Definition of Consumer Behavior

Individuals or groups acquiring, using and disposing of products, services, ideas, or experiences Includes search for information and actual purchase Includes an understanding of consumer thoughts, feelings, and actions

Acquisition, Consumption and Disposal



Acquisition
    

Consumption
       

Receiving Finding Inheriting Producing purchasing

Collecting Nurturing Cleaning Preparing Displaying Storing Wearing Sharing

Acquisition, Consumption, Disposal



Disposal
   

Giving Throwing away Recycling depleting

Contributing Disciplines
     

Anthropology Sociology Psychology Economics History Political Science

Reasons for Studying Consumer Behavior



 

To stay in business by attracting and retaining customers To benefit from understanding consumer problems To establish competitive advantage because it is interesting!

The Circle of Consumption

   

Production Acquisition Consumption Disposal

The Circle of Consumption, continued

 

Typically, attention of marketers has focused on acquisition as the critical phase Only recently has more attention been given to include the full circle and the links between its elements
     

Disposal to acquisition Disposal to production Disposal to consumption Production to consumption Acquisition to consumption Acquisition to disposal

Consumer Research
The systematic and objective process of gathering, recording, and analyzing data for aid in understanding and predicting consumer thoughts, feelings, and behaviors. In a global environment, research has become truly international.

Important Factors in Consumer Research

   

Speed The Internet Globalization Data Overload

Types of Consumer Research



Basic Research


To expand knowledge about consumers in general When a decision must be made about a real-life problem

Applied Research


The Consumer Research Process

     

Defining the Problem and Project Scope The Research Approach The Research Design Data Collection Data Analysis and Interpretation Report

Marketing Management Philosophies

    

Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept
  

Green Marketing Cause-Related Marketing De-Marketing

Production Concept
 

Focus on Production View of consumers:



They will buy as long as the product is available and affordable. Model T: You can have any color as long as it s black. Demand higher than supply Non-competitive product cost

Focus on production justified:

 

Product Concept
 

Focus on the product View of consumers:



We have to have the best quality and the most features and they will buy.

 

Consumers might Consumers might best quality Consumers might quality difference Consumers might

not care about quality not be willing to pay for the not be able to discern prefer simplicity

Selling Concept
 

Focus on selling View of consumers:



We have to sell to them or else they won t buy. Introductory stages of product life cycle Unsought goods

Focus on selling justified:

 

Marketing Concept


Focus on marketing


Creating mutually rewarding exchange relationships Consumer needs and wants have priority They will buy if you fulfill their needs better than the competition.

View of consumers:


Societal Marketing Concept



Same as Marketing Concept plus an added concern for the well-being of society

Market Research: Research Designs

  

Exploratory Research Descriptive Research Causal Research

Exploratory Research
 

Literature Research Experience Survey

 

Focus Groups In-Depth Interviews

Exploratory Research
    

Insights and Ideas Precision: Specific Hypotheses Establishment of Priorities Increase of Familiarity with Problem Clarification of Concepts

Descriptive Research


Description of Characteristics of a Certain Group Estimation of the Proportion of People in a Specified Population who Behave in a Certain Way Specific Predictions

Descriptive Research


Longitudinal Studies
 

True Panel Omnibus Panel Field Study Sample Survey

Cross-Sectional Analysis
 

True Panel: Advantages

    

Brand Switching Analysis Collecting Classification Information Compensation for Participation/Time Accuracy Reduced Interaction Bias

True Panel: Disadvantages

  

Non-Representativity Drop-out Rate Payment

Causal Research
  

Laboratory Experiments Field Experiments Internal and External Validity

Market Segmentation Bases

     

Demographic Geographic Geo-Demographic Benefit Usage Lifestyle

Market Segmentation: Advantages

   

Specific Definition of the Market Satisfaction of Consumer Needs Meeting Changing Market Demands Assessment of Competitive Strengths and Weaknesses Efficient Allocation of Marketing Resources Precise Setting of Marketing Objectives

Haley, 1968 Toothpaste Market

   

Sensory Segment Worrier Segment Sociable Segment Independent Segment

Applications of Benefit Segmentation

    

Positioning Repositioning Competitive positioning New market opportunities/niches Positioning of multiple brands

Usage Segmentation
  

Rate of Usage Brand Loyalty Usage Situation

Lifestyle Segmentation Psychographics

    

Activities Interests Opinions Demographics VALS I and II



Maslow s Hierarchy of Needs

Consumer Decision Making: Types of Decisions

  

Extensive Problem Solving Limited Problem Solving Routinized Response Behavior

Problem Recognition: Causes in Current State

   

Depletion of Stock Dissatisfaction Decrease in Finances Increase in Finances

Problem Recognition: Causes in Desired State

   

New Need Circumstances New Want Circumstances New Product Opportunities Purchase of Other Products

Information Search and Evaluation



Incidental Learning

Directed Search and Evaluation



Internal only
 

loyalty impulse

Internal and External

Purchasing Process
   

When to buy? Where to buy? How to pay? How much to buy?

Post-purchase Behavior
 

Cognitive Dissonance Satisfaction/Dissatisfaction

Motivation
     

Definition Categories of Needs Arousal of Motives Motive Structuring Motive Conflict Motivation Theories

Motivation Theories
  

Freud Lewin Maslow

Freudian Theory


Basic Principles
 

Homeostasis Hedonism Id Ego Super-ego

The Structure of Personality

  

Projective Techniques
    

Word Association Sentence Completion Cartoon Test Thematic Apperception Test (TAT) Rorschach Test (inkblots)

Lewin s Field Theory

    

Life Space Person Environment Formula Conflict

  

Approach-Approach Avoidance-Avoidance Approach-Avoidance

Perception
  

Definition Threshold Levels The Perceptual Process

  

Selection Organization Interpretation

Selection


Internal Factor
       

External Factors
       

Attitudes Expectations Motives Attention Span Perceptual Defense Perceptual Vigilance Adaptation Perceptual Blocking

Color Contrast Size Position Intensity/Magnitude Movement Humor Fear

Organization
 

Closure Figure and Ground

Interpretation
     

Physical Appearance Stereotypes Irrelevant Cues First Impressions Jumping to Conclusions Halo Effect

Learning
  

Definition Learning Theories Marketing Applications

Learning Theories


Behavioral Learning Theories

 

Classical Conditioning Instrumental Conditioning Consumer Information Processing

 

Cognitive Learning Theories



The Structure of the Memory Memory Processes

Marketing Applications


Classical Conditioning
 

Creating Associations Stimulus Generalization

   

Family Branding Product Line Extensions Licensing Look Alike Packaging

Marketing Applications


Instrumental Conditioning
 

Rewards Reinforcement Schedules/Advertising

 

Intermittent Continuous

Involvement


High Involvement Hierarchy of Effects Cognition Attitude Behavior

Low Involvement Hierarchy of Effects Cognition Behavior Attitude

  

  

Communication
 

The Nature of Communication Communication Model

   

Sender Message Receiver Psychological Noise

Sender


Source Credibility
   

Trustworthiness Expertise Status Other Dimensions

The Sleeper Effect

The Sleeper Effect

 

Consumer forget the source of the message faster than the message itself. Over time, high-credibility sources lose power to change attitudes. Over time, low-credibility sources gain power to change attitudes. High-credibility sources need to reinstate message. Low-credibility sources should not reinstate message.

Message
      

Size, Color, Position Order of Presentation Humor Agony Advertising Content Fear Appeals (moderate!) Audience Participation

Order of Presentation
  

Climax order Anticlimax order Pyramidal order What works best, depends on consumer involvement.

Receiver
  

Selective Attention Selective Perception Selective Appeal

Cultural Dynamics
  

Definition of Culture Cultural Sensitivity Culture and its Elements

    

Material Culture Social Institutions Humans and the Universe Aesthetics Language

Culture Defined


The sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits required by humans as members of society. The distinctive way of life of a group of people, their complete design for living, a mosaic of human life.

Subculture
   

Definition Types of Subcultures Selected Subcultures Acculturation



the Learning of another Culture/Subculture

Types of Subcultures
      

Nationality Religion Region Ethnicity Age Gender and many more.

Stages of Acculturation
   

Honeymoon Rejection Tolerance Integration

Social Groups
  

Definition Types of Groups Group Properties

Types of Groups
   

Primary and secondary Formal and informal Membership and symbolic In and out

Group Properties
    

Status Roles Norms (Sanctions) Power Socialization

Power
    

Reward Coercive Legitimate Referent Expert

Reference Groups
 

Influence on product category choice Influence on brand choice Factors:

  

Luxuries vs. necessities Publicly vs. privately consumed Visibility