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Sustainable consumer behavior - Part 2

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We continue our exploration of the basics of consumer behavior by exploring three perspectives: rational, psychological, and sociological. These must be understood if we are to effectively motivate consumers to purchase and properly use sustainable products and services.

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Sustainable consumer behavior - Part 2

  1. 1. Sustainable Consumer Behavior – Part 2 BA 442: SUSTAINABILITY BEHAVIOR OF CONSUMERS, FIRMS, AND SOCIETIES
  2. 2. Keep yourself clean and bright. Become invaluable.
  3. 3. The Problem with Marketing: Socio-Ecological Problems Sustainable Consumer Behavior Sustainability Marketing Values & Objectives Sustainability Marketing Strategies Sustainability Marketing Mix Fostering Sustainable Behavior Goal of BA442: provide students with the knowledge to enhance sustainable behaviors in firms, among consumers, and in society at large.
  4. 4. Cultivation/P rimary Processing Roasting and Packaging Distribution Consumption & Disposal Energy Air Water Soil Waste Ecosystems Health Equity SOCIO-ECOLOGICAL IMPACT MATRIX COFFEE
  5. 5. SOCIO-ECOLOGICAL IMPACT MATRIX COFFEE Cultivation/P rimary Processing Roasting and Packaging Distribution Consumption & Disposal Energy Air Water Soil Waste Ecosystems Health Equity High Impact Medium ImpactKey:
  6. 6. Reveals risks: if unmet may cause you to lose customers Identifies opportunities for innovation: if addressed creatively may enable you to gain customers and/or increase margins Collaborative and open process: used in companies such a matrix would be a tool used by a cross-disciplinary team High level, quick assessment: additional, detailed information and data is needed both on internal processes and also on consumer preferences USING THE MATRIX
  7. 7. PREFERENCE/IMPACT MODEL Customer Preference Socio-ecologicalimpact Energy Health/Accidents Waste
  8. 8. Recognition of Need or Want Information Search Post-Use Evaluation of Alternatives Purchase Use TOTAL CONSUMPTION PROCESS
  9. 9. REVIEW & REFLECT: INSIGHT #1 "You have to be willing to fire your mother. Successful CEOs know their allegiance must always remain with customers and shareholders, 100 percent of the time." -Kevin O'Leary
  10. 10. REVIEW & REFLECT: INSIGHT #1 “Companies like ours are demonstrating that sustainable businesses are better, more profitable businesses.” Adam Lowry, co-founder of chemical-free household products company Method
  11. 11. REVIEW & REFLECT: INSIGHT #1 "You have to be willing to fire your mother. Successful CEOs know their allegiance must always remain with customers and shareholders, 100 percent of the time." -Kevin O'Leary, co-founder and chairman of O'Leary Funds and ABC's Shark Tank “Companies like ours are demonstrating that sustainable businesses are better, more profitable businesses.” Adam Lowry, co-founder of chemical-free household products company Method
  12. 12. LIMITS OF FOCUS ON THE GREEN CONSUMER (INSIGHT CH 2; DISC 2) From a marketing point of view From an ecological point of view
  13. 13. Recognition of Need or Want Information Search Post-Use Evaluation of Alternatives Purchase Use TOTAL CONSUMPTION PROCESS
  14. 14. Consumer behavior can be understand from three perspectives: Rational Psychological Sociological CONSUMER BEHAVIOR: PUSHING OUR BUTTONS
  15. 15. Perceived Benefits - Perceived Costs Perceived Net Benefit RATIONAL PERSPECTIVE “We just need to educate people!”
  16. 16. PSYCHOLOGICAL PERSPECTIVE (AKA “IRRATIONAL”) “Standard economics assumes that we are rational, but we are far less rational in our decision making. Our irrational behaviors are neither random nor senseless - they are systematic and predictable. We all make the same types of mistakes over and over, because of the basic wiring of our brains.” Dan Ariely, Predictably Irrational
  17. 17. PSYCHOLOGICAL (AKA “IRRATIONAL”): THE CASE OF FREE LAW SERVICES $0 > $30 For $30!!! Are you kidding me? For free? Absolutely, I would be happy to.
  18. 18. SOCIOLOGICAL PERSPECTIVE In a consumer study conducted by the folks at BrightLocal, they found that 88% of consumers read online customer reviews to determine if a local business is good.
  19. 19. CONSUMER BEHAVIOR: PUSHING OUR BUTTONS Let’s practice…what are all things this shopper might be thinking about?
  20. 20. CONSUMER BEHAVIOR: PUSHING OUR BUTTONS
  21. 21. CONSUMER BEHAVIOR: PUSHING OUR BUTTONS What do I think is important? Does this fit who I am? Can I make a difference? What do I believe about sustainability? I wonder what my friends are using? What did my mom use?
  22. 22. LET’S PRACTICE…. In pairs: How would you sell an Amazon Echo? • Who would most likely use it and what would they hire an Amazon Echo to do for them? • With that in mind, now consider how you would use the three perspectives of consumer behavior to promote and sell an Amazon Echo. Then check out the following commercial for the Amazon Echo Dot and see how many consumer behavior “buttons” get pushed.
  23. 23. WHAT DID YOU SEE? COUNTING THE CONSUMER BUTTONS… I noticed the following “jobs to be done” and consumer “buttons”: • Convenience • Safety • Enjoyment/pleasure • Social norm for busy, urban 30-somethings • Empowered women • Upper class • Supports togetherness (between the couple) And no indication whether “Alexa” is energy efficient, made with responsibly sourced materials or designed for remanufacture after its useful life as “Alexa” is over.

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