Consumer Behavior Doss.K doss @ xime.org Week 1- lecture 1 & 2.
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Transcript of Consumer Behavior Doss.K doss @ xime.org Week 1- lecture 1 & 2.
Consumer Behavior
[email protected] 1- lecture 1 & 2
In the next 32 sessions….
• W’s of Consumer Behavior (1 session)
• Factors that influence the behavior (19
sessions)
• Decision making process (4 sessions)
Consumer behavior defined….
A study of how people/org select, buy, use
and dispose goods/services to satisfy their
needs and wants
Why study consumer behavior
Lack of knowledge of CB = big mistakes!
dictate
s Mark
eting Tacti
cs
Why Study CB
Helps firms to understand
• The psychology of how consumers think, feel, reason
• The psychology of how the consumer is influenced by
environment
• The behavior of consumers while shopping
• Limitations in consumer knowledge and its influence
• The motivation levels and the ways it varies between
products
• How marketers can adapt and improve their campaigns
Cultural influenceSocial ClassSocial Group
InfluenceFamily InfluenceOther Influences
Learning & Memory
Personality & Self-
concept
Attitudes
Motivation &
Involvement
Information Processing
Problem Recognition
Information Search
Evaluation
Purchasing Process
Post Purchase Behavior
Consumer Research
• The process and tools used to study consumer behavior.
• Two perspectives:
– Positivist approach/Modernism (approach that regards the CB
discipline as an applied marketing science, focus is on
consumer decision making)
– Interpretivist approach/Post modernism (approach that focuses
on the act of consuming rather that on act of buying)
Segmentation Variables
Geographic
Demographic
Psychographic
Behavioral
Market segmentation
Finely-tuned marketing segmentation
strategies allow marketers to
reach only those consumers likely to
be
interested in buying their products.
Firms need to be cautious when they reach out to newer
segments
• 750 million people in the world
are disabled, according to the
World Health Organization (WHO)
• 80% of disabled people live in
developing countries
• $800 billion in spending power in
US alone
Consumers’ Impact onMarketing Strategy
• Relationship Marketing: Building Bonds
with Consumers
– Relationship marketing:
• The strategic perspective that stresses the long-
term, human side of buyer-seller interactions
– Database marketing:
• Tracking consumers’ buying habits very closely,
and then crafting products and messages tailored
precisely to people’s wants and needs based on
this information
Marketing’s Impact on Consumers
• Marketing and Culture:
– Popular Culture:
• Music, movies, sports, books, celebrities, and other forms of
entertainment consumed by the mass market.
– Marketers play a significant role in our view of the world
and how we live in it.
Marketing’s Impact on Consumers: The Meaning of
Consumption• The Meaning of Consumption:
– People often buy products not for what they do, but for
what they mean.
– Types of relationships a person may have with a product:
• Self-concept attachment
• Nostalgic attachment
• Interdependence
• Love
Marketing’s Impact on Consumers: The Global
Consumer• Majority of people on earth live in urban centers.
• Sophisticated marketing strategies contribute to a global consumer
culture.
• Even smaller companies look to expand overseas.
• Globalization has resulted in varied perceptions of countries(both positive
and negative).
Marketing’s Impact on Consumers: Virtual
Consumption• The Digital Revolution is one of the most significant
influences on consumer behavior.
• Electronic marketing increases convenience by breaking
down the barriers of time and location.
• Cyberspace has created a revolution in C2C (consumer-to-
consumer) activity.
‘Recently, I had a terrible experience with Apple MacBook and Apple India. I posted a
review at your community and only then Apple listened and actually gave me a new
laptop. Thanks to your community and its power...Fortunately, the review is being
read by around 6000 people and people have been writing to me whether they
should be Apple MacBook.’ Pradeep Chopra co-founder OmLogic
( mouthshut.com)
Needs and Wants:Do Marketers Manipulate
Consumers?• Consumerspace
• Do marketers create artificial needs?
– Need: A basic biological motive
– Want: One way that society has taught us that need can be
satisfied
• Are advertising and marketing necessary?
– Economics of information perspective: Advertising is an
important source of consumer information.
• Do marketers promise miracles?
– Advertisers simply don’t know enough to manipulate people.
Consumerism
• Culture Jamming:
– A strategy to disrupt efforts by the corporate world to
dominate our cultural landscape
The Dark Side of Consumer Behavior
• Addictive Consumption:
– Consumer addiction:
• A physiological and/or psychological dependency on products
or services
• Compulsive Consumption:
– Repetitive shopping as an antidote to tension, anxiety,
depression, or boredom
• Consumed Consumers:
– People who are used or exploited, willingly or not, for commercial
gain in the marketplace
Next session
Perception