Class 2 - Introduction to Consumer Behaviour

12:26 PM

Consumer behaviour
The marketing concept: at the core of marketing. Take the whole marketing subject, how would you
summarize marketing.” Meeting the needs and wants of the consumer profitably.

How do we meet the marketing concept?

- 3 phases of the marketing concept
o Bring it to firm
o Disseminate it
o React to it

Textbook definition: 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 impacts that these
processes have on the consumer and society.
- Consumer behaviour is a complex, multidimensional process.
- Customer-centrism = critical
- CB is a process kind of discipline

Consumer Behaviour and Marketing Strategies

- Consumer behaviour and marketing strategies are connected
- What is marketing strategy?
o Influences the behavioural setting – the probability of purchase is increased. (Enhance the likelihood a
consumer purchases a product, increase profitability)
o Control reinforcement & schedule
▪ Brand loyalty
o You must understand the consumer
o Consists of product, price, communications (promotion), distribution, and service

Customer Analysis
1. Objectives – Who?
2. Customer targets – Why?
3. Competitor targets – How?
4. Core strategy – Where?
5. Implementation: marketing mix – When?
Product – Promotion – Place – CRM (Consumer Relationship Management) = Consumer behaviour needed

1. 1. Who are our customers?

o Must understand the consumer
▪ Future, present, and past customers
▪ Competitor’s consumers as well
o Research
o Who? – Segmentation
▪ Segmentation = breaking down a mass market into identifiable groups

Market Segmentation
o Tailor marketing
o To be viable, a segment must be large enough to be served profitably.
o Efficiency and effectiveness
o Segmenting and choosing segments
▪ Engage in segment
▪ Break down in mass market
▪ Select the segment in which we want to focus our marketing on – target market
o Groups of customers
o Targets

4 main ways to segment

o Geographic
o Demographic
o Psychographic (lifestyle, personality)
o Behavioural

Requirements of effective segmentation

o Distinctive
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Measurable

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Consumer Behaviour Page 1
 o Measurable
o Sustainable
o Accessible

Criteria – satisfied by segmentation

o Homo within, hetero between
o Size
o Growth
o Identifiable and accessible
o Cost
o Compatibility

Market Segmentation involves four steps:

o Identifying product-related need sets
o Grouping customers with similar need sets
o Describing each group
o Selecting an attractive segment(s) to serve
2.
3.
2. 2. Why do consumers buy?
o Trigger: a NEED = represents the difference between ideal and actual
▪ Trigger: motivational benefits = energizing force that costs us to satisfy a need
o Link: attributes to benefits
▪ Consumers don’t buy attributes, they buy BENEFITS
• Ex. Better Hz, benefits = better refresh rate, more FPS

3. 3. How do consumers make purchases decisions

o Information search
▪ Internal and external sources
▪ Categorization
• Evoked/considered set
o Evaluation
▪ Multi-attribute model
o Post purchase behaviour evaluation
▪ Cognitive dissonance
▪ Satisfaction
• Expectation theory
o Performance evaluation
▪ Repurchase? (internal)
▪ WOM (external)
4.
5. 4. Where and when?
o Where?
o When?

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