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Insights into Consumer Behavior for Marketers

Explore the key elements and domains of consumer behavior, benefits for organizations, and practical applications in marketing decisions. Understand the psychological core, decision-making process, cultural influences, outcomes, and implications for market segmentation and product positioning.

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Insights into Consumer Behavior for Marketers

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  1. Chapter One Understanding Consumer Behavior

  2. Learning Objectives • Define consumer behavior and explain its elements • Identify the four domains of consumer behavior • Discuss the benefits of studying consumer behavior • Learn how consumer behavior is used in organizations to make marketing decisions

  3. Marketing “…an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” Source: American Marketing Association, http://www.marketingpower.com/content4620.php

  4. Consumer Behavior Reflects totality of consumer’s decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas by (human) decision making units (over time).

  5. Consumer Behavior Involves Attitude Towards • Products • Services • Activities • People • Ideas

  6. What Is Consumer Behavior? (Exhibit 1.1)

  7. Consumer Behavior & Consumption • Acquisition • Usage • Disposition

  8. Consumer Behavior • Dynamic process • Can involve many people • Involves many decisions • Involves consumers’ feeling and coping

  9. Whether? What? Why? Why Not? How? Ways? When? Where? How much? How often? How long? Consumer Decisions

  10. Model of Consumer Behavior

  11. What Affects Consumer Behavior? • Psychological Core • Process of Making Decisions • Consumer’s Culture • Consumer Behavior Outcomes

  12. Psychological Core • Motivation, Ability, and Opportunity • Exposure, Attention, and Perception • Categorizing and Comprehending Information • Forming and Changing Attitudes • Forming and Retrieving Memories

  13. Decision Making Process • Problem Recognition & Search for Information • Judgments & Decisions • Post-Decision Evaluations

  14. Consumer’s Culture:External Processes/Influences • Consumer Diversity • Social Class & Household • Values, Personality, & Lifestyles • Reference Groups and other social influences

  15. Hispanics Are X% More Likely Than General Consumers to: Source: http://www.HispanicBusiness.com

  16. Consumer Behavior Outcomes • Symbolize who we are- external signs used to express our identity • Diffuse through a market- influence others’ decision making • Ethics and social responsibility

  17. Who Benefits from Study of Consumer Behavior? • Marketing Managers • Ethicists/Advocacy Groups • Public Policy Makers/Regulators • Academics • Consumers

  18. Subfields of Consumer Psychology/Behavior • Advertising- Radio/TV, magazines, etc. • Consumer perception- Consumers “taste” with their eyes and ears • Life stages- Consumers view product/service from level of maturity • Motivation- Why do consumers purchase? • Psychology of price- What is something really worth? Source: http://www.wcupa.edu/_ACADEMICS/sch_cas.psy/Career_Paths/Consumer/Career05.htm

  19. Consumer Behavior Career Attractions • Challenge of working with others • Human behavior- Gain knowledge through analysis of human choice patterns • Creativity- How different studies are done • Satisfaction- See hard work pay-off Source: http://www.wcupa.edu/_ACADEMICS/sch_cas.psy/Career_Paths/Consumer/Career05.htm

  20. Consumer Behavior Career Drawbacks • High burnout risk- 6 day weeks and/or 50 hour week • Slow start- Early efforts spent gathering data • Lack of cooperation from research candidates • Discouragement- Plan doesn’t work properly • Decision overload- Too much data Source: http://www.wcupa.edu/_ACADEMICS/sch_cas.psy/Career_Paths/Consumer/Career05.htm

  21. Implications of Consumer Behavior • Developing/implementing customer-orientation • Segmenting the market? • Profitability of each segment? • Characteristics of each segment? • Customer satisfaction of each segment? • Selecting the target market

  22. Implications of Consumer Behavior • Product positioning decisions • Positioning of competition? • How should our offerings be positioned? • Should we reposition offerings?

  23. Implications of Consumer Behavior • Products/services development decisions • Consumers’ ideas for new products? • Additional or different attributes? • Brand naming? • Packaging and logo design?

  24. Implications of Consumer Behavior • IMC decisions • Advertising objectives? • Words and visuals of ads? • Where should ads be placed? • When should ads be placed? • Have ads been effective?

  25. Implications of Consumer Behavior • IMC decisions (cont) • Sales promotion objectives? • When should sales promotions occur? • Have sales promotions been effective? • How large a sales force? • How can salespeople best serve customers?

  26. Implications of Consumer Behavior • Pricing decisions • What should the price be? • How sensitive are consumers to price and price changes? • When should pricing tactics be used? • Distribution decisions • Where does target market shop? • How should stores be designed?

  27. Additional Resources in Consumer Psychology/Behavior • APA Monitor- http://www.apa.org • Direct Market News- http://www.dmnews.com • Advertising Age- http://www.adage.com • PsychNet- http://www.psychnet-uk.com • Society For Consumer Psychology- http://fisher.osu.edu/marketing/scp • Encyclopedia of Psychology- http://www.psychology.org/links/Environment_Behavior_Relationships/Consumer/ • Media Post - http://www.mediapost.com

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