Consumer behavior (CB

)
Arash Najmaei Arash.unity@gmail Arash.unity@yahoo.com H/P : 0172116875 Lecture one( 15 April2008)

Assessment…
• 60% course works 2.10% attendance 3.10% class participation 4.40% assignment • 40% final exam

Referencing….
• “ Consumer Behavior” Leong G.Schifferman and
Lesilie Lazar Kanuk. Pearson Prentice Hall ninth edition

• “ Consumer Behaviour” Michael R. Solomon , Prentice
Hall

• “Consumer Behaviour” Hawkins,Mothersbaugh and
Best, McGraw Hill

• Lecture notes

introduction
• Consumer Vs. Customer • The importance of consumer and CB • Marketing evolution and shifts of power

Consumer versus Customer
• Theoretically consumers are end users and customers are buyers but this definition brings about some degree of ambiguity . Therefore we define consumers as those who seek products to consume and satisfy they needs. Based on this definition, consumers are the most important element in marketing and understanding their behavior makes really sense.

Application of CB
1. 2. 3. 4. Marketing Strategy Regulatory (Public) Policy Social Marketing Personal Consumer Skills

Orientation in CB
• Anthropology( cultural and cross culture studies) • Economics ( demand, supply, purchasing power and so on…) • History and geography • Psychology ( attitudes, perceptions, beliefs an so on…) • Sociology

Characteristics Affecting Consumer Behavior
Key Factors in studying consumer behavior

• • • •

Cultural Social Personal Psychological
6-8

Factors Influencing Consumer Behavior
Cultural Culture Subculture Social Class Social Reference Groups Family Roles & Status Personal Age & LifeCycle Stage Occupation Economic Situation Lifestyle Personality & Self-Concept Psychological Motivation Perception Learning Beliefs & Attitudes

Influences on the consumer purchase decision process

Consumer and Marketing
• Peter Drucker and Consumer The sole aim of business is to create consumer • Consumer behavior elements 4. Pre-purchase 5. Purchase 6. Consumption 7. Post consumption

Marketing Strategy and Consumer Behavior

MARKET ANALYSIS

MARKET SEGMENTATION

MARKETING STRATEGY

CONSUMER DECISION PROCESSES

OUTCOMES

Questions….
• Why do we buy? • How do we buy? • Where do we buy from? • How much do I buy? • With whom do I buy? • For whom do I buy? • How often do I buy? • What brand do I buy?

The Nature of Consumer Behavior
1. 2. 3. 4. 5. External Influences Internal Influences Self-Concept Situations Experiences and acquisitions

Consumer decision process
• Consumer decision making steps (5 steps) • Consumer decision process and corresponding model to elaborate their decision making process in order to analyze their behavior along different steps.

• CDP model

The holistic Buyer Decision Process
• Five Stages:
1. 2. 3. 4. 5. Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase behavior
6 - 16

CONSUMER DECISIONS:
Theory and Reality in Consumer Buying
Problem Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Evaluation/ Behaviors

Theory Complications

Consumer Decision-Making Process
Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps

Evaluation of Alternatives

Purchase

Postpurchase Behavior

Consumer needs..
• Maslow’s famous hierarchy of needs helps both marketers and consumers to understand and classify their needs in order to find the best choice of satisfaction.

Hierarchy of needs

The Buyer Decision Process
Process Stages
• • • • • Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

• Needs can be triggered by:
– Internal stimuli
• Normal needs become strong enough to drive behavior

– External stimuli
• Advertisements • Friends of friends
6 - 22

The Buyer Decision Process
Process Stages
• • • • • Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase behavior

• Primary source of information: • Internal Retrieval and cognitive process • external
6 - 23

• Consumers exhibit heightened attention or actively search for information. • Sources of information:
– – – – Personal Commercial Public Experiential

• Word-of-mouth

Approaches to Search for information and Problem Solutions

INTERNAL
Memory Thinking

EXTERNAL
Word of mouth, media, store visits, trial
CATALOG

The information search stage
An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products. An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low.

Personal sources (friends and family) Public sources (rating services like Consumer Reports) Marketer-dominated sources (advertising or sales people)

The evoked

set: a group of

brands from which the buyer can choose

Determinants of External Search

Cost vs. Benefits of Search
• Market Characteristics • Product Characteristics • Consumer Characteristics • Situation Characteristics

The mechanism of consumer loyalty achievement

• By studying consumer behavior marketers being able to understand different behavior of various consumers toward different products and brand .then they can set proper set of strategies in marketing mix policies to target and serve consumers in different segments which in return would result in consumer satisfaction , consumers satisfaction will undoubtedly lead to consumer loyalty and constant profit for company.

Summary….
• • • • • • Consumer and customer Consumer behavior Application of CB Orientation of CB Underlying characteristics Consumer decision process ( CDP)

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