Consumer Behavior MKT 750

Professor Pat West

Agenda

• Introductions• Class website:

http://fisher.osu.edu/~west_284/mkt750s05 or

class.osu.edu

• Syllabus highlights

• Course overview

• Assignment

Syllabus Highlights

• Course Objective:– To develop a deeper understanding of and

appreciation for consumers – To learn how to better serve your customers and

develop strong relationships

• Class materials:– Consumer Behavior: Building Marketing Strategy, 9th

edition (Hawkins, Best, and Coney)

Syllabus Highlights

• Requirements:– Individual Components Points

• Participation 100• Two exams @ 100 points each 200

– Team Components• Phase 1: Immersion Research 100• Phase 2: Idea Generation 100• Phase 3: Implementation Report 100

600

Keys to Success

• Come to class prepared – Keep up on readings– Stay on top of deadlines

• Treat others professionally– Show pride in your work– Be respectful

Considered appropriate:

Be considerate of others Get involved and participate Strive to be a good teammate Manage your time wisely

Please refrain from:

1. Coming in late

2. Leaving class early

3. Sidebar conversations

4. Cellular phone interruptions

5. Eating food in the classroom

Honor Code

• What is academic misconduct?– Any activity that compromises the academic

integrity of the institution or subverts the educational process.

• How will it be dealt with?– You will be dismissed from the class. – The University Committee on Academic

Misconduct will be notified.

Course Overview

• What is consumer behavior?

• Why study it?

• How does this relate to marketing?

• Some “essential tools”

What is Consumer Behavior?

“The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impact that these processes have on the consumer and society”

-- Hawkins, Best, and Coney 2004

“The study of the cognitive, emotional, and physical activities associated with the perception, evaluation, choice, acquisition, use, and disposition of goods and services.”

Why Study Consumer Behavior?

• The Marketing Concept:– Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas, goods, and services to create more satisfying exchanges than the competition.

• Corollary:– Success in the marketplace requires: knowing, then

attracting, satisfying, and retaining customers.

Why Study Consumer Behavior?

• No brand/product can appeal to all people.Firms must segment the market into groups with relatively homogeneous preferences and target one or more groups.Firms must position their offerings in the hearts and minds of these individuals in a favorable way.Firms must examine all of the touch points that shape how a consumer will respond to their offering.

Why Study Consumer Behavior?

• Our guesses about people are inaccurate.– This is because human nature leads us to believe

that other people think like us• false consensus

– People tend to perceive differences even when they don’t exist

• stereotyping

Why Study Consumer Behavior?

• Therefore, we must strive to…Identify customer needs and wants

Engage in research

Understand how customers will respond to different messages and environments

Learn about and apply theories

Anticipate where preferences are headed

Staying informed

Essential Tools:

• Consumer Decision Making

• Demographics / Trends

• Information Processing

• Social Influence

• Consumer-side

• Marketer-side

Consumer Decision Making

ChoiceAlternativeEvaluation

SearchNeed

RecognitionPost-Purchase

Evaluation

Action Desire Interest Awareness

Essential Tools:

• Consumer Decision Making

• Demographics / Trends

• Information Processing

• Social Influence

Demographic Trends:

• Aging population

• Cultural Diversity & Globalization

                            

                                      

Lifestyle & Segment Trends:

• Staying connected– Cellular phones– Instant messaging

• Health & Fitness– Atkins– Water

Essential Tools:

• Consumer Decision Making

• Demographics / Trends

• Information Processing

• Social Influence

Consumer Information Processing

Stimuli Exposure

Attention

Comprehension

Acceptance

Retention Purchase

Essential Tools:

• Consumer Decision Making

• Demographics / Trends

• Information Processing

• Social Influence

Social Influence

• Creating “Buzz” through word of mouth

• Cultural and generational influence

• Family & Group Influence

Assignment

• Carefully read the syllabus– There will be a quiz on it next time

• Study Chapter 1 of the textbook– Begin applying the strategic framework

discussed to the team project we will be working on

– What do we know about the 5 Cs, Segmentation, Targeting, and Positioning?