Consumer Behavior: Understanding the Customer Journey

Posted on May 1, 2024 in Psychology and Sociology

CHAPTER 1: Introduction to Consumer Behavior

Understanding the Consumer

Consumer behavior is the study of how individuals and groups select, purchase, use, and dispose of products, services, ideas, or experiences to satisfy their needs and desires. It encompasses the entire consumer journey, from pre-purchase influences to post-purchase evaluations.

Why is Consumer Behavior Important?

Understanding consumer behavior is crucial for businesses as it allows them to:

  • Develop effective marketing strategies
  • Satisfy consumer needs and wants
  • Identify market opportunities and threats
  • Build strong customer relationships

Key Concepts in Consumer Behavior

  • Demographics: Age, gender, income, occupation, etc.
  • Psychographics: Lifestyle, personality, values, etc.
  • Consumption: The meaning and symbolism associated with products and brands.
  • Business Ethics: Conducting business in an honest and ethical manner.
  • Social Marketing: Using marketing techniques to promote positive behaviors.
  • The Dark Side of Consumer Behavior: Consumer addiction, compulsive consumption, and anti-consumption.

Research Methods in Consumer Behavior

  • Primary Research: Data collected directly by the researcher (e.g., surveys, focus groups).
  • Secondary Research: Data collected from existing sources (e.g., market reports, government statistics).

CHAPTER 2: Perception and Sensory Marketing

The Perception Process

Perception is the process by which we select, organize, and interpret sensory information from our environment. It involves three stages:

  1. Exposure
  2. Attention
  3. Interpretation

Sensory Receptors and Stimuli

We have five sensory receptors (eyes, ears, nose, mouth, and skin) that respond to various stimuli (light, sound, odor, taste, and texture).

Factors Influencing Perception

  • Absolute Threshold: The minimum amount of stimulation needed to detect a stimulus.
  • Differential Threshold: The minimum change in a stimulus that can be detected.
  • Weber’s Law: The stronger the initial stimulus, the greater the change needed for it to be noticed.
  • Subliminal Perception: Processing information below the level of conscious awareness.
  • Perceptual Selectivity: Focusing on a small portion of available stimuli.
  • Perceptual Vigilance: Paying attention to stimuli that are relevant to our needs.
  • Perceptual Defense: Ignoring stimuli that are unpleasant or threatening.
  • Adaptation: The degree to which we continue to notice a stimulus over time.

Gestalt Principles of Perception

Gestalt psychology emphasizes that we perceive objects as whole units rather than as individual parts. Key principles include:

  • Closure: Perceiving incomplete figures as complete.
  • Similarity: Grouping objects with similar characteristics.
  • Figure-Ground: Distinguishing between the foreground and background of a scene.

CHAPTER 4: Motivation and Values

Understanding Motivation

Motivation is the driving force behind our actions. It involves:

  • Needs: Internal states of tension caused by imbalances.
  • Goals: Desired end states that we strive to achieve.
  • Wants: Specific manifestations of needs.
  • Motivational Strength: The degree of willingness to expend effort to reach a goal.

Theories of Motivation

  • Drive Theory: Biological needs create unpleasant states of arousal that drive us to reduce them.
  • Expectancy Theory: Behavior is motivated by expectations of achieving desirable outcomes.

Types of Needs

  • Biogenic Needs: Basic physiological needs (e.g., food, water).
  • Psychogenic Needs: Psychological needs (e.g., achievement, affiliation).
  • Utilitarian Needs: Needs for functional benefits (e.g., quality, durability).
  • Hedonic Needs: Needs for pleasure and enjoyment (e.g., excitement, beauty).

Maslow’s Hierarchy of Needs

Maslow proposed a hierarchy of needs, ranging from basic physiological needs to higher-level needs for self-actualization.

Involvement and Affective Responses

  • Involvement: The perceived relevance of an object based on personal needs and interests.
  • Affective Responses: Evaluations, moods, and emotions associated with stimuli or experiences.

Types of Discrete Emotions

  • Happiness
  • Envy
  • Guilt
  • Embarrassment

CHAPTER 5: The Self

Self-Concept and Identity

Self-concept is our overall perception of who we are. It includes our beliefs about our attributes and how we evaluate them.

Key Dimensions of Self-Concept

  • Content
  • Positivity (self-esteem)
  • Intensity
  • Stability over time
  • Accuracy

Ideal vs. Actual Self

  • Ideal Self: Who we would like to be.
  • Actual Self: Who we believe we are.

Symbolic Interactionism and Identity Marketing

Symbolic interactionism emphasizes the role of social interaction in shaping our self-concept. Identity marketing involves using products and brands to express and enhance our identity.