Introduction to Consumer Behaviour


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introduction to Consumer Behavior for PGDAM and MBA students. The presentation highlights various aspects of Consumer Behavior, its impact, importance to understand the behavior of target market. Process of Marketing Segmentation for targeting different type of audiences.
The presentation also highlights darker side of consumer behaviour aspects and how companies use black hat techniques to attract more consumers.

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Introduction to Consumer Behaviour

  1. 1. 1-1 1-1 An Introduction to Consumer Behavior Moses Gomes Marcom Consultant and Guest Faculty at Mumbai University Garware Institute of Vocational Education Whistling Woods International
  2. 2. 1-2 1-2
  3. 3. 1-3 1-3 “Remember “Remember Me?” Me?” I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book. "Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy." Source: From a Better Business Bureau bulletin submitted by An Arkansas Reader to Dear Abby
  4. 4. Defining Consumer Defining Consumer Behavior Behavior 1-4 1-4 Consumer Behavior is the Process Involved When Individuals or Groups Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchange) to Satisfy Needs and Desires.
  5. 5. 1-5 1-5 Issues During Stages Issues During Stages in the in the Consumption Consumption Process Process
  6. 6. Consumers’ Impact on Consumers’ Impact on Marketing Marketing Strategy • Strategy Understanding consumer behavior is 1-6 1-6 good business. – Firms exist to satisfy consumers’ needs, so – Firms must understand consumers needs to satisfy them. • The Process of Marketing Segmentation : – Identifies Groups of Consumers Who are Similar to One Another in One or More Ways, and – Devises Marketing Strategies that Appeal to One or More of These Groups.
  7. 7. Segmenting Segmenting Consumers by Consumers by Demographic Statistics That M easure Demographic Demographics are Observable Aspects of a Population Such As: Dimensions Dimensions Geography Geography Race and Race and Ethnicity Ethnicity Social Class Social Class and Income and Income Age Age Gender Gender Family Structure Family Structure 1-7 1-7
  8. 8. Consumers’ Impact On Marketing Consumers’ Impact On Marketing Strategy: Building Bonds With Strategy: Building Bonds With Consumers Consumers • 1-8 1-8 Relationship Marketing occurs when a company makes an effort to interact with customers on a regular basis, and gives them reasons to maintain a bond with the company over time. • Database Marketing involves tracking consumers’ buying habits very closely, and crafting products and messages tailored precisely to people’s wants and needs based on this information.
  9. 9. Marketing’s Impact on Marketing’s Impact on Consumers: Consumers: The Meaning of Consumption The of Relationships a Person May Have With a Types Meaning of Consumption Product: Self-Concept Attachment Helps to Establish the User’s Identity Nostalgic Attachment Serves as a Link With a Past Self Interdependence Part of the User’s Daily Routine Love Elicits Bonds of Warmth, Passion, or Other Strong Emotion 1-9 1-9
  10. 10. 1-10 1-10 Marketing’s Impact on Marketing’s Impact on Consumers: Consumers: Consumption Typology the Different Ways Consumption Typology Explores Consumption Typology That Products and Experiences Can Provide Meaning to People. There Are 4 Distinct Types of Consumption Activities: Consuming as Experience An Emotional or Aesthetic Reaction to Consumption Objects Consuming as Integration Express Aspects of Self or Society Consuming as Classification Communicate Their Association With Objects, Both to Self/ Others Consuming as Play Participate in a Mutual Experience and Merge Self With Group
  11. 11. 1-11 1-11 Marketing’s Impact on Marketing’s Impact on Consumers Consumers – Marketing and Culture • Popular Culture – Intangible and Tangible Objects – The Global Consumer • Global Consumer Culture – Virtual Consumption • Business to Consumer Selling (B2C Commerce) • Consumer to Consumer Selling (B2B Commerce) • Virtual Brand Communities – Blurred Boundaries: Marketing and Reality
  12. 12. Marketing Marketing Ethics Ethics Business Ethics are Rules of Conduct That Guide Actions in the Marketplace - the Standards Against Which Most People in a Culture Judge What is Right and What is Wrong, Good or Bad. 1-12 1-12
  13. 13. Other Marketing Ethics Other Marketing Ethics Issues Issues 1-13 1-13 • Do Marketers Create Artificial Needs? – Response: Marketing attempts to create awareness that these needs do exist, rather than to create them. • Are Advertising and Marketing Necessary? – Response: Yes, if approached from an information dissemination perspective. • Do Marketers Promise Miracles? – Not if they are honest; they do not have the ability to create miracles.
  14. 14. The Dark Side of The Dark Side of Consumer Consumer Behavior Behavior Compulsive Consumption >Behavior is Not Done by Choice >Gratification is Short-Lived >Strong Feelings of Regret or Guilt Afterwards 1-14 1-14 Addictive Consumption > Gambling Illegal Activities Consumed Consumers > Consumer Theft (Shrinkage) >Anti-consumption – Culture Jamming – Cultural Resistance > People Who Are Exploited for Commercial Gain in the Marketplace.
  15. 15. Interdisciplinary Interdisciplinary Influences Influences 1-15 1-15 Individual Focus Individual Focus Experimental Psychology Clinical Psychology Developmental Psychology Human Ecology Microeconomics Social Psychology Sociology Macroeconomics Semiotics/Literary Criticism Demography History Social Focus Social Focus Cultural Anthropology
  16. 16. Two Perspective on Two Perspective on Consumer Consumer Research Positivist Positivist Research Approach Approach 1-16 1-16 Interpretivist Interpretivist Approach Approach Objective Objective Socially Socially Constructed Constructed Prediction Prediction Understanding Understanding Independent Independent Contextual Contextual Real Cause Real Cause Simultaneous Simultaneous Shaping Shaping Separation Separation Interaction Interaction
  17. 17. The Wheel of Consumer The Wheel of Consumer Behavior Behavior 1-17 1-17
  18. 18. 1-18 1-18