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Course Outline
Consumer Behavior
Twelfth Edition
Welcome…!!!
4
Learning Objectives
1. Origin of CB
2. What Consumer Behavior Is and the Different
Types of Consumers.
3. To Understand the Relationship Between
Consumer Behavior and the Marketing Concept,
the Societal Marketing Concept, as Well as
Segmentation, Targeting, and Positioning.
4. To Understand the Relationship Between
Consumer Behavior and Customer Value,
Satisfaction, Trust, and Retention.
Chapter One Slide 5
Learning Objectives (continued)
7
What is Consumer Behavior???
Consumer Behavior
Defined
Consumer behavior is the study of consumers’ choices
during searching, evaluating, purchasing, and using
products and services that they believe would satisfy their
needs.
Why study of Consumer Behavior important?
Marketing
Defined
Marketing is the activity, set of institutions, and processes
for creating, communicating, and delivering offerings
that have value for customers, clients, partners, and
society.
What Can a Car Help Express About its
Owner?
Vices and Virtues
20
Sales Orientation
• Market Segmentation
• Targeting
• Positioning
• The Marketing Mix (4 Ps)
– Product or service
– Price
– Place
– Promotion
Consumer Behavior in Digital Era
Marketing Mix : 4C’s
4 P’s
Product Cooperation
Place Communal Activation /
Community
Price Currency
Promotion Conversation
Learning Objective 1.2
Defined
A promotional strategy that consists of tracking and
targeting users across their computers, mobile phones, and
tablets, and sending them personalized ads based on their
interests, as observed by marketers.
Learning Objective 1.3
• LOYALISTS,
• APOSTLES,
• DEFECTORS,
• TERRORISTS,
• HOSTAGES, AND
• MERCENARIES
Customer Relationships
For Discussion:
• Provide two examples where brands used technology to
engage consumers/enhance customer relationships.
• Provide two examples where technology was used to add
value to the consumer.
Measures of Customer Retention
▪ P&G
–Shampoo: Scalp Care handbook
–Detergent :-
• White and color fabric care,
•which temperature is best for which fabrics,
•how to handle different kind of stains
▪ Gillettee
–Shaving: Facial care and proper shaving
2 Forms of Engagement
• Emotional Bonds
– Personal commitment and attachment
– Social media attempts to get consumers to engage
emotionally with products and brands
• Transactional Bonds
– Mechanics and structures that facilitate exchanges
between consumers and sellers
– Factors like assortment and transaction ease could
shape the relationship
• How would
you describe
your
personality?
• How does it
influence
products
that you
purchase?
• Freudian theory
– Unconscious needs or drives are at the heart of
human motivation
• Neo-Freudian personality theory
– Social relationships are fundamental to the
formation and development of personality
• Trait theory
– Quantitative approach to personality as a set of
psychological traits
Consumer Social
Dogmatism
innovativeness character
Optimum
Need for Sensation
stimulation
uniqueness seeking
level
Variety-
novelty
seeking
Chapter Five Slide
Consumer Innovativeness
• Willingness to innovate
• Four Motivational factors:
– Functional Factors- Interest in Performance
– Hedonic Factors-Feeling gratified by using the innovation
– Social Factors-Desire to be recognized by others
– Cognitive Factors-mental Stimulation experienced by using innovation
• VS Features of Products
• VS v/s Time of the Day
– Greater VS Arousal Low
• Leader’s brand fare better Arousal Low
• Follower’s Brand do better Arousal is heightened
• VS is more Purchasing for others…
Cognitive Personality Factors
Need for Visualizers versus
Cognition verbalizers
• Need for cognition (NFC)
– A person’s craving for enjoyment of thinking
– Individual with high NFC more likely to respond to
ads rich in product information
• High NFC Rich in Product info./Description
– Spend more time processing/recalling info
• Low NFC Attracted by back ground /
Peripheral aspect/attractive model/ celebrity
Chapter Five Slide
Cognitive Personality Factors
Materialistic
People
• Gender
– Some products perceived as masculine (coffee and
toothpaste) while others as feminine (bath soap
and shampoo)
• Color
– Color combinations in packaging and products
denotes personality
• Consumers have a
variety of enduring
images of themselves
• These images are
associated with
personality in that
individuals’
consumption relates
to self-image
1
2
Freud’s Theory and an Indian Youth Brand
Reflecting the importance of Personality
Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Learning Objectives
• Acquired Needs
– (Psychogenic/Secondary) : Learned in response to
our culture or environment.
• E.g. Self Esteem, Prestige, Affection, Power & Learning
• Intrinsic v/s Extrinsic Needs
+ve outcome
-ve Out come
Need, Want, Desire
Fear, Aversion
14
Motivations and Goals
Positive Negative
• Motivation • Motivation
• A driving force • A driving force away
toward some object from some object or
or condition condition
• Approach Goal • Avoidance
• A positive goal Goal
toward which • A negative goal from
behavior is directed which behavior is
directed away
Chapter Four Slide 15
Needs & Goals are Interdependent
• What products
might be purchased
using rational and
emotional motives?
• What marketing
strategies are
effective when there
are combined
motives?
• Aggression
• Rationalization
• Regression
• Withdrawal
• Projection
• Daydreaming
• Identification
Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Arousal
of
Motives ???
25
Arousal of Motives / Need
Affiliation
Aggression Cognizance
Rejection
Nurturance
Succorance
Abasement Exposition
Play
Chapter Four Slide 32
Murray’s Psychogenic Needs 33