Week 1: Course Introduction &

Introduction to Consumer Behaviour

Presented by: Dr. Trevor Smith
January 24, 2014

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Career Track

Consultancy

Executive Employment

Entrepreneurship

Researcher/ Lecturer
Course Overview
This course explores the dynamics of
consumer behaviour throughout the
purchasing process and provides students
with the necessary skills to analyze and
shape marketing strategies for effectively
meeting consumer needs. Consumer
motivation, behavioural considerations
affecting consumer purchasing decisions;
and meeting consumer needs through
selling, advertising and distribution are
some of the key areas presented in this
course.
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Student Learning Objectives
Upon successful completion of this course, the
student should be able to:
Determine the factors that motivate consumers into
buying certain products/services.
Assess products as "bundles of satisfaction" and
develop strategies to maximize consumer
acceptance of such products.
Demonstrate an understanding of how consumers
process information into decisions and the
strategic implications of this process.
Demonstrate insight into the continuum of factors
that affect consumer decisions.
Develop an understanding of the environmental
considerations affecting the behaviour of
consumers.
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Readings
Required Text
Schiffman, L.G., Kanuk, L. L., Wisenblit, J. (2010),
Consumer Behavior, 10th Edition, Prentice Hall,
Upper Saddle River, NJ .

Articles
The material presented in the required text will be
supplemented with hand-outs. These hand-outs will
be distributed by the course instructors.
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Guest Lecture
A guest lecture will be delivered by an
industry practitioner aimed at enhancing
classroom knowledge with industry
experience. Date of guest lecture will be
announced on confirmation.
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Deliverables
Midterm Test 15% - February 28, 2014
Group Project 25% - Mar 28, 2014
Final Exam 60%
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Office Hours
Wednesdays 10-12noon

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Week Topic Deliverables
WK1 Introduction to Course
Introduction to Consumer Behaviour
Read course outline
Read chapter 1
WK2 Consumer Research & Market
Segmentation
Read chapter 2 & 3
WK3 Consumer Motivation Read chapter 4
WK4 Personality and Consumer
Behaviour
Read chapter 5

WK5 Consumer Perception Read chapter 6
WK6 Exam

Take Mid-Semester
Exam (February 28)
WK7 Consumer Learning Read chapter 7
WK8 Consumer Attitude formation and
Change & Communication and
Consumer Behaviour
Read chapters 8 & 9
WK9 Social Class and Consumer
Behaviour
Read chapter 11
WK10 Influence of Culture/Subculture /
Cross Culture on Consumer
Behaviour
Read chapters 12, 13 &
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Submit Project (March
28)
WK11 Consumer Decision Making and
Beyond
Read chapter 16
WK12 Revision
Exam Period) To be announced

Take Final Exam
Overview of Consumer Behavior
The Marketing Concept
The Marketing Mix and Relationships
Digital Technologies
Societal Marketing Concept
A Simplified Model of Consumer Decision
Making
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The behaviour that consumers display in
searching for, purchasing, using, evaluating,
and disposing of products and services that
they expect will satisfy their needs.

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The individual who buys goods and services for
his or her own use, for household use, for the
use of a family member, or for a friend.
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A business, government agency, or other
institution (profit or nonprofit) that buys the
goods, services, and/or equipment necessary
for the organization to function.

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Production
Concept
Selling Concept
Product Concept
Marketing
Concept
Assumes that consumers are interested
primarily in product availability at low prices
Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion
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Assumes that consumers will buy the product
that offers them the highest quality, the best
performance, and the most features
Marketing objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia
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Assumes that consumers are unlikely to buy a
product unless they are aggressively
persuaded to do so
Marketing objectives:
Sell, sell, sell
Lack of concern for customer needs and
satisfaction
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Assumes that to be successful, a company
must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than the
competition
Marketing objectives:
Make what you can sell
Focus on buyers needs

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What two Jamaican companies do you believe
grasp and use the marketing concept?
Why do you believe this?
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Consumer
Research
Segmentation
Targeting
Positioning
The process and
tools used to study
consumer behavior
Two perspectives:
Positivist approach
Interpretivist approach

Implementing the
Marketing Concept
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Consumer
Research
Segmentation
Targeting
Positioning
Process of dividing
the market into
subsets of
consumers with
common needs or
characteristics

Implementing the
Marketing Concept
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What products that you regularly purchase
that are highly segmented?
What are the different segments?
Why is segmentation useful to the marketer
for these products?
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Consumer
Research
Segmentation
Targeting
Positioning
The selection of one or
more of the segments
to pursue
Implementing the
Marketing Concept
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Consumer
Research
Segmentation
Targeting
Positioning
Developing a distinct image
for the product in the mind of
the consumer
Successful positioning
includes:
Communicating the benefits
of the product
Communicating a unique
selling proposition



Implementing the
Marketing Concept
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This product is
positioned as
a solution to
facial
redness.
Product
Price
Place
Promotion
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Customer
Value
Customer
Satisfaction
Customer
Retention
Customer
Trust
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Customer
Value
Customer
Satisfaction
Customer
Retention
Customer
Trust

Defined as the ratio between
the customers perceived
benefits and the resources
used to obtain those benefits
Perceived value is relative and
subjective
Developing a value
proposition is critical
Value, Satisfaction,
,Retention & Trust
How does Burger King create value for the
consumer?
How do they communicate this value?
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Customer
Value
Customer
Satisfaction
Customer
Retention
Customer
Trust
The individual's perception of the
performance of the product or
service in relation to his or her
expectations.
Customers identified based on
loyalty include loyalists, apostles,
defectors, terrorists, hostages,
and mercenaries


Value, Satisfaction,
Retention, Trust
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Customer
Value
Customer
Satisfaction
Customer
Retention
The objective of providing value is
to retain highly satisfied
customers.
Loyal customers are key
They buy more products
They are less price sensitive
They pay less attention to
competitors advertising
Servicing them is cheaper
They spread positive word of
mouth


Value, Satisfaction,
Retention & Trust
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Customer
Value
Customer
Satisfaction
Customer
Retention
Customer
Trust
The objective is for the customer to trust the
company and its products
Foundation for maintaining long standing
relationship with customer; helps to increase
loyalty
Trust is key
Online and off-line product
Neilsen Customize Research Services:
Word-of mouth communications/
recommendations from other consumers
(78% trusting such source)
Newspaper, consumer opinion posted
on-line, brand website (high in trust)
Online banner ads, text ads to mobile
phones (low in trust)


Value, Satisfaction,
Retention & Trust
Tracks costs and revenues of individual
consumers
Categorizes them into tiers based on
consumption behavior
A customer pyramid groups customers into
four tiers
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Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead
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Traditional Marketing Concept
Value and Retention
Focused Marketing
Make only what you can sell instead
of trying to sell what you make
Use technology that enables
customers to customize what
you make
Do not focus on the product; focus on
the need that it satisfies
Focus on the products
perceived value, as well as the
need that it satisfies
Market products and services that
match customers needs better than
competitors offerings
Utilize an understanding of
customer needs to develop
offerings that customers
perceive as more valuable than
competitors offerings
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Consumers have more power and access to
information
Marketers can gather more information about
consumers
The exchange between marketer and customers is
interactive and instantaneous and goes beyond the
PC.
Marketers must offer more products and services
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Marketers adhere to principles of social
responsibility in the marketing of their
goods and services; that is, they must
endeavor to satisfy the needs and wants of
their target markets in ways that preserve
and enhance the well-being of consumers
and society as a whole.

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Psychology
Sociology
Social psychology
Anthropology
Economics
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Consumer Research & Market Segmentation
Chapters 2&3
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