Slide 1 of 26

CONSUMER BEHAVIOR
Upon completion of this subject, students should be able to:

•have gained an overall understanding of consumer, household and

organisational buying behaviour;
•be provided with a theoretical basis for understanding buyer
behaviour;
•have developed an awareness of the factors (internal, external and
situational) that influence the consumer decision process;
•have gained a knowledge base that helps to make effective
decisions as a marketer; and
•be able to discuss the concepts involved in buyer behaviour.

Slide 2 of 26
WEEK TOPIC CHAPTER

1 Overview 1

2 Market STP 2

3 Motivation, personality & emotion 3

4 Perception 4

5 Learning & memory 5

6 Attitude 6

7 Reference Group 9
Household structure & consumption 10
Mid-term exam

8 Culture 11
Subculture 12

9 Cross-cultural 13

10 Decision- making process 14

11 Review
Slide 3 of 26
Assessments

• Mid-term exam: 40% • Final exam: 60%

– Short-answer questions – Written/ Opened- book/
& case- study analysis exam
– Including short-answer
questions & case study
analysis

Slide 4 of 26
 r 1
p te
a
Ch

CONSUMER BEHAVIOR AND

MARKETING STRATEGY
Learning objectives

When you have worked through the chapter, you should

understand:
•Define consumer behavior & nature of consumer behavior
•Why studying consumer is important for marketers
•The implication of consumer behavior for marketing
strategies
•A working model of consumer behavior
•The review of marketing principles
•Consumers in technological changing environment

Slide 6 of 26
What is consumer behavior?
Consumer Behavior is defined as “the interplay of
forces that takes place during a consumption process,
within a consumers’ self and his environment”.
- 
• This interaction takes place between three elements
eg. cognition, affection and behavior;
• It continues through pre- purchase activity to post
purchase experience
• It includes the stages of evaluating, acquiring, using
and disposing of goods and services”.
•The “consumer” includes both personal consumers
and business/industrial/organizational consumers.
Slide 7 of 26
 Why studying consumer behavior is important
in marketing?
How can a car help express its owners’ characteristics?

Slide 8 of 26
Development of the Marketing Concept

The essence of marketing consists of satisfying

consumers’ needs, creating value, and retaining
customers.
Slide 9 of 26
Marketing Concept Requirements

• Consumer Research
• Market Segmentation, Targeting and
Positioning
• The Marketing Mix (4 Ps)
– Product or service
– Price
– Place
– Promotion

Slide 10 of 26
Successful Relationships

Value, Satisfaction,
• Defined as the ratio
and Retention between the customer’s
• Customer Value perceived benefits and the
• Customer resources used to obtain
Satisfaction those benefits
• Customer • Perceived value is relative
Retention and subjective
• Developing a value
proposition is critical

Slide 11 of 26
Successful Relationships

Value, Satisfaction,
• The individual's perception
and Retention
of the performance of the
• Customer product or service in
Value relation to his or her
• Customer expectations.
Satisfaction • Customer groups based on
• Customer loyalty include loyalists,
Retention apostles, defectors,
terrorists, hostages, and
mercenaries
Slide 12 of 26
Successful Relationships

Value, Satisfaction, • The objective of providing

and Retention value is to retain highly
satisfied customers.
• Customer Value
• Loyal customers are key
• Customer
– They buy more products
Satisfaction
– They are less price sensitive
• Customer – Servicing them is cheaper
Retention – They spread positive word
of mouth

Slide 13 of 26
Consumer Decision Making

Slide 14 of 26