consumer behavior (cb)-lecture 1
TRANSCRIPT
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Consumer behavior (CB)
Arash Najmaei
Arash.unity@gmail
H/P : 0172116875
Lecture one( 15 April2008)
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Assessment…
• 60% course works
1.10% attendance
2.10% class participation
3.40% assignment
• 40% final exam
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Referencing….
• “ Consumer Behavior” Leong G.Schifferman and Lesilie Lazar Kanuk. Pearson Prentice Hall ninth edition
• “ Consumer Behaviour” Michael R. Solomon , Prentice Hall
• “Consumer Behaviour” Hawkins,Mothersbaugh and Best, McGraw Hill
• Lecture notes
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introduction
• Consumer Vs. Customer
• The importance of consumer and CB
• Marketing evolution and shifts of power
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Consumer versus Customer
• Theoretically consumers are end users and customers are buyers but this definition brings about some degree of ambiguity . Therefore we define consumers as those who seek products to consume and satisfy they needs. Based on this definition, consumers are the most important element in marketing and understanding their behavior makes really sense.
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Application of CB
1. Marketing Strategy
2. Regulatory (Public) Policy
3. Social Marketing
4. Personal Consumer Skills
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Orientation in CB
• Anthropology( cultural and cross culture studies)
• Economics( demand, supply, purchasing power and so
on…)• History and geography• Psychology ( attitudes, perceptions, beliefs
an so on…)• Sociology
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Characteristics Affecting Consumer Behavior
1. Cultural
2. Social
3. Personal
4. Psychological
Key Factors in studying consumer behavior Key Factors in studying consumer behavior
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Factors Influencing Consumer Behavior
Cultural
Culture
Subculture
Social Class
Cultural
Culture
Subculture
Social Class
Social
Reference Groups
Family
Roles & Status
Social
Reference Groups
Family
Roles & Status
Personal
Age & Life-Cycle Stage
Occupation
Economic Situation
Lifestyle
Personality & Self-Concept
Personal
Age & Life-Cycle Stage
Occupation
Economic Situation
Lifestyle
Personality & Self-Concept
Psychological
Motivation
Perception
Learning
Beliefs & Attitudes
Psychological
Motivation
Perception
Learning
Beliefs & Attitudes
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Influences on the consumer purchase decision process
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Consumer and Marketing
• Peter Drucker and Consumer
The sole aim of business is to create consumer
• Consumer behavior elements
1. Pre-purchase
2. Purchase
3. Consumption
4. Post consumption
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Marketing Strategy and Consumer Behavior
MARKETANALYSIS
MARKETINGSTRATEGY
MARKETSEGMENTATION
CONSUMER DECISION
PROCESSES
OUTCOMES
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Questions….
• Why do we buy?• How do we buy?• Where do we buy from?• How much do I buy?• With whom do I buy?• For whom do I buy?• How often do I buy?• What brand do I buy?
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The Nature of Consumer Behavior
1. External Influences
2. Internal Influences
3. Self-Concept
4. Situations
5. Experiences and acquisitions
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Consumer decision process
• Consumer decision making steps (5 steps) • Consumer decision process and
corresponding model to elaborate their decision making process in order to analyze their behavior along different steps.
• CDP model
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• Five Stages:1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior
The holistic Buyer Decision Process
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CONSUMER DECISIONS:Theory and Reality in Consumer Buying
InformationSearch
ProblemRecognition
Evaluation ofAlternatives
Purchase
PostpurchaseEvaluation/Behaviors Theory
Complications
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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
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Consumer needs..
• Maslow’s famous hierarchy of needs helps both marketers and consumers to understand and classify their needs in order to find the best choice of satisfaction.
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Hierarchy of needs
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The Buyer Decision Process
• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Postpurchase behavior
• Needs can be triggered by:– Internal stimuli
• Normal needs become strong enough to drive behavior
– External stimuli• Advertisements• Friends of friends
Process Stages Process Stages
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The Buyer Decision Process
• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Post-purchase behavior
• Primary source of information:
• Internal
Retrieval and cognitive process
• external
Process Stages Process Stages
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• Consumers exhibit heightened attention or actively search for information.
• Sources of information:– Personal– Commercial– Public– Experiential
• Word-of-mouth
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Approaches to Search for information and Problem Solutions
INTERNAL
EXTERNAL
MemoryThinking
Word of mouth, media,store visits, trial CATALOG
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The information search stage
An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products.
An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low.
Personal sources (friends and family)
Public sources (rating services like Consumer
Reports)
Marketer-dominated sources (advertising or
sales people)
The evoked set: a group of brands from which the buyer can choose
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Determinants of External Search
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Cost vs. Benefits of Search
• Market Characteristics
• Product Characteristics
• Consumer Characteristics
• Situation Characteristics
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The mechanism of consumer loyalty achievement
• By studying consumer behavior marketers being able to understand different behavior of various consumers toward different products and brand .then they can set proper set of strategies in marketing mix policies to target and serve consumers in different segments which in return would result in consumer satisfaction , consumers satisfaction will undoubtedly lead to consumer loyalty and constant profit for company.
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Summary….
• Consumer and customer
• Consumer behavior
• Application of CB
• Orientation of CB
• Underlying characteristics
• Consumer decision process ( CDP)