6. What is Consumer Behavior?
https://www.youtube.com/watch?v=gtfPU6nTa9k
The study of how consumers
• Select
• Purchase
• Use
• Dispose
of goods and services in the process of satisfying their
personal and household needs and wants.
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7. 1-7
Consumer behavior: the study of the
processes involved when individuals
or groups select, purchase, use, or
dispose of products, services, ideas,
or experiences to satisfy needs and
desires.
8. Why did consumer behavior become a separate
discipline from marketing?
• Marketers came to realize that consumers did not always act or react as
marketing theory suggested they would
• Consumers rejected mass-marketed products, preferring differentiated
products that reflected their own special needs, personalities and lifestyles
• Even in industrial markets, where needs are more homogeneous than
consumer markets, buyers exhibited diversified preferences and less
predictable purchase behavior
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9. Other factors that contributed to the growing interest in
consumer behavior
• The accelerated rate of new product development
• The consumer movement
• Public policy considerations
• Environmental concerns
• The opening of national markets throughout the world
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10. Consumer behavior is more than just purchasing
Consumer Behavior involves
• Exposure to the media
• Browsing
• Influencing others
• Being influenced by others
• Complaining about and returning products
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11. Economics alone does not explain consumer
behavior
• Early theories based on notion that individuals act
rationally to maximize their benefits (satisfaction) from
purchasing
• Later research discovered that consumers are just as
likely to
• Purchase impulsively
• Be influenced by family, friends, advertisers and
role models
• Be influenced just as strongly by mood, situation
and emotion
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13. What Do Buying Decisions Involve?
https://www.youtube.com/watch?v=iI5DyRF5GUg
https://www.youtube.com/watch?v=QnK-LmiUMwc
• Decision entails determining:
• Where to learn about pets
• Where to purchase the selected pet
• How much to pay for it
• Who will take care of it
• What supplies or services are needed for it
• Where to purchase such supplies or services
• How much to pay for supplies and services
Consider a decision to acquire a pet
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14. The Marketing Concept
• An operating philosophy of business in which the consumer is
the focal point of the firm’s activities
• Embodies the view that industry is a customer-satisfying process,
not a goods-producing process (the “selling concept”)
• Key assumption is 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
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15. Focus on Health and Beauty
The Information Superhighway
Trends influencing consumer behavior in contemporary society
Shifting Roles of Genders
Telecommuting
Personalized Economy
Emphasis on Leisure
Concern about Safety
Diversity
Focus on Ethics
Ecological Consciousness
A Global Village
Changing Perception of Religion
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26. Definition
. 1. According to Engel, Blackwell and Mansard
‘Consumer behaviour is the actions and decision
processes of people who purchase goods and services for
personal consumption’.
• 2. According to Louden and Bitta
‘Consumer behaviour is the decision process and
physical activity, which individuals engage in when
evaluating, acquiring, using or disposing of goods and
services’.
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27. Nature of Consumer Behaviour
• Process
• Influenced by various factors
• Different for all customers
• Different for different products
• Region bounded
• Vital for marketers
• Reflect status
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35. Consumer Advocacy
Advocacy Marketing is a type of marketing that focuses on getting
your current customers to talk about your brand and products
through tools such as testimonials, reviews, and social
mentions. Since over 88% of shoppers research online
before buying, brand advocates help new customers make
decisions about the products that the buy.
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36.
37.
38. Case
Now you’ll want to show all those positive opinions
and the content that your advocates share online
about your brand on your online store. Integrating
this content into the buying process can increase
conversion rates in a 10-15%. Check out how Meller
brand integrates their customers’ advocate photos
into their product pages to increase conversions:
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41. What is a Brand?
A name, term, sign, symbol or design, or a combination of
them, intended to identify the goods or services of one seller
or group of sellers and to differentiate them from those of
competitors.
What is Branding?
Providing goods and services with the power of the brand. It’s all about
creating differences between products.
Dr Arpita Srivastava 41
47. Advantages of Strong
Brands
Improved perceptions and performance
Larger margins
Greater financial market returns
Greater trade cooperation
Increased marketing communications effectiveness
Less vulnerability to crises
Additional brand extension
Dr Arpita Srivastava 47
48. Brand elements are devices which can be trademarked, that
identify and differentiate the brand. Most strong brands employ
multiple brand elements. Nike has the distinctive “swoosh” logo,
the empowering “Just Do It” slogan, and the
from the Greek winged goddess
“Nike” name
of victory.
Brand
Elements
49. Brand Element Choice
Criteria
Memorable—How easily do consumers recall and recognize the
brand element both at purchase and consumption such as KIT
KAT, Tide, Crest, etc
Meaningful—Is the brand element credible? Does i
t suggest the
corresponding category and a product ingredient or the type of
person who might use the brand? Examples are FEVISTICK
Likable—How aesthetically appealing is the brand element?
Examples are Twitter, Wikipedia and Motorola’s ROKR, etc
Dr Arpita Srivastava 49
50. Brand Element Choice
Criteria
Transferable—Can the brand element introduce new products in
the same or different categories?
The Amazon is famous as the world’s biggest river, and the name
suggests the wide variety of goods that could be shipped
Adaptable—How adaptable and updatable is the brand element?
Protectable—How legally protectable is the brand element? How
competitively protectable?
Dr Arpita Srivastava 50
59. Brand
Positioning
The act of designing the company’s offering and image to
occupy a distinctive place in the mind of the target market.
The result of positioning is the successful creation of a
customer-focused value proposition, a logical reason why
the target market should buy the product.
Value Proposition
A good hot pizza, delivered to your door
within 30 minutes of ordering, at a
moderate price
Dr Arpita Srivastava 59
89. For Reflection
• How do you decide that you need a product?
• What about a purchase makes it pleasant or stressful for
you?
• When using the product, what determines if the
experience is pleasant?
1-89
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