Transcript Consumer Behaviour - Paul Tilley`s Resource Wiki

MR1500
Introduction to
Consumer Behaviour
With Paul Tilley
Week 1
Note: These slides
contain my own
material and
Pearson Education
Canada material
Consumer Behaviour
• Definition:
– A study of the processes involved
– And the actions that a person or group takes in:
• Purchasing,
• Using and
• Disposing of
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products and services
and the mental and
social processes that
proceed
and follow these actions
To satisfy needs and desires.
Consumer Behaviour is a “Process”
CONSUMER’S
PERSPECTIVE
MARKETER’S
PERSPECTIVE
PREPURCHASE ISSUES
How does a consumer
decide about needing a
product?
How are consumer attitudes
formed/changed?
PURCHASE ISSUES
Is product acquisition a
stressful or pleasant
experience?
How do situational factors
affect purchase decision?
POSTPURCHASE ISSUES
Does product provide
pleasure or perform
function? How is product
disposed of?
What determines customer
satisfaction and
repurchase?
Figure 1.1
(Abridged)
Actors in Consumer Behaviour
• Consumer: A person who identifies a need or
desire, makes a purchase, and then disposes
of the product
– Purchaser vs. user vs. influencer
– Organization/group as consumer
The Consumer Purchase Decision
Process (CPDP)
• Perceive a need: Problem Recognition.
• Seek information on how to fill the need: Information
Search. (Internal sources & External Sources)
• Assessing the information: Alternative Evaluation. (Form
an Evoked Set)
• Select and Alternative: Purchase Decision
• After Purchase feeling: Post-purchase Behaviour
(Cognitive Dissonance)
Influences on the CPDP
• Situational Influences
• Influences that come
from the buying situation
(physical and mental) that
you find yourself in during
the CPDP.
• Psychological Influences
• Mainly internal, your
mindset affects the CPDP
• Sociocultural Influences
• Influence that come from
society and our social
surroundings.
• Marketing Mix
Influences
• The effect of the sellers
efforts in manipulating
the price, place, product
and promotion on the
consumers CPDP
Situational Influences
• These are influences on the CPDP that are related to the
situation that the buyer finds him/herself in when making the
buying decision.
• Situational Influences include:
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Purchase Task - Amount of effort require to buy a product.
Social Surroundings - The people around you when you buy.
Physical Surrounding - The building/place you are in to buy.
Temporal Effects - Time related effects.
Antecedent State - Mood of the buyer.
Key Message
• Consumers impact a business’ marketing
strategy
Psychological Influences
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Motivation
• See Maslow’s Hierarchy of needs.
Personality
Perception
• Note the perception process - Selective perception
• Note the importance of risk
•
Learning
• Behavioural Learning - learned through experience
• Cognitive Learning - learned through mental processes such as thinking.
• Brand Loyalty - learned through experience or others
•
Values, Beliefs & Attitudes
• Attitude formation & changing
•
Lifestyle
• Mode of living - Self defined
Sociocultural Influences
• Personal Influence
• Opinion leaders affect your decision as does word-of-mouth.
• Reference Groups
• You look to these people as a measure of your relative state
• Family Influence
• Where the family is in their lifecycle affects their purchase decisions
• Social Class
• The division of society that you feel you fall into
• Culture and Subculture
• The accepted set of values and beliefs and attitudes that exist amongst a single
group in society.
See
www.communityaccounts.ca
Marketing Mix Influences
• There is a great deal of influence on the CPDP
by the:
– Product itself
– The Price of the product
– The way the product is Promoted
– The Place where the product is sold or how it is
delivered.
Marketing Ethics and Public Policy
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Business Ethics
Ethics
Are we being manipulated?
Promises vs reality
Consumerism
Dark side of our consumer culture
Consumers’ Impact
• Understanding consumer behaviour is good
business
– Understanding people/organizations to satisfy
consumers’ needs
– Knowledge and data about customers…
• …help to define the market
• …identify threats/opportunities to a brand
Segmenting Consumers
• Market Segmentation
– Similar consumers
• Example: “Heavy Users” of fast-food industry or similar
ethnic backgrounds
Copyright 2008
Pearson Education
1-14
Segmenting Consumers:
Demographics
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Age
Gender
Family Structure and Marital Status
Social Class and Income
Ethnicity
Geography
Copyright 2008
Pearson Education
1-15
Segmenting Consumers: Lifestyles
• Psychographics
– The way we feel about ourselves
– The things we value
– The things we do in our spare time
Relationship Marketing
• Success = building lifetime relationships
between brands and customers
– Regular interaction with customers
– Database Marketing
Marketing’s Impact on Consumers
• Marketers significantly influence the world
and the information we learn!
– Advertisements, stores, and products
communicate and persuade
The Meaning
of Consumption
• People often buy products not for what they
do, but for what they mean
– Brands…
• …convey image/personality
• …define our place in modern society
• …help us to form bonds with others who share similar
preferences
Brand Relationship Types
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Self-Concept Attachment
Nostalgic Attachment
Interdependence
Love
The Global Consumer
• Global Consumer Culture
– People united by common devotion to:
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Brand name consumer goods
Movie stars
Celebrities
Leisure activities
– Pressure to understand similarities and
differences of customers in various countries
Virtual Consumption
• Impact of the Web on consumer behaviour
– 24/7 shopping without leaving home
– Instantaneous access to news
– Handheld devices and wireless communications
• C2C e-commerce
– Virtual brand communities.
– Consumer chat rooms
Virtual Consumption (Cont’d)
• “Wired” Canadians spend…
– …less time with friends/family
– …less time shopping in stores
– …more time working at home after hours
• But, many report that e-mail strengthens
family ties
Copyright 2008
Pearson Education
1-23
Marketing and Reality
• “Blurred boundaries” between marketing
efforts and “the real world”
– Popular culture shaped by marketers
Copyright 2008
Pearson Education
1-24
Marketing Ethics and Public Policy
• Business Ethics: rules
of conduct that guide
actions in the
marketplace
– What is “Right vs.
Wrong”
• Differs among people,
organizations, and
cultures
MISSTEPS See: 9/11 anniversary
'advertising fails' provoke outrage
Marketing Ethics
and Public Policy (cont’d)
• Consumers think better of products made by
firms they feel behave ethically
Manipulating Needs and Wants
• Marketers tell people what they should
want
– Marketerspace vs. Consumerspace
– Response: Marketers recommend ways to
satisfy basic biological needs
Copyright 2008
Pearson Education
1-27
Are Advertising and
Marketing Necessary?
• Marketers foster materialism
– Response: Products are designed to meet existing needs
• Economics of Information Perspective
• Discussion: do marketers have the ability to control
our desires or the power to create needs?
– Is this situation changing as the Internet creates new ways
to interact with companies? If so, how?
Copyright 2008
Pearson Education
1-28
Do Marketers Promise Miracles?
• Advertising promises “magical” products
– Response: Advertisers simply do not know enough
about people to manipulate them
• Failure rate for new products = 40% to 80%
Copyright 2008
Pearson Education
1-29
Public Policy and Consumerism
• Consumer welfare is protected at the Federal,
Provincial and Municipal levels
• Main area of focus:
– Protection from unfair business practices
– Protect broad interest of society
• Consumers depend on their government to regulate
and police standards
• Supervision may depend on political climate in a
country
Consumer Activism
• Adbusters
– Non-Profit advocates “for the new social activist
movement of the information age”
– Buy Nothing Day and TV Turnoff Week
• Culture Jamming
– Aims to disrupt corporate efforts to dominate our
cultural landscape
Copyright 2008
Pearson Education
1-31
The Consumer “Dark Side”
Addictive Consumption
• Compulsive Consumption
• Consumed Consumers
• Illegal Activities
– Theft
– Anti-consumption
Study of Consumer Behaviour
• Interdisciplinary Influences
– Many different perspectives/fields
• Consumer Behaviour Employers
– Universities, manufacturers, museums, advertising
agencies, and governments
Perspectives on Consumer Research
• Positivism
– Stress the function of objects/products
– Celebrate technology, science
– World as an objective, rational, ordered place
• Interpretivism
– Stress importance of sympolism
– We each construct our own meanings
– Consumption of products = diverse experiences