1. 2
Consumer Behaviour and Target
Audience Decisions

2. Chapter Objectives
• To understand the role consumer behaviour plays
in the development and implementation of
advertising and promotional programs.
• To understand the consumer decision-making
process and how it varies for different types of
purchases.
• To understand various internal psychological
processes, their influence on consumer decision
making, and implications for advertising and
promotion.
• To understand the similarities and differences of
target market and target audience.
• To understand the various options for making a
target audience decision for marketing
communications.
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3. Consumer Behaviour
• Processes and activities which people
engage in when searching for,
selecting, purchasing, using, evaluating,
and disposing of products and services
to satisfy needs and desires.
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4. A Basic Model of Consumer Decision Making
Figure 2-1
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5. Consumer Decision Making
Decision Stage Psychological Process
Need Recognition Motivation
Information Search Perception
Alternative Evaluation Attitude Formation
Purchase Decision Integration
Postpurchase Evaluation Learning
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6. Consumer Decision Making
Decision Stage Psychological Process
Need Recognition Motivation
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7. Sources of Need Recognition
New Needs
Out of Stock Dissatisfaction
or Wants
Related Product Market-Induced New
Purchase Recognition Products
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8. Hierarchy of Human Needs: Love,
Nurturance, Belonging
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9. Sexy Ads Get Noticed
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10. Consumer Decision Making
Decision Stage Psychological Process
Need Recognition Motivation
Information Search Perception
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11. Information Search
Information
Search
Internal Search External Search
•Scan memory to •Undertaken if
recall experiences and internal search does
knowledge about past not yield enough
purchase alternatives. information.
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12. External Sources of Information
Personal
Sources
Mark
et
Sour
ces
Pub
Sou lic
rce
s
Per
Ex son
pe
rie al
nce
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13. Perception
• The process by which an individual
receives, attends to, interprets, and
stores information to create a
meaningful picture of the world.
• Marketers can formulate communication
strategies based upon how consumers
acquire and use information from
external sources.
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14. The Selective Perception Process
Selective Exposure
Selective Attention
Selective Comprehension
Selective Retention
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15. Selective Exposure
• Occurs as consumers choose whether or
not to make themselves available to
information.
– TV viewers may change channels or
leave the room during commercial
breaks.
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16. Selective Attention
• Occurs when
consumer chooses to
focus on certain
stimuli while
excluding others.
• For example,
combining colour
with black and white
grabs attention.
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17. Selective Comprehension
• Consumers may interpret information
based on their own attitudes, beliefs,
motives, and experiences.
• An ad disparaging a consumer’s
favourite product may be interpreted as
biased or untruthful.
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18. Selective Retention
• Consumers do not remember all the
information they see, hear, or read –
even after attending and
comprehending it.
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19. Advertisers Attempt to Help Consumers
Retain Information
• Mnemonics (symbols, rhymes,
associations, and images) can assist in
consumers’ learning and memory
processes.
• Example: A telephone number spelling
out the company’s name.
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20. Consumer Decision Making
Decision Stage Psychological Process
Need Recognition Motivation
Information Search Perception
Alternative Evaluation Attitude Formation
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21. Attitude Formation is Based on Evaluation of
Alternatives
All available brands
Brand A Brand B Brand C Brand D Brand E
Brand F Brand G Brand H Brand I Brand J
Brand K Brand L Brand M Brand N Brand O
Evoked Set of Brands
Brand B Brand E
Brand F Brand I
Brand M
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22. Consumers Must Evaluate Their Brand
Choices
Evaluative Criteria
Objective Subjective
Price Style
Warranty Appearance
Service Image
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23. Evaluative Criteria
Consumer View
•Product or service
viewed in terms of its
consequences.
Evaluative
Criteria
Marketer View
•Products are viewed
as bundles of
attributes.
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24. Different Perspectives: The Consumer’s View
Will the neighbors
How does it cut be impressed with
the taller grass? my lawn?
How close can I
Is it going to be as
get to the
fun to use later this
shrubs?
summer?
Will it pull
that Will I enjoy having
little trailer I more time for golf?
saw at the
store?
Product Is Seen As
Functional A Set of Outcomes Psychosocial
Functional
Consequences Consequences
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25. Attitude
• “Attitudes are learned predispositions to
respond to an object.”
– Gordon Allport
• A summary construct representing an
individual’s overall feelings toward an
object or its evaluation.
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26. Consumer Attitudes Focus on Objects
Individuals Products
Ads Brands
Attitudes
Toward:
Media Companies
Retailers Organizations
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27. Advertising, Promotion, and Attitudes
• Advertising and
promotion are used
to create favourable
attitudes, and/or
change negative
attitudes.
• Here, the ad
attempts to change
attitudes by
highlighting added
attributes.
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28. Consumer Decision Making
Decision Stage Psychological Process
Need Recognition Motivation
Information Search Perception
Alternative Evaluation Attitude Formation
Purchase Decision Integration
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29. Purchase Decision
• At some point in the buying process,
the consumer makes a purchase
decision.
– Consumer stops searching for and
evaluating alternative brands in the
evoked set.
• The purchase decision starts with a
purchase intention.
– Predisposition to buy a certain brand.
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30. Purchase Decision
• The purchase decision is not the actual
purchase.
– Consumer must implement decision and
make purchase.
– Additional decisions may be needed.
– Time delay often exists between making
a purchase decision and purchase itself.
– The time delay affects the marketing
strategy, and depends on:
• Type of purchase to be made
• Risk involved in purchase
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31. Brand Loyalty May Affect Purchase
Decision
• Consumers may have a preference for a
certain brand, which will result in its
repeated purchase.
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32. Integration Processes
• The ways in which product knowledge,
meanings, and beliefs are combined to
evaluate two or more alternatives.
• Analysis of the integration process
focuses on the different types of
integration rules or strategies used by
consumers to decide among purchase
alternatives.
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33. Types of Integration Strategies
Integration Strategies
Formal Decision Simplified Decision
Rules Rules or Heuristics
•Require examination •Easy to use and
and comparison of adapt to
alternatives on environmental
specific attributes. situations.
•Price- or promotion-
based
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34. Consumer Decision Making
Decision Stage Psychological Process
Need Recognition Motivation
Information Search Perception
Alternative Evaluation Attitude Formation
Purchase Decision Integration
Postpurchase Evaluation Learning
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35. Postpurchase Evaluation
• After purchase, consumer assesses the
level of performance of product or
service.
• Provides feedback from actual use of
product to influence the likelihood of
future purchases.
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36. Satisfaction
• “A judgment that consumers make with
respect to the pleasurable level of
consumption-related fulfillment.”
• Cognitive dissonance:
– A feeling of psychological tension or
postpurchase doubt a consumer
experiences after making a difficult
purchase choice.
– More likely to occur when consumer has
to choose between two close
alternatives.
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37. Variations in Consumer Decision Making
Types of
Decision
Making
Routine Problem Limited Problem Extended
Solving Solving Problem Solving
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38. Variations in Consumer Decision Making
Group Decision Making
• Group situations constitute many purchase
decisions.
• Reference group
– “A group whose presumed perspectives or
values are used by an individual as the basis
for his or her judgments, opinions, and
actions.”
– Used to guide consumers’ purchase decisions
even when the group is not present.
– Marketers use aspirational or dissociative
reference group influences in developing ads
and promotional strategies.
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39. Variations in Consumer Decision Making
Group Decision Making
Figure 2-4
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40. Target Audience Decision
• Consumer understanding is the key to
the success of any IMC plan, program,
or ad.
• The goal of an IMC plan, program or ad
is to influence the behaviour of a target
audience.
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41. Marketing and Promotions Process
Model
Figure 2-5
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42. Target Market Process
Identify Markets With Unfulfilled Needs
Determine Market Segmentation
Select Market To Target
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43. Target Market and Target Audience
• Target market
– The group of consumers toward which
an overall marketing program is
directed.
• Target audience
– A group of consumers within the target
market for which the advertising
campaign, for example, is directed.
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44. Target Market Process
Identify Markets With Unfulfilled Needs
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45. Market Segmentation
• Marketer identifies a target market by:
– Identifying the specific needs of groups
of people, or segments
– Selects one or more segments as a
target
– Develops marketing programs directed
to each.
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46. Beer is Beer? Not really!
Popular Imports Specialties Premium Light
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47. A Product for Every Segment
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48. A Package is More Than a Container
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49. The Marketing Segmentation Process
Find Ways To Group Consumers
According To Their Needs.
Find Ways To Group Marketing Actions - Usually the
Products Offered - Available To the Organization.
Develop a Market/Product Grid To Relate the Market
Segments To the Firm’s Products and Actions.
Select the Product Segments Toward Which the Firm
Directs Its Marketing Actions.
Take Marketing Actions To Reach Target Segments.
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50. Bases for Segmentation
Psychographic Demographic
Customer
Characteristics
Socioeconomic Geographic
Behaviour
behaviour Outlets
Buying
Situation
Usage Benefits
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51. Psychographic Segmentation
• Dividing the market on the basis of
lifestyle, personality, culture, and social
class.
• Criteria include:
– Lifestyle
• VALS
• VALS 2
– Personality
– Culture
– Social class
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52. Marketing to a Lifestyle
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53. Abercrombie & Fitch Targets Echo
Boomers
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54. Benefit Segmentation
• The grouping of consumers on the basis
of attributes sought in a product.
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55. Behaviouristic Segmentation
• Grouping customers according to their usage,
loyalties, or buying responses to a product.
– Product or brand usage.
– Degree of use.
– Brand loyalty.
• Can be used in combination with demographic
and/or psychographic criteria to develop profiles
of market segments.
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56. Target Audience Options: Rossiter and
Percy Perspective
Brand Loyal Regularly buy the
Customers firm’s product.
Favourable
Buy focal brand but
Brand
also buy others.
Switchers
Customers not
New category
purchasing within a
users
product category.
Not consistently
Non- Other brand
purchasing focal
Customers switchers
brand.
Other brand Loyal to another
loyals brand.
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