CONSUMER BEHAVIOR INTRODUCTION Outline # 02

DEFINITION
The term Consumer Behavior (CB) refers to the behavior that individuals display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.

DEFINITION
The term Consumer Behavior (CB) refers to the behavior that individuals display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.

What is consumer behavior?

Activities people undertake when obtaining, consuming, and disposing of products and services A field of study that focuses on consumer activities Scope goes beyond just why and how people buy to include consumption analysis

Cont
The study of CB is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related items.

Cont
It includes the study of What they buy it Why they buy it When they buy it Where they buy it How often they buy it How often they use it

Toothpaste

What they buy it

What type: Gel, regular, striped, in the tube or with pump What Brand: Local, national, international, generic

Why they buy it

Prevent cavities Remove stains Brighten or whiten teeth As a mouthwash To attract romance

Where they buy it

Supermarket Drugstore Convinces store

How often they buy it

Weekly, biweekly monthly

How often they use it

When they wake up After each meal When they go to bed

Our Concern
Our focus will be mostly why and how consumer make decisions to buy goods and services and

After purchase
CB study goes far beyond these facets of CB and considers the uses consumers make of the goods they buy (i.e. Consumption Analysis) and their subsequent evaluations Toyota at Pakistan (Post purchase behavior) Satisfaction not, but yes, dissatisfaction is forwarded Role of marketer is formulate strategies in their promotion

Studies going on.

Consumer Researchers also interested how individual dispose of their products Do they store it Throw it Give it away Sell it Rent it Lend it out

Cont
Answers to these questions are very important for marketers to match their production and packaging accordingly

Why the Field of CB Developed

While studying buying behavior they realized all customers can not be treated as same Mass marketing shifted to Segmentation (STP)

Why the Field of CB Developed

After world war II rapid production new products but 80% failed this led to the study of CB Factors like promotional appeals, package, labels and warranties

Why the Field of CB Developed

Government agencies in US like Federal trade commission and Food and Drug Administration began sponsoring consumer research to discover the impact of products and advertisement on consumer

Why the Field of CB Developed

Green marketing Global marketer started cross cultural consumer research studies to develop their products and their strategies.

Personal Consumer
The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.

Organizational Consumer
A business, government agency, or other institution (profit or nonprofit) that buys the goods, services, and/or equipment necessary for the organization to function.

The Marketing Concept

Assumes that to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition Marketing objectives:
Make what you can sell Focus on buyers needs

The Marketing Concept

Implementing the Marketing Concept
Consumer Research Segmentation Targeting Positioning The process and tools used to study consumer behavior Two perspectives:
Positivist approach Interpretivist approach

The Marketing Concept

Implementing the Marketing Concept
Consumer Research Segmentation Targeting Positioning Process of dividing the market into subsets of consumers with common needs or characteristics

The Marketing Concept

Implementing the Marketing Concept
Consumer Research Segmentation Targeting Positioning The selection of one or more of the segments to pursue

The Marketing Concept

Implementing the Marketing Concept
Consumer Research Segmentation Targeting Positioning
Developing a distinct image for the product in the mind of the consumer Successful positioning includes: Communicating the benefits of the product Communicating a unique selling proposition

Consumer Behavior Is Interdisciplinary

Psychology Sociology Social psychology Anthropology Economics

Why study consumer behaviour?

Understanding consumer behaviour will help you become better marketers as it is the foundation for Segmenting markets Positioning products Developing an appropriate marketing

Why study consumer behaviour?

Knowledge of consumer behaviour is essential for non-profit organizations Non profits have different customers to please Donors, users, volunteers, general public, government

Why study consumer behaviour?

Public service initiatives have to be based on an understanding of consumer behaviour Canadas largest advertiser is the federal government Most government initiatives (e.g., antismoking campaigns) need a knowledge of consumer behaviour to succeed

Consumer behaviour helps to formulate public policy

Why study consumer behaviour?

Better understanding of our own consumption behaviour

Studying consumer behaviors: Consumer research methods

Positivists Research (Quantitative)
Observation
Interviews and Surveys

Experimentation

Interpretivists Research (Qualitative)

Ethnography
Semiotics Depth Interviews

Positivists Research Methods

Observation
Observing consumer behaviors in different situations such as natural or artificial settings
In-home observation: examining how and when consumers use and consume products in their households Shadowing: following and observing consumers in the shopping and consumption processes. Researchers may ask questions about reasons for behaviors Physiological methods: techniques borrowed from medicine, psychology and other sciences including cameras to measure eye movement, galvanic skin response, and MRI

 Interviews and surveys

Positivists Research Methods

Surveys: efficient method for gathering

information from a large sample of consumers by asking questions and recording responses (telephone and Internet surveys, mall intercepts, and mail questionnaires)

Focus groups: a group discussion led by a

moderator skilled in persuading consumers to thoroughly discuss a topic of interest

Longitudinal studies: repeated measures of

activities over time to determine changes in opinions, buying, and consumption behaviors

Positivists Research Methods

Experimentation
Measuring cause-and-effect relationships by manipulating independent variables to determine the effects of changes on dependent variables Laboratory experiment Field experiment Independent variables might include number of
advertisements and package design

Dependent variables might include purchase intent

or behavior

Interpretivists Research Methods

Ethnography: how values and culture
influence usage of products and other behaviors. Researchers place themselves in the society under study.

Semiotics : The study of symbols and the

meanings they convey. Researchers use semiotics to discover the meanings of various consumption behaviors and rituals.

Depth Interviews: Researchers also go for

Depth Interviews using interpretivists research method