Preparation for the Consumer Behaviour exam at Edinburgh Business School. Content extracted from the ‘Consumer Behaviour’ text book by David A. Statt. All pictures used for educational purposes only. No copyright infringement intended.
Consumer Behaviour Part I: The Consumer in Context Preparation for the Consumer Behaviour exam at Edinburgh Business School Content extracted from the ‘Consumer Behaviour’ text book by David A. Statt All pictures used for educational purposes only. No copyright infringement intended.
PART I The Consumer in Context Module 1: People as Consumers Module 2: Market Segmentation Module 3: New Products and Innovations
Module 1: People as Consumers Studying people as consumers Positivist approach Focuses on predicting what the consumer will do under certain speciﬁed conditions. Uses scientiﬁc research. Reductionist approach All human behavior can be reduced to consumerism. Interpretivist approach People are not always rational. Reality is an individual’s subjective experience. Cause and effect can’t be isolated.
Consumer Customer Usually implies aA person who purchases relationship over timegoods and services for between the buyer and apersonal use particular brand or retail outlet.
Consumer Behaviour is... ...the emotional, mental and physical activities that people engage in when selecting,purchasing using, and disposing of products and services so as to satisfy needs and desires.
Buying is not just a necessary activity but an attractive and highly approved way of behaving.
At the heart of the trading nexus is the act of exchange between producer and consumer for their mutual beneﬁt.
“Consumption is the sole endand purpose of all production.” Adam Smith
The Production Orientation “You can have any color you want, as long as its black.” Henry Ford
The Marketing Concept shift from selling what you can make to making what you can sell!
‘to create a customer’ A business has only two important functions, marketing and innovation. Peter Drucker
Module 2: Market Segmentation cheapest brand, top-of-the-range aimed at young intended as intermediate stages for the customer ﬁrst-time buyers on life’s automotive journey who has made it
3 marketing conditions to be met for segmentation to work identity access size
Most important forms of market segmentation:geographic psychological beneﬁt demographic usage
geographic Micromarketing Same location ≈ same needs, wants, preferences Cultural effects differ; Climatic conditions
geographic Campbell’s soups Micromarketing: America devided in 22 markets
geographic Localization: Most consumer buying behaviour is local Local newspaper, radio, TV, websites, in-store and POS-ads, etc.
demographic statistically categorizing a population by sex income age education occupation social class family size religion