Consumer Decision-Making and Behavior
Dive into the psychology and decision-making processes that shape consumer behavior to deliver meaningful experiences.
Latest Updated:
January 24, 2025
Topics to master this sub-competency
Introduction to Consumer Behavior
This open-source textbook provides all the fundamentals of theory and practice in consumer behavior. From perception, motivation, learning, attitudes, and influences on decision-making, this is a tremendous resource for those just learning about behavioral science and the more practiced who are looking for a resource.
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Customer Journey vs. Buyer Lifecycle: What’s The Difference?
The article breaks down the difference between the customer journey and the buyer lifecycle in ecommerce. It explains that the customer journey represents the complete set of interactions a customer experiences with a brand—from the initial awareness phase, through consideration, to the final decision—while the buyer lifecycle is a retailer-focused framework that categorizes customers into stages such as acquisition, conversion, loyalty, and advocacy. The article also discusses how mapping these processes can help optimize marketing and sales strategies by providing actionable insights to improve conversion rates, customer retention, and overall engagement.
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How To Select Marketing Channels That Drive The Best Results
The article from Coschedule provides an in-depth overview of various marketing channels and their roles in an integrated marketing strategy. It explores both traditional and digital channels, outlining how businesses can blend organic and paid media to effectively reach and engage their target audiences.
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Consumer Decision-Making Process (With Examples) | From A Business Professor
The video, breaks down the steps consumers go through when making purchasing decisions. It explains various stages of the decision-making process—from recognizing a need, searching for information, evaluating alternatives, making a purchase, to post-purchase behavior—with real-world examples provided by a business professor. The content is designed to help marketers and business professionals understand how consumers think, so they can tailor their strategies to better meet customer needs and influence buying behavior.
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The Science Of Persuasion: How To Influence Consumer Choice
The article explains how consumer decisions are influenced by both rational and emotional factors. It details the psychological triggers behind purchasing behavior and outlines actionable strategies for businesses to guide customer choices. The discussion includes the importance of credibility, social proof, persuasive messaging, pricing tactics, and creating a seamless customer experience. By aligning marketing efforts with these insights, businesses can better drive conversions and foster long-term customer relationships.
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Make it a Better Experience with Applied Behavioral Science
In his presentation at the CXM@MSU Global Virtual Conference, John Gusiff discusses how applied behavioral science can enhance customer experience (CX). He explores strategies for overcoming barriers to customer progress, emphasizes the importance of intentional design, and introduces frameworks like the Wheel of Progress® to improve CX outcomes.
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What Influences Consumer Behavior?
The video explains that consumer behavior is shaped by both internal and external factors. Internally, elements such as motivation, perception, personal values, and past experiences play a crucial role. Externally, social influences—like family, peer groups, cultural trends—and targeted marketing efforts significantly impact purchasing decisions. The discussion emphasizes that understanding these diverse influences can help businesses tailor their strategies to better connect with and engage consumers.
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Take 5: The Surprising Ways Emotions Shape Consumer Behavior
This article from the Kellogg School of Management explores how emotions deeply influence consumer behavior by shaping perceptions, decision-making, and brand loyalty. The discussion offers insights into how specific feelings, triggered by well-crafted messaging and storytelling, drive consumer choices, and suggests strategies for businesses to leverage these emotional cues to create stronger connections with their audience
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Understanding Needs, Wants And Demands In Marketing World
This article explains the fundamental differences between needs, wants, and demands in marketing. It describes how needs are basic human requirements, while wants are influenced by cultural and individual preferences, and demands occur when consumers have both the desire and the purchasing power to acquire a product or service. The piece emphasizes that understanding these distinctions is crucial for developing effective marketing strategies and tailoring products to meet consumer expectations.
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How Product Attribute Schema Design Provides a Competitive Advantage
This article from Earley Information Science discusses how a well-designed product attribute schema can provide a competitive advantage. It explains that organizing and standardizing product data across channels not only enhances searchability and filtering but also improves product discovery and customer experience. The article emphasizes that a robust schema design enables businesses to differentiate their product offerings, optimize inventory and marketing strategies, and ultimately drive sales in a competitive market.
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Building Brand Love Through CXM - A Love Story
Aaron Ahuvia’s presentation explores brand love as a psychological force that drives customer loyalty. Using research and storytelling, he explains how brands can foster emotional connections through customer experience management (CXM). He highlights the role of anthropomorphism, consumer identity, and perceived value in shaping brand relationships and long-term success.
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Attribution Theory (Explained in 3 Minutes)
This video explains attribution theory in a brief, three-minute format. It describes how people determine the causes behind behaviors by categorizing them as resulting from internal dispositions or external situations. The explanation covers key concepts like the fundamental attribution error and self-serving bias, illustrating how these mental shortcuts affect the way we judge others and interpret everyday events.
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Cognitive Learning Theory
This video explains a cognitive approach to understanding how we assign causes to behaviors. It describes how individuals use mental processes to evaluate whether actions are due to internal factors, like personality traits, or external circumstances. The explanation also covers common cognitive biases—such as the fundamental attribution error—that influence our judgments and interpretations of everyday events.
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The Consideration Stage: 3 Strategies and Best Types of Content
The article delves into the consideration stage of the buyer’s journey, explaining how businesses can effectively nurture leads who are evaluating different solutions. It outlines various strategies and types of content—such as case studies, product demos, expert guides, and comparison pieces—that can address potential customers’ pain points and build trust. The piece also emphasizes the importance of personalization and targeted messaging to help prospects move closer to a purchase decision.
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Video: Probability Theory in Decision-Making, Marketing & Business
This lesson from Study.com explains how businesses can improve their decision-making processes by leveraging probability information and various economic measures. It covers key concepts such as risk analysis, expected value, and cost-benefit analysis to evaluate potential outcomes. The content emphasizes the importance of using quantitative data to make informed business decisions, helping organizations manage uncertainty and optimize resource allocation.
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How to Understand What Your Customers Do and Why They Do It
The article from CMSSWire explains how to gain a deep understanding of customer behavior by combining quantitative data with qualitative insights. It discusses the importance of analyzing both the actions customers take and the motivations behind those actions. The piece outlines strategies such as leveraging analytics tools, gathering customer feedback, and conducting behavioral research to map the customer journey. Ultimately, it emphasizes that uncovering these insights is key to crafting more effective marketing strategies and enhancing the overall customer experience.
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How to conduct a behavioral analysis for marketing campaign
The article discusses the importance of behavioral analysis in understanding consumer trends and decision-making. It explains how leveraging data analytics and research methodologies can uncover patterns in digital behavior—such as online activities, purchasing habits, and brand engagement. These insights enable businesses to tailor their marketing strategies, refine product offerings, and gain a competitive edge in the marketplace.
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Compensatory and Non compensatory Decision Rules in Consumer Behavior
This video explains the two primary decision rules in consumer behavior: compensatory and non-compensatory. It describes how, under compensatory decision-making, consumers weigh both positive and negative attributes—allowing strengths in some areas to offset weaknesses in others. In contrast, non-compensatory decision-making involves setting minimum criteria that products must meet; if an option fails to meet any critical requirement, it is eliminated regardless of its strong points. The discussion includes examples to illustrate how these rules influence consumer choices and the implications for marketers.
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Consumer Decision-Making Models, Strategies, and Theories, Oh My!
The article from Decision Analyst explores various consumer decision-making models and strategies. It covers theories like Utility Theory, Satisficing Theory, Bounded Rationality, and Prospect Theory. These models aim to explain how consumers make choices and evaluate options in a complicated decision-making environment.
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What Is Utility in Marketing? Definition, Types and Examples
This article explains that in marketing, utility refers to the value a product or service delivers to consumers by meeting their needs and enhancing their lives. It discusses different types of utility—such as form, time, place, and possession utility—and emphasizes how marketers can design strategies to boost these aspects. The article highlights that creating and communicating strong marketing utility is essential for building customer loyalty, differentiating a brand, and driving overall business success.
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22 Examples of Customer Retention Strategies That Actually Work
This article from HubSpot outlines a range of effective strategies to boost customer retention and reduce churn. It emphasizes the importance of delivering exceptional customer service, personalizing communications, and implementing loyalty programs to build stronger customer relationships. The piece also highlights the value of proactively gathering customer feedback and leveraging data-driven insights to continuously improve the customer experience and foster long-term brand loyalty.
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Understanding Cognitive Dissonance in Consumer Behavior (10 Minutes)
This video explains the concept of cognitive dissonance—a psychological phenomenon where individuals experience discomfort when they hold conflicting beliefs or engage in behavior that contradicts their values. It outlines the origins of the theory, discusses common examples of dissonance in everyday decision-making, and explains how people often adjust their attitudes or rationalize their actions to reduce the tension caused by these inconsistencies.
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Disconfirmation Model of Customer Satisfaction
This article explains the Disconfirmation Model of Customer Satisfaction, which suggests that customer satisfaction is determined by the gap between expected and perceived performance. If a product or service meets or exceeds expectations, customers experience positive disconfirmation, leading to satisfaction. However, if the product falls short of expectations, negative disconfirmation results in dissatisfaction. The model emphasizes the importance of managing customer expectations and delivering a product or service that aligns with those expectations to enhance satisfaction and loyalty.
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Mastering Post-Purchase Behavior: A Comprehensive Guide
The article explores post-purchase behavior, detailing how consumers react after buying a product or service. It examines both the positive outcomes—such as satisfaction, loyalty, and advocacy—and the potential negative responses like buyer’s remorse and cognitive dissonance. The discussion highlights the importance of aligning product performance with customer expectations and emphasizes proactive post-purchase communication (e.g., follow-ups, customer support, and feedback solicitation) to enhance overall satisfaction and foster long-term relationships.
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How to Increase Customer Satisfaction, Brand Loyalty, and Gain Upsells
This video explains how to increase customer satisfaction and brand loyalty through relationship-building rather than solely relying on product offerings. It emphasizes that in a competitive market, businesses need to focus on developing strong client relationships to raise satisfaction levels, foster loyalty, and drive repeat sales, including upsells. The video offers resources and best practices for achieving this through effective relationship management.
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What Is Customer Commitment?
The article explores the concept of customer commitment, emphasizing its significance as a retention strategy. It explains that customer commitment involves consistently delivering on a brand's value proposition and fostering long-term relationships. By meeting customer expectations and nurturing trust, businesses can create loyal customers who are more likely to become repeat buyers and advocates. The article also highlights the importance of customer satisfaction and loyalty, offering actionable steps for businesses to improve commitment, such as improving communication, listening to feedback, and building a customer-centric culture.
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8 Types of Customer Loyalty Programs
This video explores various strategies businesses can implement to enhance customer loyalty. It discusses different types of loyalty programs, such as points-based systems, tiered rewards, and subscription models, highlighting how each approach can effectively engage customers and encourage repeat business. The video emphasizes the importance of aligning loyalty programs with customer preferences and business objectives to maximize their effectiveness.
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From Loyalty To Advocacy: The Key To Effective Customer Experience
This Forbes article discusses the progression from customer loyalty to advocacy, emphasizing that while loyalty pertains to a customer's purchasing behavior, advocacy involves customers promoting the brand to others. The article highlights that advocacy serves as free advertising, significantly influencing potential customers' perceptions and purchasing decisions. It underscores the importance of delivering exceptional customer experiences that not only retain customers but also inspire them to become brand advocates, thereby driving business growth through positive word-of-mouth.
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The Secret to Brand Advocates
This video discusses strategies for transforming loyal customers into brand advocates who actively promote the brand to others. It emphasizes the importance of delivering exceptional customer experiences that inspire customers to share their positive experiences, thereby enhancing brand reputation and attracting new customers. The video also highlights the role of word-of-mouth marketing in business growth and provides insights into building a community of brand advocates.
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How to Build Brand Advocacy in 6 Simple Steps
The article from Business.com outlines a strategic approach to transforming satisfied customers into active promoters of your brand. It emphasizes the importance of identifying the key factors that drive customer satisfaction and loyalty, such as product quality and exceptional customer service. By focusing on building strong, personalized relationships with customers and consistently exceeding their expectations, businesses can inspire customers to share their positive experiences, thereby enhancing brand reputation and attracting new customers. The article also highlights the value of enabling and encouraging customers to share their experiences, measuring the success of advocacy campaigns, and rewarding brand advocates to foster a community of loyal supporters.
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9 Key Advocacy KPIs to Measure Program Success
This article from Zealot outlines essential Key Performance Indicators (KPIs) for evaluating the effectiveness of customer advocacy programs. It emphasizes the importance of tracking metrics such as Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Referral Rate, Customer Lifetime Value (CLV), Social Media Engagement, Content Engagement Rate, Advocacy Participation Rate, Revenue Impact, and Customer Retention Rate. By monitoring these KPIs, businesses can assess their advocacy efforts, identify areas for improvement, and demonstrate the value of customer advocacy in driving business growth
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