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An Introduction toConsumer Behaviour
Chapter 1
Copyright 2008 Pearson Education Canada
Copyright 2008 Pearson Education Canada 1-2
Factors in Consumer Behaviour• The story of Gail in the marketplace…
– Demographics– Psychographics– Opinions and behaviours of others
• Market segmentation– Targeting a brand only to specific groups
of consumers rather than to everybody
Copyright 2008 Pearson Education Canada 1-3
What is Consumer Behaviour?
• The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
Copyright 2008 Pearson Education Canada 1-4
Consumer Behaviour is a “Process”
Figure 1.1 (Abridged)
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?
Copyright 2008 Pearson Education Canada 1-5
Actors in Consumer Behaviour
• Consumer: A person who identifies a need or desire, makes a purchase, and then disposes of the product– Purchaser vs. user vs. influencer– Organization/group as consumer
Copyright 2008 Pearson Education Canada 1-6
Discussion
• People play different roles and their consumption behaviors may differ, depending on the particular role they are playing. State whether you agree or disagree with this perspective, giving examples from your personal life.– Try to construct a “stage set” for a role you play –
specify the props, costumes, and script that you use to play a role (e.g., job interviewee, conscientious student, party animal)
Copyright 2008 Pearson Education Canada 1-7
Consumers’ Impact
• Understanding consumer behaviour is good business– Understanding people/organizations to satisfy
consumers’ needs– Knowledge and data about customers…
• …help to define the market• …identify threats/opportunities to a brand
Copyright 2008 Pearson Education Canada 1-8
Segmenting Consumers
• Market Segmentation– Similar consumers
• Example: “Heavy Users” of fast-food industry or similar ethnic backgrounds
Copyright 2008 Pearson Education Canada 1-9
Segmenting Consumers: Demographics
• Age
• Gender
• Family Structure and Marital Status
• Social Class and Income
• Ethnicity
• Geography
Copyright 2008 Pearson Education Canada 1-10
Discussion
• Name some products or services that are widely used by your social group.– State whether you agree or disagree with the
notion that these products help to form group bonds, supporting your argument with examples from your list of products used by the group.
Copyright 2008 Pearson Education Canada 1-11
Segmenting Consumers: Lifestyles
• Psychographics– The way we feel about ourselves– The things we value– The things we do in our spare time
Copyright 2008 Pearson Education Canada 1-12
Relationship Marketing
• Success = building lifetime relationships between brands and customers– Regular interaction with customers– Database Marketing
Copyright 2008 Pearson Education Canada 1-13
Marketing’s Impact on Consumers
• Marketers significantly influence the world and the information we learn!– Advertisements, stores, and products
communicate and persuade
TOYMUSEUM.COM
Copyright 2008 Pearson Education Canada 1-14
The Meaningof Consumption
• People often buy products not for what they do, but for what they mean– Brands…
• …convey image/personality• …define our place in modern society• …help us to form bonds with others who share
similar preferences
Copyright 2008 Pearson Education Canada 1-15
Brand Relationship Types
• Self-Concept Attachment
• Nostalgic Attachment
• Interdependence
• Love
Copyright 2008 Pearson Education Canada 1-16
The Global Consumer
• Global Consumer Culture– People united by common devotion to:
• Brand name consumer goods• Movie stars• Celebrities• Leisure activities
– Pressure to understand similarities and differences of customers in various countries
Copyright 2008 Pearson Education Canada 1-17
Virtual Consumption
• Impact of the Web on consumer behaviour– 24/7 shopping without leaving home– Instantaneous access to news– Handheld devices and wireless
communications
• C2C e-commerce– Virtual brand communities.– Consumer chat rooms AMAZON.COM
Copyright 2008 Pearson Education Canada 1-18
Virtual Consumption (Cont’d)
• “Wired” Canadians spend…– …less time with friends/family– …less time shopping in stores– …more time working at home after hours
• But, many report that e-mail strengthens family ties
Copyright 2008 Pearson Education Canada 1-19
Marketing and Reality
• “Blurred boundaries” between marketing efforts and “the real world”– Popular culture shaped by marketers
Copyright 2008 Pearson Education Canada 1-20
Marketing Ethics and Public Policy
• Business Ethics: rules of conduct that guide actions in the marketplace– What is “Right vs.
Wrong”• Differs among
people, organizations, and cultures
Copyright 2008 Pearson Education Canada 1-21
Discussion
• Coca-Cola’s 600 ml bottles are sold exclusively in vending machines at educational sites. Each bottle contains more than 15 tsp of sugar.– Knowing that over-consumption of sugar
leads to poorer grades for students, obesity and diabetes, is Coca-Cola acting in the best interest of the child?
Copyright 2008 Pearson Education Canada 1-22
Marketing Ethicsand Public Policy (cont’d)
• Consumers think better of products made by firms they feel behave ethically– Marketing “violators”
• Mislabeling package contents• “Bait-and-switch” selling strategy• Availability of ‘pour-your-own’ in lounges rather
than promoting responsible drinking
www.ama.org
Copyright 2008 Pearson Education Canada 1-23
Manipulating Needs and Wants
• Marketers tell people what they should want– Marketerspace vs. Consumerspace– Response: Marketers recommend ways to
satisfy basic biological needs
Copyright 2008 Pearson Education Canada 1-24
• Marketers foster materialism– Response: Products are designed to meet existing
needs• Economics of Information Perspective
• Discussion: do marketers have the ability to control our desires or the power to create needs?– Is this situation changing as the Internet creates new
ways to interact with companies? If so, how?
Are Advertising andMarketing Necessary?
Copyright 2008 Pearson Education Canada 1-25
Do Marketers Promise Miracles?
• Advertising promises “magical” products– Response: Advertisers simply do not know
enough about people to manipulate them• Failure rate for new products = 40% to 80%
Copyright 2008 Pearson Education Canada 1-26
Public Policy and Consumerism
• Consumer welfare is protected at the Federal, Provincial and Municipal levels
• Main area of focus:– Protection from unfair business practices– Protect broad interest of society
• Consumers depend on their government to regulate and police standards
• Supervision may depend on political climate in a country
Copyright 2008 Pearson Education Canada 1-27
Consumer Activism
• Adbusters– Non-Profit advocates “for the new social
activist movement of the information age”– Buy Nothing Day and TV Turnoff Week
• Culture Jamming– Aims to disrupt corporate efforts to dominate
our cultural landscape
Copyright 2008 Pearson Education Canada 1-28
What is Social Marketing?
• Focus that uses marketing techniques to encourage positive behaviours (increase literacy) and discourages negative activities (drunk driving).– United Way Campaigns
Copyright 2008 Pearson Education Canada 1-29
The Consumer “Dark Side”
Addictive Consumption
• Compulsive Consumption
• Consumed Consumers
• Illegal Activities– Theft– Anti-consumption
Copyright 2008 Pearson Education Canada 1-30
Study of Consumer Behaviour
• Interdisciplinary Influences– Many different perspectives/fields
• Consumer Behaviour Employers– Universities, manufacturers, museums,
advertising agencies, and governments
Copyright 2008 Pearson Education Canada 1-31
Macro (Social Focus)
Pyramid of Consumer Behaviour
Experimental PsychologyClinical Psychology
Developmental PsychologyHuman EcologyMicroeconomics
Social PsychologySociology
MacroeconomicsSemiotics/Literary Criticism
DemographyHistory
Cultural Anthropology
Micro (Individual-Focus)Figure 1-2
Copyright 2008 Pearson Education Canada 1-32
Strategic Focus
• The field of consumer behaviour…– …as an applied social science– …to understand consumption for its own sake
Copyright 2008 Pearson Education Canada 1-33
Perspectives on Consumer Research
• Positivism– Stress the function of objects/products– Celebrate technology, science– World as an objective, rational, ordered place
• Interpretivism– Stress importance of sympolism– We each construct our own meanings– Consumption of products = diverse experiences
Copyright 2008 Pearson Education Canada 1-34
Wheel of Consumer Behaviour
Figure 1-3
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