Defining Consumer Behavior

1. DEFINING
CONSUMER BEHAVIOR
Prof. SAVICA

2. WHY STUDYING
CONSUMER BEHAVIOR?
psychological elements
internal motives
individuality
environment
invisible motives
Buying

3. DEFINITIONS OF
CONSUMER BEHAVIOR
--- set of activities
that people
undertake in the
selection,
purchase, use and
disposal of
products and
services to meet
their needs and
wants
----is a science of
internal and
external factors
that affect
consumers in their
decision making
process

4. DEFINITIONS OF
CONSUMER BEHAVIOR
--- focuses on how
consumers make
decisions to spend
resources
(time, money, effort)
for purchasing
certain products and
services.
----is the process of
research as
how, why, when,
where, how often
consumers buy and
consume.

5. ELEMENTS OF DEFINITION
OF CONSUMER BEHAVIOR
Actions that people take when they buy, consume,
dispose products and services!
BUYING = request information, evaluation of
alternatives, how consumers buy, when
and how they pay?!
CONSUMPTION = how, when, where the products are
consumed or used. Are they used at
once, part by part, at home, in the
office, instructions for use!
DISPOSAL = environmental aspect, littering, recycling,
decomposition, reuse, rent!

6. CONSUMER BEHAVIOR HAS THE
ANSWERS FOR:
as a process
how
why
what
when
where
how much

7. DEFINITION OF
CONSUMER BEHAVIOR
Feeling after the usage of
products!
---is a process of satisfying
consumer needs and
answering the questions:
why they buy, what they
buy, when they buy, where
they buy, how much and
how often they buy and how
they feel after the
consumption of goods.
This is the key for providing of
efficient marketing strategy.

8. CONSUMER BEHAVIOR
Decision on: Activity: Object: From: Period:
What
Why
How
Where
When
How much
How often
How long
Buying
Consumption
Disposal
Goods
Services
Activities
Experience
Ideas
People
Buyer
Consumer
End user
Hours
Days
Weeks
Months
Years
Marketing strategies and tactics

9. CONSUMER BEHAVIOR COMES FROM
THE MARKETING CONCEPT
Production concept
Product concept
Sales concept
Marketing concept
Social marketing concept

10. CONSUMER BEHAVIOR COMES FROM
THE MARKETING CONCEPT
Production concept
consumers available products and low prices
companies high production, low costs, mass distribution

11. CONSUMER BEHAVIOR COMES FROM
THE MARKETING CONCEPT
Product concept
consumers high-quality, better features of products
companies superior products, innovations
Marketing myopia=
focusing more on a
product than consumer
needs!

12. CONSUMER BEHAVIOR COMES FROM
THE MARKETING CONCEPT
Sales concept
consumers lots of products available
companies aggressive sales, needs are not important

13. CONSUMER BEHAVIOR COMES FROM
THE MARKETING CONCEPT
Marketing concept
consumers consumer needs and wants are important
companies targeting, consumer satisfaction, integrated
marketing
Appearance
of consumer
behavior

14. CONSUMER BEHAVIOR COMES FROM
THE MARKETING CONCEPT
Social marketing concept
consumers consumer needs and wants are important
companies consumer satisfaction, environment
protection, profit

15. CONSUMER BEHAVIOR AS A SCIENCE
Late 1950-es and the beginning of 1960-es
marketing + psychology + sociology
Association for Consumer Research, 1969

16. CONSUMER BEHAVIOR AS A SCIENCE
Reasons
The consumer is King!
The consumer can dismiss all the employees!
Consumer behavior educates and protects
consumers!
Creates public policy!
Creates personal policy!
The consumer is not behaving rational!

17. CONSUMER BEHAVIOR AS A SCIENCE
Process
Starts before the act of buying
Lasts during the act of buying
Lasts when deciding where to buy
Lasts when deciding how much to buy
Lasts when deciding how will be paid
Ends after the process of buying

18. INTERDISCIPLINARY OF
CONSUMER BEHAVIOR
Using the knowledge, concepts, results of other disciplines for
understanding the internal and external factors that influence
consumer behavior
А. Psychology
• Mental processes
• Motivation
• Perceptions
• Attitudes
• Process of learning
• Memory
• Data processing

19. INTERDISCIPLINARY OF
CONSUMER BEHAVIOR
Using the knowledge, concepts, results of other disciplines for
understanding the internal and external factors that influence
consumer behavior
Б. Sociology
• Group behavior
• Behavior in a group
• Family
• Social class
• Reference group

20. INTERDISCIPLINARY OF
CONSUMER BEHAVIOR
Using the knowledge, concepts, results of other disciplines for
understanding the internal and external factors that influence
consumer behavior
В. Social Psychology
• sociology + psychology
• person-group-person
• Group over individual

21. INTERDISCIPLINARY OF
CONSUMER BEHAVIOR
Using the knowledge, concepts, results of other disciplines for
understanding the internal and external factors that influence
consumer behavior
Г. Social biology
• Genetics
• Coded DNA molecule

22. INTERDISCIPLINARY OF
CONSUMER BEHAVIOR
Using the knowledge, concepts, results of other disciplines for
understanding the internal and external factors that influence
consumer behavior
Д. Cultural anthropology
• Behavior in society
• Impact of culture
• Beliefs
• Values
• Tradition
• Folklore

23. INTERDISCIPLINARY OF
CONSUMER BEHAVIOR
Using the knowledge, concepts, results of other disciplines for
understanding the internal and external factors that influence
consumer behavior
Ѓ. Economics
• Marketing
• Market Research
• Advertising
• Spending money
• Needs satisfaction

24. WHO IS A CUSTOMER?
The consumer is the one who decides and chooses!
Individual / household legal entities

25. CONSUMER, BUYER, USER
consumer buyer
user

26. TYPES OF CUSTOMERS
children
adults
teenagers
According to age:
old customers
Little, tiny, colorful products
New, fashionable products /
price and quality unimportant
Price, quality, availability
medical services, confidence

27. TYPES OF CUSTOMERS
men
women
According to sex:
• Technical goods
• Quick decisions
• Require help in deciding on gifts
• Outnumber men
• Quality and price have a priority
• Fashion, new products
• Attention to discounts, gifts,
promotions
• Hesitating a lot

28. TYPES OF CUSTOMERS
determined
silent
patient
According to character
qualified
undecided
nervous
talkative
unqualified

29. TYPES OF CUSTOMERS
choleric
melancholic
sanguine
According to temper
phlegmatic
active, optimistic, aggressive
moody, sociable, talkative
slow, sad, anxious, rigid
even-tempered, calm, reliable

30. TYPES OF CUSTOMERS
According to temper

31. TYPES OF CUSTOMERS
visual
audio-visual
audio
According to usage of senses
mixed
Examine products, design, style,
color, ornaments
Look for information, advice
combination of the previous two
Using all the senses, touch, taste,
smell….

32. TYPES OF CUSTOMERS
innovators
early majority
early entrants
According to readiness to try a new product
late majority
adventurers, new ideas
carefully adopt new products
careful, but accept new ideas
skeptical
ignorant
traditional

33. MINI TEST
Explain the following terms:
• Consumer behavior: --------------------
• Disposal: ------------------------------------------
• Main elements of definition for consumer behavior:-------
• Product concept:------------------------------
• Creating public policy means:------------------------------------
• Social psychology:----------------
• End user:---------------------------
• Consumer:-------------------------------------------
• Melancholic type:-----------------------------------
• Sanguine type:----------------------------------------