Fall -2010

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CB Course Outline @ a glance Course methodology

Chapter slides supplemented by Current articles Ad show reels Class exercises

Prescribed textbook Consumer Behavior, by Schiffman and

Kanuck 10th edition

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CB – Class rules

No texting / talking in class Please come prepared in advance Active participation Be open to new ideas

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CB – Mark Allocation

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CB- Exam structure

Mix of the following Cases (Indian – HBR) Conceptual questions Objective questions

One group project (CB Audit) Quizzes are n-1 (4); will be

announced

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CB-What you will study?

1. Introduction – the impact of the digital revolution on consumer behavior

2. Consumer Research3. Consumer Motivation4. Personality and Consumer Behavior5. Consumer Perception6. Consumer Learning7. Consumer Attitude Formation and Change8. Communication and CB9. Social Class and CB10.Influence of Culture on CB

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CB – Contact info.

My office no.: 99033-2408 My cell no. 0322-265-4545 (call 9-

8pm only) My email: jc-ubl@hotmail.com CB Website:

http://groups.yahoo.com/groups/cbiba

CR nomination: ?

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Chapter 1

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The Digital Revolution Digital revolution has introduced drastic changes in

the business environment: Consumers have more power than ever before

They can use the Internet to locate best prices, bid on offerings, bypass distribution outlets, and shop for goods around the globe from their homes.

Consumers have access to more information than ever before They can easily find reviews on products; compare

products at the click of a button. Marketers can offer more services and products

than ever before The digitization of information enables sellers to customize

the products and services and their messages to customers.

The exchange between and customers is increasingly interactive and instantaneous.

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The Digital Revolution

Marketers can gather more information about consumers more quickly and easily (cookies?)

Impact reaches beyond the PC based connection to the web (mobile phones-kiosks-TVs-Airplanes; even refrigerators!)

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Consumer Behavior Defined as the behavior

that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.

Simply, why consumers buy what they buy…

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CB is multi dimensional

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You are what you buy…

Sony Cybershot ad.

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Types of Consumers

Personal consumer: buys goods and services for his or her own use, for the use of the household, or as gift for a friend.

Organizational consumer: includes profit and not for profit businesses, government agencies, and institutions, all of which must buy products, equipment and services in order to run their organizations.

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Model of Consumer Decision Making

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Development of the Marketing Concept Production concept: assumes that consumers are

mostly interested in product availability at low prices.

Product concept: assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features.

Selling concept: marketer’s primary focus is selling the product that is has unilaterally decided to produce

Marketing concept?

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Role of Consumer Research Describes the process and tools used

to study consumer behavior Positivist approach: objective and

empirical, to seek causes for behavior, and to conduct research studies that can be generalized to larger populations.

Interpretivist approach: qualitative and based on small samples

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Market segmentation

Is the process of dividing a market into subsets of consumers with common needs or characteristics.

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Targeting Is selecting one or more of the

segments identified for the company to pursue.

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Positioning Is developing a distinct

image for the product or service in the mind of the consumer,

An image that will differentiate the offering from competing ones and communicate to consumers that the particular product or service will fulfill their needs better than competing brands.

Ad show reel: Nike Evian Vanilla Coke Cadbury

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4 P’sMarketing mix

Consists of a company’s service and /or product offerings to consumers and the methods or tools it selects to accomplish the exchange. Product or service (features, designs, brands and

packaging offered, along with post purchase benefits such as warranties etc)

Price (list price, including discounts, allowances, and payment methods)

Place Promotion (advertising, sales promotion, public

relations, and sales efforts designed to build awareness of and demand for the product or service)

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Societal marketing concept

Requires that all marketers adhere to principles of social responsibility in the marketing of their goods and services. That is, they should endeavor to satisfy the needs and

wants of their target markets in ways that preserve and enhance the well being of consumers and society as a whole.

Ads: UBL Water Purifier / IDP

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Customer value

Defined as the ratio between the customer’s perceived benefits (economic, functional, and psychological) and the resources (monetary, time, effort, psychological) used to obtain those benefits.

Discussion question: Which brands score highest on value?

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‘Value’ = ‘Benefit’ – ‘Costs’

Customer Satisfaction

Is the individual’s perception of the performance of the product or service in relation to his or her expectations.

Ad show reel AMEX

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Customer retention The overall objective of providing value

to customers continuously and more effectively than the competition so that they don’t stop being your customers.

Benefits of loyal customers: They buy more products. They are less price sensitive and pay less

attention to competitor’s advertising. Servicing existing customers who are

familiar with the firm’s offerings and processes, is cheaper

Loyal customers spread positive word of mouth and refer other customers.

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