Consumer

Behavior
“Understanding Consumer Behavior”

Presented by: Aliemar Villasin

 Learning Outcomes
At the end of the lesson, students be able to...

1. describe the focus and nature of consumer behavior;

2. illustrate the different roles and areas of consumer behavior; and

3. discuss the link between consumer behavior and marketing mix.

 Pre-Assessment

Qustion # Qustion #
1 2
What is Consumer Behavior? What is the difference betwen consumer
and customer?

Qustion #
3
What are the factors that affects
consumer behavior?
 Introduction
Every day we buy things. We exchange our money for goods and
services, for our own use and for the use of our families: occasionally we
make impulse purchases (Fenton-O’Creevy et al., 2018), mostly we
choose things we think will meet our needs on a day-to-day basis, and
we intermittently make buying decisions that will affect our lives for
years to come.
 The key concept of marketing is customer centrality: we cannot ignore
customer decision making, understanding the processes involved in making
those decisions is central to establishing policy.
 Defining Consumer Behavior

Consumer behavior is the activities people undertake when obtaining, consuming and
disposing of products and services. (Blackwell et al., 2001)

Obtaining - presumably includes all the activities that lead up to making a purchase.
Disposal - divestment of a product when it is worn out or used up.
 The Nature of
Consumer Behavior
Consumer behaviors dynamic as it involves the
human process of thinking, feeling and actions. The
dynamic nature of consumer behavior makes the
development of marketing strategy an exciting yet
difficult task.
Consumer Behavior and Marketing Mix

Marketing management has previously been

considered to consist of controlling elements of the
marketing mix.

Marketing Mix - The combination of activities

which creates an overall approach to the market
 Marketing Mix 7Ps
Product
The bundle of benefits consumers acquire is the basis of their decision-making.
Deciding which benefit are essential, which are desirable, which do not matter and
which are actually not benefits at all but drawbacks is the starting point for all
rational decisions.

Price
The cost of a product goes beyond the price tag in most cases. In some cases, extra
costs may exceed the price tag – consumers will take account of them, and will
weigh them in the decision, but producers will only be able to obtain the price on the
tag.
 Place
Convenient locations for making purchases are essential; in fact, it would
not be too much to say that the easier marketers make it for consumers to
find the product, the more product will be sold – this is partly why some
brands pay a lot of money for their products to be displayed prominently
in numerous retail outlets.

Promotion
Promotion is not something that is done to consumers, it is something they
consume and people often use media such as classified advertisements and
directories (offline and online) in an active search for information about
goods they might like to buy.
 People
Business is not about money, it is about people. The people who run
businesses and deal with the public need to understand how other people
react in purchasing situations.

Proccess
The way in which services are delivered affects the context within which
people buy as well as their propensity to buy.

Physical Evidence
Physical aspects of the service encounter often relate to the pleasure one
feels from receiving the service rather than the practical aspects.
 Antecedents of Consumer Behavior
 It is really important to
understand that the study of
consumer behaviour is, like
marketing itself, a
combination of other
disciplines.
• sociology
• psychology
• anthropology
• economics
• neuroscience
People

PSYCHOLO
GY
Psychology is the study of mental processes.
Psychologists study the ways people think which is of
course basic to understanding how people think
about the products they buy.
Drive and Motivation
Drives are the basic forces that make us want to do things
Motivation is a drive that has a definite target

Goals and Incentives

Goals is the rational element of motivation, goals are the rationalization of a
motivation.
Incentive is the satisfaction of the need after achieving various goals.
Personality and Self-
Concept
Personality is a combination of the various traits that determine who we are.
Self-concept is about how we see ourselves – this includes how we see
ourselves in terms of consumption patterns, branding and other
consumption-based aspects.
Perception
Perception is about the way we make sense of the world and people sometimes
filter out unnecessary information, or conversely group information together

Learning
Learning is the behavioral changes that result from experience and you won’t be
surprised to learn that this is not a new concept.
experiential learning’ defined as ‘learning through reflection on doing’
Attitudes formation &
Change
Attitudes consist of knowledge, feelings and proposed behaviour. An attitude is a
tendency to behave in a consistent manner towards a given stimulus
Change can trigger a positive change in sales, considerations, image and above all
attitude.
People

SOCIOLOG
Y
Group behaviour is crucial to human beings, and
therefore is crucial to understanding what motivates
people to buy specific brands
Reference Group
People identify groups they would like to join, and also groups they would prefer not to be
associated with and whether it’s our work group, group of friends, our family group, our
religious group, or our group hobbies
• Family
The family is probably the most important reference group because it exerts the most
influence on us.
• Class &
Culture
Culture is the set of beliefs and behaviours that distinguishes one large group of people
from another, and it includes such issues as religious beliefs, language, customs, class
distinctions and accepted norms of behaviour.
• Self-image and Role

The images we form of ourselves are almost entirely derived from

feedback from other people. This feedback is derived in turn from the
images we project as part of our role in life, both offline and online.
 People

ANTROPOLOGY
Anthropology is a wide-ranging academic discipline, covering
everything that makes us human. It study people (human
beings) as a whole, from the past and present; and from small,
isolated homogenous cultures to large social networks.
 People

ECONOMICS
Economics is the study of demand. Economists study
demand in the individual transaction, at the level of the
firm and its customers (micro-economics), and also the
overall level of demand in the economy (macroeconomics).
The Economic Choice
This simply means that someone cannot spend money on something if he or
she has already spent the money somewhere else. So, consumers have a
choice; a choice of what to spend their money on.

Elasticity of Demand
inelastic demand
a rise in price appears to make very little difference to demand
elastic demand
the price directly affects demands
income elasticity of demand tells us that some products are affected by
increases in the individuals’ spending money
 NEUROSCIENC
E
Neuroscience is the study of the ways in which the human
brain works. A sub-branch of the discipline, neuro-
economics, is the fusion of neuroscience and economics.
Thank You for
Listening!
 Practical exercise

Mars Venus
Mars is actually a Venus has a beautiful
very cold place name

Neptune Saturn
Neptune is far away It’s a gas giant and
from us has several rings
 Brainstorming and idea generation (ABC)

A I Ion exchange Q

B Bandolier J R Regency period

S
C K Kinetoscope
T Time
D Datascreen L
U
E M Minor house
F First heir N V/W Vapor

G O Ocular X/Y
H Hermetic P Z Zone
 Main topic and details

Venus
It’s the second planet from the Sun

Mars Neptune
Mars is actually a very cold place Neptune is far away from us

Saturn
Saturn has several rings
 Birth of the steampunk trend

Mainly ladies US-based Past time

Mars is actually a very cold Venus has a very beautiful Neptune is very far away
place name from us

Neo-victorians Sewing pins

Mercury is the closest Jupiter is the biggest planet
planet to the Sun of them all
 Sequence

First Second
Mercury is a small planet Venus has a beautiful name

Fourth Third
Mars is actually a very cold place Jupiter is a big planet

Fifth Last
Saturn is a gas giant and has rings Neptune is far away from us
Awesome words
Thank You for
Litening!
150,000
Big numbers catch your audience’s attention
 Data

25% 50% 75%

Mercury is the closest Venus is the second planet Jupiter is the biggest planet
planet to the Sun from the Sun of them all
 Steampunk movement

Mars
Mars is actually a
very cold place

Neptune
Neptune is very far
away from us
 Tablet app

You can replace the image on the screen

with your own work. Just right-click on
it and select “Replace image”
 Classifying

Mars Venus Mercury Jupiter

⃗ Small ⃗ Small ⃗ Small ⃗ Large

⃗ Red ⃗ Hot ⃗ Hot ⃗ Cold
⃗ Cold ⃗ Dry ⃗ Rocky ⃗ Gassy
⃗ Rocky ⃗ Volcanic ⃗ Cratered ⃗ Stripped

Mars is actually a Venus has a beautiful Mercury is a very Jupiter is a very big
very cold place name small planet planet
 Cause and effect

Problems or goals
Mars is actually a very cold place

Environment Materials People

Mercury is very small Pluto is a dwarf planet We all live on Earth

Measurement Methods Machines

Mars is a cold planet Jupiter is a gas giant Saturn has rings
 Question and answer
Question
Is Mercury the closest planet to
the Sun and the smallest one in
the Solar System?

Answer
Venus has a beautiful name and is
the second planet from the Sun
 Timeline

1971 1999 2009

Mars is actually a Mercury is a very Venus has a beautiful
very cold place small planet name

1987 2004 2012

Earth is the planet Jupiter is the biggest Saturn was named
with life planet after a Roman god
 Some extra data

Venus 5% 35% Mars

Venus has a Mars is a cold
pretty name planet

Jupiter 50% 100% Neptune

It's a gas giant Follow the link in the graph to It's far away
modify its data and then paste
and big the new one here. from us
For more info, click here
 Parts and the whole

The whole Parts of the

object object What would happen if
the parts were missing
Mercury

Saturn is a gas giant Venus has a beautiful name

Mars
and has several rings.
It's composed mostly
Saturn
of hydrogen and
helium. It was named What’s the function of
Venus
after the Roman god the part?
Jupiter Mercury is a small planet
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