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IntroductionConsumers Rule

Michael R. Solomon. 2012. Consumer Behavior: Buying, Having and Being 10th Edition. Prentice Hall.Ch.01

Lecture OutlineWhat is Consumer Behavior?Consumer Behavior is a ProcessActors in Consumer BehaviorSegmenting ConsumersMarketings Impact on ConsumerThe Meaning of ConsumptionThe Global ConsumerVirtual Consumption4What is Consumer Behavior?The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desiresExtended view of Consumer Behavior: Not just the study of what and how consumers buy, also focuses on how marketers influence consumers and how consumers use the products and servicesWe consume bread and butter to Lady GagaConsumer Decision Making ProcessConsumer Decision Making process isnt a sequential processThe person who buys the product might not be the same as the person who acts as an influencer

Consumer Behavior is a Process

The person who buys the product might not be the same as the person who acts as an influencer 9Consumers ImpactUnderstanding consumer behavior is good businessUnderstanding people/organizations to satisfy consumers needsKnowledge and data about customersHelp to define the marketIdentify threats/opportunities to a brand

Segmenting ConsumersMarket SegmentationExample: Heavy users of fast food industryHeavy users- 80:20

How does Mcdonalds reach to the desired segment? Enlist the segment characteristics of Mcdonalds?14Segmenting Consumers: DemographicsAge- Your age determines your wantsGender- Gillette for womenFamily Structure & Marital Status- Are you ever going to sell baby food to single men!Social Class & Income- People in SEC A will have similar choice of restaurantRace & Ethnicity- NikeGeography

DiscussionState whether you agree or disagree with the notion that products help to form group bonds, supporting your argument with examples from your list of products used by the group.

Segmenting Consumers: LifestylesPsychographicsinvolves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers.Compare and Contrast Pakistani lifestyle and UK lifestyleWhat are the products suitable for each respective lifestyle and how do consumers differ.Relationship MarketingSuccess = building lifetime relationships between brands and customersRegular interaction with customersDatabase Marketing

Marketings Impact on ConsumersPopular culture- consists of the movies, books, sports, celebrities and other forms of entertainment mass market consumes.Consumer generated content- blogs, chat rooms etcWhats the popular culture among your cohort?Video games/ facebook/ tweetingMarketers significantly influence the world and the information we learn!Advertisements, stores, and products communicate and persuade

The Meaningof ConsumptionPeople often buy products not for what they do, but for what they meanBrandsConvey image/personalityDefine our place in modern societyHelp us to form bonds with others who share similar preferencesRole Theory- consumer behavior resembles actions in a play

Brand Relationship TypesSome of the relationships that a person might have with a product:Self-Concept Attachment- product establishes your identityNostalgic Attachment- product serves as a link with the past selfInterdependence- daily routineLove- product elicits emotional bonds

The Global ConsumerGlobal Consumer CultureOne which unites people around the world by their common devotion to a brandHomogenized consumerPeople united by common devotion to:Brand name consumer goodsMovie starsCelebritiesLeisure activitiesPressure to understand similarities and differences of customers in various countries

Why do we have so many international clothing brands opening up in Pak?31