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CONSUMER

BEHAVIOR

Lecturers: Do Huu Anh


BUS1127 - A.11 2022
Subjects: English for Business Studies Group:2
OUR TEAM MEMBER

Nhật Nam Thảo Nhi Yến Nhi Thanh Thảo Công Giang

Xuân Sơn Ngô Phát Anh Kiệt Việt Quân


After this lecture, you should be able to

Understanding the definition of what is


Marketing

Be Familiar with Model of Consumer


Behavior

Identify Characteristics Affecting


Consumer Behavior

Distinguish Types of Buying Decision


Behavior
Have you heard this phrase
before?

I'm a Marketer!
I work in Marketing!

What do you think they do?

MANY PEOPLE THINK OF

Marketing as:
Sales & Advertising
Distributing leaflets
What is Marketing?
Marketing is the process by which companies attract
Do promotions
Sales by phone customers, build strong relationships with customers
and create value for customers to derive value from
Sales & advertising are only a very customers themselves.
small part of the vast Marketing.
• What is a customer?
• The concept of consumer
behavior?

Consumer Behavior • A customer is an individual or organization that


the company wants to promote. They are the
ones who make the purchasing decisions.
Customers are the beneficiaries of the quality
characteristics of products and services

• “Customer behavior is the actions and decision


processes of people who purchase goods and
services for personal consumption”- according
to Engel, Blackwell and Mansard.
Model of Consumer Behavior
The environment Buyer’s black box Buyer responses

• Marketing stimuli • Buyer’s • Buying attitudes &


Others characteristics preferences
• Product Economics • Buyer’s decision • Purchase behavior:
• Price Social process what the buyer buys,
• Place Technological when, where and how
• Promotion much
• Cultural • Brand & company
relationship behavior
Factors Affecting Consumer Behavior

Social: Psycological:
• Reference Group
• Motivation
(Groups & Social • Perception
Networks) • Learnings
• Family
• Belief and
01 • Role and Status
03 Attitudes.

Personal:
Culture: 02 • Age and Life cycle stage 04
• Occupation
• Subculture • Economic Situation
• Social classes • Life Style
• Personality and Self concept
Cultural issues include:
Culture: • Language.
• Customs and habits.
• Life concept.
• Ethical values.
=> Cultural characteristics not only affect needs and wants,
but also affect consumer satisfaction. Especially advertising
and communication programs.
Subculture:

Subculture are groups of people within a culture with shared value systems based on
common life experiences and situations
• Generation subculture: 8x, 9x, Gen Z
• K-pop, Rock stars, US-UK, Marvel fandom
Social Classes
• Social classes are society’s
relatively permanent and ordered
divisions whose members share
similar values, interests, and
behaviors.
• Measured by a combination of
occupation, income, education,
wealth, and other variables.
Reference Group
Key Opinion Leaders (KOL) are people within a
reference group who exert social influence on others
because of special skills, knowledge and personality.

Groups & Social Networks


Also called influentials or leading adopters.
• 78% people trust recommendations from consumers.
• Buzz marketing: Marketers identify them to use as
brand ambassadors.
Family
• Family is the most important consumer-
buying organization in society.
• Family members can strongly influence
buyer behavior.

Social Roles and Status


• Social roles and status are the groups, family,
clubs, andorganizations that a person belongs to
that can define role and social status.
• Roles: consists of activities people are expected
to perform.
Personal Age and life-cycle stage: people change the
Age & Life-cycle Stage goods and services over their lifetimes
Occupation & Economic Situation
Occupation affects the goods and services bought by consumers.
Economic situation includes trends in:

Interest
Lifestyle
• Lifestyle is a person’s pattern of living as expressed
in his or her activities, interests and opinions.
• Measures a consumer’s AIOs (Activities, Interests,
Opinions) to capture information about a person’s
pattern of acting and interacting in the environment.
Personality and Self-Concept Psycological
• Personality refers to the unique psychological A person's shopping choices are also influenced by four
characteristics that lead to consistent and lasting responses factors:
to the consumer’s environment. • Motivation
• Examples of personality: traits such as ‘self-confidence’, • Perception
‘dominance’, ‘sociability’, ‘defensiveness’, ‘adaptability’ • Learning
and ‘aggressiveness’. • Belief and conception.
Perception
Perception is the process by which people select, organize, and
interpret information to form a meaningful picture of the world
from three perceptual processes.
• Selective attention is the tendency for people to screen out
most of the information to which they are exposed.
• Selective distortion is the tendency for people to interpret
information in a way that will support what they already
believe.
• Selective retention is the tendency to remember good points
made about a brand they favor and forget good points about
competing brands.

Motivation
• A motive is needs create pressure strong enough to cause
people to seek satisfaction.
• Motivation research refers to qualitative research designed
to probe consumers’ hidden, subconscious motivations.
Learning Belief & Attitude
Learning is the change in an individual’s behavior Belief is a descriptive thought that a person has about
arising from experience and occurs through interplay something based on:
of: • Knowledge
• Opinion
• Faith
Stimuli Responses Attitudes describe a person’s relatively consistent evaluations,
feelings, and tendencies toward an object or idea.

Drives Cues Reinforcement


Types of Buying Decision Behavior
• Complex buying behavior: when product is expensive,
risky, purchased infrequently and highly self-expressive.
• Example: PC, car, house.
• Dissonance-reducing buying behavior: expensive,
infrequent or risky purchase, but see little difference
amongst brands.
• Example: Internet service, Mobile service, cable TV
service, petrol, etc.
• Variety-seeking buying behavior: low consumer
involvement but significant perceived brand differences.
• Example: instant noodles, shampoo, shower gel, biscuits,
snacks, FMCG products, etc.
• Habitual buying behavior: low consumer involvement and
little significant brand difference.
• Example: salt, sugar, stationery, etc
Example about customer behavior
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