Consumer Behavior Lecture

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Consumer Behavior

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Consumer BehaviorWhat is Consumer Behavior?Approaches to the Study of Consumer BehaviorApproaches Interpretive Core Disciplines Cultural anthropology Psychology Sociology Economics Statistics Primary Objectives Understand consumption and its meanings Explain consumer decision making and behavior Predict consumer choice and behavior Primary Methods Long interviews Focus groups Experiments Surveys Math-modeling SimulationTraditionalMarketing ScienceConsumer Behavior’s Role in Marketi

Transcript of Consumer Behavior Lecture

Page 1: Consumer Behavior Lecture

Consumer Behavior

Page 2: Consumer Behavior Lecture

What is Consumer Behavior?

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Approaches to the Study of Consumer BehaviorApproaches Core Disciplines Primary

ObjectivesPrimary Methods

Interpretive Cultural anthropology

Understand consumption and its meanings

Long interviewsFocus groups

Traditional PsychologySociology

Explain consumer decision making and behavior

ExperimentsSurveys

Marketing Science EconomicsStatistics

Predict consumer choice and behavior

Math-modelingSimulation

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Consumer Behavior’s Role in Marketing Strategy

Marketing Strategy is the design, implementation, and control of a plan to influence exchanges to achieve organizational objectives.

• In consumer markets, marketing strategies are typically designed to increase the chances that consumer will have favorable thoughts and feelings about particular products, services, and brands, and will try them and repeatedly purchase them.

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Three Elements of Consumer Analysis

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Consumer Affect and Cognition

Consumer affect and cognition refer to the two types of mental responses consumers have to stimuli and events in their environment.

• Affect refers to the feelings about stimuli and events such as whether they like or dislike a product.

• Cognition refers to their thinking, such as their beliefs about a particular product.

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Consumer Affect and Cognition• Affective responses can be favorable or unfavorable and

vary in intensity.

Affect includes relatively intense emotions such as love or anger, less strong feeling states such as satisfaction or frustration, moods such as boredom or relaxation, and milder overall attitudes such as liking McDonald’s french fries or disliking Bic pens.

Marketers typically develop strategies to create positive affect for their products and brands to increase the chances

that consumers will buy them.

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Consumer Affect and Cognition• Cognition refers to the mental structures and processes

involved in thinking, understanding, and interpreting stimuli and events.

Includes the knowledge, meanings, and beliefs that consumers have developed from their experiences and have stored in their memories.

Includes the processes associated with paying attention to and understanding stimuli and events, remembering past events, forming evaluations, and making purchasing decisions and choices

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Consumer Affect and CognitionMarketers often try to increase consumers’ attention to

products and their knowledge about them

Example:

Volvo ads often feature detailed information about the construction of the cars to make them safer in order to increase consumers’ knowledge and the chances that they will buy them.

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Consumer Affect and Cognition• Some basic questions about consumer affect and

cognition How do consumers interpret information about marketing

stimuli such as products, stores, and advertising? How do consumers choose from among alternative product

classes, products, and brands? How do consumers from evaluations of products and brands? How does memory affect consumer decision making? How do affect and cognition influence behavior and

environments?

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Consumer Affect and Cognition• Some basic questions about consumer affect and cognition

How do behavior and environments influence affect and cognition?

How do consumers interpret the benefits of marketing offerings? Why are consumers more interested or involved in some

products or brands than others? How do marketing strategies influence consumers’ affective and

cognitive responses? How do affective and cognitive responses influence each other?

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Consumer Behavior• Behavior refers to the physical actions of consumers that

can be directly observed and measured by others.

Also called overt behavior to distinguish it from mental activities, such as thinking, that cannot be observed directly.

Examples of behaviors include shopping at stores or on the Internet, buying products, or using credit cards.

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Consumer BehaviorBehavior is critical for marketing strategy because it is only through

behavior that sales can be made and profits can be earned. Thus, it is critical for marketers to analyze, understand,

and influence overt behavior.

Examples:1. Offering superior quality (Toyota), lower prices (Circuit City), greater

convenience (Peapod online groceries), easier availability (Coke is sold in millions of stores and vending machines), and better services.

2. Marketers can also influence overt behavior by offering products, stores, and brands that are trendier (The Gap), sexier (Calvin Klein jeans), more popular (Nike), and more prestigious (Mont Blanc pens) than competitive offerings

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Consumer Behavior• Some basic questions about consumer behavior

How do behavior approaches differ from affective and cognitive approaches to studying consumer behavior?

What is classical conditioning, and how is it used by marketers to influence consumer behavior?

What is operant conditioning, and how is it used by marketers to influence consumer behavior?

What is vicarious learning, and how is it used by marketers to influence consumer behavior?

What consumer behaviors are of interest to marketing management?

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Consumer Behavior• Some basic questions about consumer behavior

How much control does marketing have over consumers’ behavior?

How do affect and cognition and environments affect behavior? How does behavior influence affect and cognition and

environments? How can behavior theory be used by marketing managers? Does the frequency and quality of consumer behavior vary by

individuals, products, and situations?

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Consumer Environments• The consumer environment refers to everything external

to consumers that influences what they think, feel, and do.

Includes social stimuli, such as the actions of others in cultures, subcultures, social classes, reference groups, and families, that influence consumers.

Includes physical stimuli, such as stores, products, advertisements, and signs that can change consumers’ thoughts, feelings, and actions

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Consumer EnvironmentsThe consumer environment is important to marketing strategy

because it is the medium in which stimuli are placed to influence consumers

Examples:1. Marketers run commercials during shows that their target market watch in

order to inform, persuade, and remind them to buy certain products and brands.

2. Marketers send free samples, coupons, catalogs, and advertisements by mail to get them in consumers’ environments.

3. Stores are located close to populated areas to get them in the proximity of consumers

4. Websites become part of a consumer’s environment if they are contacted.

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Consumer Environments• Some basic questions about consumer environments

In what physical environments do consumer behaviors occur? How do environments affect consumers’ affect and cognition

and behavior? How do consumer affect and cognition and behavior affect the

environment? What effects does culture have on consumers? What effect does subculture have on consumers?

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Consumer Environments• Some basic questions about consumer environments

What effect does social class have on consumers? What effect do reference groups have on consumers? What effect do families have on consumers? In what ways do consumers influence each other concerning

marketing offerings? How powerful are interpersonal influences on consumer

behavior?

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The Wheel of Consumer Analysis MARKETING

STRATEGY

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Marketing Strategy

From a consumer analysis point of view, marketing strategy is a set of stimuli placed in consumers’ environments designed to influence their affect, cognition, and behavior.

• These stimuli include such things as products, brands, packaging, advertisements, coupons, stores, credit cards, price tags, salespeople’s communications, and in some cases, sounds (music), smells (perfume), and other sensory cues.