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Introduction to Consumer Behavior and Marketing

Strategy

Chapter 1

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The marketing concept suggests an

organization should satisfy consumer needs

and wants in order to make a profit

 ± Need to understand customers ± Must stay close to customers

Introduction

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 ± Focus on providing consumers value-ladenproducts

 ± Superior quality and lower prices of products

Introduction cont.

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 ± Use of technology to identify and knowcustomers

 ± Ability to track consumer reactions

Introduction cont.

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 ± E-marketing potential

 ± Increased importance of consumer behavior 

research

 ± Ability to conduct marketing research studies

Introduction cont.

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³The purpose of a business is to create and 

keep a customer.´ 

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Consumer behavior involves exchanges

 ± People give up value to others and receive

something in return

OR ± Study of how individuals make decision on how

to spend their available resources (time, money,

effort) on various consumption related items.

What is Consumer Behavior? cont.

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The dynamic interaction of cognition,

behavior, and the environment by which

human beings conduct the exchange

aspects of their lives

What is Consumer Behavior?

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Involves the thoughts and feelings people

experience and the actions they perform in

consumption processes

Includes all things in the environment thatinfluence thoughts, feelings, and actions

What is Consumer Behavior? cont.

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Consumer behavior is dynamic

 ± Thinking, feelings, and actions of individual

consumers, targeted consumer groups, and

society at large are constantly changing

 ± Requires ongoing consumer research and

analysis

 ± Makes development of marketing strategies

What is Consumer Behavior? cont.

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Consumer behavior involves interactions

 ± Among people¶s thinking, feelings and actions,

and the environment

 ± Marketers need to understand What products and brands mean to consumers

What consumers must do to purchase them

What influences shopping, purchase, and

consumption

What is Consumer Behavior? cont.

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5-12 Model of Consumer Behavior  Marketing and

Other Stimuli

Buyer¶s Black BoxBuyer¶s Black Box

 Buyer¶s Response

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

CharacteristicsAffectingConsumer Behavior 

Buyer¶sDecisionProcess

Product Choice

Brand Choice

Dealer Choice

PurchaseTiming

PurchaseAmount

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5-13 Characteristics Affecting 

Consumer Behavior 

Buyer 

Psychological

Personal

Social

Culture

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5-14 F actors Affecting Consumer Behavior:

Culture

 Social Class

People within a social classtend to exhibit similar buyingbehavior.

Occupation

Income

Education

Wealth

  Most basic cause of a person's wants and behavior.

Values

Perceptions

 

Subculture

Groups of people with sharedvalue systems based on commonlife experiences.

Mature Consumers

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5-15 F actors Affecting Consumer Behavior:

Social 

Groups

Membership

Reference

 

Family

Husband, wife, kids

Influencer, buyer, user 

 Roles and Status

 Social Factors

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5-16 F actors Affecting Consumer Behavior:

Personal 

 Personal Influences

 Age and Family Life CycleStage

Occupation

 Economic Situation

 Lifestyle Identification

Activities Opinions

Interests

 Personality & Self -Concept

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5-17F actors Affecting Consumer Behavior:

Psychological 

F actors Affecting Consumer Behavior:

Psychological 

PsychologicalFactors

Motivation

Perception

Learning

 Beliefs andAttitudes

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5-18 T ypes of Buying Decisions

Complex

BuyingBehavior Eg.

Automobiles

Dissonance-

Reducing Buying

Behavior eg. Paper towels

Variety-

SeekingBehavior 

Eg. cereals

Habitual

Buying

Behavior Eg. Cigarattes

HighInvolvement

Decision

making

Habit- singlebrand

LowInvolvement

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5-19 T he Buyer Decision Process

 Need Recognition

 Information Search

 Evaluation of Alternatives

 Purchase Decision

 Postpurchase Behavior 

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5-20 T he Buyer Decision ProcessStep 1. Need Recognition

 External Stimuli

TV advertising

Magazine ad

Radio slogan

Stimuli in the

environment

 Internal Stimuli

Hunger 

Thirst

A person¶s normalneeds

 Need RecognitionDifference between an actual state and a desired state

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5-21 T he Buyer Decision ProcessStep 2. Information Search

Family, friends, neighborsMost influential source of 

information

Advertising, salespeople

Receives most informationfrom these sources

Mass MediaConsumer -rating groups

Handling the productExamining the productUsing the product

 Personal Sources

 Commercial Sources

 Public Sources

 Experiential Sources

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T he Buyer Decision ProcessStep 3. Evaluation of Alternatives

T he Buyer Decision ProcessStep 3. Evaluation of Alternatives

Product AttributesEvaluation of Quality, Price, & Features

Product AttributesEvaluation of Quality, Price, & Features

Degree of Importance

Which attributes matter most to me?

Degree of Importance

Which attributes matter most to me?

Brand BeliefsWhat do I believe about each available brand?

Brand BeliefsWhat do I believe about each available brand?

T otal Product SatisfactionBased on what I¶m looking for, how satisfied

would I be with each product?

T otal Product SatisfactionBased on what I¶m looking for, how satisfied

would I be with each product?

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

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5-23 T he Buyer Decision ProcessStep 4. Purchase Decision

 Purchase IntentionDesire to buy the most preferred brand

 Purchase Decision

Attitudes

of others

Unexpected

situational

factors

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5-24 T he Buyer Decision ProcessStep 5. Postpurchase Behavior 

 Consumer¶s Expectations of 

Product¶s Performance

 Dissatisfied

Customer  Satisfied

Customer!

Product¶s Perceived

Performance

Cognitive Dissonance

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5-25 Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption