consumer behavior - the drz network behavior w1.pdfconsumption is a hedonistic activity, and thus...

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Consumer BehaviorWeek 1

Course Introduction

SESSION 1

1. Consumers & Consumption

Purpose: introduce the study of consumer behavior

SESSION 2

2. Learning about Consumers

Purpose: consumer research

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1.1 Consumers

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Activity:

Considering that consumption starts with oneselfbecause it is about oneself, answer the followingquestions in some detail:

What are we consuming?

When are we consuming?

How much are we consuming?

Why are we consuming?

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Activity

Following Douglas in that “to know why people doconsume, we need to understand why they sometimes donot”, state instances that you do not consume and seek toexplain why.

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Being a consumer, as having the identity of a consumer,is about persons or groups acquiring, using, anddisposing of products, services, ideas, or experiences.

In terms of the “who”:

Individuals: individual consumers.

Groups: families, clubs, organizations, purchasing

units with organizations, state organizations.

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In terms of the “how”:

Collecting,

Preparing

Displaying

Storing

Wearing

Sharing

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In terms of the “what”:

Products: tangible goods.

Services: intangible goods.

Ideas: patents, inventions, creations.

Experiences: emotions, impressions.

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1.2 Consumption

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Consumption is typically viewed as a cycle.

For Arnould et al. the consumption cycle consists ofinterrelated activities of

Acquisition

Consumption

Disposal

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For Babin & Harris the consumption cycle consists of:

Desires – needs & wants

Exchanges – giving up money for acquiringgoods/services that have a grater value

Costs & benefits – the negative/positive effects ofconsumption

Reactions – evaluating the costs & benefits

Values – establishing the value of the consumptionexperience

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1.3 Consumer Behavior

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Following Thorndike’s law of effect, in that what ispleasurable is repeated and what is painful avoided,consumption is a hedonistic activity, and thus consumerbehavior the set of activities leading to pleasure. This isan psychological view where consumption is constrainedby pleasant experiences and habits i.e. action is afunction of pleasure.

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For Babin & Harris consumption behavior refers to “theset of value-seeking activities that take place as people goabout addressing real needs”. This is an economic viewwhere consumption is considered to be the fundamentalpremise of our society.

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For critic Jean Baudrillardconsumer behavior is associatedwith “consummation i.e.productive waste...”

This is a social criticism viewwhereby consumption is viewedas phenomenon of excess that isimposed by firms via advertisingor consumer obsession.

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Consumer behavior as a study integrates thinking from

Anthropology: cultural patterns in rituals and myths.

Economics: utility as determinant of demand.

Geography: resource availability and population.

Psychology: attitudes towards consumption.

Sociology: critical and discursive explanations of

consumption.

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1.4 Current Context of Consumption

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The socioeconomic context of contemporaryconsumption consists of:

Globalization: trend whereby the interconnection amidsocioeconomic actors across national territories isenlarged in scope and speed.

Localization: trend whereby the sense of identity,home and community is preserved and enhanced.

Consumption is thus glocalized.

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Glocalization brings about the accelerated movement ofpeople, ideas, commodities and factors of production.

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Associated with glocalisation is hybridization in thatconsumer products by being removed from their originalcontact get transformed to fit the new context.

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2 Learning About Consumers

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Learning about consumer behaviors involves research inconsumption patterns and practices. In principle itinvolves:

Designing data collection tools

Analyzing collected data – data mining

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Approaches

There are two broad approaches to study consumers:

Interpretative research – aims at explaining motives

Quantitative research –aims at establishing statisticalrelationships

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Data

Regardless of the approach there are two types of datathat are generated and thus research:

Primary data/research – generated directly fromconsumer studies

Secondary data/research – aggregated data generatedvia:

National data: country databases and statistics

Scanner data: obtained through bar codes

Syndicated data sources: marketing databases

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Process

The processes of direct consumer research involve thefollowing steps

A Planning phase

1. Establishing the focus of the investigation:

what is the research about?

what product/service is the study concerned with?

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2. Developing a research approach to the question –deciding on whether research is

Causal: inquiring into relations between variables Example: do coupons bring about increased sales?

Descriptive: inquiring into outcomes Example: what do customers use as criteria for

choosing which restaurant to use? Explorative: inquiring into the features of phenomena

Example: is there any relationship between age andperception of quality in the provision of our services?

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Predictive: forecasting outcomes

Example: at which times of the year do people ofdifferent age groups prefer to take overseas holidays?

Explanatory: identifying the causes of observed outcomes

Example: does the perceived threat of unemploymentreduce spending on our product?

Control: what happens if the variables change

Example: if unemployment increases, willconsumption of our product decrease?

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3. Identifying population and sample Probability sample:

Random

Stratified according to population features (age,gender, income, place)

Non-probability sample

Quota to include a population

Purposive

Convenience

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4. Formulating a research design – deciding on Research strategies:

survey (past/future)

observation (present)

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4. Formulating a research design – deciding on Research methods:

qualitative techniques:

focus groups

projective techniques – word associations

Ethnography – observations followed byinterviews

Diaries

Documentary analyses

quantitative techniques:

questionnaires

observational techniques

recording actual behavior

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5. Establishing the success criteria for assessing both theresearch process and the verification of hypotheses

B Implementing phase

1. Collecting data

2. Analyzing data

3. Drawing first conclusions

4. Pre-evaluating research to bring improvements

5. Carrying out improvements

6. Drawing final conclusions

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7. Comparing final conclusions against availableliterature

8. Making recommendations for further research

C Evaluating phase

Assessing the research process in its entirety

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Resources

Check out the readings on zamaros.net

Guide to Understanding Consumer Psychology

Motivate Customers

Journal of Consumer Research

General

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Activity:

Research project preparation

Project topic:

Identifying consumption behaviors and motives

Project plan: What commodity/commodities do you want to study?

Where will you carry out the study?

When can you carry out the study?

Do you know any behaviors already?

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Project research methodology What data do you need?

Which of the following will you use?

Questionnaires

Interviews

Observations

Diaries

Documentary analysis

Project timetable Check the course schedule on the syllabus

Detail the weekly list of tasks

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The end result (week 8):

Written project Structured

Appropriately laid out

Referenced

Appended supplementary materials

Bound

Its presentation