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Introduction to Consumer
Behavior
What is Consumer Behaviour?
• CB refers to the behaviour that consumer display in searching for
purchasing, using, evaluating and disposing of products and
service that they expect will satisfy their needs.
• The study of consumer behaviour is the study of how individuals
made decisions to spend their available resources on consumption
related items
• Consumer behaviour consists of the actions a person takes in
purchasing and using products and services, including the mental
and social processes that come before and after these actions.
Alternative Definitions
• The decision process and physical activities individuals engage in when
evaluating, acquiring, using, or disposing of goods and services.
Loudon & Bitta (1993)
• The dynamic interaction of affect and cognition, behavior, and
environmental events by which human beings conduct the exchange
aspect of their lives.
Peter (1996)
• CB is the study of individuals, groups or organizations and processes
they use to select, secure, use and dispose of products, services,
experiences or ideas to satisfy needs and impacts that these processes
have on the consumer and the society
Hawkings (2005)
Consumer Behavior as a Process
CONSUMER’S
PERSPECTIVE
MARKETER’S
PERSPECTIVE
PREPURCHASE ISSUES How does a consumer
decide about needing a
product?
How are consumer attitudes
formed/changed?
PURCHASE ISSUES Is product acquisition a
stressful or pleasant
experience?
How do situational factors
affect purchase decision?
POSTPURCHASE
ISSUES
Does product provide
pleasure or perform
function? How is product
disposed of?
What determines customer
satisfaction and repurchase?
Consumer roles: Buyers, payers and users
The marketplace activities of individuals entail three functions:
1. the consumer (user) - who consumes or uses the product
2. the buyer - who undertakes activities to procure or obtain the
product
3. the payer - who provides the money (or other value) to obtain
the product.
WHY Study Buyer Behavior ?
HOW do marketers know
 Which people to target
 Where to reach them
 What messages to communicate
 What media to use
 What distribution method is best
 Differences between groups
 How to keep customers ?????
Major type of consumers
• Personal consumers
– Purchase products his or her own use
– End user
• Organizational Consumer
– Business organization
– Nonprofit Business organization
– Gvt Agencies
– Institutional buyers
Focus of the Subject
Personal
Consumers
Why Marketers Study Consumer
Behavior
To better understand:
• changing product life cycles
• changing environmental views and concerns
• changing consumer protection and public policy
• the growing role of services marketing
• the growing role of not-for-profit and social marketing
• the growing role of global marketing
• changing technology
• the impact of constant change
Development of the Marketing Philosophies
and Recognition of CB as a Discipline
Production
concept
Product
concept
Selling
concept
Marketing
concept
Societal
marketing
concept
Discussion
How its applies to consumer behavior?

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1. Introduction.pptx

  • 2. What is Consumer Behaviour? • CB refers to the behaviour that consumer display in searching for purchasing, using, evaluating and disposing of products and service that they expect will satisfy their needs. • The study of consumer behaviour is the study of how individuals made decisions to spend their available resources on consumption related items • Consumer behaviour consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
  • 3. Alternative Definitions • The decision process and physical activities individuals engage in when evaluating, acquiring, using, or disposing of goods and services. Loudon & Bitta (1993) • The dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspect of their lives. Peter (1996) • CB is the study of individuals, groups or organizations and processes they use to select, secure, use and dispose of products, services, experiences or ideas to satisfy needs and impacts that these processes have on the consumer and the society Hawkings (2005)
  • 4. Consumer Behavior as a Process CONSUMER’S PERSPECTIVE MARKETER’S PERSPECTIVE PREPURCHASE ISSUES How does a consumer decide about needing a product? How are consumer attitudes formed/changed? PURCHASE ISSUES Is product acquisition a stressful or pleasant experience? How do situational factors affect purchase decision? POSTPURCHASE ISSUES Does product provide pleasure or perform function? How is product disposed of? What determines customer satisfaction and repurchase?
  • 5. Consumer roles: Buyers, payers and users The marketplace activities of individuals entail three functions: 1. the consumer (user) - who consumes or uses the product 2. the buyer - who undertakes activities to procure or obtain the product 3. the payer - who provides the money (or other value) to obtain the product.
  • 6. WHY Study Buyer Behavior ? HOW do marketers know  Which people to target  Where to reach them  What messages to communicate  What media to use  What distribution method is best  Differences between groups  How to keep customers ?????
  • 7. Major type of consumers • Personal consumers – Purchase products his or her own use – End user • Organizational Consumer – Business organization – Nonprofit Business organization – Gvt Agencies – Institutional buyers
  • 8. Focus of the Subject Personal Consumers
  • 9. Why Marketers Study Consumer Behavior To better understand: • changing product life cycles • changing environmental views and concerns • changing consumer protection and public policy • the growing role of services marketing • the growing role of not-for-profit and social marketing • the growing role of global marketing • changing technology • the impact of constant change
  • 10. Development of the Marketing Philosophies and Recognition of CB as a Discipline Production concept Product concept Selling concept Marketing concept Societal marketing concept
  • 11. Discussion How its applies to consumer behavior?