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CONSUMERBEHAVIOR
INTRODUCTION
Outline # 02
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DEFINITION
The term Consumer Behavior (CB) refers to
the behavior that individuals display in
searching for, purchasing, using, evaluating
and disposing of products and services thatthey expect will satisfy their needs.
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DEFINITION
The term Consumer Behavior (CB) refers to
the behavior that individuals display in
searching for, purchasing, using, evaluating
and disposing of products and services thatthey expect will satisfy their needs.
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What is consumer behavior?Activities people undertake when
obtaining, consuming, and disposing of
products and services
A field of study that focuses on consumer
activities
Scope goes beyond just why and howpeople buy to include consumption
analysis
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Cont
The study of CB is the study of howindividuals make decisions to spend their
available resources (time, money, effort)
on consumption related items.
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Cont
It includes the study of
What they buy it
Why they buy it
When they buy it
Where they buy it
How often they buy it How often they use it
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Toothpaste
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What they buy it
What type: Gel, regular, striped, in thetube or with pump
What Brand: Local, national, international,
generic
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Why they buy it
Prevent cavities
Remove stains
Brighten or whiten teeth
As a mouthwash
To attract romance
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Where they buy it
Supermarket
Drugstore
Convinces store
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How often they buy it
Weekly,
biweekly
monthly
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How often they use it
When they wake up
After each meal
When they go to bed
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Our Concern
Our focus will be mostly why and howconsumer make decisions to buy goods
and services and
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Afterpurchase
CB study goes far beyond these facets of CBand considers the uses consumers make of
the goods they buy (i.e. Consumption
Analysis) and their subsequent evaluations Toyota at Pakistan (Post purchase behavior)
Satisfaction not, but yes, dissatisfaction is
forwarded Role of marketer is formulate strategies in
their promotion
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Studies going on.
Consumer Researchers also interested howindividual dispose of their products
Do they store it
Throw it
Give it away
Sell it
Rent it
Lend it out
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Cont
Answers to these questions are veryimportant for marketers to match their
production and packaging accordingly
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Why the Field of CB Developed
While studying buying behavior theyrealized all customers can not be treated
as same
Mass marketing shifted to Segmentation(STP)
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Why the Field of CB Developed
After world war II rapid production
new products but 80% failed this
led to the study of CB
Factors like promotional appeals,
package, labels and warranties
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Why the Field of CB Developed
Government agencies in US like Federaltrade commission and Food and Drug
Administration began sponsoring
consumer research to discover the impactof products and advertisement on
consumer
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Why the Field of CB Developed
Green marketing
Global marketer started cross cultural
consumer research studies to develop
their products and their strategies.
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Personal Consumer
The individual who buys goods and services
for his or her own use, for household use,
for the use of a family member, or for a
friend.
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Organizational Consumer
A business, government agency, or other
institution (profit or nonprofit) that buys the
goods, services, and/or equipment
necessary for the organization to function.
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The Marketing Concept
Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than thecompetition
Marketing objectives:
Make what you can sell
Focus on buyers needs
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
The process and tools
used to study
consumer behavior
Two perspectives:
Positivist approach Interpretivist approach
Implementing theMarketing Concept
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
Process of dividing
the market into
subsets of consumers
with common needs
or characteristics
Implementing theMarketing Concept
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
The selection of one or
more of the segments to
pursue
Implementing theMarketing Concept
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The Marketing Concept
Consumer
Research
Segmentation
Targeting
Positioning
Developing a distinct image for
the product in the mind of theconsumer
Successful positioning
includes:
Communicating the benefitsof the product
Communicating a unique
selling proposition
Implementing theMarketing Concept
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Consumer Behavior Is
Interdisciplinary
Psychology
Sociology
Social psychology Anthropology
Economics
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Why study consumer behaviour?
Understanding consumer behaviour will
help you become better marketers as it is
the foundation for
Segmenting markets
Positioning products
Developing an appropriate marketing
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Why study consumer behaviour?
Knowledge of consumer behaviour is
essential for non-profit organizations
Non profits have different customers to
please
Donors, users, volunteers, general
public, government
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Why study consumer behaviour?
Public service initiatives have to bebased on an understanding ofconsumer behaviour
Canadas largest advertiser is thefederal government
Most government initiatives (e.g.,antismoking campaigns) need a
knowledge of consumer behaviour tosucceed
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Consumerbehaviour
helps toformulatepublic policy
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Why study consumer behaviour?
Better understanding of our own
consumption behaviour
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Studying consumer behaviors:
Consumer research methods
Positivists Research (Quantitative)
Observation
Interviews and Surveys
Experimentation
Interpretivists Research (Qualitative)
Ethnography
Semiotics
Depth Interviews
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Positivists Research Methods
Observation
Observing consumer behaviors in differentsituations such as natural or artificial settings
In-home observation: examining how and when
consumers use and consume products in their households
Shadowing: following and observing consumers in the
shopping and consumption processes. Researchers may
ask questions about reasons for behaviors
Physiological methods: techniques borrowed frommedicine, psychology and other sciences including
cameras to measure eye movement, galvanic skin
response, and MRI
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Positivists Research MethodsInterviews and surveys Surveys: efficient method for gatheringinformation from a large sample of consumers by
asking questions and recording responses
(telephone and Internet surveys, mall intercepts,
and mail questionnaires)
Focus groups: a group discussion led by amoderator skilled in persuading consumers to
thoroughly discuss a topic of interest
Longitudinal studies: repeated measures ofactivities over time to determine changes in
opinions, buying, and consumption behaviors
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Positivists Research Methods
Experimentation
Measuring cause-and-effect relationships by
manipulating independent variables to determine
the effects of changes on dependent variables
Laboratory experiment
Field experiment
Independent variables might include number ofadvertisements and package design
Dependent variables might include purchase intentor behavior
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Interpretivists Research Methods
Ethnography: how values and cultureinfluence usage of products and other
behaviors. Researchers place themselves in
the society under study.
Semiotics:The study of symbols and themeanings they convey. Researchers use
semiotics to discover the meanings of various
consumption behaviors and rituals.
Depth Interviews:Researchers also go forDepth Interviews using interpretivists research
th d
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