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- 1. Copyright © 2006 Pearson Education Canada Inc. Chapter 2 Introduction to Consumer Behaviour Sharq Institute of higher Education Najeebhemat
- 2. Copyright © 2006 Pearson Education Canada Inc. 1-2 Consumer Behaviour The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
- 3. Copyright © 2006 Pearson Education Canada Inc. 1-3 Personal Consumer The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.
- 4. Copyright © 2006 Pearson Education Canada Inc. 1-4 Development of the Marketing Concept Production Concept Selling Concept Product Concept Marketing Concept
- 5. Copyright © 2006 Pearson Education Canada Inc. 1-5 The Production Concept Assumes that consumers are interested primarily in product availability at low prices Marketing objectives: – Cheap, efficient production – Intensive distribution – Market expansion
- 6. Copyright © 2006 Pearson Education Canada Inc. 1-6 The Product Concept Assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features Marketing objectives: – Quality improvement – Addition of features Tendency toward Marketing Myopia.
- 7. Copyright © 2006 Pearson Education Canada Inc. 1-7 The Selling Concept Assumes that consumers are unlikely to buy a product unless they are aggressively persuaded to do so Marketing objectives: – Sell, sell, sell Lack of concern for customer needs and satisfaction
- 8. Copyright © 2006 Pearson Education Canada Inc. 1-8 The Marketing Concept Assumes 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 Marketing objectives: –Profits through customer satisfaction
- 9. Copyright © 2006 Pearson Education Canada Inc. 1-9 Implementing the Marketing Concept Consumer Research Segmentation Targeting Positioning
- 10. Copyright © 2006 Pearson Education Canada Inc. 1-10 Segmentation, Targeting, and Positioning Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics Targeting: selecting one ore more of the segments to pursue Positioning: developing a distinct image for the product in the mind of the consumer
- 11. Copyright © 2006 Pearson Education Canada Inc. 1-11 Successful Positioning Communicating the benefits of the product, rather than its features Communicating a Unique Selling Proposition for the product
- 12. Copyright © 2006 Pearson Education Canada Inc. 1-12 The Marketing Mix Product Price Place Promotion
- 13. Copyright © 2006 Pearson Education Canada Inc. 1-13 The Societal Marketing Concept All companies prosper when society prospers. Companies, as well as individuals, would be better off if social responsibility was an integral component of every marketing decision. Requires all marketers adhere to principles of social responsibility.
- 14. Copyright © 2006 Pearson Education Canada Inc. 1-14 Digital Revolution in the Marketplace Allows customization of products, services, and promotional messages like never before Enhances relationships with customers more effectively and efficiently Has increased the power of customers and given them access to more information
- 15. Copyright © 2006 Pearson Education Canada Inc. 1-15 Digital Revolution in the Marketplace - Continued The exchange between consumers and marketers has become more interactive Many affect the way marketing is done
- 16. Copyright © 2006 Pearson Education Canada Inc. 1-16 Why study consumer behaviour? Understanding consumer behaviour will help you become better marketers as it is the foundation for Segmenting markets Positioning products Developing an appropriate marketing Plan. continued
- 17. Copyright © 2006 Pearson Education Canada Inc. 1-17 Why study consumer behaviour? Knowledge of consumer behaviour is essential for non-profit organizations – Non profits have different customers to please – Donors, users, volunteers, general public, government » continued
- 18. Copyright © 2006 Pearson Education Canada Inc. 1-18 Why study consumer behaviour? Public service initiatives have to be based on an understanding of consumer behaviour federal government also need the knowledge of consumer behaviour. –Most government initiatives (e.g., antismoking campaigns) need a knowledge of consumer behaviour to succeed » continued
- 19. Copyright © 2006 Pearson Education Canada Inc. 1-19 Why study consumer behaviour? Better understanding of our own consumption behaviour
- 20. Copyright © 2006 Pearson Education Canada Inc. 1-20
Editor's Notes
- Low price Cheap
- onsumer decision making involves a continuous flow of interactions between environmental factors and behavioral actions. The process of consumer decision making involves pre-purchase information and post-purchase outcomes. Pre-Purchase Behavior When a consumer realizes the needs, he goes for an information search. He does the same, so that he can make the right decision. He gathers the information about the following − Product Brands Products Variations Product Quality Product Alternatives. The consumer can gather information about a product depending on his age, gender, education and product’s price, risk and acceptance. Types of Search Activities The information search activity can be classified into various types such as the following − Specific Specific kind of activities are directly related to the problem. These kinds of requirements need immediate assistance. Ongoing Consumers go on with their research for a particular period of time if they decide or if they want to buy a particular product. Ongoing activities basically show the work in progress. Incidental Now, anything that we observe incidentally or just accidentally or naturally comes under incidental research. Such information can be observed in our daily routine lives. Following are the information sources available − The information sources are of two types which are listed under Internal Sources − Internal sources includes the consumer himself. Here he himself recalls the information that is stored in his memory and uses his experiences. External Sources − External sources of information include all sorts of interpersonal communication with the external environment such as friends, family, marketing people, through advertisements, etc. Post-Purchase Behavior All the activities and experiences that follow purchase are included in the post purchase behavior. Usually, after making a purchase, consumers experience post-purchase dissonance. They sometimes regret their decisions made. It mainly occurs due to a large number of alternatives available, good performance of alternatives or attractiveness of alternatives, etc. The marketers sometimes need to assure the consumer that the choice made by them is the right one. The seller can mention or even highlight the important features or attributes and benefits of the product to address and solve their concerns if any. A high level of post-purchase dissonance is negatively related to the level of satisfaction which the consumer draws out of product usage. To reduce post-purchase dissonance, consumers may sometimes even return or exchange the product.