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    Consumer Behaviour

    Text: Consumer Behaviour, Hoyer andMcInnis, Houghton-Mifflin

    Instructor: S.Victor AnandkumarSchool of Management

    Pondicherry University

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    Consumer Behaviour for Marketing

    Decisions

    Some definitions for consumer behaviour

    Consumer Behaviouris the decision process and physical activity

    individuals engage in when evaluating, acquiring, using ordisposing of goods and services(Loudon and Della Bitta)

    Consumer Behaviourreflects the totality of consumers decisions with

    respect to the acquisition, usage and disposition of goods,

    services, time and ideas by (human) decision makingunits (over time)(Jacob Jacoby)

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    A blow up of the definition

    Consumer Behaviour reflects:

    thetotality aboutthe ofan bydecisionoverofdecisionconsumptionofferingmakingunitstime

    Whether

    What

    Why

    How

    When

    WhereHow much/How often/How long

    Acquisition

    Usage

    Disposition

    Products

    Services

    Time

    Ideas

    Informationgatherer

    Influencer

    Decider

    Purchaser

    User

    Hours

    Days

    Weeks

    Months

    Years

    MarketingstrategiesandTactics

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    Interdisciplinary Influences

    Experimental Psychology

    Clinical Psychology

    Human Ecology

    Microeconomics

    Social Psychology

    Sociology

    Macroeconomics

    Semiotics/Literary CriticismDemography

    History

    Cultural Anthropology

    Individual Focus

    Social Focus

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    Interdisciplinary Research issues

    Starting with Micro Consumer Behaviour (Individual focus)

    Experimental Psychology: Product role in perception, learningand memory process

    Clinical Psychology: Product role in psychological adjustment Microeconomics/Human ecology: Product role in allocation

    of individual or family resources

    Social Psychology: Product role in the behaviour of individuals

    as members of social groups Sociology: Product role in social institutions and group

    relationships contd./-

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    Interdisciplinary Research issues

    Contd./-

    Macroeconomics: Product role in consumers relationswith the marketplace

    Semiotics/Literary Criticism: Product role in the verbal

    and visual communication of meaning Demography: Product role in the measurable

    characteristics of a population

    History: Product role in societal changes over time

    Cultural anthropology: Product role in societys beliefsand practices

    ending with Macro Consumer Behaviour (Social focus)

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    How is Consumer Behaviour studied?Positivist Vs. Interpretivist approaches

    Differences Positivism Interpretivism

    Purpose Prediction of Understandingconsumer actions consumption practices

    Methodology Quantitative Qualitative

    AssumptionsNature of reality Objective Socially constructed

    Tangible, Single Multiple

    Knowledge generated Time free Time boundContext independent Context dependent

    View of causality Existence of identifiable, real causes Multiple, simultneous shaping events;

    Cause and effect cannot be isolatedResearch relationship Separation between researcher Interactive, cooperative with

    and subject researcher being part ofphenomenon under study

    Generalizability Yes Often not

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    Three research perspectives on

    Consumer Behaviour

    The Decision Making perspective

    Views the consumer as a rational, decision maker moving

    through a series of steps when making a purchase

    The Experiential perspective Views the consumer as someone who buys on impulses also

    and hence not always a rational, decision maker

    The Behavioural Influence perspective

    Views the consumer as propelled by circumstances created

    by strong environmental forces to make a purchase without

    necessarily developing strong feelings for the product

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    Why study Consumer Behaviour?

    (Micro) Marketing Implications Marketing Concept/Consumer Primacy

    Market Segmentation, Targeting and Positioning (S-T-P)

    Influencing Product/Service Choices

    (Macro) Societal Implications

    Understanding Popular Culture--e.g., Jackie Chan, Nike Understanding Consumer Culture around the World--e.g., Christmas as a

    Global Holiday

    How does Marketing Affect Consumers?--e.g., Happiness, Envy,Materialism

    Why Else? An Increasingly Significant Part of Human Behaviour

    Understanding Our Own Consumption

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    What are we going to do?

    CB and Solving Managerial Problems a 3-step process

    1. Gather information and identify theproblem/opportunity

    2. Identify the relevant consumer behavior concepts andhow they apply to the problem

    3. Develop a managerial strategy by identifying the

    managerial implications of each consumer concept.