outline 2 cb intro

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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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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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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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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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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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Consumer

Research

Segmentation

Targeting

Positioning

Process of dividing

the market into

subsets of consumers

with common needs

or characteristics



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Consumer

Research

Segmentation

Targeting

Positioning

The selection of one or

more of the segments to

pursue



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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



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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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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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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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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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