Instructor: Dr. West

Office Hours & Location:

W 11:00 – 12:00, Fisher 544

Phone & Fax: 292-0568 (O) 292-0879 (F)

E-mail: west@cob.osu.edu

MKT 750Consumer Behavior

Agenda

IntroductionsClass website: http://fisher.osu.edu/~west_284/mkt750w05

Syllabus highlightsCourse overviewAssignment

Syllabus Highlights

Course Objective: To develop a deeper understanding of and appreciation for consumers To learn how to better serve your customers

Class materials: Consumer Behavior: Building Marketing Strategy, 9th edition (Hawkins, Best, and Coney)

Harvard readings packet

Syllabus Highlights

Requirements:Individual Components Points

Participation 50 Memo & Case Write-up @ 50 points each100 Two exams @ 100 points each 200

Team Components Demographic research project 75 Advertising project 75

500

Keys to Success

Come to class prepared Read the material in advance Keep up on assignments

Treat others professionally Show pride in your work Be respectful

Please refrain from:

1. Coming in late2. Leaving class early3. Sidebar conversations 4. Cellular phone interruptions5. Eating food in the classroom

Considered appropriate:

1. Be considerate of others2. Get involved and participate3. Strive to be a good teammate4. Manage your time wisely

Honor Code

What is academic misconduct? Any activity that compromises the academic integrity of the institution or subverts the educational process.

How will it be dealt with? You will be dismissed from the class. The University Committee on Academic Misconduct will be notified.

Course Overview

What is consumer behavior?Why study it? How does this relate to marketing?Some “essential tools”

What is Consumer Behavior?

“The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impact that these processes have on the consumer and society”

-- Hawkins, Best, and Coney 2004

“The study of the cognitive, emotional, and physical activities associated with the perception, evaluation, choice, acquisition, use, and disposition of goods and services.”

OBTAINING

How you decide you want to buyProducts you consider buyingWhere you buy How you pay for productHow you transport product home

CONSUMING

How you use productHow you store the product in your homeWho uses the product How much you consumeHow product compares with expectations

DISPOSING

How you get rid of remaining productHow much you throw away after useIf you resell items yourself or through a consignment storeHow you recycle products

PERSONAL INFLUENCES

Personality Life-stage Values Income Resources

Attitudes Opinions MotivationsFeelings Past ExperiencesKnowledge

SITUATIONAL INFLUENCES

Brand Product FeaturesAdvertising DisplayPromotions Price Quality

Store AmbianceService Convenience Product Loyalty ProgramsPackaging Goals Assortment

InvolvementAvailability

Consumer Behavior

SOCIAL INFLUENCES

Justification Word of MouthCulture EthnicityFamily Peer Groups

What is Consumer Behavior?

An interdisciplinary field

Social Psychology

CognitivePsychology

Anthropology

Sociology

Economics

Physiology

Biology Computer Science

Why Study Consumer Behavior?

The Marketing Concept:Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create more satisfying exchanges than the competition.

Corollary:Success in the marketplace requires attracting, satisfying, and retaining customers.

Why Study Consumer Behavior?

No brand/product can appeal to all people.

Firms must segment the market into groups with relatively homogeneous preferences and target one or more groups.Firms must position their offerings in the hearts and minds of these individuals in a favorable way.

Why Study Consumer Behavior?

Our guesses about people are inaccurate.

This is because human nature leads us to believe that other people think like us

false consensusPeople tend to perceive differences even when they don’t exist

stereotyping

Why Study Consumer Behavior?

Therefore, we must strive to…Identify customer needs and wants

Engage in researchUnderstand how customers will respond to different messages and environments

Learn about and apply theoriesAnticipate where preferences are headed

Staying informed

Connections to Marketing

Segmentation & TargetingCustomer Acquisition & RetentionBuilding Loyalty

Positioning & RepositioningNew Products and Shaping Consumer PreferencesCustomer-based Brand Equity

Connections to Marketing

Communicating with your customers

Influence & PersuasionGetting attentionGenerating “buzz”

Essential Tools:

Consumer Decision Making

Demographics / Trends

Family Life Cycle

Information Processing

Consumer Decision Making

ChoiceAlternativeEvaluation

SearchNeed

RecognitionPost-Purchase

Evaluation

Consumer-side

Marketer-side

Action Desire Interest Awareness

Essential Tools:

Consumer Decision Making

Demographics / Trends

Family Life Cycle

Information Processing

Demographic Trends:

Aging population

Cultural Diversity & Globalization

                            

                                      

Lifestyle Trends:

Staying connectedCellular phonesInstant messaging

Health & Fitness AtkinsWater

Essential Tools:

Consumer Decision Making

Demographics / Trends

Family Life Cycle

Information Processing

Family Life Cycle

Single Newly Full Empty Married Nest

Nest

Essential Tools:

Consumer Decision Making

Demographics / Trends

Family Life Cycle

Information Processing

Consumer Information Processing

Stimuli Exposure

Attention

Comprehension

Acceptance

Retention Purchase

Assignment

Carefully read the syllabus!Chapters 1 of the textbookRead the K-Mart and Sears story and develop a “marketing strategy” for the new company