Semester 5 , consumer behavior , PIS

1. 3/8/2017
DTM6052 Topic 1 Maria Mohd Yatim 1
TOPIC 1
INTRODUCTION
DTM6052 CONSUMER BEHAVIOUR
DTM6052 Topic1 Maria Mohd Yatim 1
Studies on human behaviour have been widely
acknowledged in social psychology literature for
many decades
Consumer behavior is not only about understanding
how consumers behave, but also beyond the roles
of marketing in providing the needs and wants of
consumers.
Most of these studies have shown that individual
behavior is a complex process, which is being
continually examined by both researchers and
business practitioners
Introduction
DTM6052 Topic1 Maria Mohd Yatim 2
Concepts of Consumer Behaviour
Psychology
• Study of human
thinking and behaviour
that will effect to some
issues to personality,
personal development,
perception, attention
and limitations.
Sociology
• Cultural and
interpersonal
influences on
consumption for
example fashions,
diffusion of innovation
or people culture.
• The study of people within
and across culture.
Anthropology
DTM6052 Topic1 Maria Mohd Yatim 3
Marketing
• It is the process of
planning and executing
the conception, pricing,
promotion, and
distribution of ideas,
goods and services to
create more satisfying
exchanges than the
competition.
Economics
• Basic economic issues
that deal with supply and
demand, rational
decision making to
emphasize a perfect
information.
• It can lead to behavioral
economics for example
mental accounting.
Concepts of Consumer Behaviour
DTM6052 Topic1 Maria Mohd Yatim 4
Terminologies
Consumer
• Refers to two types of consuming
units, final consumer and
organisational consumer.
Organization
al Consumer
• Includes commercial, industrial and
agricultural firms, governmental
agencies and non-profit institutions.
• These organizations and institutions
need the goods and services that
enable them to perform their
functions and to achieve their
organizational objectives.
Final
Consumer
• Any individuals that purchases goods
or services either for his own
personal use or for his family use.
• In other words, the purchase goal is
to satisfy a need or wants of his own
or his family members.
DTM6052 Topic1 Maria Mohd Yatim 5
Consumer behaviour reflects the totality of
consumers' decision with respect to the
acquisition, consumption and disposition of
goods, services, activities, experience, people
and ideas by (human) decision-making units.
Horner and
Swarbrooke
(1996)
• Consumer behavior is the study of why
people buy the product they do, and how
they make their decision.
Terminologies
Consumer Behaviour
DTM6052 Topic1 Maria Mohd Yatim 6

2. 3/8/2017
DTM6052 Topic 1 Maria Mohd Yatim 2
Engel,
Blackwell and
Miniard (2001)
• Those activities directly involved in obtaining,
consuming, and disposing of products and
services including the decision processes that
precedes and follows these actions.
• This definition emphasizes the importance of
the psychological process which the consumer
goes through during the pre-purchase, and
post-purchase stages.
Solomon (1996)
• Consumer behaviour is the process involved
when individuals or group select, purchase,
use, or dispose of products, services, ideas or
experiences to satisfy needs and wants.
• This definition introduces the idea that
consumers may make purchase decisions in
groups, and not just simply as individuals.
DTM6052 Topic1 Maria Mohd Yatim 7
Role of Consumer Behaviour in the Marketing Process
Target market
DTM6052 Topic1 Maria Mohd Yatim 8
Two different ways for marketers to understand their consumers:
Primary Research
• Primary Research refers to a
research methodology where
marketers interact with
consumers directly and
gather as much information
as they can. Information is
generally collected through
surveys, questionnaires,
feedback forms, interviews
etc.
Secondary Research
• Secondary Research often
refers to relying on
information which has been
collected by others at some
point of time.
DTM6052 Topic1 Maria Mohd Yatim 9
Marketers must also take
into account:
Age group of
consumers
Geographical
location
Lifestyle of
consumers
Social Status of
consumers
DTM6052 Topic1 Maria Mohd Yatim 10
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
MARKETING
STIMULI
OTHER
STIMULI
Product
Price
Place
Promotion
Buyer
Characteristics
Buyer Decision
Process
Economic
Techno.
Political
Cultural
BUYER’S BLACK BOX
BUYER’S
RESPONSES
Kotler’s Black Box Model
DTM6052 Topic1 Maria Mohd Yatim 11
Andreason Model
DTM6052 Topic1 Maria Mohd Yatim 12

3. 3/8/2017
DTM6052 Topic 1 Maria Mohd Yatim 3
Nicosia Model
This model focuses on the relationship between the firm
and its potential consumers.
The firm communicates with consumers through its
marketing messages (advertising), and the consumers
react to these messages by purchasing response.
Looking to the model we will find that the firm and the
consumer are connected with each other, the firm tries
to influence the consumer and the consumer is
influencing the firm by his decision.
DTM6052 Topic1 Maria Mohd Yatim 13
Field 1: The consumer attitude based on the firms’ messages
The first field is divided into two subfields.
The first subfield deals with the firm’s marketing environment
and communication efforts that affect consumer attitudes,
the competitive environment, and characteristics of target
market. Subfield two specifies the consumer characteristics
e.g., experience, personality, and how he perceives the
promotional idea toward the product in this stage the
consumer forms his attitude toward the firm’s product based
on his interpretation of the message.
The Nicosia model is divided into four major fields:
DTM6052 Topic1 Maria Mohd Yatim 14
Field 2: Search and evaluation
The consumer will start to search for other firm’s brand and
evaluate the firm’s brand in comparison with alternate brands.
In this case the firm motivates the consumer to purchase its
brands.
The Nicosia model is divided into four major fields:
Field 3: The act of the purchase
The result of motivation will arise by convincing the consumer
to purchase the firm products from a specific retailer.
Field 4: Feed back
This model analyses the feedback of both the firm and the
consumer after purchasing the product. The firm will benefit
from its sales data as a feedback, and the consumer will use his
experience with the product affects the individuals’ attitude and
predisposition’s concerning future messages from the firm.
DTM6052 Topic1 Maria Mohd Yatim 15 DTM6052 Topic1 Maria Mohd Yatim 16
Howard-Sheth Model
DTM6052 Topic1 Maria Mohd Yatim 17
Solomon Model of Comparison Process
DTM6052 Topic1 Maria Mohd Yatim 18

4. 3/8/2017
DTM6052 Topic 1 Maria Mohd Yatim 4
Stimulus-Response Model of Buyer Behavior
DTM6052 Topic1 Maria Mohd Yatim 19
Model of Consumer Decision-Making Framework
DTM6052 Topic1 Maria Mohd Yatim 20
Felt need/
travel
desire
Information
collection
and
evaluation
image
Travel
decision
(choice
between
alternatives)
Travel
satisfaction
outcome
and
evaluation
Travel
preparation
and travel
experiences
Mathieson & Wall Model
Figure: 1.8
Model of Travel-buyingBehaviour
DTM6052 Topic1 Maria Mohd Yatim 21
Current Technology
Marketing Tactics
Nature and Characteristics of the Consumer
Knowledge
DTM6052 Topic1 Maria Mohd Yatim 22
Religious Tourism
Visiting places with religious significance or attending religious
events.
Travel for religious reason exited in India and Asia.
Nature and Characteristics of Consumer
Based on Each Types of Tourism
Business Tourism
Visit to potential customers by ‘sales people’, the so-called
commercial travellers.
The transporting of goods to the consumer.
Hedonistic Tourism
Motivated by a desire for sensual pleasure, is a modern
creation, encapsulated in the now classic 4s; sea, sand, sun
and sex.
DTM6052 Topic1 Maria Mohd Yatim 23
Educational Tourism
Involves the tourist travelling for education.
Wealthy members of the Greek and Roman elites travelled to
increase their understanding of the world.
Nature and Characteristics of Consumer
Based on Each Types of Tourism
Special Interest Tourism
A niche market acting like activity tourism, but it differs in that
involves little or no physical exertion.
The most popular types of interesting; painting, gastronomy
(learning to cook and enjoying gourmet meals), restaurants,
military history and visiting battlefields, visiting gardens and
attending music festivals.
DTM6052 Topic1 Maria Mohd Yatim 24

5. 3/8/2017
DTM6052 Topic 1 Maria Mohd Yatim 5
It is a social movement of citizens and government to enhance the rights
and power of buyers in relation to sellers.
DTM6052 Topic1 Maria Mohd Yatim 25
Right and Responsibilities of Consumer in Malaysia
The right
to
indemnity
The right
to be
heard
The right
to choose
The right
to be
informed
The right
to safety
DTM6052 Topic1 Maria Mohd Yatim 26
Any claim
In respect of any goods or
services for which no
redress mechanism is
provided for under any other
written law
Based on a cause of action
which accrues within three
years of the claim.
Tribunal for Consumer Claims Malaysia
The Tribunal for Consumer Claims Malaysia (TCCM) is an independent
judicial body established under the Consumer Protection Act 1999
and came into force on 15 November 1999 (Laws of Malaysia Act
212).
It was set up as a simple, cheap and fast alternative channel for
consumers to claim losses not exceeding RM25, 000 connected with
goods purchased or services obtained from traders or service
providers.
The Tribunal’s jurisdiction also covers:
DTM6052 Topic1 Maria Mohd Yatim 27
The Tribunal has no jurisdiction to hear:
Any claim arising from
personal injury or death
Any claim for the recovery
of land or any estate or
interest in land
Any dispute in respect of
title of any land or estate
or interest in land
Any dispute concerning the
entitlement of any person
under a will or on any
intestacy
Any dispute on matters
regarding franchise,
goodwill, trade secrets or
other intellectual property
and any cause in action
Where any other tribunal
had been established under
any other written law to
hear and determine claims
on matters which is the
subject matter of such
claim
Tribunal for Consumer Claims Malaysia
DTM6052 Topic1 Maria Mohd Yatim 28
Benefits of Consumerism
market
DTM6052 Topic1 Maria Mohd Yatim 29
Roots Of Dissatisfaction Of Consumers
2 Dissatisfaction with the System
Many institutions are subjected to public scrutiny. There is a
lot of trust and a loss of esteem by these institutions or
enterprises. One glaring example of dissatisfaction for the
consumers is the issue of passport. The procedure is cumber
some. There is shortage of staff and even when the passport
has been made and is ready for despatch, the despatch does
not take place even after six months. Similar is the case in the
issue of licenses, ration cards, telephone connections etc.
1 Performance Gap
The consumers are dissatisfied with the performance of the
products, which are below their expectations. The consumers
feel that the promise-performance gap is widening e.g., the
scooter not giving the mileage promised.
DTM6052 Topic1 Maria Mohd Yatim 30

6. 3/8/2017
DTM6052 Topic 1 Maria Mohd Yatim 6
Roots of Dissatisfaction of Consumers
3 The Consumer Information Gap
The consumer is not fully informed about the number of products
available in the market and a customer who is short of time and
does not have the interest or intelligence to process information is
at a loss. Such incidents occur while buying computers, small cars
etc. The processing of decision making is complex and often the
consumer makes a wrong choice.
4 Non-credibility of Advertising
Some consumers have an antagonistic attitude towards
advertising. They feel that the advertisements are not credible and
doubt their truthfulness. Some want to keep away from the
advertising clutter, which irritates them.
DTM6052 Topic1 Maria Mohd Yatim 31
Roots of Dissatisfaction of Consumers
5 Impersonal and Unresponsiveness Marketing and Service
Organization
The response to the human voice by a computer is sometimes annoying.
Telemarketing is a great annoyance to the consumer. Lack of complete
knowledge by salesman etc. e.g. Most of the banks selling credit cards
will call you at any hour and disturb you in your work, your meeting etc.
The number of such calls are many in a day and many salesman of the
same bank are calling you over and over again. As a courtesy you do not
shut them up but it is very irritating and time consuming.
6 Intrusion of Privacy
Many consumer information databases are prepared. In this
computerized society, this information is easily accessible and effects
the consumer’ privacy.
DTM6052 Topic1 Maria Mohd Yatim 32
DTM6052 Topic1 Maria Mohd Yatim 33