CONSUMER BEHAVIOUR

Application: Strategy, Communications, NPD/NSD, Sales Effectiveness

The Concept

It is almost impossible to market effectively without understanding how, why, and when people buy. This is not, however, as straightforward as it sounds. It is dangerously easy for a firm to institutionalize a half-baked view of buyer needs or to ignore them because it has succeeded by creating and pushing certain products or services in the past. Human beings are erratic, unpredictable creatures, driven by both their rational and emotional natures when making decisions and, particularly, when buying anything (see behavioural aspects of marketing). Sometimes they approach decisions carefully, collecting as much data as possible before they commit to a purchase; at others they return to trusted suppliers or brands; often they join in with the herd, buying to be a part of something; and sometimes they buy, whimsically, on impulse. Although they sometimes have fixed ideas of what they want, it is just as likely that they are unclear on a particular occasion or cannot articulate their needs.

“Consumer behaviour” is a discipline, sometimes seen as an adjunct field of study or semi-detached from mainstream marketing. Nevertheless, considerable research and experimentation has been conducted to understand buying motivations and behaviours. It covers such human issues as: culture, motivation, values, and attitudes. It looks at decision making, shopping, and demographics. Much of it is observed research, and closely related to behavioural aspects of marketing. It is extremely useful in giving pointers to practical sales approaches, market opportunities, or the design of marketing programmes. It seeks to understand, for instance, why customers segment, why they respond to brands, how communications affect their purchase behaviour, and a range of other dynamics such as loyalty.

Researchers in this field suggest, for example, that people might have different types of relationship with a product (self-concept attachment, nostalgic attachment, interdependence, and love). They also suggest distinct types of consumption (as an experience, for instance, or as play). The discipline has explored the influence of the five senses on desire and purchase, insights which can be very useful to different aspects of marketing. An understanding, for instance, of the influence of colour, sound, and symbols on the thinking of different segments can affect branding, packaging, and marketing communication.

When consumers shop (whether physically, by telephone, by catalogue, or through the internet) they may have a cluster of needs in their minds, which are not necessarily refined into a fixed product purchase. They might only have an intuitive, confused mix of ideas or preferences and look for the proposition that best fits them. First they become aware of a need. This may happen quickly (perhaps prompted by the breakdown of an old domestic appliance like a vacuum cleaner) or though growing awareness (like an ever-closer house move and the need to arrange a new broadband connection) or, perhaps, over time (say, by the gradual ageing of a water boiler). They will then think through what to buy, when, and how to buy it. They might, for instance, research an involved purchase through the internet or by visiting showrooms. Once they have refined their search they will discuss the potential purchase with the seller before buying.

Marketers and sales people can increase their chance of success if they are able to influence their customer’s thinking at the planning or evaluation stage. For instance, suppose a mother wants to buy a home broadband service to meet the needs of her whole family as they move house. She might be very familiar with the latest offers from seeing newspaper advertisements or receiving other forms of publicity. She might, though, savour the experience of spending a morning online, browsing through the offers of the leading suppliers. Or she might be too busy to either read adverts and direct marketing or to do her own online research. However, she is likely to have in mind a number of different attributes that her new service must include. She might consider: the style of equipment provided, the speed of connection, scope of the package (TV, telephone, and broadband), brand, contract flexibility, and price. These attributes vary in nature and importance according to individual preference, occasion, and culture. Different people will describe them differently and rank them in different orders of importance (see features analysis).

This thinking process can be represented in Figure C.3. This diagram is, though, only a very broad representation because the intensity and duration of these different stages differs according to their experience, understanding, and view of the purchase. Different and more complex models have been developed over the years to represent the thinking and behaviour of consumers. They are a powerful aid in practical marketing.

Figure C.3: A depiction of (and over-simplification of ) consumer buying

History, Context, Criticism, and Development

Specialists in this field say that it grew as a body of work in parallel with psychology and other behavioural sciences. They argue that, before the mid 20th century much thought about consumer buying behaviour was related to classical economics and impersonal market forces.

The beginnings of the current view of this field of work have been credited (see Gabbot, M. in Baker, M.J. and Hart, S. (eds), 2008) to a 1961 study by the Ford Foundation which summarized available research into economics and psychology which applied to consumer buying behaviour. This, together with studies by General Foods and Nestlé, apparently prompted academic studies into consumer buyer behaviour. The first outputs of this work were models of how people approach buying by the likes of Howard and Seth; Engel and Kollatt; and others. They began to frame the relationship of the individual to external stimulants like the social environment and the physical environment. There have since been several fascinating pieces of academic work which have explored each of these aspects and other aspects of decision making, like the influence of family, culture, and emotions.

In recent years the speciality has explored the linkage between modern, personal identity, and consumption; the idea that people get their sense of self-worth from what they buy and own (like branded luxury goods). This “philosophy of consumption” has explored the role of buying in personal identity, as part of identification with a group, and how the subtleties of culture affect identity. At the time of writing, the idea of consumption dictating identity is being challenged in the light of new values emerging around social expectations and concerns like ethical and environmental issues. Refreshingly, there is evidence that this body of work (like relationship marketing) is being integrated with classic marketing training to round out marketing communications, research, and strategy processes.

Voices and Further Reading

• “But we have to acknowledge that the behavioural sciences have not answered all of the questions. It would be most desirable to have an integrating framework to relate the various influences on buying behavior and theories about these influences. Unfortunately, we do not have such a framework. As of now, after the marketing manager has reviewed all of the behavioural data, he still has to rely on his own intuition and marketing research to help him estimate expected behavior in various market grid boxes.” McCarthy, E.J., 1975.
• Solomon, M., Bamossy, G., Askegaard, S., and Hogg, M.K., Consumer Behaviour; A European Perspective. Prentice Hall, 2006.
• “The field of consumer behaviour is young, dynamic and in flux. It is constantly being cross-fertilized by perspective from many different disciplines … it is the study of the processes involved when individuals or groups select, purchase or dispose of products, services, ideas or experiences to satisfy needs and desires.” Solomon et al., ibid.
• “Understanding consumers” by B.J. Calder in Iacobucci, D., Kellogg on Marketing. 2001.
• “Consumer behaviour” by M. Gabbot in Baker, M.J. and Hart, S. (eds), 2008.
• “… consumer behaviour is a particularly challenging field of study. Not only does it require consideration of a wide range of theoretical material and perspectives, but, like any aspect of human behaviour, it is very difficult to deal in absolutes. That having been said, it is also one of the most interesting, dynamic, challenging and frustrating areas of study … the application of marketing principles in non-traditional spheres of health, public policy, not for profit, international aid, environmental protection, and security, provides demand for more applied understanding of consumers and their consumption behaviour.” Gabbot, ibid.

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