted that emotional responses require fewer processing resources (i.e. are easier) and also result in more enduring associations with the brand being advertised.

[158] Recognition Programs operate on a quasi-membership basis where the consumer is issued with a card that upon presentation leads to various entitlements such as free upgrades, special privileges, or access to products/services that are not normally available to non- members, and that acknowledge the loyal customer's "VIP" status.

The colours blue and black are viewed as being more reliable, valuable, and expensive while yellow, orange, and brown are associated with cheapness and low quality.

[175] Therefore, a product intended to be perceived as "high quality" with a predominately orange and brown palette would lack visual fluency and would likely fail to elicit a positive response with consumers.

However, marketers use ethnographic research to study the consumer in terms of cultural trends, lifestyle factors, attitudes and the way that social context influences product selection, consumption, and usage.

The Royal Saint-Hubert Galleries shopping arcade in Brussels , Belgium . Consumer behaviour, in its broadest sense, is concerned with how consumers select, decide and use goods and services.
Shoppers inspect the quality of fresh produce at a market in Jerusalem.
In a family unit, an adult female often makes brand choices on behalf of the entire household, while children can be important influencers.
The purchasing decision model
Purchases of up-market perfumes, often bought as gifts, are high involvement decisions because the gift symbolises the relationship between the giver and the intended recipient.
The purchase of a mobile phone may trigger the desire for accessories such as this phone mount for use in a car.
Customer purchase decision, illustrating different communications touchpoints at each stage
Consumers shopping at London's Burlington Arcade engage in a variety of recreational and functional purchasing activities - from window shopping through to transporting their purchases homewards.
Happy hour, where two drinks can be purchased for the price of one, is a strong call-to-action because it encourages consumers to buy now rather than defer purchasing to a later time.
Maslow's hierarchy suggests that people seek to satisfy basic needs such as food and shelter before higher order needs become meaningful.
A decision to purchase an analgesic preparation is motivated by the desire to avoid pain (negative motivation).
A decision to buy an ice-cream sundae is motivated by the desire for sensory gratification (positive motivation).
People with shared interests, such as skaters and bladers, tend to form informal groups known as subcultures.
Harley-Davidson enthusiasts are an example of a consumption subculture.
Members of the 'Goth' subculture share a dress code.
The family, a primary reference group, exerts a strong influence on attitudes and behaviours.
Those who shop for pleasure are said to be recreational shoppers.
The purchase of an up-market sports car carries both financial risk and social risk, because it is an expensive purchase and it makes a highly visible statement about the driver.
Facilitating trial of a product may help to alleviate risk perceptions.
Prospective purchasers carefully inspect the merchandise before purchasing expensive gold jewellery.
The diffusion of innovations according to Rogers. As successive groups of consumers adopt the innovation(shown in blue), its market share (yellow) will eventually reach saturation level.
Facilitating a 'test-drive' can encourage consumers to speed up adoption rates.
The advent of "category killers", such as Australia's Officeworks, has contributed to an increase in channel switching behaviour.
Large family-sized cakes are more likely to be a planned purchase, while the individual portions are much more likely to be an unplanned purchase.
The immediate pleasure of eating candy often outweighs the longer term benefit of a healthier food choice.
Dick and Basu's Loyalty Matrix
Frequent flyer schemes are among the most well known of the reward programs.
No Name Brand is associated with economy and affordability. Because of yellow's associations with cheapness, this brand's logo is processed fluently and easily by consumers.
Product usage studies are used to improve packaging design.
Neuromarketing uses sophisticated biometric sensors such as EEG to study consumer responses to specific stimuli.