Transcript 1-consumer-behavior

LOGO
Consumer Behavior
Why Study Consumer Behavior
•Consumer Behavior determines the economic health of a
nation
•Consumer Behavior determines the success of marketing
programs
•Consumer Behavior determines the economic health of
everyone
•Consumer Behavior helps formulate public policy
•Consumer Behavior affects Personal Policy
Evolution of Consumer Behavior
Who determines what consumers can
buy?
 Supply Chain
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Manufacturer
Wholesaler
Retailer
Other helping agencies
Shifting from Supply to demand
From Manufacturing to Selling
From selling to Marketing
Marketing Orientation
Production
Concept
Consumer
prefer
products that
are widely
available and
expensive.
Product
Concept
Consumers
favor
products that
offer the
most quality,
performance,
or innovative
features.
Selling
Concept
Consumer will
buy products
only if the
company
aggressively
promotes /
sells these
products.
Marketing
Concept
Focuses on
needs / wants
of target
markets &
delivering
value better
than
competitors.
Marketing Vs. Selling Concept
Marketing Concept
Marketing Concept
Market
Customer
Needs
Integrated
Marketing
Profitability
Customer Needs
Status Symbol
Secret Needs
Gift from Dealer
Delight Needs
Good Service from Dealer
Unstated Needs
Operating Cost low,
Not Initial Price
Real Need
Want Inexpensive Car
Stated Needs
Customer Needs & Marketing
Responsive
Marketing
Responsive
Marketer
finds a stated
need and fills
it.
Anticipative
Marketing
Anticipative
marketer
looks ahead
into what
needs
customer
may have in
near future.
Creative
Marketing
Creative
Marketer
discover and
produces
solutions
customers did
not ask for but to
which they
enthusiastically
respond.
Integrated Marketing
1st Level Integration:
Internal
Marketing
External
Marketing
All marketing functions
must work together (sales
force,
advertising,
customer service, product
management,
marketing
research)
2nd Level Integration:
Task of hiring, training
& motivating able
Employees who want
to serve customers well
Marketing directed
at people outside
the company
Marketing
must
be
embraced by the other
departments, they must
also “think customer”.
Profitability
Sales Decline
Slow Growth
Factors
Affecting
Profitability
Increasing Marketing
Expenditures
Changing buying
pattern
Increasing Competition
Evolving Views of Marketing’s Role in
the Company
Production Finance
Production Finance
Human
Marketing
Human
Marketing
Resource
Resource
Finance
Production
Production
Marketing
Customer
Marketing
Human
Resource
Customer as the controlling function and Marketing as the
Integrative Function
Traditional Organization Chart
Top
Management
Middle
Management
Front Line People
Customers
Modern Customer Oriented Organization
Chart
Customers
Front Line People
Middle
Management
Top
Management
Societal Marketing
Methods of studying Consumer Behavior
Observation
Interviews and Surveys
Experimentation
Observation
In home observation: Placing marketers inside
people’s homes to examine exactly how
products are consumed.
Shadowing: Method in which a researcher
accompanies or shadows consumer through the
shopping and consumption process, asking
questions about each step of the process.
Physiological observational methods: These
include cameras to measure eye movement,
galvanic skin response, MRI etc.
Interviews and Surveys
 Surveys are an efficient way of gathering information
from a large sample of consumers by asking questions
and recording responses.
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Mail Questionnaire
Internet Surveys
Telephonic Interviews
Personal Interview
Intercept
 Focus Group: 8-10 people involved in a discussion led
by a moderator skilled in persuading consumers to
discuss thoroughly a topic of interest to the researcher.
 Longitudinal Studies: Involve repeat measures of
consumer activities over time to determine changes in
their opinions, buying and consumption behavior.
Experimentation
Attempts to understand cause and effect
relationships by carefully manipulating
independent variables to determine how
these changes affect dependent variables.
 Laboratory Experiment: Conducted in physical
environment that permits maximum control of
variables being studied.
 Field Experiment: takes place in a natural
setting such as a home or a store.
LOGO