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Chapter 1INTRODUCTION TO

CONSUMER BEHAVIORSyed Muhammad Fahim

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Consumer Behavior–

You are what You buy

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A girl was shopping at the local supermarket where she selected:A half-gallon of 2% milk,A carton of eggs,A quart of orange juice,A head of romaine lettuce,A 2 lb. can of coffee, and,A 1 lb. package of chicken.

Humor

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As she was unloading the items on the conveyor belt to check out, a drunk standing behind her watched as she placed the items in front of the cashier.While the cashier was ringing up the purchases, the drunk calmly stated, 'You must be single.'

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She was a bit startled by this proclamation, but she was intrigued by his intuition, since she was indeed single. She looked at the six items on the belt and saw nothing particularly unusual about her selections that could have tipped off the drunk to her marital status.Curiosity getting the better of her, she said: 'Well, you know what, you're absolutely right. But how on earth did you know that?'

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The drunk replied, 'Cause you're ugly.'

Customer Behavior.flv

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Recommended Books

1. Evans, Martin, Consumer Behavior, John Willey & Sons Inc. (2006)

2. Solomon, Michael, R., Consumer Behavior: Buying, Having and Being

3. Schiffman & Kanuk, Consumer Behavior

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Syllabus

Chapter#1

1.1 Definition

1.2 Application of the understanding of consumer Behavior

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Chapter#2 Market Segmentation

2.1 Marketing Mix

2.2 Demographic Segmentation

2.3 Geographic Segmentation

2.4 Benefit Segmentation

2.5 Usage Segmentation

2.6 psycho graphic Segmentation

2.7 Product Positioning

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Chapter#3 Consumer Motivation

3.1 The influence of Need

3.2 Need Theories

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Chapter #4 Perception and Consumer Behavior

4.1 Perceptual Selection

4.2 Perceptual Interpretation

4.3 Price Perception

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Chapter#5Attitude and Consumer Behavior

5.1 Nature of Consumer Attitudes

5.2 Role of Attitudes in Developing Marketing Strategy

5.3 Relationship between beliefs, attitudes and behavior

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Chapter#6 Consumer Decision Making

6.1 Problem recognition

6.2 Information Search and Evaluation

6.3 Purchase process

6.4 Post purchase behavior

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Chapter#7 Lifestyle and personality influences

7.1 Application of lifestyle characteristics to marketing characteristics

7.2 Personality theories and consumer behavior

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• Think of a recent important purchase– briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase

• What influenced you at each step?

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Do you agree with the statement that the impact of Digital revolution on consumer behavior is much greater than ever before?If Yes could you give some examples?

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Answer

1.Consumers have more power than before

2. Consumers have more access to the information than before

3. Marketers can offer more services and products than before

4. Exchange has become more interactive and instantaneous

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Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of AlternativesEvaluation

of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior - Consumer Decision Process.flv

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Consumer Behavior- Definition

Consumer behaviour is the study of when, why, how, and where people do or do not buy a product (wikipedia)

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Consumer Behavior- definition

‘consumer behavior is the process whereby individuals decide whether what, when, where, how and from whom to purchase goods or services.’ (Walter and Paul )

   ‘Consumer behavior consists of the acts of individuals obtaining and using goods and service, including the decision processes that proceed and determine these acts.’ (Kurtz and Boone )

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Definition

Consumer behavior reflects all decisions about the acquisition, consumption and disposal of an offering by people over time.

Needs vs Wants.flv

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Implications of our Definition

• Totality of Decisions (all decisions)» Whether?» What?» Why?» How?» When?» Where?» How much?» How often?

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Implications of Our Definition, cont.

• In addition to buying, “CB” includes:» Acquisition» Consumption» Disposal

• An “offering” can be» product» service» idea» activity

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GOODS

SERVICES

EVENTSEXPERIENCES

PERSONS

PLACES

PROPERTIES

ORGANIZATIONS

INFORMATION

IDEAS

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Implications of Our Definition, cont.

• Consumer behavior» may involve several people (decision making

units)» is dynamic (changes over time)

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Groups Interested in Consumer Behavior Issues

• Marketing Managers

• Consumers

• Regulators and public policy makers

• Ethicists