What is Consumer Behaviour?

Consumer behaviour is the process that a consumer goes through when he or she is on a mission to purchase a product or service. A quick example would be if you were hungry and in need of food in order to satisfy your hunger. Through this process you will recall places in your memory frame where you would like to eat. Once you have filtered down to at least two or three potential food places, the one that wins the bid, is usually the one of most value to you. 

Emotional purchasing

Successful brands will aim to position a brand, product or service in our minds, so that when it is time for us to search for solutions to our problems, we think of them. The product or service selection we make is usually the brand that has built up the most trust with us. To obtain a repurchase occurance, a brand should focus a percentage of their marketing efforts in building trust with existing customers.

Consumer Behaviour sales funnel

Customer Lifetime Value

Customer Lifetime value model is a powerful tool, enabling businesses to assess the future value of a set of customers. The customer lifetime value model is a strategy investment approach based on long-term returns from marketing activities rather than the short-term success of a single sale.

A Consumer Behaviour brand

Consumer behaviour explained using a family

Milo is a Nestle brand, first introduced in Australia by Thomas Mayne in 1934. At the time, Milo was a household ingredient, it was affordable in addition to ensuring Aussie children were well-nourished during the time of the great depression. In modern times, Milo has positioned themselves as a brand that empowers young Aussie children to embrace active living, lifestyles and sports. The image above is a depiction of myself, my partner and two children whom are addictive users and big fans of Milo.

Consumer Behaviour in action

Consumer Behaviour model Customer Value Framework

Customer Value Framework is a model that represents consumer behaviour theory illustrating factors that shape consumption-related behaviours. Through my own analysis below you will come to understand the value and gratification that I as a Milo consumer experience. Using the Customer Value Framework below, I will describe in greater detail my relationship with the Milo brand. This will help you gain an understanding of all of the many factors that have influenced me to purchase Milo for my children. In summary the analysis will reveal the persuasive power of consumer behaviour and how it influences relationships with brands.

What is the Consumer Value Framework?

Internal Influences

Internal influences - Consumer Behaviour


I grew up in a sport orientated family, the importance of activity is what I learned to value at a young age and still carry with me today. Milo has perfectly positioned themselves with my internal values.


My perception of Milo is that the product is made for children and is supposed to be good for children’s growth and nourishment.

Implicit memory

I have memories of when I was a child running around playing sports and coming home at the end of the day to enjoy a nice cold or warm cup of Milo.

Information Processing

Through promotion, Milo has successfully projected into my memory frame images of active, healthy children playing sport.


I have positive thoughts and attitude towards Milo, I have come to beleive that Milo is a brand that is about positive, active living.

External Influences


In a country like Australia it is so easy to be acculturated because of the strong stance that Aussie people have towards Aussie values and Aussie living. In most household pantries in Australia you will find a Milo tin hiding away somewhere. If this sounds like your household then it is a sign that you are an Aussie through and through.

Culture and cultural values 

Australia is a country built for a product like Milo, the brand values are in sync with the values of majority Aussie consumers.

Reference groups and peers 

Social pressures are too much to bare in an Australian society, we as humans have the tendency and desire to fit into groups that share similar interests. By Milo winning over the majority of Aussie consumers, this impact has lead to greater market share.

Family influence 

I remember my mum and dad telling me that Milo was good for my health because it will make me grow. This has always stuck with me and has become a strong influence in how I perceive Milo today.

Consumption Process

Need or want

Is the product either a need or a want.


Transaction is usually money in return for product or service and how much are you willing to pay based on the perceived value.

Costs and benefits 

Your perceived value will determine if you pull the trigger or not.


What is your reaction after purchase are you still satisfied and will you go back for more.

Consumer Behaviour customer receiving value framework


Utilitarian Value

Utilitarian Value is the value you think or feel you have received after your purchase.

Hedonic Value

The perceived Value during the process of you choosing and when you are initiating a transaction.

Relationship Quality

Switching behaviour

Did the company, brand or service satisfy you enough to win you over.

Customer commitment

How trusting and loyal are you to a brand and will you spend your time engaging with a brand.

Consumer Behaviour equals value

The heart of the Consumer Value Framework, and the core concept of consumer behaviour, is value.

Practical Learning Activity

Keeping in mind your favourite brand of shoe, answer the following questions;

  • Why have you chosen this particular brand of shoe?
  • Can you remember the first ever pair you bought and how you felt at the time?
  • What was it about this brand of shoe that attracted you to own a pair?
  • If the shoe was a person what type of person would this shoe be? (i.e. cool, crazy, boring, lazy)
  • If the brand stopped existing tomorrow, would you miss it?

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