Introduction to Consumer

Behavior
Session 1

1
2
 Recommended Reading(s):

1. Shiffman and Kanuk, Consumer

Behavior, 10th Edition
2. Consumer Behavior by John C. Mowen
and Michael Minor, 5th Edition.
3. Strategic Market Management, David
A. Aaker.

3
4
Consumer behavior is
defined as the study of the
buying units and the
exchange processes
involved in acquiring,
consuming, and disposing
of goods, services,
experiences, and ideas.
5
Marketed?

6
• Most marketers recognize that consumer behavior is
an ongoing process, not merely what happens at the
moment a consumer hands over money or a credit
card and in turn receives some good or service (buyer
behavior).
• The exchange—a transaction where two or more
organizations or people give and receive something of
value.
• The expanded view emphasizes the entire
consumption process.
• This view would include issues that influence the
consumer before, during, and after a purchase

7
• Needs are basic human
requirements.
– Food
• Wants are needs directed to
specific objects/services that
might satisfy the need.
– Chicken, Burger, Steak
etc.

• Demand is a want that is

supported by a decision and
capacity to buy
– Burger is in my range.
8
 A Consumer is generally thought
as a person who identifies a need
or desire, make purchase, and
then dispose of the product
during the three stages in the
Consumption process.
 The purchaser and user might be
different.
 A separate person might be an
Influencer. This person provides
recommendations for or against
certain products without actually
buying or using them.
9
 Marketers attempt to satisfy needs
and wants of their target market
 Marketing involves the study of
exchange process between two
parties
 For marketers to create a successful
exchange they must understand the
factors that influence consumers’
needs and wants
 Consumer primacy (importance)is
the principle on which the entire
field of marketing rest
 The principle insists that consumer
should be at the center of the
marketing effort (U-Fone)

10
• Consumers are surrounded by stimuli in the form of:
 Advertising
 Stores
 Products
 All competing for consumers’ attention
 Marketers filter much of what consumer learn about the world
whether through:
 The affluence they depict in glamorous magazines
 The roles actors play in advertisement (Shahid Afridi in Head &Shoulders)
 In many ways consumers are also “at the mercy” of marketers.
Since they rely on marketers to:
 Sell products that are safe
 Performs as promised
 Tell the truth about what they selling
 To price and distribute the products safely 11
12
13
14
Its a form of direct marketing using databases of
customers/potential customers to generate personalized
communications in order to promote a product or service
for marketing purposes
Involves

Occurs when a company makes an effort to

on a regular basis, giving
them reasons to maintain a bond with the
company over time.
15
16
Attitudes/ Need

Experiences
17
 Popular culture consists of the music, movies, sports,
books, celebrities, and other forms of entertainment
consumed by the mass market; (product and marketer’s
inspiration)
 Product icons are the visual expression of the brand,
often become central figures in popular culture.
 Consumer-generated content: when everyday people
voice their opinions about products, brands, and
companies on blogs and social networking sites such as
Facebook and MySpace.
 It even includes consumer-generated commercials
(Abdul Sattar Edhi and Coca Cola)
18
19
 A fundamental premise of consumer behavior is that people often
buy products not for what they do, but for what they mean.
 Coca-Cola (share happiness)
 Apple (stylish, cool, innovative)
People may have various relationships with a product:
 Self-concept attachment—the product helps to establish the
user’s identity. (Harley Davidson- I am Harley rider)
 Nostalgic attachment—the product serves as a link with a past
self (Den tonic, Molty Foam)
 Interdependence—the product is a part of the user’s daily
routine.
 Love—the product elicits emotional bonds of warmth, passion, or
other (Fragrance)
20
strong emotion
21
22
23
The failure rate for new
products ranges from 40-
80%.

Although people may think

that advertisers use magic
to sell products, marketers
are only successful when
they promote good
products

24
25
 Generic Decision Model

proposes that buying

Problem Recognition
results from
consumers perceiving Search
that they have a Alternative Evaluation
problem and then Choice/Purchase
they move through a Post-acquisition
series of rational steps Evaluation/Post
to solve the problem Purchase behavior
26
27
https://www.youtube.com/watch?v=NX0en_m8fEY
28
https://www.youtube.com/watch?v=UKc271fj2ok
https://www.youtube.com/watch?v=_haR9O38X1U

29
 Consumer
Addictive
terrorism
consumption

Compulsive
consumption Consumed
consumers

Illegal activities

30
 9/11had a tremendous impact on consumerism
throughout the world. Such effects give the indication
that both natural and man-made disruptions to
financial, electronic, and supply networks can be
devastating.
 Although bioterrorism has occurred in the past, the
threat of such attacks is more prevalent than ever.
(Coca Cola –Indo-Pak ads)
 https://www.youtube.com/watch?v=ts_4vOUDImE
• Addictive Consumption
• Consumer addiction is a physiological and/or
psychological dependency on products or services.
(Video gaming, Drugs, gambling)
31
32
33
34
• Gambling is an example of consumption
addiction that touches every segment of
society

 People who are used or exploited, whether

willingly or not, for commercial gain in the
marketplace can be thought of as consumed
consumers. Examples include:
– Organ, blood, and hair donors
– Adapting a Child

35
36
37