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Definition of Consumer Behavior. Individuals or groups acquiring, using and disposing of products, services, ideas, or experiences Includes search for information and actual purchase Includes an understanding of consumer thoughts, feelings, and actions. Acquisition Receiving Finding

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definition of consumer behavior
Definition of Consumer Behavior
  • Individuals or groups acquiring, using and disposing of products, services, ideas, or experiences
  • Includes search for information and actual purchase
  • Includes an understanding of consumer thoughts, feelings, and actions
acquisition consumption and disposal
Acquisition

Receiving

Finding

Inheriting

Producing

purchasing

Consumption

Collecting

Nurturing

Cleaning

Preparing

Displaying

Storing

Wearing

Sharing

Acquisition, Consumption and Disposal
acquisition consumption disposal
Disposal

Giving

Throwing away

Recycling

depleting

Acquisition, Consumption, Disposal
contributing disciplines
Contributing Disciplines
  • Anthropology
  • Sociology
  • Psychology
  • Economics
  • History
  • Political Science
reasons for studying consumer behavior
Reasons for Studying Consumer Behavior
  • To stay in business by attracting and retaining customers
  • To benefit from understanding consumer problems
  • To establish competitive advantage
  • …because it is interesting!
the circle of consumption
The Circle of Consumption
  • Production
  • Acquisition
  • Consumption
  • Disposal
the circle of consumption continued
The Circle of Consumption, continued
  • Typically, attention of marketers has focused on acquisition as the critical phase
  • Only recently has more attention been given to include the full circle and the links between its elements
    • Disposal to acquisition
    • Disposal to production
    • Disposal to consumption
    • Production to consumption
    • Acquisition to consumption
    • Acquisition to disposal
consumer research
Consumer Research

The systematic and objective process of gathering, recording, and analyzing data for aid in understanding and predicting consumer thoughts, feelings, and behaviors.

In a global environment, research has become truly international.

important factors in consumer research
Important Factors in Consumer Research
  • Speed
  • The Internet
  • Globalization
  • Data Overload
types of consumer research
Types of Consumer Research
  • Basic Research
    • To expand knowledge about consumers in general
  • Applied Research
    • When a decision must be made about a real-life problem
the consumer research process
The Consumer Research Process
  • Defining the Problem and Project Scope
  • The Research Approach
  • The Research Design
  • Data Collection
  • Data Analysis and Interpretation
  • Report
marketing management philosophies
Marketing Management Philosophies
  • Production Concept
  • Product Concept
  • Selling Concept
  • Marketing Concept
  • Societal Marketing Concept
    • Green Marketing
    • Cause-Related Marketing
    • De-Marketing
production concept
Production Concept
  • Focus on Production
  • View of consumers:
    • They will buy as long as the product is available and affordable.
    • Model T: You can have any color as long as it’s black.
  • Focus on production justified:
    • Demand higher than supply
    • Non-competitive product cost
product concept
Product Concept
  • Focus on the product
  • View of consumers:
    • We have to have the best quality and the most features and they will buy.
  • Consumers might not care about quality
  • Consumers might not be willing to pay for the best quality
  • Consumers might not be able to discern quality difference
  • Consumers might prefer simplicity
selling concept
Selling Concept
  • Focus on selling
  • View of consumers:
    • We have to sell to them or else they won’t buy.
  • Focus on selling justified:
    • Introductory stages of product life cycle
    • Unsought goods
marketing concept
Marketing Concept
  • Focus on marketing
    • Creating mutually rewarding exchange relationships
    • Consumer needs and wants have priority
  • View of consumers:
    • They will buy if you fulfill their needs better than the competition.
societal marketing concept
Societal Marketing Concept
  • Same as Marketing Concept plus an added concern for the well-being of society
market research research designs
Market Research:Research Designs
  • Exploratory Research
  • Descriptive Research
  • Causal Research
exploratory research
Exploratory Research
  • Literature Research
  • Experience Survey
    • Focus Groups
    • In-Depth Interviews
exploratory research20
Exploratory Research
  • Insights and Ideas
  • Precision: Specific Hypotheses
  • Establishment of Priorities
  • Increase of Familiarity with Problem
  • Clarification of Concepts
descriptive research
Descriptive Research
  • Description of Characteristics of a Certain Group
  • Estimation of the Proportion of People in a Specified Population who Behave in a Certain Way
  • Specific Predictions
descriptive research22
Descriptive Research
  • Longitudinal Studies
    • True Panel
    • Omnibus Panel
  • Cross-Sectional Analysis
    • Field Study
    • Sample Survey
true panel advantages
True Panel: Advantages
  • Brand Switching Analysis
  • Collecting Classification Information
  • Compensation for Participation/Time
  • Accuracy
  • Reduced Interaction Bias
true panel disadvantages
True Panel: Disadvantages
  • Non-Representativity
  • Drop-out Rate
  • Payment
causal research
Causal Research
  • Laboratory Experiments
  • Field Experiments
  • Internal and External Validity
market segmentation bases
Market Segmentation Bases
  • Demographic
  • Geographic
  • Geo-Demographic
  • Benefit
  • Usage
  • Lifestyle
market segmentation advantages
Market Segmentation:Advantages
  • Specific Definition of the Market
  • Satisfaction of Consumer Needs
  • Meeting Changing Market Demands
  • Assessment of Competitive Strengths and Weaknesses
  • Efficient Allocation of Marketing Resources
  • Precise Setting of Marketing Objectives
haley 1968 toothpaste market
Haley, 1968Toothpaste Market
  • Sensory Segment
  • Worrier Segment
  • Sociable Segment
  • Independent Segment
applications of benefit segmentation
Applications of Benefit Segmentation
  • Positioning
  • Repositioning
  • Competitive positioning
  • New market opportunities/niches
  • Positioning of multiple brands
usage segmentation
Usage Segmentation
  • Rate of Usage
  • Brand Loyalty
  • Usage Situation
lifestyle segmentation psychographics
Lifestyle SegmentationPsychographics
  • Activities
  • Interests
  • Opinions
  • Demographics
  • VALS I and II
    • Maslow’s Hierarchy of Needs
consumer decision making types of decisions
Consumer Decision Making:Types of Decisions
  • Extensive Problem Solving
  • Limited Problem Solving
  • Routinized Response Behavior
problem recognition causes in current state
Problem Recognition:Causes in Current State
  • Depletion of Stock
  • Dissatisfaction
  • Decrease in Finances
  • Increase in Finances
problem recognition causes in desired state
Problem Recognition:Causes in Desired State
  • New Need Circumstances
  • New Want Circumstances
  • New Product Opportunities
  • Purchase of Other Products
information search and evaluation
Incidental Learning

Directed Search and Evaluation

Internal only

loyalty

impulse

Internal and External

Information Searchand Evaluation
purchasing process
Purchasing Process
  • When to buy?
  • Where to buy?
  • How to pay?
  • How much to buy?
post purchase behavior
Post-purchase Behavior
  • Cognitive Dissonance
  • Satisfaction/Dissatisfaction
motivation
Motivation
  • Definition
  • Categories of Needs
  • Arousal of Motives
  • Motive Structuring
  • Motive Conflict
  • Motivation Theories
motivation theories
Motivation Theories
  • Freud
  • Lewin
  • Maslow
freudian theory
Freudian Theory
  • Basic Principles
    • Homeostasis
    • Hedonism
  • The Structure of Personality
    • Id
    • Ego
    • Super-ego
projective techniques
Projective Techniques
  • Word Association
  • Sentence Completion
  • Cartoon Test
  • Thematic Apperception Test (TAT)
  • Rorschach Test (inkblots)
lewin s field theory
Lewin’s Field Theory
  • Life Space
  • Person
  • Environment
  • Formula
  • Conflict
    • Approach-Approach
    • Avoidance-Avoidance
    • Approach-Avoidance
perception
Perception
  • Definition
  • Threshold Levels
  • The Perceptual Process
    • Selection
    • Organization
    • Interpretation
selection
Internal Factor

Attitudes

Expectations

Motives

Attention Span

Perceptual Defense

Perceptual Vigilance

Adaptation

Perceptual Blocking

External Factors

Color

Contrast

Size

Position

Intensity/Magnitude

Movement

Humor

Fear

Selection
organization
Organization
  • Closure
  • Figure and Ground
interpretation
Interpretation
  • Physical Appearance
  • Stereotypes
  • Irrelevant Cues
  • First Impressions
  • Jumping to Conclusions
  • Halo Effect
learning
Learning
  • Definition
  • Learning Theories
  • Marketing Applications
learning theories
Learning Theories
  • Behavioral Learning Theories
    • Classical Conditioning
    • Instrumental Conditioning
  • Cognitive Learning Theories
    • Consumer Information Processing
      • The Structure of the Memory
      • Memory Processes
marketing applications
Marketing Applications
  • Classical Conditioning
    • Creating Associations
    • Stimulus Generalization
      • Family Branding
      • Product Line Extensions
      • Licensing
      • Look Alike Packaging
marketing applications50
Marketing Applications
  • Instrumental Conditioning
    • Rewards
    • Reinforcement Schedules/Advertising
      • Intermittent
      • Continuous
involvement
High Involvement Hierarchy of Effects

Cognition

Attitude

Behavior

Low Involvement Hierarchy of Effects

Cognition

Behavior

Attitude

Involvement
communication
Communication
  • The Nature of Communication
  • Communication Model
    • Sender
    • Message
    • Receiver
    • Psychological Noise
sender
Sender
  • Source Credibility
    • Trustworthiness
    • Expertise
    • Status
    • Other Dimensions
  • The Sleeper Effect
the sleeper effect
The Sleeper Effect
  • Consumer forget the source of the message faster than the message itself.
  • Over time, high-credibility sources lose power to change attitudes.
  • Over time, low-credibility sources gain power to change attitudes.
  • High-credibility sources need to reinstate message.
  • Low-credibility sources should not reinstate message.
message
Message
  • Size, Color, Position
  • Order of Presentation
  • Humor
  • Agony Advertising
  • Content
  • Fear Appeals (moderate!)
  • Audience Participation
order of presentation
Order of Presentation
  • Climax order
  • Anticlimax order
  • Pyramidal order
  • What works best, depends on consumer involvement.
receiver
Receiver
  • Selective Attention
  • Selective Perception
  • Selective Appeal
cultural dynamics
Cultural Dynamics
  • Definition of Culture
  • Cultural Sensitivity
  • Culture and its Elements
    • Material Culture
    • Social Institutions
    • Humans and the Universe
    • Aesthetics
    • Language
culture defined
Culture Defined
  • The sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits required by humans as members of society.
  • The distinctive way of life of a group of people, their complete design for living, a mosaic of human life.
subculture
Subculture
  • Definition
  • Types of Subcultures
  • Selected Subcultures
  • Acculturation
    • the Learning of another Culture/Subculture
types of subcultures
Types of Subcultures
  • Nationality
  • Religion
  • Region
  • Ethnicity
  • Age
  • Gender
  • …and many more.
stages of acculturation
Stages of Acculturation
  • Honeymoon
  • Rejection
  • Tolerance
  • Integration
social groups
Social Groups
  • Definition
  • Types of Groups
  • Group Properties
types of groups
Types of Groups
  • Primary and secondary
  • Formal and informal
  • Membership and symbolic
  • In and out
group properties
Group Properties
  • Status
  • Roles
  • Norms (Sanctions)
  • Power
  • Socialization
power
Power
  • Reward
  • Coercive
  • Legitimate
  • Referent
  • Expert
reference groups
Reference Groups
  • Influence on product category choice
  • Influence on brand choice
  • Factors:
    • Luxuries vs. necessities
    • Publicly vs. privately consumed
    • Visibility