2.2 Consumer Behavior
Why consumers buy what they buy, and the sales tactics built on Cialdini's principles of influence.
Why Consumers Buy
Consumer behavior starts from a simple fact: people buy goods and services to meet needs and wants. A parent needs a child transported to school and wants that to happen on a bike the child will actually ride. Most needs have rival goods circling them, meaning several products that could satisfy that same need. Where rivals exist, four things settle the choice: price, differentiated product features, availability, and advertising.
Run one decision through all four. A comparable new bike costs about twice the price of an inspected used one, so price pulls toward the used rack. A signed inspection tag and a thirty day tune up promise are differentiated features that no factory fresh rival carries. Availability favors the rack too, because that bike goes home today while an online order arrives next week. And the listing that brought the parent to the stall is advertising doing its only job, putting a product in front of the person whose need it fits.
Essential knowledge: 2.2.A.1
Rational Decisions and Habitual Ones
The care a consumer takes scales with the cost of getting it wrong. Consequential purchases, a home, a car, or the first bike a child rides through traffic, earn a rational decision making process: name the alternatives, weigh each one on the factors that matter, then pick the best fit. Routine low stakes purchases run on habit instead. Nobody compares gum brands at the register, and nobody should.
A rational process finds the product that actually fits the need, and it charges for the search, mostly in time. Compare a tagged ninety five dollar commuter with an untagged seventy five dollar rival: a shop inspection on the cheaper bike runs about twenty five dollars, which puts its true cost at one hundred and reverses the ranking the sticker prices suggested. Three evenings of searching to surface that reversal makes sense for a bike and would be ridiculous for a pack of gum. Scale the depth of the process to the size of what is being decided.
Essential knowledge: 2.2.A.2
Four Families of Influence
Four families of factors shape any buying decision, and a busy Saturday market meets all four at once.
- Personal factors are facts about the buyer's own circumstances: age and sex, education, occupation, income, budget, lifestyle. They set what a person needs, wants, and can afford. Renee's profile card is a stack of them.
- Psychological factors work inside the buyer's head: values and beliefs, perceptions, learning built from prior experience, and personal motivation. Used bikes are perceived as risky, which is exactly the perception a documented inspection exists to correct.
- Social and cultural factors arrive from other people: family and peers, social status, cultural norms, media coverage. When three families at school pickup name the same seller, buying there becomes the normal move.
- Situational influences are passing conditions surrounding the purchase itself. Store design counts here, covering noise levels, lighting, and how a space is organized, and so do timing and whether the product is on hand. A sunny back to school Saturday sells bikes a rainy one does not.
Essential knowledge: 2.2.A.3, 2.2.A.4, 2.2.A.5, 2.2.A.6
Purchasing Patterns, Law, and Technology
Zoom out from a single decision to many and you get a purchasing pattern: the routine a consumer settles into when buying, described by when they buy, how often, and how much. Where someone lives and works, what they earn, and the habits of family and friends all help set it. A used bike ledger shows the pattern plainly. Local families purchase a single bike at a time, once every few years per child, bunched into late August, and close to home.
Laws bend those patterns by setting rules about what can be sold, to whom, and where. Helmet requirements for young riders pull a helmet sale along behind a kids' bike sale. Consumer protection laws help buyers avoid fraudulent or unsafe products, and they reach small sellers directly, since reselling a recalled children's product can break the law and a recall check belongs at the top of any inspection list. Restrictions also create substitutes: where a city limits rental scooters, some riders switch to bicycles instead.
Technology reshapes patterns faster than law manages to, because innovation keeps putting new products within reach. The internet arriving in homes in the 1990s moved shopping, information, and entertainment online, and smartphones spreading in the 2010s put all three in a pocket. A teenage refurbisher exists inside that shift: repairs learned from free videos, sales made through a marketplace app, and parents standing at the rack checking new bike prices on a phone. Technology changes both sides of the sale, seller reach and buyer information.
Essential knowledge: 2.2.B.1, 2.2.B.2, 2.2.B.3
The Seven Principles of Influence
The psychologist Robert Cialdini catalogued the principles of influence, the psychological factors that make people more likely to comply with a request. Marketers build a sales tactic on them, and every principle below has an honest application and a manipulative one.
| Principle | What it says | An honest application |
|---|---|---|
| [[scarcity-principle|Scarcity]] | Rarity raises perceived worth | A rebuilt bike genuinely is one of one |
| [[authority-principle|Authority]] | People follow credible experts | A signed inspection a buyer can hold |
| [[consensus-principle|Consensus]] | People follow group norms | Permitted photos of local families riding |
| [[liking-principle|Liking]] | People are swayed by people they like | Plain language answers at every test ride |
| [[reciprocity-principle|Reciprocity]] | A gift creates an obligation | Free air and chain lube for any browser |
| [[consistency-principle|Consistency]] | People act like the person they believe they are | Listings written for parents who put safety first |
| [[unity-principle|Unity]] | Shared identity increases influence | A group ride for past customers |
The manipulative versions are the same principles with the evidence removed. Scarcity faked as three other buyers arriving this afternoon, authority borrowed from a credential nobody can check, and consensus manufactured from invented reviews all work briefly and cost the seller the trust that made the sale possible.
Essential knowledge: 2.2.C.2, 2.2.C.3, 2.2.C.4, 2.2.C.5, 2.2.C.6, 2.2.C.7, 2.2.C.8
Evaluating a Sales Tactic
The exam will ask you to judge a tactic and to build one, so carry a test you can apply in a sentence. A tactic is worth keeping when the principle behind it still works after full disclosure. Saying this tag lists everything I checked survives disclosure. Saying come back inside thirty days and the tune up is free survives it, and it also reverses the risk that stops used bike buyers from committing. Saying three other people are coming this afternoon collapses the moment a buyer asks who, and one caught lie erases the credibility the inspection was built to earn.
When you write your own tactic, name the principle it uses, state the evidence that makes the claim true, and check that a customer hearing the whole reasoning would still buy. That is the difference between persuasion and manipulation, and it is the standard a free response answer should apply.
Essential knowledge: 2.2.C.1
Worked Examples
The true cost of the cheaper bike
Compare two alternatives on total cost rather than sticker price, using a rational decision making process.
A parent finds two bikes that meet the same need. Theo's commuter costs ninety five dollars and carries a documented safety inspection. An untagged listing on the marketplace asks seventy five dollars with no inspection of any kind. A bike shop charges about twenty five dollars to check the brakes on a used bike, and this parent will not put a child on an unchecked bike. Which option costs less once the comparison is complete?
- Tagged inspected commuter
- $95
- Untagged marketplace listing
- $75
- Shop charge to inspect an unchecked bike
- $25
1. State the need both options must meet
The need is a safe bike, not merely a bike. Any option that leaves the brakes unverified has not met the need, so the comparison has to include whatever it takes to verify them.
2. Price the cheaper option to the same standard
The untagged bike costs seventy five dollars plus a twenty five dollar shop inspection, which is one hundred dollars.
3. Price the tagged option
The tagged bike already carries the inspection, so nothing is added. Its total cost is ninety five dollars.
4. Compare the completed totals
One hundred dollars against ninety five dollars means the more expensive sticker is the cheaper purchase by five dollars.
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Answer
The $95 tagged bike, by $5. The tagged bike is cheaper by five dollars, even though its sticker price is twenty dollars higher.
Why it matters
This is what a rational decision making process buys and what it costs. The reversal only appears if the buyer spends time gathering information, which is a reasonable trade for a bike and an absurd one for a routine purchase. The depth of the process should track the size of the decision.
Key Terms
Practice Questions
6 questions. Nothing here is recorded or scored.
- Question 12.2.C.1, 2.2.C.4
Cobalt Finch Ceramics
Ivy Santos, a high school senior, runs Cobalt Finch Ceramics, a stall selling her handmade mugs at a monthly craft fair. Three other stalls sell mugs, so shoppers can meet the same want four ways and weigh price, glaze, and feel before choosing. Behind her table Ivy pins a corkboard of short notes from past buyers describing their mugs in daily use, two dozen so far. At the front edge sits a dish of small glazed clay magnets, free to anyone who stops. The vendor at the next stall urges her to tell shoppers each design is the last one available, including designs with duplicates boxed under the table. Ivy declines the line, and she letters a small card reading one of a kind for the three mugs whose copper glaze she cannot repeat.
The corkboard of buyer notes is best identified as a sales tactic built on which of the following principles of influence?
- A.The authority principle, because the notes come from owners with years of experience using mugs.
- B.The liking principle, because the friendly notes build rapport between Ivy and each shopper.
- C.The consensus principle, because the notes show that many buyers chose these mugs.
- D.The unity principle, because reading the notes makes a shopper part of the owners' community.
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Answer: C
- A.
- The test is expertise. Authority persuades through credentials, a doctor endorsing a product or a certificate on a wall, and Ivy's note writers claim nothing beyond having owned a mug for a while.
- B.
- A friendly-feeling stall is a side effect, not the mechanism. The liking principle works through rapport with the seller herself, and the corkboard's persuasive power comes from what other buyers did, which is consensus.
- C.
- Correct. The principles of influence, described by the psychologist Robert Cialdini, are psychological factors that cause people to comply with a request, and marketers build sales tactics on them. The consensus principle states that individuals tend to follow the norms of their social group, so a business that promotes positive customer feedback creates the sense that most buyers like the product. Two dozen notes from satisfied strangers tell a browsing shopper that people like her already chose these mugs.
- D.
- Overreads membership. Unity works when customers feel part of a group, through exclusive communities or invitations to cocreate a product, and reading strangers' notes confers no membership.
- Question 22.2.C.1, 2.2.C.6
Which of the following best explains how the dish of free magnets can increase mug sales?
- A.Receiving something of value leaves shoppers feeling obligated to give back, often by buying a mug.
- B.The magnets build rapport with Ivy herself, and shoppers buy from sellers they have warmed to.
- C.The magnets appeal to a shopper's self-image as someone who supports young local artists.
- D.The magnets make the handmade mugs look rarer than the mugs at the three rival stalls.
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Answer: A
- A.
- Correct. The reciprocity principle states that individuals feel obligated to reciprocate when given something of value, which is why marketers offer free samples, trials, and gifts. A shopper who pockets a free magnet carries a small felt debt to the stall, and buying a mug settles it.
- B.
- Names a real side effect and the wrong engine. Liking persuades through rapport and relatability, and a giveaway's tested mechanism is the obligation it plants.
- C.
- Describes consistency, the principle that people repeat behavior matching their self-image, the way a brand courts buyers who see themselves as health-conscious. A magnet in a dish makes no identity claim.
- D.
- Scarcity runs on perceived rarity, and a dish of free magnets says nothing about how rare the mugs are. The giveaway works on the shopper's sense of obligation rather than on the supply of mugs.
- Question 32.2.C.2
Which of the following best explains Ivy's decision to refuse the vendor's line while keeping the one-of-a-kind cards?
- A.Scarcity persuades only when a seller invents the shortage, so a true card cannot motivate.
- B.Refusing the vendor's line means Ivy has set the scarcity principle aside for the whole fair.
- C.Scarcity claims about handmade goods are prohibited at in-person markets by consumer protection law.
- D.A true rarity claim uses scarcity honestly, while the false line risks deception.
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Answer: D
- A.
- Nothing in the principle requires an invented shortage. Perceived rarity is what persuades, and a genuine shortage is the cleanest source of that perception, which is why the card on an unrepeatable glaze still works.
- B.
- Fails on the stimulus. Ivy still letters cards for the three unrepeatable mugs, so the principle stays in use everywhere it is true.
- C.
- No such prohibition exists. Scarcity claims are legal at any market when they are true, and what consumer protection law polices is deception, like calling a duplicated design the last one available.
- D.
- Correct. The scarcity principle states that the rarer an item seems, the more people tend to want it, and the principle runs on perceived rarity, so real rarity produces that perception honestly: the card on an unrepeatable glaze keeps the persuasive pull and keeps the claim true. The false version invites the deception that consumer protection laws exist to catch, and at a monthly fair with returning shoppers, one duplicate spotted in a box undoes months of corkboard trust.
- Question 42.2.A.2, 2.2.B.1
Bluestem Coffee
Bluestem Coffee, a drive-through coffee stand, pulls one member's records from its loyalty app. The table shows four weeks of visits.
Week | Visits | Time window | Order each visit | Price per coffee Week one | 5 | 7:10 to 7:25 a.m. | One medium coffee | $4 Week two | 5 | 7:10 to 7:25 a.m. | One medium coffee | $4 Week three | 5 | 7:10 to 7:25 a.m. | One medium coffee | $4 Week four | 5 | 7:10 to 7:25 a.m. | One medium coffee | $4 Which conclusion is supported by the table?
- A.The member systematically compares the rival coffee stands nearby before deciding on each stop.
- B.The purchases form a habitual pattern of 20 visits at one medium coffee each, totaling 80 dollars.
- C.The member's lifetime value to Bluestem Coffee works out to 80 dollars over the relationship.
- D.The loyalty app commits the member to buying five medium coffees in each of the coming weeks.
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Answer: B
- A.
- Claims deliberation the table contradicts. A shopper comparing rivals each morning would show varied stops, varied times, and varied orders.
- B.
- Correct. A purchasing pattern is a consumer's typical routine for making purchases, read through timing, frequency, and quantity, and this table holds all three steady: one fifteen-minute window, five visits a week, one coffee each. Five visits across four weeks is twenty, and twenty coffees at 4 dollars is 80 dollars. Small routine buys like a workday coffee run on habit; a rational process of systematically comparing alternatives fits consequential purchases like a home.
- C.
- Borrows the previous topic's vocabulary. Lifetime value estimates total spending across the whole customer relationship, and this table shows one month of it.
- D.
- Reads a record as a commitment. The app logs what the member did, and it binds nobody to a future purchase; a routine that has held for four weeks can still break in week five.
- Question 52.2.B.2
A city ordinance bars restaurants from handing out single-use plastic straws. Within a year, local stores stock paper and metal straws, and reusable-straw sales climb. Which of the following best explains the change in purchasing patterns?
- A.A legal limit gives rise to substitutes, because the need the straw served survives.
- B.The ordinance removed the need the straws served, so demand for straws of any kind disappeared.
- C.The change is a situational influence, because the layout of the local stores shifted their displays.
- D.Consumer protection law requires a banned product to be replaced by a licensed alternative.
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Answer: A
- A.
- Correct. Laws shape purchasing patterns by regulating what consumers can buy and when and where they can buy it. When a law makes a product harder to obtain, the want it served survives, so consumers find substitutes and businesses arrive to sell them. The straw leaves, the drink stays, and paper and metal fill the gap.
- B.
- Breaks the chain at the wrong link. The ordinance changed what restaurants could hand out, and the want the straw served went untouched, which is exactly why the reusable versions sold.
- C.
- Borrows a neighboring factor family. Situational influences are temporary conditions like store noise, lighting, and timing, and an ordinance is a legal factor that holds until it is repealed.
- D.
- Invents a licensing rule. Consumer protection laws help people avoid products that are fraudulent or unsafe, and nothing in them orders a replacement, licensed or otherwise. The substitutes appeared because the want persisted, not because a law demanded them.
- Question 62.2.A.6
A candle shop plays quiet music, keeps the lighting warm, and sets open testers by the entrance so shoppers smell the candles immediately. Shoppers who came in to browse frequently leave with a purchase. Which of the following best identifies the factor influencing these purchases?
- A.A personal factor, because the purchase turns on each shopper's occupation, income level, and budget.
- B.A social and cultural factor, because the other shoppers in the aisle set the buying norm she follows.
- C.A situational influence, because store design creates temporary conditions that encourage buying.
- D.A psychological factor, because the warm room changes a shopper's underlying values and beliefs.
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Answer: C
- A.
- Personal factors, like age, education, income level, budget, occupation, and lifestyle, shape what a consumer needs and can afford, and they follow the shopper everywhere. Nothing about this store visit depends on who the browsing shopper is; the pull comes from the room itself.
- B.
- Social and cultural factors work through peers, family, social status, cultural norms, and media, the people and expectations around the buyer. The scenario's pull comes from lighting, music, and scent, the store's designed conditions, and no norm set by the other shoppers is described.
- C.
- Correct. Situational influences are temporary conditions that encourage or discourage buying, created by store design elements like noise, lighting, and organization, by timing, and by product availability. The music, the warmth, and the testers work on the shopper only while she stands inside them.
- D.
- The test is what changed. The store adjusted the shopper's surroundings for twenty minutes, and her values and beliefs walked out the same as they walked in.
In a class? These questions are not recorded.
Take the same questions as a scored quiz and your teacher will see that you have finished this section.
Take the scored quiz →6 common mistakes on 2.2
The wrong moves students actually make on these questions, why each one is wrong, and what to do instead. Part of the practice tier.
See what is includedEssential knowledge covered
2.2.A.1 · 2.2.A.2 · 2.2.A.3 · 2.2.A.4 · 2.2.A.5 · 2.2.A.6 · 2.2.B.1 · 2.2.B.2 · 2.2.B.3 · 2.2.C.1 · 2.2.C.2 · 2.2.C.3 · 2.2.C.4 · 2.2.C.5 · 2.2.C.6 · 2.2.C.7 · 2.2.C.8