inroduction to consumer behavior.ppt
TRANSCRIPT
-
7/27/2019 Inroduction to Consumer Behavior.ppt
1/34
CONSUMER BEHAVIORAn Introduction
-
7/27/2019 Inroduction to Consumer Behavior.ppt
2/34
LEARNING CONCEPTS
Definition of CB
Consumer primacy
Environmental analysis
Positioning/differentiation
Segmentation
Theory and CB
Research perspectives
on consumer behavior
Exchange processes
Organizing model of
consumer behavior
-
7/27/2019 Inroduction to Consumer Behavior.ppt
3/34
Consumer Behavior . . .
. . . is defined as the
study of the buying
units and the exchange
processes involved inacquiring, consuming,
and disposing of goods,
services, experiences,
and ideas.
-
7/27/2019 Inroduction to Consumer Behavior.ppt
4/34
What is the difference between:
Consumer
Customer
Client
-
7/27/2019 Inroduction to Consumer Behavior.ppt
5/34
Consumers, Customers & Clients
Consumers are for products while customers arefor brands
For example, we are all consumers of cell
phones, but customers of differentcompanies/brands like Nokia, Samsung, Q-Mobile etc.
Client is a customer for whom the company
makes an effort to build long-term relationship(relationship marketing) primarily used inservice industries
-
7/27/2019 Inroduction to Consumer Behavior.ppt
6/34
Consumer Roles
Initiator
Influencer
Decision Maker
Buyer User
-
7/27/2019 Inroduction to Consumer Behavior.ppt
7/34
Three Research Perspectives on
Consumer Behavior
The Decision-Making Perspective
The Experiential Perspective
The Behavioral Influence Perspective
-
7/27/2019 Inroduction to Consumer Behavior.ppt
8/34
The Decision-Making Perspective . . .
. . . proposes that
buying results from
consumers perceiving
that they have aproblem and then they
move through a series
of rational steps to
solve the problem
Problem Recognition
Search
Alternative Evaluation
Choice
Post-acquisition
Evaluation
Generic Decision Model
-
7/27/2019 Inroduction to Consumer Behavior.ppt
9/34
The Experiential Perspective.
. . . proposes that in
some instances buying
results from the
consumers need for fun,
to create fantasies,
obtain emotions, and
feelings,
relates to the conceptof Hedonistic
consumption
-
7/27/2019 Inroduction to Consumer Behavior.ppt
10/34
The Behavioral InfluencePerspective . . .
. . . assumes that strong environmental forces propel
consumers to make purchases without necessarily first
developing strong feelings or beliefs about the
product.
-
7/27/2019 Inroduction to Consumer Behavior.ppt
11/34
Exchange Processes and
Consumer Behavior
Exchange is the
process that involvesthe transfer ofsomething tangible orintangible, actual or
symbolic, betweentwo or more socialactors.
-
7/27/2019 Inroduction to Consumer Behavior.ppt
12/34
Prerequisites for Exchange:
Two or more parties must be present
Each party has something of value to the other
Each party is capable of communication and delivery
Each party must be free to accept or reject the other'soffer
Each party must believe that it is appropriate or
desirable to deal with the other
-
7/27/2019 Inroduction to Consumer Behavior.ppt
13/34
Elements of Exchange
Six Types of Resources Are Exchanged:
Goods
Service
Money
Information
Status
Feelings
-
7/27/2019 Inroduction to Consumer Behavior.ppt
14/34
Dimensions of Exchange Relations
Four types of consumer exchange relations have been
identified:
Restricted versus Complex Exchange
Internal versus External Exchange
Formal versus Informal Exchange
Relational versus Discrete Exchange
-
7/27/2019 Inroduction to Consumer Behavior.ppt
15/34
Relational Exchange Current hot topic in marketing
Characteristics
long term
reciprocal obligations
non-economic rewards: market embedding - social ties between buyer
and seller increase perceived value of exchange. extensive formal and informal communication
high interdependence
planning
Relational exchange is also practiced between members of
marketing channel
-
7/27/2019 Inroduction to Consumer Behavior.ppt
16/34
Application Areas of Consumer
Behavior
Environmental Analysis
Marketing Research
Segmentation of the Market place
Product Positioning and Differentiation
Marketing-Mix Development
-
7/27/2019 Inroduction to Consumer Behavior.ppt
17/34
Product Positioning . . .
. . . is influencing how consumers perceive a brandscharacteristics relative to those of competitive offerings
Goal is to influence demand by creating a product with specific
characteristics (i.e. brand attributes) and a clear image thatdifferentiates it from competitors
-
7/27/2019 Inroduction to Consumer Behavior.ppt
18/34
Positioning Strategies
Attribute Positioning
Positioning a brand by creating linkages between brand and key
attributes and benefits. E.g., acceleration, reliability etc. for an
automobile
Competitive Positioning
Positioning a brand in relation to competitors. E.g. Coca Cola & PepsiCola
Away from the Competitor
Positioning the brand for a relatively small, uncontested segment that
is being ignored by major industry players. E.g. Pakola
Psychological Positioningpositioning a brand based upon dominant personality characteristic of
target market. E.g. Do the Dew
Category Positioning
Positioning the brand as the pioneer in such a manner that the brand
name becomes representative of the product category. E.g. Saniplast
-
7/27/2019 Inroduction to Consumer Behavior.ppt
19/34
Environmental Analysis . . .
. . . is the assessmentof the external forcesthat act upon the firmand its customers,and that create
threats andopportunities
-
7/27/2019 Inroduction to Consumer Behavior.ppt
20/34
The Natural Environment . . .
. . . includes the types of
raw materials available,
pollution, consumer fear
of contracting deadlydiseases, the expansion
of desert regions around
the globe, and various
weather phenomena,such as hurricanes or
drought
-
7/27/2019 Inroduction to Consumer Behavior.ppt
21/34
The Economic Environment Set of factors involving monetary, natural, and
human resources that influence firms/consumers. Behavioral Economics: Study of economicdecisions made by individual consumers and thebehavioral determinants of those decisions.
Major Contributions of Behavioral Economists: Originated and documented the idea that the consumer
sector of the economy can strongly influence the courseof the aggregate economy
Investigated what factors influence the decision offamilies to buy or save
-
7/27/2019 Inroduction to Consumer Behavior.ppt
22/34
The Technological Environment
Goal is to anticipatewhat changes in thetechnologicalenvironment willoccur and how thesewill influence thelifestyle and
consumption patternsof consumers
-
7/27/2019 Inroduction to Consumer Behavior.ppt
23/34
MARKETING RESEARCH . . .
. . . is applied consumer research designed to provide
management with information on factors that impactconsumers acquisition, consumption, and disposition
of goods, services, and ideas
-
7/27/2019 Inroduction to Consumer Behavior.ppt
24/34
Product
Promotion
Pricing
Distribution
Marketing-Mix Development .. . . involves the development andcoordination of activities involving the:
-
7/27/2019 Inroduction to Consumer Behavior.ppt
25/34
Promotional Mix
Advertising
Personal Selling Direct Marketing
Sales Promotion
Publicity & PublicRelations
Word-of-mouth
-
7/27/2019 Inroduction to Consumer Behavior.ppt
26/34
Price Changes
Predicting the likely impact of price changes onconsumers is an important consumer behavior area: How will consumers react when companies raise or lower the price
of a product?
Principles of perception can be applied to analyze if consumers willnotice a difference in price and if so, what effect it will have on theirbuying behavior
-
7/27/2019 Inroduction to Consumer Behavior.ppt
27/34
Product Distribution . . .
. . . will be influenced by
understanding how
consumers make their
purchasing decisions.For Example: For low
involvement decisions
(e.g., purchasing a soft
drink), the company mustuse extensive distribution
-
7/27/2019 Inroduction to Consumer Behavior.ppt
28/34
Market Segmentation . . .. . . involves subdividing the market place
into distinct subsets of customers havingsimilar needs and wants, each of which can
be reached with a different marketing mix
For a segment to be useful it should have:
1. Measurability: Assess needs and wants throughdemographic, psychographic, attitude andpersonality measures
2. Accessibility: Customers must be reachable bymarketing mix
3. Substantiality: Size and income to generatesufficient sales
-
7/27/2019 Inroduction to Consumer Behavior.ppt
29/34
Four Classifications of
Segmentation Variables:
Characteristics of the Person
Nature of the situation in which the product orservice may be purchased
Geography
Culture and Subculture adopted by the consumer
-
7/27/2019 Inroduction to Consumer Behavior.ppt
30/34
Characteristics of the Consumer
Demographic Characteristics
Behavioral Segmentation: price elasticity,
benefits sought, usage rate & pattern, brandloyalty
Psychographic and Personality Characteristics
-
7/27/2019 Inroduction to Consumer Behavior.ppt
31/34
Demographics is . . .
. . . the study of population changes and sub-cultural values of various demographic groups
based on such factors as age, gender, income,education, ethnicity, geography, nationality,household size, marital status, religion,occupation, etc.
-
7/27/2019 Inroduction to Consumer Behavior.ppt
32/34
Consumer Situations . . .
. . . consist of the temporary environmental factors that
form the context within which a consumer activity
occurs at a particular time and place
Types of situations: Social, physical, temporal, task
defined
-
7/27/2019 Inroduction to Consumer Behavior.ppt
33/34
Geographic Segmentation
Can include region,
size of cities and
counties, censusblocks, population
density, and climate
Geo-demographics is
the combination ofgeography and
demographics
-
7/27/2019 Inroduction to Consumer Behavior.ppt
34/34
Culture and Subculture
Culture is the way of life followed by the people in a
society
Subculture is a subdivision of a national culture and is
based on some unifying characteristics, such as
nationality, religion, ethnicity etc.